District of Minnesota

MINNEAPOLIS—Earlier today in federal court, a 37-year-old St. Paul man pleaded guilty to fraudulently obtaining funds from several financial institutions. Christopher Terrelle Harness pleaded guilty to one count of bank fraud and one count of aggravated identity theft. Harness, who was indicted on November 20, 2012, entered his plea before United States District Court Judge David S. Doty.

In his plea agreement, Harness admitted that from October 2007 through July 2012, he obtained money from banks by depositing checks, drawn on the accounts of other individuals, that he knew were either stolen or not backed by sufficient funds into fraudulently opened bank accounts in order to deceive the banks into honoring ATM withdrawals from those bank accounts out of the falsely-inflated balances.

Harness also admitted that others, acting at his direction, opened bank accounts at several financial institutions with the intent that those accounts would be used to accommodate the scheme. In addition, Harness admitted that he and others stole checks from other individuals and forged those individuals’ signatures on the stolen checks. Harness admittedly deposited the stolen checks into the fraudulently opened bank accounts using ATMs. After the stolen checks were deposited, cash was withdrawn. In total, the victimized institutions sustained approximate losses of between $30,000 and $400,000.

For his crimes, Harness faces a potential maximum penalty of 30 years in prison on the bank fraud count, and a mandatory minimum penalty of two years on the aggravated identity theft count to run consecutive to any penalty on the bank fraud count. Judge Doty will determine his sentence at a future hearing, yet to be scheduled.

This case is the result of an investigation by the U.S. Postal Inspection Service and the Minnesota Financial Crimes Task Force. It is being prosecuted by Assistant U.S. Attorneys Tracy L. Perzel and Manda M. Sertich.

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

 

 

MINNEAPOLIS—Earlier today in federal court in St. Paul, a 31-year-old Minneapolis man pleaded guilty in connection with the April 3, 2012, armed robbery of the West 7th Pharmacy in St. Paul. Michael Brooks Bynum pleaded guilty to one count of interference with commerce by robbery pursuant to the Hobbs Act, and one count of possession of a firearm in furtherance of a crime of violence. Bynum, who was indicted along with two co-defendants on July 10, 2012, entered his plea before United States District Court Judge Susan Richard Nelson.

In his plea agreement, Bynum admitted that on April 3, he drove Ray James Brown, age 24, and Rayshawn Earl James Brown, age 21, both of Minneapolis, to the pharmacy with the intent to rob it. Bynum also admitted that the three had planned the robbery together, and that after the robbery he drove the three away until they were stopped by police. In addition, Bynum admitted he participated in the armed robberies of Lloyds Pharmacy in St. Paul on February 18, 2012, the Best Aid Pharmacy in St. Louis Park on March 15, 2012, and the Pro Pharmacy in St. Paul on March 27, 2012.

In September 2012, Ray Brown pleaded guilty to two counts of possession of a firearm during and in relation to a crime of violence, and Rayshawn Brown pleaded guilty to one count of interference with commerce by robbery pursuant to the Hobbs Act and one count of possession of a firearm in furtherance of a crime of violence. In their plea agreements, they admitted entering the pharmacy wearing gloves and masks. Ray Brown admitted pointing a .40-caliber, semi-automatic pistol at store employees and demanded they get down on the floor. Ray Brown also admitted ordering the pharmacist to place pharmaceutical drugs, such as Percocet, Vicodin and Oxycontin into a white plastic bag. Then, they admitted running from the store to the awaiting Cadillac. In addition, Ray Brown and Rayshawn Brown admitted running from police after the Cadillac was stopped. Ray Brown was apprehended following a short foot chase, and police recovered the pistol he tossed during the pursuit. Rayshawn Brown was arrested about an hour later after emerging from behind a nearby house, claiming to be a homeless person who lived under the porch.

In addition, Ray Brown admitted that he participated in the armed robberies of Lloyds Pharmacy in St. Paul on February 18, 2012, the Best Aid Pharmacy in St. Louis Park on March 15, 2012, and the Pro Pharmacy in St. Paul on March 27, 2012. Rayshawn Brown also admitted that he participated in the Pro Pharmacy robbery.

For their crimes, Bynum and Rayshawn Brown face a potential maximum penalty of 20 years in federal prison on the interference with commerce by robbery pursuant to the Hobbs Act count. All three defendants face a mandatory minimum of seven years and a maximum penalty of life in prison on the possession of a firearm in furtherance of a crime of violence count, while Ray Brown faces a mandatory minimum penalty of 25 years on the second possession of a firearm during and in relation to a crime of violence count. Judge Nelson will determine their sentences at a future hearing, yet to be scheduled.

The Hobbs Act, passed by Congress in 1946, provides federal jurisdiction for cases involving violent, habitual criminals who commit armed robbery in businesses involved in interstate commerce. Federal prosecution of these offenders is sometimes beneficial since the penalties may be tougher than under state law. To that end, the U.S. Attorney’s Office and its County Attorney partners are working together to ensure that violent offenders are effectively prosecuted, making our communities safer for all.

This case is the result of an investigation by the St. Paul Police Department, the St. Louis Park Police Department, the Hennepin County Violent Offender Task Force, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Julie E. Allyn.

 

 

MINNEAPOLIS—Earlier today in federal court, a 32-year-old from the northern Minnesota community of Finland was sentenced for violating the Endangered Species Act. United States District Court Judge Ann D. Montgomery sentenced Kyler James Jensen to time served on two counts of violating the Endangered Species Act. Jensen was indicted on July 16, 2012, and pleaded guilty on November 13, 2012.

On March 7, 2013, Judge Montgomery sentenced Vernon Lee Hoff, age 55, also of Finland, to one month in prison and a $2,500 fine on one count of violating the Endangered Species Act and one count of false statements to a federal officer, a felony. He was convicted by a jury in Duluth on November 16, 2012. As a result of his felony convictions, Hoff will no longer be able to possess firearms and may be ineligible for federal contracts.

Following today’s sentencing, Gregory Jackson, Special Agent in Charge for the Midwest Region of the U.S. Fish and Wildlife Service (“USFWS”) Office of Law Enforcement, said, “We are pleased with the outcome, and want to thank the conservation offices from the Minnesota Department of Natural Resources for their partnership and continued commitment to working together in an effort to fight wildlife crime in Minnesota.”

The evidence presented at trial proved that Hoff lied to a USFWS official when asked whether he spoke on the telephone with Jensen about transporting two wolf carcasses that Jensen purposely killed with his vehicle on February 17, 2010. In fact, Hoff denied that any call had taken place. After the call, Jensen loaded the two gray wolves into his vehicle, traveled to Superior National Forest, and buried them with the use of a bulldozer, as instructed by Hoff. At the time, the gray wolf was listed as a threatened species under the Endangered Species Act. It was removed from that list in Minnesota in January of 2012.

This case was the result of an investigation by the USFWS and the Minnesota Department of Natural Resources. It was prosecuted by Assistant U.S. Attorney Laura M. Provinzino.

 

 

MINNEAPOLIS—A federal indictment unsealed last week charges eight men for conspiring to distribute more than 1,000 kilograms of marijuana in Minnesota. The indictment, which was filed on March 5, 2013, charges Irineo Serio Moreno, age 34, of Minneapolis; Ryan Timothy Solon, age 34, of Eden Prairie; Christopher David Schumacher, age 35, of Bloomington; Shawn Andrew Withrow, age 38, of Shakopee; Jeremy Allen Anderson, age 38, of Circle Pines; Corey William Johns, age 27, of Mounds View; Arthur Eugene Johns, age 29, of New Brighton; and Matthew Ryan Waste, age 27, of Carnelian Bay, California; with one count of conspiracy to distribute marijuana. The indictment was unsealed on March 8, 2013, following the defendants’ initial appearance in federal court.

The indictment alleges that from January 2009 through December 20, 2012, the defendants conspired with each other and others to distribute 1,000 or more kilograms of marijuana.

If convicted, the defendants face a potential maximum penalty of life in prison. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the United States Drug Enforcement Administration, the West Metro Drug Task Force, the West Hennepin Public Safety Department, the Medina Police Department, the Orono Police Department, the Mound Police Department, the Hennepin County Sheriff’s Office, and the Southwest Hennepin Drug Task Force. It is being prosecuted by Assistant U.S. Attorney LeeAnn K. Bell.

During the investigation, authorities have seized numerous items including pickup trucks, jet skis, trailers, vehicles, motorcycles, and more than $200,000 in cash. The U.S. is seeking forfeiture of all of these items.

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 52-year-old Coon Rapids man was charged with allegedly stealing prosthetics and related supplies from the University of Minnesota Medical Center-Fairview and selling them online. Peter Stasica was charged via an Information with one count of wire fraud.

Allegedly, from February to August 2011, Stasica, who was then Prosthetics manager for Fairview’s Orthotics and Prosthetics Department, began removing prosthetics and prosthetic-related supplies without authorization to sell on eBay. In addition, Stasica allegedly solicited under false pretenses from several patients prosthetics they were not using. Stasica did not disclose to those patients that he intended to sell their prosthetics.

If convicted, Stasica 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. It is being prosecuted by Assistant United States Attorney David M. Genrich.

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 37-year-old St. Paul felon was sentenced for possessing a .40-caliber pistol. United States District Court Judge Richard H. Kyle sentenced Wendell Terrell Brown to 180 months in prison on one count of being an armed career criminal in possession of a firearm. Brown was indicted on June 18, 2012, and pleaded guilty on October 12, 2012.

In his plea agreement, Brown admitted that on May 5, 2012, he possessed the pistol while riding as a passenger in a vehicle stopped by authorities in St. Paul. Because he is a felon, Brown is prohibited under federal law from possessing a firearm at any time. Brown’s prior convictions include possession of a short-barreled shotgun (Ramsey County, 1998) and felon in possession of a firearm (Ramsey County, 2002). In addition, Brown was convicted in Hennepin County for terroristic threats (1998), Washington County for fourth-degree sale of a controlled substance (2010), and in St. Croix County, Wisconsin, for possession with intent to distribute marijuana (2010).

Since at least three of Brown’s past felony convictions were for crimes of violence or serious drug crimes, his sentence in the federal current case was subject to the Armed Career Criminal Act, which mandates a minimum of 15 years in federal prison. Because the federal criminal system does not have parole, he will serve virtually his entire prison sentence behind bars.

This case was the result of an investigation by the St. Paul 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—Yesterday in federal court in St. Paul, a 26-year-old Robbinsdale man was sentenced for conspiring to distribute approximately 249 grams of cocaine. United States District Court Judge Susan Richard Nelson sentenced Brian Funtaneous Mack to 51 months in prison on one count of conspiracy to possess with intent to distribute cocaine. He was indicted on July 23, 2012, along with McCelendon Miller, age 26, and Kelly Suzette Chase, age 28, both of Burnsville.

On March 4, 2013, Judge Nelson sentenced Miller to 52 months in federal prison and Chase to a probationary sentence each on one count of conspiracy. He pleaded guilty on September 28, 2012. In his plea agreement, Miller admitted his role in the conspiracy. Chase and Mack pleaded guilty on September 26, 2012.

In their plea agreements, the three defendants admitted that from January 2012 through February 9, 2012, they conspired with each other and others to possess with intent to distribute cocaine. Miller made arrangements to obtain cocaine from a source in Chicago, and after Miller’s arrest, his girlfriend, Chase, obtained the cocaine from Mack. Miller also directed Chase to store the cocaine in their Burnsville apartment. On February 9, 2012, during the execution of a search warrant at that apartment, officers seized 249 grams of cocaine, along with a firearm, in a safe.

This case was the result of an investigation by the Twin Cities Safe Streets Violent Gang Task Force, which is led by the FBI and includes the Minneapolis Police Department. The mission of the task force is to investigate and target the most violent gangs operating in the Twin Cities or those gangs engaged in the large-scale trafficking of illegal drugs. This case was prosecuted by Assistant U.S. Attorney LeeAnn K. Bell.

 

 

MINNEAPOLIS—Earlier today in federal court, a 29-year-old registered sex offender from Woodland Township in central Minnesota was sentenced for possession of child pornography. United States District Court Judge Patrick J. Schiltz sentenced Jeremy Lee Klepperich to 160 months in prison on one count of possession of child pornography. Klepperich was charged on July 31, 2012, and pleaded guilty on October 2, 2012. Because the federal system does not have parole, Klepperich will serve virtually his entire prison sentence behind bars.

In his plea agreement, Klepperich admitted that on June 6, 2012, he possessed one or more matters containing visual depictions of a minor engaged in sexually explicit conduct. Klepperich owned a computer thumb drive containing approximately 4,270 images and 56 videos of child pornography.

In 2011, Klepperich pleaded guilty in state court in Wright County on one count of possession of pornography by a sex offender. The sentence in that case mandated that Klepperich, whose prison term was stayed, refrain from possessing any drugs, drug paraphernalia, pornography, or other sexually explicit material. On two different occasions (April 27, 2011 and June 7, 2012), Klepperich was arrested by local law enforcement for violating the terms of his 2011 stay of sentence. An unnamed individual informed authorities of Klepperich’s thumb drive among other digital media, which contained child pornography. Klepperich’s criminal history includes a 1997 McLeod County, Minnesota, conviction for sexual penetration of a minor male he was babysitting and a 2009 conviction in Hennepin County for failure to register as a predatory offender.

This case was the result of an investigation by the Minnesota Child Exploitation Task Force, which is sponsored by the Federal Bureau of Investigation. Assistance was provided by the Minnesota Department of Corrections, the Hutchinson Police Department, and the Wright County Sheriff’s Office, which is an affiliate of the Minnesota Internet Crimes Against Children Task Force. The case was prosecuted by Assistant U.S. Attorney Laura M. Provinzino.

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

This case 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 the U.S. Attorneys’ Offices and the Criminal Division’s 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—Earlier this week in federal court in St. Paul, a 48-year-old felon from New Ulm was indicted for possessing four firearms. On March 4, 2013, Buck Otto White was charged with one count of being felon in possession of a firearm.

The indictment alleges that on February 14, 2013, White possessed a 10-gauge shotgun, a .22-caliber rifle, a 12-gauge shotgun, and a 7.62-caliber rifle. Because he is a felon, White, also known as Timothy Joseph Hoffman, is prohibited under federal law from possessing firearms or ammunition at any time. His prior convictions include burglary in the second degree (Hennepin County in 1984), attempted burglary in the first degree (Anoka County in 1991), burglary in the second degree (Kanabec County in 1995), assault in the fourth degree (Anoka County in 1994), and attempted violation in the controlled substance law in the first degree (Hennepin County in 2006). Because these convictions constituted crimes of violence or drug trafficking, White is subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm and/or ammunition.

This case is the result of an investigation by the Nicollet County Sheriff’s Office, the New Ulm Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Richard Newberry.

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, three federal detainees were indicted for assaulting two correctional officers at the Sherburne County Jail. Ira Lee Goodwin, age 26, Michael Scott Luedtke, age 25, and Edward McCabe Robinson, age 28, were specifically charged with one count of conspiracy to assault persons assisting federal law enforcement officers and two counts of assault upon a person assisting federal law enforcement officers.

The indictment alleges that on February 8, 2013, the defendants conspired with each other to use dangerous and deadly weapons to inflict bodily injury upon two correction officers employed at the Sherburne County Sheriff’s Office. The defendants allegedly used a chair and a can of pepper spray to commit the assault. The officers sustained numerous injuries, one of them suffering a concussion. In performing their duties, the correction officers were assisting deputy United States Marshals.

Goodwin, an admitted member of the Native Mob street gang, was being detained in the Sherburne County Jail pending federal court sentencing, after earlier pleading guilty to charges related to the federal RICO trial now underway for several other members of that gang. Luedtke was being detained pending prison assignment after being sentenced to nearly 25 years in federal prison for committing an armed robbery. Robinson was being held while being tried in federal court on charges connected to an arson and murder on the Red Lake Indian Reservation. All three remain in custody in the Sherburne County Jail.

If convicted, the defendants face a potential maximum penalty of 20 years in federal prison on each assault charge and five years on the conspiracy charge. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the Sherburne County Sheriff’s Office and the U.S. Marshals Service. 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—Earlier today in federal court, a 25-year-old career criminal from St. Cloud was sentenced for possessing a .22-caliber rifle. United States District Court Judge Patrick J. Schiltz sentenced Shawn Allen Roering to 204 months in prison on one count of being a felon in possession of a firearm. Roering was indicted on April 3, 2012, and pleaded guilty on August 15, 2012.

In his plea agreement, Roering admitted that on August 18, 2011, he possessed the semi-automatic rifle and attempted to sell it. The barrel of the rifle was sawed-off, was less than 12 inches in length, and had an obliterated serial number. Police learned that the rifle had been reported stolen.

Because he is a felon, Roering, also known as Shrek, is prohibited under federal law from possessing firearms or ammunition at any time. His prior convictions include aiding and abetting simple robbery in Wright County (2005), fleeing a police officer in a moving vehicle in Morrison County (2010), and fourth-degree sale of a controlled substance in Benton County (2010). Since at least three of Roering’s past felony convictions were for crimes of violence or serious drug crimes, his sentence in the current case was subject to the Armed Career Criminal Act, which mandates a minimum of 15 years in federal prison.

This case was the result of an investigation by the Central Minnesota Drug and Gang Task Force, the Minnesota Bureau of Criminal Apprehension, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.

 

 

MINNEAPOLIS—Earlier today in federal court in St. Paul, two Minneapolis women were sentenced for stealing more than $1 million from the ING life insurance company. United States District Court Judge Susan Richard Nelson sentenced Angela Patrice Madison, age 42, to 35 months in federal prison on one count of aiding and abetting mail fraud; and Tracy Dione Jackson, age 42, was sentenced to 27 months in federal prison on the same charge. Madison also was ordered to pay $1,633,301 in restitution to ING, while Jackson was ordered to pay $1,112,717 to the company. Both women were charged on July 26, 2012.

In her plea agreement, which was filed on September 27, 2012, Madison admitted that from 2003 through March 6, 2012, she worked as a policy plan and service coordinator for ING. In that capacity, she handled, among other things, requests from ING clients to obtain loans and “surrender”—that is, cash in—their life insurance policies. Madison used ING’s computer system to generate false “surrenders” in the names of various individuals, including Jackson. The checks issued as a result of those surrenders were mailed to Jackson at various addresses across the state or intercepted by Madison and given to Jackson. Jackson then cashed the checks and split the proceeds with Madison. Through this scheme, the women stole approximately $1,633,301 from ING, the result of 196 fraudulent checks. Jackson pleaded guilty on August 28, 2012.

This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Timothy C. Rank.

 

 

MINNEAPOLIS—Earlier today in federal court in St. Paul, a 28-year-old North Carolina woman was sentenced for her role in a scheme that defrauded mortgage lenders out of approximately $8.9 million. United States District Court Judge Susan Richard Nelson sentenced Ashley Elizabeth Prasil, formerly of Eden Prairie, to three years of probation and ordered her to perform 150 hours of community service on one count of conspiracy to commit wire fraud. Prasil was also ordered to pay more than $2.2 million in restitution to the lenders victimized through the scheme. Prasil was charged via Information on April 21, 2011, and pleaded guilty on May 19, 2011.

Prasil admitted that from December 18, 2006, through December of 2007, she conspired with others to defraud mortgage lenders who provided mortgages at the Cloud 9 Sky Flats (“Cloud 9”), a Minnetonka condominium development. The scheme involved finding buyers to apply for mortgage loans to purchase units in the development, with each buyer receiving a kickback of approximately 30 percent of the reported purchase price. The loan applications and forms submitted to the lenders did not disclose these kickbacks, resulting in buyers and others secretly getting a portion of the loan amounts back after closing. The kickbacks were returned to the buyers through an account controlled by Prasil’s co-defendant Sheri Delich, after a portion had been skimmed off for co-conspirators.

On February 15, 2013, Delich, age 47, of Apple Valley, was ordered to serve five years of probation and six months of home confinement on one count of conspiracy to commit mortgage fraud and one count of money laundering. Judge Nelson also sentenced former realtor My Dinh Lam, age 32, of Minneapolis, to three years of probation on one count of conspiracy to commit wire fraud for his role in finding buyers for the program.

More than 40 Cloud 9 units were sold through the scheme, and more than 80 percent of the loans have since defaulted.

Under the sentencing guidelines, Prasil could have been sentenced to more than two years in prison. The Court noted, however, that Prasil had provided assistance to the government and that her sentence was being reduced because of her cooperation in the investigation.

This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Robert M. Lewis.

 

 

MINNEAPOLIS— On Friday, in federal court, a jury found a Twin Cities’ man guilty of conspiring to distribute heroin, cocaine, and other controlled substances. Following a four-day trial, the jury convicted Eric Michelle Hunter, age 40, of Bloomington. He was found guilty of one count of conspiracy to distribute controlled substances. In addition Hunter was convicted of five counts of distribution of controlled substances, one count of possession of controlled substances with intent to distribute, two counts of using and carrying firearms during and in relation to drug-trafficking crimes, two counts of being a felon in possession of a firearm, and one count of attempted witness tampering. Hunter was charged on December 10, 2012, in a superseding indictment.

The evidence presented at trial proved that from September 14, 2011, through July 24, 2012, the defendant conspired with others to distribute controlled substances, primarily heroin. On five occasions, Hunter aided and abetted the distribution of controlled substances, including heroin and benzylpiperazine, commonly known as BZP. He also conspired to distribute numerous other controlled substances, including two other designer drugs with street names of “Foxy” and “Ivory Wave.”

Moreover, on May 2, 2012, Hunter aided and abetted using and carrying a .357-caliber, semi-automatic pistol, and on May 22, 2012, he aided and abetted using and carrying an AA Arms, 9 millimeter machine gun. Because Hunter is a convicted felon, he is prohibited under federal law from possessing firearms at any time. He was convicted in Mississippi of grand larceny in 1990, possession of cocaine in 1994, felon in possession of a deadly weapon in 1994, and intimidation and assault on a law enforcement officer in 1995. In addition, he was convicted in federal court in the District of Minnesota in 1998 for possession with intent to distribute crack cocaine.

On October 9, 2012, co-defendant Rikki Lee Gilow, age 20, also of Bloomington, pleaded guilty to one count of conspiracy. In her plea agreement, Gilow admitted conspiring with Hunter and Jerry Anthony Harvey to distribute controlled substances. In addition, Gilow admitted assisting Hunter by selling two firearms to a government agent in connection with two separate drug transactions. Harvey is currently pending trial on the conspiracy charge and one count of aiding and abetting the distribution of heroin.

For his crime, the defendant faces a potential maximum penalty of life in prison on the conspiracy charge, 30 years on each of the distribution charges, and life for the possession with intent to distribute heroin charge. Hunter also faces a potential maximum penalty of life in prison on the firearm charges, a potential maximum penalty of ten years on each charge of being a felon in possession, and a potential maximum penalty of 20 years on the attempted witness tampering charge. United States District Court Judge Ann D. Montgomery will determine his sentence at a future hearing, yet to be scheduled.

This case was the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dakota County Drug Task Force. It was prosecuted by Assistant U.S. Attorneys Thomas M. Hollenhorst and Julie E. Allyn.

 

 

MINNEAPOLIS—Earlier today in federal court, a 53-year-old Excelsior coin dealer pleaded guilty to devising and executing a scheme to defraud customers and investors out of $2.7 million. David Laurence Marion pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of money laundering. Marion, who was indicted on November 14, 2012, entered his plea before United States District Court Judge Patrick J. Schiltz.

In his plea agreement, Marion admitted that he owned International Rarities Corporation (“IRC”), a business that bought, sold, and traded gold coins and precious metals, among other things. Marion directed his sales staff to “cold call” people from “lead” sheets in an attempt to get them to buy, sell, or trade coins and precious metals.

Marion also admitted that between December 2010 and August 2011, IRC received over $2 million in coins, precious metals, and money from customers who intended to purchase or exchange coins and precious metals. In August 2011, IRC purportedly had over $2 million in unfulfilled customer orders. When customers inquired about the status of their orders, Marion admitted that he and the IRC sales staff ignored them, falsely indicated that their orders were being processed, or told them that their money, coins, and precious metals could not be returned because they were not available. Meanwhile, Marion used the customers’ money, coins, and precious metals for gambling and his lavish lifestyle or to pay commissions and salaries, fulfill other customer orders, or to support his family. Customers lost approximately $1.7 million in money, coins, and precious metals as a result of this scheme.

In addition, Marion was the president of International Rarities Holdings (“IRH”), and in that capacity, he directed his sales staff to sell securities in the form of ownership shares in the company. However, at the time, Marion was not registered with the Securities and Exchange Commission (“SEC”) as a broker or dealer, nor was he associated with a registered SEC broker or dealer. In fact, in April 2009, the SEC rejected Marion’s attempt to register the IRH offering as a security yet, from at least November 2008 through July 2009, Marion and his sales staff raised approximately $1 million from at least 26 investors who believed they were purchasing ownership shares in IRH. Marion admittedly used approximately $200,000 of those investor funds for his own personal use.

For his crimes, Marion faces a potential maximum penalty of 20 years in federal prison for conspiracy and ten years for money laundering. Judge Schiltz 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, the Internal Revenue Service-Criminal Investigation Division, and the U.S. Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorney Karen B. Schommer.

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

 

 

MINNEAPOLIS—Earlier today in federal court, a 22-year-old felon from Fridley was indicted for possessing 9-millimeter ammunition. Raphael Eric Matthews was charged with one count of being a felon in possession of ammunition.

The indictment alleges that on January 31, 2013, Matthews possessed the ammunition. Matthews was a passenger in a vehicle stopped for a traffic violation, and the ammunition was found on his person. Because he is a felon, Matthews is prohibited under federal law from possessing firearms or ammunition at any time. Matthews’s prior Hennepin County convictions include aggravated robbery (2007) and simple robbery (2012).

If convicted, Matthews faces a potential maximum penalty of ten 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 Minneapolis Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Surya Saxena.

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 Minnesota man pleaded guilty for his role in a large, multi-state identity theft ring. Jerome Davis, Jr., age 44, pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Davis, who was indicted along with four others on November 14, 2012, entered his plea before United States District Court Judge Paul A. Magnuson.

In his plea agreement, Davis admitted that from 2010 through 2011, he was part of a conspiracy to commit bank fraud. For his part, Davis recruited individuals to conduct fraudulent transactions at financial institutions and retail establishments. He provided the recruited individuals with fraudulent identification documents and counterfeit checks that Davis received from another member of the conspiracy. Davis also drove individuals to retail stores where they conducted the fraudulent transactions.

According to the indictment to which Davis pled guilty, members of the conspiracy obtained victims’ personal information from various sources, including mail theft, vehicle break-ins, burglaries and from individuals who stole the information from their places of employment. The victim information was then used to create false identification documents, such as driver’s licenses and identification cards, along with counterfeit checks. The counterfeit checks were used to purchase expensive items and gift cards at retail stores. The items were later returned for cash, which was divided among those involved in the criminal activity.

The victim information was also used to open bank accounts and access the existing bank accounts of others. As part of this scheme, co-conspirators deposited counterfeit checks into the accounts of unknowing individuals, only to withdraw 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 their next victim.

For his part, Davis has agreed that he is responsible for approximately $170,389 in fraudulent transactions.

Yesterday, co-defendant Jemall Ronta Williams, age 38, also pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. In his plea agreement, Williams admitted that he joined the conspiracy in 2009, and obtained victim information from a co-conspirator who worked at Wells Fargo. Williams also admitted to providing the stolen information to others who used it to create false and fictitious identification documents to pass counterfeit checks. In addition, Williams admitted recruiting individuals to pass counterfeit checks. Williams admitted that he is responsible for approximately $40,000 in fraudulent transactions.

For their crimes, Davis and Williams each face a maximum potential penalty of 30 years in prison for conspiracy to commit bank fraud and a mandatory minimum consecutive penalty of two years in prison for identity theft. Judge Magnuson will determine their sentences at future hearings, not yet scheduled.

Trial is scheduled for April 1, 2013, for the three others who were indicted with Davis and Williams. In September of 2012 following a jury trial, four men were convicted for their roles in this identity theft ring.
Twenty-four other co-conspirators have already entered guilty pleas and are also awaiting 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. Attorney Karen B. Schommer.

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—Earlier today in federal court, a jury found a 38-year-old Coon Rapids man guilty of transporting firearms to his home country of Liberia. McHarding Degan Galimah, who was indicted on August 22, 2012, was specifically convicted of one count of smuggling firearms from the United States to Liberia.

The evidence presented at trial showed that Galimah purchased 12 firearms from a federally licensed firearms dealer, including seven hi-point, 9-millimeters handguns. In November 2010 and July 2011, he exported those weapons to Liberia and made several trips to that country himself to take possession of the firearms to resell for a profit. At no time did he possess a license to transport the firearms, as required by law. Also, federal regulations prohibit any firearms from being exported to Liberia.

For his crime, Galimah faces a potential maximum penalty of ten years in federal prison. U.S. District Court Judge Ann D. Montgomery will determine his sentence at a future hearing, yet to be scheduled.

This case was the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Andrew Dunne.

 

 

MINNEAPOLIS—Earlier today in federal court in St. Paul, a 30-year-old woman was sentenced for theft of public money from the Federal Emergency Management Agency (“FEMA”). United States District Court Judge Donovan W. Frank sentenced Vianca McCarter, of Kenner, Louisiana, to five years of probation on one count of theft of public money. In addition, McCarter mustl serve 100 hours of community service and pay $33,502 in restitution. McCarter was indicted on October 15, 2012, and pleaded guilty on October 30, 2012.

In her plea agreement, McCarter admitted that on September 12, 2005, she falsely represented to FEMA that she resided in New Orleans when Hurricane Katrina hit the Gulf Coast. She also falsely claimed that her residence and personal property was damaged by the disaster, and that she needed emergency rental assistance benefits. However, McCarter was residing in Minnesota when Hurricane Katrina hit on August 29, 2005. In fact, McCarter lived in housing subsidized by the Minnesota Metropolitan Council from October 2004 through November 2009.

Based on McCarter’s fraudulent application, from September 18, 2005, through October 25, 2007, FEMA awarded her a total of $34,102 in disaster assistance benefits to which she was not entitled because she did not reside in the area affected by Hurricane Katrina.

This case was the result of an investigation by the U.S. Department of Housing and Urban Development, with cooperation of the Justice Department’s Hurricane Katrina Fraud Task Force. It was prosecuted by Assistant U.S. Attorneys John E. Kokkinen and Lola Velazquez-Aguilu.

 

 

MINNEAPOLIS—Yesterday in federal court, a 28-year-old Blaine man was sentenced for committing the December 3, 2011, armed robbery of a convenience store in Mayer, Minnesota. United States District Court Judge Patrick J. Schiltz sentenced Demetrius Charles Edward Derden to 170 months in federal prison on one count of interference with commerce by robbery, pursuant to the Hobbs Act. Derden was indicted on January 10, 2012, and pleaded guilty on August 24, 2012.

On December 3, 2011, Derden stole $2,259 from the Mayer Oil Company while brandishing a weapon. Derden demanded money from the store’s backroom safe. When the clerk told him he did not know the combination to the safe, Derden placed the barrel of the gun against the clerk’s neck and threatened him. A struggle ensued, and the clerk suffered injuries. Derden fled the store, but authorities arrested him a few hours later at his residence. They found some of the stolen money inside a stuffed animal. They also learned that the weapon used was a BB gun.

The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute violent habitual criminals who commit armed robbery in places of business that involve interstate commerce. Federal prosecution of these cases is sometimes beneficial since the penalties are often tougher than under state law. Furthermore, because the federal system has no parole, those who receive federal sentences serve virtually the entire prison term imposed.

This case was the result of an investigation by the Carver County Sheriff’s Office, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Julie E. Allyn.

 

 

MINNEAPOLIS—Earlier today in federal court, a 30-year-old Rochester woman was sentenced for her role during an armed robbery at a McDonald’s in Byron, Minnesota. United States District Court Judge Donovan W. Frank sentenced Quiana Shaneea Evans to 130 months in federal prison on one count of interference with commerce by robbery and one count of aiding and abetting the use, carrying, possessing, and discharging of a firearm during and in relation to a crime of violence. Evans was indicted on May 21, 2012, and pleaded guilty on October 2, 2012.

In her plea agreement, Evans admitted that on June 15, 2011, she entered the McDonald’s in Byron, Minnesota, with Christian Aaron Alexander, who was armed with a Colt, .45-caliber pistol. While Alexander brandished the firearm, Evans and Alexander both demanded money from the restaurant employees. They stole approximately $1,851.68, including personal property belonging to the restaurant employees, who were present when Alexander’s firearm discharged. Evans and Alexander ultimately restrained the employees by locking them in a cold storage room.

On December 3, 2012, Alexander, was sentenced to 168 months in federal prison on three counts of interference with commerce by robbery, in violation of the Hobbs Act, and one count of brandishing and discharging a firearm in relation to a crime of violence. The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute violent, habitual criminals who commit armed robbery in places of business involved in interstate commerce. Federal prosecution of those cases is sometimes beneficial since the penalties are often tougher than under state law. Furthermore, because the federal system has no parole, those who receive federal sentences serve virtually the entire time imposed.

This case was the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Olmsted County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.

 

 

MINNEAPOLIS—Earlier today in federal court, a 23-year-old Redby man pleaded guilty to harboring a fugitive last spring. Andrew Oakgrove pleaded guilty to one count of harboring and concealing a fugitive. Oakgrove, who was indicted on December 10, 2012, entered his plea before United States District Court Judge John R. Tunheim.

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.

For his crime, Oakgrove faces a potential maximum penalty of five years in prison. Judge Tunheim will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Red Lake Tribal Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.

 

 

MINNEAPOLIS—Yesterday in federal court, a 41-year-old Fridley man was indicted in connection with the armed robbery of two Twin Cities-area shoe stores in early January. Peter Christopher Nunn was charged with two counts of interference with commerce by robbery, pursuant to the Hobbs Act.

The indictment alleges that on January 5, 2013, Nunn stole approximately $300 from the Payless ShoeSource store, located at 8510 Springbrook Drive in Coon Rapids while threatening employees with a weapon, later determined to be a BB gun. It also alleges that on January 7, 2013, Nunn stole approximately $700 from the Famous Footwear store located at 1593 E. 17th Avenue in Shakopee in the same manner.

As stated, Nunn was charged in federal court under the Hobbs Act, which was passed by Congress in1946. The Act allows federal prosecutors to prosecute violent habitual criminals who commit armed robberies in places of business that involve interstate commerce. Federal prosecution of these cases is sometimes beneficial since federal penalties are often tougher than those imposed under state law. Moreover, because the federal system has no parole, those who receive federal sentences serve virtually their entire prison terms behind bars.

If convicted, Nunn faces a potential maximum penalty of 20 years in prison on each count. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the police departments of Coon Rapids and Shakopee, 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—Earlier today in federal court, a 47-year-old St. Paul man was indicted in connection with the December 13, 2012, armed robbery of the US Bank branch located at 711 Cleveland Avenue South in St. Paul. David Judin Greer was specifically charged with one count of armed bank robbery and one count of brandishing a firearm during a crime of violence.

The indictment alleges that on December 13, Greer stole $3,952 from the bank after brandishing a .38-caliber revolver. According to a law enforcement affidavit filed in the case, a man, later identified as Greer, walked into the bank at approximately 2:00 p.m. He allegedly approached the teller counter, pulled the gun, and demanded twenties, fifties, and one-hundred-dollar bills. The teller took money from the cash drawer and stuffed it into the white plastic bag that Greer provided. After reportedly demanding and receiving even more money, he fled the premises.

Immediately following the robbery, the Federal Bureau of Investigation released to the public digital images of the robber. Later that same day, the FBI received a telephone call from an anonymous individual who identified the robber as Greer. Authorities then began surveillance on Greer’s residence.

On December 29, 2012, the FBI received a call from the St. Paul Police Department, indicating officers there had just conducted a welfare check on Greer at the request of a family member. Officials subsequently transported Greer to Regions Hospital, where Greer reportedly gave law enforcement consent to search his residence. There, officers located the revolver used in the bank robbery. It was hidden above the duct work in the basement.

If convicted, Greer faces a potential maximum penalty of 25 years in prison for armed robbery and seven years for brandishing of a firearm. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the FBI and the St. Paul Police Department. It is being prosecuted by Assistant United States Attorney Clifford B. Wardlaw.

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 25-year-old felon from St. Paul was sentenced for possessing an unregistered 12-gauge shotgun. United States District Court Judge David S. Doty sentenced Michael Romeo Geraci to 120 months in prison on one count of possession of an unregistered firearm. Geraci was indicted on May 22, 2012, and pleaded guilty on September 6, 2012.

In the plea agreement, Geraci admitted that on April 10, 2012, he possessed a sawed-off shotgun, which was not registered to him in the National Firearms Registration and Transfer Record. Geraci had the shotgun in his possession while driving a stolen minivan in the parking lot of the Uni/Dale Mall in St. Paul, where he was ultimately arrested. Geraci further admitted that he had the firearm because he intended to use it in connection with another felony offense, namely aiding and abetting the distribution of methamphetamine.

Because he is a felon, Geraci is prohibited under federal law from possessing any type of firearm at any time. His prior Ramsey County convictions include fleeing from a police officer in a motor vehicle (2007) and second-degree assault with a dangerous weapon (2009).

This case was the result of an investigation by the St. Paul Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorneys Surya Saxena and LeeAnn K. Bell.

 

 

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

In the first case, Adrian Vicente Gulliani-Gulliani, age 40, entered his plea before U.S. District Court Judge Richard H. Kyle in St. Paul. Gulliani-Gulliani was indicted on December 10, 2012.

In his plea agreement, Gulliani-Gulliani admitted that on November 14, 2012, he was found in the U.S. illegally after having been deported to Mexico. The deportation followed a 1998 Hennepin County conviction for first-degree sale of a controlled substance and second-degree possession of a controlled substance. According to a law enforcement affidavit filed in the current case, Gulliani-Gulliani was arrested in St. Paul by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (“ICE ERO”), who identified him as an illegal alien.

If convicted, Gulliani-Gulliani faces a potential maximum penalty of 20 years in federal prison. Judge Kyle will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by ICE ERO, with cooperation from the St. Paul Police Department. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.

In the second case, Jose Silva-Mercado, age 29, entered his plea before U.S. District Court Judge Donovan W. Frank in St. Paul. Silva-Mercado was indicted on December 10, 2012. In his plea agreement, Silva-Mercado admitted that on September 2, 2012, he was found in the U.S. illegally after having been deported to Mexico. The deportation followed a 2009 Mower County conviction for aggravated forgery.
On September 2, 2012, while Silva-Mercado was in the Stearns County Jail on a charge of driving under the influence, authorities identified him 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.

For his crime, Silva-Mercado faces a potential maximum penalty of 20 years in federal prison. Judge Frank will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by ICE ERO, with cooperation from the Stearns County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney John E. Kokkinen.

Both men will remain in custody until their current federal cases are resolved. To learn more about the CAP, visit www.ice.gov/criminal-alien-program/

 

 

MINNEAPOLIS—A federal indictment filed yesterday charges a 32-year-old felon from the northern Minnesota community of Crosby with possessing a .40-caliber, semi-automatic pistol along with approximately 30 grams of methamphetamine and crack cocaine. Zachari Allen Kozar was specifically charged with one count of being a felon in possession of a firearm, one count of possession with intent to distribute methamphetamine and crack cocaine, and one count of using and carrying a firearm during and in relation to a drug-trafficking crime.

According to a law enforcement affidavit filed in the case, authorities began observing Kozar in the fall of 2012 as part of a drug trafficking investigation. Then, on December 26, 2012, officers stopped Kozar for a traffic violation while he was in Baxter, Minnesota. During that stop, Kozar allegedly became agitated when a drug-sniffing canine was brought to the scene. After the dog alerted to a controlled substance, police spotted a clear plastic baggie with crystal-like content, along with a handgun, under the vehicle’s front passenger seat. Police subsequently executed a search warrant on the vehicle, finding the loaded .40-caliber Steyr firearm in a nylon gun holster, a second .40 caliber magazine, a plastic baggy containing approximately 2.8 grams of crack cocaine, as well as ten baggies of various amounts of methamphetamine and crack cocaine, totaling approximately 32.1 grams. Kozar was arrested shortly after the initial traffic stop, and $896 in U.S. currency was found on his person.

Because he is a felon, Kozar is prohibited under federal law from possessing a firearm or ammunition at any time. His prior convictions in St. Louis County include two counts of theft of a motor vehicle (1999), fleeing police in a motor vehicle (1999 and 2004), third-degree burglary (1999), damage to property (1999), escape from custody (2001), fifth-degree drug possession (2004 and two counts in 2008), and third-degree drug possession (2009) . Because some of these convictions constitute crimes of violence, Kozar is subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm or ammunition.

If convicted, Kozar faces a potential maximum penalty of life in prison for being a felon in possession, 20 years for drug possession, and a possible consecutive five-year to life sentence for carrying and using a firearm during or in relation to a drug trafficking crime. All sentences will be determined by a federal district court judge.

This case is the result of an investigation by the Lakes Area Drug Investigative Division, the Minnesota Bureau of Criminal Apprehension, and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. 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—Earlier today in federal court, two mortgage loan officers were sentenced for recruiting straw buyers to purchase properties at inflated prices and then distributing the excess loan funds among themselves, the straw buyers, and others involved in the scheme. United States District Court Judge Joan N. Ericksen sentenced Chad Arthur Anderson, age 39, and Troy Allen Huston, age 43, both of Chisago City, to federal prison terms of 60 months and 57 months, respectively, on one count of conspiracy to commit mortgage fraud through the use of interstate wires. They also were ordered to pay more than $4.8 million in restitution. The two were indicted on April 3, 2012, and pleaded guilty on August 13, 2012.

In their plea agreements, the defendants admitted that from 2006 through 2007, they recruited others, mainly relatives and friends, to act as straw buyers for the purchase of homes in the Twin Cities. At the time, the men worked as loan officers at Prestige Mortgage, a mortgage brokerage company in White Bear Lake, where they brokered numerous fraudulent mortgage loans by submitting false loan applications to prospective lenders. Anderson admitted to recruiting five straw buyers to purchase 17 homes during the course of the scheme, while Huston admitted to recruiting an unspecified number of buyers to purchase additional homes. The scheme involved a total of 32 homes in Minnesota. The properties involved are located in Otsego, Oak Grove, Elk River, St. Francis, Brooklyn Park, Isanti, St. Paul, Chisago City, Becker, Cambridge, Buffalo, Minneapolis, Zimmerman, and Albertville. All of the mortgage loans involved have gone into default, causing losses to the mortgage lenders that exceed $2.5 million.

At all times relevant to this case, Anderson and Huston were also involved in Lofton Property Management, a property management company in Chisago City. They used Lofton’s name on construction invoices and other statements to obtain loan proceeds for property management services never provided. In addition, they used Lofton’s name on property settlement statements, thereby receiving fraudulent mortgage loan proceeds, which they disbursed among themselves, the straw buyers, and others involved in the scam.

At the same time, Huston was involved in YES Financial, a property finance company in Chisago City. Through that company, he received additional illicitly acquired loan proceeds. Moreover, he prepared false loan applications on behalf of the straw buyers, often overstating their income, misrepresenting their employment, and failing to disclose their other mortgage obligations or the true source of their down payments.

This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney David J. MacLaughlin.

 

 

MINNEAPOLIS—Earlier today in federal court in St. Paul, a 55-year-old man was sentenced for the January 2, 2012, robbery of a US Bank in Calhoun Square. United States District Court Judge Richard H. Kyle sentenced Thomas Scott Wright, unknown address, to 60 months in prison on one count of bank robbery. Wright was indicted on February 6, 2012, and pleaded guilty on April 27, 2012.

In his plea agreement, Wright admitted stealing approximately $1,700 from the bank. According to police reports, a man, later identified as Wright, walked into the bank, placed a paper bag on the counter and said, “Please just do it. I have a gun. It’s tough times and the holidays.” After receiving the cash, Wright walked out of the bank. He was arrested on January 3, 2012. The money was not recovered.

This case was the result of an investigation by the Minneapolis Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney David P. Steinkamp.

 

 

MINNEAPOLIS—Earlier today in federal court in St. Paul, a 51-year-old Minneapolis man was sentenced for distributing child pornography. United States District Court Judge Donovan W. Frank sentenced Robert Andrew Gozola to 240 months in federal prison and, following incarceration, supervised release for life. Gozola was indicted on May 8, 2012, and pleaded guilty on August 22, 2012, to one count of distribution of child pornography.

In his plea agreement, Gozola admitted that on November 23, 2011, he sent images of minors engaged in sexually explicit conduct to an undercover police officer over a peer-to-peer file-sharing program. In addition, Gozola admitted possessing more than 6,000 similar images on his computer, some of which included sadistic or masochistic content. The computer, on which Gozola had installed a peer-to-peer program, was seized during the execution of state search warrant at his residence on January 19, 2012.

This case was the result of an investigation by the Minnesota Cybercrime Task Force, which includes the Minneapolis Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.

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

This case 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 the U.S. Attorneys’ Offices and the Criminal Division’s 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—Earlier today in federal court in St. Paul, a 35-year-old felon from Maplewood pleaded guilty to possessing a loaded .32-caliber revolver. Derek Lee Preston pleaded guilty to one count of being a felon in possession of a firearm. Preston, who was indicted on April 12, 2011, entered his plea before United States District Court Judge Donovan W. Frank.

In his plea agreement, Preston admitted that on January 25, 2011, he possessed the weapon while a passenger in a vehicle that was stopped by Minneapolis Police. Preston was asked to exit the vehicle, and officers found the weapon while searching him. In addition, officers found recovered 7.5 grams of marijuana and nearly four grams of crack cocaine.

Because he is a felon, Preston is prohibited under federal law from possessing firearms or ammunition at any time. Preston’s prior Hennepin County convictions include unlawful possession of a pistol (1997), attempted first-degree aggravated robbery (1997), fifth-degree controlled substance crimes (1999 and 2009), a second-degree controlled substance crime (2001), terroristic threats (2005), violation of a no-contact order (2009), attempted violation of a no-contact order (2009), and domestic assault (2010). The U.S. contends that because at least three of these convictions constituted crimes of violence or serious drug offenses, Preston will be subject to the Armed Career Criminal Act in the current federal case. That act mandates a minimum of 15 years in prison for anyone convicted in federal court for being a felon in possession of a firearm or ammunition if they have three or more prior violent crime or serious drug convictions. Judge Frank 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
Violent Crime Impact Team for the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorneys Surya Saxena and Andrew Dunne.

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, an Apple Valley woman pleaded guilty to defrauding both her employer and Medica. Lori Jo Mueller, age 48, pleaded guilty to one count of wire fraud and one count of health care fraud in connection to the crime. Mueller, who was charged on January 9, 2013, entered her plea before United States District Court Judge David S. Doty. In her plea agreement, Mueller admitted that from June of 2006 through June of 2012, she embezzled approximately $840,000 from Edelweiss Home Health Care, using the funds for her personal use.

Mueller began working for Edelweiss, located in Maple Grove, in 2002, and was ultimately promoted to the position of vice president of operations. In that capacity, she was responsible for the review and payment of corporate invoices, bookkeeping, and other financial matters. Mueller admitted using her access to the corporate checking account to issue payments to herself. She also concealed her actions from the company owners and made misrepresentations concerning the company’s financial state.

In addition, from March of 2010 through June of 2012, Mueller defrauded Medica, a non-profit corporation that provides health insurance products to individuals and families. She submitted claims to various insurers, seeking reimbursement for services provided by Edelweiss nursing staff. In some instances, Mueller double-billed by allowing claims for the same services to multiple insurance providers. For example, Mueller allowed both Minnesota Medicaid and Medica to be billed for identical services provided to one client. The particular double-billing resulted in a double-payment to Edelweiss with Medicaid being the proper payer and Medica being the overpayer. As a result of this criminal behavior, Mueller caused more than $631,000 in fraudulent proceeds to be paid by Medica.

For her crimes, Mueller faces a potential maximum penalty of 30 years in federal prison for wire fraud and ten years for health care fraud. Judge Doty will determine her 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 U.S. Department of Health and Human Services-Office of Inspector General (“DHHS-OIG”). It is being prosecuted by Assistant U.S. Attorney David M. Genrich.

The U.S. Attorney’s Office participates in a task force with the Medicaid Fraud Control Unit at the Minnesota Attorney General’s Office that focuses on home health care fraud trends. The task force includes the DHHS-OIG, the FBI, the Internal Revenue Service, and other federal, state, and local law enforcement partners.

As a result of federal convictions for health care fraud, defendants are excluded from participating in federal health benefit programs, including Medicare and Medicaid. Exclusion determinations are made by the U.S. Department of Health and Human Services. Nationwide, more than 3,000 individuals were excluded from program participation in Fiscal Year 2010 based upon criminal convictions or patient abuse or neglect, license revocations, or other factors.

For more information, visit http://www.stopmedicarefraud.gov/or http://www.stopfraud.gov/protect-health.html.

 

 

MINNEAPOLIS—Late this afternoon in federal court in St. Paul, a business associate of Thomas J. Petters, the Minnesota businessman convicted in 2009 of orchestrating a $3.65 billion Ponzi scheme, pleaded guilty to fraudulently raising money from individuals and through hedge funds for investment in Petters Company, Inc. (“PCI”). Frank Elroy Vennes, Jr., age 55, of Stuart, Florida, was charged on July 11, 2011, in a Second Superseding Indictment. Appearing today before United States District Court Judge Richard H. Kyle, he specifically pleaded guilty to one count of securities fraud and one count of money laundering.

Following the plea hearing, U.S. Attorney B. Todd Jones said, “This case exemplifies one of the highest priorities of this office — protecting our citizens from financial fraud. Because of the tremendous dedication of this office and our investigative partners, we successfully constructed a very strong case. We were able to convict Tom Petters, the biggest fraudster in Minnesota history, who is now serving a 50-year sentence in Leavenworth. We also successfully prosecuted many of his associates, and today, yet another individual pleaded guilty. We are taking action to recoup the financial losses suffered by so many because of this fraud and know the court will appropriately sentence Mr. Vennes for his related crimes.”

FBI Special Agent in Charge Chris Warrener added, “This guilty plea today symbolizes the ongoing joint efforts between the FBI, the U.S. Attorney’s Office, IRS-CI, and the U.S. Postal Inspection Service to combat significant fraud in the State of Minnesota. It also reflects our continued joint commitment to ensuring that those responsible for the Petters fraud are held accountable.”

From 1995 through September of 2008, Vennes and his company, Metro Gem, obtained money from others for investment in PCI notes. He also assisted in the formation of hedge funds, known as the Arrowhead Funds, to help raise additional investment funds for that same purpose. Beginning in 2001 and proceeding through September 24, 2008, he knew that individuals associated with the Arrowhead Funds were making misrepresentations and omissions to investors regarding investments in PCI, and he aided and abetted in those misrepresentations.

“This complex investigation shows that the appearance of success can be a mask for a tangled financial web of lies,” said Kelly R. Jackson, Special Agent in Charge of the St. Paul Field Office of the IRS-CI. “Ponzi schemes can thrive for a long time because of the false representations about the investments that were made to investors. But that time is gone, and as Mr. Vennes’ plea shows, it’s time for those responsible to face judgment.”

PCI was owned and operated by Tom Petters, who, in or before 1993, initiated the Ponzi scheme by representing that funds invested in PCI promissory notes would finance the purchase of electronics and other consumer merchandise. Purportedly, PCI would resell that merchandise for a profit to certain “big box” retailers, including Sam’s Club and Costco. In truth, however, no merchandise was bought or resold. Instead, Petters diverted hundreds of millions of dollars for his own benefit and the benefit of his co-conspirators.

Petters’ Ponzi scheme unraveled in 2008, when federal agents executed search warrants at his business offices as well as other locations. He was subsequently prosecuted in federal court in the District of Minnesota and, in April of 2010, was sentenced to 50 years in federal prison. He is currently serving his sentence in the federal penitentiary in Leavenworth, Kansas.

In his plea agreement, Vennes admitted that he raised funds for investment in PCI notes through third-party agents, particularly after 1998. Because he had a federal criminal record, having been previously convicted on federal narcotics, firearms, and money laundering charges, he had difficulty obtaining funding on his own. As a result, he regularly worked through others, especially when trying to solicit money from banks and institutional investors. Arrowhead Capital Partners II, L.P. and Arrowhead Capital Finance, Ltd., collectively known as the Arrowhead Funds, were among those third-party agents.
From 1999 through September 2008, all paperwork and communication between PCI and the Arrowhead Funds went through Vennes or one of his employees. At the same time, Vennes received “commissions” from Petters for brokering deals involving the Arrowhead Funds. His commissions were based on the amount of money he raised for Petters and PCI. Between 2001 and 2008, Vennes received more than $48 million in commissions.

During that same time period, Vennes knew that those acting on his behalf were making material misrepresentations and omissions to investors in the Arrowhead Funds and did nothing to correct the situation. Investors were told, for example, that whenever a retailer purchased consumer electronics or other goods from PCI, those products were paid for by the retailer with funds directly deposited into a bank account under the control of a management company. Thus, investors were falsely assured that all PCI transactions were, in fact, taking place, and all money was secure. However, Vennes, among others, was well aware that no payments were ever received from retailers and, instead, came from PCI alone.
Furthermore, investors were never informed of Vennes’ criminal record or his involvement in the Arrowhead Funds’ transactions. And, finally, they were kept unaware that in late 2007 and early 2008, the PCI Notes held by the Arrowhead Funds were delinquent and were approaching default. Instead of disclosing that information to investors, Vennes and others arranged to secretly extend the due dates on the notes, the intent being to conceal the payment problems and to lull investors into believing their investments were secure and performing well.

Vennes’s co-defendant in this case, James Nathan Fry, age 59, of Orono, Minnesota, was charged with five counts of securities fraud, four counts of wire fraud, and three counts of making a false statement to the U.S. Securities and Exchange Commission during its investigation of investments in PCI by hedge funds under the management of Fry’s company, Arrowhead Capital Management. His trial is scheduled to begin on February 5, 2013.

For his crimes, Vennes faces a potential maximum penalty of ten years in prison on the money laundering count and five years on the securities fraud count. Judge Kyle will determine his sentence at a future hearing, yet to be scheduled.

If convicted, Fry faces a potential maximum penalty of 20 years on each wire fraud count and five years on each securities fraud and false statement count.

Two Florida hedge fund managers have pleaded guilty to committing fraud in connection to this scheme by making material misrepresentations to investors in their hedge funds concerning investments in PCI. David William Harrold, age 53, of Del Ray Beach, Florida, and Bruce Francis Prevost, age 52, of Palm Beach Gardens, Florida, await sentencing, each on four counts of securities fraud.

This case is the result of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service–Criminal Investigations, and the U.S. Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorneys Timothy C. Rank, Kimberly A. Svendsen, and Robert M. Lewis.

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 attack on 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 hopes to improve efforts across the federal executive branch, and, with state and local partners, investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

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

 

 

MINNEAPOLIS—Yesterday in federal court in St. Paul, a trial jury found a 35-year-old Red Lake man guilty of domestic assault involving a woman on the Red Lake Indian Reservation. On January 31, 2012, Brian Gordon Graves was convicted on one count of assault with a dangerous weapon and one count of domestic assault by a habitual offender. This is the second time the United States Attorney’s Office for the District of Minnesota has prosecuted someone under the federal “domestic assault by a habitual offender” law. Graves was indicted for these crimes on November 5, 2012.

According to the indictment and evidence presented at trial, on October 6, 2012, Graves assaulted the victim with a 12-gauge shotgun. This assault was committed after Graves was convicted on at least two prior occasions in Red Lake Indian Tribal Court (criminal domestic violence in 1997 and first-degree assault in 1998).

The domestic assault by a habitual offender law was enacted in 2006 by Congress as support to 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 and because domestic violence rates are extremely high in Indian Country.

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

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

For his crimes, Graves faces a potential maximum penalty of ten years in federal prison on the assault with a dangerous weapon count, and a potential maximum penalty of five years on the domestic assault by a habitual offender count. U.S. District Court Judge Donovan W. Frank will determine Graves’s sentences at a future hearing, not yet 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 Deidre Y. Aanstad.

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, a 48-year-old felon from the northern Minnesota community of Virginia pleaded guilty to possessing a .38-caliber revolver. John Carl Pape specifically pleaded guilty to one count of being a felon in possession of a firearm. Pape, who was indicted on October 15, 2012, entered his plea before United States District Court Judge Patrick J. Schiltz.

In his plea agreement, Pape admitted possessing the Smith & Wesson, five-shot revolver on May 6, 2012. On that day, police received a complaint that two vehicles had been vandalized in a church parking lot in Eveleth, Minnesota. One of the victims stated that her purse was stolen, and that it contained the gun and credit cards, among other items. Later that day, Pape was questioned by authorities and admitted attempting to make purchases and withdrawals with the victim’s stolen credit card. During the subsequent execution of a search warrant at Pape’s residence on May 6 and 7, 2012, officers seized items linked to the theft, including the gun.

Because he is a felon, Pape is prohibited under federal law from possessing firearms at any time. His previous St. Louis County convictions include third-degree burglary (1991 and 2004), fifth-degree possession of drugs (2007 and 2008), and fifth-degree sale of marijuana (1998).

Since at least three of Pape’s prior convictions constitute crimes of violence or major drug crimes, he is subject to the federal Armed Career Criminal Act if convicted in the current federal case. That act mandates a minimum of 15 years in federal prison. For his crime, Pape faces a potential maximum penalty of life in prison. Judge Schiltz will determine Pape’s sentence at a future hearing, not yet scheduled.

This case is the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.

 

 

MINNEAPOLIS—Earlier today in federal court, a St. Peter man was sentenced on one count of transporting illegal aliens. United States District Court Judge Patrick J. Schiltz sentenced Juan Arrazolo, also known as John Arrazolo, to three years of probation, six months of home confinement and a $2,000 fine. Arrazolo was indicted on April 16, 2012 and pleaded guilty on August 16, 2012.

Following today’s sentencing, Mike Feinberg, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations St. Paul Field Office (“ICE HSI”), said, “Those who transport or harbor illegal aliens require secrecy and often coercion to succeed. ICE HSI has a long history of targeting criminals who seek illegal gain at the expense of the innocent. We work with our state and local law enforcement partners to bring justice to anyone who exploits others for illegal profit.”

In his plea agreement, Arrazolo admitted that between October 2006 and October 2011, he transported two undocumented aliens from Texas to Minnesota to work in his business. Arrazolo’s company, Poultry Service Management, provided manual labor to large corporate chicken farms in Minnesota and the surrounding area. The workers loaded chickens for shipping, vaccinated chickens, trimmed chicken beaks, and provided other general labor as requested by the poultry producers. Arrazolo admitted that one of the individuals he transported was a citizen of Mexico, and that he knew the individual was not a U.S. citizen when he transported him from Texas to Minnesota.

This case was the result of an investigation by ICE HSI, the St. Peter Police Department, the Nicollet County Sheriff’s Office, the LeSueur County Sheriff’s Office, and the Minnesota Bureau of Criminal Apprehension. It was prosecuted by Assistant U.S. Attorney David P. Steinkamp.

 

 

MINNEAPOLIS—Earlier today in federal court, a 37-year-old Colorado man was sentenced for scheming investors out of more than $7 million. United States District Court Judge Patrick J. Schiltz sentenced Evan Matthew Flaxman, of Silverthorne, Colorado, to 52 months in prison on one count of mail fraud in connection to the crime. Flaxman was charged on June 14, 2012, and pleaded guilty on July 25, 2012.

In his plea agreement, Flaxman admitted that from December of 2009 through March of 2012, he induced investors to give him money, telling them he had extensive financial expertise and personal wealth and resources. That was not the case. He subsequently provided one investor with documents indicating investment gains. In reality, however, Flaxman had used investment funds for personal use, including the purchase of a Ferraris and Porsche automobiles and a Rolex watch. He also paid his taxes with the money.

This case was the result of an investigation by the U.S. Postal Inspection Service and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.

 

 

MINNEAPOLIS—A federal indictment unsealed earlier today charges three Minnesota tax preparers with filing false tax returns on behalf of their customers. Solomon Frank-Sawari, Chasma Dixon, and Tameca Stokes were each indicted on one count of conspiracy to defraud the United States and one count of aggravated identity theft. In addition, Frank-Sawari was charged with nine counts of preparing false income tax returns, and both Dixon and Stokes were charged with five counts of preparing false income tax returns. The indictment, which was filed on January 15, 2013, was unsealed following the defendants’ initial appearance in federal court.

The indictment alleges that from 2007 through February of 2010, the defendants conspired with each other to obstruct the Internal Revenue Service (“IRS”) in its collection of income taxes. At the time, Frank-Sawari owned and operated two tax-return preparation businesses: Merit Tax Service in Robbinsdale and Capitol Income Tax in Minneapolis. Dixon worked at Merit in 2007 and at Capitol in 2008 and 2009. Stokes worked at Capitol. All three prepared and filed federal and state income tax returns on behalf of customers.

Allegedly, the defendants prepared false tax returns that generated excessive refunds, totaling more than $200,000. In turn, those refunds purportedly resulted in excessive fees and other payments to the defendants.

For tax years 2006 through 2009, the defendants prepared and filed hundreds of federal and state tax returns.

The tax returns also allegedly contained false or inflated income figures as well as false dependents, whose identities the defendants used unlawfully. The false dependents fraudulently qualified the customers for a more favorable filing status, allowed them to take dependent exemptions, and inflated their refundable earned income and child tax credits.

The indictment alleges that the defendants recruited customers, instructing them to sign false income declarations and other paperwork. In many instances, one of the defendants reportedly accompanied the customers to check-cashing businesses to ensure that the defendants would receive some portion of the fraudulent tax refund checks.

If convicted, the defendants face a potential maximum penalty of five years in federal prison for conspiracy, three years on each count of preparing false tax returns, and a mandatory minimum penalty of two years on each count of aggravated identity theft. All sentences will be determined by a federal district court judge.

This case is being investigated by the IRS-Criminal Investigations. It is being prosecuted by Assistant U.S. Attorney William J. Otteson.

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. Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.

 

 

MINNEAPOLIS—Earlier today in federal court in St. Paul, a 38-year-old Minneapolis man pleaded guilty to distributing cocaine, crack cocaine, and the semisynthetic psychedelic drug MDPV, commonly known as ecstasy. Antoine Kenyetta Poole specifically pleaded guilty to one count of conspiracy to distribute controlled substances. Poole, who was indicted along with Jermaine Aquarius Edison on September 11, 2012, entered his plea before United States District Court Judge Donovan W. Frank. On December 18, 2012, Edison, age 40, also of Minneapolis, pleaded guilty to one count of conspiracy.

In their plea agreements, the defendants admitted that from February 14 through August 16, 2012, they conspired with others to distribute 500 or more grams of cocaine, 28 grams of crack cocaine, and ecstasy. The conspiracy involved sending large amounts of cash to California for the purchase of cocaine. For example, on May 2012, law enforcement seized a package containing $18,000, which Edison was sending to California. In entering their pleas, the defendants also admitted distributing the controlled substances once they were received from their California suppliers.

According to a law enforcement affidavit filed in the case, authorities began investigating Edison in February of 2012 and subsequently made several controlled purchases of cocaine, crack cocaine, and ecstasy.

For their crimes, the defendants face a potential maximum penalty of 40 years in prison. Judge Frank will determine their sentences at a future hearing, yet to be scheduled.

This case is the result of an investigation by the U.S. Drug Enforcement Administration, the Minneapolis Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.

 

 

MINNEAPOLIS—Earlier today in federal court, a 26-year-old Denver, Colorado, man, formerly of Plymouth, Minnesota, was sentenced for receiving, via his computer, thousands of images of child pornography. United States District Court Judge Patrick J. Schiltz sentenced Russell Ronald Brimeyer to 85 months in federal prison on one count of receipt of child pornography. Brimeyer was charged on May 7, 2012, and pleaded guilty on June 26, 2012.

In his plea agreement, Brimeyer admitted that on April 15, 2009, he received, by way of his computer, thousands of images of a minor under the age of 12 engaged in sexually explicit conduct. He received the images through an Internet peer-to-peer, file-sharing program. Authorities discovered the images on Brimeyer’s computer and other media devices on September 24, 2009, during the execution of a search warrant at his residence.

This case was the result of an investigation by the Minnesota Cyber Crimes Task Force, which is sponsored by the Federal Bureau of Investigation and the U.S. Secret Service, and the National Center for Missing and Exploited Children. It was prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.

Presently, the Justice Department is funding a study concerning the correlation between involvement in child pornography and the 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.

The U.S. Department of Justice is committed to combating the sexual exploitation of children, particularly via the Internet. In Fiscal Year 2010, 2,235 defendants pleaded guilty to federal child pornography charges, 2,222 of whom were sentenced to prison. In Fiscal Year
2009, 2,083 defendants were sentenced to prison on child pornography charges. For more information about these efforts, please visit the Department’s Project Safe Childhood website, at www.projectsafechildhood.gov.

 

 

MINNEAPOLIS—Earlier today in federal court, a 32-year-old woman incarcerated at the Federal Correctional Institute in Waseca, Minnesota, was indicted for stealing more than $23,000 in Social Security benefits. Nefertiti Randall was charged with one count of theft of government money or property.

The indictment alleges that from June 12, 2009, through May 16, 2012, Randall stole $23,012 from the Social Security Administration. The funds, which were deposited automatically 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.

If convicted, Randall 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 Social Security Administration-Office of Inspector General, with cooperation from the United States Bureau of Prisons. 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—Earlier today in federal court, a 52-year-old Brooklyn Park man was sentenced for executing a scheme to defraud Medicaid out of more than $500,000. United States District Court Judge David S. Doty sentenced Allwell Tam Inimgba to 18 months in prison on one count of health care fraud. Inimgba, was charged on September 21, 2012, and pleaded guilty on October 9, 2012.

In his plea agreement, Inimgba admitted that from January of 2006 to March of 2009, he executed a scheme to defraud Medicaid, a federal health benefit program, by billing it for services supposedly provided by Registered Nurses (“RNs”), when that was not the case. At the time, Inimgba was the responsible billing party for Victory Home Care, Inc. (“Victory”), a home health care agency that provided, or purported to provide, RN services to Medicaid recipients.

During the time period noted above, Inimgba billed Medicaid for more than 20,000 hours of services supposedly provided to various clients by RNs, and Medicaid paid Victory more than $1,400,000 as a result of those claims. However, RNs provided far less care than noted in Victory’s claims. In fact, approximately $513,734 awarded to Victory was ultimately found to be for work not done by RNs.

This case was the result of an investigation by the U.S. Department of Health and Human Services-Office of Inspector General, the Federal Bureau of Investigation, the Minnesota Department of Health, and the Minnesota Attorney General Office’s Medicaid Fraud Control Unit. It was prosecuted by Assistant U.S. Attorney David M. Genrich.

According to the Justice Department, health care fraud investigations have been growing, and the Department has formed a senior-level task force to tackle the problem nationwide. The Health Care Fraud Prevention and Enforcement Action Team, represented by the Department of Justice and Health and Human Services, will look at how to share more effectively real-time intelligence data on health care fraud patterns as well as critical information about health care services, pharmaceuticals, and medical devices. In 2008, the Justice Department filed criminal charges in 502 health care fraud cases involving 797 defendants.

In Minnesota, the U.S. Attorney’s Office is also participating in a task force with the Minnesota Attorney General Office’s Medicaid Fraud Control Unit that focuses on home health care fraud. That task force includes the U.S. Department of Health and Human Services-Office of Inspector General, the Federal Bureau of Investigation, the Internal Revenue Service, and other federal, State and local law enforcement partners.

For more information, visit http://www.stopmedicarefraud.gov/

 

 

MINNEAPOLIS—A federal superseding indictment unsealed earlier today charges a previously indicted man with murder in connection to the deaths of a couple on the Red Lake Indian Reservation on New Year’s Day 2011. Twenty-one-year-old Kevin John Needham, previously charged with one count of robbery, has now also been charged with two counts of murder in the first degree and two counts of murder in the second degree. The superseding indictment, originally filed under seal on January 15, 2013, was unsealed today, after Needham’s initial court appearance on the murder charges.

The charges against Needham’s four co-defendants remain unchanged. All four were indicted on two counts of murder in the first degree, two counts of murder in the second degree, and one count of robbery. The four co-defendants include Geshik-O-Binese Martin, age 30; Edward McCabe Robinson, age 28; David John Martin, age 46, of Columbia Heights; and George Allen Martin, age 24, of Red Lake. All four are in federal custody.

The original indictment alleges that on January 1, 2011, Needham, Robinson, and the Martins killed Craig David Roy and Darla Ann Beaulieu while stealing money and illegal drugs from Roy’s reservation residence. The bodies of Beaulieu and Roy were found in the remains of the house, which was destroyed by fire on that day. Autopsies determined that both victims were killed as a result of multiple stab wounds and not the fire itself.

If convicted of murder, Needham, Robinson, and the Martins face potential maximum penalties of life in federal prison. They also face a potential maximum penalty of 15 years in federal prison on the robbery charge. Because the federal criminal justice system does not have parole, convicted offenders spend virtually their entire prison sentences behind bars. Of course, actual sentences are determined by federal district court judges.

This case is the result of an investigation by the Federal Bureau of Investigation and the Red Lake Tribal Police Department, with assistance from the Minnesota Bureau of Criminal Apprehension and the State Fire Marshal. It is being prosecuted by Assistant United States Attorneys Deidre Y. Aanstad and Nathan P. Petterson.

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—Earlier today in federal court, a 34-year-old Minneapolis felon was sentenced for possessing a .32-caliber pistol. United States District Court Judge Joan N. Ericksen sentenced Bryant Duane Griffin to 240 months in prison on one count of being a felon in possession of a firearm. Griffin was indicted on May 15, 2012, and was convicted on September 14, 2012.

The evidence presented at trial proved that on March 25, 2012, Griffin possessed the gun while on a Metro Transit bus. On that date, police received a call at approximately 1:00 a.m. The caller reported that a man with a gun was riding a city bus. Officers located the bus and the man. He was later identified as Griffin. They found the gun under a seat in front of him.

Because he is a felon, Griffin is prohibited under federal law from possessing a firearm at any time. His prior Hennepin County convictions include fifth-degree possession of a controlled substance (1999) and attempted terroristic threats (2001). In addition, he was convicted of second-degree sale of a controlled substance in Stearns County (2008) and third-degree sale of a controlled substance in Benton County (2008). Since three of those prior offenses were crimes of violence or major drug crimes, Griffin was subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison. Since the federal criminal justice system does not have parole, Griffin will serve virtually his entire sentence behind bars.

This case was the result of an investigation by the Brooklyn Park Police Department, the Metro Transit Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorneys John E. Kokkinen, Kimberly A. Svendsen, and Surya Saxena.

 

 

MINNEAPOLIS—Earlier today in federal court, a 53-year-old Woodbury woman was sentenced for using an alternative identity to receive, among other things, more than $18,000 in Low Income Housing Tax Credits (“LIHTC”) from the United States Department of Housing and Urban Development (“HUD”).
United States District Court Judge Joan N. Ericksen sentenced Victoria Ayoola to two years of probation on one count of social security fraud and one count of making false statements. In addition, Ayoola was ordered to pay $18,114 in restitution. Ayoola was indicted on July 10, 2012, and pleaded guilty on August 23, 2012.

Following today’s sentencing, Michael Feinberg, Special Agent in Charge of U.S. Immigration and Customs Enforcement-Homeland Security Investigations’ St. Paul Field Office (“ICE HSI”), said, “This type of fraud poses serious security vulnerability, one that often contributes to a host of other crimes – including identity theft and financial fraud. Targeting schemes like this that enable individuals to obtain fraudulent U.S. identity documents is a top priority for ICE HSI, and we are committed to working with our law enforcement partners to detect, investigate, and dismantle this type of activity.”

In the plea agreement, Ayoola admitted that she applied for and received a social security card under the name Oluremi George on November 19, 1996. On the application, Ayoola indicated to the Commissioner of Social Security that she had never before been issued a social security number. However, Ayoola knew she already had a social security number under the name Victoria Ayoola, issued on November 26, 1991.

Since 1996, Ayoola has used both social security numbers and identities to apply for and renew Minnesota identification cards and driver’s licenses, seek and obtain employment, and file federal and state tax returns. George also used the false identity to receive a lower monthly housing rental rate by qualifying for a LIHTC rental unit at Pondview Townhomes in Woodbury.

Pondview is a low income housing development that provides housing assistance to its residents through the use of HUD loans and funds as well as through LIHTCs. To be eligible to live in one of the units, a person must make less than the federal annual tax credit income limit. In 2011, that limit for Washington County, Minnesota, was $35,280. In an effort to qualify for the subsidized housing unit, George certified that her anticipated 2011 income would be $30,930, even though she knew it would be approximately $55,887.13.

Ayoola’s fraud has resulted in more than $18,000 in underpayments of rent since 2004.

This case was the result of an investigation by ICE HSI and its Document and Benefit Fraud Task Force, the Social Security Administration’s Office of Inspector General, HUD’s Office of Inspector General, the U.S. State Department’s Diplomatic Security Service, and the Minnesota State Patrol, with assistance from the Minnesota Secretary of State’s Office. It was prosecuted by Assistant U.S. Attorney Andrew Dunne.

 

 

MINNEAPOLIS—Earlier today in federal court in St. Paul, a 38-year-old woman pleaded guilty to fraudulently obtaining more than $29,000 in Social Security benefits. Dora White, who is incarcerated at the Shakopee Women’s Prison, pleaded guilty to one count of theft of government funds. White, who was charged on December 27, 2012, entered her plea before United States District Court Judge Richard H. Kyle.

In her plea agreement, White admitted that from May of 2007 to January of 2011 she received $29,755.30 in Social Security benefit payments on behalf of her daughter. In August of 2005, White became the representative payee for her daughter. White also admitted that between May of 2007 and January of 2011, she completed and signed accounting reports that falsely attested that her daughter resided with her and that the funds were going to be used for her daughter’s care. In fact, in April of 2007, the daughter was placed in foster care and was not in White’s custody.

For her crime, White faces a potential maximum penalty of ten years in federal prison. Judge Kyle will determine her sentence at a future hearing, not yet scheduled. This case is the result of an investigation by the Social Security Administration’s Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.

 

 

MINNEAPOLIS -- In the District of Minnesota, court action continued this week in two separate cases involving foreign nationals who entered the United States illegally after being deported as criminals. Yesterday, one of those men was sentenced on one count of illegal entry after removal, while earlier in the week a second man was sentenced for the same crime.

In the first case, U.S. District Court Judge David S. Doty sentenced Miguel Angel Renteria-Garcia, age 40, to 41 months in federal prison. Renteria-Garcia was indicted on July 23, 2012, and pleaded guilty on September 21, 2012. In his plea agreement, Renteria-Garcia admitted that on July 5, 2012, he was found in the U.S. after having been previously deported in 1996, following California convictions for possession of a controlled substance while armed and possession with intent to sell a controlled substance. On July 5, 2012, Renteria-Garcia, also known as Rodolfo Amescua-Flores, was stopped by the Minnesota State Patrol near Owatonna in connection to the seizure of approximately 235 pounds of marijuana.

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Minnesota State Patrol. It was prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.

In the second case, Daniel Gonzalez-Deleone, age 35, was sentenced to 24 months in federal prison by U.S. District Court Judge Richard H. Kyle. Gonzalez-Deleone was indicted on June 18, 2012, and pleaded guilty on August 10, 2012. In his plea agreement, Gonzalez-Deleone admitted that on May 15, 2012, he was found in the U.S. illegally after having been previously deported. His deportation followed a 2005 California conviction for sale or transportation of marijuana. On May 15, 2012, he was arrested for loitering and for public consumption and was held in the Hennepin County jail, where he was identified as an illegal alien with a criminal record.

That identification was made though the U.S. Immigration and Customs Enforcement’s (“ICE”) 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-entering the U.S. In some instances, federal prosecution will occur only after the individual is 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. Attorneys Kevin S. Ueland and Lola Velazquez-Aguilu.

Both men will be deported after serving their federal sentences. To learn more about the CAP, visit www.ice.gov/criminal-alien-program/

 

 

MINNEAPOLIS—Earlier today in federal court, a 25-year-old career criminal was sentenced for possessing a .38-caliber revolver. United States District Court Judge Ann D. Montgomery sentenced Lewis Pate, no known address, to 200 months in prison on one count of possession of a firearm by a career criminal. Pate was indicted on May 8, 2012, and was convicted on August 15, 2012.

The evidence presented at trial proved that on March 20, 2012, St. Paul police were called to the 980 block of Reaney Avenue at approximately 2:30 p.m., following a report of shots fired. Witnesses claimed three men had exchanged gunfire in a nearby alley. A police canine tracked the scent of one of the reported suspects to a house in the 970 block of Margaret Avenue. There, police found Pate inside. During the execution of a search warrant at the house, police also found a six-shot revolver with four live rounds. It was in the bathroom clothes hamper, wrapped in a towel.

Because he is a felon, Pate is prohibited under federal law from possessing a firearm at any time. His prior Ramsey County convictions include auto theft and fleeing a police officer in a motor vehicle (2007) and auto theft and fleeing a police officer in a motor vehicle (2008). Pate was also convicted in Hennepin County for third-degree burglary in 2008 and Dakota County for aggravated robbery in 2010.

Since those offenses constitute crimes of violence, Pate was subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in 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.

This case was the result of an investigation by the St. Paul 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—Yesterday in federal court, two men from northern Minnesota were indicted in connection with the December 10, 2012, armed robbery of the First State Bank of Bigfork, located in Kelliher, Minnesota. Cody Lowell Troy, age 19, of Mizpah, and Travis Michael Burns, age 20, of Bemidji, were charged with one count of armed bank robbery. In addition, Troy was charged with one count of brandishing a firearm during a crime of violence and one count of being a felon in possession of a firearm.

The indictment alleges that on December 10, 2012, the defendants stole approximately $3,738 from the bank while putting the lives of others in jeopardy by brandishing a 12-gauge, sawed-off shotgun. In addition, authorities assert that the shotgun’s serial number was partially obliterated.

According to a law enforcement affidavit filed in the case, an individual, later identified as Troy, entered the bank at approximately 2:24 p.m. He reportedly wore a white protective containment suit, a “Halloween” movie style mask, Nike Air Jordan shoes, and black gloves. Allegedly, he approached a teller, placed a black backpack on the counter, pointed the shotgun in the teller’s direction, and pumped the gun. The teller immediately placed the money in the backpack, which Troy allegedly grabbed before fleeing the premises in a red pickup truck.

On December 12, 2012, police arrested Troy in Bemidji on an outstanding Itasca County warrant for failure to appear in connection with a prior felony. At that time, officers also located a red pickup that matched the description of the one witnesses spotted in the vicinity of the bank immediately after the robbery.

During the subsequent execution of a search warrant at the Bemidji apartment where Burns lived and Troy was staying, authorities seized shotgun shells, a hacksaw, and a loaded sawed-off shotgun, as well as the sawed-off gun stock and barrel. They also recovered a white protective containment suit, black gloves, Nike Air Jordan shoes, and a “Halloween” movie style mask. The backpack used in the robbery, as well as some money from the bank were recovered in Burns’ bedroom.

Because he is a felon, Troy is prohibited under federal law from possessing a firearm at any time. In 2011, Troy was convicted of third-degree burglary in Koochiching County.

If convicted, the defendants face a potential maximum penalty of 25 years in prison for armed bank robbery. In addition, Troy faces a potential maximum penalty of ten years for being a felon in possession of a firearm and a mandatory minimum penalty of ten years for brandishing a firearm during a violent crime. All sentences will be determined by a federal district court judge.

This case was investigated by the Federal Bureau of Investigation, the Beltrami County Sheriff’s Office, the Headwaters Safe Trails Task Force, and the Minnesota Bureau of Criminal Apprehension. It is being prosecuted by Assistant United States Attorneys Manda M. Sertich and Kevin S. Ueland.

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, a 25-year-old St. Paul felon was indicted for possessing a .22-caliber revolver, ammunition, and methamphetamine. On January 15, 2013, Christopher Lee Rousseau was charged with one count of being an armed career criminal in possession of a firearm, one count of being an armed career criminal in possession of ammunition, one count of carrying a firearm in relation to a drug-trafficking crime, and one count of possession with intent to distribute methamphetamine.

The indictment alleges that on December 3, 2012, Rousseau possessed the revolver, two rounds of .22-caliber ammunition, and methamphetamine. Because he is a felon, Rousseau is prohibited under federal law from possessing a firearm or ammunition at any time. His prior convictions in Ramsey County include aiding and abetting second-degree burglary (2010) and fleeing police in a motor vehicle (2011). In addition, Rousseau was convicted in Pine County for fleeing police in a motor vehicle in 2007 and, in Dakota County, for third-degree burglary in 2010. Because these convictions constituted crimes of violence, Rousseau is subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm and/or ammunition.

According to a law enforcement affidavit filed in the current case, at approximately 12:30 a.m. on December 3, 2012, officers stopped Rousseau on a traffic violation near the intersection of U.S. Highway 61 and Warner Road. He was arrested for driving after cancellation of license. During a search of Rousseau’s person, police found the ammunition and $385. A search of the vehicle led to the recovery of the gun and the methamphetamine.

If convicted, Rousseau faces a potential maximum penalty of 20 years in prison on the methamphetamine possession count, and a mandatory minimum penalty of five years on the carrying a firearm count, as well as the 15-year mandatory minimum penalty on each of the two armed career criminal counts. All sentences will be determined by a federal district court judge.

This case is the result of an investigation by the St. Paul Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Lola Velazquez-Aguilu.

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.