District of Minnesota

United States Attorney Andrew M. Luger announced on Wednesday the sentence of ALBERT TERRELL ELLIS, 38, a/k/a, “Alvin Ellis,” to 262 months in prison for possession of a firearm, possession with intent to distribute heroin and use of a firearm during and in relation to a drug trafficking crime. The Defendant was sentenced on June 4, 2015 before U.S. District Court Judge Ann Montgomery.

As proven at trial and according to documents filed in court, on October 10, 2012, ELLIS and his girlfriend, A.G., got into a fight with A.G.’s roommate, J.C. The Duluth Police Department responded to a 911 call from J.C.’s mother informing the police department that her daughter felt she was in danger. During a subsequent search of the apartment and ELLIS’s car, police dogs discovered heroin and crack. ELLIS had hidden the drugs, packaged for distribution, in the gas cap of his car. He also hid a loaded Smith and Wesson .45 Caliber pistol in the engine block of his vehicle. ELLIS was later arrested with more than $6,000 in illegal drug proceeds.

According to documents filed in court, ELLIS is a career criminal with a violent history. He was first convicted of battery when he was 14-years-old. His criminal history includes two convictions for drug trafficking, and convictions for attempted murder and attempted armed robbery, each of which is a felony. When ELLIS was let out of prison for attempted armed robbery in 2009, he was arrested four times between then and 2012. Three times for battery and once for theft.

“This defendant is an armed career criminal and a career offender with a violent criminal history,” said Assistant United States Attorney Tom Calhoun-Lopez. “This sentence will ensure that society is protected from his further crimes.”

This case was prosecuted by Assistant United States Attorney Tom Calhoun-Lopez.

 

Defendant information:

ALBERT TERRELL ELLIS, 38

Duluth, Minn.

Convicted:

• Possession of a firearm as an armed career criminal, 1 count
• Possession with intent to distribute heroin, 1 count
• Use of a firearm during and in relation to a drug trafficking crime, 1 count

Sentenced:

• 262 months in prison

 

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

 

United States Attorney Andrew M. Luger today announced the sentencing of ROGER HERMAN GOETZ, JR., 59, to 54 months in federal prison for defrauding his clients of nearly $1.6 million. GOETZ, JR., who pleaded guilty on January 20, 2015, to two counts of wire fraud, was sentenced today in U.S. District Court in St. Paul, Minn., by U.S. District Judge Richard H. Kyle.

“This defendant used his position as a certified public accountant to exploit his most vulnerable clients,” said U.S. Attorney Luger. “Minnesotans trust financial professionals to protect us from unexpected loss. Roger Goetz, Jr., abused that trust for his own financial gain.”

According to his guilty plea and documents filed in court, GOETZ has been a certified public accountant since 1980. He was previously licensed in the State of Minnesota. From at least December 2009 until at least February 2013, the defendant repeatedly lied to his tax preparation clients to steal their money.

According to his guilty plea and documents filed in court, in 2009, GOETZ was hired to file estate taxes for R.W.’s deceased parents. R.W. wired $115,000 to the defendant to pay the estimated state tax.  GOETZ instead stole the money, a fact that R.W. didn’t discover for two years. When confronted by R.W., GOETZ provided him with fraudulent documents in an attempt to cover up the fact that GOETZ failed to pay the taxes on behalf of R.W. The victim ultimately was forced to use his daughter’s college fund to pay the outstanding taxes and penalties.

According to his guilty plea and documents filed in court, in January 2012, about one month after R.W. confronted GOETZ about the unpaid taxes, GOETZ stole another $170,000 from a different tax preparation client. T.B. hired GOETZ to prepare estate tax returns for his deceased parents and GOETZ again stole the funds. When T.B. confronted GOETZ about one-year later, GOETZ gave T.B. a check to cover the penalties, but the check bounced.

According to his guilty plea and documents filed in court, GOETZ repeatedly used stolen money from his clients for his own business, Core Wafer Systems (CWS). In addition to the money from R.W. and T.B., Goetz lied to at least nine investors about purported investments in CWS and in an assisted living facility in New Ulm, Minn. Instead of using their purported investments for CWS or the assisted living facility, GOETZ transferred money to accounts not connected either purported investment and used it for unrelated purposes, such as paying overdue bills.

This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Waseca Police Department.

Assistant U.S. Attorney Kimberly A. Svendsen prosecuted the case.

 

Defendant Information:

ROGER HERMAN GOETZ, JR., 59
Waseca, Minn.

Convicted:

• Wire Fraud, 2 counts

Sentenced:

• 54 months in prison
• Three years supervised release
• $1,599,857.77 in restitution

 

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

 

United States Attorney Andrew M. Luger today announced the indictment of forty-one members of a multi-state heroin trafficking conspiracy. The 41 defendants named in the indictment were charged with Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone. Several defendants were charged with additional crimes related to the drug trafficking scheme, including firearms offenses. The defendants are making initial appearances this week before Magistrate Judge Tony Leung in U.S. District Court in St. Paul, Minn.

"The indictment of the Beasley drug trafficking organization is emblematic of our commitment to combatting heroin trafficking in Minnesota," said U.S. Attorney Andrew Luger. "These defendants, led by Omar Beasley, represented the most significant source of heroin in Indian Country. Through close collaboration with our federal, local, and Tribal law enforcement partners, we have shut down this major pipeline that was spreading heroin across the Red Lake and White Earth Indian Reservations and the surrounding communities."

"The Omar Beasley heroin and prescription drug trafficking organization cared nothing about the collateral damage it inflicted upon neighborhoods, families, and especially young children on tribal lands in Minnesota and elsewhere in the Midwest," stated DEA Minneapolis-St Paul Assistant Special Agent in Charge Dan Moren. "Beasley and the 40 other members of his organization believed that federal, state, local and tribal law enforcement agencies throughout the region were not speaking with one another and connecting the dots…they were wrong."

Red Lake Police Department’s Public Safety Director William Brunelle said: "We have sent a clear message to drug trafficking organizations that drug dealing will not be tolerated on or near Tribal reservations. I have a great appreciation and the utmost respect for all law enforcement agencies participating in this drug investigation. This is a perfect example of how multiple law enforcement agencies can successfully collaborate against one common enemy that is devastating both Indian and Non-Indian communities alike. Drug dealers have no borders to follow and law enforcement has proven that they will cross all borders to get the job done as well."

White Earth Police Department’s Public Safety Director Randy Goodwin said: "We are proud of the hard work and dedication that resulted in the arrests of a criminal organization that prospered from poisoning many people on the White Earth Nation. Many lives, families and communities have been damaged or destroyed from this poison. Now, the hard work of healing and wellness begins!"

"I am very proud of the fantastic job that ATF, DEA, BCA, the Paul Bunyan Task Force and other law enforcement agencies did working collaboratively with the common goal of dismantling the Beasley drug trafficking organization," stated ATF St. Paul Field Division Special Agent in Charge James C. Modzelewski. "I am confident that this investigation has significantly impacted the flow of illegal narcotics and violations of federal firearms laws in a multi-state area."

Special Agent in Charge of the Federal Bureau of Investigation Minneapolis Division Richard Thornton said: "The FBI is proud to stand shoulder to shoulder with its law enforcement partners when it comes to fighting the scourge of drugs and drug dealing on reservations. Those who would engage in drug dealing should note that law enforcement will always be seeking to uncover their activities."

Minnesota Bureau of Criminal Apprehension Superintendent Wade Setter said: "This case came together because of the criminal justice partnerships that are critical when investigating multi- jurisdictional crimes of this nature. This effort will continue as long as criminals endeavor to funnel this deadly drug to the people of our state."

According to the indictment and documents filed in court, from at least April 2014 until April 2015, OMAR SHARIF BEASLEY, 37, led a drug trafficking conspiracy in which he recruited drug sources, managers, distributors, facilitators, couriers and drivers to bring heroin and other drugs to the Red Lake and White Earth Indian Reservations in Minnesota and Native American communities in North Dakota.

According to the indictment and documents filed in court, WILLIAM DAVID ALONZO, 23, CALVIN BEASLEY, 58, WILLIE BELLAMY, JR., 67, ERNESTINE DUKES, 45, MICHAEL LENIOR DUKES, 47, BRENDA ANN FAGAN, 67, VELVET ILENE JOHNSON, 44, YVETTE KOUAYARA, 53, BURNEY ABDULAH PEOPLES, 27, DOERON EARL RAYFORD, 41, LAMARCUS ANTONIO BROCK, 37, STEPHEN MARTIN HOLLIS, 37, MICHAEL TRAVELL COLLINS, 38, YALONZO RAMON HULL, 50, STACEY RAE DUCHAINE, 24, SARAH ELIZABETH THOMPSON, 30, and JODI LYNN KJOLBERG, 44, served as the out-of-state branches of the drug trafficking organization. These defendants acted as facilitators, suppliers, transporters, or distributors from Detroit, Mich., Chicago, Ill., Minneapolis, Minn., Milwaukee, Wis., and North Dakota.

According to the indictment and documents filed in court, TRAVIS JAMES BAKER, 25, ROSE LYNN BARRETT, 27, SONNIE MARIE BARRETT, 26, TIMOTHY JOSEPH BEAULIEU, JR., 33, MICHAEL JOSEPH DOMINGUEZ, 29, APRIL MARIE GRAVES, 31, JARVIS ALLEN KING, 23, CHRISTOPHER ERVING PEOPLES, 33, RAVONNA RAYE PEOPLES, 44, SHERRLENE ROSE ROBERTS, 67, DALE ANDREW SIGANA, 32, and ROBYN JOANNE WIPF, 33, served as the Red Lake branch of the drug trafficking organization. These defendants distributed drugs on the Red Lake Indian Reservation on behalf of the conspiracy. They also maintained drug stash houses on the reservation and gave the proceeds of drug sales to co-conspirators.

Several co-conspirators, identified in the indictment as WILLIAM JAMES FASTHORSE, 25, DURIAL JOHN JACKSON, 29, JUSTIN LEE JOHNSON, 24, GENE MICHAEL KEEZER, 37, NAKOYA HARRIS KEEZER, 37, RODNEY LEE KEEZER, 36, JENNIFER LYNN OPPEGARD, 27, JESSICA RAE OPPEGARD, 36, LEE ALLEN OPPEGARD, 39, LUCAS JOHN PETERSON, 26, and MAISIE ANN SARGENT, 25, served as the White Earth branch of the drug trafficking organization. These defendants facilitated, managed, transported and distributed drugs on the White Earth Indian Reservation on behalf of the conspiracy. They also received and transferred funds, as well as maintained drug stash houses on the White Earth Indian Reservation.

According to the indictment and documents filed in court, between April 2014 and April 2015, the defendants conspired with each other to distribute multiple kilograms of heroin, as well as methamphetamine, oxycodone, hydromorphone, hydrocodone, and methadone to the communities in and surrounding the Red Lake and White Earth Indian Reservations. As part of the drug trafficking conspiracy, BEASLEY traveled from Minneapolis, Minn. to Red Lake, Minn., White Earth, Minn., and to North Dakota to provide drugs to co-conspirators for distribution on the Indian Reservations. BEASLEY would then return to major cities in Minnesota, Wisconsin, Illinois, and Michigan to replenish the supply of drugs to bring into Indian Country.

Count One of the indictment alleges multiple overt acts committed by 13 of the defendants in furtherance of the conspiracy. The acts include:

* On October 3, 2014, OMAR BEASLEY, SONNIE BARRETT, and MICHAEL DUKES possessed with intent to distribute approximately 1300 grams of heroin.

* On November 6, 2014, OMAR BEASLEY, CALVIN BEASLEY, BRENDA FAGAN, YALONZO HULL, and YVETTE KOUAYARA possessed with intent to distribute hydrocodone, hydromorphone, and oxycodone.

* On December 2, 2014, OMAR BEASLEY, JODI KJOLBERG, and ROBYN WIPF possessed with intent to distribute approximately 48 grams of heroin.

* On December 9 and 10, 2014, LEE OPPEGARD distributed approximately 7 grams of heroin.

* On December 14, 2014, OMAR BEASLEY distributed approximately 13 grams of heroin.

* On December 16, 2014, OMAR BEASLEY distributed approximately 15 grams of methamphetamine.

* On March 10, 2015, WILLIAM ALONZO and TIMOTHY BEAULIEU, JR., possessed with intent to distribute approximately 200 grams of heroin as well as hydrocodone, methadone, and oxycodone.

* On April 14, 2015, OMAR BEASLEY possessed with intent to distribute approximately 300 grams of heroin.

* On April 15, 2015, STEPHEN HOLLIS possessed with intent to distribute approximately 200 grams of heroin.

This case is the result of a cooperative investigation conducted by the Red Lake Police Department, the White Earth Police Department, the Paul Bunyan Drug Task Force, the FBI Safe Trails Task Force, the West Central Minnesota Drug and Violent Crimes Task Force, the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, and the Minnesota Bureau of Criminal Apprehension, assisted by the following law enforcement agencies and task forces, Becker County Sheriff’s Office, Beltrami County Sheriff’s Office, Bemidji Police Department, Bloomington Police Department, Bureau of Indian Affairs, Clearwater County Sheriff’s Office, Customs and Border Protection, Detroit Lakes Police Department, Frazee Police Department, Hubbard County Sheriff’s Office, Mahnomen County Sheriff’s Office, Minnesota Department of Correction, Minnesota State Highway Patrol, Lakes to River Drug Task Force, North Dakota Bureau of Criminal Investigation, Pine to Prairie Drug Task Force, and Wisconsin Department of Criminal Investigation.

This case is being prosecuted by Assistant U.S. Attorneys Deidre Y. Aanstad and Melinda A. Williams.

 

Defendant Information:

 

OMAR SHARIF BEASLEY, 37

Anoka County Jail

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

• Possession with Intent to Distribute Heroin, 3 counts

• Distribution of Heroin, 1 count

• Distribution of Methamphetamine, 1 count

 

WILLIAM DAVID ALONZO, 23

Detroit, Mich.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

• Possession with Intent to Distribute Heroin, 1 count

• Possession with Intent to Distribute Hydrocodone, Methadone, and Oxycodone 1 count

• Possession of a Firearm During and in Relation to a Drug Trafficking Crime, 1 count

 

TRAVIS JAMES BAKER, 25

Bemidji, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

• False Statements During the Purchase of a Firearm, 1 count

 

ROSE LYNN BARRETT, 27

Red Lake, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

SONNIE MARIE BARRETT, 26

Red Lake, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

• Possession with Intent to Distribute Heroin, 1 count

 

CALVIN BEASLEY, 58

Detroit, Mich.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

TIMOTHY JOSEPH BEAULIEU, JR., 33

Red Lake, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

• Possession with Intent to Distribute Heroin, 1 count

• Possession with Intent to Distribute Hydrocodone, Methadone, and Oxycodone 1 count

• Possession of a Firearm During and in Relation to a Drug Trafficking Crime, 1 count

 

WILLIE BELLAMY, JR., 67

Detroit, Mich.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

LAMARCUS ANTONIO BROCK, 37

Chicago, Ill.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

MICHAEL TRAVELL COLLINS, 38

Unknown

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

MICHAEL JOSEPH DOMINGUEZ, 29

Red Lake, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

STACEY RAE DUCHAINE, 24

Unknown

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

ERNESTINE DUKES, 45

Detroit, Mich.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

MICHAEL LENIOR DUKES, 47

Detroit, Mich.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

• Possession with Intent to Distribute Heroin, 1 count

 

BRENDA ANN FAGAN, 67

Detroit, Mich.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

WILLIAM JAMES FASTHORSE, 25

White Earth, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

APRIL MARIE GRAVES, 31

Red Lake, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

STEPHEN MARTIN HOLLIS, 37

Brooklyn Park, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

• Possession with Intent to Distribute Heroin, 1 count

 

YALONZO RAMON HULL, 50

Milwaukee, Wis.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

　

DURIAL JOHN JACKSON, 29

Unknown

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

JUSTIN LEE JOHNSON, 24

Mahnomen, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

VELVET ILENE JOHNSON, 44

Farmington Hills, Mich.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

GENE MICHAEL KEEZER, 37

Waubun, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

NAKOYA HARRIS KEEZER, 37

Ogema, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

RODNEY LEE KEEZER, 36

Frazee, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

JARVIS ALLEN KING, 23

Red Lake, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

JODI LYNN KJOLBERG, 44

Duluth, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

• Possession with Intent to Distribute Heroin, 1 count

 

YVETTE KOUAYARA, 53

Detroit, Mich.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

JENNIFER LYNN OPPEGARD, 27

Naytahwaush, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

JESSICA RAE OPPEGARD, 36

Naytahwaush, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

LEE ALLEN OPPEGARD, 39

Mahnomen, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

• Distribution of Heroin, 1 count

 

BURNEY ABDULAH PEOPLES, 27

Clinton Township, Mich.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

CHRISTOPHER ERVING PEOPLES, 33

St. Paul, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

RAVONNA RAYE PEOPLES, 44

Minneapolis, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

LUCAS JOHN PETERSON, 26

White Earth, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

DOERON EARL RAYFORD, 41

Chicago, Ill.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

SHERRLENE ROSE ROBERTS, 67

Red Lake, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

MAISIE ANN SARGENT, 25

Mahnomen, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

DALE ANDREW SIGANA, 32

Red Lake, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

SARAH ELIZABETH THOMPSON, 30

Unknown

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

 

ROBYN JOANNE WIPF, 33

Red Lake, Minn.

Charges:

• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count

• Possession with Intent to Distribute Heroin, 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 allegations, and the defendants are presumed innocent unless and until proven guilty.

 

United States Attorney Andrew M. Luger today announced the guilty plea of ROBERT JAMES SCHUELLER, 29, who devised a plot to harm his former paramour’s fiancé. SCHUELLER was charged by Information on May 26, 2015, and pleaded guilty yesterday before U.S. District Judge Richard H. Kyle in United States District Court in St. Paul, Minn.

Assistant U.S. Attorney Julie Allyn said: "The defendant spent months trying to seriously harm an unsuspecting victim simply because that man was romantic competition in the defendant’s thwarted love affair. The Government is thankful that the defendant finally accepted responsibility for his bizarre scheme and pled guilty."

According to the defendant’s guilty plea and documents filed in court, SCHUELLER, then vice- president of Nomad Pipeline (Nomad) and married to then president M.S., had an extra-marital affair with an employee of Nomad’s sister company. Approximately three months after R.T. ended the relationship with SCHUELLER, SCHUELLER learned that R.T. was in a relationship with C.A. Therefore, SCHUELLER began attempting to win back R.T.’s affections. When the defendant was unable to win back R.T., he began pursuing various schemes to get C.A. out of the picture and away from R.T.

According to the defendant’s guilty plea and documents filed in court, on February 6, 2014, SCHUELLER called W.E., another Nomad employee, and asked if W.E. stayed in contact with any of his prison contacts because SCHUELLER had a guy that needed to "go away." Over the course of several months, SCHUELLER and W.E. communicated back and forth concerning the defendant’s desire to find someone willing to harm C.A. Once W.E. provided SCHUELLER a specific name as a possible person who could injure C.A., SCHUELLER sent W.E. a package containing $10,000 in cash and a business card, on which C.A.’s name was written. On May 2, 2014, W.E. informed SCHUELLER that he was unable to find someone to carry out the plot to injure C.A. and then returned the $10,000 to SCHUELLER. After this conversation, SCHUELLER texted W.E. and instructed him to burn the business card.

According to the defendant’s guilty plea and documents filed in court, SCHUELLER admitted to attempting to contact several other Nomad employees seeking their assistance in causing bodily injury to C.A. SCHUELLER further admitted to plotting various seduction schemes in an attempt to break-up C.A. and R.T. For example, in January 2014, SCHUELLER paid his sister- in-law $500 to seduce C.A.; and in May 2014, SCHUELLER posted a Craigslist ad titled "Girls– 1 time $5,000 cash offer" that sought a "pretty girl" to "break up a couple by any means necessary" and offered payment for such services.

This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Stearns County Sheriff’s Office.

This case is being prosecuted by Assistant United States Attorneys Julie E. Allyn and Steven L. Schleicher in the U.S. Attorney’s Office newly formed Special Prosecutions Section.

 

Defendant Information:

ROBERT JAMES SCHUELLER, 29

Farming Township, Minn.

 

Convicted:

• Threats Transmitted by Interstate Communication, 1 count

 

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

United States Attorney Andrew M. Luger announced the sentencing of TYRONE HERMAN, 56, to 10 years in federal prison for defrauding investors of more than $19 million. HERMAN, who pleaded guilty on October 20, 2014, to one count of wire fraud, was sentenced on May 26, 2015, by Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minn.

"Investment fraud wreaks havoc on real people whose lives and futures are devastated by unscrupulous criminals like Tyrone Herman," said U.S. Attorney Luger. "Working closely with our colleagues from the Minnesota Department of Commerce and the Federal Bureau of Investigation, we are protecting more people than ever before, making it clear to those who would engage in investment fraud that there are significant penalties for such crimes."

Minnesota Department of Commerce Commissioner Mike Rothman said: "We will continue to fight investment fraud and criminal Ponzi schemes. This case highlights the important role of the Commerce Fraud Bureau in protecting Minnesotans against financial crimes. After a concerned citizen gave a tip to our securities investigators, agents from our Fraud Bureau and the FBI collaborated to investigate and stop this fraud scheme that victimized dozens of individuals, many of them seniors."

According to his guilty plea and documents filed in court, HERMAN, from 1998 through December 2013, operated Executive Marketing Group (EMG) and Ty Herman & Associates, which he claimed had business relationships with manufacturers and wholesalers from whom he could purchase small appliances and other inventory at below-retail market rates. HERMAN told the victims that he could re-sell the inventory in which they invested for a profit of 35 percent, and that victims would receive their money back, with a 30 percent rate of return, within 90 days of the sale of inventory.

According to his guilty plea and documents filed in court, HERMAN created false invoices to demonstrate to victims that had sold the inventory. When they demanded return of their investments, HERMAN provided fake bank statements, purporting to show that, while he had the money in his bank account, the Internal Revenue Service had frozen the account so that he could not access the victims’ money. HERMAN repaid some investors with Ponzi-type payments, not from the sale of inventory.

According to HERMAN’S guilty plea and documents filed in court, he stole more than $19 million from 51 separate victims.

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

Assistant U.S. Attorney Karen Schommer prosecuted the case.

 

Defendant Information:

TYRONE R. HERMAN, 56

St. Anthony, Minn.

 

Charges:

• Wire Fraud, 1 count

 

Sentenced:

• 120 months in prison

• Three years supervised release

 

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

United States Attorney Andrew M. Luger today announced the sentencing of MICHAEL ANDREW SCHLEGEL, 56, to 60 months in prison for conspiracy to defraud the United States, tax evasion, and failure to file tax returns. SCHLEGEL, who was convicted on March 13, 2014 following a seven-day trial, was sentenced on May 19, 2015 before Judge Patrick J. Schiltz in United States District Court in Minneapolis, Minn.

According to the evidence presented at trial and documents filed in court, from 2002 to 2009, SCHLEGEL controlled NatureRich, Inc., a multi-level marketing company that sold natural and health-related products. Like similar companies, NatureRich paid commissions to salespeople based on direct sales and on the sales of downstream salespeople. At various times between 2002 and 2009, SCHLEGEL and co-defendant Bradley Mark Collin received wages and commission payments from NatureRich that totaled more than $400,000. SCHLEGEL also caused NatureRich to pay his commissions to a nominee trust called the "Andrew James Living Trust," from which he then paid his family’s expenses. During that time, SCHLEGEL also operated a painting business, receiving more than $400,000 in income from painting contracts.

According to the evidence presented at trial and documents filed in court, in 2004, the defendants, through the use of nominee entities, began engaging the "warehouse" banking services of Olympic Business Systems and Century Business Concepts. Warehouse banking refers to the use of one or more bank accounts in which the funds of multiple clients are deposited and transacted, thereby concealing the true source of the funds and the individual truly responsible for the transactions.

According to the evidence presented at trial and documents filed in court, the defendants also filed misleading federal corporate tax returns in the name of NatureRich in an effort to conceal the true extent of their personal interest in and the income derived from NatureRich. In all, the defendants attempted to conceal at least $3 million in gross income from the IRS, thereby avoiding income taxes on that amount and also avoiding having those funds seized for payment of their previous tax debts.

According to the evidence presented at trial and documents filed in court, from 2002 through 2010, SCHLEGEL, and his co-defendant Bradley Mark Collin, conspired with each other and others to defraud the U.S. by obstructing the Internal Revenue Service ("IRS") in its lawful collection and assessment of individual income taxes. To that end, SCHLEGEL failed to make any payments toward the back taxes, interest and penalties levied against him in 2000, which totaled more than $600,000. SCHLEGEL failed to file federal individual tax returns for tax years 2002-2009, pursuing "tax protestor" ideologies.

On December 23, 2013, Bradley Mark Collin pleaded guilty to one count of conspiracy to defraud the United States. On November 4, 2014, Bradley Mark Collin was sentenced to federal prison for 24 months and 3 years supervised release by Federal District Court Judge Patrick J. Schiltz.

"These sentencings should send a clear message; schemes to evade the payment of taxes are a violation of the Federal Tax laws and the consequences of such schemes can and will result in significant jail time" stated IRS Criminal Investigation Special Agent in Charge Shea Jones of the St. Paul Field Office.

These cases are the result of an investigation by the IRS Criminal Investigation. They were prosecuted by Assistant U.S. Attorneys Tracy L. Perzel and John E. Kokkinen.

 

Defendant Information:

ANDREW SCHLEGEL, 56

Corcoran, Minn.

 

Convicted:

• Conspiracy to Defraud the United States, 1 count

• Attempt to Evade or Defeat Tax, 3 counts

• Willful Failure to File Tax Returns, 3 counts

 

Sentenced:

• 60 months in prison

• 3 years supervised release

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

United States Attorney for the District of Minnesota Andrew M. Luger today announced an indictment charging MICHAEL LEWIS GRIFFIN, 40, a Minneapolis police officer, with assaulting at least four people while off-duty and after first identifying himself as a police officer, in violation of the Fourth Amendment to the United States Constitution which protects against the unreasonable use of physical force by law enforcement officers.

The defendant is also charged with lying on official police reports, in civil depositions and at trial. GRIFFIN is expected to appear on May 21, 2015, before Magistrate Judge Mayeron in U.S. District Court in Minneapolis, Minn.

"Police officers cannot use their shield as a weapon against innocent civilians," said U.S. Attorney Luger. "This defendant is charged with assaulting at least four people in his capacity as an off-duty officer, filing false paperwork and lying multiple times while under oath. Minneapolis is well served by the many hard-working and honest officers of the Minneapolis Police Department and I am proud of the close working relationship between the Department and my Office to address violent crime in the city. At the same time, we will not stand for those who abuse their badge and the public’s trust."

"The FBI will vigorously investigate allegations of corruption of public servants," said Special Agent in Charge of the FBI Minneapolis Division Richard T. Thornton. "No quarter will be given to those who would violate the public trust."

According to the indictment and documents filed in court, on May 29, 2010, GRIFFIN was with a friend outside of the Aqua Nightclub and Lounge (Aqua) on First Avenue in downtown Minneapolis. The defendant was off-duty and in plain clothes. GRIFFIN’s friend began arguing with a third person, I.R. The defendant displayed his badge and identified himself to I.R. as a police officer, at which point I.R. tried to walk to the Envy Nightclub about half a block away. GRIFFIN followed I.R. to the Envy Nightclub and punched him in the face until he was unconscious.

According to the indictment and documents filed in court, immediately after GRIFFIN knocked I.R. unconscious, GRIFFIN approached two on-duty Minneapolis police officers standing nearby, identified himself as a police officer, and directed them to arrest I.R. GRIFFIN later wrote a police report falsely indicating that I.R. tried to attack GRIFFIN and that GRIFFIN only punched I.R. after attempting to sweep his legs out from under him. I.R., who suffered lacerations to his lip and head, was charged subsequently with assaulting a police officer. The Minneapolis City Attorney’s Office later dismissed the charge against I.R.

According to the indictment and documents filed in court, in a separate incident on November 5, 2011, GRIFFIN verbally confronted four men at The Loop bar on Washington Avenue North in Minneapolis. GRIFFIN, who was off-duty at the time, threatened to have the men thrown out of the bar. The defendant approached the bouncer, identified himself as a police officer, displayed his badge, and directed the bouncer to throw the four men out of the bar. The bouncer complied with GRIFFIN’s command and told the men to leave.

According to the indictment and documents filed in court, GRIFFIN said he was going to call "his boys" and then followed the men out of the bar. GRIFFIN contacted his partner, Officer W.G., who was working nearby off-duty but in uniform. Officer W.G. arrived at the scene moments later in a squad car and took one of the men, M.M., into custody. As M.M. was being taken into custody, another victim, K.C., questioned where Officer W.G. was taking M.M. In response GRIFFIN grabbed K.C. from behind and threw him to the ground. After both K.C. and M.M. were in Officer W.G.’s squad car, the defendant stood outside the squad car yelling at both men.

According to the indictment and documents filed in court, GRIFFIN ordered M.M. to get out of the squad car and walk toward a loading dock area. There, GRIFFIN kicked M.M. in the chest and knocked him to the ground. Another of the men, J.A., observed the assault from a nearby taxi and approached M.M. GRIFFIN responded by punching J.A. in the head from behind, knocking him unconscious. GRIFFIN then kicked J.A. in the head. M.M. ran to seek help from Officer W.G. and also called 911 to request a "real" cop. Officer W.G. also summoned dispatch for an ambulance and a supervisor. J.A. was taken to the hospital and treated for multiple lacerations on his face and neck.

According to the indictment and documents filed in court, when additional Minneapolis police officers arrived at the scene, GRIFFIN made a false police report that resulted in M.M. being arrested for obstructing a police officer with force. The charges against M.M. were later dismissed by the Minneapolis City Attorney’s Office.

According to the indictment and documents filed in court, the defendant also indicated that J.A. instigated the original confrontation by violently pushing GRIFFIN from behind and that all four men surrounded GRIFFIN on the dance floor and threatened to "kick his ass." GRIFFIN also falsely reported that a bouncer warned him not to go outside of the bar because the men were waiting for him.

According to the indictment and documents filed in court, I.R. and the victims from the November 2011 incident filed civil law suits against GRIFFIN alleging excessive use of force. GRIFFIN lied in civil depositions taken in connection with both law suits. He testified at trial in the case related to the incident at The Loop bar and again lied under oath.

This case is the result of an investigation conducted by the Federal Bureau of Investigation.

This case is being prosecuted by Assistant United States Attorneys Steven L. Schleicher and Manda M. Sertich.

 

Defendant Information:

MICHAEL LEWIS GRIFFIN, 40

Plymouth, Minn.

Charges:

• Deprivation of rights under color of law, 4 counts

• Destruction, alteration, or falsification of records in Federal investigations, 2 counts

• Perjury at civil deposition, 2 counts

• Perjury at civil trial, 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 allegations, and the defendant is presumed innocent unless and until proven guilty.

United States Attorney for the District of Minnesota Andrew M. Luger and FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton today announced a superseding indictment charging seven Minnesota men with conspiracy to provide material support to a designated foreign terrorist organization, namely, the Islamic State of Iraq and the Levant (ISIL).1 An indictment filed on February 19, 2015, charging HAMZA NAJ AHMED, 21, has been superseded to add ZACHARIA YUSUF ABDURAHMAN, 19; ADNAN FARAH, 19; HANAD MUSTAFE MUSSE, 19; GULED ALI OMAR, 20; ABDIRAHMAN YASIN DAUD, 21; and MOHAMED ABDIHAMID FARAH, 21.

According to the indictment and documents filed in court, for at least the last ten months, the Minneapolis Division of the FBI has been conducting an investigation into a group of individuals who have tried to join – and in some cases succeeded in joining – overseas designated foreign terrorist organizations. At least nine Minnesotans have now been charged as part of this conspiracy to provide material support to ISIL. The men are all associates and friends of one another. Among the co-conspirators are ABDULLAHI YUSUF and ABDI NUR, both of whom were originally charged by criminal complaint in November 2014.

The superseding indictment adds ABDURAHMAN, MUSSE, OMAR, DAUD, A. FARAH, and M. FARAH to the February 19, 2015, indictment charging AHMED with conspiracy to provide material support to a designated foreign terrorist organization. The superseding indictment also adds charges of attempt to provide material support to a designated foreign terrorist organization against OMAR, M. FARAH, ABDURAHMAN, MUSSE and DAUD.

According to the indictment and documents filed in court, M. FARAH is further charged with making a false statement during a terrorism investigation, because he lied to FBI agents about the circumstances surrounding his November 2014 bus trip to JFK Airport and subsequent scheduled departure to Europe.

According to the indictment and documents filed in court, AHMED and MUSSE are also charged with financial aid fraud. On November 8, 2014, both AHMED and MUSSE withdrew more than $1,000 in federal financial aid funds to purchase international airplane tickets from New York’s JFK Airport to destinations in Europe.

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

 

Defendant Information:

HAMZA NAJ AHMED, 21

Savage, Minn.

Charges:

• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count

• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count

• False statement, 1 count

• Financial aid fraud, 1 count

 

MOHAMED ABDIHAMID FARAH, 21

Minneapolis, Minn.

Charges:

• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count

• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 2 counts

• False statement, 1 count

 

HANAD MUSTAFE MUSSE, 19

Minneapolis, Minn.

Charges:

• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count

• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count

• Financial aid fraud, 1 count

 

GULED ALI OMAR, 20

Minneapolis, Minn.

Charges:

• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count

• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count

 

ZACHARIA YUSUF ABDURAHMAN, 19

Columbia Heights, Minn.

Charges:

• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count

• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count

 

ABDIRAHMAN YASIN DAUD, 21

Minneapolis, Minn.

Charges:

• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count

• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count

 

ADNAN FARAH, 19

Minneapolis, Minn.

Charges:

• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 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 Andrew M. Luger today announced the sentencing of CHRISTOPHER MICHAEL STRONG, SR., 34, to 360 months in federal prison for a violent sexual assault committed on the Red Lake Indian Reservation. On December 19, 2014, following a three-day trial, a federal jury found STRONG guilty of aggravated sexual abuse. The defendant was sentenced on May 7, 2015 before Senior Judge Richard H. Kyle, Sr. in U.S. District Court in Duluth, Minn.

As proven at trial, in June of 2014, STRONG kidnapped and physically and sexually assaulted a female victim. Over a period of three days, STRONG brutally and repeatedly abused the victim. During the trial, photographs were entered into evidence that showed in graphic detail the permanent and life-threatening injuries the victim suffered.

In a second, unrelated case, QUENTIN LEE STRONG, 29, was sentenced to 120 months in federal prison for a shooting committed on the Red Lake Indian Reservation. STRONG, who was indicted on September 24, 2014, pleaded guilty on January 26, 2015 to assault resulting in serious bodily injury. The defendant was sentenced on May 11, 2015 before Chief Judge Michael J. Davis in U.S. District Court in Duluth, Minn.

According to his guilty plea and documents filed in court, on the morning of August 19, 2014, STRONG was illegally in possession of a .22 caliber rifle, which he used outside of his house to fire multiple rounds in the direction of a female victim. One of the bullets hit the victim in her left knee.

“These are two examples of the extreme domestic violence that is present on the Red Lake Indian Reservation,” said Assistant U.S. Attorney Clifford B. Wardlaw. “These lengthy sentences send a clear message that violent acts such as these will not be tolerated.”

Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.

Violence against American Indian women occurs at epidemic rates. In 2005, Congress found that one in three American Indian women is raped during her lifetime, and American Indian women are nearly three times more likely to be battered during their lives than Caucasian women.

The U.S. Justice Department is taking steps to increase engagement, coordination, and action relative to public safety in tribal communities, including the creation of the Violence Against Women Federal and Tribal Prosecution Task Force. This task force will explore current issues raised by professionals in the field and recommend “best practices” in prosecution strategies involving domestic violence, sexual assault and stalking.

To learn more about the Justice Department’s Tribal Safety program, visit http://www.justice.gov/tribal/.

These cases resulted from an investigation conducted by the Federal Bureau of Investigation and the Red Lake Police Department.

These cases were prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.


Defendant Information: CHRISTOPHER MICHAEL STRONG, SR., 34
Red Lake, Minn.

Convicted: • Aggravated Sexual Abuse, 1 count

Sentenced: • 360 months in prison
• Five years supervised release

QUENTIN LEE STRONG, 29
Redby, Minn.

Convicted: • Assault Resulting in Serious Bodily Injury, 1 count

Sentenced: • 120 months in prison
• Three years supervised release

 

 

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United States Attorney Andrew M. Luger and Special Agent in Charge of the United States Secret Service Minneapolis Division Louis Stephens today announced the indictment of ZIBO LI, 30, and eight co-conspirators for conspiring to traffic in stolen and fraudulently obtained cellular telephones and related charges. LI led the conspiracy, during which he trafficked at least $3.8 million in stolen cellular devices throughout the United States and between the United States and Hong Kong. LI made an initial appearance today before United States Magistrate Judge Mayeron in U.S. District Court in Minneapolis, Minn.

“According to this indictment, the criminal conspiracy dismantled today was adept at victimizing Minnesota businesses and citizens,” said Special Agent in Charge of the United States Secret Service Minneapolis Division Louis Stephens. “Today’s success is the result of close and collaborative working relationships between local, state and federal law enforcement agencies, as well as federal prosecutors and several organizations in the retail sector. The Minnesota Financial Crimes Task Force is a force multiplier that facilitates numerous law enforcement agencies in combining our resources, leveraging our various areas of expertise, and working as one. Working together, we are able to stop significant crime in its tracks.”

“As charged, these defendants stole the identifying information of nearly 60 known individuals and 20 known businesses,” said Assistant United States Attorney Manda M. Sertich. “They exploited vulnerable members of our society, including people residing in homeless shelters, to steal cell phones and turn a profit. I am proud to work with my law enforcement colleagues to put an end to this alleged conspiracy.”

According to the indictment and documents filed in court, between 2011 and 2014, ZIBO LI and eight co-defendants engaged in a conspiracy to fraudulently obtain mobile cellular devices for reduced rates by fraudulently entering into service contacts, often using identity theft. ZIBO LI ultimately sold the stolen merchandise to contacts in Hong Kong, where a new Apple iPhone could, at the time of the conspiracy, retail for as much as $2,000.

According to the indictment and documents filed in court, OMID NGANGE AKALE, DEREK KREZ MCCORMACK, and JOSEPH FRANCIS WERB, each served as middlemen in LI’s organization. They purchased stolen or fraudulently obtained phones from buyers, and subsequently sold them to ZIBO LI. LI paid the middlemen by depositing cash directly into their bank accounts.

According to the indictment and documents filed in court, buyers for the organization were responsible for obtaining low-cost phones from retailers. Among the methods employed to obtain phones was “credit muling,” a scheme through which buyers, or those acting at their direction, signed up for cellular telephone service contracts to obtain reduced cost phones in other people’s names, but never intended to or did honor those contracts. Some of the buyers also recruited people residing in homeless shelters to sign up for cell phone contracts and obtain reduced cost phones, for which those recruited received nominal payments or goods.

According to the indictment and documents filed in court, buyers often used stolen identities to enter into contracts to obtain low-cost phones. They obtained stolen identities of real victims from co-conspirators TEMETRIUS LATONYA NICKERSON and REGINALD DEMARIUS WASHINGTON. The buyers provided stolen identities to ELIJAH WAYNE JACKSON to use in the opening of cell phone service contracts from his employer, a major Twin Cities-area retailer. JACKSON ran credit checks on the stolen identities to confirm that the stolen identities could be used to enter into cell phone service contracts and obtain cellular devices using the names of the identity theft victims.

According to the indictment and documents filed in court, IFRAH ISAAK NOR and RANDOLPH KENDRICK WILLIAMS also used stolen information to fraudulently obtain cellular telephones. Rather than using stolen identity information of individuals, NOR and WILLIAMS stole the identifying information of a Twin Cities-area business, which they exploited to open business accounts with cellular telephone contract providers. Applying for business contracts allowed WILLIAMS and NOR to obtain far more low-cost phones than an individual account.

This case is the result of an investigation conducted by the United States Secret Service, Saint Paul Police Department, Minnesota Bureau of Criminal Apprehension, Minnesota Financial Crimes Task Force, University of Minnesota Police Department, and Plymouth Police Department.

This case is being prosecuted by Assistant United States Attorneys Manda M. Sertich, Steven L. Schleicher, and John R. Marti.


Defendant Information: ZIBO LI, 30
Golden Valley, Minn.

Charges: • Conspiracy to traffic unauthorized access devices, 1 count
• Fraud and related activity in connection with access devices, 1 count

DEREK KREZ MCCORMACK, 33
St. Louis Park, Minn.

Charges: • Conspiracy to traffic unauthorized access devices, 1 count
• Fraud and related activity in connection with access devices, 1 count

ELIJAH WAYNE JACKSON, 21
St. Paul, Minn.

Charges: • Conspiracy to traffic unauthorized access devices, 1 count
• Aggravated identity theft, 2 counts

TEMETRIUS LATONYA NICKERSON, 42
St. Paul, Minn.

Charges: • Conspiracy to traffic unauthorized access devices, 1 count
• Aggravated identity theft, 1 count

REGINALD DEMARIUS WASHINGTON, 23
Brooklyn Park, Minn.

Charges: • Conspiracy to traffic unauthorized access devices, 1 count
• Aggravated identity theft, 1 count

OMID NGANGE AKALE, 35
Minneapolis, Minn.

Charges: • Conspiracy to traffic unauthorized access devices, 1 count

JOSEPH FRANCIS WERB, 37
Minneapolis, Minn.

Charges: • Conspiracy to traffic unauthorized access devices, 1 count

RANDOLPH KENDRICK WILLIAMS, 27
Bloomington, MN

Charges: • Conspiracy to traffic unauthorized access devices, 1 count

IFRAH ISAAK NOR, 23
St. Louis Park, Minn.

Charges: • Conspiracy to traffic unauthorized access devices, 1 count

 

 

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

United States Attorney Andrew M. Luger today announced an indictment charging ANTHONY CURTIS HARRIS, 33, and six others with conspiring to traffic cocaine and marijuana into Minnesota from California and Arizona via FedEx and the United States Postal Service.1 Additionally, some members of the conspiracy were also charged with possession with intent to distribute cocaine and others with conspiracy to commit money laundering. Six defendants have already made initial appearances in U.S. District Courts in San Diego, Calif., and in St. Paul, and Minneapolis, Minn.

“This case is an excellent example of the power of partnerships and exceptional police work,” said William Martinez, a Saint Paul Police Department assistant chief who oversees major crimes. “Any day we stop a major drug smuggling operation in its tracks is a good day. Thanks to the fine work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and our officers, today is a good day for Saint Paul.”

Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge James C. Modzelewski said, “The great success of this investigation is a direct result of the strong partnership between ATF and the St. Paul Police Department. I commend the agents and officers involved in this case for their unwavering tenacity and determination in shutting down this organization that is responsible for some of the illegal drugs and firearms in the streets of St. Paul.”

According to the indictment and documents filed in court, between December 2012 and April 2, 2015, HARRIS made multiple trips from Minnesota to San Diego, California and Phoenix, Arizona to obtain drugs and arrange for their shipment to Minnesota. HARRIS and other members of the conspiracy distributed drugs and deposited the proceeds from drug sales into bank accounts and onto prepaid debit cards.

According to the indictment and documents filed in court, KEVIN BROWN, TOUSSAINT STARKS, LOPEZ WALTERS, SIMON MASON, DONALD WILLIAMS, and DARION ESTIS each participated in the drug trafficking scheme. The defendants sent, received, and distributed drugs, or laundered money on HARRIS’ behalf. On December 20, 2013, law enforcement intercepted a package containing 24.9 pounds of marijuana which was sent to the FedEx Office in Maplewood, Minn. from a FedEx account used by HARRIS. On June 20, 2014, a package containing approximately one kilogram of cocaine was shipped from a FedEx Office in San Diego, Calif. and was picked up the next day by STARKS at a FedEx Office in Eden Prairie, Minn. Between December 2012 and September 2014, hundreds of packages containing a total of more than 1,000 kilograms of marijuana were shipped through the U.S. Postal Service and multiple FedEx accounts linked to HARRIS.

According to the indictment and documents filed in court, during the indicted period, the defendants used multiple bank accounts to promote and conceal the drug trafficking conspiracy. As part of a money laundering scheme, more than $1.2 million dollars in cash was deposited in Minnesota, in bank accounts linked to HARRIS. The deposited funds, which ranged from approximately $2,000 to $9,000 per deposit, were almost immediately withdrawn from the accounts from locations in California.

The indictment is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Paul Police Department, the United States Postal Service Inspections, and the Internal Revenue Service. This case is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.


Defendant Information: ANTHONY CURTIS HARRIS, 33
San Diego, Calif.

Charges: • Conspiracy to Distribute Marijuana and Cocaine, 1 count
• Possession with Intent to Distribute Cocaine, 1 count
• Conspiracy to Commit Money Laundering, 1 count

KEVIN TERRELL BROWN, 38
Eagan, Minn.

Charges: • Conspiracy to Distribute Marijuana and Cocaine, 1 count
• Conspiracy to Commit Money Laundering, 1 count

TOUSSAINT DAVID STARKS, 46
Bloomington, Minn.

Charges: • Conspiracy to Distribute Marijuana and Cocaine, 1 count
• Possession with Intent to Distribute Cocaine, 1 count

LOPEZ MORRIS WALTERS, 33
New Brighton, Minn.

Charges: • Conspiracy to Distribute Marijuana and Cocaine, 1 count

SIMON LEE MASON, 33
St. Paul, Minn.

Charges: • Conspiracy to Distribute Marijuana and Cocaine, 1 count
• Conspiracy to Commit Money Laundering, 1 count

DONALD BERNARD WILLIAMS, JR., 26
Inver Grove Heights, Minn.

Charges: • Conspiracy to Distribute Marijuana and Cocaine, 1 count

DARION SCOTT ESTIS, 33
Shoreview, Minn.

Charges: • Conspiracy to Commit Money Laundering, 1 count

 

 

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

United States Attorney Andrew M. Luger announced the sentence of DANIEL NOK MUSA, 56, to 51 months in prison for withholding taxes from his employees but failing to pay them to the Internal Revenue Service. The defendant was sentenced on April 22, 2015, before U.S. District Judge John R. Tunheim in Minneapolis, Minn.

According to his guilty plea and documents filed in court, between 2002 and October 31, 2009, MUSA owned and operated home health care businesses known generally as “Life Care.” His employees were personal care attendants. As the owner of this business, MUSA withheld income taxes and Social Security and Medicare taxes from his employees’ paychecks. However, beginning in 2002, MUSA did not pay the full amounts owed, and repeatedly paid little or nothing to the IRS. Beginning in March 2006 and for the 12 subsequent tax quarters, MUSA paid only a portion or none of the money withheld from his employees’ paychecks. During that period, MUSA deducted a total of $101,340 from his employees’ paychecks and kept $85,122 for his own personal use. In total, MUSA failed to pay $284,000 in employment taxes.

According to his guilty plea and documents filed in court, MUSA evaded paying taxes by, among other things, falsely telling revenue officers that he was shutting down his business, when in fact he only shifted his business into different shells. For example, in 2005, MUSA operated Life Care as a sole proprietorship called Life Care Home Health Care. When the IRS began trying to collect unpaid unemployment taxes, MUSA reconstituted Life Care as Life Care Home Health, LLC. In 2006, MUSA again changed the name of the entity to avoid taxes, this time calling it Life Care PCA, LLC. MUSA reconstituted the business between 2007 and 2013 under four additional names to avoid paying taxes.

According to his guilty plea and documents filed in court, MUSA spent the money he stole on an extravagant lifestyle. He bought multiple houses, luxury vehicles, and other extravagances. MUSA also spent a large amount of money at Mystic Lake Casino, losing between $1,000 and $2,000 per week. Between 2006 and 2011, MUSA was at Mystic Lake at least 462 times.

The investigation was conducted by the Internal Revenue Service-Criminal Investigations Division.

This case was prosecuted by Assistant United States Attorney Michael L. Cheever.


Defendant Information: DANIEL NOK MUSA, 56
Shakopee, Minn.

Convicted: • Failure to account for and pay over withheld taxes, 14 counts

Sentenced: • 51 months in prison
• 3 years supervised release
• $284,000 restitution

 

 

United States Attorney Andrew M. Luger today announced the conviction after a jury trial of RAHMAD LASHAD GEDDES, a/k/a “Face,” a/k/a “Poo Poo,” 36, for trafficking an 18-year- old woman from Wisconsin to Duluth, Minn., for the purpose of commercial sex. On April 8, 2015, GEDDES was charged by indictment with one count of sex trafficking by force, fraud, or coercion, one count of transportation with intent to engage in prostitution, and one count of armed career criminal in possession of a firearm. Following a six-day trial, a jury found GEDDES guilty of all counts in the indictment.

As proven at trial, on January 6, 2014, GEDDES recruited the victim from her home in Eau Claire, Wis., for the purpose of trafficking her for commercial sex. The defendant and a friend took the victim to a motel in Duluth, Minn., where they took pictures of her to place an advertisement for commercial sex on backpage.com. GEDDES used an anonymous prepaid credit card to pay for the online advertisement. GEDDES and his friend used the victim’s cell phone to set up several “dates” between the victim and “johns.” On one occasion, after a meeting with a “john,” GEDDES accused the victim of hiding money. The defendant physically assaulted the victim and told her that he hit her because she did not do what she was told.

As proven at trial, on January 9, 2014, GEDDES traded drugs, which he referred to as “rocks,” for two semi-automatic handguns and ammunition. GEDDES has four previous felony convictions in Cook County, Ill., Hennepin County and Sherburne County, Minn., making him an armed career criminal under federal law.

As proven at trial, on January 14, 2014, GEDDES returned the victim to her home. She immediately reported to her pastor that she “had been used for prostitution.”

This case is the result of an investigation conducted by the Federal Bureau of Investigation, Homeland Security Investigations, Duluth Police Department and St. Louis County Sheriff’s Office.

Assistant U.S. Attorney Laura M. Provinzino and Special Assistant U.S. Attorney Jon Holets of the St. Louis County Attorney’s Office are prosecuting the case.


Defendant Information: RAHMAD LASHAD GEDDES, a/k/a “Face,” a/k/a “Poo Poo,” 36
Blaine, Minn.

Convicted: • Sex Trafficking by Force, Fraud, or Coercion, 1 count
• Transportation with Intent to Engage in Prostitution, 1 count
• Armed Career Criminal in Possession of a Firearm, 1 count

 

 

United States Attorney Andrew M. Luger today announced the sentencing of DAVID LARRY RASMUSSEN, 42, to 204 months in federal prison for production of child pornography. RASMUSSEN was indicted on May 21, 2013, and pleaded guilty on March 11, 2013, to three counts of Production of Child Pornography. The defendant was sentenced today before Judge David S. Doty in U.S. District Court in Minneapolis, Minn.

According to the defendant’s guilty plea and documents filed in court, RASMUSSEN produced and traded child pornography images and videos on-line. He took pictures of three children, ages 4, 3, and one and a half, in their homes and in his own home in Mountain Lake, Minn. On October 27, 2012, RASMUSSEN’S computers were seized by the Mountain Lake Police Department. Law enforcement conducted a search of the computers and found thousands of images and videos of prepubescent children subjected to sexual penetration, and included bondage and violent materials.

In a sentencing position filed with the court, the federal prosecutor argued for a significant sentence: He argued that RASMUSSEN “victimized the children of neighbors who trusted him in order to produce and distribute child pornography for the sexual gratification of himself and his friends” and that RASMUSSEN also “stored and distributed an astonishing amount of child pornography depicting the rape and torture of children.”

RASMUSSEN has been in custody since he was arrested on the federal charges on May 28, 2013. Prior to that, Rasmussen had been facing state charges.

This case resulted from an investigation conducted by the Mountain Lake Police Department and the Federal Bureau of Investigation.

The case was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.

Production and distribution of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is presently funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.

This case is part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals resources to locate, apprehend, and prosecute individuals who sexually exploit children while identifying and rescuing victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”


Defendant Information: DAVID LARRY RASMUSSEN, 42
Mountain Lake, Minn.

Convicted: • Production of Child Pornography, 3 counts

Sentenced: • 204 months in prison
• 10 year term of supervised release

 

 

United States Attorney Andrew M. Luger today announced that R.J. Zavoral & Sons, Inc., John Zavoral, Peter Zavoral and Craig Pietruszewski have agreed to pay $1.85 million to resolve allegations that they violated the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act by making false statements to the Small Business Administration (SBA) and the U.S. Army Corps of Engineers. The allegations related to the Heartsville Coulee Diversion construction contract for flood control work in and around East Grand Forks, Minnesota, mainly performed between 2004 and 2008.

“Congress created the SBA’s 8(a) program to give meaningful opportunities to deserving disadvantaged small businesses across the country,” said Assistant U.S. Attorney David W. Fuller. “We will continue to work with our agency partners to identify and pursue instances where companies attempt to take advantage of the 8(a) program and others like it.”

According to the allegations, the U.S. Army Corps of Engineers had set aside the contract for the Heartsville construction project for a qualified Section 8(a) business concern under the SBA’s Section 8(a) Business Development Program. For the purpose of qualifying for the contract award, R.J. Zavoral & Sons entered into a joint venture with a qualified Section 8(a) business. The United States alleged that the Defendants made numerous false statements to both the SBA and the Corps of Engineers in order to be awarded the Heartsville Coulee Diversion Section 8(a) contract, to retain the contract, and to claim and receive payments of federal monies made under the contract. The actions of Defendants resulted in harm to the Section 8(a) business concern and caused the United States to pay significant amounts of money to the Joint Venture with little or no benefit to the Section 8(a) Business Development Program.

“The purpose of the 8(a) Program is to promote the business development of eligible small business concerns owned and controlled by socially and economically disadvantaged individuals so that such concerns can compete on an equal basis in the American economy,” said Melvin F. Williams Jr., SBA’s General Counsel. “This settlement sends a clear message that the United States Attorney’s Office will aggressively pursue allegations of fraud against the SBA Section 8(a) Program, which is so vitally important to the nation’s economy and to the many disadvantaged small businesses that participate in the program. This settlement protects the integrity of this critical program.”

This case is the result of a cooperative investigation conducted by the Small Business Administration, the Department of Defense Office of the Inspector General, and the Defense Contract Audit Agency.

The underlying case is United States v. R.J. Zavoral & Sons, Inc.; John T. Zavoral; Peter M. Zavoral; and Craig A Pietruszewski, Civil No. 12-cv-00668 (MJD/LIB).

 

 

Four defendants arrested in Minneapolis; two arrested in San Diego

United States Attorney for the District of Minnesota Andrew M. Luger, FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton, and Assistant Attorney General for National Security John Carlin today announced a criminal complaint charging six Minnesota men with conspiracy and attempt to provide material support to a designated foreign terrorist organization, namely, the Islamic State of Iraq and the Levant (ISIL). ZACHARIA YUSUF ABDURAHMAN, 19; ADNAN FARAH, 19; HANAD MUSTAFE MUSSE, 19; and GULED ALI OMAR, 20, were arrested yesterday in Minneapolis. ABDIRAHMAN YASIN DAUD, 21, and MOHAMED ABDIHAMID FARAH, 21, were arrested yesterday in San Diego, California.

“As described in the criminal complaint, these men worked over the course of the last 10 months to join ISIL,” said U.S. Attorney Luger. “Even when their co-conspirators were caught and charged, they continued to seek new and creative ways to leave Minnesota to fight for a terror group. I applaud the hard work and tireless efforts of the FBI Minneapolis Division and their colleagues around the country.”

“Preventing acts of terrorism is the FBI's highest priority,” said FBI Special Agent in Charge Thornton. “Disrupting individuals from traveling to join and fight for ISIL is an important part of our counter terrorism strategy. As a result of this investigation and arrests, these six Minnesota men who planned to travel and fight for ISIL will answer these charges in U.S. District Court instead of taking up arms in Syria. The FBI remains committed to ending both recruitment efforts and travel on the part of young people from Minnesota to fight overseas on behalf of terror groups. These arrests today signify this continued commitment.”

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

“The six defendants charged in the complaint allegedly planned to travel to Syria as part of their conspiracy to provide material support to ISIL,” said Assistant Attorney General Carlin. “One of the National Security Division’s highest priorities is to identify, disrupt, and hold accountable those who provide or attempt to provide material support to designated foreign terrorist organizations. I would like to thank the many agents, analysts, and prosecutors who are responsible for this investigation and the charges in this case.”

“I want to commend the work of the FBI's Joint Terrorism Task Force who worked countless hours in support of our law enforcement partners in Minnesota,” said U.S. Attorney for the Southern District of California Laura E. Duffy. “We are satisfied that because of these arrests, we have furthered our mission to safeguard national security by preventing individuals from joining ISIL, a foreign terrorist organization that threatens to induce our youth into committing violence against foreigners and U.S. citizens alike.”

According to the criminal complaint and documents filed in court, for the last ten months, the Minneapolis Division of the FBI has been conducting an investigation into a group of individuals who have tried to join – and in some cases succeeded in joining – overseas designated foreign terrorist organizations. At least nine Minnesotans have now been charged as part of this conspiracy to provide material support to ISIL. The men are all associates and friends of one another. Among the co-conspirators are ABDULLAHI YUSUF and ABDI NUR, both of whom were originally charged by criminal complaint in November 2014, and HAMZA AHMED, who was indicted in February 2015.

ABDI NUR boarded a flight on May 29, 2014, bound for Turkey and has not returned to the United States. He called a relative on June 6, 2014, from a telephone number bearing the country code for Turkey, “90”. NUR told his relative that he had reached his destination and that he would not be calling again. This same telephone number was used three weeks later by another man who traveled from the Twin Cities to Syria to join ISIL.

According to the criminal complaint and documents filed in court, on June 3, 2014, a person identified in court documents as Y.J., purchased both a round-trip ticket from JFK International Airport to Istanbul, Turkey, and a bus ticket from Minneapolis to New York. He departed JFK on June 9, 2014, for Istanbul. He has not returned to the United States. On June 25, 2014, Y.J. called a family member, also using the same Turkish telephone number referenced previously.

According to the criminal complaint and documents filed in court, OMAR tried to travel on November 6, 2014, on a flight from Minneapolis/St. Paul International Airport to San Diego, California. Before he could board the flight, OMAR was stopped at the airport in Minnesota and not allowed to board. OMAR had planned previously to leave the United States in May 2014 to join ISIL, but later abandoned his immediate plans to travel after being confronted by his family.

According to the criminal complaint and documents filed in court, between November 6 and November 8, 2014, M. FARAH, MUSSE, ABDURAHMAN, and previously indicted co-conspirator HAMZA AHMED, traveled by bus to New York City. M. FARAH, MUSSE and ABDURAHMAN were stopped before boarding international flights from JFK to various destinations in Southeastern Europe in an attempt to travel to Syria to join ISIL.

According to the criminal complaint and documents filed in court, after the failed attempts to travel in November 2014, MUSSE, M. FARAH, ABDURAHMAN, and OMAR were joined in their discussions by DAUD, A. FARAH, and a seventh person, who was also a confidential human source (CHS). Members of this group discussed a plan to obtain false passports for another attempt to leave the United States for Syria. The CHS later informed OMAR that he had obtained a source for forged passports in San Diego, California.

According to the criminal complaint and documents filed in court, between March 30 and April 9, 2015, several of the defendants provided photographs and cash payments to the CHS for use in obtaining their fake passports.

According to the criminal complaint and documents filed in court, at approximately 8:15 p.m. on April 17, 2015, M. FARAH, DAUD and the CHS left Minneapolis in DAUD’s vehicle, bound for San Diego, California.

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

Defendant Information: ZACHARIA YUSUF ABDURAHMAN, 19
Columbia Heights, Minn.

Charges:

• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count

ABDIRAHMAN YASIN DAUD, 21
Minneapolis, Minn.

Charges:

• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count

ADNAN FARAH, 19
Minneapolis, Minn.

Charges:

• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
  

MOHAMED ABDIHAMID FARAH, 21
Minneapolis, Minn.

Charges:

• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count

HANAD MUSTAFE MUSSE, 19
Minneapolis, Minn.

Charges:

• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
  

GULED ALI OMAR, 20
Minneapolis, Minn.

Charges:

• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count

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

 

 

Jeffrey Gardner and Stuart Voigt charged with using real estate scheme to steal millions

United States Attorney Andrew M. Luger today announced a superseding indictment charging JEFFERY ALLEN GARDNER, 61, and STUART ALAN VOIGT, 66, for conspiring to defraud individuals and financial institutions. In an indictment unsealed on July 24, 2014, GARDNER was charged with conspiracy to commit mail and wire fraud and other charges. In a superseding indictment filed today, VOIGT is also charged with conspiracy to commit mail fraud and other charges, and both defendants are additionally charged with bank fraud and making a false statement in a loan application.

“Those who hold positions of responsibility in the banking and investment industries are duty- bound to be honest and forthright with their clients,” said U.S. Attorney Luger. “We will continue to work with all of our federal and state partners to protect this important principle.”

According to the indictment and documents filed in court, between 2005 and 2007, GARDNER and VOIGT solicited and raised funds from private investors in connection with GARDNER’S business entity, Hennessey Financial, LLC (Hennessey). Investors were told that their investment would be used for commercial real estate financing and related projects, and were promised returns of between 10 and 20 percent annually. However, according to the superseding indictment, GARDNER, VOIGT, and others misrepresented the true financial circumstances of Hennessey to the victim investors.

According to the indictment and documents filed in court, GARNDER did not use Hennessey’s funds substantially as promised, instead diverting them to unapproved uses, including for repayments to prior investors and preexisting debts incurred by GARDNER and his companies. Moreover, even when GARDNER knew that Hennessey was failing as a business and unlikely to meet its obligations to repay investor funds, his company’s communications still represented to investors that their investments had positive value and were expected to continue to yield previously promised returns.

According to the indictment and documents filed in court, during the time period when Hennessey was failing, GARDNER and VOIGT created new companies, opened bank accounts in the names of new companies, transferred funds from Hennessey accounts, and took other steps to hide income and assets from investors, creditors, and the government.

According to the indictment and documents filed in court, VOIGT knowingly engaged in monetary transactions of criminally derived property, namely multiple payments exceeding $50,000 each drawn from a Hennessey Financial account and made payable to VOIGT. During this same time period, VOIGT was the chairman of the board of First Commercial Bank (FCB). According to the charges, in order to keep Hennessey afloat and provide funds to funnel back to VOIGT, GARDNER and VOIGT secured loans for GARDNER from FCB without truthfully disclosing GARDNER’S financial situation. The defendants filed security interests and took other steps to allow another company to obtain Hennessey assets that GARDNER had presented as security for the loans from FCB, thereby depriving FCB of collateral and reducing the likelihood that FCB would be made whole.

According to the indictment and documents filed in court, GARDNER also misrepresented the reason Hennessey’s CFO resigned in early 2008. He told FCB that the CFO had been dismissed because he was only working 20 hours per week and was having family issues, when in truth, the CFO resigned due to concerns he had about Hennessey’s financial condition and representations made to investors.

According to the indictment and documents filed in court, VOIGT also made false statements to Tradition Capital Bank (TCB) in connection with a personal loan. VOIGT is charged with misrepresenting the value of his assets in personal financial statements made to the bank.

This case is the result of an investigation conducted by the United States Postal Inspection Service, Federal Bureau of Investigation, the Federal Deposit Insurance Corporation Office of the Inspector General, and the Minnesota Department of Commerce – Fraud Bureau.

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

Defendant Information: JEFFERY ALLEN GARDNER, 61
Hopkins, Minn.

Charges: • Conspiracy to commit mail fraud, 2 counts
• Mail fraud, 4 counts
• Bank fraud, 5 counts
• False statement on a loan application, 7 counts
• Monetary transactions in criminally-derived property, 1 count

STUART ALAN VOIGT, 66
Apple Valley, Minn.

Charges: • Conspiracy to commit mail fraud, 2 counts
• Mail fraud, 4 counts
• Bank fraud, 5 counts
• False statement on a loan application, 7 counts
• Monetary transactions in criminally-derived property, 16 counts
• False statement to the FDIC, 2 counts

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

 

 

United States Attorney Andrew M. Luger today announced the indictment of ELISEO ORTIZ, 49, STACEY JEAN BERGHAMMER, 33, and SHANNON LEE TROLLEN, 37, for conspiring to file false state and federal tax returns and claim tax refunds. The three defendants are charged with conspiracy to file false claims for income tax refunds. ORTIZ and BERGHAMMER are also charged with filing false claims for income tax refunds, and ORTIZ is additionally charged with procuring a false tax return.

“Eliseo Ortiz is charged with conspiring to file fraudulent tax returns from behind bars,” said U.S. Attorney Luger. “Conspiring with associates on the outside is a nefarious way to steal from the public. I am grateful to the investigators at IRS Criminal Investigation for pursuing cases like these on behalf of honest taxpayers.”

“The defendants who allegedly perpetrated this tax fraud scheme systematically defrauded the government and the taxpaying public,” said Special Agent in Charge Shea Jones, of the St. Paul Field Office IRS Criminal Investigation. “IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by preparing false tax returns in order to obtain refunds.”

According to the indictment and documents filed in court, between 2008 and at least April 28, 2010, ORTIZ was incarcerated at Stillwater Correctional Facility, where he recruited other inmates to provide names and social security numbers for the defendants to use in preparing and filing the false tax returns. These “recruits” were also asked to provide addresses for unincarcerated trusted associates who could transfer money from tax refunds to the defendants and other co-conspirators. ORTIZ provided the information he obtained from the recruits to BERGHAMMER or TROLLEN, who would then complete and file the false tax returns that fraudulently claimed refunds to which the recruits were not entitled.

According to the indictment and documents filed in court, the defendants and other co- conspirators filed tax returns claiming false wages, withholdings, and other information. Many of the fraudulent tax returns falsely claimed that the recruits were entitled to tax credits such as the earned income tax credit, the making work pay credit, and the additional child tax credit. In reality, the recruits had not earned the income that was reported, they had not had any income tax withholdings, they were not eligible for the tax credits listed, and they were not entitled to refunds claimed.

According to the indictment and documents filed in court, the defendants and other co- conspirators obtained payments for their roles in the scheme in various ways. If an income tax refund for a filing co-conspirator was issued by check, payments were sometimes obtained by having the check sent to the address of a trusted associate who was not in prison, cashing the check, and then splitting the money between the co-conspirator, the defendants, and others. If a refund was obtained through a direct deposit or into a debit card, payments to the co-conspirators and defendants were sometimes made by using money orders and wire transfers.

This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division.

This case is being prosecuted by Assistant U.S. Attorney Michael L. Cheever.


Defendant Information: ELISEO ORTIZ, 49
Bartlett, Ill.

Charges: • Conspiracy to file false claims, 1 count
• False Claims, 3 counts
• Procuring a False Tax Return, 1 count

STACEY JEAN BERGHAMMER, 33
Red Wing, Minn.

Charges: • Conspiracy to file false claims, 1 count
• False Claims, 3 counts

SHANNON LEE TROLLEN, 37
Stockholm, Wisc.

Charges: • Conspiracy to file false claims, 1 count

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

 

 

United States Attorney Andrew M. Luger today announced the sentence of CHRISTOPHER LINDSEY, 42, to 15 years in prison for orchestrating an identity theft, check, and tax fraud scheme that spanned more than 10 years. The defendant was sentenced on April 13, 2015, before Judge Donovan W. Frank.

“Christopher Lindsey is responsible for compromising the bank accounts of thousands of victims,” said Assistant U.S. Attorney Lola A. Velazquez-Aguilu. “He enlisted countless individuals into his schemes to steal hundreds of thousands of dollars from banks and from taxpayers. The money he stole may never be repaid, but the fifteen-year sentence brings some measure of justice to those people whose lives he impacted.”

According to his guilty plea and documents filed in court, between October 2002 and December 2013, LINDSEY coordinated an elaborate fraud and identity theft scheme. The defendant obtained legitimate bank account information, including names and addresses of businesses and individuals, bank routing and account numbers, check numbers, and signatures, from a variety of sources, including approximately 20,000 stolen checks. LINDSEY used that stolen information to make counterfeit checks, which were later cashed or deposited at various financial institutions and businesses throughout the Twin Cities. In total, LINDSEY and his co-conspirators attempted to steal more than $1 million.

According to his guilty plea and documents filed in court, LINDSEY simultaneously led a conspiracy to submit false tax returns to the IRS. The defendant and his co-conspirators recruited individuals to file fraudulent tax returns. LINDSEY created fraudulent W-2s for the recruits, on which he combined the correct information of his co-conspirators, including names, dates of birth, and social security numbers, along with false information regarding employment, earnings, and withholdings. LINDSEY directed the filing of at least 40 fraudulent claims resulting in losses of more than $270,000.

These fraudulent tax refunds were loaded onto debit cards issued to some of the defendant’s co- conspirators. They, in turn, provided the debit cards to LINDSEY, who used them at make cash withdrawals from ATMs.

The investigation was conducted by the Minnesota Financial Crimes Task Force, which is comprised of the U.S. Secret Service, the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Internal Revenue Service- Criminal Investigations Division, the Minneapolis Police Department, the St. Paul Police Department, the Edina Police Department, the Duluth Police Department, the Ramsey County Sheriff’s Office, the Mille Lacs County Sheriff’s Office, and the Minnesota Bureau of Criminal Apprehension.

This case was prosecuted by Assistant United States Attorney Lola A. Velazquez-Aguilu.


Defendant Information: CHRISTOPHER LINDSEY, 42
Brooklyn Park, Minn.

Convicted: • Conspiracy to commit bank and wire fraud, 1 count
• Conspiracy to defraud the United States, 1 count
• Aggravated identity theft, 1 count

Sentenced: • 180 months in prison
• 5 years supervised release

 

 

Ayotomide Ajifowobaje filed at least 200 fraudulent tax returns

United States Attorney Andrew M. Luger today announced the indictment of AYOTOMIDE AJIFOWOBAJE, 28, for using the stolen identities of hundreds of victims to file false tax returns throughout the United States. AJIFOWOBAJE is charged with conspiracy to defraud the United States, aggravated identity theft, and wire fraud. The defendant made an initial appearance following the filing of a criminal complaint on February 18, 2015, in United States District Court in St. Paul, Minn.

“This defendant is charged with stealing the identities of more than 200 victims to file false tax returns seeking nearly $2 million in fraudulent tax refunds,” said Assistant U.S. Attorney Michelle E. Jones. “Working with our colleagues at IRS-CI, we will vigorously investigate and prosecute those who victimize others and steal from the public fisc.”

“Today's indictment of Ayotomide Ajifowobaje highlights how seriously IRS Criminal Investigation and the United States Attorney's Office take the issue of identity theft,” said Special Agent in Charge Shea Jones of the St. Paul Field Office IRS Criminal Investigation. “We will continue to investigate those who prey on innocent American taxpayers who steal their identities and file false tax returns. IRS Criminal Investigation is committed to bringing the perpetrators to justice.”

According to the indictment and documents filed in court, between at least May 20, 2014, and February 17, 2015, AJIFOWOBAJE purchased stolen personal identifying information, including names, addresses, dates of birth, and social security numbers, of hundreds of individuals. Using the stolen identities of these victims, the defendant electronically filed tax returns containing false information. For the purpose of collecting the refunds from the IRS, AJIFOWOBAJE purchased debit cards and activated them using the same stolen identities that he used to file false tax returns.

According to the indictment and documents filed in court, in an effort to conceal his identity from law enforcement, AJIFOWOBAJE and his co-conspirators filed some of the false tax returns from hotels using free WiFi.

This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division.

This case is being prosecuted by Assistant U.S. Attorney Michelle E. Jones.


Defendant Information: AYOTOMIDE AJIFOWOBAJE, 28
Bloomington, Minn.

Charges: • Conspiracy to Defraud the United States, 1 count
• Wire Fraud, 18 counts
• Aggravated Identity Theft, 6 counts

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

 

 

United States Attorney Andrew M. Luger today announced the conviction of NANCI MAE DUSSO, 50, who obtained Hydrocodone, Oxycodone, and other prescription drugs by using false names, dates of birth, and social security numbers. DUSSO pleaded guilty to obtaining a controlled substance by fraud and social security fraud. She entered her plea today before Judge Donovan W. Frank in United States District Court in St. Paul, Minn.

“Prescription drug abuse is both a crime and a serious health problem in Minnesota,” said U.S. Attorney Luger. “This defendant deceived doctors and nurses in multiple states in order to obtain these powerful opioids. Working closely with our law enforcement colleagues and health care organizations throughout the region, we are dedicated to preventing the kind of prescription drug diversion seen in this case.”

According to the defendant’s guilty plea and documents filed in court, between January 2013 and November 2013, DUSSO used at least 31 aliases to obtain or attempt to obtain prescription opiates from health care providers at Mayo Clinic satellite locations in Minnesota and Wisconsin. She commonly used out-of-state identities when visiting health care providers, often employed a story in which she complained of shoulder pain, and indicated that she was visiting a family member suffering from cancer. If DUSSO successfully convinced a health care provider to prescribe medication, a physical therapy or pain management appointment would also be arranged for her. However, the defendant did not attend these appointments.

According to DUSSO’s guilty plea and documents filed in court, DUSSO may have obtained more than 6,000 prescription opiates since as early as 2008, and visited more than 150 doctors in at least 11 different health care providers’ offices in Minnesota and Wisconsin. When defrauding these health care providers, DUSSO used stolen social security numbers of people both living and deceased and from numerous states. At different health care appointments, DUSSO listed her address as from Colorado, Utah, Oregon, and Kentucky.

According to the defendant’s guilty plea and documents filed in state court, a nurse practitioner at one Mayo Clinic satellite location became suspicious of DUSSO and reported her to Mayo Security. Mayo Clinic sent a system-wide notice to all employees alerting them of the alleged criminal activity. At least two Mayo Clinic satellite locations subsequently reported DUSSO for attempting to obtain prescription pain pills.

This case is the result of an investigation conducted by the Rochester Police Department, Minnesota Bureau of Criminal Apprehension, Drug Enforcement Administration, and Social Security Administration.

U.S. Attorney Luger thanked the Mayo Clinic, Olmsted Medical Center, Allina Health, HealthEast Care, and Park Nicollet for their assistance in the investigation.

Assistant U.S. Attorney Richard A. Newberry is prosecuting the case.


Defendant Information: NANCI MAE DUSSO, 50
Eyota, Minn.

Convicted: • Obtaining a controlled substance by fraud, 1 count
• Social Security fraud, 1 count

 

 

United States Attorney Andrew M. Luger today announced the conviction of BENJAMIN ONE DEER HART, 28, a member of the Red Lake Band of Chippewa Indians, for stabbing one of his cousins and attempting to stab another cousin on the Red Lake Indian Reservation. On April 7, 2015, following a two-day trial, a federal jury deliberated for only 50 minutes before finding HART guilty of the entire indictment against him, which included two counts of assault with a dangerous weapon and one count of assault resulting in serious bodily injury. A sentencing date has not yet been set.

As proven at trial, on the morning of July 10, 2014, HART got into an argument with three of his cousins and his aunt at the defendant’s father’s house on the Red Lake Indian Reservation. Hart and his family members were arguing that HART should leave the house because he was not welcome there. During the argument, HART refused to leave and pulled a knife from a wooden knife block in the kitchen. While the cousins were trying to disarm him, HART attempted to stab one of his cousins. A second cousin intervened to protect the first and HART stabbed him in the stomach. The victim had to have surgery to repair the stab wound and was hospitalized for several days.

“Violence in Indian Country continues at a more aggressive pace than in other parts of Minnesota,” said Assistant U.S. Attorney Clifford B. Wardlaw. “Aggressively prosecuting these kinds of cases is an important tool for reducing such violence.”

Because the Red Lake Indian Reservation is an exclusive federal criminal jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.

This case resulted from an investigation conducted by the Federal Bureau of Investigation and the Red Lake Tribal Police Department.

The case was prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw


Defendant Information: BENJAMIN ONE DEER HART, 28
Red Lake, Minn.

Convicted: • Assault with a Dangerous Weapon, 2 counts
• Assault Resulting in Serious Bodily Injury, 1 count

 

 

United States Attorney Andrew M. Luger today announced that Medtronic, plc and affiliated Medtronic companies, Medtronic, Inc., Medtronic USA, Inc., and Medtronic Sofamor Danek USA, Inc., have agreed to pay $4.41 million to the United States to resolve allegations that they violated the False Claims Act by making false statements to the United States Department of Veterans Affairs (VA) and the United States Department of Defense (DoD) regarding the country of origin of certain Medtronic products sold to the United States.

“Domestic manufacture is a required component of many military and Veterans Administration contracts,” said U.S. Attorney Luger. “Congress has mandated that the United States use its purchasing power to buy goods made in the United States or in designated countries. We take that mandate seriously and will not hesitate to take appropriate legal action to ensure compliance.”

“Today’s settlement demonstrates our commitment to ensure that our service members and our veterans receive medical products that are manufactured in the United States and other countries that trade fairly with us,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The Justice Department will take action to hold medical device companies to the terms of their government contracts.”

According to the settlement agreement, between 2007 and 2014, Medtronic sold to the VA and DoD products it certified would be made in the United States or other designated countries. The Trade Agreements Act of 1979 (TAA), generally requires companies selling products to the United States to manufacture them in the United States or in a designated country. The United States alleged that Medtronic sold the United States products manufactured in China and Malaysia, prohibited countries under the TAA.

The specific Medtronic products at issue included anchoring sleeves sold with cardiac leads and used to secure the leads to patients, certain instruments and devices used in spine surgeries, and a handheld patient assistant used with a wireless cardiac device. The agreement covers the period from January 1, 2007 to December 31, 2013, and for one device (the handheld patient assistant), the period from January 1, 2014 to September 30, 2014.

The settlement resolves allegations originally brought in a lawsuit filed by three whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and share in any recovery.

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.9 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.

The case was handled by the U.S. Attorney’s Office for the District of Minnesota with assistance from the Justice Department’s Civil Division, the United States Department of Defense, Defense Logistics Agency and Defense Criminal Investigative Service, and the United States Department of Veterans Affairs, Office of General Counsel.

The underlying case is United States of America ex rel. Samuel Adam Cox, III, Meayna Phanthavong, and Sonia Adams v. Medtronic, Inc., Medtronic USA, Inc., and Medtronic Sofamor Danek USA, Inc., Civil No. 12-cv-2562 (PAM/JSM).

Final Medtronic Agreement

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

United States Attorney Andrew M. Luger today announced a criminal complaint charging SEAN PENONCELLO, 41, with production of child pornography.1 PENONCELLO was ordered detained pending trial after a hearing today before Magistrate Judge Brisbois in United States District Court in Duluth, Minn.

According to the complaint and documents filed in court, on April 3, 2014, in an unrelated investigation, thousands of images and hundreds of videos depicting child pornography were recovered from two computers at the home of an unrelated defendant in Dayton, Ohio. The images and videos were submitted to the National Center for Missing and Exploited Children (NCMEC) which, in a subsequent report, identified three nude images of an unidentified minor. The NCMEC assigned a name to this series of images for identification in future cases.

According to the complaint and documents filed in court, the photos from this named series were taken on or around September 15, 2012, at a residential address belonging to PENONCELLO. Several images were discovered on PENONCELLO’s iPhone, which included images and videos of a couch that appeared to be an exact match to the couch in the named series depicting the unidentified minor.

According to the complaint and documents filed in court, two minor children and a parent visited PENONCELLO several times at his home, located in a rural area near Cherry, Minn. On September 15, 2012, during a visit to PENONCELLO’S house, the two children were left alone at the house with PENONCELLO. One of those children is the subject of the named NCMEC series referenced above. PANONCELLO is alleged to have taken the sexually explicit photographs.

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 is the result of an investigation conducted by the Federal Bureau of Investigation and the St. Louis County Sheriff’s Office.

This case is being prosecuted by Assistant U.S. Attorney Katharine T. Buzicky.

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.


Defendant Information: SEAN PENONCELLO, 41
Iron, Minn.

Charges: • Production of child pornography, 1 count

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

 

 

United States Attorney Andrew M. Luger and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division today announced the indictment of a Minnesota National Guardsman for inducing a 14 year-old girl to send him nude photos over the Internet while he was deployed to Afghanistan. ANDREW SCHILLER, 28, of Lakeville, Minnesota, is charged with one count of production of child pornography. SCHILLER was ordered detained pending trial today by U.S. Magistrate Judge Becky R. Thorson of the District of Minnesota.

According to the indictment and the government’s request for pretrial detention, between September 23, 2013, and January 12, 2014, SCHILLER contacted a 14 year-old girl from Minnesota via Skype. During repeated communications with the girl, SCHILLER allegedly requested that she send sexually explicit photos of herself to him. The victim allegedly sent several images in response to SCHILLER’s requests, including at least one sexually explicit image.

According to additional allegations in the government’s request for pretrial detention, SCHILLER used various social media platforms to communicate online with dozens of girls between the ages of 13 and 17. Among those platforms were MyLOL (“funinlife”), Skype (“thriller_a_schiller3”), Meet Me (“mnfuntimes”) and Facebook. SCHILLER also allegedly used KIK, an instant messaging application for mobile devices that allows users to share photographs and other content. After establishing online contact with the girls, SCHILLER allegedly directed the conversation to sexual topics and attempted to convince the girls to send sexually explicit videos or images of themselves to him. SCHILLER allegedly shared sexually explicit images of himself to encourage the girls to send photographs and videos of themselves, and he sometimes promised money or alcohol in exchange for sexually explicit images or live video chats.

Anyone with additional information about this case can call the FBI Minneapolis Field Office at 763-569-8000. 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 is the result of an investigation conducted by the Army Criminal Investigative Division and the FBI.

This case is being prosecuted by Assistant U.S. Attorney Katherine T. Buzicky of the District of Minnesota and Trial Attorney Jeffrey H. Zeeman of the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section.

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.


Defendant Information: ANDREW SCHILLER, 28
Lakeville, Minn.

Charges: • Production of child pornography, 1 count

The charges contained in the indictment and the allegations contained in the government’s request for pretrial detention are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

 

 

United States Attorney Andrew M. Luger today announced the guilty pleas of MING GUO, 46, owner of two Twin Cities restaurants, both named Hibachi Grill and Supreme Buffet, and BIJIAN WENG, a/k/a “Wilson,” 28, manager of the restaurants, for employing unlawful aliens. GUO and WENG were charged on January 26, 2015, with one count each of Knowingly Hiring Ten or More Unlawful Aliens. GUO and WENG appeared earlier today in U.S. District Court in St. Paul, Minn.

“Undocumented workers are vulnerable to exploitation,” said Assistant U.S. Attorney Laura Provinzino. “Those who intentionally employ undocumented immigrants allow for these workers to be taken advantage of. Disrupting labor trafficking and punishing those who don’t follow the law is critical to ensure the safety of both legal and unauthorized workers.”

“The guilty pleas today should send a strong message to the Minnesota business community – companies that knowingly employ unauthorized aliens subject themselves to investigation and they will be punished accordingly.” said Special Agent in Charge J. Michael Netherland, of HSI St. Paul. “Our goal is to protect job opportunities for the nation’s legal workers and to level the playing field for those businesses that play by the rules.”

According to the defendants’ guilty plea and documents filed in court, from September 30, 2013 through September 30, 2014, GUO and WENG knowingly hired and employed at least 17 individuals who were not authorized to be employed or lawfully admitted for permanent residence in the United States. On September 30, 2014, HSI agents executed search warrants at the restaurants in Spring Lake Park and West St. Paul, Minnesota. They identified 17 undocumented workers working in the restaurants.

According to the defendants’ guilty plea and documents filed in court, GUO and WENG were aware that the employees were not authorized to work in the United States. Moreover, the defendants did not ask the employees to fill out paperwork, including I-9 Employment Eligibility Verification forms. GUO and WENG also failed to report the unauthorized workers to the Minnesota Department of Economic Development. The employees were paid in cash “off the books.”

This case is the result of an investigation conducted by Homeland Security Investigations.

Assistant U.S. Attorneys Julie E. Allyn and Laura M. Provinzino are prosecuting this case.


Defendant Information: MING GUO, 46
North Miami Beach, Fla.

Convicted: • Knowingly Hiring Ten or More Unlawful Aliens, 1 count

BIJIAN WENG, 28
Spring Lake Park, Minn.

Convicted: • Knowingly Hiring Ten or More Unlawful Aliens, 1 count

 

 

United States Attorney Andrew M. Luger today announced a settlement agreement between the United States, the Greenbrier Village Homeowner’s Association, Inc. (Greenbrier), and Gassen Company, Inc. (Gassen) and an individual Gassen employee to resolve a lawsuit filed on November 25, 2013. The lawsuit alleged that Greenbrier and Gassen unlawfully discriminated against residents with children by issuing and enforcing rules regarding the use of common areas at the Condominiums of Greenbrier Village. The settlement includes a commitment from Greenbrier to establish a new non-discrimination policy in accordance with the Fair Housing Act, pay a $10,000 penalty to the United States and pay $100,000 to six families that suffered as a result of the discrimination.

“Housing discrimination has no place in Minnesota,” said United States Attorney Andrew M. Luger. “This case reaffirms the long-held principle of our civil rights laws that families come in all shapes and sizes. Arbitrary rules that restrict the rights of children to enjoy the places where they live are not acceptable.”

“The Fair Housing Act prohibits housing providers from discriminating against families with children. This means more than just allowing those families to live at the property. It means giving these families fair access to the common areas and amenities,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division.

“Families with children have the right to live in condos that don’t meet federal requirements to qualify as housing for older persons,” said Gustavo Velasquez, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “HUD is sending a clear message to homeowners associations and management companies that they must comply with the Fair Housing Act.”

According to the settlement agreement and documents filed in court, Greenbrier and Gassen allegedly engaged in a pattern of discrimination by creating and enforcing rules in a manner that prevented children from equal enjoyment of common areas and making statements that indicated a preference against families with children. The United States alleged that the defendants required children to be supervised at all times when in a common area, prohibited or unreasonably restricted children from using the common areas and selectively enforced the common area rules by issuing warnings and violation notices to residents with children, but not to adult residents engaging in the same activities.

According to the settlement agreement, at least six families suffered as a result of Greenbrier and Gassen’s alleged discrimination. Greenbrier agreed to a financial settlement with each of the families, totaling $100,000. Greenbrier will also adopt and implement a new anti-discrimination policy, its board members and staff will undergo training on the Fair Housing Act, with a specific emphasis on discrimination on the basis of familial status, and Greenbrier will pay a civil penalty to the United States.

Assistant U.S. Attorneys Bahram Samie and Ana Voss and attorneys from the Department of Justice Civil Rights Division handled this matter for the United States.

U.S. Attorney Luger thanked the Office of Fair Housing and Equal Opportunity at the United States Department of Housing and Urban Development for assisting in the investigation.

Greenbrier Consent Order

 

 

Drugs manufactured by owner of “Smokes 4 Less” smoke shops

United States Attorney Andrew M. Luger today announced an indictment charging OMAR ZIAD WAZWAZ, 33, and four others with conspiring to distribute synthetic cannabinoids. The defendants are charged with conspiracy to distribute and possession with intent to distribute controlled substance analogues, conspiracy to commit offenses against the United States, and conspiracy to commit money laundering. WAZWAZ is additionally charged with conspiracy to distribute controlled substances. The defendants are making initial appearances in U.S. District Court in St. Paul, Minn.

“Synthetic and designer drugs are both illegal and dangerous,” said U.S. Attorney Luger. “As alleged, these defendants created a criminal enterprise they believed would stay one step ahead of synthetic drug laws. It didn’t, and today they stand charged with conspiracy to sell illegal cannabinoids throughout Minnesota. The investigators who brought down this conspiracy are tireless, and this indictment should give pause to anyone who thinks they can get away with selling drugs by another name.”

According to the indictment and documents filed in court, beginning in approximately January 2010, OMAR ZIAD WAZWAZ owned and operated several smoke shops throughout Minnesota, including “Smokes 4 Less” in Mankato. WAZWAZ sold smokable synthetic cannabinoids (SSCs) in his smoke shops. Beginning in 2011, WAZWAZ began to manufacture his own brand of SSC called, “Kyptonite.” He branded the SSCs sold in his stores with such names as “Kush,” “Tiger’s Blood,” “Grape,” “Kronik,” “Man of Steel,” “Pine-apple,” “Juicy Fruit,” “Kottonmouf King,” “Tropic Thunder,” “Rain of Fire,” “O-Zone,” and others. Through the manufacture and sale of SSCs, WAZWAZ earned millions of dollars.

According to the indictment and documents filed in court, TALEB AWAD, VLADIMIR BRIK, STEVEN LYKE, and DANIEL LYKE conspired with WAZWAZ to manufacture and sell SSCs. The defendants manufactured SSCs by combining synthetic cannabinoids such as “AM-2201,” “UR-144,” and “XLR-11,” with leafy plant material like damiana or marshmallow leaves. The synthetic cannabinoids, which are often sold in powder form, were liquefied with the use of a solvent like acetone or grain alcohol so that the chemicals could be sprayed onto the leafy plant material. This manufacturing process allows users to ingest the drug in the same manner as one would ingest marijuana. WAZWAZ instructed employees of “Smoke 4 Less” to smoke SSCs and report back to him on the effects so that he could adjust the formula as needed.

According to the indictment and documents filed in court, BRIK, WAZWAZ and other co- conspirators also imported synthetic cannabinoids from China. On or about April 5, 2011, BRIK sent a wire transfer of $110,000 to a bank in the country of Liechtenstein to pay for an order of approximately 20 kilograms of synthetic cannabinoid that BRIK requested be sent to WAZWAZ’S store in Mankato, Minn.

The indictment is the result of an investigation conducted by the Minnesota River Valley Drug Task Force, Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation Division, Homeland Security Investigations, U.S. Food and Drug Administration, and U.S. Customs and Border Protection.

This case is being prosecuted by Assistant U.S. Attorney Surya Saxena.


Defendant Information: OMAR ZIAD WAZWAZ, 33
New Brighton, Minn.

Charges: • Conspiracy to Distribute and Possession with Intent to Distribute Controlled Substance Analogues, 1 count
• Conspiracy to Distribute Controlled Substances, 1 count
• Conspiracy to Commit Offenses against the United States: Misbranded Drugs, 1 count
• Money Laundering Conspiracy, 1 count

VLADIMIR VLADIMIROVIC BRIK, 25
Duluth, Minn.

Charges: • Conspiracy to Distribute and Possession with Intent to Distribute Controlled Substance Analogues, 1 count
• Conspiracy to Commit Offenses against the United States: Misbranded Drugs, 1 count
• Money Laundering Conspiracy, 1 count

TALEB JAMAL AWAD, 32
Unknown

Charges: • Conspiracy to Distribute and Possession with Intent to Distribute Controlled Substance Analogues, 1 count
• Conspiracy to Commit Offenses against the United States: Misbranded Drugs, 1 count
• Money Laundering Conspiracy, 1 count

STEVEN JAU LYKE, 25
Brookston, Minn.

Charges: • Conspiracy to Distribute and Possession with Intent to Distribute Controlled Substance Analogues, 1 count
• Conspiracy to Commit Offenses against the United States: Misbranded Drugs, 1 count
• Money Laundering Conspiracy, 1 count

DANIEL LEE LYKE, 26
Brookston, Minn.

Charges: • Conspiracy to Distribute and Possession with Intent to Distribute Controlled Substance Analogues, 1 count
• Conspiracy to Commit Offenses against the United States: Misbranded Drugs, 1 count

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

 

 

Lance Plunske will begin serving his federal sentence after a state sentence of 144 months in prison

United States Attorney Andrew M. Luger today announced the sentencing of LANCE DEAN PLUNSKE, 57, to 188 months in federal prison for production of child pornography. PLUNSKE was indicted on July 14, 2014, and pleaded guilty on November 1, 2014, to one count of Production of Child Pornography. The defendant was sentenced today before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn.

According to the defendant’s guilty plea and documents filed in court, between August 2008 and January 7, 2009, PLUNSKE knowingly persuaded and coerced a 15-year-old girl to pose nude while he took digital photos focused on the victim’s genitals, and produced visual depictions of sexually explicit conduct involving the victim.

PLUNSKE was convicted in 2009 in Traverse County, Minn., of First Degree Criminal Sexual Conduct. He was sentenced to serve 144 months in state prison. After PLUNSKE’S conviction in Traverse County, the United States Attorney’s Office investigated and prosecuted the defendant for the production of child pornography, which led to the conviction in this case.

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 United States Attorneys’ Offices and the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.projectsafechildhood.gov.

This case resulted from an investigation conducted by the Federal Bureau of Investigation and the Traverse County Sheriff’s Office.

The case was prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.


Defendant Information: LANCE DEAN PLUNSKE, 57
Moose Lake, Minn.

Convicted: • Production of Child Pornography, 1 count

Sentenced: • 188 months in prison
• 15 years supervised release

 

 

Spack previously convicted of eight felonies in Minnesota

United States Attorney Andrew M. Luger today announced the sentencing of TOMMY MICHAEL SPACK, 32, to eight years in prison for illegally possessing a firearm after having been previously convicted of multiple felonies in both Ramsey and Washington Counties. SPACK was indicted on February 3, 2014. The defendant pleaded guilty on May 8, 2014, and was sentenced today before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn.

“Reducing violent crime in Minnesota means keeping guns out of the hands of felons,” said U.S. Attorney Luger. “This defendant had eight felony convictions and knew he was forbidden from possessing firearms. He is now paying the price for repeatedly flaunting the law.”

According to the defendant’s guilty plea and documents filed in court, on December 14, 2013, SPACK was driving a car when St. Paul Police Officers pulled him over at the intersection of Van Dyke Street and Stillwater Avenue East, in St. Paul, Minn. Officers searched the vehicle and recovered a Charter Arms Police Undercover .38 special revolver and a small bag containing methamphetamine.

According to his guilty plea and documents filed in court, SPACK later admitted that both the gun and drugs were his. Based on his criminal history, including convictions for eight felonies prior to December 14, 2013, it was illegal for SPACK to possess a firearm. SPACK’S criminal history includes convictions in Ramsey County for terroristic threats, receiving stolen property, attempted burglary, theft, and possession of illegal drugs. SPACK was previously convicted in Washington County for burglary and receiving stolen property.

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

Assistant U.S. Attorney Surya Saxena prosecuted the case.


Defendant Information: TOMMY MICHAEL SPACK, 32
St. Paul, Minn.

Convicted: • Felon in Possession of a Firearm, 1 count

Sentenced: • Eight years in prison
• Three years supervised release

 

 

Roxanne Merrell promised $100,000 to send obscene photos of young girl

United States Attorney Andrew M. Luger today announced the conviction of ROXANNE MERRELL, 35, for making pornographic images of a pre-pubescent girl. MERRELL was convicted by a jury of the entire indictment against her after a three-day trial before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minn. A sentencing date has not yet been set.

As proven at trial, Travis Guenthner of Washburn, North Dakota, who was convicted in May 2014 in the District of North Dakota of multiple counts of production of child pornography and other child exploitation offenses, knew ROXANNE MERRELL. Guenthner offered MERRELL $100,000 to take pornographic photos of a young girl, which MERRELL took while the child was sleeping. Other pictures of the child’s naked buttocks and clothed pubic area were also discovered on Guenthner’s computer. The photographs, some of which included an image of an adult hand, were later discovered on Guenthner’s computer. The adult hand appearing in the photos belonged to MERRELL.

“HSI is committed to aggressively pursuing those individuals who trade in child pornography,” said HSI St. Paul Special Agent in Charge J. Michael Netherland. "It is our job to do everything that we can to protect the most vulnerable members of our society.”

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 United States Attorneys’ Offices and the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.projectsafechildhood.gov

This case is the result of an investigation conducted by Homeland Security Investigations (HSI) and the Cottage Grove Police Department.

Assistant U.S. Attorneys Katharine T. Buzicky and Sarah E. Hudleston are prosecuting the case.


Defendant Information: ROXANNE MERRELL, 35
Cottage Grove, Minn.

Convicted: • Production of Child Pornography, 2 counts

 

 

United States Attorney Andrew M. Luger today announced the guilty pleas of RICHARD J. SCHMIDT, 42, and MATTHEW KLEMMER, 47, for conspiring to prepare and file false individual income tax returns in order to obtain fraudulent income tax refunds. Both defendants were indicted on October 15, 2014. SCHMIDT pleaded guilty on December 17, 2014 before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minn. On March 9, 2015, KLEMMER also entered his guilty plea before Judge Doty.

“Filing false tax returns and using stolen identities is a serious crime that hurts innocent taxpayers,” stated Special Agent in Charge Shea Jones of the IRS Criminal Investigation St. Paul Field Office. “IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by preparing false claims for refunds.”

According to the defendants’ guilty pleas and documents filed in court, from approximately January 2011 to April 2011, SCHMIDT and KLEMMER received refunds from income tax returns reporting false or inflated income, false employment, and other false items. Stolen personal identifying information, including names and social security numbers, was used to create the fraudulent tax returns, which included false or inflated withholding information. As part of the conspiracy, the defendants requested the tax refunds be deposited onto debit cards, allowing them immediate access to the cash. The defendants filed more than 30 fraudulent tax returns and received more than $100,000 in refunds.

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

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


Defendant Information: RICHARD J. SCHMIDT, 42
Landfall, MN

Convicted: • Conspiracy to Defraud the United States, 1 count

MATTHEW KLEMMER, 47
St. Paul, Minn.

Convicted: • Conspiracy to Defraud the United States, 1 count

 

 

Angela Carter Purchased Two Handguns and Knowingly Lied on ATF Forms

United States Attorney Andrew M. Luger today announced the sentencing of ANGELA CARTER, 33, to 30 months in federal prison for acting as a straw purchaser of two handguns. CARTER was indicted on May 12, 2014, and pleaded guilty on July 28, 2014, to one count of Causing a False Statement to be Maintained in the Records of a Federal Firearms Licensee. The defendant was sentenced on March 10, 2015, before Judge John R. Tunheim in U.S. District Court in Minneapolis, Minn.

According to the defendant’s guilty plea, documents filed in court and statements made on the record in court, on January 21, 2014, Carter bought a Ruger 9mm semi-automatic pistol for $355 from Bill’s Gun Shop in Robbinsdale, Minn. On February 7, 2014, Carter again went to Bill’s Gun Shop and bought a Glock .40 caliber semi-automatic pistol, a 15 round magazine, and 2 boxes of ammunition for $740. When purchasing both handguns, Carter listed an incorrect address on the Bureau of Alcohol, Tobacco, Firearms, and Explosives Form 4473. Carter had moved from that address several months earlier.

According to the defendant’s guilty plea, documents filed in court and statements made on the record in court, both guns, which were fully loaded, were seized on February 10, 2014, during a traffic stop of Carter’s car. At the time, police also seized a Glock 9mm semi-automatic pistol with a fully loaded 33 road magazine. Carter purchased both guns to give to a co-defendant, Keniko Bland, who was prohibited by law from possessing firearms because he had pending charges in Hennepin County for Terroristic Threats. Bland was previously sentenced on December 18, 2014, to 57 months in custody.

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

This case was prosecuted by Assistant U.S. Attorney Carol Kayser.


Defendant Information: ANGELA CARTER, 33
Minneapolis, Minn.

Convicted: • Causing a False Statement to be Maintained in the Records of a Federal Firearms Licensee, 1 count

Sentenced: • 30 months in prison
• 3 years supervised release

 

 

United States Attorney Andrew M. Luger announced the sentencing of ROBERT DAVID BOEDIGHEIMER, 52, to five years in prison. BOEDIGHEIMER was convicted by a jury on June 17, 2014, after a 12-day trial, of using his law firm to launder drug money, lying to investigators, and encouraging his brother-in-law to also lie to federal investigators. The defendant was sentenced on March 9, 2015, before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn.

“Lawyers are officers of the court,” said Assistant United States Attorney Steven L. Schleicher. “This sentence is a step toward restoring trust in the legal profession by assuring the public that nobody gets special treatment because of their profession. Those who are sworn to uphold the law will be held accountable if they violate it. This case is the result of the hard work and dedication of the agents who worked tirelessly to see justice done.”

As proven at trial, BOEDIGHEIMER had his own personal injury practice since 1995. The law firm and the defendant began to experience financial problems in 2006. The defendant fell behind on several loans, bills, and taxes, and also had difficulty meeting payroll obligations for his law firm. In addition to the financial problems at the firm, the defendant spent lavishly on himself, frequent gambling and expensive travel. He also lived in a high-end home near a golf course in Stillwater, Minn.

As proven at trial, BOEDIGHEIMER’S brother-in-law, Brandon Lusk, was a distributor of high- end marijuana in and around Rochester, Minn. The defendant approached Lusk for a cash loan so that he could maintain his lifestyle. Lusk agreed to provide many loans to BOEDIGHEIMER, on the condition that the defendant repay the loans, plus interest, in checks issued from BOEDIGHEIMER’S law firm. Ultimately, BOEDIGHEIMER created a “no-show” job for Lusk at the law firm, which paid Lusk $48,000 per year. The defendant provided a box of business cards to Lusk listing him as an “investigator” for the firm.

As proven at trial, Lusk’s no-show job was entirely paid for through drug proceeds that Lusk funneled to BOEDIGHEIMER, and which the defendant laundered through his law firm. Between March 26, 2010 and January 28, 2011, nine payroll cash advances were provided to the defendant by Lusk, ranging from $5,000 to $10,000 each, and totaling approximately $55,000. In exchange, Lusk received payroll checks from the law firm. In March 2011, Lusk lost his source of income as a marijuana distributor when Richard Kay, who was Lusk’s supplier, discovered that he was under investigation. Lusk and a marijuana distribution associate approached the defendant for help in obtaining legal representation. Lusk was eventually interviewed by the US Attorney’s office, before which BOEDIGHEIMER advised Lusk not to tell investigators about the money laundering arrangement between the two of them. Lusk then withheld information from investigators about his employment and the disposition of the drug proceeds. Lusk was ultimately sentenced to 30 months imprisonment for distribution of marijuana and money laundering.

This case is the result of an investigation by the Internal Revenue Service – Criminal Investigation Division, Minnesota Bureau of Criminal Apprehension, Drug Enforcement Administration, Southeast Minnesota Narcotics & Gang Task Force, and Wabasha County Sheriff’s Office.

This case was prosecuted by Assistant U.S. Attorneys Julie E. Allyn and Steven L. Schleicher.


Defendant Information: ROBERT DAVID BOEDIGHEIMER, 52
Stillwater, Minn.

Convicted: • Money Laundering Conspiracy, 1 count
• Money Laundering, 1 count
• False Statement, 1 count

Sentenced: • Five years in prison
• Three years supervised release

 

 

Eight defendants pleaded guilty this week

United States Attorney Andrew M. Luger today announced that 20 defendants charged in a conspiracy to traffic stolen cellular phones and other electronic devices have pleaded guilty. The Mustafa Organization, a Twin Cities-based criminal organization, was indicted for trafficking stolen and fraudulently obtained mobile telephones and tablets. Twenty of the 21 defendants have now entered guilty pleas before Judge John R. Tunheim in U.S. District Court in Minneapolis, Minn. The final two of those defendants, MILES and AL HUSSAINAWEE pleaded guilty late yesterday afternoon. A sentencing date has not been set for MILES and AL HUSSAINAWEE.

According to the defendants’ guilty pleas and documents filed in court, from at least 2006 through 2014, members of the Mustafa family and their associates used stolen identity information and other criminal means to obtain at least $20 million worth of cellular telephones and other mobile devices for the purpose of trafficking them throughout the United States and overseas. The six Mustafa brothers owned and operated 13 mobile device stores in the Twin Cities metropolitan area, which were used to buy illegally obtained mobile devices. Members of the Mustafa Organization paid runners to steal mobile devices or obtain them fraudulently using stolen identification documents. They re-sold the stolen phones and tablets for substantial profits that were then distributed among themselves and used to pay for rent, utilities, payroll and other expenses to keep their stores in business and promote the unlawful activity.

According to the defendants’ guilty pleas and documents filed in court, members of the Mustafa Organization also falsified loan applications and provided false documentation to get loans for vehicles that they used to transport stolen devices and the proceeds of their criminal activity. The members of the Mustafa Organization also made fraudulent credit card transactions to steal from credit card processing companies and used the proceeds to buy more cell phones, and to pay operating expenses for the wireless stores and for personal use.

Assistant U.S. Attorneys Steven Schleicher, John Marti, and Karen Schommer are handling the prosecution of this case.

This case is the result of an investigation conducted by the St. Paul Police Department, United States Secret Service, University of Minnesota Police Department, Minnesota Department of Public Safety and Bureau of Criminal Apprehension, Minnesota Financial Crimes Task Force, United States Postal Inspection Service, Internal Revenue Service Criminal Investigations, Homeland Security Investigations, Edina Police Department, Minneapolis Police Department, Plymouth Police Department, Federal Bureau of Investigation, and the United States Marshal’s Service.


Defendant Information: JAMAL TALAL MUSTAFA, a/k/a “Jimmy,” 42
Apple Valley, Minn.

Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
• Conspiracy to Defraud the Government With Respect to Claims, 1 count

NASER MOHAMAD MUSTAFA, a/k/a “Nasty Nas,” 24
Rosemount, Minn.

Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count

EDWAN T MUSTAFA, a/k/a “Eddy,” 40
Apple Valley, Minn.

Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
• False, Fictitious, or Fraudulent Claims, 1 count

NIZER M MUSTAFA, a/k/a “Shaggy,” a/k/a “Mike,” 36
Savage, Minn.

Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
• Conspiracy to Defraud the Government With Respect to Claims, 1 count

BILAL MUHAMMED MUSTAFA, a/k/a “Billy,” 30
Minneapolis, Minn.

Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
• False, Fictitious, or Fraudulent Claims, 1 count

TALAL M MUSTAFA, a/k/a “Tommy,” 43
Burnsville, Minn.

Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods and Access Device Fraud, 1 count
• False, Fictitious, or Fraudulent Claims, 1 count

MOISES NAVARRO CAZALES, 22
Bloomington, Minn.

Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
• False, Fictitious, or Fraudulent Claims, 1 count

AHMED RD SUNOQROT, a/k/a “Abu Hasan,” 59
St. Paul, Minn.

Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count

CEDRIC CHAPPELL, 44
Minneapolis, Minn.

Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count

DEANTRE RICKEY-RENE SQUALLS, 24
Brooklyn Center, Minn.

Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
• Felon in Possession of a Firearm, 2 counts

BLANYON TOE DAVIES, 21
Unknown

Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count

VICTOR TOMBEKAI DOE, 24
Unknown

Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count

YOLANDA COOMBS, 28
Oakdale, Minn.

Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count

CASWANA MILES, 26
Unknown

Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count

TIARA LIGON
St. Paul, Minn.

Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count

MARQUIS TERELL MAGGIESFIELD, a/k/a “Kenny,” 28
Unknown

Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count

MARCUS PHILLIP COLEMAN, 23
St. Paul, Minn.

Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count

ROBERT RICHARD COLEMAN, 30
St. Paul, Minn.

Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count

DANIELLE YVONNE COLEMAN, 29
St. Paul, Minn.

Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count

ABBAS ATEAIA AL HUSSAINAWEE, 41
Minneapolis, Minn.

Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods and Device Fraud, 1 count
• Possession with Intent to Distribute 50 Grams or More of a Mixture or Substance Containing Methamphetamine, 1 count

 

 

United States Attorney Andrew M. Luger, Minneapolis Police Chief Janeé Harteau and FBI Special Agent in Charge Richard Thornton today announced a federal indictment charging seven members of the Taliban gang and the Young N Thuggin (YNT) gang with conspiring to distribute crack cocaine in the Twin Cities and Greater Minnesota.1 The defendants include both leaders and other members of the two gangs. They are charged with conspiracy to distribute cocaine base (crack) and distribution of crack.

“Late last year we indicted more than a dozen members of two violent Minneapolis gangs, the 19-Dipset and Stick Up Boys,” said U.S. Attorney Luger. “We are today announcing a new indictment of their main rivals. Leaders and members of the Taliban and YNT are charged with using violence and intimidation to control a drug distribution operation stretching from Minneapolis to Fargo. Working closely with our law enforcement partners, we are continuing to investigate and stop drug dealers and the violence that too often accompanies their illegal activity.”

Minneapolis Police Chief Janeé Harteau said: “Today we see the results of a long term investigation into a violent street gang that has plagued the streets of Minneapolis for too long. As a result of our collaborative partnerships with our state and federal partners, several members of that gang are facing federal indictments for their long history of criminal activity. Today we say thank you to all of our partners for helping to make Minneapolis a safer city.”

"The FBI remains committed to combating gang violence and in keeping our streets safe,” said FBI Special Agent in Charge Richard Thornton. “Keeping citizens free from the specter of gang violence is a priority for the FBI and its local partners which comprise the Minnesota Safe Streets Task Force. The FBI and its partners in the Minnesota Safe Streets Task Force will continue to collaborate in targeting the worst offenders when it comes to gang violence in Minnesota."

Minnesota Bureau of Criminal Apprehension Superintendent Wade Setter said: “The BCA is committed to supporting multi-agency operations such as this. Today's events come as a result of our successful collaboration.”

According to the indictment and documents filed in court, between January and December 2014, the defendants were organizers and members of two closely associated street gangs, the Taliban and the YNT. Some of the indicted co-conspirators had more influence in the gang, based on their seniority and criminal activity. The gang members use hand gestures, social media, and specific language to communicate amongst each other and to convey membership. They claim an area of north Minneapolis as their territory, and other north Minneapolis gangs, including the 19- Dipset and Stick Up Boys, as enemies.

According to the indictment and documents filed in court, the Taliban and YNT are organized for the purpose of making money by trafficking in illegal drugs, among other criminal activity. Members of the Taliban and YNT frequently travel to St. Cloud and Duluth, Minnesota, and to Fargo, North Dakota, to sell crack. Crack that the Taliban and YNT could sell in Minneapolis for $20 could be sold for $50 in Greater Minnesota and in North Dakota. Similarly, an amount of crack cocaine sold for $150 in the Metro area would sell for between $220 and $250 in Greater Minnesota.

According to the indictment and documents filed in court, some of the members of the gang carry guns to protect themselves and their money while trafficking crack cocaine. They also use guns to both protect against attacks by rival gangs and to retaliate violently to threats or assaults by their rivals. Their use of weapons is intended to gain street supremacy and further the gang’s ability to sell illegal drugs.

The indictment is the result of an investigation conducted by the Safe Streets Task Force, which is comprised of federal and local law enforcement agencies, including, but not limited to, the FBI, Minneapolis Police Department, Minnesota Bureau of Criminal Apprehension and St. Paul Police Department. The St. Cloud Violent Crimes Task Force and the St. Cloud Police Department were a critical part of this investigation.

This case is being prosecuted by Assistant U.S. Attorney David Steinkamp.


Defendant Information: LOUIS LEE FRASIER BANKS, a/k/a “G.I.,” 25
Anoka County Jail

Charges: • Conspiracy to Distribute Crack Cocaine, 1 count
• Distribution of Cocaine Base, 10 counts
• Possession with Intent to Distribute Cocaine Base, 1 count
• Possession of a Firearm During and in Relation to a Drug Trafficking Crime, 1 count
• Felon in Possession of a Firearm, 1 count

CARNEL LAVEL HARRISON, a/k/a “Boo Man,” 26
Unknown

Charges: • Conspiracy to Distribute Crack Cocaine, 1 count
• Distribution of Cocaine Base, 4 counts
• Felon in Possession of a Firearm, 2 counts
• Distribution of Heroin, 1 count

DEJUAN PIERRE DARKYSE WASHINGTON, a/k/a “DJ,” 23
Unknown

Charges: • Conspiracy to Distribute Crack Cocaine, 1 count
• Distribution of Cocaine Base, 3 counts
• Felon in Possession of a Firearm, 1 count

TERRELL VONSHAY ROBERSON, a/k/a “Get Right,” a/k/a “Slim,” 18
Unknown

Charges: • Conspiracy to Distribute Crack Cocaine, 1 count
• Distribution of Cocaine Base, 5 counts
• Distribution of Heroin, 1 count

LAQUEDRICK LEMEL AS-SIDIQ, a/k/a “Quady,” a/k/a “C,” 25
Unknown

Charges: • Conspiracy to Distribute Crack Cocaine, 1 count
• Distribution of Cocaine Base, 4 counts

DONTE TRAMAYNE SMITH, a/k/a “Five,” 25
Unknown

Charges: • Conspiracy to Distribute Crack Cocaine, 1 count
• Distribution of Cocaine Base, 4 counts

CORTEZ DAVON BLAKEMORE, a/k/a “Tez,” 24
Minneapolis, Minn.

Charges: • Felon in Possession of a Firearm, 1 count

Taliban-YNT Indictment

 

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

United States Attorney Andrew M. Luger today announced the sentencing of JEFFERY JOHN PLZAK, 52, to 22 months in federal prison for felony false statements in connection with prevailing wage violations. PLZAK pleaded guilty on July 8, 2014, to one count of False Statements and was sentenced on March 3, 2015, before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minn.

In addition to the 22-month prison sentence, PLZAK was ordered to pay over $240,000 in restitution, pay a fine, and was placed on one-year of supervised release to follow the prison term. In sentencing PLZAK, Judge Schiltz emphasized the impact of PLZAK’S crime on his employees and on PLZAK’S competitors and their employees, as well as the need to deter similar offenses by PLZAK and others in the future.

According to the defendant's guilty plea and documents filed in court, PLZAK and his spouse run Honda Electric, Inc., a company based in Loretto, Minnesota. Honda Electric bids on construction projects, including highway and road projects, that are federally and state funded. Many of the projects PLZAK bid on required that Honda Electric pay its electricians and other laborers the prevailing wage rate.

On numerous occasions, PLZAK won bids based in part on the representation that Honda Electric employees working on each project would receive the prevailing wage. Those projects required periodic submission by Honda Electric of a certified payroll report. In those reports, PLZAK knew Honda Electric, at his direction, was representing to the United States Department of Transportation – Federal Highway Administration and to the Minnesota Department of Transportation that Honda Electric’s employees were being paid the required prevailing wage.

In fact, as PLZAK knew, in many instances employees were being paid less than half of the prevailing wage rate. For example, PLZAK admitted that in a certified payroll report dated September 24, 2010, Honda Electric stated it was paying prevailing wage on a federally funded project in Ramsey County, Minnesota, when, in fact, he knew the employees were receiving far less than prevailing wage. In total, PLZAK admitted that over a series of projects between 2010 and 2013, Honda Electric underpaid its employees over $241,000.

This case is the result of an investigation by the Minnesota Department of Transportation’s Labor Compliance Unit and the Federal Bureau of Investigation.

Assistant U.S. Attorney David M. Genrich prosecuted the case.


Defendant Information: JEFFERY JOHN PLZAK, 52
Loretto, Minn.

Convicted: • False Statements, 1 count

Sentenced: • 22 months in prison
• $241,000 in restitution
• 1 year supervised release

 

 

United States Attorney Andrew M. Luger today announced the guilty plea of CINDY LEE LINEBAUGH, 48, to one count of False, Fictitious and Fraudulent Claims. LINEBAUGH was indicted on September 24, 2014, and pleaded guilty on February 24, 2015, before U.S. District Judge Susan Richard Nelson in St. Paul, Minn.

According to the defendant’s guilty plea, in February 2010, LINEBAUGH began a tax fraud scheme in which she knowingly prepared and filed false tax returns on behalf of herself and others. LINEBAUGH used fraudulent W-2s which falsely claimed that the individuals were employed by and earned wages from employers such as Northwest Airlines and the City of St. Paul.

According to court documents, during calendar years 2010 and 2011, LINEBAUGH prepared and filed approximately 73 false returns for tax years 2009 and 2010 using online tax- preparation software. The refunds were loaded onto a debit card and sent by the IRS directly to the individuals. LINEBAUGH charged individuals anywhere from $100 to $300 for her tax- preparation services. The total amount of the tax loss for all returns was approximately $287,561.

This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division.

This case is being prosecuted by Assistant U.S. Attorney John E. Kokkinen.


Defendant Information: CINDY LEE LINEBAUGH, 48
St. Paul, Minn.

Convicted: • False, Fictitious and Fraudulent Claims, 1 count

 

 

At least 35 Properties throughout Minnesota went into Foreclosure as a Result of Scheme

The United States Attorney’s Office for the District of Minnesota today announced the guilty plea of JUSTIN JOSEPH CHRISTENSON, 35, who admitted conspiring with THOMAS ROSENSTEEL, ROBERT SCOTT “ROD” ASLESEN, and at least four others to defraud mortgage lenders by falsifying loan applications and related documents. CHRISTENSON is the seventh co-conspirator to plead guilty to participating in the scheme. The defendant pleaded guilty today before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minn. Last week, ROSENSTEEL and ASLESEN also entered guilty pleas before Judge Doty.

“This was a classic case of criminals perpetrating sham real estate scams to steal money,” said Minnesota Department of Commerce Commissioner Mike Rothman. “Commerce investigators are working closely with our colleagues from the U.S. Attorney's Office, FBI, and the U.S. Postal Inspection Service to stop financial fraud in our state.”

According to the defendants’ guilty pleas and documents filed in court, ROSENSTEEL founded, owned, and was the President of Split Rock Realty, a Twin Cities-based real estate company. In 2006, ROSENSTEEL hired CHRISTENSON to be his Director of Developments. From the fall of 2006 through the fall of 2007, ROSENSTEEL, a licensed real estate salesperson, and CHRISTENSON participated in numerous real estate transactions on behalf of Split Rock to conceal payments from mortgage loan proceeds and divert them to buyers of real properties and other individuals through the use of fraudulent underwriting and closing documentation. Moreover, ROSENSTEEL and others fraudulently concealed that the buyers were given money for down payments and passed these funds off as the buyers’ own funds, thereby misleading mortgage loan lenders to believe that the buyers had a financial stake in the purchased residences and thus incentive to pay the loans.

“This scheme was pervasive and calculated,” said Assistant U.S. Attorney William J. Otteson. “Although the defendants used a variety of complex terms and methods to justify their conduct, what they were convicted of is quite simple: they were lying to mortgage lenders to get money.”

According to the defendants’ guilty pleas and documents filed in court, ROSENSTEEL was aware that fraudulent loan application documentation was provided to potential lenders for purposes of loan underwriting. Among other things, the documentation falsely overstated the true purchase prices to be paid for the properties, falsely overstated the incomes of buyers/borrowers, and concealed the fact that payments were going to be made from the loan proceeds to the buyer and other individuals, including the defendant. CHRISTENSON and others, working with ROSENSTEEL’s knowledge and approval, worked to improperly influence appraisers to ensure that property appraisals were sufficiently inflated to facilitate the cash-back scheme. This included manipulating MLS listings and creating comparable sales for use in appraisals that were themselves fraudulent.

According to the defendants’ guilty pleas and documents filed in court, other individuals, including ASLESEN, a licensed closing agent who owned Split Rock Title (not affiliated with Split Rock Realty), facilitated the fraudulent scheme by making concealed payments to the buyers and other third parties, including through a company ASLESEN created, Eastwind Construction Consulting, whose only real purpose was to facilitate the distribution of the fraudulent payments. ROSENSTEEL, ASLESEN, and CHRISTENSON admitted participating in at least 35 fraudulent real estate transactions as part of the scheme, resulting in nearly all of the properties going into foreclosure. The actual loss to the mortgage holders was more than $2.5 million.

The three recent guilty pleas bring to seven the number of individuals who have pleaded guilty since 2011 in connection with this scheme. The others include: DALE RUSSELL WURZINGER, a licensed real estate agent working for Split Rock Realty; AMRI ELSAFY, owner of The Mortgage Shop, a real estate loan brokerage company; JAMES BRYAN CROOK, owner of Compass Title Company; and GERALD EDWIN CARLSON, a loan officer employed by Cascade Mortgage.

This case resulted from an investigation conducted by the Minnesota Department of Commerce, Federal Bureau of Investigation, and the United States Postal Inspection Service.

This case was prosecuted by Assistant U.S. Attorneys William J. Otteson and Robert M. Lewis.


Defendant Information: JUSTIN JOSEPH CHRISTENSON, 35
Forest Lake, Minn.

Convicted: • Conspiracy to commit wire fraud, 1 count

THOMAS EDWARD ROSENSTEEL, II, 42
Excelsior, Minn.

Convicted: • Conspiracy to commit wire fraud, 1 count

DALE RUSSELL WURZINGER, 58
Burnsville, Minn.

Convicted: • Conspiracy to commit wire fraud, 1 count

ROBERT SCOTT ASLESEN, a/k/a “ROD” ASLESEN, 66
Little Canada, Minn.

Convicted: • Conspiracy to commit wire fraud, 1 count

AMRI ELSAFY, 43
Golden Valley, Minn.

Convicted: • Conspiracy to commit wire fraud, 1 count

JAMES BRYAN CROOK, 59
Staten Island, N.Y.

Convicted: • Conspiracy to commit wire fraud, 1 count

GERALD EDWIN CARLSON, 67
Kennedy, Minn.

Convicted: • Conspiracy to commit wire fraud, 1 count

 

 

United States Attorney Andrew M. Luger announced the sentencing of TIMOTHY GLEN CASKEY, 43, to 300 months in federal prison for assaulting a woman, kidnapping her, and robbing a bank in Kansas while in-transit to Mexico with the kidnapped victim. CASKEY was charged on September 21, 2011, with kidnapping and interstate domestic violence, and on October 19, 2011 with bank robbery. CASKEY pleaded guilty on February 6, 2014, to kidnapping and bank robbery. The defendant was sentenced on February 20, 2015, before Judge John R. Tunheim in U.S. District Court in Duluth, Minn.

“Timothy Caskey kidnapped the victim and took her to Mexico, where he repeatedly threatened her, and physically and sexually assaulted her,” said Assistant U.S. Attorney Michelle E. Jones. “The defendant funded his violent escapade by robbing a bank in Kansas and stealing a truck in Texas. His history of violent criminal behavior, combined with his guilty plea for these crimes, properly resulted in his 25-year prison sentence. I am grateful to the police departments in Virginia, Minnesota and New Braunfels, Texas, as well as the FBI and BCA for conducting an excellent investigation in this case.”

According to the defendant’s guilty plea and documents filed in court, on July 14, 2011, CASKEY forcibly kidnapped the victim from a street in Virginia, Minnesota, while she was walking with her 9-year-old son, and three others. CASKEY forced the victim into his car, attacked her 9-year-old son and another person, and fled with the victim. CASKEY attacked her repeatedly with the handle of a screwdriver before pulling off the highway and sexually assaulting the victim.

According to the defendant’s guilty plea and documents filed in court, on July 15, 2011, CASKEY robbed the Great Southern Bank in Ottawa, Kansas. Before entering the bank, CASKEY used shoelaces to tie up the kidnapping victim and left her in his vehicle. The defendant later stole a pickup truck from a used car dealership in New Braunfels, Texas. Thereafter, CASKEY crossed the border into Mexico, where he continued to physically and sexually assault the kidnapping victim. He threatened to kill her if she tried to escape, and also withheld food and water from the victim. CASKEY was apprehended on August 8, 2011 in Mexico.

This case resulted from an investigation conducted by the Federal Bureau of Investigation, the Minnesota Bureau of Criminal Apprehension, Virginia Police Department (Minnesota), and the New Braunfels Police Department (Texas).

This case was prosecuted by Assistant U.S. Attorneys Michelle E. Jones and Nate Petterson.


Defendant Information: TIMOTHY GLEN CASKEY, 43
Virginia, Minn.

Convicted: • Kidnapping, 1 count
• Bank Robbery, 1 count

Sentenced: • 300 months in prison
• 5 years of supervised release

 

 

United States Attorney Andrew M. Luger announced the sentencing of BUCK OTTO WHITE a/k/a “TIMOTHY JOSEPH HOFFMAN,” 50, to 300 months in federal prison for illegally possessing stolen firearms and ammunition. WHITE was charged on April 7, 2014, with two counts of possession of firearms and ammunition by a convicted felon and two counts of possession of stolen firearms and ammunition. On April 25, 2014, following a three-day trial, a federal jury found WHITE guilty on all counts. The defendant was sentenced on February 13, 2015, before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minn.

“Buck White is a career felon,” said Assistant U.S. Attorney Bradley Endicott. “As a result of his prior convictions, Mr. White cannot legally possess firearms. He is now facing 25 years in prison for his repeated illegal activity. This conviction would not have been possible without the investigative efforts of the ATF and our local partners in the New Ulm Police Department and Nicollet County Sheriff’s Office.”

As proven at trial, WHITE illegally possessed numerous firearms at a storage unit in Courtland, Minn., which included two rifles and two shotguns, as well as 140 rounds of ammunition. All of the firearms and ammunition were stolen during the course of a residential burglary in a nearby town. WHITE also illegally had a rifle and various stolen ammunition at his home in New Ulm, Minn.

During the pendency of his court proceedings, WHITE was released to a treatment facility and ordered to wear a location monitoring bracelet. The defendant on July 22, 2013, removed the GPS monitoring bracelet, fled the facility, and remained a fugitive until the U.S. Marshals arrested him on January 15, 2014. During the arrest, WHITE attempted to flee, leading officers on a high-speed car chase in a densely populated area of Minneapolis, Minn.

This case resulted from an investigation conducted by the New Ulm Police Department, the Nicollet County Sheriff’s Office, and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives.

This case was prosecuted by Assistant U.S. Attorneys Bradley M. Endicott and John R. Marti.


Defendant Information: BUCK OTTO WHITE, a/k/a “TIMOTHY JOSEPH HOFFMAN,” 50
New Ulm, Minn.

Convicted: • Armed Career Criminal in Possession of Firearm, 1 count
• Armed Career Criminal in Possession of Ammunition, 1 count
• Possession of Stolen Firearms, 1 count
• Possession of Stolen Ammunition, 1 count

Sentenced: • 300 months in prison
• 5 years of supervised release

 

 

United States Attorney Andrew M. Luger and Assistant Attorney General for National Security John P. Carlin today announced the indictment of HAMZA NAJ AHMED, 19, for conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL). AHMED is also charged with attempting to provide material support to ISIL, and for making a false statement in a terrorism investigation.1 AHMED was previously charged by criminal complaint for lying to FBI agents. The defendant was detained on February 5, 2015, after making an initial appearance before Magistrate Judge Steven Rau in U.S. District Court in St. Paul, Minn.

“Hamza Ahmed is at least the fourth person from the Twin Cities charged as a result of an ongoing investigation into individuals who have traveled or are attempting to travel to Syria in order to join a foreign terrorist organization,” said U.S. Attorney Luger. “Since 2007, dozens of people from the Twin Cities have traveled or attempted to travel overseas in support of terror. While my office will continue to prosecute those who attempt to provide material support to ISIL or any other terrorist organization, we remain committed to working with dedicated community members to bring this cycle to an end.”

According to the indictment and documents filed in court, AHMED and three companions, M.F., H.M.M, and Z.A., travelled by bus from Minneapolis, Minn., to New York City’s John F. Kennedy International Airport (JFK). The four men were each booked on international flights scheduled to depart JFK on November 8, 2014. AHMED and M.F. were booked on the same flight from JFK to Istanbul, Turkey. M.F., H.M.M., and Z.A. were each prevented from boarding their flights. AHMED successfully boarded, but was escorted from the aircraft by U.S. Customs and Border Protection agents before it left the boarding gate.

According to the indictment and documents filed in court, AHMED was subsequently interviewed by FBI agents. He made multiple false statements during the interview, including telling agents that he was traveling alone, and that he did not know M.F. or H.M.M. When AHMED arrived back in Minnesota on November 9, 2014, FBI agents conducted a second voluntary interview, during which AHMED again lied to agents.

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

This case is being prosecuted by Assistant U.S. Attorneys Andrew Winter and John Docherty, and Attorney Andrew Sigler of the Justice Department’s National Security Division.


Defendant Information: HAMZA NAJ AHMED, 19
Minneapolis, Minn.

Charges: • Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
• Making a False Statement in a Terrorism Investigation, 1 count

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

 

 

Defendant arrested after leading Stevens County Sheriff’s Office on high-speed chase

United States Attorney Andrew M. Luger today announced the sentencing of JOSHUA M. PROUDFOOT, 36, to 202 months in federal prison for possession of methamphetamine and illegally possessing body armor. PROUDFOOT pleaded guilty on September 4, 2014, to Possession with Intent to Distribute Methamphetamine and to being a Felon in Possession of Body Armor. PROUDFOOT was sentenced on February 6, 2015, before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn.

According to the defendant’s guilty plea and documents filed in court, on May 7, 2014, PROUDFOOT led police officers on a high-speed car chase lasting nearly two miles before the defendant lost control of his vehicle and crashed into a field. PROUDFOOT threw at least 14 bags of methamphetamine, totaling more than 20 grams, out of the driver’s side window during the chase. PROUDFOOT, who also had several yellow pills and a live round of .38-caliber ammunition, was arrested a short distance from the crash site after attempting to flee on foot.

According to the defendant’s guilty plea and documents filed in court, PROUDFOOT also possessed two backpacks containing a loaded .38-caliber revolver, additional ammunition and several empty small plastic baggies. In a car he owned, the defendant also had a Point Blank brand bulletproof vest, a loaded .40-caliber handgun, and a tin containing drug paraphernalia and several unidentified pills.

Stevens County Sheriff Jason Dingman said, “This was a significant case for Stevens County. I appreciate the partnership between the federal, state, and local agencies involved in this investigation.”

“The court imposed a just and appropriate sentence based on this defendant’s repeated violent behavior,” said Assistant U.S. Attorney Benjamin Bejar. “The case agent and investigators were instrumental in obtaining justice in this case.”

This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bureau of Criminal Apprehension, Stevens County Sheriff’s Office, and the Morris Police Department.

Assistant United States Attorney Benjamin Bejar prosecuted this case.


Defendant Information: JOSHUA M. PROUDFOOT, 36
Appleton, Minn.

Convicted: • Possession With Intent to Distribute Methamphetamine, 1 count
• Felon in Possession of Body Armor, 1 count

Sentenced: • 202 months in federal prison
• 8 years supervised release

 

 

United States Attorney Andrew M. Luger today announced the sentencing of PEGGY EISCHENS, 45, to one year and one day in federal prison for failing to pay more than $200,000 in employment taxes. EISCHENS pleaded guilty on October 14, 2014, to one count of Willful Failure to Pay Over Taxes. She was sentenced on February 4, 2015, before Judge Michael J. Davis in U.S. District Court in Minneapolis, Minn.

According to the defendant’s guilty plea and documents filed in court, from 2002 through 2011, EISCHENS was a co-owner and employee of R.D. Hanson Associates, Inc. (“RDHA”), which conducted business under the names Kernel Pops of Minnesota and Kernel Concession Supply. During her employment, EISCHENS was responsible for handling payroll and accounting for RDHA, which included the preparation of employee paychecks and the preparation and filing of Form 941 quarterly tax returns with the IRS.

According to her guilty plea and documents filed in court, from 2003 through December 2011, EISCHENS willfully failed to pay over to the IRS federal income taxes and Federal Insurance Contribution Act (“FICA”) taxes, meaning Social Security and Medicare taxes, deducted and collected from the wages of RDHA employees. In total, EISCHENS failed to pay over approximately $201,285 of withheld federal income taxes, withheld FICA taxes, and the employer’s share of FICA taxes.

This case is the result of an investigation conducted by the Internal Revenue Service-Criminal Investigations.

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


Defendant Information: PEGGY EISCHENS, 45
LeSueur, Minn.

Convicted: • Willful Failure to Pay Over Taxes, 1 count

Sentenced: • 1 year and 1 day in prison
• 3 years supervised release

 

 

United States Attorney Andrew M. Luger today announced the guilty plea of KHADRA ABDISAFAD HIRSI, 47, for stealing money in the form of child care subsidies from the U.S. Department of Health and Human Services and the State of Minnesota. The defendant pleaded guilty on February 4, 2015, before Judge Donovan W. Frank in U.S. District Court in St. Paul, Minn., to one count of Theft of Public Money.

According to her guilty plea and documents filed in court, HIRSI was the director and co-owner of Ace DayCare Center, Inc. (Ace DayCare) located in Eden Prairie, Minn. Many of the families for whom Ace DayCare provided childcare services participated in the Child Care Assistance Program, which provides low-income families with childcare assistance. HIRSI was responsible for submitting truthful and accurate billing forms for childcare services provided by Ace DayCare to families participating in the Child Care Assistance Program. Under the Child Care Assistance Program, child-daycare providers submit billing forms for reimbursement directly to the counties where qualifying families reside.

According to her guilty plea and documents filed in court, in February and March of 2013, HIRSI knowingly submitted Child Care Assistance Program billing forms that falsely inflated the number of children who received childcare services provided by Ace DayCare. As a result, HIRSI fraudulently obtained approximately $20,000 from the U.S. Department of Health and Human Services and the State of Minnesota for childcare services that were not actually provided.

"With our partners, we are aggressively targeting child care providers who try to collect payments from public programs for services they don't provide," said Minnesota Department of Human Services Inspector General Jerry Kerber, whose office oversees fraud prevention and detection efforts for state public assistance programs. "The seriousness of this crime is underscored by the fact that more than 6,100 Minnesota families are waiting to receive child care assistance."

This case is the result of an investigation conducted by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services – Office of Inspector General.

U.S. Attorney Luger thanked the Minnesota Department of Human Services for their assistance.

Assistant U.S. Attorney John E. Kokkinen is prosecuting the case.


Defendant Information: KHADRA ABDISAFAD HIRSI, 47
Eden Prairie, Minn.

Convicted: • Theft of Public Money, 1 count

 

 

United States Attorney Andrew M. Luger and Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Division St. Paul Field Office Shea Jones today announced the sentence of JOEL WILLIAM CARLSON, 43, of Vadnais Heights, MN, to 42 months in prison. CARLSON pleaded guilty on September 10, 2014, to two counts of tax evasion for tax years 2010 and 2011.

According to his guilty plea and documents filed in court, CARLSON acted as an investment advisor during 2010 and 2011. He deposited client investments, as well as additional funds solicited from his father, into a Trust Financial Group (“TFG”) account, that CARLSON treated as his personal bank account. Instead of investing the funds, CARLSON spent the money on personal items and, when confronted, lied to his clients about the existence of their investments. In addition to intentionally misappropriating both client assets and his father’s assets, totaling more than $1.5 million, CARLSON failed to file personal income tax returns for tax years 2010 and 2011.

According to his guilty plea, CARLSON also failed to timely file personal income tax returns for tax years 2005 through 2007. As a result, the IRS filed a federal tax lien against CARLSON for approximately $495,000.

In addition to paying restitution of approximately $1.9 million to the investment fraud victims and his father, CARLSON will also pay approximately $1.2 million in restitution to the Internal Revenue Service.

Assistant U.S. Attorney Tracy L. Perzel prosecuted this case.

This case was the result of an investigation by the Internal Revenue Service – Criminal Investigation Division.


Defendant Information: JOEL WILLIAM CARLSON
Vadnais Heights, MN

Convicted: • Attempt to Evade and Defeat Tax, 2 counts

Sentenced: • 42 months in prison
• Ordered to pay approximately $3.1 million in restitution

 

 

Defendant Intercepted in New York City While Attempting to Fly Overseas Possibly to Join Terror Organization

United States Attorney Andrew M. Luger today announced a criminal complaint charging HAMZA AHMED, 19, with lying to agents from the Federal Bureau of Investigation (FBI). AHMED is charged with making a false statement in a terrorism investigation.1 The defendant made an initial appearance on February 5, 2015, before Magistrate Judge Steven Rau in U.S. District Court in St. Paul, Minn.

“Any person has a right to remain silent, or to consult an attorney when speaking with federal agents or prosecutors,” said U.S. Attorney Luger. “However, this Office will continue to prosecute those who lie to federal law enforcement officers and impede criminal investigations into suspected terrorist activity.”

According to the complaint and documents filed in court, AHMED and three companions, H.M.M, M.F., and Z.A., travelled by bus from Minneapolis, Minn., to New York City’s John F. Kennedy International Airport (JFK). The four men were each booked on international flights scheduled to depart JFK on November 9, 2014. AHMED and M.F. were booked on the same flight from JFK to Istanbul, Turkey. Z.A., M.F., and H.M.M. were each prevented from boarding their flights. AHMED successfully boarded, but was removed from the aircraft before it left the boarding gate.

According to the complaint and documents filed in court, AHMED was subsequently interviewed by FBI agents. He made multiple false statements during the interview, including telling agents that he was traveling alone, and that he did not know M.F. or H.M.M. When AHMED arrived back in Minnesota on November 9, 2014, FBI agents conducted a second voluntary interview, during which AHMED lied to agents.

According to the criminal complaint and documents filed in court, AHMED told FBI agents that he traveled to New York alone and intended to vacation in Madrid for four days by himself. However, the itinerary he booked would have allowed AHMED only one full day in Madrid. Moreover, AHMED did not book a hotel room in Madrid, and he did not know anyone in Madrid. AHMED again denied that he was traveling with M.F.

According to the criminal complaint and documents filed in court, AHMED told agents that he only “vaguely” knew H.A.M., an individual from Minnesota known to have traveled to Syria in 2014. However, a review of AHMED’s publicly available Twitter account shows that a lengthy series of messages between AHMED and H.A.M. took place between November 2013 and March 2014.

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

This case is being prosecuted by Assistant U.S. Attorneys Andrew Winter and John Docherty.


Defendant Information: HAMZA AHMED, 19
Minneapolis, Minn.

Charge: • False Statement in a Terrorism Investigation, 1 count

Hamza Ahmed Complaint

 

The charges contained in the criminal complaints are merely allegations, and the defendant is presumed innocent unless and until proven guilty.

United States Attorney Andrew M. Luger today announced a criminal complaint charging MICHAEL RONALD GARANT, 42, for acting as a straw purchaser of three firearms for Ray Kmetz. GARANT is charged by complaint with making a false statement to acquire firearms on behalf of another person. GARANT will appear today before Magistrate Judge Steven Rau in U.S. District Court in St. Paul, Minn.

“Background checks are only as good as the accuracy of the information collected,” said U.S. Attorney Luger. “Honestly answering questions about the intended recipient of a firearm is an important component of responsible gun ownership and key to public safety, which is why it is a crime to act as a straw purchaser. This defendant is charged with committing that very crime – buying guns for another person and lying about it.”

According to the criminal complaint and documents filed in court, on August 21, 2014, Ray Kmetz was the highest bidder for three shotguns in an online auction, which were actually purchased by GARANT on August 23, 2014, at Full Metal Gun Shop in Princeton, Minn. The defendant informed the owner of the gun shop that he used the alias “Ray Kmetz” during the online auction to hide his true identity. GARANT produced a driver’s license to the store owner to verify that he was, in fact, GARANT.

According to the criminal complaint and documents filed in court, a National Instant Criminal Background Check was performed on GARANT, and was returned “clear.” One of the forms completed by GARANT as part of the background check contained the following question: Are you the actual transferee/buyer of the firearm(s) listed on this form? Warning: You are not the actual buyer if you are acquiring the firearm(s) on behalf of another person. If you are not the actual buyer, the dealer cannot transfer the firearm(s) to you.

GARANT responded “yes” to this question by checking the corresponding box. GARANT paid $659.29 in cash for the three shotguns, one of which was a Stoeger Model 2000 12-gauge shotgun bearing serial number 915191.

According to the criminal complaint and documents filed in court, on January 26, 2015, Ray Kmetz entered New Hope City Hall, in New Hope, Minn., during a meeting of the city council. He was armed with the same Stoeger Model 2000 12-gauge shotgun that GARANT had purchased. Kmetz fired one round from the shotgun in the direction of the council chambers. New Hope Police Officers responded with fire and killed Kmetz.

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

Assistant U.S. Attorneys Nate Petterson and Benjamin Bejar are prosecuting this case.


Defendant Information: MICHAEL RONALD GARANT, 42
Golden Valley, Minn.

Charges: • Making a false statement to acquire firearms on behalf of another person, 1 count

Garant Complaint & Affidavit

 

The charges contained in the criminal complaints are merely allegations, and the defendant is presumed innocent unless and until proven guilty.

United States Attorney Andrew M. Luger today announced a criminal complaint charging ROBERT JAMES SCHUELLER, 29, in a murder-for-hire plot targeting the fiancé of his former paramour. SCHUELLER is charged with the use of interstate commerce facilities in the commission of murder-for-hire, in violation of 18 U.S.C. §1958(a).1 The defendant appeared this afternoon before Magistrate Judge Tony Leung in U.S. District Court in St. Paul, Minnesota.

“This defendant is charged with orchestrating a murder-for-hire plot,” said Assistant U.S. Attorney Julie Allyn. “Fortunately for the intended victim in this case, the contract killing was never carried out. The FBI and Stearns County Sheriff’s Office pursued diligently this investigation, and we are grateful for their successful efforts to keep Minnesotans safe from violence.”

According to the complaint and documents filed in court, ROBERT SCHUELLER is the President of Nomad Pipeline Services (Nomad). Between approximately May 2013 and August 2013, SCHUELLER, who is married, was engaged in an extramarital affair with R.T., then an employee of Nomad. Approximately three months after R.T. ended the relationship with SCHUELLER, SCHUELLER learned that R.T. was in a relationship with C.A. SCHUELLER subsequently tried to reignite the relationship with R.T., but was rebuffed.

According to the complaint and documents filed in court, on February 6, 2014, SCHUELLER contacted another employee of Nomad, W.E. SCHUELLER knew W.E. had several prior felony convictions and had served time in prison. He asked if W.E. maintained contact with anyone from prison. When W.E. answered in the affirmative, SCHUELLER told W.E that he wanted to hire someone to murder C.A. On February 13, 2014, W.E. pretended to have identified a former prison associate who may be willing to murder C.A. for SCHUELLER.

According to the complaint and documents filed in court, sometime in March 2014, SCHUELLER sent a package to W.E. containing $10,000 in cash and two of his own business cards, on which he had written C.A.’s name and information about where C.A. worked. On May 2, 2014, W.E. called SCHUELLER and told him that he was unable to find someone to carry out the murder. After the phone call, SCHUELLER texted W.E., “burn those business cards.” W.E. subsequently returned the $10,000 to SCHUELLER.

This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Stearns County Sheriff’s Office.

This case is being prosecuted by Assistant United States Attorneys Julie E. Allyn and Steven L. Schleicher.

Defendant Information: ROBERT JAMES SCHUELLER, 29
Farming Township, Minn.

Charge: • Use of interstate commerce facilities in the commission of murder-for-hire, 1 count

 

 

United States Attorney Andrew M. Luger today announced the guilty plea of KENNETH FRANK HARYCKI, 51, to conspiracy to defraud the United States by preparing and filing tax forms that he knew to be fraudulent. HARYCKI pleaded guilty today before U.S. District Judge Ann D. Montgomery in Minneapolis.

“As a former mayor, Mr. Harycki understands, better than most, the magnitude and impact of the fraud he helped to perpetrate,” said U.S. Attorney Luger. “By his guilty plea, Mr. Harycki has taken responsibility for his actions, but that does not excuse his criminal acts. This defendant not only violated his accounting license by covering up a tax fraud, he eroded the trust of the residents of Stillwater, who elected him to a position of high public office.”

According to his guilty plea, during the course of the conspiracy, HARYCKI owned and operated businesses that provided bookkeeping, payroll, and accounting services, including tax- related services, to clients. In 2007, the defendant began providing services to two separately charged co-conspirators. Within the first few payroll cycles for Model Health Care (Model), a company controlled by the two separately charged co-conspirators, the defendant concluded that while payroll taxes were being withheld from the wages of employees, those taxes were not being paid over to the government. The defendant learned that these co-conspirators had directed that the withheld taxes not be paid to the government and, instead, the taxes would be used for other purposes, including compensating the co-conspirators and their family members and funding other businesses operated by the co-conspirators.

According to the defendant’s guilty plea, on February 18, 2010, HARYCKI created the entity MKH Holdings, Inc., to assume control over bank accounts used to fund businesses operated by the co-conspirators. The entity was used to cause funds falsely reported on income tax returns to be paid to the co-conspirators and others. During the course of the conspiracy, HARYCKI also incorporated other businesses, obtained employer identification numbers, paid for personal expenses, filed false tax returns, and opened and used numerous bank accounts for the benefit of the separately charged co-conspirators in order to avoid payment of taxes.

The tax loss from the defendant’s relevant conduct is between $1 million and $2.5 million.

This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division, Federal Bureau of Investigation, and Department of Health and Human Services Office of the Inspector General.

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

Defendant Information: KENNETH FRANK HARYCKI, 51
Stillwater, Minn.

Convicted: • Conspiracy to Defraud the United States, 1 count