District of Minnesota

MINNEAPOLIS—A federal indictment unsealed yesterday charges a 62-year-old man from the western Minnesota community of Graceville with distributing and possessing images of child pornography. The indictment, which was filed on May 7, 2013, charges John Rolland Parent with five counts of distribution of child pornography and one count of possession of child pornography. The indictment was unsealed following Parent’s initial appearance in federal court.

The indictment alleges that between March 15, 2011, and September 25, 2011, Parent distributed via a computer visual depictions of minors engaged in sexually explicit conduct. It also alleges that on June 12, 2012, Parent possessed more than 800 images and videos of similar conduct. Authorities found the items on computers, hard drives, and other digital media that they seized during the execution of a state search warrant at Parent’s residence.

If convicted, Parent faces a potential maximum penalty of 40 years in prison on each distribution count, and 20 years on the possession charge. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Minnesota Internet Crimes Against Children Task Force, the Big Stone County Sheriff’s Office, the Federal Bureau of Investigation, and the Minnesota Bureau of Criminal Apprehension. It is being prosecuted by Assistant United States Attorney Andrew Dunne.

Distribution, and possession of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is 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 was brought as 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 U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue 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.”

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Earlier today in federal court, two Twin Cities-area men pleaded guilty to conspiring to distribute more than 500 grams of methamphetamine, among other drugs. Jose Francisco Hernandez-Perez, age 26, of West St. Paul, and Jose Enrique Mederos-Benitez, age 23, of Minneapolis, pleaded guilty to one count of conspiracy to distribute methamphetamine. In addition, Mederos-Benitez pleaded guilty to one count of using, carrying, and possessing a firearm during and in relation to a drug-trafficking crime. Both men were indicted on January 8, 2013, and entered their pleas before United States District Court Judge David S. Doty.

In their plea agreements, the defendants admitted that from the fall of 2012 through December 11, 2012, they, along with Fabio Adolpho Medal Lopez, age 57, of West St. Paul, conspired to distribute more than 500 grams of methamphetamine. On December 11, Mederos-Benitez and Hernandez-Perez had 1,786 grams of methamphetamine in the front seat of the car they were driving. Officers found the drugs when they stopped the car near the intersection of Robert Street and Thompson Avenue in West St. Paul. The men admitted they intended to distribute the methamphetamine later that day. Unknown to them, the buyer was an undercover officer. At the time of the stop, Mederos-Benitez also had a loaded .380-caliber, semi-automatic handgun tucked in his waistband. In a later search of Hernandez-Perez’s apartment, officers seized 903.9 grams of cocaine, 262.8 grams of methamphetamine, a scale, cutting agents, and other drug-related items.

On April 18, 2013, Lopez pleaded guilty to one count of conspiracy in connection to this case. In his plea agreement, he admitted conspiring with others to distribute methamphetamine. On October 23, November 19, and December 11, 2012, Lopez sold methamphetamine, totaling 216.7 grams, to a confidential informant.

For their crimes, all three defendants face a potential maximum penalty of life in federal prison, with a mandatory minimum penalty of ten years. In addition, Mederos-Benitez faces a consecutive 60-month sentence on the firearm charge, with a mandatory minimum consecutive sentence of five years. Because the federal criminal justice system does not have parole, offenders spend virtually the entire prison sentence imposed behind bars.

This case is the result of an investigation by the U.S. Drug Enforcement Administration, the St. Paul Police Department, and the Minnesota State Patrol. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.

To learn more about the harmful effects of methamphetamine, visit http://www.justice.gov/dea/pr/multimedia-library/publications/drug_of_abuse.pdf#page=48.

 

 

MINNEAPOLIS—Yesterday in federal court, a 23-year-old Redby man was sentenced for harboring a fugitive last spring. On May 13, 2013, United States District Court Judge John R. Tunheim sentenced Andrew Oakgrove to 30 months in prison on one count of harboring and concealing a fugitive. Oakgrove was indicted on December 10, 2012, and pleaded guilty on February 6, 2013.

In his plea agreement, Oakgrove admitted that on April 30, 2012, he concealed Jason King from federal authorities. King was wanted on a federal arrest warrant for his indictment in connection to the December 30, 2011, armed robbery of Newby’s Market in Bemidji. Oakgrove also admitted leading police on a high-speed pursuit over several miles. Both men were arrested following the pursuit.

This case was the result of an investigation by the Red Lake Tribal Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.

 

 

MINNEAPOLIS—Earlier today in federal court, a 22-year-old man, formerly of Maine, was indicted for making bomb threats at the Minneapolis-St. Paul International Airport and the Mall of America (“MOA”). Dana William Ashey was specifically charged with two counts of false information and hoaxes.

The indictment alleges that on April 12, 2013, Ashey threatened that bombs had been planted at both the airport and the MOA. According to a law enforcement affidavit filed in the case, the airport’s police dispatch received a bomb threat at 2:37 a.m., on April 12, 2013, with a warning that a bomb could go off by 3:00 a.m. At 2:42 a.m. that same day, another bomb threat was allegedly phoned in to security dispatch for the MOA. The caller in that instance purportedly stated that the bomb had been placed in a restroom. A search of the mall yielded no bomb. At 2:17 p.m., the mall’s switchboard operator allegedly received yet another bomb threat. Authorities traced the call and found the man still inside the MOA. The man, later identified as Ashey, reportedly possessed the cell phone that was used to deliver the bomb threats.

If convicted, Ashey faces a potential maximum penalty of five years in federal prison on each count. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Federal Bureau of Investigation’s Joint Terrorism Task Force, the Minneapolis-St. Paul International Airport Police Department, the Bloomington Police Department, and the MOA Security. It is being prosecuted by Assistant United States Attorney Andrew R. Winter.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Earlier today in federal court, four more men were sentenced for their roles in terrorism offenses. United States District Court Chief Judge Michael J. Davis sentenced Omer Abdi Mohamed to 144 months in federal prison, followed by 20 years of supervised release. He was ordered to remain in the custody of the Bureau of Prisons. Abdifatah Yusuf Isse, Salah Osman Ahmed, and Ahmed Hussein Mahamud were each sentenced to 36 months in federal prison, followed by 20 years of supervised release. Isse, Ahmed, and Mahamud cooperated with the United States and testified at the trial of Mahamud Said Omar. Yesterday, Judge Davis sentenced Omar to 20 years in prison following his conviction at trial for numerous terrorism offenses relating to his provision of money to al-Shabaab fighters and the facilitation of travel for young men from Minnesota to join al-Shabaab, a U.S.-designated Foreign Terrorist Organization based in Somalia.

Relative to today’s sentencings, Omer Abdi Mohamed, age 28, of Minneapolis, pleaded guilty on July 18, 2011, to one count of conspiracy to provide material support to co-conspirators who intended to murder, kidnap, or main Ethiopian and Somali government troops. Abdifatah Yusuf Isse, age 29, of Minneapolis, pleaded guilty on April 24, 2009, to one count of providing material support to terrorists. Salah Osman Ahmed, age 30, of Minneapolis, pleaded guilty on July 28, 2009, to one count of providing material support to terrorists. And Ahmed Hussein Mahamud, age 28, formerly of Eden Prairie but most recently of Westerville, Ohio, pleaded guilty on February 6, 2012, to one count of conspiring to provide material support to al-Shabaab.

Following today’s sentencings, United States Attorney B. Todd Jones said, “These defendants, by providing material support to a designated terrorist organization, broke both the law and the hearts of family members across the Twin Cities. They facilitated the travel of other men to Somalia to fight or they themselves traveled to fight, often leaving Minnesota in the dead of night, without so much as a word to their parents. Today’s sentences reflect not only the misguided and insidious nature of their crimes, but also the importance of cooperation and community involvement in preventing potential acts of terrorism.”

J. Chris Warrener, Special Agent in Charge of the Federal Bureau of Investigation’s Minneapolis Field Office, which leads the Minnesota Joint Terrorism Task Force, the primary investigative entity in this case, added, “The sentencing hearings of these four young men serve as reminders that the FBI will continue its efforts to thwart the radicalization of our youth through both investigations and engagement of our community. We remain steadfastly committed to each.”

In his plea agreement filed on July 18, 2011, Omer Abdi Mohamed admitted that between September and December of 2007, he assisted men from Minneapolis in traveling to Somalia to fight with al-Shabaab, knowing that once there, the men intended to murder, kidnap, or main Ethiopian and Somali government troops. Mohamed specifically attended meetings at a Minneapolis mosque, restaurant, and private residence, where he and his co-conspirators formed a secret plan that called for Somali men residing in Minneapolis to travel to Somalia to join al-Shabaab. He also facilitated the travel of several of these young men, helping them obtain plane tickets as well as the false itinerary needed by one man to mislead his family about the purpose of his travel. Mohamed was also present in Minneapolis when money was raised for such travel. Many of those donations came from unsuspecting members of the Somali-American community, who were told the money was to be used for Somalia relief efforts.

In his plea agreement filed on April 24, 2009, Abdifatah Yusuf Isse admitted that during 2007, he met other men at a Minneapolis mosque to conspire to provide money and people to fight in Somalia. Then, on December 8, 2007, he traveled to Somalia and joined al-Shabaab. While there, he participated in fund-raising calls back to Minnesota in an effort to garner money to purchase his own AK-47 rifle. In Somalia, Isse stayed at an al-Shabaab safe house and briefly attended an al-Shabaab training camp before quitting the camp in the Spring of 2008.

In his plea agreement filed on July 28, 2009, Salah Osman Ahmed admitted that in October 2007, he conspired with others in Minneapolis to provide money and people to al-Shabaab. To that end, he raised money from the Somali-American community in Minnesota under false pretenses. Then, on December 6, 2007, Ahmed traveled from Minneapolis to fight in Somalia. While in Somalia, he received basic training from al-Shabaab on AK-47s, rocket-propelled grenades, and machine guns. He also assisted in building a training camp for al-Shabaab, before quitting camp with Isse.

In his plea agreement filed on February 6, 2012, Ahmed Hussein Mahamud admitted that from 2008 through February of 2011, he conspired with others to provide money and people to al-Shabaab. Specifically, in the summer of 2008, he assisted with fundraising under false pretenses, claiming the money raised would be used for a local mosque or to help orphans in Somalia, when, in fact, it was for purchasing airline tickets and paying other expenses for men who traveled from Minneapolis to Somalia to join al-Shabaab. In 2009 and 2010, he also conspired to send money to an al-Shabaab fighter to assist in buying weapons. He sent money via wire transfers to a co-conspirator in Somalia, knowing the money would be used to purchase weapons or otherwise support al-Shabaab.

This case arose out of “Operation Rhino,” a federal investigation that has focused primarily on the disappearance of approximately 20 young, ethnic Somali men from the Twin Cities area during the past six years. The young men were recruited to fight with al-Shabaab. The earliest groups of men departed the United States in October and December of 2007, while others left in February 2008, August 2008, September 2008, November 2008, and October 2009. Upon arriving in Somalia, the men resided in al-Shabaab safe houses in Southern Somalia until constructing an al-Shabaab training camp, where they were trained from that point on. Senior members of al-Shabaab and a senior member of al-Qaeda in East Africa conducted those trainings.

In July 2008, men from Minneapolis as well as other Americans participated in an al-Shabaab ambush of Ethiopian troops. On October 29, 2008, one of those men, Shirwa Ahmed, who left Minneapolis in December 2007, detonated a vehicle-borne improvised explosive device as one of five coordinated suicide bombings in Bosaso and Hargeisa, Somalia. Ahmed is believed to have become the first American suicide bomber in Somalia. On May 30, 2011, Farah Mohamed Beledi, an indicted individual who departed Minnesota in October 2009, was killed at a checkpoint in Somalia as he attempted to detonate his suicide vest. To date, approximately 18 individuals have been charged through Operation Rhino, and eight have been convicted. The remaining ten are believed to be fugitives or have been killed in Somalia.

These cases resulted from a long-term investigation conducted by the FBI’s Minneapolis Joint Terrorism Task Force.

The case was prosecuted by Assistant U.S. Attorneys Charles J. Kovats, John Docherty, and LeeAnn K. Bell, and William M. Narus of the Counterterrorism Section of the U.S. Department of Justice’s National Security Division.

 

 

MINNEAPOLIS—Earlier today in federal court, a former Twin Cities personal care attendant was sentenced for stealing the identity of a minor in her care. United States District Court Judge Richard H. Kyle sentenced Charnell Alene Hudson, age 40, unknown residence, to 42 months on one count of mail fraud and one count of aggravated identity theft, as well as pay restitution to the victims. Hudson was indicted on July 23, 2012, and pleaded guilty on November 19, 2012.

In her plea agreement, Hudson acknowledged that between June 2008 and September 2010, she devised and executed a scheme to defraud by stealing the identity of a minor in her care. In 2005, Hudson worked as a personal care attendant for the elderly and disabled in the Twin Cities area. That year, she was hired to provide care for a minor at the minor’s home. In 2006, the minor moved in with Hudson. Hudson assumed responsibility for all aspects of the minor’s care and had access to all of the minor’s personal identifying documents. When the minor moved out the next year, Hudson kept all of the minor’s identifying documents and information.

Hudson used the minor’s Social Security card and birth certificate to obtain a Minnesota driver’s license and a title for a vehicle. Since Hudson had a criminal history that prevented her from opening a licensed daycare, she also used the minor’s identity to establish a business called “Lil Dumplin’s Daycare,” which allowed her to receive $70,000 from Ramsey County pursuant to a contract to provide services to the community. On March 25, 2010, Hudson also used the minor’s identity to purchase a $153,000 home in St. Paul, Minnesota. Hudson then used the minor’s identity to send monthly payment checks of $916.12 to the seller of the house.

This case was the result of an investigation by the U.S. Postal Inspection Service and the Social Security Administration’s Office of the Inspector General. It was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.

 

 

MINNEAPOLIS—Earlier today in federal court, a former U.S. postal carrier was sentenced for stealing from the mail he delivered. United States District Court Judge John R. Tunheim sentenced Giang Nguyen, age 49, of Superior, Wisconsin, to two years of probation, along with payment of restitution, and 100 hours of community service on one count of theft of mail by a postal employee. Nguyen was charged via an Information on September 6, 2012, and pleaded guilty on September 26, 2012.

Following today’s sentencing, Pete Gately, Special Agent in Charge of the U.S. Postal Service-Office of Inspector General (“USPS-OIG”), said, “The majority of U.S. Postal Service employees are dedicated public servants who take great pride in ensuring the sanctity and security of the U.S. Mail. Unfortunately, Giang Nguyen betrayed the trust placed in him, and his actions resulted in deserved consequences for violating that trust. Today’s outcome demonstrates the ongoing commitment of the USPS-OIG and the U.S. Attorney’s Office to vigorously investigate and prosecute those matters. The public can remain confident that the USPS-OIG will continue to ensure the security of their mail.”

In his plea agreement, Nguyen admitted that from March 2010 to January 7, 2011, he removed applications for Menards rebate checks, the actual rebate checks, and Menards Big Game Money Cards from the mail he was entrusted to deliver. During this period, Nguyen was employed by the Duluth Post Office. Nguyen used the rebate checks and Big Game Money Cards that he stole to make purchases at Menards. He also altered the stolen rebate check applications so that Menards would issue the checks to him, rather than the customers on his route. In total, Nguyen stole at least 77 pieces of mail intended for Menards and residents on his route. Through his activity, Nguyen stole at least $1,456.75.

This case was the result of an investigation by the U.S. Postal Service-Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys John E. Kokkinen and Lola Velazquez-Aguilu.

 

 

MINNEAPOLIS—Earlier today in federal court, a 26-year-old Michigan man, formerly of Chisholm, was charged with defrauding customers of Memory Lane Classics, a company that restored and rebuilt classic cars. Edwin Scott Verdung was specifically charged via an Information with one count of wire fraud and one count of transaction money laundering. He allegedly defrauded customers out of more than $1 million.

From April 2007 through May 2010, Verdung purportedly took money from individuals who were in the market for classic automobiles or who brought their own vehicles into the shop to be restored or rebuilt. Despite accepting the funds, however, Verdung allegedly failed to provide the vehicles or the restoration services promised. In some instances, he reportedly represented falsely that he had made progress in rebuilding or restoring a customer’s vehicle, when, in fact, he had done nothing along those lines. Verdung also allegedly required some customers to make “progress” payments, providing those customers with fraudulent photographs as evidence of the progress made in restoring the vehicle. Verdung spent the money he received on things other than restoring vehicles as he had promised.

If convicted, Verdung faces a potential maximum penalty of 20 years in federal prison on the wire fraud count and 10 years in federal prison on the transaction money laundering count. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Internal Revenue Service-Criminal Investigation, Minnesota Bureau of Criminal Apprehension, and the Chisholm Police Department. It is being prosecuted by Assistant United States Attorney Nicole A. Engisch.

A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Earlier today in federal court, a 30-year-old man from Sacramento, California, was indicted for allegedly distributing controlled substances in Minnesota. Demar Deshawn Powell was specifically charged with one count of conspiracy to distribute or possess with intent to distribute a controlled substance and one count of attempt to distribute or possess with intent to distribute a controlled substance.

The indictment alleges that on September 21, 2012, Powell distributed a controlled substance. A law enforcement affidavit filed in the case states that on September 20, 2012, a suspicious package came into the Minneapolis-St. Paul International Airport. An officer in the K-9 unit purportedly notified authorities that a drug-sniffing dog had alerted to narcotics in the package. During the subsequent execution of a search warrant on the parcel, which was being shipped from Sacramento to a Bloomington address, authorities allegedly found approximately 283 grams of crack cocaine and 123.5 grams of marijuana. On September 21, 2012, the package was delivered to the Bloomington address. The police then executed a search warrant on the package and arrested Powell when he later claimed it.

If convicted, Powell faces a potential maximum penalty of life in prison, because he has been convicted of felony drug charges in the past. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the United States Postal Inspection Service, the Bloomington Police Department, and the Minneapolis-St. Paul International Airport Police Department, with cooperation from the Sacramento County Sheriff’s Office in California. The case is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Today in federal court, U.S. District Court Chief Judge Michael J. Davis sentenced two local men for providing material support to foreign terrorists. Mahamud Said Omar, also known as Sharif Omar, age 46, of Minneapolis, was sentenced to 180 months in federal prison on each of Counts 1 through 4, and 240 months in federal prison on Count 5, with the prison sentences to run concurrently. He was also ordered to remain on life-long supervised release once he has served his prison term. Kamal Said Hassan, age 28, of Minneapolis, was sentenced to 120 months in federal prison on each of Counts 1 and 2 and 96 months in federal prison on Count 3, to be served concurrently, followed by 20 years of supervised release.

Omar was indicted on August 20, 2009, on Count 1: conspiracy to provide material support to terrorists; Count 2: providing material support to terrorists; Count 3: conspiracy to provide material support to a Foreign Terrorist Organization; Count 4: providing material support to a Foreign Terrorist Organization; and Count 5: conspiracy to kill, kidnap, maim, and injure overseas. He was arrested in the Netherlands in November of 2009 and extradited to the United States in August of 2011. In October 2012, he was tried and convicted of these crimes. He remains in custody.

On February 18, 2009, Hassan pleaded guilty to Counts 1 and 2 of an information, alleging he provided material support to terrorists and providing material support to the Foreign Terrorist Organization al-Shabaab. He admitted that he had traveled to Somalia, had graduated from an al-Shabaab training camp, and had participated in an al-Shabaab ambush of Ethiopian soldiers. Then, on August 12, 2009, he was charged with and entered a guilty plea to Count 3 of a superseding information, alleging that he made false statements to the Federal Bureau of Investigation (“FBI”) during interviews with the FBI in early 2009. Those charges were based on the fact that Hassan had lied to the FBI about his continued involvement with al-Shabaab after completing training in an al-Shabaab camp. He pleaded guilty to that crime and remains in custody.

Following today’s sentencings, John Carlin, Acting Assistant Attorney General for National Security, said, “With today’s sentences, two individuals who played crucial roles in raising funds and recruiting fighters from the United States to assist al-Shabaab are being held accountable. I thank the many agents, analysts, and prosecutors responsible for this extensive investigation and the many successful prosecutions that have resulted.”

U.S. Attorney B. Todd Jones added, “Fighting terrorism, whether at home or abroad, remains the number-one priority of the U.S. Department of Justice. To that end, we must continue to counter violent extremism and radicalization through tough prosecution whenever necessary and education and outreach efforts whenever possible. We need to keep our young people from being recruited and trained by foreign terror organizations, not only because of the threat to themselves and others elsewhere in the world but because of the danger they pose if they return to this country.”

From September 2007 through August 2009, Omar, a Somali citizen who was a lawful permanent resident of the United States, conspired with others to provide financial assistance as well as personnel to al-Shabaab, a Somali group designated a Foreign Terrorist Organization by the U.S. State Department in March 2008. Specifically, while on a trip to Somalia in early 2008, Omar visited an al-Shabaab safe-house, providing those in charge with hundreds of dollars for the purchase of AK-47 assault weapons, to be used by the Minneapolis men who had traveled there to fight with al-Shabaab. After returning to the United States, Omar facilitated the travel of several young men from Minnesota to Somalia, where they trained with and fought for al-Shabaab. In the fall of 2008, he assisted six additional men, some of whom were as young as 17 years of age, in traveling from Minnesota to Somalia. Later that year, Omar left the United States for Saudi Arabia and eventually sought asylum in the Netherlands.

Prior to departing from Minnesota in December 2007, Hassan engaged in fund-raising and attended meetings at a Minneapolis mosque, restaurant, and private residence for the purpose of developing and implementing the plan to induce Somali men in Minneapolis to travel to Somalia to fight for al-Shabaab. Once in Somalia, he participated in, among other things, an attack by al-Shabaab on a convoy of Ethiopians who were traveling in Somalia. In addition, he assisted in the construction of an al-Shabaab training camp, and he appeared in an al-Shabaab propaganda video that encouraged others to travel to Somalia and join al-Shabaab.

J. Chris Warrener, Special Agent in Charge of the Federal Bureau of Investigation’s Minneapolis Field Office, which leads the Minnesota Joint Terrorism Task Force, the primary investigative entity in this case, said, “Today marks a significant point in our efforts to identify and neutralize the efforts of al-Shabaab to support terrorist operations from their American Diaspora. It represents years of hard work by the FBI Joint Terrorism Task Force, our many state, local, and federal partners, as well as countless courageous leaders and parents in the Minneapolis Somali community. While the sentencing today represents closure to two very significant cases, our overall investigation continues with our full commitment.”

This case arose out of “Operation Rhino,” a federal investigation that has focused primarily on the disappearance of approximately 20 young, ethnic Somali men from the Twin Cities area during the past six years. The young men were recruited to fight with al-Shabaab against Somalia’s internationally recognized Transitional Federal Government and African Union peacekeeping troops in Somalia.
The earliest groups of identified “travelers” departed the United States in October and December of 2007, while others left in February 2008, August 2008, September 2008, November 2008, and October 2009. Upon arriving in Somalia, the men resided in al-Shabaab safe houses in Southern Somalia until constructing an al-Shabaab training camp, where they were thereafter trained. Senior members of al-Shabaab and a senior member of al-Qaeda in East Africa conducted those trainings.

In July 2008, men from Minneapolis as well as other Americans participated in an al-Shabaab ambush of Ethiopian troops. One of those men, Shirwa Ahmed, who had resided at the safe house with Omar and Hassan, detonated a vehicle-borne improvised explosive device as one of five coordinated suicide bombings on October 29, 2008, in Bosaso and Hargeisa, Somalia. Ahmed is believed to have become the first American suicide bomber. On May 30, 2011, Farah Mohamed Beledi, one of the men charged with terrorism offenses in October 2009, was killed at a checkpoint in Somalia as he attempted to detonate his suicide vest. To date, approximately 18 individuals have been charged in the course of Operation Rhino, and eight defendants have been convicted. The remaining ten are believed to be fugitives or have been killed in Somalia.

These cases were the result of an investigation by the FBI’s Minneapolis Joint Terrorism Task Force, with the assistance of the Netherlands National Police Service, the Netherlands Ministry of Security and Justice, the Justice Department’s Office of International Affairs, the U.S. Department of State, and the U.S. Department of Defense.

It was prosecuted by Assistant U.S. Attorneys Charles J. Kovats, John Docherty, and LeeAnn K. Bell, as well as William M. Narus of the Counterterrorism Section of the U.S. Department of Justice’s National Security Division.

 

 

MINNEAPOLIS—Earlier today in federal court, a 28-year-old felon from Minneapolis pleaded guilty to possessing a .44-caliber revolver. Eugene Denzel Johnson pleaded guilty to one count of being a felon in possession of a firearm. Johnson, who was indicted on November 20, 2012, entered his plea before United States District Court Judge Ann D. Montgomery.

In his plea agreement, Johnson admitted that on September 5, 2012, he was riding in a vehicle that police attempted to stop following a traffic violation. Johnson admitted that he jumped out of the passenger side of the vehicle, with a gun tucked into his waistband, and ran. Officers spotted the gun when Johnson exited the vehicle and chased him. Johnson was apprehended nearby a short time later. Officers recovered the gun after they used a canine to trace the path Johnson had taken.

Because he is a felon, Johnson is prohibited under federal law from possessing firearms at any time. He was previously convicted in Hennepin County for first-degree aggravated robbery (2005 and 2010), in Ramsey County for theft of a motor vehicle (2003), and in Dakota County for criminal damage to property (2003).

For his crime, Johnson faces a potential maximum penalty of ten years in federal prison. Judge Montgomery will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.

The case was charged under Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. The Hennepin County Attorney’s Office then teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against almost two dozen serious habitual criminals through Project Exile Minneapolis.

 

 

MINNEAPOLIS—Earlier today in federal court, a 46-year-old Fridley man was sentenced for robbing a Discount Tobacco and Groceries retail store at 315 Osborne Road Northeast in Fridley. United States District Court Judge Joan N. Ericksen sentenced Steven Eugene Daniels to 160 months in prison on one count of interference with commerce by robbery pursuant to the Hobbs Act. Daniels was indicted on September 11, 2012, and pleaded guilty on November 27, 2012.

In his plea agreement, Daniels admitted that on June 14, 2012, he and another man, who was carrying a firearm, entered the Discount Tobacco and Groceries store in Fridley. Both men then forced the store clerk to open the cash register. Daniels stole money from the cash register before both robbers fled the store. Daniels was later apprehended.

The Hobbs Act, passed by Congress in 1946, provides for federal jurisdiction for cases involving violent, habitual criminals who commit armed robbery in businesses involved in interstate commerce.

This case was the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anoka County Police Department. It was prosecuted by Assistant U.S. Attorney Richard A. Newberry.

 

 

MINNEAPOLIS—A federal indictment unsealed late yesterday charges two men from the southeastern Minnesota community of Claremont with conspiring to distribute more than 500 grams of methamphetamine. The indictment, which was filed on May 6, 2013, charges Clancy Shane Amy, age 38, and Michael Steven Schoenfelder, age 33, with one count of conspiracy to distribute methamphetamine. In addition, Amy was charged with three counts of distribution of methamphetamine, one count of possession with intent to distribute methamphetamine, and one count of using and carrying a firearm during and in relation to a drug-trafficking crime. The indictment was unsealed following the defendants’ initial appearance in federal court.

The indictment alleges that from at least August 2012 through March 2013, the defendants conspired with others to distribute more than 500 grams of methamphetamine. It also alleges that Amy distributed approximately one ounce of methamphetamine on January 16, January 24, and again on March 15, 2013. In addition, on April 18, 2013, Amy allegedly possessed with intent to distribute approximately four ounces of methamphetamine while in possession of a 12-gauge shotgun; a nine-millimeter, semi-automatic pistol; and a .22-caliber, semi-automatic handgun.

If convicted, the defendants face a potential maximum penalty of life in prison on the conspiracy charge. In addition, Amy faces a potential maximum penalty of 20 years on each distribution count, ten years on the possession count, and a consecutive term of five years to life on the firearm count. Any sentence, of course, would be determined by a federal district court judge.

This case is the result of an investigation by the United States Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, the Minnesota South Central Drug Investigation Unit and the Southeastern Minnesota Gang and Narcotics Task Force. It is being prosecuted by Assistant U.S. Attorney Allen A. Slaughter.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Late yesterday afternoon, a federal-court jury found a 49-year-old Burnsville woman guilty of mailing threatening letters and letters meant to extort money. The jury convicted Deborah Mae Carlson of 12 counts of mailing threatening communications. Carlson was indicted on November 22, 2011.

The evidence presented at trial proved that on eight separate occasions, Carlson sent threatening letters to an individual. The letters were mailed on March 1, March 11, April 5, April 13, April 20, April 27, May 3, and May 24, 2010. All contained threats to injure that individual. She also sent a threatening letter to a second person. Moreover, Carlson mailed letters to various businesses in the first individual’s name.
Those letters, which demanded money, were sent to the store manager of the Eagan Target store on April 14, 2010; the store manager of the Valley Buick Pontiac GMC dealership in Apple Valley on April 15, 2010; and the Scott Lake Veterinary Center in Prior Lake on April 17, 2010.

For her crimes, Carlson faces a potential maximum penalty of 10 years in federal prison on each threat count and a total of 24 years on the three extortion counts. United States District Court Judge John R. Tunheim will determine her sentence at a future hearing, yet to be scheduled.

This case resulted from an investigation conducted by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Minnesota Bureau of Criminal Apprehension’s Forensic Science Laboratory, and the police departments of Lakeville, Apple Valley, Savage, Shakopee, and Eagan. The case was prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.

 

 

MINNEAPOLIS—Yesterday in federal court in St. Paul, a 31-year-old career criminal from St. Paul was sentenced for possessing a 20-gauge sawed-off shotgun. On May 7, 2013, United States District Court Judge Susan Richard Nelson sentenced Michael Allen Smith to 180 months in prison on one count of being a career criminal in possession of a firearm and one count of possession of an unregistered firearm. Smith was indicted on July 17, 2012, and was convicted on December 14, 2012.

The evidence presented at Smith’s three-day trial proved that on April 28, 2012, he possessed an unregistered 20-gauge shotgun with a barrel length of less than 18 inches. Because he is a felon, Smith is prohibited under federal law from possessing firearms at any time. He was previously convicted of assault in the fourth degree in Washington County in both 2005 and 2006 and murder in the third degree in Ramsey County in 2001.

Since Smith’s prior offenses constitute crimes of violence, sentencing in the current federal case was subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison for anyone convicted in federal court of being a felon in possession of a firearm if that person also has at least three prior state or federal convictions for crimes of violence or serious drug crimes. Because the federal criminal justice system does not have parole, Smith will serve virtually the entire sentence imposed in this case behind bars.

This case was the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department. It was prosecuted by Assistant U.S. Attorney Richard Newberry.

The case was charged under Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. The Hennepin County Attorney’s Office then teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against almost two dozen serious habitual criminals through Project Exile Minneapolis.

 

 

MINNEAPOLIS—A federal indictment recently unsealed charges a 52-year-old Red Lake man with distributing and possessing images and videos containing child pornography. The indictment, which was filed on May 7, 2013, charges James Patrick Needham with one count of distribution of child pornography and one count of possession of child pornography. The indictment was unsealed prior to Needham’s initial appearance in federal court earlier today in Duluth.

The indictment alleges that on July 21, 2011, Needham possessed images and videos containing visual depictions of minors engaged in sexually explicit conduct. It also alleges that on August 4, 2010, Needham distributed several images of similar material. More than 1,300 images and 100 videos were found on a computer that was seized during the execution of a search warrant at Needham’s residence on July 21, 2011.

If convicted, Needham faces a potential maximum penalty of 20 years in federal prison for distribution of child pornography, with a mandatory minimum penalty of five years, and ten years in prison for possession of child pornography. Any sentences would be determined by a federal district court judge.

This case is the result of an investigation by the Minnesota Child Exploitation Task Force, sponsored by the Federal Bureau of Investigation, with cooperation from the Red Lake Tribal Police Department. It is being prosecuted by Assistant United States Attorney Laura M. Provinzino.

Distribution and possession of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is 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 was brought as 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 U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue 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.”

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Recently in federal court in St. Paul, a 19-year-old Red Lake man was indicted for assaulting another with a machete while in Redby, a community on the Red Lake Indian Reservation. On May 6, 2013, Dale Clinton White, Jr., was specifically charged with one count of assault resulting in serious bodily harm.

According to a law enforcement affidavit filed in the case, police responded to a reported assault at a Redby residence at 4:00 p.m. on March 22, 2013. There, officers found a man in bed, unconscious, with extensive injuries to his head and arms. Documents on file with the court indicate that witnesses also reported that other people had been in the house prior to the arrival of police. Allegedly, the police then spotted one of those people, later identified as White, as he fled from a neighbor’s house, where he had left behind a machete. The victim suffered several fractures, multiple lacerations, soft tissue damage and hemorrhagic shock.

If convicted, White faces a potential maximum penalty of ten years in federal prison. Any sentence would be determined by a federal district court judge.

This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Clifford B. Wardlaw.

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.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS -- In the District of Minnesota, court action continued this week in two separate cases regarding foreign nationals who entered the United States illegally after being deported as criminals. In each case, the individual was charged with one count of illegal re-entry after removal.

In the first case, U.S. District Court Judge Richard H. Kyle sentenced Milton Gonzalez, age 35, to 36 months in prison. Gonzalez was indicted on June 18, 2012, and pleaded guilty on July 24, 2012. In his plea agreement, Gonzalez admitted that on May 7, 2012, he was found in the U.S. after having been deported to Mexico in 2005, following a Wisconsin conviction for possession with intent to distribute amphetamine.

Most recently, Gonzalez was stopped for speeding by Prairie Island, Minnesota, tribal police and arrested on active warrants for possession and sale of counterfeit checks. He was in the Dakota County jail when he was identified as an illegal alien with a criminal record. That identification was made though the ICE’s Criminal Alien Program (“CAP”). The goal of that program is to locate criminal aliens incarcerated in federal and state prisons, as well as in local jails, and prevent them from being released into society by having them federally prosecuted for illegally re-entry. In some instances, federal prosecution occurs only after the individual has been prosecuted for the recent underlying offense.

This case was the result of an investigation by ICE’s Enforcement and Removal Operations (“ICE ERO”). It was prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw and Special Assistant U.S. Attorney Colin P. Johnson.

In the second case, on May 7, 2013, Noe Castro-Coj, age 41, pleaded guilty before U.S. District Court Chief Judge Michael J. Davis. He was indicted on March 11, 2013. In his plea agreement, Castro-Coj admitted that on February 5, 2013, he was found in the U.S. after having been deported to Guatemala in 2003, following a 2000 Kansas conviction for kidnapping. On February 5, 2013, Castro-Coj was arrested in Steele County for violating an order for protection. On February 7, 2013, ICE was notified that he was in jail.

For his crime, Castro-Coj faces a potential maximum penalty of 20 years. Judge Davis will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Steele County Sheriff’s Office and ICE ERO. It is being prosecuted by Assistant U.S. Attorney Andrew Dunne.

In some instances, federal prosecution occurs only after the individual has been prosecuted for the recent underlying offense. Both men will be deported after serving their federal sentences. To learn more about the CAP, visit www.ice.gov/criminal-alien-program/

 

 

MINNEAPOLIS—Recently in federal court in St. Paul, a 26-year-old felon from Bloomington was indicted for possessing firearms on two occasions. On May 6, 2013, William Daniel Sewell was charged with three counts of being a felon in possession of a firearm.

The indictment alleges that on October 12, 2012, Sewell possessed a nine-millimeter, semi-automatic pistol and a .40-caliber pistol. Police stopped Sewell’s vehicle on a traffic violation, and saw the .40-caliber pistol on the floor by the driver’s side seat. Then, when they searched the vehicle, they found the nine-millimeter pistol in the glove compartment. In addition, the indictment states that on March 29, 2013, Sewell again possessed a nine-millimeter, semi-automatic pistol. Because he is a felon, Sewell is prohibited under federal law from possessing a firearm or ammunition at any time. His prior convictions include second-degree burglary in Anoka County (2010) and fleeing a police officer in Hennepin County (2010).

According to a law enforcement affidavit filed in the case, police responded to a reported fight inside a Minneapolis restaurant on March 29, 2013. At the scene, officers also checked out a nearby parking lot, where a group of men had gathered. As they approached the group, one of the men, later identified as Sewell, started to walk away. When police ordered him to stop, the man began to run, crossing traffic on Lyndale Avenue South. Officers pursued him and saw the pistol fall from his person onto the street.

If convicted, Sewell faces a potential maximum penalty of ten years in federal prison. Any sentence would be determined by a federal district court judge.

This case is the result of an investigation by the Minneapolis Police Department, the Hennepin County Sheriff’s Office, and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Julie E. Allyn.

The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against almost two dozen serious habitual criminals through Project Exile Minneapolis.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Earlier today in federal court in St. Paul, a 42-year-old Minneapolis man pleaded guilty to the December 20, 2011, robbery of the US Bank in Little Canada. Reginald Haney pleaded guilty to one count of bank robbery. Haney, who was indicted on February 14, 2012, entered his plea before United States District Court Judge Richard H. Kyle.

In his plea agreement, Haney admitted he stole approximately $2,333 from the bank. During the robbery, he admittedly handed a teller a note that stated she should give him “everything in the top drawer.” After receiving the money, he then exited the building.

According to a law enforcement affidavit filed in the case, witnesses saw Haney leave the scene in a red truck. The truck’s license plate was recorded by surveillance video. Officers found the truck in the parking lot of a Maplewood apartment complex later that day. At approximately 6:30 p.m., officers then observed Haney and a woman drive off in that same truck. Police attempted to conduct a traffic stop, but the truck sped away. Shortly thereafter, the truck stopped, the female passenger got out, and the truck sped off again.

Following a 6.5-mile pursuit by police, the truck stopped in another Maplewood parking lot. Haney exited the vehicle and briefly fled on foot before being apprehended. At the time of his arrest, authorities found $1,079.13 in the front pocket of Haney’s pants. During the execution of a search warrant at the Maplewood apartment where Haney’s female companion lived, officers seized clothing that matched what had been worn by the robber.

For his crime, Haney faces a potential maximum penalty of 20 years in prison. Judge Kyle will determine his sentence at a future hearing. This case is the result of an investigation by the Federal Bureau of Investigation and the police departments of Little Canada and Maplewood. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.

 

 

MINNEAPOLIS—Earlier today in federal court in St. Paul, a 34-year-old Mexican national was indicted for entering the United States illegally after being deported as a criminal. Eduardo Asuncion Gallardo-Gutierrez was specifically charged with one count of illegal re-entry after deportation.

The indictment alleges that on April 10, 2013, Gallardo-Gutierrez, also known as Carlos Meza, was found in the U.S. after having been deported to Mexico in 2004, following a 1998 Iowa conviction for burglary in the third degree. On April 10, 2013, ICE-Homeland Security Investigation officers encountered Gallardo-Gutierrez while they were executing search warrants in Rochester on another matter.

If convicted of the federal charges now levied against him, Gallardo-Gutierrez faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district court judge.

This case is the result of an investigation by ICE’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney Andrew Dunne.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS— Earlier today in federal court in St. Paul, a 49-year-old Minneapolis man, previously dubbed by law enforcement as “the man-in-black bank robber,” pleaded guilty to five bank robberies that occurred in Minnesota between March 9, 2011, and January 3, 2012. In entering his plea, Mark Edward Wetsch also admitted responsibility for 25 additional bank robberies that occurred in 2011. Previously, on April 22, 2013, he pleaded guilty to one count of armed bank robbery, which occurred on January 3, 2012, in Brewster, Minnesota. He entered his plea today before United States District Court Judge Susan Richard Nelson.

Pursuant to a plea agreement, Wetsch pled guilty to robbing five banks, in each case admitting that he wore a black mask and brandished a firearm believed to be real. Wetsch stole $9,350 from the First National Bank in Hastings on December 27, 2011; $3,634 from the Wells Federal Bank in St. Peter on December 22, 2011; $3,801 from the Premier Bank in Albertville on November 9, 2011; $9,445 from the Merchants Bank in Hampton on May 13, 2011; and $3,050 from the United Educators Credit Union in Eden Prairie on April 26, 2011. In addition to the 6 bank robberies for which Wetsch pled guilty, Wetsch admitted taking a total of more than $110,000 in the 31 bank robberies that he committed in 2011.

Those additional robberies include—
December 29, 2011 Glenwood State Bank of Alexandria $3,200 stolen
December 20, 2011 Franklin Bank of Minneapolis 2,350 stolen
December 14, 2011 M&I Bank of St. Paul 1,645 stolen
December 7, 2011 Premier Bank of Bloomington 850 stolen
December 5, 2011 US Bank of Hopkins 3,106 stolen
November 30, 2011 Central Bank of Minneapolis 803 stolen
November 22, 2011 Bremer Bank of Minneapolis 2,907 stolen
November 13, 2011 TCF Bank of Arden Hills 4,900 stolen
November 9, 2011 Richfield Bloomington Credit Union attempted robbery
November 4, 2011 First National Bank of Lakes, Richfield 8,823 stolen
November 1, 2011 Paragon Bank of Shakopee 1,444 stolen
October 22, 2011 Prior Lake State Bank, Prior Lake 7,200 stolen
June 13, 2011 First National Bank of Minnesota of
Gaylord 6,946 stolen
June 3, 2011 Sherburne State Bank, Clear Lake 3,000 stolen
April 26, 2011 Wells Fargo Bank, Faribault 2,225 stolen
April 26, 2011 Richfield Bloomington Credit Union attempted robbery
April 14, 2011 US Federal Credit Union of Northfield 5,280 stolen
April 11, 2011 Sterling State Bank of Savage 1,885 stolen
March 9, 2011 Klein Bank of Cologne 11,400 stolen
March 7, 2011 Bremer Bank of Minneapolis 2,030 stolen
February 17, 2011 First National Bank of Orono 4,000 stolen
February 10, 2011 United Educators Credit Union of
Columbia Heights 1,500 stolen
February 9, 2011 US Bank of St. Paul 1,000 stolen
February 4, 2011 Central Bank of Minneapolis 1,056 stolen
January 11, 2011 Bremer Bank of Minneapolis 6,000 stolen

Wetsch remains in custody. Pursuant to the plea agreement, the government is seeking a prison sentence of 14 years. Since the federal criminal justice system does not have parole, defendants serve virtually their entire sentence behind bars. Judge Nelson will determine Wetsch’s actual sentence at a future hearing, not yet scheduled.

This case is the result of an investigation by the Federal Bureau of Investigation and the police departments of Alexandria, Bloomington, Columbia Heights, Eden Prairie, Faribault, Gaylord, Hastings, Hopkins, Minneapolis, Northfield, Orono, Prior Lake, Richfield, Savage, St. Paul, St. Peter, and Shakopee; the sheriff offices of Carver, Dakota, Hennepin, Ramsey, Nicollet, Nobles, Sibley, and Wright counties, with assistance from the Minnesota State Patrol. The case is being prosecuted by Assistant U.S. Attorneys Deidre Y. Aanstad and Kevin S. Ueland.

 

 

MINNEAPOLIS—Earlier today in federal court in Minneapolis, a North Oaks couple was sentenced for committing health-care fraud, specifically making false statements to garner, county, state, and federal benefits and assistance for their disabled children. James N. Hood, age 69, was sentenced to 42 months in federal prison and ordered to pay a $200,000 fine on one count of mail fraud, one count of health care fraud, and one count of theft of public money. His wife, Cynthia Marsalis Hood, age 55, was ordered to serve three years of probation and pay a $300,000 fine on one count of mail fraud and one count of making a false statement for use in determining rights to Social Security benefits. The couple was also ordered to pay restitution in the total amount of $483,312.82 to the agencies victimized by this crime. The Hoods were charged on October 1, 2012, and pleaded guilty on October 24, 2012.

In sentencing the couple, U.S. District Court Judge Joan N. Ericksen reiterated that this was not a victimless crime. She said these programs were meant for people in financial need, and because of the wrongdoing of the Hoods and other fraudsters, these programs could become at risk. She also said that the couple clearly knew right from wrong and took this action for their own personal gain.

Following today’s sentencing, Daniel Seymour, Resident Agent in Charge of the Social Security Administration-Office of Inspector General’s (“SSA-OIG”) St. Paul Office, said, “SSA-OIG worked with federal, state, and local law enforcement partners to bring the investigation of James and Cynthia Hood to a successful conclusion. That investigation revealed that the Hoods, despite owning more than $10 million in investments, property and more, stole more than $80,000 in Supplemental Security Income (“SSI”) payments from the federal government. SSI provides a base-level, safety net income for uninsured aged, blind, or disabled individuals with very limited income or resources. The successful prosecution of this case demonstrates what can be accomplished when law enforcement partners work together to combat fraud, waste, and abuse of taxpayer dollars. SSA-OIG is gratified to see this case brought to justice, and is committed to continuing to protect SSA programs from fraud.”

The court documents on file in this case provide that during a five-year period, from January 2006 to April 2011, the couple stole approximately $400,000 in state and federal Medicaid money in addition to the $80,000 in Social Security benefits noted above. To that end, James Hood prepared false federal income tax returns that Cynthia Hood joined him in signing. Those returns were the basis of subsequent benefit applications. In addition, the couple offered false information in the benefit applications themselves, during related in-person interviews, and through income-update forms.

“Our publicly funded programs are meant to serve those in need and every dollar stolen is a dollar taken from a struggling family. Today’s sentencings send a clear message that fraud, waste, and abuse of public funds is not a victimless crime and will not be tolerated in Minnesota,” said Minnesota Department of Human Services Inspector General Jerry Kerber. “Today’s sentencings are the result of an on-going collaborative effort between federal, state, and county governments to fight fraud and abuse in health care and together we will continue to enforce the integrity of public programs.”

Following Hurricane Katrina in 2005, the Hood family, residents of New Orleans at the time, visited several states and eventually decided that Minnesota provided a high quality of life and the best health care and educational resources for their disabled children. After they moved to Minnesota, they applied for a variety of aid on behalf of those children, including, but not limited to federal Social Security supplemental income benefits, State Medical Assistance, Cost-Effective Health Insurance, and Community Alternatives for Disabled Individuals. They also obtained medical insurance assistance from Louisiana.

Eligibility for many benefit programs is based on the applicant’s disabilities and, for children, the parents’ income and resources as well as their financial contributions. To receive Social Security Supplemental Security Income benefits, for example, a single applicant cannot own more than $2,000 in income and assets, excluding a house and vehicle. To secure benefits for themselves, the Hoods falsified government documents and lied to government officials.

Lamont Pugh III, Special Agent in Charge of the U.S. Department of Health and Human Services-Office of Inspector General for the region that includes Minnesota, said of the case, “The Hoods seem to have forgotten that Medicaid exists for the country’s most needy citizens, not to enrich those who have achieved financial security. We will continue to work with our federal, state, and local law enforcement partners to ensure that these health care dollars are protected, and criminals who would defraud taxpayers are held accountable.”

During all times relevant to this case, James Hood was the sole heir to family estates and held substantial stock in AT&T, General Electric, and Exxon Mobil, among other companies. His dividend income totaled as much as $156,000 in a given year. He also maintained more than 65 bank accounts, which netted up to $183,000 in interest income annually. Moreover, he owned Iowa farmland and received farm-related payments from the U.S. Department of Agriculture’s Farm Service Agency as well as the State of Iowa. In 2005, the farm yielded Hood income of $187,910.98, but no farm-related values or incomes were reported in his benefit applications or income updates. Likewise, he failed to disclose significant financial gifts received from family trusts. During much of this time, James Hood also served as a professor at Tulane University.

Yet, in 2005, the couple applied for Medical Assistance and, in their application, listed only James Hood’s teaching salary and a small amount of dividend income. Moreover, when they applied for health insurance assistance, they failed to disclose that they were simultaneously seeking and receiving insurance assistance from the State of Louisiana.

In addition, Cynthia Hood repeatedly made false statements to the SSA in support of her children’s continued eligibility for Social Security Supplemental Security Income. Specifically, in 2006, she stated that her husband lived in Louisiana. She falsely reported that she did not own any homes, vehicles, stocks, bonds, or property. And she reported that she only had one bank account with a balance of $1,400. In fact, at the time, Cynthia Hood held at least 16 bank accounts jointly with James Hood. Later, she reported to the SSA that her Minnesota household only consisted of herself and her three children, claiming her husband lived in Iowa. In truth, her husband was living with her and financially supported the household.
In 2007, the couple submitted a renewal application with the Minnesota Health Care Program, which stated that James Hood was on unpaid leave from Tulane. In that document, the only income indicated was the children’s Social Security disability benefits. Similar statements were also made thereafter.

Ramsey County Attorney John Choi said, “I am grateful for the hard work that my staff put into investigating and confirming the facts of this case prior to handing it onto the U.S. Attorney’s Office. We take fraud very seriously and are especially thankful for the cooperative working relationship with the (Minnesota) Department of Human Services in this investigation.”

This case was the result of an investigation by the SSA-OIG, the U.S. Department of Health and Human Services’ Office of Inspector General, the Minnesota Department of Human Services’ Office of Inspector General, and the Ramsey County Attorney’s Office. It was prosecuted by Assistant U.S. Attorney Laura M. Provinzino.

 

 

MINNEAPOLIS—Last week in federal court, a 64-year-old woman from the southeastern Minnesota community of Wykoff was charged with embezzling approximately $35,520 from the Security State Bank where she was employed as the head teller. On May 3, 2013, Cheryl Lynn Holzer was charged with one count of bank embezzlement.

Allegedly, between December 2010 and February 2012, Holzer took bundles of cash from the bank’s vault for her personal use. She worked at the bank, located in Wykoff.

If convicted, Holzer faces a potential maximum penalty of 30 years in prison. Any sentence will be determined by a federal district court judge. This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Thomas Calhoun-Lopez.

A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS-- Earlier today in federal court, a 43-year-old Texas man was sentenced in connection with the operation of a phony invoice scheme that defrauded an Eagan-based company out of more than $600,000. United States District Court Judge Patrick J. Schiltz sentenced Clayton Craig Hogeland, of Aurora, Texas, to 200 months in prison on five counts of mail fraud, two counts of conspiracy to commit mail fraud, two counts of conspiracy to commit money laundering, and three counts of tax evasion. Hogeland was indicted, along with two others, on March 17, 2010, and was convicted on December 6, 2011.

Judge Schiltz also found that Hogeland had obstructed justice by faking a life-threatening medical condition, which caused multiple delays to both his trial and sentencing hearing. Hogeland cited this condition in a motion seeking a reduction in his sentence. Judge Schiltz concluded that Hogeland faked this illness by ingesting high levels of potassium, and found that Hogeland’s conduct justified a substantial upward variance in his sentence. Judge Schiltz said that Hogeland’s actions reflected “an unfathomable dishonesty and audacious selfishness.”

The evidence presented at trial proved that from January 2003 through April 2005, Hogeland conspired with others, including Jeffrey Cole Bennett, to defraud Advantage Transportation, a freight transportation logistics provider headquartered in Eagan. Advantage contracts with customers who have freight to be transported as well as with trucking companies willing to move that freight. Hogeland was Advantage’s general manager, and in May of 2003, he hired his friend Bennett to be the sales manager for the company’s Tennessee office, where he remained employed through September of 2006. Bennett was also charged in the fraud case.

Following today’s sentencing, Kelly R. Jackson, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation’s St. Paul Field Office, said, “The IRS enforces the nation’s tax and money laundering laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others. Today’s sentencing of Mr. Hogeland shows how seriously the courts take federal tax and money laundering crimes.”

Craig I. Goldberg, Acting Postal Inspector in Charge of the Denver Division, which also covers the Twin Cities, added, “Postal inspectors will continue to protect the integrity of the U.S. Postal Service and aggressively investigate those cases where the U.S. mails are used to defraud individuals or businesses of money and property.”

To perpetrate the fraud, Bennett submitted false invoices to Advantage for nonexistent goods and services from four shell companies he formed: Air Catering Solutions and Marketing, Inc. (ACS Marketing), American Logistics Advisors, LTL Development.com, and Transportation Marketing Concepts. Bennett formed three of those companies for the sole purpose of conducting the fraud scheme. Payment of the invoices was then approved by Hogeland, who also caused checks to be issued to the shell companies, knowing the invoices were fraudulent. Between January of 2003 and April of 2005, those payments totaled more than $390,000.

Bennett kept approximately $250,000 of that money for himself, while paying out about $140,000 in kickbacks to Clayton Hogeland. To conceal those kickbacks, Bennett made the payments via checks issued to Clayton Hogeland’s wife, Jennifer Hogeland, who endorsed and deposited the checks into the couple’s joint bank account. In addition, Clayton Hogeland and Bennett routed the proceeds of the phony invoice scheme through Bennett’s shell companies, knowing the transfers were designed to conceal the fact that the money was obtained by fraud.

While employed by Advantage, Clayton Hogeland also orchestrated a second scheme to run false “commission” payments through fictitious companies formed by two other co-conspirators. That scam occurred after Advantage began providing freight transportation services to an airline company in 2003. Carl Frey, one of the co-conspirators, was employed by the airline and was responsible for arranging contracts with over-the-road shipping companies. At the direction of Hogeland, Frey formed a company, Flite Time, which Hogeland falsely characterized as a consultant, to be paid commissions from Advantage for freight assigned by the airline.

As a result, between 2003 and 2005, Frey was paid more than $90,000 in false “commissions” from Advantage, and Clayton Hogeland received $22,000 of that money in the form of kickbacks. All but two of the kickback payments were made by checks issued to Jennifer Hogeland, who deposited the funds into the couple’s joint bank account. The remaining two checks were issued in Clayton Hogeland’s own name.

In 2005, Hogeland and Frey became concerned that Frey’s name was being associated with
Flite Time. Therefore, Hogeland recruited a second co-conspirator, William Gregory Braswell, to form a company that would replace Flite Time. That company, Air Cargo Consultants, began receiving the commission payments in 2005. Between 2005 and 2006, more than $180,000 in false commissions were paid by Advantage to Air Cargo Consultants. Out of those funds, Clayton Hogeland and Frey received $30,000 each. Again, payments were made by checks issued to Jennifer Hogeland.

In addition, Clayton and Jennifer Hogeland failed to report to the Internal Revenue Service or pay taxes on the money obtained through the two fraud schemes during tax years 2003 through 2005. However, after learning that the IRS was conducting a criminal tax investigation, the Hogelands sought to cover up their willful tax evasion by filing amended tax returns for tax years 2003 and 2004.

For his part, Bennett also failed to report or pay to the Internal Revenue Service (“IRS”) taxes on the money he obtained through the fraud scheme during tax years 2004 and 2005. After learning that the IRS was conducting a criminal tax investigation, he, like the Hogelands, sought to cover up his willful tax evasion by filing amended tax returns that included the fraud income.

On November 13, 2012, Bennett was sentenced to 95 months in federal prison for his role in the scheme. In February 2012, Braswell and Frey were sentenced, each to three years of probation. On January 10, 2013, Jennifer Hogeland was sentenced to 15 months in prison on three counts of conspiracy to commit tax evasion.

This case was the result of an investigation by the U.S. Postal Inspection Service and the IRS-Criminal Investigation. It was prosecuted by Assistant U.S. Attorneys Tim Rank and Julie E. Allyn.

This law enforcement action is in part sponsored by the interagency Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. It includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and, with state and local partners, investigates and prosecutes significant financial crimes, ensures just and effective punishment for those who perpetrate financial crimes, combats discrimination in the lending and financial markets, and recovers proceeds for victims of financial crimes.

 

 

MINNEAPOLIS—Yesterday in federal court, a 33-year-old Oakdale man was sentenced for his role in a mortgage fraud scheme that caused losses to lenders exceeding $7 million. On May 2, 2013, United States District Court Judge David S. Doty sentenced Bryan Joseph Lenton to three years of probation on one count of conspiracy to commit mortgage fraud through interstate wire. Lenton was indicted, along with two others, on December 7, 2010, and pleaded guilty on March 8, 2011. He cooperated with authorities in the prosecution of his co-defendant, John Anthony Spencer, and in the investigation and cooperation of James Hoffman, another mortgage fraud defendant currently serving a 78-month sentence.

In his plea agreement, Lenton, a real estate appraiser, admitted he provided appraisals for properties that falsely inflated market values in order to create a pool of funds to be split among him, his co-defendants, and straw buyers.

The scam, orchestrated by Spencer, involved brokering fraudulent loans that were used by recruited purchasers to buy residential real estate at inflated prices. The transactions generated proceeds that greatly exceeded what the sellers were content to accept as full payment for their properties. The excess money was split up among the buyers Spencer recruited as well as Spencer himself and accomplices he solicited in an effort to bring the transactions to fruition.

The properties included six single-family homes in north Minneapolis, five residential condominium units located on Fisk Avenue in St. Paul, four condo units located on Dayton
Avenue in St. Paul, a home in Albertville, Minnesota, and two investment properties located in north Minneapolis.

Spencer, a mortgage broker at Minnesota One Mortgage, agreed to assist the owner of a five-plex condominium unit on Fisk Street in St. Paul to sell those units. To that end, Spencer recruited Lenton to appraise each of the units at substantially more than the owner of the units was willing to accept as full payment for them. Spencer then recruited straw buyers to purchase the units with loan proceeds obtained via fraudulent loan applications prepared by Spencer and
Patrick Arthur Dols, another mortgage broker.

On October 31, 2011, Spencer, age 33, of Albertville, was sentenced to 125 months in prison on one count of conspiracy, ten counts of wire fraud, one count of bank fraud, and one count of money laundering. He was convicted on June 2, 2011, after a three-week jury trial.

On November 29, 2012, Dols, age 40, of Minneapolis, was sentenced to one year and one day in prison on one count of conspiracy. He pleaded guilty on March 1, 2011. In his plea agreement, Dols admitted that his role in the conspiracy was to take fraudulently drafted loan applications in the names of various straw buyers and find lenders willing to make mortgage loans based on the false information he was providing.

This case was the result of an investigation by the Internal Revenue Service-Criminal
Investigation. It was prosecuted by Assistant U.S. Attorney David J. MacLaughlin.

The U.S. Attorney’s Office wants to remind people to protect themselves from mortgage fraud. For more information, visit http://www.stopfraud.gov/protect-mortgage.html.

 

 

MINNEAPOLIS—Yesterday in federal court, a 48-year-old man pleaded guilty to being a habitual offender who committed domestic assault against a woman on the Bois Forte Indian Reservation. On April 30, 2013, Mark Allen Isham specifically pleaded guilty to one count of domestic assault by an habitual offender. Isham, who was indicted on December 3, 2012, entered his plea before United States District Court Judge David S. Doty. This is the third time the U.S. Attorney’s Office for the District of Minnesota has prosecuted someone under the federal “domestic assault by an habitual offender” statute.

In his plea agreement, Isham admitted that on August 22, 2012, he struck the victim and threw her to the ground, causing bodily injury. The assault followed at least two prior convictions in Bois Forte Tribal Court for similar crimes. They occurred in 2004, 2008, and 2010.

The federal law that governs domestic assault by a habitual offender was enacted by Congress in 2006 in support of the Violence Against Women Act of 2000. The 2006 statute is a valuable tool for federal prosecutors because research shows that many domestic violence offenders are repeat offenders.

This statute is of particular importance in Indian Country because domestic violence rates are far greater there than in the country at large. In 2005, Congress reported that one in three American Indian women is raped during her lifetime. American Indian women are also 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” for prosecution involving domestic violence, sexual assault, and stalking.

For his crimes, Isham faces a potential maximum penalty of five years in federal prison. Judge Doty will determine his sentence at a future hearing, not yet scheduled.

This case is the result of an investigation by the Federal Bureau of Investigation and the Bois Forte Tribal Police Department. It is being prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.

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

 

 

MINNEAPOLIS—Yesterday in federal court in Duluth, a 37-year-old Cold Spring man was sentenced for possessing methamphetamine with the intent to distribute it and for being an illegal alien in possession of a firearm. On April 30, 2013, United States District Court Chief Judge Michael J. Davis sentenced Tomas Hermosillo Marquez to 120 months in federal prison on one count of possession with intent to distribute methamphetamine and one count of possession of a firearm by an illegal alien. Marquez was indicted on October 15, 2012, and pleaded guilty on December 13, 2012.

In his plea agreement, Marquez acknowledged that on September 21, 2012, police officers found several packages of methamphetamine, totaling approximately 900 grams, in his trailer house in Cold Spring, Minnesota. The discovery was made while the officers were executing an early morning state search warrant. The police also found a .22-caliber revolver, ammunition, a digital scale, packaging materials, and $4,615 in cash. In addition, the police recovered MSM and inositol, common cutting agents for methamphetamine. Marquez subsequently acknowledged that he had intended to distribute the methamphetamine to another person; that he possessed the gun in connection to his drug trafficking activities; and that he was an illegal alien.

This case was the result of an investigation by the Central Minnesota Violent Offender Task Force and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst. To learn more about the harmful effects of methamphetamine, visit http://www.justice.gov/dea/concern/meth.html.

 

 

MINNEAPOLIS—Yesterday in federal court in Duluth, a 46-year-old man from the Red Lake Indian Reservation community of Ponemah pleaded guilty in connection with the August 19, 2012, death of Kaishauna Thunder. On April 29, 2013, Gordon Dean Johnson pleaded guilty to one count of involuntary manslaughter. Johnson, who was indicted on January 8, 2013, entered his plea before United States District Court Chief Judge Michael J. Davis.

In his plea agreement, Johnson admitted that during the early morning of August 19, 2012, he killed Thunder without malice. Specifically, Johnson was operating a motor vehicle in a reckless manner, while under the influence of alcohol, when he struck Thunder, who was walking alongside State Highway 1.

For his crime, Johnson faces a potential maximum penalty of eight years in prison. Judge Davis will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Federal Bureau of Investigation and the Red Lake Tribal Police Department. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.

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.

 

 

MINNEAPOLIS—Earlier today in federal court, an inmate who last month escaped from the Federal Prison Camp in Duluth was charged with one count of escape from custody. Gerald James Greenfield, age 67, of Bloomington, was apprehended following six days on the run.

On March 30, 2013, Greenfield reportedly escaped from the Federal Prison Camp in Duluth. He was serving a 50-month sentence following a 2012 conviction in the District of Minnesota for conspiracy to commit money laundering. According to a law enforcement affidavit filed in the current case, Greenfield was present for a prisoner count at 4:00 p.m. on March 30. However, he was not present for the prisoner count at 10:00 p.m. that evening. On April 5, 2013, law enforcement officials apprehended him at a hotel in Burnsville.

If convicted, Greenfield faces a potential maximum penalty of five years in prison, which could be added to his current sentence. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the United States Marshals Service. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.

A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Earlier today in federal court, a 39-year-old Faribault man was sentenced for fraudulently writing 127 company checks to himself. United States District Court Judge David S. Doty sentenced Ronald Leo Schaeffer to 33 months in federal prison on one count of bank fraud in connection to the crime. Schaeffer was charged on December 6, 2012, and pleaded guilty on January 16, 2013.

In his plea agreement, Schaeffer admitted that from August of 2008 through April of 2012, he stole approximately $432,504.10 from his employer, Environmental Tillage Systems, Inc. (“ETS”). ETS, an agricultural manufacturing company in Faribault, hired Schaeffer as its sole in-house accountant. Among other duties, he was responsible for using the QuickBooks accounting software to record information regarding payments owed by ETS to vendors and employees.

Schaeffer admittedly wrote approximately 127 fraudulent checks against the ETS checking account, in amounts ranging from approximately $400 to $12,000, for deposit into his personal account. To conceal his actions, he then made false entries in ETS’s QuickBooks accounting records, indicating that the checks were issued to legitimate ETS vendors when that was not the case.

For a period of time, Schaeffer had the authority to use a signature stamp to validate company checks. Beginning in November of 2010, however, he was directed to obtain the actual signature of ETS’s CEO or CFO on all checks before disbursing them. From that point on, he forged the signature of the CEO or CFO on any check that he wrote to himself. Schaeffer used the money he stole from the company to build a lake home in Elysian, Minnesota, and to make payments on his auto and home-equity loans.

This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Benjamin F. Langner.

 

 

MINNEAPOLIS—Earlier today in federal court in Duluth, a 41-year old Wahpeton, North Dakota, man pleaded guilty to distributing child pornography. William Robert Upshaw pleaded guilty to one count of distribution of child pornography. Upshaw, who was indicted on December 3, 2012, entered his plea before United States District Court Chief Judge Michael J. Davis.

In his plea agreement, Upshaw admitted that on August 19, 2011, he distributed one or more items that contained visual depictions of minors engaged in sexually explicit conduct. In addition, Upshaw admitted that his possessed approximately 75,775 images and 1,880 videos of child pornography, some of which portrayed sadistic or masochistic conduct or other depictions of violence.

For his crime, Upshaw faces a potential maximum penalty of 40 years in federal prison, with a mandatory minimum penalty of 15 years. Judge Davis will determine his sentence at a future hearing, yet to be scheduled.

This case is the result of an investigation by the Minnesota Child Exploitation Task Force, sponsored by the Federal Bureau of Investigation, and the Moorhead Police Department. It is being prosecuted by Assistant U.S. Attorney Laura M. Provinzino.

Distribution of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is 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 was brought as 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 U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue 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.”

 

 

MINNEAPOLIS—A federal indictment unsealed yesterday charges a 30-year-old Red Lake man for running a vehicle driven by a woman off the road while on the Red Lake Indian Reservation. The indictment, which was filed on April 22, 2013, charges Tony Lee Lussier with one count of assault with a dangerous weapon. The indictment was unsealed following Lussier’s initial appearance in federal court.

The indictment alleges that on May 12, 2012, Lussier assaulted the woman with intent to do bodily harm, with a motor vehicle. The woman was driving a Pontiac Bonneville, which was allegedly forced off the road by Lussier who was driving a gray van.

If convicted, Lussier faces a potential maximum penalty of ten years in prison. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Laura M. Provinzino.

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.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Yesterday in federal court, a 27-year-old Redby man was sentenced for possessing a 12-gauge, sawed-off shotgun. On April 24, 2013, United States District Court Judge John R. Tunheim sentenced Timothy Clarence Stately to 84 months in prison on one count of being a felon in possession of a firearm. Stately was indicted on April 3, 2012, and pleaded guilty on August 23, 2012.

In the plea agreement, Stately admitted that between May 29 and 31, 2011, he possessed a 12-gauge, sawed-off shotgun with an obliterated serial number. At a minimum, he had possession of the gun during the late evening of May 30, 2011, through the early morning of May 31, 2011. During that time, he admittedly participated in numerous felony offenses, including shooting into two occupied dwellings, shooting at another residence as well as a retail establishment, and burglarizing and setting fire to a trailer home. Because he is a felon, Stately is prohibited under federal law from possessing firearms or ammunition at any time. He was previously convicted of second-degree assault with a dangerous weapon.

This case was the result of an investigation by the Red Lake Tribal Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.

 

 

MINNEAPOLIS—Recently in federal court, a 59-year-old Minneapolis felon was indicted for possessing a nine-millimeter pistol as well as heroin. On April 22, 2013, Robert Lee Powers was specifically charged with one count of being a felon in possession of a firearm and one count of possession with intent to distribute heroin. Earlier today, Powers had his initial appearance in federal court.

The indictment alleges that on March 18, 2013, Powers possessed the pistol as well as a detectable amount of heroin. Because he is a felon, he is prohibited under federal law from possessing a firearm at any time. He was previously convicted in Hennepin County for third-degree sale of crack cocaine (1989), offering a forged check (1992), fourth-degree sale of crack cocaine (1992), attempted first-degree criminal sexual conduct (1992), a third-degree controlled substance crime (2000), an attempted fifth-degree controlled substance crime (2004 and 2005), a fifth-degree controlled substance crime (2008 and 2009), and theft of a motor vehicle (2009). In addition, Powers was convicted in Washington County for conspiracy to commit a controlled substance crime (1996) and being a predatory offender providing false information (2005).

Because at least three of these convictions constituted violent crimes or major drug crimes, Powers is subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison for anyone subsequently convicted under federal law for being a felon in possession of a firearm or ammunition. In addition, Powers faces a potential maximum penalty of 20 years in federal prison for possession with intent to distribute heroin. Any sentences will be determined by a federal district court judge.

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

The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than a dozen serious habitual criminals through Project Exile Minneapolis.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—A federal indictment unsealed yesterday charges a 28-year-old Minneapolis felon with possessing a .38-caliber revolver. The indictment, which was filed on April 22, 2013, charges Paul McCurry with one count of being a felon in possession of a firearm. The indictment was unsealed following McCurry’s initial appearance in federal court.

The indictment alleges that on March 26, 2013, McCurry possessed the handgun. Because he is a felon, McCurry is prohibited under federal law from possessing a firearm at any time. McCurry was previously convicted in Hennepin County for aggravated robbery (2005), fleeing police in a motor vehicle (2005), and domestic assault by strangulation (2008). Because those convictions constituted crimes of violence, McCurry is now subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm or ammunition.

This case is the result of an investigation by the Minneapolis Police Department, and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.

The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than a dozen serious habitual criminals through Project Exile Minneapolis.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS— Yesterday in federal court, a jury found a 36-year-old felon guilty of possessing a .40-caliber, semi-automatic pistol. Following a three-day trial, a jury convicted Demario Kentrell Booker, of Minneapolis, of one count of illegally possessing a firearm after being previously convicted of a felony and while being an unlawful user of and addicted to a controlled substance.

The evidence presented at trial proved that on November 20, 2012, Booker, an admitted drug addict, possessed the pistol. A law enforcement affidavit filed in the case indicated that at approximately 2:06 a.m. on that day, officers noted that a vehicle, later found to be driven by Booker, had failed to signal a turn and had crossed the center line. Booker, however, refused to pull over and, instead, led the police on a high-speed chase. The police recovered the gun from inside the vehicle.

Because he is a felon, Booker, also known as Gary White, is prohibited under federal law from possessing a firearm or ammunition at any time. His prior convictions in Hennepin County include assault in the third degree (2004), assault in the fourth degree (2008), and being a prohibited person in possession of a firearm (2009).

For his crimes, Booker faces a potential maximum penalty of ten years in federal prison. United States District Court Judge John R. Tunheim will determine his sentence at a future hearing, yet to be scheduled.

This case was the result of an investigation by the Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Richard Newberry.

The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than a dozen serious habitual criminals through Project Exile Minneapolis.

 

 

MINNEAPOLIS—Earlier today in federal court, a 32-year-old woman incarcerated at the Federal Correctional Institute in Waseca, Minnesota, pleaded guilty to stealing more than $23,000 in Social Security benefits. Nefertiti Randall specifically pleaded guilty to one count of theft of government money or property. Randall, who was indicted on January 22, 2013, entered her plea before United States District Court Judge John R. Tunheim.

In her plea agreement, Randall admitted that from June 12, 2009, through April 2012, she stole $23,012 from the Social Security Administration (“SSA”). The funds, which were automatically deposited into a bank account accessible to both Randall and her mother, represented benefits intended solely for Randall’s mother. Her mother died in June of 2009, and in August of 2009, Randall began serving an unrelated, multi-year, identity-theft sentence at the Federal Correctional facility in Waseca. According to the indictment, Randall nonetheless continued to access her mother’s social security benefits until spring of 2012.

For her crime, Randall faces a potential maximum penalty of ten years in prison. Judge Tunheim will determine her sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the SSA-Office of Inspector General, with cooperation from the U.S. Bureau of Prisons. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.

 

 

MINNEAPOLIS—Recently in federal court, a 36-year-old Duluth felon was indicted for possessing a nine-millimeter pistol and a .357-caliber revolver. On April 22, 2013, Ronald Paris Riles was specifically charged with one count of being a felon in possession of a firearm.

The indictment alleges that on February 6, 2013, Riles possessed the two firearms. Because he is a felon, Riles is prohibited under federal law from possessing a firearm at any time. He was previously convicted in Illinois for first-degree murder (1993) as well as manufacturing and delivering cannabis (2007).

If convicted of the federal charge now levied against him, Riles faces a potential maximum penalty of ten years in prison. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Duluth Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Recently in federal court, two St. Paul men were indicted for possessing with intent to distribute more than 500 grams of methamphetamine. On April 22, 2013, Antonio Ceron-Santos, age 40, and Avimael Armenta-Hernandez, age 27, were charged with one count of possession with intent to distribute methamphetamine.

The indictment alleges that on March 28, 2013, the defendants possessed the methamphetamine. According to a law enforcement affidavit filed in the case, the defendants were arrested that day, following an arranged controlled purchase of approximately one pound of methamphetamine at a parking lot in Maplewood. During the execution of a state search warrant at the defendants’ residence, police allegedly seized an additional five pounds of methamphetamine as well as drug ledgers and a scale typically used to weigh illegal narcotics.

If convicted, the defendants face a potential maximum penalty of life in federal prison. Because the federal criminal justice system does not have parole, offenders serve virtually their entire prison sentences behind bars. Any sentences imposed in this case would be determined by a federal district court judge.

This case is the result of an investigation by the United States Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, the St. Paul Police Department, the Minneapolis-St. Paul Airport Police Department, the Minnesota State Patrol, and the county sheriff’s offices for Dakota, Ramsey, Washington and Wright counties. It is being prosecuted by Assistant U.S. Attorney Julie E. Allyn.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Recently in federal court, an inmate who last month escaped from the Federal Prison Camp in Duluth was indicted after being apprehended following six days on the run. On April 22, 2013, Michael Joseph Krzyzaniak, age 64, of Minneapolis, was indicted on one count of escape from custody.

The indictment alleges that on March 30, 2013, and continuing through April 5, 2013, Krzyzaniak was an escapee from the Federal Prison Camp in Duluth. He was serving a 151-month sentence for a 2012 conviction in the District of Minnesota for wire fraud and tax evasion. According to a law enforcement affidavit filed in the current case, Krzyzaniak was present for a prisoner count at 4:00 p.m. on March 30. However, he was not present for the prisoner count at 10:00 p.m. On April 5, law enforcement officials apprehended him at a hotel in Burnsville.

If convicted, Krzyzaniak faces a potential maximum penalty of five years in federal prison, which may be tacked onto the sentences he is already serving. All sentences would be determined by a federal district court judge.

This case is the result of an investigation by the United States Marshals Service. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—U.S. Attorney B. Todd Jones today announced that this week is National Crime Victims’ Rights Week. The theme of this year’s observance, “New Challenges, New Solutions,” honors local champions of crime victims’ rights and celebrates the spirit that will advance the progress these heroes have to date achieved.

Awareness of federal crime victims and the issues they face was greatly heightened in 2004, with the enactment of the Crime Victims’ Right Act (“CVRA”). That act grants federal crime victims certain enforceable rights during criminal proceedings, including the right to be heard in court and the right to receive full and timely restitution as provided by law. Crime victims also have the right to be notified of pertinent court events, such as indictment, trial, and sentencing. In Fiscal Year 2010, U.S. Attorney offices nationwide collectively notified federal crime victims of nearly eight million case events. In the District of Minnesota alone, approximately 212,099 such notices were provided.

The U.S. Attorney’s Office in the District of Minnesota has a dedicated Victim-Witness team. In addition to ensuring compliance with victims’ rights, as set forth in federal statute, team members accompany crime victims to court, make referrals for counseling, and assist in accessing victim compensation funds. Nationally, in Fiscal Year 2010, an estimated 19,000 federal crime victims were accompanied to court and more than 23,000 were referred for victim services.

Another way in which U.S. Attorney offices assist federal crime victims is by recovering the monetary losses incurred by them during the related crime. This is particularly important in cases involving financial fraud, when victims often lose their retirement funds or their children’s college money to a smooth-talking crook. Of course, the government cannot guarantee all losses will be restored, but in Fiscal Year 2011, U.S. Attorney offices nationwide, through their Financial Litigation Units, collected a total of approximately $53 in federal restitution for crime victims. In Fiscal Year 2011, the U.S. Attorney’s Office in the District of Minnesota collected approximately $15.4 million for individual victims, while more than $161,000 was recovered for federal agencies who had been victimized by criminal activity.

Finally, the federal government assists victims of violent crime by paying for related expenses, such as lost wages, counseling, and medical costs. Moreover, that assistance is not provided by tax dollars. Rather, the funds come from the Federal Crime Victims Fund, which is supported through the collection of criminal fines and penalties.

For more information about National Crime Victims’ Rights Week, visit http://ovc.ncjrs.gov/ncvrw/.

 

 

MINNEAPOLIS—Yesterday in federal court, a 47-year-old Shakopee man was charged via an Information with fraudulently using other people’s food stamps. On April 18, 2013, Chin Son Kim was specifically charged with one count of food stamp fraud.

The charging document provided that between November 2010 and July 2012, Kim obtained Supplemental Nutrition and Assistance Program (“SNAP”) cards, commonly known as food stamps, from the recipients of those benefits. To that end, Kim waited near a charity facility in St. Paul, as well as at other locations, approaching people from whom he might acquire the SNAP cards.

After garnering a card, Kim would go to cooperating local markets, where he would use the card in an unauthorized manner. Typically, Kim would present the card to the grocer, who would swipe it through a food-stamp scanner, routinely noting a transaction of approximately $200. Kim would then receive cash, groceries, or store credit in that amount. Afterwards, he would return the card to its rightful owner, providing that person with cash in the amount of approximately half the transaction total. The loss to the SNAP program because of Kim’s action is estimated to be $29,816.

Each individual who receives SNAP benefits is issued an electronic benefit transfer (“EBT”) card, which contains a monthly allocated benefit amount that can be used at authorized retailers. The United States Department of Agriculture (“USDA”) then reimburses those retailers for the benefit amounts redeemed. Only eligible food items may be acquired with food stamps, and some items, such as alcoholic beverages, tobacco products, and cell phone minutes. Moreover, food stamps may not be redeemed for cash.

If convicted, Kim faces a potential maximum penalty of five years in federal prison. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the USDA-Office of Inspector General, the Ramsey County Sheriff’s Office, and the St. Paul Police Department. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.

A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Earlier today in federal court, a 46-year-old woman was sentenced for assaulting another inmate at the Federal Correctional Institute in Waseca, Minnesota. United States District Court Chief Judge Michael J. Davis sentenced Felecia Thomas to 41 months in federal prison on one count of assault with a dangerous weapon. Thomas was indicted on May 15, 2012, and pleaded guilty on January 11, 2013, by offering a “straight plea” and did not enter into a plea agreement.

On June 10, 2011, Thomas, who was then serving time at the correctional facility in Waseca following a 2004 conviction for arson and the use of explosives in the commission of a felony, assaulted an inmate by strangling her with a rope. The rope allegedly had been removed from a laundry bag.

This case was the result of an investigation by the Federal Bureau of Investigation and the U.S. Bureau of Prisons. It was prosecuted by Assistant U.S. Attorneys John E. Kokkinen and Lola Velazquez-Aguilu.

 

 

MINNEAPOLIS—Yesterday in federal court, a 59-year-old Crystal man was charged with possessing approximately 8,000 images of child pornography. On April 17, 2013, James Richard Darling was charged via an Information with one count of possession of child pornography.

On September 22, 2009, Darling allegedly possessed numerous visual depictions of minors engaged in sexually explicit conduct on his computer.

If convicted, Darling faces a potential maximum penalty of 20 years in federal prison, with a mandatory minimum penalty of ten years. Any sentence would be determined by a federal district court judge.

This case is the result of an investigation by the Minnesota Child Exploitation Task Force, sponsored by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Lola Velazquez-Aguilu.

Possession of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is 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 was brought as 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 U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue 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.”

A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—A federal indictment unsealed late yesterday charges a 61-year-old Rochester woman with defrauding an elderly couple out of more than $840,000. The indictment, which was filed on April 15, 2013, specifically charges Carolyn Jean Cassar with one count of wire fraud. The indictment was unsealed following Cassar’s initial appearance in federal court.

The indictment alleges that from May 2006 through September 2012, Cassar executed a scheme to obtain money through false and fraudulent pretenses. Cassar allegedly induced an elderly couple to provide her with money by falsely representing that she needed the funds to travel to Washington, D.C., to attend to the affairs of her recently deceased daughter. She also falsely represented that she needed money to travel to Italy to, among other things, prosecute a former business agent who had defrauded her. She told the couple she expected to receive money she inherited from her father, which the business agent had stolen, and she would then repay them the funds they loaned to her. To support her false representations, Cassar allegedly provided the victims with airline itineraries for her flights to Italy.

Instead, the indictment alleges that Cassar used the victims’ money to (1) vacation in Europe with her son and others; (2) take design professionals to Italy to study its architecture in preparation for designing a home for her; and (3) pay an architect to draw plans for a villa-style house.

If convicted, Cassar faces a potential maximum penalty of 20 years in prison. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the Federal Bureau of Investigation, and the Rochester Police Department. It is being prosecuted by Assistant United States Attorney Kimberly A. Svendsen.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Earlier today in federal court in St. Paul, a jury found a 41-year-old Brooklyn Park man guilty of participating in a large, multi-state, identity theft ring. Following an eight-day trial, the jury convicted Gordon Lamarr Moore of one count of conspiracy to commit bank fraud and two counts of aggravated identity theft. Moore, who fled during trial, was indicted along with four others on November 14, 2012. He remains a fugitive. If you have any information regarding Moore’s whereabouts, contact the United States Marshals Service at (612) 664-5900 or usms.wanted@usdoj.gov.

According to the evidence presented at trial, members of the conspiracy obtained the personal information of other people through mail theft, vehicle break-ins, and burglaries, as well as from co-conspirators who stole the information from their places of employment. That information was then used to create false identification documents, such as driver’s licenses and identification cards, along with counterfeit checks. Co-conspirators used the counterfeit checks and fraudulent identification to purchase expensive items and gift cards at retail stores. They later returned the items for cash, which was divided among those involved in the criminal activity. Co-conspirators also deposited counterfeit checks into the bank accounts of unknowing individuals, only to withdraw the funds from those same accounts a short time later. To avoid detection, co-conspirators only accessed each bank account a few times before moving on to another.

Earlier this month, two co-defendants, Shanell Collette Brewer and Samantha Catrina House, pleaded guilty to participating in the scheme. In February 2013, two others, Jerome Davis, Jr., and Jemall Ronta Williams, also pleaded guilty to the same crime.

The newly convicted defendants face a maximum potential penalty of 30 years in federal prison for conspiracy to commit bank fraud and a mandatory minimum consecutive penalty of two years in prison on each count of identity theft. U.S. District Court Judge Paul A. Magnuson will determine their actual sentences at a future hearing, not yet scheduled.

In a related case, following a jury trial in September 2012, four other men were convicted of crimes connected to this same identity theft ring. They now await sentencing. Twenty-four additional co-conspirators have entered guilty pleas for their participation in the ring. They too await sentencing.

These cases resulted from an investigation conducted by the Minnesota Financial Crimes Task Force, the U.S. Postal Inspection Service, and the Internal Revenue Service-Criminal Investigations. They are being prosecuted by Assistant U.S. Attorneys Karen B. Schommer and Michelle E. Jones.

The Financial Crimes Task Force was established pursuant to state law and is comprised of local, state, and federal law enforcement investigators dedicated to combating the growing problem of cross-jurisdictional financial crimes. The task force, overseen by an advisory board also created under state law, serves the entire District of Minnesota, presenting its cases to county or federal prosecutors, as appropriate.

The task force and the Minnesota U.S. Attorney’s Office want to remind people to protect themselves from identity theft. For more information, visit http://www.stopfraud.gov/protect-identity.html.

For more information on how to avoid becoming a victim of identity theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/IdentityTheft.aspx . The IRS-Criminal Investigations also urges citizens to review the Taxpayer Guide to Identity Theft, which can be found at http://www.irs.gov.

For tips on how to prevent mail theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/MailTheft.aspx.

 

 

MINNEAPOLIS—Late yesterday in federal court, a jury found a 29-year-old man guilty of conspiring to distribute approximately 450 grams of heroin. The jury convicted Jose Nunez-Medina, a Mexican national, of one count of conspiracy to distribute heroin and one count of possession with intent to distribute heroin. He was indicted, along with Sarahi Diaz-Estrada, age 23, also a Mexican national, on September 11, 2012.

Trial evidence proved that in August 2012, Nunez-Medina conspired with others to distribute 100 or more grams of heroin. It also proved that on August 11, 2012, Nunez-Medina possessed with intent to distribute 100 or more grams of heroin.

On April 8, 2013, co-defendant Diaz-Estrada pleaded guilty to one count of possession with intent to distribute heroin. In her plea agreement, Diaz-Estrada admitted that in exchange for money, she agreed to drive Nunez-Medina from Indiana to Michigan for the purpose of distributing heroin. But instead, they drove to Minnesota. Diaz-Estrada also admitted that she possessed with intent to distribute 450 grams of heroin.

A law enforcement affidavit filed in the case provided that on August 11, 2012, the Crystal Police Department received information from the Indianapolis Metro Police Department concerning the possible abduction of Diaz-Estrada from her Indiana residence. She was believed to be kept against her will at a Crystal motel. Police proceeded to the motel, determined Diaz-Estrada was there, and knocked on her door.

Both Diaz-Estrada and Nunez-Medina were in the motel room. And after speaking with them, the police obtained and executed a state search warrant for the room as well as for Diaz-Estrada’s Jeep. They found approximately 450 grams of heroin, a scale, balloons, and bags. Both defendants were then arrested on drug-related charges.

For their crimes, the defendants face a potential maximum penalty of 40 years in federal prison on each count. United States District Court Chief Judge Michael J. Davis will determine their sentences at future hearings, yet to be scheduled.

This case was the result of an investigation by the Crystal Police Department and the U.S. Drug Enforcement Administration, with cooperation from the Indianapolis Metro Police Department. It was prosecuted by Assistant U.S. Attorney Richard Newberry.

 

 

MINNEAPOLIS—Recently in federal court, a 40-year-old Mexican national was indicted for entering the United States illegally after being deported as a criminal. On April 15, 2013, Benito Blanco-Correa was charged with one count of illegal re-entry after deportation.

The indictment alleges that on March 13, 2013, Estrada-Garcia was found in the U.S. after having been previously deported to Mexico on three occasions, the last being in 2010, following a 2009 conviction in the District of Minnesota for conspiracy to distribute and possession with intent to distribute heroin. On March 13, Blanco-Correa was identified as an illegal alien while in the Hennepin County jail, where he was being held after a narcotics’ arrest.

The identification was made though the U.S. Immigration and Customs Enforcement’s (“ICE”) Criminal Alien Program (“CAP”). The goal of CAP is to locate criminal aliens incarcerated in federal and state prisons, as well as in local jails, and prevent them from being released into society by having them federally prosecuted for illegally re-entry. In some instances, federal prosecution occurs only after the individual has been prosecuted for the recent underlying offense.

If convicted of the federal charges on levied against him, Estrada-Garcia faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by ICE’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney Nathan P. Petterson.

To learn more about the CAP, visit www.ice.gov/criminal-alien-program/

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Earlier today in federal court, a 26-year-old woman was sentenced for her role in the robbery of the Citizens Bank in Hutchinson, Minnesota. United States District Court Judge David S. Doty sentenced Erica Lea Reeves, no known residence, to 19 months in federal prison on one count of aiding and abetting bank robbery. Reeves was indicted along with a co-defendant on August 22, 2012. She pleaded guilty on November 7, 2012.

In her plea agreement, Reeves admitted that on July 17, 2012, she and her co-defendant stole $5,770 from Citizens Bank, located at 1390 Highway 15 South, in Hutchinson. According to a law enforcement affidavit filed in the case, Reeves’ co-defendant, Eric Andrew Ebbers, age 25, no known address, presented a bank teller with a note demanding money and warning that he had a gun. After taking the money provided, Ebbers ran to a waiting car driven by Reeves. Police tried to stop the vehicle, but the car sped away. With officers in pursuit, the car exceeded 100 mph, wove through traffic, and avoided a police roadblock. When the car was finally disabled, Reeves was arrested, while Ebbers fled on foot into a cornfield. He was apprehended the following day.

On February 14, 2013, Ebbers was sentenced to 71 months in federal prison on one count of aiding and abetting bank robbery. He pleaded guilty on September 27, 2012. In his plea agreement, Ebbers also admitted robbing the Alliance Bank in Lake City, Minnesota, and the Key Bank in Gresham, Oregon. In both instances, Ebbers presented tellers with a note demanding money and warning that he had a gun.

This case was the result of an investigation by the Federal Bureau of Investigation and the McLeod County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.