Eastern District of Wisconsin

Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that Richard J. Clark (age 71) was sentenced on May 21, 2019 in federal court in Milwaukee to 14 months in prison, to be followed by three years of supervised release, and ordered to pay $213,000 in restitution to the IRS. 

Clark, who resides in Mukwonago, previously operated Foremost Realty, LLC, a real estate business that listed, maintained, and sold foreclosed property in southeastern Wisconsin.  During the years 2008 – 2013, Clark, through his business, received approximately $1.6 million in commissions. Despite receiving these commissions, Clark filed tax returns that either listed $0 on all lines of the returns, reporting no income or tax obligations, or reported very minimal income and taxes. As a result, during the years 2008-2013, Clark evaded more than $400,000 in federal income taxes. 

Clark was previously the subject of a civil action brought by the U.S. Department of Justice concerning his 2002-2007 tax returns, on which Clark also reported no income or taxes.  At sentencing, Clark acknowledged his former tax-protestor beliefs but stated that he had abandoned those misguided beliefs and intended to dedicate himself to making amends and repaying the taxes he owes.

This matter was investigated by the criminal investigation division of the Internal Revenue Service. The prosecution was handled by Assistant United States Attorney Matthew L. Jacobs.

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United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced today that five people were indicted for conspiracy to commit forced labor, labor trafficking, and five additional labor-related offenses. The defendants are alleged to have trafficked the victims from Georgia to Wisconsin to work on farms located in the Eastern District of Wisconsin in 2016.  

The indictment named:

Name

Age

Residence

Saul Garcia

49

Moultrie, GA

Saul Garcia, Jr

26

Moultrie, GA

Daniel Garcia

28

Moultrie, GA

Consuelo Garcia

45

Moultrie, GA

Maria Remedios Garcia-Olalde

52

Mexican National

According to the indictment, the defendants conspired to provide the labor and services of fourteen adult victims, all of whom are male Mexican nationals, by means of (1) serious harm and threats of serious harm, (2) abuse and threatened abuse of legal process, and (3) a scheme intended to cause the victims to believe that, if they did not perform such labor and services, they would suffer serious harm.  The indictment alleges that to restrict the victims’ movement and ability to travel while in Wisconsin, the defendants’ possessed the victims’ passports. Two of the five defendants—Saul Garcia Sr. and Maria Remedios Garcia-Olalde—were also indicted on obstruction charges.

“Trafficking another human being is a particularly vile crime,” said U.S. Attorney Krueger.  “The Department of Justice is committed to prosecuting anyone who seeks to sell another person’s freedom.” 

If convicted, the defendants face up to 20 years in prison on the charges of forced labor conspiracy, trafficking with respect to forced labor, financial benefit from forced labor, obstruction of a labor trafficking investigation, and witness tampering. The indictment also identifies fifteen real properties located in Georgia.  

The defendants were charged based on a multi-year investigation by law enforcement agents and officers from the Federal Bureau of Investigation’s Human Trafficking Task Force, including special agents and officers representing the Department of Labor Office of Inspector General, the Federal Bureau of Investigation, Homeland Security Investigations and the City of Racine Police Department.

The case is being prosecuted by Assistant United States Attorneys Laura S. Kwaterski, Erica J. Lounsberry, and Karine Moreno-Taxman.

The public is cautioned that an indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty.

 

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Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, has made the following statement, recognizing the service and sacrifice of federal, state, local, and tribal law enforcement on the occasion of National Peace Officers Memorial Day and during National Police Week:

            “In 1962, to honor law enforcement officers killed or disabled in the line of duty, Congress passed and President Kennedy signed a joint resolution declaring May 15 as National Peace Officers Memorial Day.  Unfortunately, in the last twelve months alone, three Milwaukee Police Officers – Matthew Rittner, Michael Michalski, and Charles Irvine, Jr. – were killed while protecting and serving our community.  We must never forget the service and sacrifice of these officers and their fallen brothers and sisters across the country.” 

            “We also are in the middle of National Police Week, and I urge each of us to take a moment to recognize and honor the law enforcement professionals who work tirelessly to keep all of us and our communities safe.  We thank our law enforcement partners for their hard work, dedication, and sacrifice.”

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United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on May 10, 2019, Seth M. Rector (age: 37) was sentenced by the Honorable Chief Judge William C. Griesbach to two years in prison and eight years supervised release following his guilty plea to possession of child pornography, contrary to 18 U.S.C. Sections 2252A. As part of his sentence, Rector must also comply with sex offender registry requirements. Those requirements mandate Rector to advise registry officials where he is living, working or attending school.

            According to court documents, beginning in about November 2016, Rector obtained adult and child pornography via the BitTorrent network. Law enforcement observed that Rector was sharing files with names suggestive of child pornography. On September 26, 2017, law enforcement executed a search warrant at Rector’s residence. Two desk top computers were seized and later searched. The two computers contained a total of 573 child pornography image files as well as BitTorrent file sharing software. In imposing his sentence, Judge Griesbach stressed the serious nature of the offense, including the horrific nature of the images as well as the length of time over which he obtained the images.

            This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney William Roach, who was assisted by Victim Witness Specialist Jan Klika.   

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United States Attorney Matthew D. Krueger announced that a federal grand jury has returned an indictment charging a former Milwaukee alderman, Willie C. Wade (age: 56), with three counts of wire fraud. According to the indictment, Wade obtained $30,000 in cash from a cooperating individual by falsely claiming that he was negotiating on behalf of a current Milwaukee alderman to accept a bribe in exchange for a vote in favor of approving licenses for a downtown strip club. According to the indictment, the alderman was not aware of Wade’s representations and had never offered or agreed to accept any bribe.

Each count carries a maximum penalty of 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release following any prison term.  

In announcing the charges, United States Attorney Krueger specifically commended the hard work and dedication of the Milwaukee Division of the Federal Bureau of Investigation (FBI) during the investigation of this matter. 

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.

            This case was investigated by the FBI and has been assigned to Assistant United States Attorneys Richard G. Frohling and Paul L. Kanter for prosecution. 

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United States Attorney Matthew D. Krueger, has announced that on May 7, 2019, a grand jury sitting in the Eastern District of Wisconsin returned a 13-count indictment charging Archie G. Overby, 70, formerly of Waupaca, Wisconsin, now living in Plano, Texas, with bank fraud in violation of Title 18, United States Code, Section 1344, and misapplication of bank funds by a bank officer, in violation of Title 18, United States Code, Section 656. If convicted of these offenses he faces up to 30 years in prison and a $1,000,000 fine on each count.

The indictment alleges that between 2010 and 2013, Overby, who was then president, CEO and Chairman of the Board of First National Bank in Waupaca, Wisconsin, defrauded the bank by expensing the bank for luxurious personal travel and entertainment for himself, his family, and various friends. Among the trips that he is alleged to have taken at bank expense are trips to Tanzania, the Cayman Islands and St. Maarten, as well as to luxury hotels and resorts in California, Texas, Florida, and North Carolina. The indictment alleges that this personal travel exceeded $1.2 million dollars and that he caused the bank to provide him with an additional $320,930 to cover taxes on the ill-gotten proceeds.

  The case was investigated by Special Agents of the Federal Deposit Insurance Corporation Office of Inspector General and the United States Treasury Office of Inspector General. It is being prosecuted by Assistant United States Attorney Carol L. Kraft. 

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United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, has announced that yesterday, a federal grand jury returned a four-count indictment against Tyler A. Blackmon (age: 28) of Prattville, Alabama.

According to the indictment, on four occasions between September 27, 2018, and October 10, 2018, Blackmon attempted to entice a Wisconsin child identified in the indictment as “Minor Child A” to engage in acts of incest, a felony under Wisconsin law. 

Blackmon faces four charges of attempting to “persuade, induce, entice, and coerce” the child to engage in criminal sexual activity, incest, contrary to Title 18, United States Code, Sections 2422(b) and 2.  As to each count, he faces a mandatory minimum sentence of 10 years and up to a lifetime of incarceration in federal prison.

This case was investigated by the Seymour Police Department with the assistance of the Prattville Police Department in Alabama.  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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Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that on May 2, 2019, Marcus Hutchins, aka “MalwareTech,” pleaded guilty to two counts relating to his creation and distribution of the Kronos banking Trojan and UPAS Kit malware. This includes one count of conspiracy to commit computer fraud in violation of Title 18, United States Code, Section 371, and one count of advertising a device used to intercept electronic communications, in violation of Title 18, United States Code, 2512(1)(c)(i).

According to admissions made in connection with his plea, Hutchins, age 24, developed UPAS Kit and Kronos and then worked with an accomplice to sell the malware programs for profit. Both UPAS Kit and Kronos were designed to be deployed secretly on victim computers, and then to intercept communications and transmit personal information, including usernames, passwords, email addresses, and financial data to the person controlling malware program. The malware was specially tailored to target victims’ banking information. Since 2014, Kronos has been used to infect numerous computers around the world and steal banking information.

Hutchins and his accomplice, “Vinny,” advertised Kronos and UPAS on various websites, including the AlphaBay market and Darkode forum. The advertisements highlighted the ability of the malware to steal information and avoid antivirus programs. Hutchins updated the malware code as needed, and Vinny and Hutchins shared profits from the sales.

“Vigorous prosecution of cybercrimes is vitally important because the stakes are so high:  The proliferation of malware poses serious threats to our nation’s infrastructure, our businesses, and our personal information,” said U.S. Attorney Krueger. “We commend the FBI’s Cyber Division for its excellent work in investigating this sophisticated and dangerous crime.” 

Hutchins faces a maximum term of 5 years imprisonment and up to one year of supervised release on each count. His sentencing hearing is set for July 26, 2019, at 11:30 a.m before U.S. District Judge J.P. Stadtmueller.

This case was investigated by the Federal Bureau of Investigation Cyber Crime Task in Milwaukee. The case is being prosecuted by Assistant United States Attorneys Benjamin Proctor and Benjamin Taibleson.

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Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that Desmond T. Burns (age: 40) of Oshkosh, Wisconsin, appeared in federal court in Green Bay and was sentenced to 20 years in prison for distributing fentanyl that resulted in the overdose deaths of four individuals in the Fox Valley.  During proceedings in this case, Burns acknowledged distributing an especially potent form of fentanyl, which led to the overdose deaths in the summer of 2017.        

“Our hearts are heavy with the reality of four lives lost because of the fentanyl the defendant sold,” said U.S. Attorney Krueger. “The dangers of fentanyl cannot be overstated. Just a quarter of a milligram of fentanyl can be fatal. Yet fentanyl is regularly being trafficked in Wisconsin, causing hundreds of overdose deaths each year. This lengthy sentence should send a clear message: Anyone dealing a deadly poison like fentanyl can face decades in federal prison. We are committed to working with federal, state, and local partners to prosecute fentanyl trafficking aggressively. We commend the excellent partnership among the law enforcement agencies that brought this case to justice.”

In pronouncing sentence, Chief U.S. District Court Judge William C. Griesbach noted the “extremely serious” nature of Burns’ crime and the negative effect that fentanyl and all drugs have on the community.  He found that Burns was aware of the inherent dangers of distributing illegal substances, finding that although Burns may not have intended for his customers to die, he reasonably could foresee that one of them might suffer a fatal overdose. Following his release from prison, Burns also must serve 10 years on federal supervised release.  

The case was investigated by the New London Police Department, the Appleton Police Department, the Neenah Police Department, and the Winnebago County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.

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United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that Devin Jefferson (age: 30) of Indianapolis, Indiana was sentenced yesterday by the Honorable Judge Pamela Pepper to 130 months’ imprisonment for his involvement in three armed pharmacy robberies of Walgreens stores located in the Eastern District of Wisconsin. 

The investigation revealed that Jefferson and his co-actors traveled from Indianapolis, Indiana, to Milwaukee, Wisconsin, and arrived on May 7, 2017.  Over the next three days, Jefferson and his co-actors committed three armed robberies of pharmacies.  Jefferson pled guilty to the armed robberies of two Walgreens stores located in Milwaukee, on March 8, 2017 and March 10, 2017, respectively, and the armed robbery of a Walgreens store located in Menomonee Falls, Wisconsin, on March 10, 2017.  Jefferson and his co-actors obtained a substantial number of prescription opioids, primarily Oxycodone and Percocets, during the course of their armed robbery spree.  At the sentencing, Judge Pepper emphasized the violent nature of these armed robberies, including the fact that one victim was held at gunpoint for a period of six minutes.  Judge Pepper stated that when she reviewed the surveillance video of that robbery, the word that came to mind was “cold blooded.” 

“No one who works in or visits a pharmacy should have to face a loaded gun,” said U.S. Attorney Krueger.  “These robberies highlight how the demand for prescription opioids in street markets drives violent crime; the defendant aimed to resell the pills he and his co-actors stole at gunpoint for a substantial profit.  The U.S. Attorney’s Office is committed to working with federal, state, and local partners to combat violent crime and the opioid epidemic to keep our communities safe.”

The Hobbs Act, passed by Congress in 1946, provides federal jurisdiction for cases involving violent criminals who commit armed robbery of businesses involved in interstate commerce.  The U.S. Attorney’s Office collaborates with law enforcement partners to ensure that violent offenders are effectively prosecuted.  This prosecution resulted from the collaborative efforts of the following agencies: the Milwaukee Area Violent Crime Task Force; the Milwaukee, and Indianapolis Divisions of the Federal Bureau of Investigation; the Milwaukee Police Department; the Menomonee Falls Police Department; the Milwaukee County District Attorney’s Office; and the Waukesha County District Attorney’s Office.  This case is being prosecuted by Assistant United States Attorneys Laura S. Kwaterski and Benjamin Wesson.

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United States Attorney Matthew D. Krueger announced today that the United States settled allegations that ProHealth Care, Inc. (“ProHealth”) discriminated against patients with hearing impairments in violation of the Americans with Disabilities Act (“ADA”). 

ProHealth is a community-based health care system and offers a full range of services, such as fitness and wellness, primary care and specialty care, hospital care, rehabilitation care, and others. Title III of the ADA prohibits public accommodations, including healthcare providers, from discriminating against people with disabilities, including individuals with hearing impairments.  Following receipt and investigation of complaints, the government found that ProHealth failed to provide effective communication to a patient and her companion—both of whom are deaf and communicate primarily through American Sign Language—during the patient’s treatment at Oconomowoc Memorial Hospital in February 2017. Specifically, ProHealth failed to offer appropriate auxiliary aids and services, such as an American Sign Language interpreter, to permit effective communication between ProHealth’s medical staff and the complainants. Instead, ProHealth’s medical staff relied on the complainants’ minor child to interpret for the medical staff and the complainants for approximately three hours during an emergency room visit.    

Under the settlement agreement, ProHealth will pay $15,000 to Complainant No. 1 and $5,000 to Complainant No. 2. In addition, ProHealth has reviewed and revised, as appropriate, its policy on Communication with Persons with Hearing Impairments. ProHealth also will conduct additional training on the ADA’s effective communication requirements.

“The Department of Justice is fully committed to enforcing the ADA,” said U.S. Attorney Krueger. “It is hard to imagine another setting besides a hospital in which effective communication is more important. We commend the complainants for bringing attention to the lack of auxiliary aids and services they were offered.  This settlement will help ensure that other individuals with disabilities receive the assistance they need to communicate well with their healthcare providers.” 

This matter was handled by Assistant United States Attorney Michael A. Carter.  For more information on the ADA or this settlement, visit www.ada.gov. Individuals interested in finding out more about the ADA may also call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD). ADA complaints may be filed online at www.ada.gov/complaint/ 

 

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Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that on April 18, 2019, David E. Polnitz, Jr., was sentenced in federal court to 36 months in prison for illegally possessing a firearm and forcibly assaulting, impeding, intimidating or interfering with a United States Postal Service (“USPS”) Letter Carrier.  A jury had previously found Polnitz guilty of these charges. 

The facts at trial showed that on June 27, 2017, a USPS Letter Carrier was attempting to deliver mail when Polnitz’s unrestrained pit bull charged the Letter Carrier. Fearing for his safety, the Letter Carrier followed procedure and sprayed the pit bull with USPS-issued dog spray. Polnitz, 39, upon being notified by his spouse of the incident, ultimately pointed a Taurus, model PT738, semi-automatic .380 pistol at the Letter Carrier. The Letter Carrier identified Polnitz, among other ways, by his distinctive “Pepsi blue” contact lenses.

While sentencing Polnitz, United States District Court Judge Pamela Pepper emphasized that this was one of the more serious cases of its kind that she had seen. She also stressed that the victim in this case was merely doing his job as a letter carrier and should never have been threatened with a gun.   

“This sentence sends the message that federal prison awaits anyone who threatens a federal employee,” said United States Attorney Krueger. “We commend the law enforcement agencies for their excellent work in bringing justice to this matter.”

“The sentencing in this case should send a strong message that Postal Service employees should not be threatened or intimidated while performing their official duties, and should be off limits to acts of violence,” said Inspector in Charge Craig Goldberg, of the Chicago Division of the U.S. Postal Inspection.  “The safety of Postal Service employees is our top priority and violence against our employees will never be tolerated.”

The case was investigated by the Milwaukee Police Department and the U.S. Postal Inspection Service, and prosecuted by Assistant United States Attorneys Zachary Corey and Benjamin Taibleson.

 

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Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on April 22, 2019, Jeffrey Melgar (age: 33), of Appleton, Wisconsin, was sentenced to a term of ten years in federal prison, followed by six years of supervised release, for possessing with the intent to distribute over 500 grams of methamphetamine, in violation of Title 21, United States Code, Section 841(a) and (b)(1)(A).

According to court documents, Melgar, who recently moved to the Appleton area from California, received packages of methamphetamine via the U.S. Postal Service from a source in California. Melgar then sold the drug for $600 an ounce in the Fox Valley. 

In pronouncing sentence, Chief U.S. District Judge William C. Griesbach noted the serious nature of Melgar’s offense and the need to send a strong message of deterrence to Melgar and anyone else who might attempt to distribute drugs in Northeast Wisconsin.   

The case was investigated by the United States Postal Inspection Service and the Lake Winnebago Area Metropolitan Enforcement Group.  It was prosecuted by Assistant United States Attorney Daniel R. Humble.

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A Wisconsin woman pleaded guilty today to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.  Assistant Attorney General for National Security John C. Demers, U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin and Acting Special Agent in Charge Michelle Sutphin of the FBI's Milwaukee Field Office announced the plea. 

Waheba Issa Dais, 46, pleaded guilty to one count of attempting to provide material support to ISIS, based upon her conduct in support of the terrorist organization in 2018.

According to admissions made in connection with her plea, Dais used hacked Facebook accounts in order to support ISIS.  Using these accounts, she pledged her allegiance to ISIS on numerous occasions, communicated with and encouraged other ISIS supporters who described their plans to conduct attacks, disseminated information about explosives and biological weapons, and attempted to recruit new members to ISIS’s cause.  For example, Dais posted videos providing step-by-step instructions on how to make an explosive belt and TNT, and she provided a detailed recipe for the poison Ricin.  Dais also maintained encrypted social-media channels, where she posted messages encouraging ISIS supporters who could not travel to ISIS-controlled lands to conduct terrorist attacks in their home countries.  Through those encrypted channels, she also provided detailed information about explosives, guns, attack planning, and target selection.  

Dais faces a maximum term of imprisonment of 20 years, a maximum life term of supervised release, and a maximum fine of $250,000.  Her sentencing is set for Sept. 12, 2019 before Judge Pamela Pepper.

This conviction is the result of an extensive investigation by the Federal Bureau of Investigation’s Milwaukee Field Office.  The case is being prosecuted by Assistant United States Attorney Rebecca Taibleson and Trial Attorney Jennifer Burke of the National Security Division.

Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that on April 22, 2019, Yosvany Padilla-Conde, of Milwaukee, pled guilty to aiding and abetting Jason Luedke’s attempt to provide material support or resources to a foreign terrorist organization – i.e., the Islamic State, also known as the Islamic State of Iraq and the Levant (ISIL), the Islamic State of Iraq and al’Sham (ISIS), and the Islamic State of Iraq and Syria (ISIS) – in violation of Title 18, United States Code, Section 2339B(a)(1).

Padilla-Conde is a Cuban national who resided in Milwaukee at the time of the offense. He agreed to assist and did assist Jason Ludke in Ludke’s attempt to join ISIS by traveling from Wisconsin through Mexico to Syria and Iraq. Ludke and Padilla-Conde knew that ISIS engaged in terrorist activity. Padilla-Conde also swore allegiance to ISIS and expressed his intent to travel to the Middle East in videos that an undercover employee (“UCE”) of the Federal Bureau of Investigation (“FBI”) and Ludke requested that he make. The videos were sent to the UCE, who Padilla-Conde believed was an ISIS recruiter. On October 5, 2016, Ludke and his coconspirator were traveling to the Texas/Mexico border in order to accomplish their plan to join ISIS, when law enforcement located and arrested them.

Ludke was convicted of conspiring to provide material support or resources to a foreign terrorist organization – i.e., ISIS – in 2018. He is currently incarcerated.

“National security is the Department of Justice’s first priority,” said U.S. Attorney Krueger. “Our commitment to national security means working to prevent acts of violence before they occur. Padilla-Conde swore allegiance to an extremely violent terrorist organization and then traveled across the country in an attempt to join it. This case underscores that homegrown violent extremism remains a very real threat. The case also highlights excellent collaboration by federal and local law enforcement to blunt the threat before innocent lives are taken.”

Acting Special Agent in Charge Michelle Sutphin, said “Protecting Americans from terrorist threats is the highest priority of the FBI.  We are dedicated to working around the clock, here in Wisconsin, with our Joint Terrorism Task Force (JTTF) partners at the local, state and federal level to keep our community safe from those seeking to provide support and resources to a known foreign terrorist organization.”

Padilla-Conde faces a maximum term of imprisonment of twenty years, a maximum term of supervised release of life, and a maximum fine of $250,000. His sentencing is set for August 7, 2019 1:30 pm before Judge Lynn Adelman.

This conviction is the result of an extensive investigation by the FBI’s Milwaukee Field Office. The case is being prosecuted by Assistant United States Attorney Benjamin Taibleson and Trial Attorney Joseph Attias of the National Security Division.

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A Wisconsin woman pleaded guilty today to a national-security crime related to her support of a foreign terrorist organization, announced United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin.

Waheba Issa Dais, 46, was convicted of one count of attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Dais’s support took the form of expert advice and assistance to ISIS, which she provided in early 2018, in violation of 18 U.S.C. § 2339B(a)(1).

According to admissions made in connection with her plea, Dais used hacked Facebook accounts in order to support ISIS. Using these accounts, she pledged her allegiance to ISIS on numerous occasions, communicated with and encouraged other ISIS supporters who described their plans to conduct attacks, disseminated information about explosives and biological weapons, and attempted to recruit new members to ISIS’s cause. For example, Dais posted videos providing step-by-step instructions on how to make an explosive belt and TNT, and she provided a detailed recipe for the poison Ricin. Dais also maintained encrypted social-media channels, where she posted messages encouraging ISIS supporters who could not travel to ISIS-controlled lands to conduct terrorist attacks in their home countries. Through those encrypted channels, she also provided detailed information about explosives, guns, attack planning, and target selection.   

“From her home in Cudahy, Dais promoted ISIS’s hateful, violent agenda and provided detailed instructions on how to harm innocent people,” said U.S. Attorney Krueger. “This case underscores the need to remain vigilant in our efforts to identify, disrupt, and bring to justice those who would provide material support to terrorism, whether abroad or in our community. The Department of Justice is committed to protecting national security as our first priority.”

Acting Special Agent in Charge Michelle Sutphin of the Federal Bureau of Investigation’s Milwaukee Field Office said: “Protecting Americans from terrorist threats is the highest priority of the FBI.  We are dedicated to working around the clock, here in Wisconsin, with our Joint Terrorism Task Force (JTTF) partners at the local, state and federal level to keep our community safe from those seeking to provide support and resources to a known foreign terrorist organization.”

Dais faces a maximum term of imprisonment of twenty years, a maximum term of supervised release for life, and a maximum fine of $250,000. Her sentencing is set for September 12, 2019 at 9:30 am before Judge Pamela Pepper.

This conviction is the result of an extensive investigation by the Federal Bureau of Investigation’s Milwaukee Field Office. The case is being prosecuted by Assistant United States Attorney Rebecca Taibleson and Trial Attorney Jennifer Burke of the National Security Division.

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Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on April 16, 2019, a federal grand jury returned a three-count indictment charging Xengxai Yang (age: 19) of Appleton with armed robbery.

Count One of the indictment charges Yang with Armed Bank Robbery in violation of 18 U.S.C. § 2113(d). If convicted, Yang faces a maximum of 25 years in prison, up to a $250,000 fine, and up to 3 years of supervised release. Count Two charges Yang with Use of a Short-barreled Firearm During and in Relation to a Crime of Violence in violation of 18 U.S.C. § 924(c). If convicted, Yang faces up to a $250,000 fine, up to 5 years of supervised release, and up to life in prison, with a 10-year mandatory minimum sentence that must be consecutive to any other sentence. Count Three charges Yang with Possession of a Short-barreled Rifle in violation of 26 U.S.C. § 5861(d). If convicted, Yang faces a maximum of 10 years in prison, up to 3 years of supervised release, and up to a $250,000 fine.

According to the indictment, on or about March 15, 2019, the defendant forcefully took money from a federally insured credit union in Appleton and assaulted persons within the facility by the use of a dangerous weapon while committing the robbery. The weapon was a rifle with a barrel less than 16 inches in length.

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

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 his guilt beyond a reasonable doubt.

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Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, issued a statement reminding all Wisconsin residents to file accurate federal income tax returns as the deadline for filing is Monday, April 15. Although the filing season is nearing the end, the U.S. Attorney’s Office and the Internal Revenue Service’s Criminal Investigation Division work year round to protect the integrity of our nation’s tax system by investigating and prosecuting individuals who violate the tax laws.

“The funding of our government—and the vital protection and services it renders—depends upon taxpayers voluntarily complying with the tax laws,” said U.S. Attorney Krueger. “The millions of taxpayers who pay their taxes accurately deserve to know that cheating on taxes will not be tolerated. The Department of Justice and the IRS are committed to prosecuting dishonest individuals who seek to hide income, claim false deductions, or engage in other schemes to avoid their tax obligations. These prosecutions send a clear warning: Federal prison awaits those who cheat on their taxes.” 

“Taxpayers thinking about participating in fraudulent tax schemes, such as failing to report all forms of income or falsifying deductions should take a good look at the serious and detrimental consequences of taking the next step,” stated Special Agent in Charge Gabe Grchan of the IRS Criminal Investigation Division. “Those who might consider preparing false and fraudulent tax returns should be aware of the extremely negative consequences that could result in prison time, large tax bills, including substantial fines, interest and penalties.”

As the tax filing season winds down, the following prosecutions over the last four month in the Eastern District of Wisconsin serve as a warning against filing a false or fraudulent tax return, and as a reminder to be wary of any schemes that would falsify income or deductions.

Alma Ramirez, formerly of Green Bay, Wisconsin, was sentenced March 5, 2019 to four years in prison, and ordered to pay $301,370 in restitution. Ramirez, and others working with her and at her direction, prepared and filed more than 60 false federal income tax returns in the names of various individuals. These tax returns included false information concerning the taxpayer’s employment, wages, the amount of federal taxes that had been withheld from those wages, dependents, and the taxpayer’s eligibility for various tax credits. Ramirez also committed identity theft by illegally using the names and social security numbers of unwitting individuals to commit her fraud offense. 

Randy Usow of Mequon, Wisconsin, owner and operator of Randy Usow Accounting was sentenced February 21, 2019, to 30 months in prison and ordered to pay more than $600,000 in restitution. From 2011 to 2015, Usow filed at least four false federal income tax returns, fraudulently seeking more than $800,000 in federal income that he diverted to himself.

Deily Veras of Newark, New Jersey, was sentenced December 13, 2018, to 52 months in prison for fraudulently obtaining over $2.7 million in tax refund checks. Veras was also ordered to pay $2,766,926.15 in restitution. Veras committed the theft by fraudulently obtaining the identities and Social Security Numbers (“SSNs”) primarily of Puerto Rican residents.  

Karen Tompkins, of Milwaukee was the Manager of a Liberty Tax Service in Milwaukee and was sentenced March 25, 2019, to 12 months in federal prison and ordered to pay $384,528 in restitution. Tompkins and her co-conspirators artificially inflated tax filer’s claimed income, by inventing Schedule C business income for non-existent business, such as "hair braiding" or "dancing" businesses. They also claimed false W-2 income and Additional Child Tax Credits causing the IRS to pay out larger tax refunds than it otherwise would have. In return for these inflated tax refunds, Tompkins and her co-conspirators received kickbacks.

Susan Wenszell of Milwaukee was the president and owner of J. Wenszell Enterprises Inc., and pleaded guilty February 15, 2019 to failing to account for and pay federal payroll taxes to the IRS. From the second quarter of 2012 through fourth quarter of 2015, Wenszell withheld more than $1.2 million from employee wages but paid only $13,966.69 to the IRS. In addition, during the years 2010-2015, Wenszell failed to pay the employer’s share (or matching share) of payroll taxes that totaled almost $530,000.

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United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on April 5, 2019, Neil A. Harkness (age: 47) of Fairborn, Ohio, was sentenced to 24 months in federal prison for his violation of Title 18, United States Code, Section 1343, commonly referred to as “wire fraud.”

In the Spring of 2017, the Brillion Police Department was contacted by “Company A” located in Brillion, Wisconsin. “Company A” suspected that its employee, Neil A. Harkness, had submitted fraudulent hotel and meal expense receipts resulting in over $20,000 in loss to the company. Further investigation revealed that Harkness was also involved in the theft of the industrial adhesive Loctite while working as Company A’s sales representative in Ohio. Given the interstate nature of the alleged crimes, the FB I took over the investigation. Harkness was charged with multiple counts of wire fraud, interstate transportation of stolen property, and aggravated identity theft.  Pursuant to a plea agreement, Harkness pled guilty to one count of wire fraud. 

At the sentencing hearing, Chief Judge William C. Griesbach heard hours of testimony as to the amount of loss to Company A.  Ultimately, Judge Griesbach determined that Harkness had defrauded the company of $23,239 by submitting fraudulent hotel receipts for reimbursement. He further found that Harkness stole $194,000 worth of Loctite, which he then sold on Ebay and other internet resale sites for his own enrichment. 

Judge Griesbach called Harkness’ actions “serious” and noted that he was the “consummate conman.” He found a strong need to protect the public from Harkness and was convinced that without a term of imprisonment, the defendant would continue his fraudulent behavior. The judge rejected Harkness’ request for probation. He also ordered 3 years of Supervised Release and ordered Harkness to pay restitution to his former employer in the amount of $219,057.14.

This case was investigated by the Federal Bureau of Investigation and the Brillion Police Department. It was prosecuted by Assistant United States Attorney Daniel R. Humble.

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Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on April 1, 2019, Catalina Taboada (age 47), of Green Bay, Wisconsin, was sentenced in federal court to 21 months of imprisonment for willfully preparing false income tax returns in violation of Title 26, United States Code, Section 7206(2).  Taboada agreed to pay $571,800 in restitution to the Internal Revenue Service.

In 2009, Taboada started her own tax preparation business in Green Bay, Wisconsin, called Taboada & Associates.  According to the plea agreement, Taboada committed fraud at her business in several ways.  She fraudulently claimed child tax credits for clients whose children lived exclusively in Mexico.  She also claimed child tax credits for clients’ nieces, nephews, cousins or other distant relatives.  Taboada additionally claimed dependent exemptions for children who were not residents of the United States, Mexico or Canada.  Taboada admitted to understanding the qualifying rules for child tax credits and exemptions, but nevertheless said that she made the fraudulent claims to “stimulate the economy.”

“The honest women and men who pay their hard-earned money in taxes deserve to know that unscrupulous people who cheat on their taxes will be investigated, prosecuted, and incarcerated,” said U.S. Attorney Krueger.  “Together with the IRS-Criminal Investigation, the Department of Justice will continue to prosecute tax fraud aggressively.”    

Gabriel Grchan, IRS Criminal Investigation Special Agent in Charge said, “This sentencing demonstrates the commitment that IRS Criminal Investigation has in ferreting out fraudulent tax return preparers who play by their own rules and use a variety of methods to cheat the system.  It is important for taxpayers to know that fraudulent tax preparers will be brought to justice.”

This case was investigated by IRS Criminal Investigation. The case was prosecuted by Assistant United States Attorney Keith S. Alexander.

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United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on April 2, 2019, a federal grand jury issued an indictment against Scott E. Billington (age: 28) and Kody E. Gurske (age: 23) both of Oshkosh, Wisconsin.

The indictment alleges that Billington and Gurske possessed firearms in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A). The indictment also alleges that Gurske sold or disposed of a firearm to a person prohibited by law from possessing a firearm in violation of Title 18, United States Code, Section 922(d)(9), and that Billington possessed firearms after a conviction for a crime of domestic violence contrary to Title 18, United States Code, Section 922(g)(9).

If convicted of possessing a firearm in furtherance of a drug trafficking crime, each faces a mandatory 5 year prison sentence and up to a lifetime of imprisonment. Billington and Gurske’s other charges carry 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, and the Oshkosh 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 defendants are presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.    

###

United States Attorney Matthew D. Krueger for the Eastern District of Wisconsin announced that on April 2, 2019, a federal indictment was issued against Christopher D. Bania (age: 26) of Hobart, Wisconsin.

Bania was charged with possession with the intent to distribute controlled substances, maintaining a residence for the purpose of drug distribution, unlawful importation of controlled substances into the United States, and money laundering related to activity occurring between February of 2016 and continuing until his arrest on March 5, 2019.

According to court documents, Bania sold narcotics that included MDMA (“Ecstacy”), cocaine, DMT, ketamine, LSD, methamphetamine, heroin, MDA, cocaine base (“crack cocaine”), methaqualone, marijuana, and a variety of other controlled substances. To make his sales, Bania utilized dark web marketplaces, including Dream Market, Zion, Wall Street, Hansa, Trade Route, and Alpha Bay. Alpha Bay and Hansa were shut down by law enforcement in July of 2017.

The dark web is a part of the Internet that is unreachable by traditional search engines and web browsers. Websites on the dark web have complex web addresses generated by a computer algorithm and must be accessed using special software that is capable of connecting to “The Onion Router” network, or “TOR” for short. The TOR network is encrypted and routes internet traffic dynamically through a series of computers around the world, concealing the true Internet Protocol (IP) addresses of the computers accessing the network and thereby making internet use virtually anonymous. This perceived anonymity has led to a proliferation of criminal activity on dark web marketplaces, where users can find vendors, like Bania, offering illegal goods and services for sale.

“Drug traffickers should take note: the internet is not free from law enforcement,” said U.S. Attorney Krueger. “This case reflects an extraordinary collaboration between federal, state, and local agencies, which are committed to stopping all forms of drug trafficking in our communities.”

“Whether you are selling drugs on a street corner or selling them from a dark web vendor site, the Drug Enforcement Administration will continue investigating drug traffickers wherever they operate,” said Green Bay DEA Resident-Agent-in-Charge Christopher Hoyt. “This arrest proves that drug trafficking via the dark web is not immune from detection and prosecution.”

This case was a joint investigation of the U.S. Customs and Border Patrol, U.S. Postal Inspection Service, U.S. Drug Enforcement Administration, Wisconsin Department of Justice – Division of Criminal Investigation, the Brown County Drug Task Force, the Hobart/Lawrence Police Department, and the Oneida Police Department. It will be prosecuted by Assistant United States Attorneys Scott J. Campbell, Benjamin W. Proctor, and Daniel R. Humble.

If convicted on all charges, Bania faces up to 80 years in federal prison and over $4 million in fines.  

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.    

# # # #

The former chief financial officer (CFO) of Roadrunner Transportation Systems Inc. (Roadrunner), a publicly traded transportation and trucking company formerly headquartered in Cudahy, Wisconsin, was charged in a superseding indictment unsealed today for his alleged role in a complex securities and accounting fraud scheme that resulted in a loss of more than $245 million in shareholder value.  The superseding indictment also includes additional charges against two former Roadrunner finance executives for their roles in the scheme. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin, Regional Special Agent in Charge Andrea Kropf of the U.S. Department of Transportation Office of Inspector General (DOT-OIG) and Acting Special Agent in Charge Michelle Sutphin of the FBI’s Milwaukee Field Office made the announcement.

Peter R. Armbruster, 60, of Milwaukee, Wisconsin, was charged in a superseding indictment filed in the Eastern District of Wisconsin with various offenses.  Mark R. Wogsland, 53, and Bret S. Naggs, 52, both of Cedarburg, Wisconsin, and both of whom were charged in the initial indictment in this case filed in June 2018, were also charged in the superseding indictment with various offenses.  All three defendants were charged with one count of conspiracy to make false statements to a public company’s accountants and to falsify a public company’s books, records and accounts; two counts of false entries in a public company’s books, records and accounts; one count of conspiracy to commit securities fraud and wire fraud; two counts of securities fraud; and two counts of wire fraud.  Armbruster and Wogsland were charged with one additional count of securities fraud.  Armbruster is also charged with one count of bank fraud; two counts of false statements to a public company’s accountants; one count of false entries in a public company’s books, records, and accounts; and two counts of wire fraud.  Wogsland is also charged with two counts of false statements to a public company’s accountants and one count of insider trading.  Naggs is also charged with one count of false entries in a public company’s books, records and accounts.

Armbruster made his initial appearance this afternoon before U.S. Magistrate Judge David E. Jones of the Eastern District of Wisconsin and was released on bond.

“According to the charges, former CFO Peter Armbruster, and former executives Mark Wogsland and Bret Naggs, used sham accounting entries, misstated accounts, and other means to conceal millions of dollars of bad debts and other financial problems from Roadrunner’s shareholders, regulators, lenders, and the investing public,” said Assistant Attorney General Benczkowski.  “This pattern of deception allegedly caused investors to lose hundreds of millions of dollars.  The Department of Justice and our law enforcement partners are committed to protecting investors and safeguarding the integrity of our markets by holding culpable executives to account for securities and accounting fraud.”

“Our economic vitality depends upon shareholders having accurate information about publicly traded companies,” said U.S. Attorney Krueger.  “This case demonstrates the Department of Justice’s commitment to protecting the integrity of securities markets.”

“Securities fraud is not a victimless crime. In this case, shareholders lost over $240 million,” said FBI Acting Special Agent in Charge Sutphin. “These types of crimes remain a high priority for the FBI. Perpetrators who mislead investors by manipulating financial data to falsely inflate business performance will be held accountable and face justice for their crimes.”

“Rooting out individuals and companies involved in transportation-related corruption and corporate fraud schemes intent on providing false or misleading information to the Federal government remains a high priority for the U.S. Department of Transportation Office of Inspector General,” said DOT-OIG Regional Special Agent in Charge Kropf.  “Today’s superseding indictment reinforces that, working with our law enforcement and prosecutorial partners, these blatant acts of fraud and deception will not go unnoticed or be tolerated.”

Armbruster was Roadrunner’s CFO.  Wogsland and Naggs are both former controllers for Roadrunner’s Truckload operating segment, and Wogsland also served as director of accounting for Roadrunner’s Truckload operating segment.  The superseding indictment alleges that between 2013 and 2017, Armbruster, Wogsland, Naggs and their co-conspirators carried out a complex scheme to mislead Roadrunner’s shareholders, independent auditors, lenders, regulators and the investing public about Roadrunner’s financial condition.  Beginning as early as 2014, Armbruster, Wogsland, Naggs and their co-conspirators allegedly concealed millions of dollars in misstated accounts, including uncollectible debts and receivables and assets with little to no value.  As alleged in the superseding indictment, Armbruster, Wogsland, Naggs and their co-conspirators determined that most, if not all, of these accounts needed to be written off and even developed a plan to write off or “clean up” some of these misstated accounts in 2015, but did not write off the vast majority of the accounts.  According to the allegations, these misstated accounts remained on Roadrunner’s balance sheet until they resurfaced more than two years later after they had grown to between $25 and $50 million, but Armbruster nevertheless again certified that Roadrunner’s financial statements were accurate. 

The superseding indictment alleges that, in addition to concealing misstated accounts, Armbruster and his co-conspirators engaged in so-called “cushion” accounting whereby they selectively reduced liability accounts in order to create a “cushion” of funds that the conspirators used to fraudulently inflate Roadrunner’s financial performance in later quarters.  The superseding indictment also alleges that, as part of the scheme, Armbruster and his co-conspirators delayed recognizing expenses, including accruals for annual bonuses and expenses for bad debt, and otherwise misstated accounts, in order to fraudulently inflate Roadrunner’s financial performance.  The superseding indictment further alleges that Armbruster, Wogsland, Naggs and their co-conspirators concealed their scheme and misled Roadrunner’s shareholders, independent auditors, lenders, regulators and the investing public about Roadrunner’s financial condition. 

According to the superseding indictment, in January 2017, Roadrunner announced for the first time that it would be restating its previously reported financial results.  Three trading days following the announcement, the price of Roadrunner’s shares dropped from $11.74 to $7.54 per share, causing a loss in shareholder value of more than $160 million.  In early 2018, Roadrunner issued restated financial results for 2014 through the third quarter of 2016, acknowledging that it had identified material accounting errors resulting from material weaknesses and management override of internal controls.  Three trading days after announcing the restated financial results, Roadrunner’s share price further dropped from $7.14 to $4.90, causing an additional loss in shareholder value of more than $85 million.

An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

The DOT OIG’s Chicago Office and the FBI’s Milwaukee and Atlanta Field Offices are investigating the case.  Securities and Financial Fraud Unit Principal Deputy Chief Henry Van Dyck and Trial Attorneys Caitlin Cottingham and David Stier of the Criminal Division’s Fraud Section are prosecuting the case, with assistance from the U.S Attorney’s Office for the Eastern District of Wisconsin.  The Securities and Exchange Commission also provided assistance in this matter.

WASHINGTON – The former chief financial officer (CFO) of Roadrunner Transportation Systems Inc. (Roadrunner), a publicly traded transportation and trucking company formerly headquartered in Cudahy, Wisconsin, was charged in a superseding indictment unsealed today for his alleged role in a complex securities and accounting fraud scheme that resulted in a loss of more than $245 million in shareholder value.  The superseding indictment also includes additional charges against two former Roadrunner finance executives for their roles in the scheme. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin, Regional Special Agent in Charge Andrea Kropf of the U.S. Department of Transportation Office of Inspector General (DOT-OIG) and Acting Special Agent in Charge Michelle Sutphin of the FBI’s Milwaukee Field Office made the announcement.

Peter R. Armbruster, 60, of Milwaukee, Wisconsin, was charged in a superseding indictment filed in the Eastern District of Wisconsin with various offenses.  Mark R. Wogsland, 53, and Bret S. Naggs, 52, both of Cedarburg, Wisconsin and both of whom were charged in the initial indictment in this case filed in June 2018, were also charged in the superseding indictment with various offenses.  All three defendants were charged with one count of conspiracy to make false statements to a public company’s accountants and to falsify a public company’s books, records and accounts; two counts of false entries in a public company’s books, records and accounts; one count of conspiracy to commit securities fraud and wire fraud; two counts of securities fraud; and two counts of wire fraud.  Armbruster and Wogsland were charged with one additional count of securities fraud.  Armbruster is also charged with one count of bank fraud; two counts of false statements to a public company’s accountants; one count of false entries in a public company’s books, records, and accounts; and two counts of wire fraud.  Wogsland is also charged with two counts of false statements to a public company’s accountants and one count of insider trading.  Naggs is also charged with one count of false entries in a public company’s books, records and accounts.

Armbruster made his initial appearance this afternoon before U.S. Magistrate Judge David E. Jones of the Eastern District of Wisconsin and was released on bond.

“According to the charges, former CFO Peter Armbruster, and former executives Mark Wogsland and Bret Naggs, used sham accounting entries, misstated accounts, and other means to conceal millions of dollars of bad debts and other financial problems from Roadrunner’s shareholders, regulators, lenders, and the investing public,” said Assistant Attorney General Benczkowski.  “This pattern of deception allegedly caused investors to lose hundreds of millions of dollars.  The Department of Justice and our law enforcement partners are committed to protecting investors and safeguarding the integrity of our markets by holding culpable executives to account for securities and accounting fraud.”

“Our economic vitality depends upon shareholders having accurate information about publicly traded companies,” said U.S. Attorney Krueger.  “This case demonstrates the Department of Justice’s commitment to protecting the integrity of securities markets.”

“Securities fraud is not a victimless crime. In this case, shareholders lost over $240 million,” said FBI Acting Special Agent in Charge Sutphin. “These types of crimes remain a high priority for the FBI. Perpetrators who mislead investors by manipulating financial data to falsely inflate business performance will be held accountable and face justice for their crimes.”

“Rooting out individuals and companies involved in transportation-related corruption and corporate fraud schemes intent on providing false or misleading information to the Federal government remains a high priority for the U.S. Department of Transportation Office of Inspector General,” said DOT-OIG Regional Special Agent in Charge Kropf.  “Today’s superseding indictment reinforces that, working with our law enforcement and prosecutorial partners, these blatant acts of fraud and deception will not go unnoticed or be tolerated.”

Armbruster was Roadrunner’s CFO.  Wogsland and Naggs are both former controllers for Roadrunner’s Truckload operating segment, and Wogsland also served as director of accounting for Roadrunner’s Truckload operating segment.  The superseding indictment alleges that between 2013 and 2017, Armbruster, Wogsland, Naggs and their co-conspirators carried out a complex scheme to mislead Roadrunner’s shareholders, independent auditors, lenders, regulators and the investing public about Roadrunner’s financial condition.  Beginning as early as 2014, Armbruster, Wogsland, Naggs and their co-conspirators allegedly concealed millions of dollars in misstated accounts, including uncollectible debts and receivables and assets with little to no value.  As alleged in the superseding indictment, Armbruster, Wogsland, Naggs and their co-conspirators determined that most, if not all, of these accounts needed to be written off and even developed a plan to write off or “clean up” some of these misstated accounts in 2015, but did not write off the vast majority of the accounts.  According to the allegations, these misstated accounts remained on Roadrunner’s balance sheet until they resurfaced more than two years later after they had grown to between $25 and $50 million, but Armbruster nevertheless again certified that Roadrunner’s financial statements were accurate. 

The superseding indictment alleges that, in addition to concealing misstated accounts, Armbruster and his co-conspirators engaged in so-called “cushion” accounting whereby they selectively reduced liability accounts in order to create a “cushion” of funds that the conspirators used to fraudulently inflate Roadrunner’s financial performance in later quarters.  The superseding indictment also alleges that, as part of the scheme, Armbruster and his co-conspirators delayed recognizing expenses, including accruals for annual bonuses and expenses for bad debt, and otherwise misstated accounts, in order to fraudulently inflate Roadrunner’s financial performance.  The superseding indictment further alleges that Armbruster, Wogsland, Naggs and their co-conspirators concealed their scheme and misled Roadrunner’s shareholders, independent auditors, lenders, regulators and the investing public about Roadrunner’s financial condition. 

According to the superseding indictment, in January 2017, Roadrunner announced for the first time that it would be restating its previously reported financial results.  Three trading days following the announcement, the price of Roadrunner’s shares dropped from $11.74 to $7.54 per share, causing a loss in shareholder value of more than $160 million.  In early 2018, Roadrunner issued restated financial results for 2014 through the third quarter of 2016, acknowledging that it had identified material accounting errors resulting from material weaknesses and management override of internal controls.  Three trading days after announcing the restated financial results, Roadrunner’s share price further dropped from $7.14 to $4.90, causing an additional loss in shareholder value of more than $85 million.

An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

The DOT OIG’s Chicago Office and the FBI’s Milwaukee and Atlanta Field Offices are investigating the case.  Securities and Financial Fraud Unit Principal Deputy Chief Henry Van Dyck and Trial Attorneys Caitlin Cottingham and David Stier of the Criminal Division’s Fraud Section are prosecuting the case, with assistance from the U.S Attorney’s Office for the Eastern District of Wisconsin.  The Securities and Exchange Commission also provided assistance in this matter.

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United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that earlier today, a federal grand jury indictment was issued against Ey Lao (age: 34) and Lola Chang (age: 33) both of Sheboygan, Wisconsin.

The indictment alleges that the duo possessed in excess of 50 grams of actual (also known as “crystal”) methamphetamine with the intent to distribute the controlled substance in violation of Title 21, United States Code, Sections 841(a) and 841(b)(1)(A). If convicted of that charge, each faces a mandatory 10 year prison sentence and up to a lifetime of imprisonment. They could also be fined up to $10,000,000. Lao is additionally charged with being a felon in possession of a firearm and possessing a firearm in furtherance of a drug trafficking crime, contrary to Title 18, United States Code, Sections 922(g)(1) and 924(c)(1)(A). Lao faces up to 10 years imprisonment for possessing a firearm as a felon, and a mandatory 5 years imprisonment up to a lifetime of imprisonment for possessing the firearm in furtherance of drug distribution. 

This case was investigated by the Brown County Sheriff’s Office and the Brown County Drug Task Force. 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 defendants are presumed innocent and is entitled to a fair trial at which the government must prove them guilty beyond a reasonable doubt.    

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United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that earlier today, a federal grand jury returned an indictment against Kyle D. Sanderson (age: 19) of Kewaunee, Wisconsin.

According to the indictment, Sanderson distributed and possessed images of child pornography including sexually explicit images of children and toddlers.

Sanderson faces two counts of distribution of child pornography, contrary to Title 18, United States Code, Section 2252A(a)(2)(A), and an additional count of possession of child pornography, contrary to Title 18, United States Code, Section 2252A(5)(b). As to each of the distribution counts, he faces a mandatory minimum sentence of 5 years and up to 20 years of incarceration in federal prison.

This case was investigated by the Wisconsin Department of Justice’s ICAC Task Force. It will be 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. 

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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Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on March 26, 2019, a federal grand jury returned a three-count indictment against two people who allegedly distributed controlled substances on the Menominee Indian Reservation and led to the death of a man, and another who deleted messages between one of the defendants and the deceased. The indictment named Alissa M. Waupoose (Age: 28), Ronald J. Frechette (Age: 39), and Kelly Nacotee (Age: 41), all of whom are enrolled members of the Menominee Indian Tribe of Wisconsin. The three all reside in Keshena, which is on the Menominee Indian Reservation in Wisconsin.

Count One of the indictment charged Waupoose and Frechette with Distribution of Controlled Substance Analogue Resulting Death in violation of 21 U.S.C. §§ 813 and 841. Waupoose and Frechette face a mandatory minimum of 20 years, and up to life, in prison; up to a $5 million fine; and from 3 years to life on supervised release. The charge also carries a $100 special assessment.

Count Two of the indictment charged Waupoose and Frechette with Second-Degree Murder in violation of 18 U.S.C. §§ 1111, 1153, and 2. Waupoose and Frechette each face a maximum sentence of life in prison, up to a $250,000 fine, and up to 5 years of supervised release. The charge also carries a $100 special assessment.

Count Three of the indictment charged Kelly Nacotee with Misprision of a Felony in violation of 18 U.S.C. § 4. Nacotee faces a maximum sentence of 3 years in prison, up to a $250,000 fine, up to 3 years on supervised release, and a $100 special assessment.

According to the indictment, on or about September 13, 2016, Waupoose and Frechette killed a man by distributing a chemical analogue of fentanyl to him. Nacotee deleted messages between Frechette and the deceased after learning of his overdose.           

The case was investigated by the Menominee Tribal Police Department, Menominee County Sheriff’s Office, and the Federal Bureau of Investigation, with assistance from the U.S. Drug Enforcement Administration’s Diversion Control Division and the Wisconsin State Crime Laboratory. The case will be prosecuted by Assistant United States Attorney Andrew J. Maier.

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 additional information contact: Public Information Officer Kenneth Gales at 414 297-1700   

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United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced today that Acacia Mental Health Clinic, LLC (“Acacia”) and its owner, Abraham Freund, have agreed to pay approximately $4.1 million in cash and other compensation to the United States and the State of Wisconsin.  The payments will be made to settle the government’s lawsuit alleging that Acacia and Freund violated the False Claims Act by submitting thousands of false claims to Medicaid for urine drug tests and telemedicine services.  Acacia and Abraham Freund also agreed to 20-year suspensions from participation in federal healthcare programs such as Medicare and Medicaid; Abraham Freund’s son, Isaac Freund, agreed to a 5-year suspension. 

Acacia operated a mental health and drug dependency clinic in Milwaukee, Wisconsin, until it ceased operations following the government’s filing of its lawsuit.  Abraham Freund was the owner and chief executive of Acacia.  Isaac Freund was involved in the operations of Acacia.  The government alleged that Acacia, at Abraham Freund’s direction, submitted thousands of false claims to Medicaid in three fraudulent schemes:

• From January 1, 2011, through October 31, 2012, Acacia and Abraham Freund lied to Medicaid about the type of urine drug screens performed at Acacia in order to obtain additional Medicaid reimbursement to which they were not entitled.  Acacia, at Abraham Freund’s direction, purchased inexpensive, simple “cup” tests for approximately $5 per cup, but then billed Medicaid as if Acacia had performed sophisticated tests that required laboratory equipment that Acacia did not possess.  Acacia thus received over $200 per test instead of the $20 to which it was actually entitled. 
   
• From November 1, 2012, through December 31, 2014, Acacia, at Abraham Freund’s direction and with Isaac’s involvement, performed medically unnecessary and duplicative urine drug tests for its Medicaid patients to obtain increased reimbursement.  During this period, Abraham Freund required nearly every Medicaid patient to receive a cup test as well additional tests performed on multiple laboratory analyzers.  Acacia and Abraham Freund knew that these duplicative tests served no medical purpose and billed Medicaid for these tests solely to obtain additional Medicaid money.

• From June 1, 2011, through December 31, 2014, Acacia, at Freund’s direction, submitted claims to Medicaid for telemedicine services rendered to Acacia’s patients by psychiatrists located outside the United States, in violation of Medicaid regulations.  

“As a Medicaid provider purporting to treat patients suffering from mental health and drug dependency issues, Acacia saw some of the neediest patients in our state.  Rather than treat them in good faith, Acacia and Abraham Freund exploited these patients as a means to bill Medicaid for unnecessary services to increase revenue,” stated United States Attorney Krueger.  “This settlement will help make Medicaid whole, while also ensuring that Acacia, Abraham Freund, and Isaac Freund cannot submit more false claims to any federal healthcare program in the future.”

“Medicaid providers cannot misrepresent the services they provide in order to increase their billings,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General – Chicago Region (“HHS OIG”).  “This settlement includes voluntary exclusions of Acacia, Abraham Freund, and Isaac Freund to ensure that they do not bill federal healthcare programs for misrepresented and unnecessary services in the future.  The OIG will continue to work with our federal, state and local partners to protect the health and safety of Medicaid patients and vital taxpayer dollars.”

“The Federal Bureau of Investigation prioritizes the protection of taxpayers and will continue to hold accountable healthcare providers who misuse the Medicaid program,” said FBI Acting Special Agent-in-Charge Michelle Sutphin. “This multi-million dollar settlement and the exclusions of Acacia, Abraham Freund, and Isaac Freund from future participation in Medicaid show that the FBI will work to remedy and prevent Medicaid fraud.” 

The government’s lawsuit followed a whistleblower lawsuit filed by Rose Presser under the qui tam provisions of the False Claims Act.  Consequently, Ms. Presser will recover a share of the settlement amount.   

Assistant United States Attorney Michael Carter represented the government in this matter.  The FBI, HHS OIG, and the Wisconsin Department of Justice Medicaid Fraud Control & Elder Abuse Unit assisted in the investigation.  The settlement agreement states allegations only; the defendants do not admit liability for the allegations. 

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United States Attorney Matthew D. Krueger announced that Karen Tompkins was recently sentenced in federal court in Milwaukee for defrauding and conspiring to defraud the United States by preparing and filing false tax returns. The tax returns fraudulently claimed tax refunds to which the filers were not entitled, in violation of Title 18, United States Code, Sections 2 and 371, and Title 26, United States Code, Section 7206(2).

United States District Judge Pamela Pepper sentenced Tompkins, of Milwaukee, to one year and one day in prison. Tompkins was also ordered to pay $384,528 in restitution.

According to the plea agreement, Tompkins and her coconspirators were employed as tax return preparers at a branch of Liberty Tax Services ("LTS") located at 3929 N. Humboldt Boulevard in Milwaukee, Wisconsin. As tax return preparers, the conspirators aided, assisted, counseled, and advised in the preparation and filing of federal income tax returns. Tompkins was the office manager of that branch, and she and her coconspirators artificially inflated tax filer’s claimed income, typically by inventing Schedule C business income for non-existent business, such as "hair braiding" or "dancing" businesses. They also claimed false W-2 income and Additional Child Tax Credits to which the filers were not entitled. This caused the IRS to pay out larger tax refunds than it otherwise would have. In return for these inflated tax refunds, Tompkins and her coconspirators received kickbacks

This case was investigated by the IRS Criminal Investigation division. The case was prosecuted by Assistant United States Attorney Benjamin Taibleson.  

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A Wisconsin man pleaded guilty today to producing and possessing child pornography in 2015 and engaging in illicit sexual conduct in a foreign place between 2014 and 2015, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin.

Jeffrey H. Ernisse, 61, pleaded guilty to two counts of producing child pornography, one count of engaging in illicit sexual conduct with a minor in the Philippines, and one count of possessing child pornography before U.S. District Court Judge Lynn S. Adelman.  Sentencing is set for July 11, 2019.

According to admissions made in connection with his guilty plea, while law enforcement was investigating Ernisse for production of child pornography in Wisconsin, they discovered evidence of additional child pornography production from the Philippines on Ernisse’s digital devices.  While traveling in the Philippines, in March 2015 and then again, in April 2015, Ernisse produced child pornography with a prepubescent minor.  Between June 2014 and April 2015, he engaged in illicit sexual conduct with a minor in the Philippines.  And in December 2015, Ernisse possessed child pornography in the Eastern District of Wisconsin.      

U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) is investigating this case with the cooperation of the Sheboygan, Wisconsin, Police Department.  Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Megan J. Paulson of the Eastern District of Wisconsin are prosecuting the case.

This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and 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.justice.gov/psc.

WASHINGTON – A Wisconsin man pleaded guilty today to producing and possessing child pornography in 2015 and engaging in illicit sexual conduct in a foreign place between 2014 and 2015, announced Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin.

Jeffrey H. Ernisse, 61, pleaded guilty to two counts of producing child pornography, one count of engaging in illicit sexual conduct with a minor in the Philippines, and one count of possessing child pornography before U.S. District Court Judge Lynn S. Adelman.  Sentencing is set for July 11, 2019.

According to admissions made in connection with his guilty plea, while law enforcement was investigating Ernisse for production of child pornography in Wisconsin, they discovered evidence of additional child pornography production from the Philippines on Ernisse’s digital devices.  While traveling in the Philippines, in March 2015 and then again, in April 2015, Ernisse produced child pornography with a prepubescent minor.  Between June 2014 and April 2015, he engaged in illicit sexual conduct with a minor in the Philippines.  And in December 2015, Ernisse possessed child pornography in the Eastern District of Wisconsin.          

U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) is investigating this case with the cooperation of the Sheboygan, Wisconsin, Police Department.  Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Megan J. Paulson of the Eastern District of Wisconsin are prosecuting the case.

This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and 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.justice.gov/psc.

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Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on March 5, 2019, a federal grand jury returned a two-count superseding indictment against two men and a woman allegedly involved in a burglary and unlawful possession of a firearm on the Menominee Indian Reservation. The indictment named:

Name

Age

Residence

Brett L. O’Kimosh, Jr.

41

Shawano, WI

Mary Ann Dodge

32

Taycheedah, WI

Anthony J. Boyd

22

Waupun, WI

Count One of the indictment charged all three defendants with Burglary in violation of 18 U.S.C. §§ 1153 and 2, and Wisconsin Statutes § 943.10. O’Kimosh and Boyd are also charged in Count Two with Unlawful Possession of a Firearm, in violation of 18 U.S.C. § 922(g). If convicted of Count One, each defendant faces a maximum of 90 months in prison, up to a $25,000 fine, and up to 66 months of supervised release. If convicted of Count Two, each defendant faces a maximum of 10 years’ imprisonment, up to a $250,000 fine, and up to 3 years of supervised release.

According to the indictment, on or about May 16, 2018, the defendants entered a building or dwelling in Keshena, which is on the Menominee Indian Reservation, without consent from the homeowner and with the intent to steal. The same day, O’Kimosh and Boyd allegedly possessed a .22 rifle. O’Kimosh and Boyd were prohibited from possession of firearms at the time of the incident.

The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case. It is being prosecuted by Assistant United States Attorney Andrew J. Maier.

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 his guilt beyond a reasonable doubt.

###

U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that three defendants were arrested in Buenos Aires, Argentina yesterday.  These defendants are wanted in the United States to face charges in the Eastern District of Wisconsin for operating numerous illegal online pharmacies and conspiring to import and distribute illegal controlled substances, including Oxycodone, in the United States.  The three defendants and two additional defendants were charged on October 10, 2018, in the Eastern District of Wisconsin by a superseding indictment, which had remained sealed until their arrest.

Conrado Adolfo Frenzel, aka “Otto” (age: 50), Jorge Alejandro Paura, aka “Larry” (age: 51), Santiago Videmato, aka “James Duggan” (age: 35), Luciano Brunetti, aka “Biff Tannen” (age: 30), and Lucas Daniel Paura, aka “Carl Carlson” (age: 31), all from Buenos Aires, Argentina, were charged with conspiracy to distribute controlled substances, including Oxycodone; illegally distributing controlled substances using the internet; illegal use of the internet to advertise the sale of controlled substances; conspiracy to import controlled substances, including Oxycodone; and multiple counts of illegal importation and attempted importation of controlled substances from Romania and another country to the Eastern District of Wisconsin.  The charges of conspiracy, distribution, and importation each carry a maximum penalty of 20 years in prison and a $1 million fine.  The superseding indictment also includes a forfeiture allegation that identifies 28 residential real properties located in Florida. 

Argentine authorities arrested Frenzel, Jorge Paura, and Videmato in Buenos Aires, on March 12, 2019, pursuant to requests for their provisional arrest from the United States.  Authorities are pursuing the capture and arrest of Brunetti and Lucas Paura.  The United States will seek to extradite these defendants to face the charges in the Eastern District of Wisconsin. 

“Combatting the opioid crisis and the illegal flow of prescription drugs requires international cooperation,” said U.S. Attorney Krueger.  “We commend the outstanding work of the Argentine law enforcement agencies whose partnership with U.S. authorities made these arrests possible.” 

“The Drug Enforcement Administration (DEA) is committed to fight the opioid epidemic through aggressive domestic and international investigations,” said DEA Milwaukee District Office Special Agent in Charge Paul E. Maxwell, Jr.  “Today’s arrests reflect the resolve and partnership of U.S. and Argentine law enforcement agencies to combat the transnational criminal activity which is fueling the opioid crisis.”

“IRS Criminal Investigation (CI) is committed to using our forensic accounting skills to assist in complex fraud and financial schemes,” said IRS-CI Special Agent in Charge Gabriel Grchan.  “We are proud to work with our law enforcement partners to help investigate individuals, and to help put a stop to this and other types of illegal activity.”

“The indictments in this investigation are a direct result of the relentless efforts of a group of aggressive law enforcement officers from multiple agencies determined to keep the American public safe from illegal on-line ‘pharmacies,’” said Inspector in Charge Craig Goldberg of the U.S. Postal Inspection Service Chicago Division.  “The Postal Inspection Service will never stop fighting to keep consumers safe from these types of crimes and the devastating and sometimes deadly effects of the drugs purchased from these illegal pharmacies. International borders will not hide these criminals from federal law enforcement; they will be brought to justice no matter where they run their criminal enterprise.”

The charges and arrests resulted from a multi-year investigation by the U.S. Department of Justice’s Office of International Affairs, the U.S. Attorney’s Office, DEA, IRS-CI, the U.S. Secret Service and the U.S. Postal Inspection Service.  United States authorities worked closely with Argentine law enforcement authorities, including the Argentina Federal Intelligence Agency (AFI), City of Buenos Aires Police Department, Argentina Attorney General’s Office-PROCUNAR, Ministry of Security for the Nation of Argentina and Ministry of Justice for the Nation of Argentina. The following federal agencies also participated in the operation: the FBI, U.S. Department of State’s Diplomatic Security Service, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.   

The case is being prosecuted by Assistant U.S. Attorneys Laura S. Kwaterski and Rebecca Taibleson of the Eastern District of Wisconsin.

The public is cautioned that an indictment is merely a charge and the defendants are presumed innocent until and unless proven guilty.

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Attorney General William P. Barr and United States Attorney Matthew D. Krueger today announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly.

In the Eastern District of Wisconsin, Milwaukee resident Chris Kubiak, former financial advisor for Freedom Investors Corp, and Calton & Associates, Inc., was indicted on charges of elder fraud January 15, 2019. The indictment, which charges seven counts of wire and mail fraud, alleges a scheme wherein Kubiak arranged to make withdrawals or to liquidate the investment accounts of his elderly clients. The indictment identifies a total of six clients, from whom he is alleged to have wrongfully appropriated approximately $370,000 over a five year period.

“Crimes against the elderly target some of the most vulnerable people in our society,” Attorney General William P. Barr said. “But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors.”

“Schemes that target the elderly are too common and can cause devastating harm,” said U.S. Attorney Krueger. “Today’s announcement makes clear that federal, state, and local law enforcement partners are committed to bringing justice to criminals who take advantage of our seniors.” 

The Department took action in numerous federal districts across the country, through the filing of criminal or civil cases or through consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars.

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

Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. 

A fact-sheet with technical-support fraud case information can be found here.

A fact-sheet with cases on mass mailing fraud can be found here.

A fact-sheet with examples of a few elder fraud cases involving extradition in which the Office of International Affairs played a substantial role can be found here.

# # #

Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that Alma Ramirez (age 40) was sentenced today in federal court in Green Bay to four years in prison, to be followed by three years of supervised release, and ordered to pay $301,370 in restitution. 

Ms. Ramirez, who previously lived in Green Bay and now lives in Alabama, pleaded guilty to wire fraud, assisting in the filing of false tax returns, and aggravated identity theft. As detailed in Ms. Ramirez’s plea agreement, during the period from March 2013 through May 2016, Ramirez, and others working with her and at her direction, prepared and filed more than 60 false federal income tax returns in the names of various individuals, thereby fraudulently seeking more than $300,000 in federal income tax refunds. These tax returns included false information concerning the taxpayer’s employment, wages, the amount of federal taxes that had been withheld from those wages, dependents, and the taxpayer’s eligibility for various tax credits. Ramirez also committed identity theft by illegally using the names and social security numbers of unwitting individuals to commit her fraud offense.

In sentencing Ramirez, Judge William C. Griesbach, Chief U.S. District Judge, emphasized the seriousness of Ramirez’s crimes, the fact that Ramirez had recruited others, and the need to deter others who might be tempted to commit similar crimes.

This matter was investigated by the criminal investigation division of the Internal Revenue Service. The prosecution was handled by Assistant United States Attorney Matthew L. Jacobs.

#    #    #   

 

Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that on March 1, 2019, Lance Bruette, (age 36) of Minocqua was sentenced in federal court to 48 months in prison for conspiring to distribute oxycodone.  Bruette had previously pleaded guilty to this charge.    

The investigation revealed that from 2013 through 2016, Bruette and his co-conspirators traveled from Oneida and Vilas Counties to Milwaukee to pick up at least 289,140 mg tablets of oxycodone and then sell them in northern Wisconsin.  The investigation showed that Bruette was a leader in this conspiracy and directed co-conspirators when to pick up oxycodone and how much oxycodone to pick up.  He also recruited accomplices to sell in particular geographic areas.       

While sentencing Bruette, United States District Court Judge Lynn Adelman emphasized that the offense was particularly serious because the opioid epidemic has had such a dramatic impact in small, rural communities in Wisconsin, such as those in Oneida County and Vilas County.  Bruette was the seventh and final defendant to be sentenced for conspiring to distribute oxycodone in this case.  See United States v. Orvin Kay, Case No. 17-CR-16.

“The defendant’s greed led him to exploit countless individuals’ addictions to opioids,” said U.S. Attorney Krueger.  “This case shows that trafficking in pills is no less serious than trafficking in illicit opioids like heroin.  We commend the outstanding collaboration by federal, state, and local law enforcement partners to shut down this illegal flow of opioids.”

The following agencies participated in the investigation: the Oneida County Sheriff’s Office; the Vilas County Sheriff’s Office; the Wisconsin Department of Justice—Division of Criminal Investigation; the Drug Enforcement Administration – Milwaukee (Tactical Diversion Squad); the Minocqua Police Department; the Rhinelander Police Department; and the Northcentral Drug Enforcement Group (“NORDEG”).  The case was prosecuted by Assistant United States Attorney Zachary J. Corey. 

#    #    #    #

United States Attorney Matthew D. Krueger announced today that the U.S. Attorney’s Office for the Eastern District of Wisconsin collected $10,164,702.99 in criminal and civil actions in Fiscal Year 2018. Of this amount, $5,209,589.92 was collected in criminal actions and $4,955,113.07 was collected in civil actions.  

Additionally, the Eastern District of Wisconsin worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $10,418,733.97 in cases pursued jointly by these offices. Of this amount, $14,075.03 was collected in criminal actions and $10,404,658.94 was collected in civil actions.                  

As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending September 30, 2018. The $14,839,821,650 in collections in FY 2018 represents is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.

“The men and women of the U.S. Attorneys’ Offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys. 

“Protecting taxpayers’ funds and making crime victims whole are among our top priorities,” said U.S. Attorney Krueger. “We are committed to recovering any funds owed to the United States and ensuring that wrongdoers do not keep their ill-gotten gains.”  

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws.  In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.

#   #   #   #

Chadwick Grubbs, 33, was sentenced yesterday by United States District Judge Pamela Pepper to 36 months in prison for charges related to threatening letters he wrote on three separate dates in May 2018 to the Harry and Rose Samson Family Jewish Community Center (JCC) in Whitefish Bay, Wisconsin. Assistant Attorney General Eric Dreiband for the Civil Rights Division, U.S. Attorney Matthew D. Krueger for the Eastern District of Wisconsin, and Acting Special Agent in Charge Michelle Sutphin of the FBI’s Milwaukee Division made the announcement.

“All people have the right to practice their religious beliefs without fear of threats or violence,” said Assistant Attorney General Eric Dreiband. “Mr. Grubbs’ anti-Semitic actions have no place in our society today and the Department of Justice will continue to prosecute anyone who threatens to harm a community because of their faith.”

“The Department of Justice’s commitment to civil rights includes protecting faith communities from threats of violence,” said United States Attorney Matthew D. Krueger for the Eastern District of Wisconsin. “This prosecution should send a clear message that hate crimes like Mr. Grubb’s vile threats will not be tolerated.”

“It is every American’s right to exercise the religion of their choice. The FBI will vigorously pursue those who target faith based communities with threats of violence and intimidation, violators will face justice,” said Acting Special Agent in Charge Michelle Sutphin of the FBI’s Milwaukee Division.

Grubbs pleaded guilty in November 2018 to two counts of mailing threatening communications and one count of threatening to injure and destroy property by fire and an explosive.  Information presented during the plea hearing established that Grubbs sent three letters to the JCC in which he threatened to use firearms to cause “maximum carnage” and explosives to destroy the JCC.  Grubbs used numbers and symbols associated with white supremacist ideology in the letters.

The FBI led the investigation. Assistant United States Attorney Gregory Haanstad of the U.S. Attorney’s Office for the Eastern District of Wisconsin and Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division prosecuted this case.

For more information about the Department of Justice’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.

United States Attorney Matthew D. Krueger has announced Chadwick Grubbs, 33 was sentenced today by United States District Judge Pamela Pepper to 36 months in prison for charges related to threatening letters he wrote on three separate dates in May 2018 to the Harry and Rose Samson Family Jewish Community Center (JCC) in Whitefish Bay, Wisconsin. Assistant Attorney General Eric Dreiband for the Civil Rights Division, U.S. Attorney Matthew D. Krueger for the Eastern District of Wisconsin, and Acting Special Agent in Charge Michelle Sutphin of the FBI’s Milwaukee Division made the announcement.

“All people have the right to practice their religious beliefs without fear of threats or violence,” said Assistant Attorney General Eric Dreiband. “Mr. Grubbs’ anti-Semitic actions have no place in our society today and the Department of Justice will continue to prosecute anyone who threatens to harm a community because of their faith.”

“The Department of Justice’s commitment to civil rights includes protecting faith communities from threats of violence,” said United States Attorney Matthew D. Krueger for the Eastern District of Wisconsin. “This prosecution should send a clear message that hate crimes like Mr. Grubb’s vile threats will not be tolerated.”

“It is every American’s right to exercise the religion of their choice. The FBI will vigorously pursue those who target faith based communities with threats of violence and intimidation, violators will face justice,” said Acting Special Agent in Charge Michelle Sutphin of the FBI’s Milwaukee Division.

Grubbs pleaded guilty in November 2018 to two counts of mailing threatening communications and one count of threatening to injure and destroy property by fire and an explosive.  Information presented during the plea hearing established that Grubbs sent three letters to the JCC in which he threatened to use firearms to cause “maximum carnage” and explosives to destroy the JCC.  Grubbs used numbers and symbols associated with white supremacist ideology in the letters.

The FBI led the investigation. Assistant United States Attorney Gregory Haanstad of the U.S. Attorney’s Office for the Eastern District of Wisconsin and Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division prosecuted this case.

For more information about the Department of Justice’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.

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United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced today that a federal indictment was returned against Yia Thao (age: 31) and Yaj Vang (age: 29) both of Appleton, Wisconsin, and Nalee Xiong (age: 36) of Neenah, Wisconsin.

The indictment alleges that the trio conspired to possess in excess of 50 grams of actual (also known as “crystal”) methamphetamine with the intent to distribute. If convicted, each faces a mandatory 10 year prison sentence and up to a lifetime of imprisonment. They could also be fined up to $10,000,000. 

This case was investigated by the U.S. Postal Inspection Service and the Lake Winnebago Area Metropolitan Enforcement Group (LWAM). The case will be prosecuted by Assistant United States Attorney Daniel R. Humble.

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, 414-297-1700

United States Attorney Matthew D. Krueger has announced that last Friday, United States District Judge Lynn Adelman sentenced Lamont Walker to 10 years in prison followed by three years of supervised release after Walker pled guilty to attempting to rob a Walgreens store and brandishing a gun during the attempted robbery. 

At his plea hearing, Walker admitted that he attempted to rob the Walgreens store located at 2826 North Dr. Martin Luther King Drive, Milwaukee, on August 22, 2018.  He further admitted that he brandished a loaded 9mm handgun after entering the Walgreens. Walker fled the store without having obtained any money or other property and was involved in a foot chase with police officers, during which he threw the handgun onto the roof of Pete’s Fruit Market. Officers recovered the firearm. Walker was on state supervision at the time he committed the attempted robbery and faces revocation. 

Walker’s sentence includes a 7-year mandatory minimum sentence on the charge of brandishing a firearm during a crime of violence. This sentence must run consecutive to any other sentence, including a state revocation sentence.     

This case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force and the Milwaukee Police Department. The case was prosecuted by Assistant United States Attorney Margaret B. Honrath.

 

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For additional information contact:

Public Information Officer Kenneth Gales (414) 297-1700

Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that Randy D. Usow (age 63) of Mequon, Wisconsin, was sentenced in federal court for stealing more than $800,000 from the federal government by filing false tax returns in the name of one of his clients and for using the identity of that client to help commit his theft.

U.S. District Judge Pamela Pepper sentenced Usow to 30 months in prison, to be followed by three years of supervised release, and ordered him to pay more than $600,000 in restitution.

Usow, who operated an accounting business in Mequon known as Randy Usow Accounting, Inc., prepared and filed state and federal tax returns for third parties. The charges against Usow are based on his preparing and filing of false tax returns for one of his clients and his wife in which Usow fraudulently claimed refunds the clients were not entitled to and then diverting the fraudulent refunds to himself. 

To conceal his activity, Usow provided clients with a different version of the tax returns that reflected the correct refund to which the clients were entitled. 

As part of his scheme, Usow opened a bank account in the name of his client without the client’s knowledge or consent. Usow then directed the IRS to send a fraudulent refund to this account. After receiving the refund, Usow transferred a portion of the refund to a second bank account he had opened in the name “US Government, LLC.”  Usow then used this account to pay the clients the smaller refund the clients were expecting.

During the period from April 2011 through May 2015, Usow filed at least four false federal income tax returns, fraudulently seeking more than $800,000 in federal income tax refunds and diverted those funds to himself.

This matter was investigated by the Criminal investigation Division of the Internal Revenue and was prosecuted by Assistant United States Attorney Matthew L. Jacobs.

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Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on February 20, 2018, a federal grand jury returned a one-count indictment against five people who allegedly conspired to cut and remove timber from tribal forestlands on the Menominee Indian Reservation in order to sell them to saw mills outside the reservation without consent from the tribe. The indictment named:

Name

Age

Residence

Melvin T. Caldwell,Jr.

43

Neopit

Arthur P. “Herman” Fish

49

Keshena

Chauncey J. Webster, Jr

49

Neopit

Derrin B. Webster

30

Neopit

Dugan R. Webster

41

Shawano

 

Caldwell, Fish, Chauncey Webster, and Derrin Webster are enrolled members of the Menominee Indian Tribe of Wisconsin. Dugan Webster is an enrolled member of the Oneida Nation of Wisconsin.

The indictment charges the defendants with Conspiracy in violation of 18 U.S.C. § 371. If convicted, the defendants each face up to 5 years in prison, up to a $250,000 fine, and up to 3 years on supervised release. The charge also carries a $100 special assessment.

According to the indictment, the defendants logged timber from designated areas on the Menominee Indian Reservation. On at least 100 occasions, the defendants and others cut down extra trees beyond those they were authorized to log. Fish then allegedly transported the extra timber to sawmills outside the boundaries of the reservation. Dugan and Derrin Webster allegedly received payments from the mills for the timber, which the defendants divided amongst themselves. The sawmills paid Dugan and Derrin Webster approximately $400,000 between January 2012 and September 2018 for the timber the defendants and others removed from the reservation without permission.           

The case was investigated by the Menominee Tribal Police Department, Menominee Conservation Department, United States Forest Service, and Federal Bureau of Investigation. The case will be prosecuted by Assistant United States Attorney Andrew J. Maier.

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 guilt beyond a reasonable doubt.

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WASHINGTON – A previously convicted child pornography offender was sentenced today to 96 months in prison followed by seven years of supervised release for distributing child pornography.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew D. Krueger for the Eastern District of Wisconsin and Special Agent in Charge R. Justin Tolomeo of the FBI’s Milwaukee Field Office, made the announcement.   

Christopher Eklund, 47, formerly an English language teacher in China, pleaded guilty before U.S. District Judge Lynn Adelman of the Eastern District of Wisconsin on Nov. 2, 2018 to one count of distribution of child pornography. 

According to admissions made in connection with his guilty plea, between approximately Dec. 2014 and July 2015, Eklund advertised and shared thousands of images of child pornography, which was discovered during an undercover investigation into the distribution of child pornography over an internet file-sharing network.  Eklund also used the network to write detailed, sexualized blog posts discussing his affinity for child pornography.  FBI agents in Milwaukee reviewed these postings and downloaded several child pornography files that Eklund was sharing over the network. 

During the investigation, the FBI learned that Eklund was a U.S. citizen who was living in Wuhan, China, teaching English classes to children. The FBI then provided investigative information to Chinese authorities.  In Oct. 2016, after conducting their own investigation, Chinese authorities charged and convicted Eklund for child pornography offenses.  In May of 2018, after Eklund was released from prison in China, he was deported to the United States for prosecution. 

The case was investigated by the FBI Milwaukee Crimes Against Children Task Force, including participants from the Milwaukee Police Department, West Allis Police Department, Sheboygan County Sheriff’s Department, and Milwaukee County Sherriff Department, with the cooperation of the Chinese Ministry of Public Security and Public Security Bureau. 

The case is being prosecuted by Trial Attorney Ralph Paradiso of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Benjamin W. Proctor of the Eastern District of Wisconsin.

This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and 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.justice.gov/psc.

 

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Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on February 20, 2019, Anthony C. Moore (age: 33), of Manitowoc, Wisconsin, was sentenced for violating Title 18, United States Code, Section 924(c). Moore previously pled guilty to possession of a firearm in furtherance of a drug crime.

According to court documents, a Manitowoc County Sheriff’s Deputy assigned to enforce a court ordered eviction of Moore from his residence observed drug remnants and drug paraphernalia inside the apartment. That deputy contacted a detective assigned to the Manitowoc Metro Drug Unit who obtained a search warrant for the residence.  A search turned up small amounts of methamphetamine and marijuana, as well as a .380 Taurus handgun with a loaded magazine. Further investigation revealed that Moore had engaged in drug dealing at the residence.   

While pronouncing Moore’s sentence, Chief District Judge William C. Griesbach noted the inherent danger that exists when those who sell controlled substances possess firearms. He further stated his belief that a 60-month prison sentence was just punishment for Moore who has not previously been to prison. Following his 5-year prison sentence, Moore will serve 3 years on federal supervised release.           

The case was investigated by the Manitowoc County Sheriff’s Office and the Manitowoc County Metro Drug Unit.  It was prosecuted by Assistant United States Attorney Daniel R. Humble.

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A previously convicted child pornography offender was sentenced today to 96 months in prison followed by seven years of supervised release for distributing child pornography.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew D. Krueger for the Eastern District of Wisconsin and Special Agent in Charge R. Justin Tolomeo of the FBI’s Milwaukee Field Office, made the announcement.   

Christopher Eklund, 47, formerly an English language teacher in China, pleaded guilty before U.S. District Judge Lynn Adelman of the Eastern District of Wisconsin on Nov. 2, 2018 to one count of distribution of child pornography. 

According to admissions made in connection with his guilty plea, between approximately Dec. 2014 and July 2015, Eklund advertised and shared thousands of images of child pornography, which was discovered during an undercover investigation into the distribution of child pornography over an internet file-sharing network.  Eklund also used the network to write detailed, sexualized blog posts discussing his affinity for child pornography.  FBI agents in Milwaukee reviewed these postings and downloaded several child pornography files that Eklund was sharing over the network. 

During the investigation, the FBI learned that Eklund was a U.S. citizen who was living in Wuhan, China, teaching English classes to children. The FBI then provided investigative information to Chinese authorities.  In Oct. 2016, after conducting their own investigation, Chinese authorities charged and convicted Eklund for child pornography offenses.  In May of 2018, after Eklund was released from prison in China, he was deported to the United States for prosecution. 

The case was investigated by the FBI Milwaukee Crimes Against Children Task Force, including participants from the Milwaukee Police Department, West Allis Police Department, Sheboygan County Sheriff’s Department, and Milwaukee County Sherriff Department, with the cooperation of the Chinese Ministry of Public Security and Public Security Bureau. 

The case is being prosecuted by Trial Attorney Ralph Paradiso of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Benjamin W. Proctor of the Eastern District of Wisconsin.

This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and 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.justice.gov/psc.

Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on February 8, 2019, Susan Wenszell (57) of Milwaukee, Wisconsin, pleaded guilty to one count of failing to account for and pay federal payroll taxes to the Internal Revenue Service (“IRS”), in violation of Title 26, United States Code, Section 7202. 

According to documents filed in court, Wenszell was the president and owner of J. Wenszell Enterprises Inc., an outdoor electrical construction company formed by Wenszell’s husband and his brother. The payroll taxes in question consisted of federal income taxes, Social Security taxes, and Medicare taxes withheld from the wages of employees of J. Wenszell Enterprises.

From the second quarter of 2012 through the fourth quarter of 2015, Wenszell withheld more than $1.2 million from employee wages but paid only $13,966.88 to the IRS.  In addition, during the years 2010 - 2011, Wenszell withheld and failed to pay an additional $394,000. Wenszell also failed to pay the employer's share (or "matching share") of payroll taxes during the years 2010-2015, which totaled almost $530,000. Throughout this period, Wenszell failed to file any quarterly payroll tax returns with the IRS.

During the years 2012-2015, despite paying almost none of the required payroll taxes, Susan Wenszell and her husband withdrew more than $1.1 million from their business to pay personal expenses.

Wenszell faces up to five years in prison and fines of up to $250,000. She is scheduled to be sentenced on May 28, 2019.

This matter was investigated by the Internal Revenue Service Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Matthew Jacobs.

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Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that Kimberly Bagneski (age 48) of Waupun, Wisconsin, has entered a guilty plea in federal court to knowingly taking part in a scheme to defraud the United States by submitting false claims for income tax refunds to the IRS.

According to a written plea agreement, from approximately January 2011 through February 2016, assisted by a family member she had recruited, Bagneski prepared and filed false tax returns for third parties. In total, Bagneski assisted in the preparation and filing of at least 20 false federal income tax returns that sought more than $90,000 in fraudulent tax refunds. Bagneski also assisted in the preparation and filing of at least 19 false state income tax returns. All of the returns included a false Schedule C fraudulently reporting business income or losses, and many claimed inflated or completely fabricated deductions (medical expenses, home mortgage interest deductions, and charitable contributions) and tax credits (education tax credit, additional child tax credit, and earned income credit). 

To obtain the fraudulent tax refunds, Bagneski instructed the IRS to send the refunds to a bank account she controlled or to split the refund between her account and an account controlled by the family member she recruited.

Bagneski faces up to five years in prison and fines of up to $250,000. She is scheduled to be sentenced on June 13, 2019.

This matter was investigated by the Internal Revenue Service Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Matthew Jacobs.

 

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For further information contact:

Public Information Officer Kenneth Gales (414) 297-1700

United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on February 5, 2019, a federal grand jury issued an indictment against Tou W. Vang, also known as “Meng Vang” (age: 38) of Neenah, Wisconsin.

The indictment alleges that Vang possessed methamphetamine and marijuana with the intent to distribute the controlled substances contrary to Title 21, United States Code, Sections 841(a), (b)(1)(A), and (b)(1)(D). Further, he is charged with possession of a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A). If convicted of the charges alleged, Vang faces a mandatory 15 year prison sentence and up to a lifetime of imprisonment.

Vang will be arraigned on February 14, 2019, in Green Bay federal court.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Wisconsin Department of Justice, Division of Criminal Investigation, and the Appleton 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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United States Attorney Matthew D. Krueger has announced that last Friday, United States District Judge Pamela Pepper sentenced Deon Batton to 12 ½ years in prison after he pled guilty to committing five armed robberies in Milwaukee and one count of discharging a firearm during a crime of violence.  Judge Pepper previously sentenced Batton’s co-defendant, Laura Walton, to 10 years in prison after she pled guilty to committing five armed robberies and one count of brandishing a firearm during a crime of violence.  Neither defendant had a felony conviction prior to their arrest for the armed robberies. 

As part of their plea agreements, Batton and Walton admitted to robbing two Subway restaurants, a Cousin’s Subs restaurant, a Taco Bell, and a GameStop store between October 9 and 11, 2017.  During each robbery, one or both of them brandished handguns and pointed them at employees.  During one of the Subway robberies, Batton discharged his weapon at a security monitor.  Under federal law, the discharge of a firearm during a crime of violence, like a robbery, requires a 10-year mandatory minimum prison sentence; brandishing a firearm requires a 7-year mandatory minimum prison sentence.    

This case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force, the Milwaukee Police Department, and the Milwaukee County District Attorney Investigator’s Office.  The case was prosecuted by Assistant United States Attorney Margaret B. Honrath.

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