Eastern District of Wisconsin

Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin joined Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and other federal officials in announcing that July 14, 2021 Stephen Smith, (42), of Milwaukee, WI was sentenced today to 36 months in prison for fraudulently seeking over $600,000 in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Smith, 42, of Milwaukee, pleaded guilty on April 12. According to court documents, Smith admitted that he fraudulently sought, on behalf of three different companies, over $600,000 in PPP loans through applications to an insured financial institution. According to his plea agreement, Smith caused fraudulent loan applications to be submitted that made numerous false and misleading statements about the companies’ respective payroll expenses. Smith then directed his co-conspirators to send him portions of the PPP funds within days of receiving them and used the proceeds for personal expenses.

In addition to the prison sentence, Smith was ordered to pay $397,500 in restitution.

The FBI, SBA-OIG, FDIC-OIG, and IRS-CI investigated the case.

Trial Attorneys Laura Connelly and Leslie S. Garthwaite of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Ingraham of the Eastern District of Wisconsin are prosecuting the case.

The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases.

The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at:  https://www.justice.gov/criminal-fraud/ppp-fraud.

In May, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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For Additional Information Contact:

Public Information Officer Kenneth Gales 414-297-1700

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A Wisconsin man was sentenced today to 36 months in prison for fraudulently seeking over $600,000 in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Stephen Smith, 42, of Milwaukee, pleaded guilty on April 12. According to court documents, Smith admitted that he fraudulently sought, on behalf of three different companies, over $600,000 in PPP loans through applications to an insured financial institution. According to his plea agreement, Smith caused fraudulent loan applications to be submitted that made numerous false and misleading statements about the companies’ respective payroll expenses. Smith then directed his co-conspirators to send him portions of the PPP funds within days of receiving them and used the proceeds for personal expenses.

In addition to the prison sentence, Smith was ordered to pay $397,500 in restitution.

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin; Special Agent in Charge Sharon Johnson of the SBA’s Office of Inspector General (SBA-OIG) Central Region; Special Agent in Charge Robert E. Hughes of the FBI’s Milwaukee Field Office; Acting Special Agent in Charge Fran L. Mace of the Federal Deposit Insurance Corporation – OIG (FDIC-OIG); and Special Agent in Charge Kathy Enstrom of the IRS Criminal Investigation (IRS-CI) Chicago Field Office made the announcement.

The FBI, SBA-OIG, FDIC-OIG and IRS-CI investigated the case.

Trial Attorneys Laura Connelly and Leslie S. Garthwaite of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Ingraham of the Eastern District of Wisconsin are prosecuting the case.

The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at:  https://www.justice.gov/criminal-fraud/ppp-fraud.

In May, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on July 7, 2021, a federal grand jury indicted four men, in two separate cases, for various offenses committed during the unrest in Kenosha, Wisconsin, in August 2020.

In the first case, Allen King, David Garner, and Kevin Martinez are charged with conspiring to steal controlled substances and transport stolen goods in interstate commerce, in violation of Title 18, United States Code, Section 371.  King and Garner are also charged with two counts of arson, and conspiring to commit arson, in violation of Title 18, United States Code, Sections 844(i) and 844(n). Martinez is additionally charged with illegally possessing ammunition as a felon, in violation of Title 18, United States Code, Section 922(g)(1).

The charge against Martinez for illegally possessing ammunition stems from the shooting incident depicted below.

According to a publicly filed complaint, King, Garner, and Martinez traveled together from Minnesota to Kenosha on August 24, 2020.  The complaint alleges that while in Kenosha, King and Garner attempted to set fires at a bar.  King, Garner, and Martinez also looted and damaged other establishments in Kenosha, including a pharmacy and a gas station. The complaint further alleges that all three men described their illegal activities on social media, with King and Garner attempting to sell the stolen controlled substances over that same platform.

In the second case, Devon Vaughn is charged with arson, in relation to the fire at B&L Office Furniture in Kenosha. 

Each of the arson crimes described above carries a mandatory minimum term of five years’ imprisonment.

“These cases are the direct result of the dedicated, skilled, and collaborative efforts of ATF and its federal, state, and law enforcement partners,” stated Acting U.S. Attorney Frohling.  “Along with our partners, the Department of Justice is committed to holding individuals who engage in arson and other violent offenses accountable for their actions.” 

“I commend all the law enforcement agencies for their tireless efforts and the United States Attorney’s Office for their diligence in charging these crimes that were committed during the civil unrest in Kenosha last August,” remarked ATF Special Agent in Charge Kristen de Tineo of the Chicago Field Division. “ATF, alongside our partners, will continue to investigate those violent acts, and appeal to the public for their assistance, to ensure those responsible are held accountable.”  

“The Kenosha Police Department is grateful for the support and resources provided by our Federal, State and Local partners,” said Kenosha Police Chief Eric Larsen.  “We are committed to continuing our joint investigations into the destruction that occurred in the City of Kenosha last August, until every last person responsible is brought to justice.”

Law enforcement is still investigating various other crimes associated with the unrest in Kenosha.  Anyone with information about the individuals depicted in the following photos should contact Kimberly Nerheim, Public Affairs Specialist, Bureau of Alcohol, Tobacco, Firearms and Explosives, at (773) 658-6419. There is a potential reward involved.

These cases were investigated by the Milwaukee Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kenosha Police Department, the Kenosha County Sheriff’s Office, and the Milwaukee County Sheriff’s Office. They will be prosecuted by Assistant United States Attorneys Kevin Knight and Philip Kovoor.

An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove them guilty beyond a reasonable doubt.

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Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on August 25, 2020, a federal grand jury indicted Herlin Hernandez-Trinidad (a/k/a “Rainely), and on January 26, 2021, a federal grand jury indicted Jose Crespo-Lorenzo (a/k/a “El Colombiano”).  In both cases, the defendants were charged with a count of conspiracy to possess with intent to distribute five kilograms or more of cocaine on board a vessel subject to the jurisdiction of the United States, in violation of Title 46, United States Code, Section 70506(b); and a count of conspiracy to possess with intent to distribute five kilograms or more of cocaine, in violation of Title 21, United States Code, Section 846. 

Both Hernandez-Trinidad and Crespo-Lorenzo were recently arrested in Puerto Rico and transferred to Milwaukee, Wisconsin, to face prosecution in this district.

“These indictments demonstrate an extraordinary effort by federal, state, and local law enforcement to hold accountable those involved in international drug-trafficking activity designed to flood the streets of the United States and other parts of the world with harmful controlled substances,” said Acting U.S. Attorney Frohling.

“This investigation demonstrates the commitment of DEA and the involved partner agencies to pursue and disrupt the drug-trafficking organizations that are inflicting harm upon our communities with dangerous and illegal narcotics,” said DEA Wisconsin Assistant Special Agent in Charge John McGarry.

“This indictment is a great example of what can be accomplished when federal, state, and local law enforcement agencies work in collaboration. HSI will continue its efforts to disrupt and dismantle drug trafficking organizations like this one to keep our communities safe from the harmful effects of illicit drugs,” said Angie Salazar, special agent in charge, HSI Chicago.

“Wisconsin DOJ’s Division of Criminal Investigation worked alongside federal and local law enforcement partners on this sweeping investigation into large-scale drug trafficking,” said Attorney General Kaul. “Thank you to the investigators whose work has led to the arrests of many alleged members of this drug trafficking conspiracy. Cases like this one disrupt the supply of dangerous drugs to communities and can make a real difference in the fight against the drug epidemic.”

Each count carries a mandatory ten-year term of imprisonment and up to life imprisonment. The defendants further face fines of up to $10,000,000, and from five years to a lifetime term of supervised release.

An indictment is only a charge and not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove their guilt beyond a reasonable doubt.

The indictments are the product of a multi-year investigation into international drug-trafficking activity, including maritime shipments of bulk quantities of cocaine that were ultimately intended to reach various locations within the continental United States (such as Milwaukee, Wisconsin) and elsewhere.

The investigation is led by law enforcement agents and officers from the Drug Enforcement Administration (DEA), the North Central High Intensity Drug Trafficking Area (HIDTA), the Wisconsin Department of Justice, Division of Criminal Investigations, Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Inspection Service, and the Milwaukee Police Department.  Assistant United States Attorneys Robert J. Brady, Jr., and Gail Hoffman are prosecuting the case.

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For further information contact:

Public Information Officer

Kenneth.Gales@usdoj.gov

(414) 297-1700

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Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on July 7, 2021, Natalie J. Ticho (age: 25) of Wausau, Wisconsin, appeared in federal court in Green Bay and pled guilty to a single-count information charging her with distribution of child pornography.

As detailed in a plea agreement filed in the case, Ticho distributed sexually explicit images of a 7-year-old child and engaged in conversations online about child pornography. Unbeknownst to Ticho, she was communicating with an undercover law enforcement officer. Her arrest and subsequent conviction were part of Operation Kick Boxer, a collaborative effort involving the Milwaukee Division of the Federal Bureau of Investigation (FBI), the U.S. Attorney’s Office for the Eastern District of Wisconsin, and the Winnebago County Sheriff's Office. (https://go.usa.gov/xfPHh).   

Ticho will be sentenced on October 12, 2021, at 1:30 p.m. before Senior United States District Judge William C. Griesbach.  Pursuant to the terms of the plea agreement, Ticho will receive a 90-month federal prison sentence.  She will also be required to register as a sexual offender.

This case was investigated by the Winnebago County Sheriff’s Office and the FBI’s Milwaukee and Green Bay Offices, with the assistance of the Wausau Police Department and the Marathon County District Attorney’s Office.  It is being prosecuted by Assistant United States Attorney Daniel R. Humble.

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

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For further information contact: Public Information Officer

Kenneth.Gales@usdoj.gov

(414) 297-1700

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Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on June 28, 2021, Timothy J. Tetzlaff (age: 59) of the Town of Mishicot, Wisconsin, was sentenced to 30 years in federal prison by Senior United States District Judge William C. Griesbach.

In March 2021, Tetzlaff pled guilty to Transportation of a Minor with the Intent to Engage in Criminal Sexual Activity and Production of Child Pornography.  The facts introduced at the sentencing hearing demonstrated that Tetzlaff sexually abused at least eight Manitowoc area children beginning in 1987.

In October 2020, an underage victim came forward and reported abuse by Tetzlaff to Manitowoc authorities and the Federal Bureau of Investigation (FBI).  An investigation revealed that Tetzlaff often took minors on camping trips throughout the United States and Canada, abusing them numerous times during the journeys.  Tetzlaff also assaulted the children at his home in the Town of Mishicot.  Law enforcement also discovered digital images of one of the victims on a digital camera belonging to Tetzlaff.  Teztlaff had surreptitiously photographed the child while he slept in 2015. Following his arrest, several additional victims came forward to report being abused by Tetzlaff.  

When sentencing Tetzlaff, Judge Griesbach noted the horrendous nature of the crimes and Tetzlaff’s pattern of preying on children.  Judge Griesbach explained that a 30-year prison sentence was lengthy enough to protect the community given Tetzlaff’s advanced age.  Upon the completion of his prison sentence, Tetzlaff will serve the remainder of his life on supervised release.

This case was investigated by the Manitowoc County Sheriff’s Office and the Green Bay office of the FBI. It was prosecuted by Assistant United States Attorney Daniel R. Humble.

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

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For further information contact:

Public Information Officer

Kenneth.Gales@usdoj.gov

(414) 297-1700

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Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin, announced that on June 25, 2021, Darryl K. Green (age: 53) of Green Bay, Wisconsin was sentenced to 13 years in federal prison by Senior District Judge William C. Griesbach.

Between January 2020 and August 2020, Green recruited, enticed, and forced dozens of women toengage in acts of prostitution under the threat of physical force. Often compelling the victims to give asmuch as 100% of the proceeds to him. Green also manipulated his victims’ controlled substance addictions to keep them in the prostitution trade. He pled guilty earlier this year to a charge of “Conspiracy to Commit Sex Trafficking” contrary to Title 18, United States Code, Sections 1594(c), 1591(a)(1), and 1591(b)(1).

In handing down the sentence, Judge Griesbach noted the extremely serious nature of the charge, calling it an “astounding offense in many ways.” He further cited a strong need to protect the public and to deter Green and others from engaging in sex trafficking in the future. Following his release from prison, Green will spend 10 years on supervised release.

This case was investigated by the Green Bay Police Department and the Wisconsin Department of Justice, Division of Criminal Investigation, with the assistance of the Green Bay office of the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Erica J. Lounsberry and Daniel R. Humble.
                                                       

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Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that on June 22, 2021, Calvin C. Freeman, Jr., was convicted of sex trafficking and related offenses following a federal jury trial in Milwaukee. The crimes of which Freeman was convicted include:

 Conspiracy to Engage in Sex Trafficking
 Sex Trafficking by Force, Fraud, or Coercion (two counts)
 Interstate Transportation for Prostitution (three counts)
 Interstate Transportation of a Minor for Criminal Sexual Activity
 Possession of a Firearm/Ammunition by a Felon (two counts)
 Obstruction of Sex Trafficking Enforcement (two counts)
 Contempt of Court (three counts)

The evidence presented at trial established that Freeman used force, threats of force, fraud, and coercion to compel female victims to engage in commercial sex acts in cities across the country, including Milwaukee, Chicago, Las Vegas, New Orleans, and Miami, as well as in parts of
Southern California and Hawaii. One of the victims was a minor at the time Freeman transported her for this purpose. The victims testified that Freeman kept and controlled all of the money they made, whipping them with belts, threatening them with guns, and subjecting them to dehumanizing punishments, such as forcible sodomy and smearing human feces in one victim’s face when she failed to comply with his demands. The evidence also established that Freeman repeatedly urged victims and witnesses not to speak to federal agents or to comply with court orders, including while Freeman was in jail and subject to a no-contact order that had been entered by a federal judge.

Freeman is scheduled to be sentenced on October 4, 2021, by Chief United States District Court
Judge Pamela Pepper. Freeman faces a maximum life term of imprisonment and a mandatory minimum of 15 years of imprisonment.

The Federal Bureau of Investigation, the Milwaukee Police Department, and the Federal Deposit
Insurance Corporation – Office of Inspector General investigated the case with the assistance of the Las Vegas Metropolitan Police Department, the Philadelphia Police Department, and the
Wisconsin Department of Justice Division of Criminal Investigation. Assistant United States
Attorneys Erica J. Lounsberry and Julie F. Stewart prosecuted the case.

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For further information contact: Public Information Officer
Kenneth.Gales@usdoj.gov
(414) 297-1700
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Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on June 22, 2021, a federal grand jury indicted John E. Fredenburgh (age: 36) of Suring, Wisconsin, on two counts of traveling interstate with the intent to engage in a sexual act with a minor, in violation of
Title 18, United States Code, Section 2423(b), and an additional count of using a computer to attempt to persuade, induce, or entice a minor to engage in unlawful sexual activity, in violation of Title 18, United
States Code, Section 2422(b).

If convicted of the interstate travel charges, Fredenburgh faces up to 30 years’ imprisonment on each count. If convicted of the child enticement charge, he faces a mandatory 10 years’ imprisonment and up to a lifetime of imprisonment.

This case was investigated by the Oconto County Sheriff’s Office, the Marinette County Sheriff’s
Office, the Menominee, Michigan Sheriff’s Office, the Menominee (Michigan) Police Department, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Daniel R.
Humble.

An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.

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

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For further information contact: Public Information Officer Kenneth Gales
(414) 297-1700

Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on June 22, 2021, a federal grand jury returned an indictment against Daniel
Rodriguez-Lara (age: 24) of San Bernardino, California, and Richard Chavez (age: 41) of Los
Angeles, California. The two-count indictment charges both men for conspiring to distribute and attempting to possess with intent to distribute kilogram quantities of fentanyl and cocaine in violation of Title 21, United States Code, Sections 841(a)(1) and 846. If convicted, both men will face a mandatory minimum of ten years to a maximum of life in federal prison, at least five years of supervised release, and up to a $10 million fine.

According to court documents, on June 13, 2021, a Kansas Highway Patrol Trooper conducted a traffic stop of a semi-tractor that was towing a car carrier trailer in Seward County, Kansas. The trailer was carrying several vehicles, including a 2013 Nissan Cube. Beneath the floorboards of the Nissan Cube, the Trooper discovered electronically controlled compartments.
Inside the compartments, the Trooper found packages that contained a total of 16 kilograms of fentanyl and 14 kilograms of cocaine. The packages were being transported to Milwaukee, Wisconsin.

Court documents further reveal that law enforcement agents seized the actual fentanyl and cocaine, placed replica kilogram-shaped packages in the compartments, and arranged the transport and off-loading of the Nissan Cube to the delivery location in a parking lot in
Milwaukee. In the early morning of June 17, 2021, agents saw two subjects enter the Nissan
Cube and drive it away. When officers attempted to stop the Nissan Cube, the vehicle fled at a high rate of speed and eventually crashed in Bayside, Wisconsin. Both occupants fled on foot.
Later that same morning, officers located and arrested both Rodriguez-Lara and Chavez.

“Opioid overdose deaths in Milwaukee County have continued to increase in 2021 and have caused lasting damage to families and our communities,” stated Acting U.S. Attorney
Frohling. “What the overwhelming majority of these deaths have in common is fentanyl -- as little as two milligrams of which can be lethal depending on the user’s size and past history.
Based on the collaborative work of federal, state, and local law enforcement, 16 fewer kilograms of fentanyl and 14 fewer kilograms of cocaine will be available to potentially devastate families in this district. Along with our law enforcement partners, the Department of Justice is committed to holding those who traffic in these substances accountable for their actions.”

“As this case demonstrates, drug traffickers utilize a variety of concealment methods to bring their deadly goods to our communities,” said Drug Enforcement Administration (DEA), Milwaukee District Office Assistant Special Agent in Charge John McGarry. “Due to the close working relationship with our law enforcement partners, these drug traffickers were identified, stopped in their tracks, and will face justice in federal court. This significant fentanyl seizure surely saved lives.”

"The Milwaukee Police Department is a proud member of the North Central High
Intensity Drug Trafficking Area. Through this partnership, HIDTA recovered and removed a significant amount of very dangerous drugs from our community and the individuals arrested were indicted on very serious criminal charges. MPD is committed to working with our community, local, state and federal partners to continue to build sustainable neighborhoods free of crime,” said Acting Chief Jeffrey Norman.

This case was investigated by the North Central High Intensity Drug Trafficking Area
(HIDTA), the Drug Enforcement Administration (DEA), the Milwaukee Police Department, the
Kansas Highway Patrol, the Colorado State Patrol, the Wisconsin Department of Justice, Division of Criminal Investigation, the West Allis Police Department, the Mequon Police
Department, the Bayside Police Department, the Glendale Police Department, the Brown Deer
Police Department, the River Hills Police Department, and the Milwaukee County Sheriff’s
Office. It will be prosecuted by Assistant United States Attorney Mario F. Gonzales.

If you or someone you know is struggling with opioid addiction, recovery is possible.
For information on support and resources, please call 2-1-1 or visit recoverywisconsin.com.

An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove them guilty beyond a reasonable doubt.

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For further information contact: Public Information Officer
Kenneth.Gales@usdoj.gov
(414) 297-1700
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Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on June 11, 2021, Zachary C. Wood (age: 45) of Merrimac, Wisconsin, was sentenced to ten years in federal prison by Senior District Judge William C. Griesbach.

According to court documents, in September 2020, Wood utilized a popular online messaging application to distribute digital videos of explicit child pornography depicting infants and toddlers being abused. Wood also expressed a desire to engage in the sexual assault of children, and he made arrangements to travel to Oshkosh, Wisconsin, to meet with a 14-year-old child.

On October 12, 2020, Wood travelled from his home in Merrimac to Oshkosh at which point he was promptly arrested. Unbeknownst to Wood, he distributed child pornography and communicated his desire to sexually assault children with a member of law enforcement. 

Wood’s indictment and subsequent conviction were part of Operation Kick Boxer, a collaborative effort involving the Milwaukee Division of the Federal Bureau of Investigation (FBI), the U.S. Attorney's Office for the Eastern District of Wisconsin, and the Winnebago County Sheriff's Office. (https://go.usa.gov/xfPHh).   

In handing down the sentence, Judge Griesbach noted the serious nature of the charge, the need to protect the public, and the need to deter Wood and others from abusing or attempting to abuse children in the future.  Following his release from prison, Wood will spend five years on supervised release.  He will also have to register as a sexual offender.

This case was investigated by the Winnebago County Sheriff’s Office with the assistance of the Green Bay and Milwaukee offices of the Federal Bureau of Investigation.  It was prosecuted by Assistant United States Attorney Daniel R. Humble.

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

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For further information contact:

Public Information Officer

Kenneth.Gales@usdoj.gov

(414) 297-1700

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Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on June 8, 2021, Steven R. Brandenburg (age: 46) of Grafton, Wisconsin, was sentenced to 36 months’ imprisonment for tampering with COVID vaccine doses at the hospital at which he worked. Brandenburg will also be required to spend three years on supervised release following his prison sentence and was ordered to pay approximately $83,800 in restitution to the hospital.

Brandenburg pleaded guilty on February 9, 2021, to two counts of attempting to tamper with consumer products with reckless disregard for the risk that another person would be placed in danger of death or bodily injury. 

According to court documents, Brandenburg purposefully removed a box of COVID-19 vaccine vials manufactured by Moderna—which must be stored at specific cold temperatures to remain viable—from a hospital refrigeration unit during two successive overnight shifts in late December 2020. According to his plea agreement, Brandenburg stated that he was skeptical of vaccines in general and the Moderna vaccine specifically. Court documents indicate that Brandenburg had communicated his beliefs about vaccines to his co-workers for at least the past two years.

Brandenburg acknowledged that after leaving the vaccines out for several hours each night, he returned the vaccines to the refrigerator to be used in the hospital’s vaccine clinic the following day. Before the full extent of Brandenburg’s conduct was discovered, 57 people received doses of the vaccine from these vials.

“The purposeful attempt to spoil vaccine doses during a national public health emergency is a serious crime,” said Acting Assistant Attorney General Brian Boynton of the Department of Justice’s Civil Division. “The Department of Justice will continue working with its law enforcement partners to safeguard these life-saving vaccines.”

“Ensuring access to safe and effective COVID-19 vaccines is critical to the well-being of everyone in our communities,” said Acting U.S. Attorney Frohling. “The Department of Justice is committed to working with its federal, state, and local partners to hold individuals who seek to tamper with these vaccines fully accountable. Today’s sentence was the direct result of that shared commitment and the underlying hard work and collaborative efforts of all involved in the investigation and prosecution of Mr. Brandenburg.”

“The FBI, together with our local law enforcement and private sector partners, are committed to upholding laws designed to protect our health care system from harm. By illegally tampering with these doses, Brandenburg threatened the health and safety of an entire community,” said FBI Special Agent in Charge, Robert Hughes. “Today’s sentencing sends a clear message to individuals who intentionally violate these laws that they will be vigorously prosecuted.”

The FDA has ensured that the Moderna COVID-19 vaccine meets the agency’s rigorous standards for safety, effectiveness, and manufacturing quality. Those who knowingly tamper with this vaccine place American patients’ health at risk,” said FDA Assistant Commissioner for Criminal Investigations Catherine A. Hermsen. “Today’s announcement should serve as a reminder that this kind of illicit tampering activity will not be tolerated.”

This matter was investigated by the Food and Drug Administration’s Office of Criminal Investigations, the Milwaukee Field Office of the FBI, and the Village of Grafton Police Department.

Assistant U.S. Attorney Kevin C. Knight of the U.S. Attorney’s Office for the Eastern District of Wisconsin, and Senior Litigation Counsel Ross S. Goldstein and Trial Attorney Rachel Baron of the Department of Justice Civil Division’s Consumer Protection Branch prosecuted the case.

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For further information contact:

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Kenneth.Gales@usdoj.gov

(414) 297-1700

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Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin joined Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and other federal officials in announcing that on June 2, 2021, Thomas Smith (age 46) of Pewaukee, Wisconsin, was sentenced to 57 months’ imprisonment for fraudulently obtaining over $1 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Smith will also be required to spend two years on supervised release following his prison sentence and was ordered to pay $ 960,000 in restitution.

Smith pleaded guilty to this offense on February23, 2021. According to court documents, Smith fraudulently sought over $1.2 million in PPP loans through applications to a federally insured financial institution on behalf of eight different companies. According to his plea agreement, Smith caused fraudulent loan applications to be submitted that made numerous false and misleading statements about the companies’ respective payroll expenses. Based on these representations, the financial institution approved and funded over $1 million in loans. Smith then directed his co-conspirators to send him portions of the PPP funds within days of receiving them and used the proceeds for personal expenses, he admitted.

The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

The FBI, SBA-OIG, FDIC-OIG, and IRS-CI investigated the case.

Trial Attorneys Laura Connelly and Leslie S. Garthwaite of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Ingraham of the Eastern District of Wisconsin are prosecuting the case.

The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at:  https://www.justice.gov/criminal-fraud/ppp-fraud.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on June 2, 2021, a federal grand jury returned an indictment against Amber L. Bayer (age: 29) of Oconto Falls, Wisconsin.

The indictment alleges Bayer made a false statement to a licensed firearms dealer in violation of Title 18, United States Code, Sections 922(a)(6) and 924(a)(2). On or about December 4, 2020, Bayer is alleged to have misled a representative of Dunham’s Sports in Marinette, Wisconsin, by falsely claiming that she was purchasing a 9mm firearm for herself when, in fact, she was purchasing the firearm for another individual.

If convicted of the offense, Bayer faces a maximum penalty of up to ten years imprisonment and a $250,000 fine. 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Marinette Police Department, the Marinette County Sheriff’s Office, and the Menominee (Michigan) Police Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.

An indictment is only a charge and is not evidence of guilt.  The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.    

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A Wisconsin man was sentenced today to 57 months in prison for fraudulently obtaining over $1 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Thomas Smith, 46, of Pewaukee, pleaded guilty on Feb. 23. According to court documents and statements, Smith fraudulently sought over $1.2 million in PPP loans through applications to a federally insured financial institution on behalf of eight different companies. According to his plea agreement, Smith caused to be submitted fraudulent loan applications containing numerous false and misleading statements about the companies’ respective payroll expenses. Based on these representations, the financial institution approved and funded over $1 million in loans. Smith then directed his co-conspirators to send him portions of the PPP funds.

In addition to the prison sentence, Smith was ordered to pay $960,000 in restitution.

The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin; Special Agent in Charge Sharon Johnson of the SBA’s Office of Inspector General (SBA-OIG) Central Region; Special Agent in Charge Robert E. Hughes of the FBI’s Milwaukee Field Office; Acting Special Agent in Charge Fran L. Mace of the Federal Deposit Insurance Corporation – OIG (FDIC-OIG); and Executive Special Agent in Charge Kathy Enstrom of the IRS Criminal Investigation (IRS-CI) Chicago Field Office made the announcement.

The FBI, SBA-OIG, FDIC-OIG, and IRS-CI investigated the case.

Trial Attorneys Laura Connelly and Leslie S. Garthwaite of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Ingraham of the Eastern District of Wisconsin are prosecuting the case.

The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at:  https://www.justice.gov/criminal-fraud/ppp-fraud.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on May 20, 2021, Chief United States District Judge Pamela Pepper sentenced Donquell Franklin (age 30), of Milwaukee, Wisconsin, to 84 months in federal prison for an armed robbery of an undercover ATF Task Force Officer.  Judge Pepper ordered that his sentence run consecutive to his state revocation sentence.

On March 2, 2021, Franklin entered a guilty plea to robbery of personal property of the United States, in violation of Title 18, United States Code, Section 2112, and using and carrying a firearm in furtherance of the robbery, in violation of Title 18, United States Code, Section 924(c). 

According to the plea agreement, in 2017, ATF agents and task force officers were conducting an undercover investigation of illegal firearm sales.  On April 4, 2017, Franklin went into the vehicle of an undercover ATF task force officer and pointed a semi-automatic pistol at the officer.  When the officer pushed the gun away, Franklin ejected the magazine, re-inserted it, racked the slide, and pointed it at the officer again.  Franklin robbed the officer of ATF buy money, an ATF issued iPhone, and the keys to the vehicle.  Law enforcement officers quickly arrived at the scene, pursued Franklin by foot, and found him hiding in a garage in an alley on West McKinley Avenue in Milwaukee.  Officers recovered from Franklin’s flight path the firearm, the iPhone, and the keys to the undercover officer’s vehicle. 

The Milwaukee Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Milwaukee Police Department, and the Milwaukee County Sheriff’s Office investigated the case.  The case was prosecuted by Assistant U.S. Attorney Benjamin A. Wesson. 

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Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, joins Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region (HHS-OIG); and Karen Timberlake, Secretary-designee of the Wisconsin Department of Health Services, advise the public that they should not be asked to pay any costs to receive the COVID-19 vaccine and warn COVID-19 vaccination providers not to seek payment from individual COVID-19 vaccine recipients. 

COVID-19 vaccination providers participating in the U.S. Centers for Disease Control and Prevention (CDC) COVID-19 Vaccination Program are required to sign a provider agreement to receive and dispense vaccines.  Among the requirements in the agreement, providers must not sell or seek reimbursement for the COVID-19 vaccine or any related supplies and must administer the vaccine regardless of the recipient’s ability to pay.  While providers may seek appropriate reimbursement from a public benefit program or private insurance program or plan that covers COVID-19 vaccine administration fees, providers may not seek any reimbursement from the vaccine recipient. 

Providers may also seek reimbursement from the Health Resources and Services Administration’s (HRSA) COVID-19 Uninsured Program for the costs of administering COVID-19 vaccines to uninsured recipients, or from the HSRA Coverage Assistance Fund (CAF) for the costs of administering COVID-19 vaccines to recipients whose health insurance does not cover vaccine administration fees. 

Noncompliance with the terms of the CDC Provider Agreement, such as by billing vaccine recipients for the COVID-19 vaccine or its administration, including co-pays, or denying an individual a vaccination because they are unable to pay any out-of-pocket costs, may result in the provider’s suspension or termination from the CDC COVID-19 Vaccination Program and potential criminal and civil penalties.

“Providers cannot charge anyone to get the COVID-19 vaccine or deny anyone from getting the vaccine if they are uninsured or underinsured – adding unlawful charges creates barriers, especially for persons of limited means, and undermines public health and safety,” said Acting U.S. Attorney O’Shea.  “Non-compliance with the CDC Provider Agreement’s requirements may result in federal criminal or civil penalties, including but not limited to the False Claims Act.”

“Along with our federal, state, and local partners, the Department of Justice is committed to using all available tools to ensure that no one is charged for access to the COVID-19 vaccine,” said Acting U.S. Attorney Frohling.  

“Providers need to be on notice that the COVID-19 pandemic should not be exploited as a money-making opportunity by inappropriately charging beneficiaries for the administration of available vaccines,” said Lamont Pugh III, Special Agent in Charge, HHS-OIG – Chicago Region.  “The OIG and its law enforcement partners will continue to support the unprecedented COVID-19 public health effort by holding accountable people who attempt to inappropriately profit from the pandemic.”

“COVID-19 vaccines are safe, effective, and free for everyone 12 years old and up across our state,” said Secretary-designee Timberlake.  “We stand with our federal partners in our commitment to making sure everyone in Wisconsin can get vaccinated without worrying about what they may have to pay.”

If you know or suspect that any healthcare provider, healthcare facility, vaccination site, or pharmacy is improperly charging any costs for the COVID-19 vaccine, please report such conduct to the federal government at 1-800-MEDICARE (1-800-633-4227), www.Medicare.Gov/Medicarecomplaintform, or TTY/TTD users can call 1-877-486-2048.  Complaints may also be submitted to the State of Wisconsin at DHSCOVIDVaccinePublic@wi.gov or 844-684-1064. 

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Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on May 25, 2021, a federal grand jury returned a three-count indictment against Paul S. Osterman (age 35) of Rhinelander, Wisconsin, charging him with crimes related to soliciting a 13-year-old Illinois girl on the MeetMe social media electronic application for commercial sex.

Count One alleges that from July 3 through July 5, 2019, Osterman solicited the child for sex in exchange for money, in violation of Title 18, United States Code, Sections 1591(a)(1), (b)(1), and (c). Count Two alleges that during these same dates, Osterman used a facility and means of interstate commerce (MeetMe) to persuade, induce, and entice the child to engage in illegal sexual activity, in violation of Title 18, United States Code, Section 2422(b). Count Three alleges that during these same dates, Osterman traveled in interstate commerce (from Wisconsin to Illinois) for the purpose of engaging in commercial sex with the child, in violation of Title 18, United States Code, Section 2423(b).

Counts One and Two each carry a maximum penalty of life in prison, while Count Three carries a maximum penalty of 30 years in prison.   If convicted of Counts One and Two, Osterman would face a mandatory minimum sentence of 15 and 10  years respectively.  All of the charges in the indictment carry additional possible penalties of up to a life term of supervised release following any term of imprisonment, and up to a $250,000 fine. 

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

This case was investigated by the Federal Bureau of Investigation, Wisconsin Department of Justice’s Division of Criminal Investigation, and the Oneida County Sherriff’s Office.  The case is being prosecuted by Assistant United States Attorney Abbey M. Marzick.

The public is cautioned that an indictment is merely a formal charge that a defendant has committed one or more violations of federal law, and every defendant is presumed innocent unless, and until, proven guilty.

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Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on May 20, 2021, Edward E. Matthes (age 51), of Milwaukee, Wisconsin, was sentenced to 63 months in federal prison for carrying out a $2.6 million dollar investment scheme that defrauded 27 victims, most of whom were elderly. Matthes had earlier pleaded guilty to three counts of wire fraud, in violation of 18 U.S.C. § 1343.

The information presented at the sentencing hearing showed that Matthes was a prominent member of the Oconomowoc community who solicited family, friends, and community members to use his services as an independent broker-dealer for Mutual of Omaha Investor Services, Inc. (“Mutual of Omaha”).  Matthes previously worked in the same capacity for Thrivent in St. Louis, Missouri, and Pewaukee, Wisconsin.  According to court records, over the course of six years, Matthes persuaded his clients, which included his own parents and a cognitively disabled individual, to invest in fictitious Mutual of Omaha accounts which he claimed would perform better for them. Instead, Matthes diverted over $2.6 million into his personal accounts to enrich himself.  During his scheme, Matthes lulled his clients into believing their investments were performing well by manufacturing fake quarterly earnings statements for the non-existent accounts.

Several victims filed impact statements with the court prior to the sentencing.  Two victims made in-person remarks during the sentencing hearing, explaining how Matthes betrayed their trust, causing them significant financial and emotional harm.  Additionally, a representative of Mutual of Omaha spoke during the hearing and explained how Matthes’ actions caused the company to expend considerable resources to investigate the matter and to reimburse most of the victims for their losses.

In pronouncing sentence, United States District Court Judge Brett H. Ludwig described the defendant’s conduct as “aggravated,” noting how he “cultivated trust” and maintained a “veneer of friendship” with the victims while simultaneously robbing them of their retirement savings.  He commented that the protracted nature of the offense conduct, the magnitude of loss, and Matthes’ betrayal of trust, required a sentence that both punished and deterred. 

“Matthes betrayed the trust of family, friends, and others who simply were trying to invest their hard-earned savings to provide financial security for themselves in retirement.  The Department of Justice is committed to working with our law enforcement partners to seek justice on behalf of victims of financial fraud,” said Acting U.S. Attorney Frohling. 

“This fraudster took advantage of some of our most vulnerable citizens,” said FBI Special Agent in Charge Robert Hughes. “Most of his victims were elderly, and he spent years gaining their trust, only to wipe out a lifetime of their savings.  I commend the tireless efforts of our special agents and law enforcement partners who worked jointly to bring this case to justice.”

Jeffrey Monhart, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration (“EBSA”) commented, “EBSA will continue to work aggressively with our law enforcement partners to stop the financial harm caused by these types of schemes.” 

This case was jointly investigated by the Federal Bureau of Investigation, the U.S. Department of Labor, Employee Benefits Security Administration, and the Oconomowoc Police Department.  The investigation was aided by representatives of Mutual of Omaha and the United States Securities and Exchange Commission.  Assistant United States Attorney Kelly B. Watzka prosecuted the case.  

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Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on May 20, 2021, Darrin S. McElhatton (age: 41) of Appleton, Wisconsin, was sentenced to 180 months in federal prison by Senior United States District Judge William C. Griesbach.

According to court records, McElhatton received and possessed numerous digital images and videos of child pornography. A routine security check at a Grand Chute motel led to the discovery of child pornography on McElhatton’s cell phone. He was previously convicted in Wisconsin state courts for similar crimes involving child pornography. 

In imposing sentence, Judge Griesbach noted the serious nature of the charge, McElhatton’s aggravated criminal record, and the need for just punishment. Following his release from prison, McElhatton will spend the remainder of his life on supervised release.  He also will be required to register as a sexual offender.

This case was investigated by the Grand Chute Police Department and the Wisconsin Department of Community Corrections. It was prosecuted by Assistant United States Attorney Daniel R. Humble.

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

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Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on May 18, 2021, a federal grand jury handed down an indictment alleging that Joshua A. Gama (age: 35) of Bridgeton, Missouri, distributed child pornography in violation of Title 18, United States Code, Section 2252A(a)(2)(A).

Later that morning, the same grand jury handed down a separate indictment alleging that David J. Dexter (age: 43) of Lebanon, Tennessee, also distributed child pornography in violation of federal law.

Gama is charged with two counts of distributing child pornography. Dexter is charged with a single count of distribution. Each count carries a mandatory minimum sentence of five years and up to 20 years of incarceration in federal prison upon conviction.

Each man’s indictment is a direct result of Operation Kick Boxer, a collaborative effort involving the Milwaukee Division of the Federal Bureau of Investigation (FBI), the U.S. Attorney's Office for the Eastern District of Wisconsin, and the Winnebago County Sheriff's Office https://go.usa.gov/xHzJp.

Both Gama and Dexter utilized a popular internet messaging platform to access chat rooms in which they each are alleged to have distributed child pornography. Each man was investigated separately and there is no known connection between the two. 

These cases were investigated by the Federal Bureau of Investigation’s Milwaukee, Green Bay, Memphis, Nashville, and St. Louis Offices, as well as the Winnebago County Sheriff’s Office.  They will be prosecuted by Assistant United States Attorney Daniel R. Humble.

An indictment is only a charge and is not evidence of guilt.  Each defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.   

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Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on May 6, 2021, Austin A. Kaquatosh (age: 28), formerly of Neopit on the Menominee Indian Reservation, was sentenced to a total of 24 months in federal prison for burglary and being a felon in possession of firearms. 

According to a written plea agreement filed in the case, Kaquatosh, a previously convicted felon, stole electronics and four firearms from a relative’s home on the Menominee Indian Reservation.  

At sentencing, Senior United States District Court Judge William Griesbach noted that because Kaquatosh’s “opportunistic” offense was “traumatic” and “disruptive” to the victims, his sentence needed to send a message to the defendant, as well as others who might consider similar conduct, that such behavior was unacceptable.  After serving his 24-month prison sentence, Kaquatosh also must spend three years on supervised release.

This case was investigated by the Menominee Tribal Police, and the Green Bay office of the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Andrew J. Maier.

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In honor of National Police Week, Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin joins Attorney General Merrick B. Garland in recognizing the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.

“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said Attorney General Garland. “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”

“Every day, members of law enforcement work tirelessly to protect our communities,” stated Acting U.S. Attorney Frohling. “Their task is difficult, dangerous, and too often thankless.  My colleagues at the U.S. Attorney’s Office and I are grateful every day for the sacrifices of these brave and dedicated men and women, and we honor and remember those who have endured injury or lost their lives while seeking to keep all of us safe.”

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

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

During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored.  Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19.  In Wisconsin, this included Dane County Sheriff’s Deputy Richard Treadwell, who died in August 2020 from complications due to COVID-19.

Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020.  LEOKA statistics can be found on FBI’s Crime Data Explorer website.

The names of the 394 fallen officers who have been added in 2020 to the wall at the National Law Enforcement Officer Memorial will be read on Thursday, May 13, 2021, during a Virtual Candlelight Vigil, which will be livestreamed to the public at 8:00 pm EDT. The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to October 13-17, 2021. An in-person Candlelight Vigil event is scheduled for October 14, 2021.

Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/user/TheNLEOMF. The FOP’s Roll Call of Heroes can be viewed at www.fop.net. To view the schedule of virtual Police Week events in May, please view NLEOMF’s Police Week Flyer.   

To learn more about National Police Week in-person events scheduled for October, please visit www.policeweek.org.

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Acting United States Attorney Richard G. Frohling announced that on April 27, 2021, a federal grand jury in the Eastern District of Wisconsin indicted Radomir Buzdum (61), formerly of Watertown, Wisconsin, and Timothy J. Miller (49), of Watertown, for offenses related to the operation of the TNT / Wild Rose strip club, which had been located in Lebanon (Dodge County), Wisconsin.

The indictment contains three counts.  Count One alleges that between July 2012 and January 2019, Buzdum (the owner of the club) and Miller (a former manager) conspired with each other and others to use facilities in interstate commerce to promote, manage, and carry on unlawful prostitution offenses, in violation of Title 18, United States Code, Sections 371 & 1952(a)(3).  According to the indictment, the purpose of the conspiracy was to generate revenue by making areas of the club for unlawful prostitution activity, including oral sex, full intercourse, and fetish activities.  The indictment further alleges that members of the conspiracy hired and employed dancers willing to perform sex acts, including women they knew were working for pimps, and allowed customers to use credit cards to pay for private rooms and to obtain cash back to pay dancers directly for sex acts.  

Counts Two and Three allege that Buzdum made and subscribed materially false tax returns for Tequila Nights, Inc. (TNI) for tax years 2015 and 2016.  According to the indictment, Buzdum was the sole shareholder of TNI, through which he operated both TNT and the Dew Drop Inn, a tavern located in Watertown.  The indictment alleges that for each year, Buzdum willfully underreported gross receipts and business income from his strip club and his tavern.

If convicted of Count One, Buzdum and Miller each would face up to five years in prison.  If convicted of Count Two or Count Three, Buzdum would face up to three years in prison per count of conviction.  All three counts also carry a maximum fine of $250,000 and a maximum term of three years of supervised release following any prison sentence.

This case was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, Dodge County Sheriff’s Office, Racine Police Department, United States Department of Labor – Office of Inspector General, Hartford Police Department, and Federal Deposition Insurance Corporation – Office of Inspector General, with the assistance of the Wisconsin Department of Justice –Division of Criminal Investigation, Watertown Police Department, Milwaukee Police Department and United States Department of Homeland Security – Homeland Security Investigations.

The case is being prosecuted by Assistant United States Attorney Erica J. Lounsberry and Acting U.S. Attorney Richard G. Frohling.  

The public is cautioned that an indictment is merely a formal charge that a defendant has committed one or more violations of federal law, and every defendant is presumed innocent unless, and until, proven guilty.

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Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on April 21, 2021, a jury seated in the federal district court in Green Bay, found Lonel L. Johnson, Jr., (age: 44) guilty of possession with intent to distribute 50 grams or more of methamphetamine, two counts of possession of a firearm by a felon, and possession of a firearm in furtherance of a drug trafficking crime. 

The evidence presented at trial proved that on April 3, 2020, after a standoff that lasted over an hour, investigators from the Brown County Drug Task Force seized a half pound of methamphetamine and a .22 caliber rifle from Johnson’s residence.  Prior to the search warrant, Johnson posted a video on Facebook Live in which he was pointing a .45 caliber handgun at the camera.  Johnson, a convicted felon, was prohibited from possessing firearms. 

Johnson will be sentenced before Senior U.S. District Judge William C. Griesbach on July 26, 2021.  Johnson faces a mandatory ten year prison term and a maximum of life imprisonment. 

The Brown County Drug Task Force investigated the case, with assistance from the Brown County Sheriff’s Office SWAT Team.  Assistant United States Attorneys Alexander Duros and William Roach prosecuted the case.

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Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on April 13, 2021, a federal grand jury returned an indictment against Christian B.M. Crawford (age: 28) of Winnebago County, Wisconsin, charging him with arson of a building in violation of Title 18, United States Code, Section 844(i).

The indictment alleges that on January 22, 2021. Crawford maliciously damaged the Ridgeway VP gas station in Neenah, Wisconsin, by fire.  If convicted of the charge, Crawford faces a mandatory minimum five-year prison term and a maximum of 20 years of imprisonment.  He also faces a fine of up to $250,000.

This case was investigated by the Winnebago County Sheriff’s Office, the City of Neenah Police Department, the Town of Menasha Police Department, the Town of Fox Crossing Police Department, and the Town of Clayton Fire Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.

An indictment is only a charge and is not evidence of guilt.  The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.    

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Acting U.S. Attorney for the Eastern District of Wisconsin Richard G. Frohling announced that on April 13, 2021, a federal grand jury returned an indictment charging Paul R. Vanderlinden (age: 42) of Appleton, Wisconsin, with violating federal tax laws.

The indictment alleges that Vanderlinden, as owner and operator of Muncheez Pizzeria in Appleton, skimmed approximately $800,000 from his business’s receipts between 2012 and 2016. According to the indictment, most of these receipts were deposited into Vanderlinden’s personal bank account, and Vanderlinden failed to report or pay taxes on this income. He is charged with four counts of filing false individual tax returns for calendar years 2012 through 2015.

The indictment further alleges that Vanderlinden used a large portion of these receipts to pay cash wages to his employees. Federal law requires employers to collect payroll taxes, and Vanderlinden is charged with failing to withhold and pay over the payroll taxes associated with these cash wages from the first quarter of 2014 through the fourth quarter of 2016.

Acting U.S. Attorney Frohling stated “As we approach the tax filing deadline, those who would seek to defraud the United States and cheat their hard-working fellow taxpayers should think twice.  The Department of Justice and IRS-CI are fully committed to holding those who file false returns or seek to cheat on their taxes fully accountable for their criminal conduct.” 

"Fulfilling individual and employee tax obligations is a legal requirement and those who willfully evade that responsibility will be prosecuted," said IRS Criminal Investigation Acting Special Agent in Charge Tamera Cantu, Chicago Field Office. “Employers have a responsibility to their employees to withhold the proper amount of taxes and pay those taxes over to the IRS. When employers fail to do so, it affects revenue to the United States government, but more importantly, it affects their employees Medicare and Social Security benefits.”

This investigation was undertaken by Special Agents from the Internal Revenue Service’s Criminal Investigation. It will be prosecuted by Assistant U.S. Attorney Farris Martini.

An indictment is only a charging document and is not evidence of guilt.  The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.

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For further information contact:

Public Information Officer Kenneth Gales

Kenneth.Gales@usdoj.gov, (414) 297-1700

 

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Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin joined Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and other federal officials in announcing that on April 12, 2021, a Wisconsin man pleaded guilty for his role in fraudulently obtaining over $600,000 in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

According to court documents, Stephen Smith, 42, of Milwaukee, admitted that he fraudulently sought over $600,000 in PPP loans through applications to an insured financial institution on behalf of three different companies. According to his plea agreement, Smith caused fraudulent loan applications to be submitted that made numerous false and misleading statements about the companies’ respective payroll expenses. Smith then directed his co-conspirators to send him portions of the PPP funds within days of receiving them and used the proceeds for personal expenses.

Smith pleaded guilty to bank fraud. He is scheduled to be sentenced on Wednesday, July 14, 2021 and faces a maximum penalty of 30 years in prison. United States District Judge Brett Ludwig will determine Smith’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The SBA-OIG, FBI, FDIC-OIG, and IRS-CI are investigating the case.

Trial Attorneys Laura Connelly and Leslie S. Garthwaite of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Ingraham of the Eastern District of Wisconsin are prosecuting the case.

The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at:  https://www.justice.gov/criminal-fraud/ppp-fraud

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

###

For further information contact:

Public Information Officer Kenneth Gales

Kenneth.Gales@usdoj.gov, (414) 297-1700

 

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A Wisconsin man pleaded guilty today for his role in fraudulently obtaining over $600,000 in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

According to court documents, Stephen Smith, 42, of Milwaukee, admitted that he fraudulently sought, on behalf of three different companies, over $600,000 in PPP loans through applications to an insured financial institution. According to his plea agreement, Smith caused fraudulent loan applications to be submitted that made numerous false and misleading statements about the companies’ respective payroll expenses. Smith then directed his co-conspirators to send him portions of the PPP funds within days of receiving them and used the proceeds for personal expenses.

Smith pleaded guilty to bank fraud. He is scheduled to be sentenced on July 14, and faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin; Special Agent in Charge Sharon Johnson of the Small Business Administration’s Office of Inspector General (SBA-OIG) Central Region; Special Agent in Charge Robert E. Hughes of the FBI’s Milwaukee Field Office; Special Agent in Charge John Crawford of the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG); and Acting Special Agent in Charge Tamera D. Cantu of the IRS Criminal Investigation (IRS-CI) Chicago Field Office made the announcement.

The SBA-OIG, FBI, FDIC-OIG, and IRS-CI are investigating the case. 

Trial Attorneys Laura Connelly and Leslie S. Garthwaite of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Ingraham of the Eastern District of Wisconsin are prosecuting the case.

The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

The Fraud Section leads the Justice Department's prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP and EIDL funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department's National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin, announced that on April 6, 2020, a federal grand jury returned a three-count indictment charging a man and his mother for their alleged roles in a shooting on the Menominee Indian Reservation. The indictment named Menom L. Powless-Brown (age: 19) and Mary K. Powless (age: 42), both of Keshena, which is on the Menominee Indian Reservation.

The indictment charged Powless-Brown as follows:

Charge

Statute Section(s)

Maximum Sentence

Assault with a Dangerous Weapon

18 U.S.C. §§ 113(a)(3) and 1153(a)

Up to ten years in prison

Discharging a Firearm During and in Relation to a Crime of Violence

18 U.S.C. § 924(c)(1)(A)

Mandatory minimum ten years, consecutive to other sentences, and up to life in prison

Assault with Intent to Murder

18 U.S.C. §§ 113(a)(1) and 1153(a)

Up to 20 years in prison

Mary Powless was charged with Aiding and Abetting Assault with a Dangerous Weapon, in violation of 18 U.S.C. §§ 113(a)(3), 1153(a), and 2(a).  She faces a maximum of ten years in prison.

Both defendants also face terms of supervised release and fines if convicted.

According to filed court documents, on or about March 13, 2021, Powless-Brown assaulted another man by pointing a 9mm semiautomatic handgun at him, which he then discharged several times.  Two individuals were struck with bullets, at least one of whom  sustained significant injuries as the result of the shooting.

The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case, which Assistant United States Attorney Andrew J. Maier will prosecute.

An indictment is only a charge and not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove their guilt beyond a reasonable doubt.

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For further information contact: Public Information Officer Kenneth Gales

Kenneth.Gales@usdoj.gov

414-297-1700

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Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on March 29, 2021, Evan C. Pasicznyk (age:36), previously of Eau Claire, Wisconsin, and currently residing in Burnsville, Minnesota, was sentenced to 60 months in federal prison by Senior District Judge William C. Griesbach.

Pasicznyk possessed and distributed numerous digital images and videos of child pornography. Pasicznyk’s indictment and subsequent conviction were part of Operation Kick Boxer, a collaborative effort involving the Milwaukee Division of the Federal Bureau of Investigation (FBI), the U.S. Attorney's Office for the Eastern District of Wisconsin, and the Winnebago County Sheriff's Office. (https://go.usa.gov/xfPHh).   

In handing down the sentence, Judge Griesbach noted the serious nature of the charge, the debilitating effect this crime has on its victims, and the need for deterrence and just punishment. Following his release from prison, Pasicznyk will spend five years on supervised release.  He will also be required to register as a sexual offender.

This case was investigated by the Federal Bureau of Investigation’s Milwaukee, Green Bay, and Eau Claire Offices, as well as the Winnebago County Sheriffs’ Office.  It was prosecuted by Assistant United States Attorney Daniel R. Humble.

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

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For further information contact:

Public Information Officer Kenneth Gales                                                               

Kenneth.Gales@usdoj.gov

414-297-1700

Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on March 22, 2021, Timothy J. Tetzlaff (age: 59) of the Town of Mishicot, Wisconsin, pled guilty to one count of interstate travel with the intent to engage a minor in criminal sexual activity, and another count of production of child pornography. 

According to the plea agreement, Tetzlaff will receive a sentence of at least 15 years’ imprisonment and up to a life sentence when he is sentenced before Senior U.S. District Judge William C. Griesbach on June 28, 2021.

This case was investigated by the Manitowoc County Sheriff’s Office, the Manitowoc County District Attorney’s Office, and the Green Bay office of the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Daniel R. Humble.

The Victim Services division of the U.S. Attorney’s Office may be reached at (800) 680-8949 for further information and support.

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

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For further information contact: Public Information Officer Kenneth Gales

Kenneth.Gales@usdoj.gov

414-297-1700

Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on March 22, 2021, Dale L. Bauwens (age: 35), previously of Lake Havasu City, Arizona, was sentenced to 60 months in federal prison by Senior District Judge William C. Griesbach.

Bauwens possessed and distributed numerous digital images and videos of child pornography. Bauwen’s indictment and subsequent conviction were part of Operation Kick Boxer, a collaborative effort involving the Milwaukee Division of the Federal Bureau of Investigation (FBI), the U.S. Attorney's Office for the Eastern District of Wisconsin, and the Winnebago County Sheriff's Office. (https://go.usa.gov/xfPHh).   

In handing down the sentence, Judge Griesbach noted the serious nature of the charge and the need for just punishment. Following his release from prison, Bauwens will spend five years on supervised release.  He will also be required to register as a sexual offender.

This case was investigated by the Federal Bureau of Investigation’s Milwaukee, Green Bay, and Phoenix Offices, as well as the Winnebago County Sheriffs’ Office.  It was prosecuted by Assistant United States Attorney Daniel R. Humble.

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

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For further information contact: Public Information Officer Kenneth Gales

Kenneth.gales@usdoj.gov

414-297-1700

Acting United States Attorney Richard G. Frohling announced today that on March 18, 2021, Susan Moyer (58), of Milwaukee, the former co-owner and office manager of the “Compassionate Care Clinic” in Milwaukee, was sentenced to one year and one day in federal prison for her role in distribution of Oxycodone.

According to court records, Moyer and her codefendant, Steven Kotsonis, M.D., operated the Compassionate Care Clinic as a “pill mill,” issuing baseless prescriptions for high doses of Oxycodone and other opioids in exchange for cash.  According to court filings, Moyer was not a licensed health professional and had no medical training.  Despite this, she typically would write out prescriptions, which Kotsonis would sign without actually seeing the individual patient or doing any examination.  During an office visit to the Compassionate Care Clinic during the course of the investigation, Moyer was recorded referring to herself as the “Oxy Czar.”  According to court filings, at least two patients of the Compassionate Care Clinic overdosed on Oxycodone and died.

Moyer and Kotsonis each pled guilty to felony offenses.  In July 2020, Kotsonis also was sentenced to a year and a day in prison.

Acting United States Attorney Frohling stated: “The Department of Justice is committed to using all available tools to stop those involved in fueling the opioid crisis.  I commended the hard work and dedication of the investigators, agents, analysts, and attorneys involved in seeking to bring justice to the individuals harmed by the actions of Ms. Moyer and Mr. Kotsonis.”

“The Drug Enforcement Administration (DEA) is committed to identifying and investigating those individuals who use their positions of trust to become drug dealers for personal profit,” said DEA Wisconsin Assistant Special Agent in Charge John McGarry. “This investigation is an example of our resolve to hold those individuals accountable for their actions.” 

This case was investigated by the DEA.  The case was prosecuted by Assistant United States Attorney Laura S. Kwaterski.

Information and resources concerning the opioid crisis and the DEA’s “360 Strategy” for addressing the crisis may be found at the DEA’s website, www.dea.gov

# #  #

For further information contact:

Public Information Officer Kenneth Gales

Kenneth.Gales@usdoj.gov

414-297-1700

 

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Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that earlier today an 11-count  indictment was unsealed in federal court charging Robert Narvett (age: 56) of Appleton, Wisconsin, with: (1) four counts of wire fraud, in violation of 18 U.S.C. § 1343; (2) one count of bank fraud, in violation of 18 U.S.C. § 1344; (3) one count of aggravated identity theft, in violation of  18 U.S.C. § 1028A; and (4) five counts of money laundering, in violation of 18 U.S.C. § 1956. 

According to the indictment, beginning on or about January 1, 2014, Narvett defrauded victims by promising them he could invest their money and return it with significant interest and dividends when, in fact, Narvett was using his victims’ money to fund his own lifestyle and to make lulling payments to other victims.  The indictment also alleges that Narvett applied for, and obtained, loans from financial institutions in his victims’ names without their authorization.  The indictment alleges that between 2014 and 2019, Narvett fraudulently obtained over $1.5 million from his victims.

According to public records, in 2013, Narvett was charged by the Securities and Exchange Commission with engaging in a fraudulent investment scheme. A judgment in the amount of $654,583.92 was entered against Narvett in October 2014.

Acting U.S. Attorney Frohling stated:  “Prosecuting financial crimes remains a top priority for the Department of Justice.  This indictment was the result of tireless and thorough investigative work – all with the aim of seeking justice for the victims of Mr. Narvett’s latest alleged scheme.” 

FBI Special Agent in Charge Robert Hughes stated:  “I applaud the great work of our team.  This offender can longer use his investment scheme to prey on innocent victims for his own personal gain.  With our partners, the FBI will continue to use all available resources to investigate and bring those to justice who take advantage of consumers.”

If convicted of wire fraud or money laundering, Narvett would face a maximum sentence of twenty years in prison per count.  If convicted of bank fraud, he would face a maximum sentence of thirty years in prison.  If convicted of aggravated identity theft, Narvett would face a mandatory minimum sentence of two years in prison.

The Federal Bureau of Investigation investigated the case, which Assistant United States Attorneys Julie F. Stewart and Daniel Humble will prosecute. The Commodities Futures Trading Commission assisted in the investigation.

An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

###

For further information contact: Public Information Officer Kenneth Gales

Kenneth.Gales@usdoj.gov, (414) 297-1700

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Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin joined Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and other federal officials in announcing that on February 23, 2021, Thomas Smith (age: 46) of Pewaukee, Wisconsin, pleaded guilty to one count of bank fraud for his role in fraudulently obtaining over $1 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The announcement of the plea was made jointly with Special Agent in Charge Sharon Johnson of the Small Business Administration’s Office of Inspector General (SBA-OIG); Special Agent in Charge Robert Hughes of the FBI’s Milwaukee Field Office; Special Agent in Charge John Crawford of the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG); and Acting Special Agent in Charge Tamera D. Cantu of the IRS Criminal Investigation (CI) Milwaukee Field Office.

As part of his guilty plea, Smith admitted that he fraudulently sought over $1.2 million in PPP loans through applications to an insured financial institution on behalf of eight different companies. According to his plea agreement, Smith caused fraudulent loan applications to be submitted that made numerous false and misleading statements about the companies’ respective payroll expenses. Based on these representations, the financial institution approved and funded over $1 million in loans. According to plea documents, Smith then directed his co-conspirators to send him portions of the PPP funds within days of receiving them and used the proceeds for personal expenses.

United States District Judge Brett Ludwig scheduled Smith’s sentencing for June 2, 2021.

The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

This case was investigated by the SBA-OIG, FBI, FDIC-OIG, and IRS-CI. Trial Attorneys Laura Connelly and Leslie S. Garthwaite of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Ingraham of the Eastern District of Wisconsin are prosecuting the case.

The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at:  https://www.justice.gov/criminal-fraud/ppp-fraud.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

###

For further information contact: Public Information Officer Kenneth Gales

Kenneth.Gales@usdoj.gov, (414) 297-1700

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A Wisconsin man pleaded guilty today for his role in fraudulently obtaining over $1 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin, Special Agent in Charge Sharon Johnson of the Small Business Administration’s Office of Inspector General (SBA-OIG) Central Region, Special Agent in Charge Robert E. Hughes of the FBI’s Milwaukee Field Office, Special Agent in Charge John Crawford of the Federal Deposit Insurance Corporation OIG (FDIC-OIG), and Acting Special Agent in Charge Tamera D. Cantu of the IRS Criminal Investigation (IRS-CI) Chicago Field Office made the announcement.

Thomas Smith, 46, of Pewaukee, pleaded guilty today to one count of bank fraud and is scheduled to be sentenced June 2.

As part of his guilty plea, Smith admitted that he fraudulently sought over $1.2 million in PPP loans through applications to an insured financial institution on behalf of eight different companies. According to his plea agreement, Smith caused fraudulent loan applications to be submitted that made numerous false and misleading statements about the companies’ respective payroll expenses. Based on these representations, the financial institution approved and funded over $1 million in loans. Smith then directed his co-conspirators to send him portions of the PPP funds within days of receiving them and used the proceeds for personal expenses, he admitted.

The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

This case was investigated by the SBA-OIG, FBI, FDIC-OIG, and IRS-CI. Trial Attorneys Laura Connelly and Leslie S. Garthwaite of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Ingraham of the Eastern District of Wisconsin are prosecuting the case.

The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at:  https://www.justice.gov/criminal-fraud/ppp-fraud.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on February 16, 2021, Jesse K. Bell (age: 32) of Neenah, Wisconsin, was sentenced to 38 months’ imprisonment for possession of child pornography.

In May of 2020, Bell was found with pornographic images of children under 12 years old on his cellular telephone. Bell subsequently pled guilty to one count of possession of child pornography, contrary to Title 18, United States Code, Section 2252A(5)(b).

In pronouncing sentence, Senior U.S. District Judge William C. Griesbach noted the serious nature of Bell’s crime, which victimized children. Judge Griesbach further highlighted the disturbing nature of the images, the need to deter Bell and others from engaging in similar behavior, and Bell’s previous criminal record. Following his release from prison, Bell will serve ten years on supervised release and will be required to register as a sexual offender under federal and state law.

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

This case was investigated by the Neenah Police Department with the assistance of the Federal Bureau of Investigation and the Brown County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.

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For further information contact: Public Information Officer Kenneth Gales

Kenneth.Gales@usdoj.gov, (414) 297-1700

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United States Attorney Matthew D. Krueger announced that he will resign from his position as the chief law enforcement officer for the Eastern District of Wisconsin on February 20, 2021.  After his departure, Krueger plans to join a private law firm.  Richard G. Frohling, who has served as the First Assistant U.S. Attorney during Krueger’s tenure, will become the Acting U.S. Attorney. 

"Serving as United States Attorney has been the greatest privilege of my professional life,” said U.S. Attorney Krueger.  “In the past three years, we faced unprecedented challenges, including the longest government shutdown in history, a global pandemic, and turbulent civil unrest.  The dedicated professionals in the U.S. Attorney’s Office, together with our selfless federal, tribal, state, and law enforcement partners, met each challenge with grit, integrity, and an unwavering commitment to justice.  I could not be more grateful or proud to have worked alongside such talented and committed public servants.” 

The Eastern District of Wisconsin comprises 28 counties with a population of approximately 3.3 million people.  The United States Attorney’s Office (“the Office”), with locations in Milwaukee and Green Bay, has over 80 employees, including attorneys and support staff.  The Office and is responsible for conducting all criminal and civil litigation in the district involving the United States government. 

“U.S. Attorney Krueger has been a true partner in our joint law enforcement mission of keeping the citizens of Wisconsin safe,” said FBI Special Agent in Charge Robert Hughes.  “We wish him the best of luck in all of his future endeavors.”

“United States Attorney Krueger has always represented the citizens of the Eastern District of Wisconsin with poise and professionalism,” complimented ATF Special Agent in Charge Kristen de Tineo of the Chicago Field Division.  “His dedication to ensuring the safety of the communities he served was always his first priority, and I wish him continued success in his future endeavors.”

“Matt Krueger has honorably served as United States Attorney for the Eastern District of Wisconsin, tirelessly working to protect communities from the effects of drug trafficking and drug-related violence,” said Robert J. Bell, Special Agent in Charge of the Drug Enforcement Administration, Chicago Division.  “His office effectively prosecuted violent drug trafficking crimes, while ensuring equity in all matters and fairness to all people.  Matt’s steadfast leadership and partnership will be missed.”

“On behalf of the United States Marshals Service, I would like to express our sincere gratitude to U.S. Attorney Matthew Krueger,” said United States Marshal Anna Ruzinski.  “Matt placed himself at the forefront of the fight against violent crime in the City of Milwaukee and throughout the Eastern District of Wisconsin.”

“As soon as Matt Krueger took office, he began tremendous efforts to build and nurture the relationships our Wisconsin law enforcement community now enjoys with the U.S. Attorney’s Office,” said Brian O’Keefe, Administrator, Wisconsin Department of Justice, Division of Criminal Investigation.  “I can honestly say I have never seen a stronger partnership between law enforcement in our state and the U.S. Attorney’s Offices than we have seen in the last three years, in both the Eastern and Western Districts.”

Under Krueger’s leadership, the U.S. Attorney’s Office brought numerous impactful prosecutions, recovered over $85 million dollars in criminal and civil cases, and defended the federal government’s interests vigorously in litigation.  The Office hired dozens of new staff, increased diversity within the Office, and added prosecutors in Green Bay to better serve the district’s northern counties.  In multiple areas, the Office had significant achievements:

National Security & Cyber Crime.  Under U.S. Attorney Krueger’s leadership, the Office pursued DOJ’s top priority of national security.  The Office obtained the first international terrorism convictions in the district’s history (U.S. v. Jason Ludke et al.; U.S. v. Waheba Dais). The Office confronted the growing threat of cyber crime, successfully prosecuting individuals such as Marcus Hutchins, who created banking malware that affected victims worldwide.  The Office also secured the conviction of Resit Tavin, a Turkish businessman, for smuggling Wisconsin-made marine products to Iran for use in the Iranian navy.  Building on DOJ’s China Initiative, Krueger worked with the FBI to initiate outreach to businesses at risk of economic espionage. 

Public Corruption.  The Office brought important cases to protect government integrity under U.S. Attorney Krueger’s tenure.  These included convictions of a corporation and six individuals—including an accountant whose trial Krueger handled personally-- for a wide-ranging scheme to illegally obtain over $260 million in federal contracts that were set aside for minority-owned and disabled veteran-owned small businesses (U.S. v. Ganos).  The Office also successfully prosecuted Nicole Doxator, a Milwaukee County employee, for diverting public funds; Willie Wade, a former Milwaukee alderman, for a fraud scheme in which he purported to sell access to a current alderman; and John LaFave, the Milwaukee County Register of Deeds for a scheme to subvert the County’s procurement rules. 

Healthcare Fraud.  Given the $1.2 trillion in annual federal healthcare spending, U.S. Attorney Krueger prioritized healthcare fraud enforcement.  He created a dedicated team of prosecutors to pursue healthcare fraud using civil and criminal enforcement tools.  The Office also improved its use of data analytics to identify indicia of fraud.  As a result, the Office increased its healthcare fraud cases, including a settlement with Aurora Health Care, Inc. for improper payments to physicians, a settlement with Walgreens Co. for improper prescription drug claims, and multiple cases of illegal kickback schemes (U.S. v. Center for Pain Management, S.C.; U.S. v. Advanced Pain Management; U.S. v. David Guerrero). 

Financial Fraud.  The Office also successfully prosecuted a range of fraud that victimized the private sector, including a $9 million “green energy” investment scheme (U.S. v. Ronald Van Den Heuvel), and a $30 million scheme involving financing of luxury vehicles (U.S. v. Albert Golant).  The Office placed particular emphasis crimes that targeted vulnerable victims such the elderly (U.S. v. Edward Matthes; U.S. v. Chris Kubiak; U.S. v. James Nickels).

Violent Crime & Gangs.  The Office continued its commitment to reduce violent crime throughout the district, in urban, rural, and tribal areas.  Upon becoming U.S. Attorney, Krueger established a Violent Crime Team with prosecutors focused on armed robberies, firearms offenses, and violent gangs.  Through initiatives like Project Safe Neighborhoods, Project Guardian, and Operation Legend, substantial enforcement and prevention resources came to Milwaukee and other cities suffering from spikes in violent crime.  These included resources for crime victims, focused deterrence programs, and prisoner reentry programs to prevent further violent crime.      

Combatting the Drug Epidemic.  U.S. Attorney Krueger led multifaceted efforts to confront the ongoing drug crisis.  Krueger established an Opioid Task Force that sent warning letters to outlier opioid prescribers and brought enforcement actions in the most egregious cases (U.S. v. Steven Kotsonis; Mehran Heydarpour civil settlement; U.S. v. Lisa Hofschulz).  With partners, the Office launched a public awareness campaign and hosted two statewide Opioid and Meth Summits that brought together over 600 treatment, prevention, and enforcement professionals.  In multiple cases, the Office brought charges to take down largescale drug-trafficking organizations with ties to Puerto Rico and Mexico, as well as traffickers on the dark web.  

Civil Rights.  Under U.S. Attorney Krueger’s leadership, the Office continued DOJ’s proud legacy of protecting civil rights.  With the rise of extremist ideologies, the Office charged Chadwick Grubbs for threatening the Jewish Community Center and Yousef Barasneh for vandalizing a synagogue.  The Office continued its long-standing practices of reviewing law enforcement officers’ use of force.  The Office actively enforced the Americans with Disabilities Act, obtaining agreements from businesses to provide accommodations and restitution to victims.  The Office conducted outreach to raise awareness about racial and national origin discrimination in housing; hate crimes; sexual harassment in housing; voting rights; and illegal burdens on religious freedom.  

Human Trafficking & Child Exploitation.  U.S. Attorney Krueger reinforced the Office’s commitment to combatting human trafficking and child exploitation.  The Office ranked among the nation’s busiest in charging sex trafficking, forced labor, and child pornography offenses.  The Office also helped lead an interagency human trafficking task force, contributed to trainings throughout the district, and co-sponsored a statewide conference to build capacity among law enforcement and service providers. 

Defending the United States in Civil Litigation.  The Office also continued to vigorously defend federal agencies and officials in a wide range of civil litigation.  U.S. Attorney Krueger increased the Civil Division’s personnel, enhancing the Office’s ability to advance the government’s interests and protect taxpayers’ funds. 

*  *  *

After being recommended by Senator Ron Johnson and Senator Tammy Baldwin, U.S. Attorney Krueger was nominated by President Trump, confirmed by the Senate unanimously, and sworn into office on February 22, 2018.  

Before taking office, U.S. Attorney Krueger served nearly five years as an Assistant U.S. Attorney prosecuting both civil and criminal violations involving healthcare fraud, procurement fraud, tax fraud, bank fraud, securities fraud, and violent crime.  He previously practiced complex trial and appellate litigation with an international law firm in Washington, DC.

U.S. Attorney Krueger began his legal career as a law clerk for the Honorable Paul V. Niemeyer on the U.S. Court of Appeals for the Fourth Circuit.  He then served as a Bristow Fellow in the U.S. Department of Justice, Office of the Solicitor General.  Krueger received his B.S. from the University of Wisconsin-Madison with honors and received his J.D. summa cum laude from the University of Minnesota Law School where he served as Editor-in-Chief of the Minnesota Law Review. 

*  *  *

Mr. Frohling first joined the Office as an Assistant U.S. Attorney in July 2000.  He has served as First Assistant U.S. Attorney since November 2015.  He has been a supervisor in the Office for over 16 years, previously serving as Criminal Chief and Deputy Criminal Chief.  Mr. Frohling began his legal career as a law clerk to the Honorable Terence Evans of the U.S. Court of Appeals for the Seventh Circuit, and then practiced civil litigation in a private law firm. 

“The Office will be in steady hands.  Rick Frohling is a consummate professional and has been a trusted advisor throughout my tenure,” said U.S. Attorney Krueger.           

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For further information contact: Public Information Officer Kenneth Gales

Kenneth.Gales@usdoj.gov

(414) 297-1700

Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that Xengxai Yang (age: 21), formerly of Appleton, was sentenced to 14 years in federal prison for his role in a credit union robbery. Following a bench trial in October 2020, Senior United States District Judge William C. Griesbach found Yang guilty of Armed Bank Robbery, Brandishing a Short-Barreled Rifle During a Crime of Violence, and Possession of a Short-Barreled Rifle. On February 4, 2021, Judge Griesbach imposed the following sentences:G

COUNT

CRIME

SENTENCE

One

Armed Bank Robbery

48 months in prison

Two

Brandishing a Short-Barreled Rifle During a Crime of Violence

120 months in prison, consecutive to other counts

Three

Possession of a Short-Barreled Rifle

48 months in prison, concurrent with Count One

After Yang completes his 168-month sentence, he will be on supervised release for a total of five years.

Court records revealed the following. On March 15, 2019, Yang entered a federally insured credit union on the west side of Appleton, Wisconsin. Yang wore a black plastic theater mask, sunglasses, and a black hooded sweatshirt with the hood up and his head covered. As he approached the counter, Yang pulled out a short-barreled shotgun and demanded money from the teller. Yang held the tellers at gunpoint while they gave him the money in their cash drawers. Yang placed the money in a bag and used cable ties to restrain two of the employees. Yang then left the credit union on foot. Officers with the Appleton Police Department apprehended Yang about a block away and recovered over $10,000 in cash. Yang admitted robbing the credit union, telling an Appleton detective, that he “decided to try something new today, so I robbed a bank.” The rifle used during the robbery had a barrel of 9.5 inches and was illegal for Yang to possess.

In sentencing Yang, Judge Griesbach noted the serious nature of the offense. Chief Judge Griesbach noted that the offense was “bizarre” in light of a lack of previous criminal history, but also stated “no civilized society can tolerate this.” Judge Griesbach pointed out the tremendous impact the offense had on the credit union employees and the need for the sentence to reflect that trauma. Judge Griesbach also observed the need to deter others who might consider similar actions.

The Appleton Police Department investigated the case. It was prosecuted by Assistant United States Attorney Andrew J. Maier.

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For further information contact:

Public Information Officer Kenneth Gales

Kenneth.Gales@usdoj.gov

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United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on January 26, 2021, a federal grand jury returned a two-count indictment against Ashton L. Howard (age: 27) of Kenosha, Wisconsin.

Count one stems from the civil disorder that erupted in Kenosha following the August 23, 2020 shooting of Jacob Blake. According to court documents, evidence indicates that on August 23, 2020, a Kenosha Police Department officer was helping to remove a damaged police vehicle when Howard threw a heavy object at the officer’s head, knocking him unconscious.

Count one charges Howard with obstructing a law enforcement officer during a civil disorder, in violation of 18 U.S.C. § 231(a)(3). A “civil disorder” is defined by law as a “public disturbance involving acts of violence” by a group of three or more people, which “causes an immediate danger” of “damage or injury” to property or persons. 18 U.S.C. § 232(1). If convicted of count one, Howard faces a maximum of five years of imprisonment.

Count two alleges that Howard subsequently possessed ammunition, despite his prior felony conviction, in violation of 18 U.S.C. § 922(g)(1). If convicted of count two, Howard faces a maximum of ten years of imprisonment.

“There must be accountability for anyone who attacks a law enforcement officer during a civil disorder,” said United States Attorney Krueger. “I commend the painstaking investigative efforts of the FBI and Kenosha Police Department to bring this case.”

“The FBI will continue to work with our partners to aggressively investigate and hold those responsible who obstruct law enforcement during civil disorder. We will continue to support our partners with appropriate resources to maintain a safe community,” said FBI Special Agent in Charge Robert Hughes.

The Kenosha Police Department partnered with the FBI to investigate an incident wherein a Kenosha police officer suffered a serious injury during an illegal civil disorder. This was not a case of legal protest; instead, it was a felonious assault on a police officer. This type of conduct cannot and will not be accepted,” said Kenosha Police Chief Daniel Miskinis.

An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt

This case was investigated by the Federal Bureau of Investigation and the Kenosha Police Department. It will be prosecuted by Assistant United States Attorney Benjamin Proctor.

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For further information contact:

Public Information Officer

Kenneth.Gales@usdoj.gov

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United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on January 14, 2021, United States District Court Judge Lynn Adelman sentenced Nicole Doxtator (age: 30) of Milwaukee to two years and one day in prison following her conviction for mail fraud and aggravated identity theft. Doxtator, who committed the offenses in connection with her position as an economic support specialist with Milwaukee County Enrollment Services, pled guilty to the charges on September 24, 2020.

According to the indictment, Doxtator and her co-defendant, Granville Holley, accessed and made changes to the closed files of thirteen former Supplemental Nutrition Assistance Program (SNAP) recipients, causing the benefits to be revived. SNAP cards were then mailed, not to the former recipients, but to addresses where Doxtator and Holley would retrieve them. The two used several of the cards to make purchases for themselves. Other were sold for cash.

The scheme, which began in December 2015 and continued through December 2018, resulted in a loss of $49,432.10 to the federally funded program.

In sentencing the defendants, Adelman noted that the crimes were serious not only because they depleted funds designated for truly needy people, but also because the defendants’ conduct undermined public confidence in the program. 

“Doxator is heading to federal prison because she exploited her position of trust to steal public funds meant for people in need,” said United States Attorney Krueger.  “The Department of Agriculture performed excellent work in bringing this case, which stands as a warning to anyone else who would consider stealing public benefits.”

The case was investigated by the United States Department of Agriculture, Office of Inspector General. It was prosecuted by Assistant United States Attorneys Carol L. Kraft and Kate M. Biebel.

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For further information contact: Public Information Officer Kenneth Gales

Kenneth.Gales@usdoj.gov

(414) 297-1700

United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on January 26, 2021, Steven R. Brandenburg (age: 46) of Grafton, Wisconsin, signed a plea agreement acknowledging that he was guilty of attempting to render hundreds of doses of COVID-19 vaccine ineffective, in violation of 18 U.S.C. § 1365.

Brandenburg is charged by an Information with two counts of attempting to tamper with consumer products, with reckless disregard for the risk that another person will be placed in danger of death or bodily injury. Brandenburg has agreed to plead guilty to the charges, which each carry a maximum sentence of ten years’ imprisonment. 

As detailed in court documents, while working as a hospital pharmacist in Grafton, Wisconsin, on two successive overnight shifts in late December, Brandenburg purposefully removed a box of COVID-19 vaccine manufactured by Moderna—which must be stored at specific cold temperatures to remain viable—from the hospital’s refrigeration unit, intending to render the vaccine inert and no longer effective. According to the plea agreement, Brandenburg believed in various “conspiracy theories”; subscribed to notions of “alternative history”; and was skeptical of vaccines in general and the Moderna vaccine specifically. Brandenburg had communicated his beliefs about vaccines to his co-workers for at least the past two years.

After leaving the vaccines out for several hours each night, Brandenburg returned the vaccines to the refrigerator to be used in the hospital’s vaccine clinic the following day. Before the full extent of Brandenburg’s conduct was discovered, 57 people received doses of the vaccine from these vials.

“Distributing the COVID-19 vaccine is critical to overcoming this pandemic, which continues to end lives and upend our economy,” said United States Attorney Krueger.  “As these charges show, the Justice Department will pursue anyone—and especially any medical professional—who tampers with the vaccine.”

“Tampering with vaccine doses in the midst of a global health crisis calls for a strong response, as reflected by the serious charges the United States has brought today,” said Acting Assistant Attorney General Brian Boynton of the Department of Justice’s Civil Division. “The Department of Justice will continue to work with its law enforcement partners to ensure the public receives safe and effective vaccines.”

“The FDA has ensured that the Moderna COVID-19 vaccine meets the agency’s rigorous standards for quality, safety, and efficacy. Those who knowingly tamper with this vaccine place American patients’ health at risk,” said FDA Assistant Commissioner for Criminal Investigations Catherine A. Hermsen. “Today’s announcement should serve as a reminder that this kind of illicit tampering activity will not be tolerated.”

“Pharmacists rank among some of the most trusted professionals,” said FBI Special Agent in Charge Robert Hughes. “This individual used his special access to tamper with vials of the much needed COVID-19 vaccine. The FBI takes allegations of consumer product tampering very seriously and will use all available resources to bring those to justice who intentionally put the public’s health at risk.”

“The actions by Mr. Brandenburg are not representative of the great people at Aurora Grafton who, day in and day out, serve our community. I am extremely proud of those who came forward to expose Mr. Brandenburg’s actions. I am also proud of my team’s efforts, their professionalism, hard work and diligence on this case. Finally, I would like to thank all of our federal partners and the Ozaukee County DA’s Office for working with us on this case—it is through these partnerships that we are able to accomplish great things,”  said Jeff A. Caponera, Grafton Chief of Police

Adam Gerol, Ozaukee County District Attorney said, “I’m grateful for the hard work and dedication of all the law enforcement officers, and the prosecutors from the federal government, that was necessary to bring an appropriate level of prosecution and punishment to this case.  Unfortunately, the facts of this incident simply didn’t fit a charge provided for by Wisconsin law that carried a sufficient measure of punishment. Hopefully, what transpired here will emphasize the need to expand the scope of our existing statutes should anything like this happen again.”

This matter was investigated by the Food and Drug Administration’s Office of Criminal Investigations, the Milwaukee Field Office of the FBI, and the Village of Grafton Police Department. The case is being prosecuted by Assistant U.S. Attorney Kevin C. Knight of the United States Attorney’s Office for the Eastern District of Wisconsin, and Senior Litigation Counsel Ross S. Goldstein and Trial Attorney Rachel Baron of the Department of Justice Civil Division’s Consumer Protection Branch. 

The claims made in the Information are allegations that, if the case were to proceed to trial, the government must prove beyond a reasonable doubt to convict the defendant. The plea agreement expresses the defendant’s intention to plead guilty, but the defendant has not yet formally entered a plea in this matter.

For more information about the United States Attorney’s Office for the Eastern District of Wisconsin, visit its website at www.justice.gov/usao-edwi.  Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch.  For information about the Department of Justice’s efforts to stop COVID-19 fraud, visit www.justice.gov/coronavirus.  For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO) websites.

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For further information contact:

Public Information Officer Kenneth Gales

Kenneth.Gales@usdoj.gov

(414) 297-1700

 

Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on  January 22, 2020, Aaron T. Moul, a/k/a “The Panty Man,” a/k/a “Jazmyn Samuels,” a/k/a “Aaron Timothy” (age: 29) of North Providence, Rhode Island, was sentenced to 48 months in federal prison by Senior U.S. District Judge William C. Griesbach. 

In October of 2020, Moul pled guilty to one count of use of a telephone with the intent to abuse, threaten, or harass, and one count of cyberstalking. Moul’s crimes occurred in April of 2020, when he used his online persona “The Panty Man,” to contact a resident of Langlade County via Facebook and the telephone, to convey threats to injure and kill that person. Over a series of days, Moul repeated his threats while also sending sexualized images and videos of himself displayed and “twerking” in women’s underwear. Simultaneously, Moul was sending similar threats and videos to a resident of Arizona.

In pronouncing sentence, Judge Griesbach noted the insidious nature of Moul’s crimes, which displayed a high level of anger and misogyny toward his victims. Judge Griesbach noted Moul’s previous convictions for similar crimes in other states for which he had received “slaps on the wrist.” Finally, the judge determined that deterrence and the protection of the community were of utmost importance in arriving at a just sentence. Moul’s prison sentence will be followed by three years on supervised release.  

This case was investigated by the Langlade County Sheriff’s Office, the North Providence Rhode Island Police Department, and the United States Marshal’s Service. It was prosecuted by Assistant United States Attorney Daniel R. Humble.

#    #    #

For Additional Information Contact: Public Information Officer Kenneth Gales

Kenneth.Gales@usdoj.gov

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Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on January 21, 2021, Jacob J. Salewski (age: 24) of Sobieski, Wisconsin, was sentenced to 60 months’ imprisonment for his distribution of child pornography.

In September of 2019, the Wisconsin Department of Justice, Division of Criminal Investigation (DCI) received leads from the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations (HSI) and the National Center for Missing and Exploited Children (NCMEC). Based on those leads, DCI investigators determined that an online user known as “susandoll69” and “ollie9615” distributed child pornography using a popular instant messaging service. Investigators tracked those usernames’ online activities and determined that the distribution was occurring at a residence in Sobieski, Wisconsin. Further investigation determined that Jacob J. Salewski was the individual known online as “susandoll69” and “ollie9615.” 

Senior U.S. District Judge William C. Griesbach called Salewski’s actions serious and called for appropriate punishment. In addition to the 60 months of imprisonment, Salewski will spend seven years on supervised release and will be required to register as a sex offender.

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

This case was investigated by the Wisconsin Department of Justice, Division of Criminal Investigation, the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations, with the assistance of the Oconto County Sheriff’s Office.  It was prosecuted by Assistant United States Attorney Daniel R. Humble.

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For Additional Information Contact: Public Information Officer Kenneth Gales

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Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on January 21, 2021, Ronald P. Ortgea (age: 47) of Dyer, Indiana, was sentenced to 180 months in federal prison by Senior United States District Judge William C. Griesbach.

In June of 2020, Ortega began corresponding via a popular messaging platform with someone he believed to be a 40-year-old woman in Oshkosh, Wisconsin. During these conversations Ortega sent videos containing child pornography and stated his desire to have sexual intercourse with the woman’s 15-year-old daughter. On July 6, 2020, Ortega travelled from Indiana to Oshkosh to meet the woman and her child at a local motel. Ortega brought lingerie, sex toys, and electronic devices for the purpose of capturing images of himself engaged in sexual activity with the child. The “woman” was, in fact, an undercover law enforcement officer, and Ortega was arrested.

Ortega’s indictment and subsequent conviction were part of Operation Kick Boxer, a collaborative effort involving the Milwaukee Division of the Federal Bureau of Investigation (FBI), the U.S. Attorney's Office for the Eastern District of Wisconsin, and the Winnebago County Sheriff's Office. (https://go.usa.gov/xfPHh).   

In handing down the sentence, Senior District Judge Griesbach noted the very serious nature of the charge and the need for just punishment. Following his release from prison, Ortega will spend seven years on supervised release.  He will also be required to register as a sexual offender.

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

This case was investigated by the Federal Bureau of Investigation’s Milwaukee and Green Bay Offices, as well as the Winnebago County Sheriff’s Office.  It was prosecuted by Assistant United States Attorney Daniel R. Humble.

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For Additional Information Contact: Public Information Officer Kenneth Gales

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Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on January 12, 2021, U.S. District Judge William C. Griesbach sentenced Jerry Lee Olson (age: 63) to six months’ imprisonment and three years’ supervised release after Olson pled guilty to unlawfully transferring a firearm silencer, in violation of Title 26, United States Code, Section 5861(e). The maximum penalties for the offense are ten years’ imprisonment, a $250,000 fine, and three years’ supervised release.

Olson was a licensed federal firearms dealer, d/b/a Warrior Arms LLC, with a business address in Outagamie County. In addition to selling standard firearms, Olson was federally licensed to sell firearms regulated by the National Firearms Act, including firearm silencers. Before any firearm silencer is transferred, the licensed seller must obtain approval by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”). ATF’s investigation determined that Olson had unlawfully transferred at least 17 firearm silencers in Wisconsin and Minnesota by failing to obtain ATF’s approval for the transfer. The silencers were subsequently recovered by ATF. There is no evidence that the silencers were used in criminal offenses or transferred to persons who were otherwise prohibited from possessing firearms. Olson surrendered his federal firearm licenses, and as a convicted felon, is now permanently prohibited from possessing firearms.

“In the wrong hands, firearms silencers can be used to lethal effect,” said United States Attorney Krueger.  “That is why the Justice Department vigorously enforces the laws governing their sale and holds irresponsible firearms dealers accountable.  I commend the ATF for its excellent investigative work to bring this case.”

“This defendant violated the law with repeated illegal firearms transfers,” said ATF Special Agent in Charge Kristen de Tineo of the Chicago Field Division. “It cost him his federal firearms license and time in federal prison.  I commend licensees who follow the laws governing firearms as well as the Industry Operations Investigators of the St. Paul Field Division and the Special Agents of the Milwaukee Field Office of the Chicago Field Division for their diligence in investigating this case and the U.S. Attorney’s office for prosecuting it.”

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Timothy Funnel

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For Additional Information Contact: Public Information Officer Kenneth Gales

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Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on January 12, 2021, a federal grand jury had returned a two-count indictment against Jon E. Janikowski (age: 36) of the Winneconne, Wisconsin. The indictment alleges that Janikowski engaged in cyberstalking and illegally possessed ammunition.

The cyberstalking charge alleges that Janikowski intended to “harass and intimidate another person” using a computer or “electronic communication system of interstate commerce” and that he engaged in a “course of conduct that placed that person in reasonable fear of death and serious bodily injury,” contrary to Title 18, United States Code, Section 2261A(2)(A). The indictment also alleges that Janikowski, a felon, possessed ammunition in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).  

If convicted of the cyberstalking charge, Janikowski faces up to five years’ imprisonment and a $250,000 fine. If convicted of the ammunition charge, he faces up to ten years’ imprisonment and a $250,000 fine.  

Janikowski was arraigned in Federal court in Green Bay on January 15, 2021, at which time the indictment was unsealed. Janikowski will be detained pending trial at the Winnebago County Jail.

An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt

This case was investigated by the Winneconne and Oshkosh police departments. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.

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Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on January 12, 2021, a federal grand jury returned a three-count indictment against Adam L. Lambrecht (age: 40) of the Two Rivers, Wisconsin.

The indictment alleges that Lambrecht distributed “actual” or “crystal” methamphetamine on three occasion between August 25, 2020, and September 10, 2020, contrary to Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).  

Each charge carries a mandatory five years’ imprisonment and up to 40 years’ imprisonment on each count. He further faces fines of up to $5,000,000, and from four years to a lifetime on supervised release.

An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt

This case was investigated by the Manitowoc County MEG unit with the assistance of the U.S. Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.

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Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on anuary 12, 2021, a federal grand jury returned a three-count indictment against Timothy J. Tetzlaff (age: 59) of the Town of Mishicot, Wisconsin.

Tetzlaff faces two counts alleging that he transported minors in interstate and foreign commerce with the intent to engage in criminal sexual activity contrary to Title 18, United States Code, Section 2423(a) and that he engaged in the production of child pornography in violation of Title 18, United States Code, Section 2251(a).  

If convicted of the transportation charges, Tetzlaff faces a mandatory ten years’ imprisonment and up to a life sentence on each count. If convicted of the child pornography production charge, he faces a mandatory 15 years’ imprisonment and up to 30 years’ imprisonment.  

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

An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt

This case was investigated by the Manitowoc County Sheriff’s Office and the Green Bay branch of the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.

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For Additional Information Contact: Public Information Officer Kenneth Gales

Kenneth.Gales@usdoj.gov

414-297-1700