Eastern District of Wisconsin

United States Attorney James L. Santelle, announced that on October 20, 2014, Todd David Doughty (age: 50), owner of the “Thunderbird Game Farm” in Chilton, Wisconsin, was sentenced to five years probation, ordered to pay a $5,000 fine, and had his hunting, fishing and trapping privileges revoked for five years by Chief United States District Court Judge William C. Griesbach. Doughty had previously been convicted for a violation of the Migratory Bird Treaty Act in violation of Title 16, United States Code, Sections 703(a), 707(b)(2) and Title 18, United States Code, Section 2. 

According to the plea agreement and other documents filed with the court, Doughty illegally engaged in the sale of sausage containing Snow Goose, a migratory bird. While sentencing the defendant, Chief Judge Griesbach noted a litany of past wildlife offenses which “spoke to the defendant’s character” and his “disregard for wildlife laws” which necessitated the lengthy revocation of hunting privileges. As a convicted felon, Doughty may never again possess a firearm for any purpose.     

The case was investigated by the United States Fish and Wildlife Service and the Wisconsin Department of Natural Resources.  It was prosecuted by Assistant United States Attorney Daniel R. Humble.

United States Attorney James L. Santelle announced that United States Marshals have arrested Randy Mark Yager, aka “Mad” (age: 58), in Mexico.  In 1997, Yager fled after he was indicted in the Eastern District of Wisconsin.  Yager was the ATF's Most Wanted Fugitive in 1997, and was placed on the United States Marshals 15 Most Wanted list in 2004.

Yager is one of seventeen members and officers of the Outlaw Motorcycle Club who were charged with racketeering offenses. The indictment identifies Yager as the regional president of the Chicago Region of the Outlaws and the president and a member of the Gary Chapter of the Outlaws.  Yager is charged under the Racketeer Influenced and Corrupt Organizations Act (RICO) with substantive racketeering and conspiracy to commit racketeering acts, in violation of Title 18, United States Code, Sections 1962 (c) and (d).  The charges carry penalties of up to life in prison.

 The indictment alleges that the Outlaws were a criminal organization whose members and associates were engaged in acts of violence including murder, robbery, arson, narcotics trafficking, and other serious offenses.  According to the indictment, many of those acts were committed with the intent to control Outlaw territory and keep rival motorcycle gangs, including the Hell’s Angels, from gaining a foothold in the Midwest. Yager is alleged to have participated in racketeering acts that included conspiracy to commit murder at the Lancaster Speedway in Erie County, New York, where a member of the Hell’s Angels and a member of the Outlaws were each killed during the planned assault. He is also alleged to have participated in a conspiracy to commit murder at the Illiana Speedway in Lake County, Indiana, and in an act of robbery at a tavern in Cook County, Illinois.

Yager’s co-defendants have all been convicted, and five of them, including Kevin O’Neill, David Kadlec, Randall Miller, Carl J. Warnecke and Harvey Powers, were given life sentences. 

In announcing Yager’s arrest and return to the United States, United States Attorney James L. Santelle stated: “The charges against this defendant remain today just as serious, extensive, and violent as they were when the Grand Jury issued them some 17 years ago.  Mr. Yager will now face the consequences of those criminal actions that, like those of his co-defendants, compromised the safety and the security of our communities.” United States Attorney Santelle specially commended the United States Marshals Service and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, along with the other law enforcement units, for their “outstanding highly professional, and unrelenting work in identifying the defendant’s whereabouts and accomplishing his return to face justice here in Eastern Wisconsin”.

"While Randy Yager attempted to evade federal law enforcement for nearly two decades, today's arrest signifies ATF's relentless pursuit of violent criminals across the nation,” said Special Agent in Charge of the St. Paul Field Division James C. Modzelewski.  “Be clear that ATF in partnership with the U.S Marshals Service, U.S. Attorney's Office and local law enforcement, we will bring violent criminals to justice without regard for how many decades they attempt to evade the law."

Yager, was apprehended Wednesday near Rosarito, Baja California, Mexico. The fugitive investigation for Yager gained momentum when U.S. Marshals were able to gather significant information on his possible location. The information was then forwarded to Mexican authorities, who responded to the location and encountered a man who fit Yager’s description.  When Mexican authorities asked the man to identify himself, he initially said his name was “David” and produced several identification cards bearing the name David Michael Dorian. However, after additional questioning, the man later identified himself as Randy Yager.

Mexican authorities took Yager into custody and transported him to a facility in Tijuana where he was processed and positively identified.  On Thursday, October 16, Yager was ordered expelled from Mexico to the U.S., where he was subsequently turned over to the U.S. Marshals. He is currently being held at the Western Regional Detention Facility in downtown San Diego, California.

“Yager was on the U.S. Marshals 15 Most Wanted list since 2004,” stated Kevin Carr, U.S. Marshal for the Eastern District of Wisconsin.  “His arrest is a testament to the outstanding investigative work and tireless efforts of our deputies and our federal, state, and local partners who worked this case for years to bring Yager to justice.”

This case has been assigned to Assistant United States Attorney Carol L. Kraft who initially prosecuted this case.

United States Attorney James L. Santelle of the Eastern District of Wisconsin announced that on Tuesday, October 7, 2014, the grand jury returned a sixteen count indictment charging Todd A. Brunner (age 57), and Shawn A. Brunner, (age: 24), both of Pewaukee, Wisconsin with bank fraud in violation of Title 18, United States Code, Section 1344; and false declarations and oaths, and concealing assets in bankruptcy, in violation of Title 18, United States Code, Section 152.

T. Brunner is charged in counts one through eight of the indictment, which allege that he submitted false documents in support of draw requests from a construction loan funded by First Business Bank of Milwaukee.  Counts nine through eleven allege T. Brunner transferred the ownership of assets, including real estate, motor vehicles, and boats to his son, S. Brunner, and to shell companies in order to shield them from his creditors.   Count twelve alleges that T. Brunner concealed boat engines, superchargers and gauges from the bankruptcy court and his creditors during bankruptcy proceedings.  Counts thirteen and fourteen allege that T. Brunner made materially false declarations and verifications under penalty of perjury in his bankruptcy proceedings. Count fifteen alleges that T. Brunner made a false oath and account at a creditor meeting in bankruptcy.  S. Brunner is charged with bank fraud along with his father in counts nine through eleven, and separately, in count sixteen, with a false account and oath at a bankruptcy proceeding.

In announcing the indictment, United States Attorney Santelle commented: “The nature and scope of the charges issued by the grand jury reflect the substance and the breadth of the criminal conduct in which the defendant allegedly engaged—including bank fraud, the concealment of assets, and the making of false statements in the context of bankruptcy proceedings.  These behaviors not only compromise the strength of our financial institutions and banking systems but also undermine the legitimate and important processes of the United States Bankruptcy Court.”  Santelle specially commended the Federal Bureau of Investigation, the Internal Revenue Service, the Department of Housing and Urban Development, and the Milwaukee Police Department for “their partnered, focused, and effective investigation of this multi-faceted fraud.”

If convicted of the bank fraud counts, each defendant faces up to 30 years in prison, a $1,000,000 fine, and up to five years supervised release for each count. If convicted of the false declarations and oaths and concealment in bankruptcy, each defendant faces up to five years in prison, a $250,000 fine, and up to three years of supervised release on each count.

The case was investigated by the Federal Bureau of Investigation, the United States Department of Housing and Urban Development-Office of Inspector General, Internal Revenue Service Criminal Investigation, and the Milwaukee Police Department. The case is being prosecuted by Assistant United States Attorney Carol L. Kraft.

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

United States Attorney James L. Santelle, of the Eastern District of Wisconsin, announced that on September 22, 2014, Charles Kniebes-Larsen (age: 34) of Neenah, Wisconsin, was sentenced to 36 months in federal prison by Chief United States District Judge William C. Griesbach. Kniebes-Larsen previously entered a guilty plea to a single-count indictment charging him with being a felon in possession of a firearm.

The case was investigated by the Lake Winnebago Area Metropolitan Enforcement Group and the Town of Menasha Police Department. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.

United States Attorney James L. Santelle of the Eastern District of Wisconsin announced today that on September 19, 2014, Christopher A. Seifer (age: 43) of Westfield, Wisconsin, was sentenced to 15 months imprisonment followed by three years of supervised release, and ordered to pay $84,717.60 in restitution to the U.S. Department of Labor.  Seifer was also ordered to pay a $500 special assessment.

On February 4, 2014, Mr. Seifer was charged in a five-count indictment alleging that he had submitted more than 1,380 fraudulent claims seeking reimbursement from the federal government for mileage expenses that he falsely claimed to have incurred by driving to health clubs for self-directed pool-therapy sessions.  The indictment alleged that Mr. Seifer did not, in fact, travel to the health clubs on many of his claimed dates of travel between March 28, 2006, and October 2, 2012, for which Mr. Seifer had sought and obtained more than $84,000 in mileage-expense reimbursements.  On June 19, 2014, following a four-day trial, a jury found Mr. Seifer guilty on all counts.

The evidence produced at trial demonstrated that Mr. Seifer had defrauded the Department of Labor’s Office of Workers Compensation Program, which provides disability-related benefits to federal workers who suffer disabilities as a result of work-related injuries, by submitting false travel reimbursement claims and obtaining payments on those false claims.   Mr. Seifer had formerly been employed by the United States Bureau of Prisons as an Electronics Technician at the Federal Correctional Institution in Oxford, Wisconsin, where he suffered work-related injuries and was then entitled to receive benefits, including medical benefits under the Federal Employees Compensation Act.

In making today’s announcement about the sentence, United States Attorney Santelle stated: “The 15-month incarceration term imposed on this defendant reflects the gravity and breadth of the fraud that Mr. Seifer perpetrated on the United States Bureau of Prisons and the United States Department of Labor —and on the public whose trust he compromised.  The fact that he is also now obliged, following a full trial and exposition of his false statements and claims for reimbursement under the Workers Compensation Program, to pay restitution in an amount of nearly $85,000 similarly confirms the vigor and the focus of the investigative and prosecutorial work that has preceded this result.  I commend specially the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, along with the United States Department of Justice’s Office of Inspector General, for the professionalism and precision of their investigative efforts in bringing this defendant and his fraudulent conduct to a decisive and deterrent-accomplishing end.”

This case was investigated by the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering & Fraud Investigations and the United States Department of Justice Office of the Inspector General, Chicago Field Office.  This case was prosecuted by Assistant United States Attorneys Scott Campbell and Benjamin Proctor.

United States Attorney James L. Santelle announced that Myron J. Penass, (age: 21), of Neopit, located on the Menominee Indian Reservation, in the State of Wisconsin, was sentenced on September 4, 2014, in United States District Court to 262 months of imprisonment, followed by a term of 20 years on supervised release. The sentence was the result of a guilty plea by Penass on May 22, 2014, to a federal information charging him with four counts of engaging in a sex act with a person incapable of appraising the nature of the conduct. 

The investigation revealed that throughout 2013, Penass, sexually abused a 7-year-old female at a residence on the Menominee Indian Reservation. Penass admitted that he sexually assaulted the victim. 

The case was investigated by the Menominee Tribal Police and the Federal Bureau of Investigation.  The case was prosecuted by Assistant United States Attorney Benjamin L. Whittemore.

United States Attorney James L. Santelle announced that Richard J. Schreiber, (age: 21), of Keshena, located on the Menominee Indian Reservation, in the State of Wisconsin, was sentenced on September 4, 2014, in United States District Court to 53 months of imprisonment, followed by a term of three years on supervised release. The sentence was the result of a guilty plea by Schreiber on May 22, 2014, to a federal information charging him with one count of assault of a child resulting in serious bodily injury. 

The investigation revealed that on two occasions Schreiber abused a 20-month-old male   at a residence on the Menominee Indian Reservation. Schreiber admitted that he assaulted the victim. 

The case was investigated by the Menominee Tribal Police and the Federal Bureau of Investigation.  The case was prosecuted by Assistant United States Attorney Benjamin L. Whittemore.

United States Attorney James L. Santelle announced that James F. King, Sr., (age: 40), of Keshena, located on the Menominee Indian Reservation, in the State of Wisconsin, was sentenced on July 28, 2014, in United States District Court to 87 months of imprisonment, followed by a term of 10 years on supervised release. The sentence was the result of a guilty plea by King on March 25, 2014, to a federal indictment charging him with one count of sexually abusing a person incapable of declining participation. 

The investigation revealed that on November 20, 2013, King, sexually abused a 25-year-old female, who was asleep at the time. The victim indicated that she sleeping in the basement of the residence when she was awakened by someone tugging at her clothing. The victim kicked King and yelled for help as he ran from the residence. Law enforcement interviewed King and he admitted that he sexually assaulted the victim. 

The case was investigated by the Menominee Tribal Police and the Federal Bureau of Investigation.  The case was prosecuted by Assistant United States Attorney Benjamin L. Whittemore.

    #    #    #    #

United States Attorney James L. Santelle announced that James A. Peters, (age: 27), of Keshena, located on the Menominee Indian Reservation, in the State of Wisconsin, was sentenced on August 28, 2014, in United States District Court to 240 months of imprisonment, followed by a term of 15 years on supervised release. The sentence was the result of a guilty plea by Peters on May 28, 2014, to a federal information charging him with one count of engaging in a sex act with a person incapable of appraising the nature of the conduct. 

 The investigation revealed that on January 8, 2014, Peters, sexually abused an 11-year-old female. Peters admitted that he sexually assaulted the victim. 

 The case was investigated by the Menominee Tribal Police and the Federal Bureau of Investigation.  The case was prosecuted by Assistant United States Attorney Benjamin L. Whittemore.

#    #    #    #    #

United States Attorney James L. Santelle, of the Eastern District of Wisconsin, announced that on August 26, 2014, Sherman Maurice Threets (age: 29) of Oshkosh, Wisconsin, was sentenced to 10 years in federal prison by Chief United States District Judge William C. Griesbach. Threets had previously entered a guilty plea to a single count of conspiracy to distribute heroin.

 According to the plea agreement and other documents filed with the court, Threets was the lead actor in an Oshkosh area heroin distribution ring with ties to distributors in Chicago, Illinois.  Threets was previously convicted of Possession with Intent to Distribute Cocaine in Fond Du Lac County in 2005 and again in Winnebago County in 2007. He was on state supervision for both crimes at the time of his federal indictment.          

 In pronouncing sentence, Chief Judge Griesbach noted the clear danger that Threets presented to the community, especially by shifting his drug dealing business from cocaine to highly addictive heroin which has been responsible for an increasing number of overdose deaths in northeast Wisconsin. In addition to the prison sentence, Threets was ordered to spend an additional 10 years on supervised release.            

 The case was investigated by the Lake Winnebago Area Metropolitan Enforcement Group and the Oshkosh Police Department. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.

United States Attorney James L. Santelle of the Eastern District of Wisconsin announced that Verita Hines-Flagg (age: 54) of Belleville, MI and Benjamin Hines (age: 29) of Detroit, MI were both sentenced to federal prison for their role in an identity theft ring which operated out of Michigan.  On August 19, 2014, Benjamin Hines (Hines) was sentenced to 18 months in federal prison for conspiracy to commit mail and wire fraud followed by three years of supervised release.  On August 21, 2014, Verita Hines-Flagg (Hines-Flagg) was sentenced to three years in prison for conspiracy to commit mail and wire fraud followed by a two year consecutive sentence for aggravated identity theft, for a total sentence of five years.

According to information released in court, in October 2012, the Brown Deer Police Department was notified by the Kohl’s Department store that two individuals had opened a $1,000 line of credit in an apparent identity theft.  Loss prevention personnel in the store witnessed the account opening, the use of the suspicious identification document, and observed the individuals purchase a large amount of merchandise totaling approximately $1,000 immediately after opening the account. The items they purchased included several cell telephones and other items easily re-sold for profit.

When officers arrived they observed a Lincoln car with out-of state plates in the parking lot, blocking traffic. The driver was identified as Hines.  Hines-Flagg was identified as the passenger in the vehicle. Both Hines-Flagg and Hines were taken into custody on theft charges. The Lincoln they were driving was a brand new 2012 Luxury Lincoln and was valued at over $50,000. The investigation of the Lincoln determined that the vehicle was a fraudulently leased vehicle and the lessee listed on the Illinois registration was a victim in the identity theft scheme. During the same time period, four other luxury cars were also purchased by the co-conspirators, all of which were purchased by the conspirators using the stolen identities of various crime victims.

Evidence in this case indicated that Hines-Flagg and Hines were working with members of the conspiracy to sell the five stolen vehicles. The total value of the five stolen vehicles was over $300,000.  The Lincoln’s contents and personal property of Hines-Flag and Hines were inventoried and contained five fake Michigan driver’s licenses, the personal identifying information of several identity theft victims, and over $20,000 of fraudulently purchased merchandise from various retails stores in the Eastern District of Wisconsin.

The investigation determined that Hines-Flagg and Hines traveled to Wisconsin from Detroit, Michigan in the stolen Lincoln with the intent to obtain property and return to Michigan where the defendants and their co-conspirators intended to sell the property.

           
The case was investigated by the United States Postal Service, Homeland Security Investigations, the Wisconsin State Department of Justice, and the Brown Deer Police Department. The case was prosecuted by Assistant United States Attorney Karine Moreno-Taxman.

James L. Santelle the United States Attorney for the Eastern District of Wisconsin announced today the indictment in the Northern District of Illinois of Attorney Beau B. Brindley (age: 36) and Marina Collazo (age: 30) of Chicago in connection with a scheme to present perjured testimony in the 2009 trial of United States v. Alexander Vasquez, in federal district court in Chicago.

Although the crime is alleged to have occurred in Chicago, the United States Attorney’s Office there has recused itself in the matter and it has been transferred to the United States Attorney’s Office for the Eastern District of Wisconsin, in Milwaukee.  However, all legal proceedings in this case will take place in Chicago.

The indictment is based upon allegations that Mr. Brindley, a Chicago criminal defense attorney, caused Ms. Collazo to commit perjury in the trial of Mr. Vasquez, a Brindley client.  The indictment contains five counts:

• Count One charges both defendants with a conspiracy to obstruct justice through the presentation of false testimony, in violation of 18 U.S.C. § 371.  The maximum possible penalty for this offense is a fine of not more than $250,000, imprisonment for not more than five years, or both, plus a mandatory $100 special assessment and up to three years of supervised release to follow any term of incarceration.
• Counts Two through Four charge both defendants with perjury, in violation of 18 U.S.C. § 1623(a).  The maximum possible penalty for each of those counts is a fine of not more than $250,000, imprisonment for not more than five years, or both, plus a mandatory $100 special assessment and up to three years of supervised release to follow any term of incarceration.
• Count Five charges Mr. Brindley with obstruction of justice, in violation of 18 U.S.C. § 1512(c)(2).  The maximum possible penalty for this offense is a fine of not more than $250,000, imprisonment for not more than 20 years, or both, plus a mandatory $100 special assessment and up to three years of supervised release to follow any term of incarceration.

This case is being investigated by the Federal Bureau of Investigation.  The case will be prosecuted by Assistant United States Attorneys Michael J. Chmelar and Mel S. Johnson.   

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

#    #    #    #    #

United States Attorney James L. Santelle announced that Elia V. Orlando, (age: 26) of  Milwaukee, Wisconsin, was sentenced to 40 years imprisonment, followed by a lifetime of supervised release for four counts of production of child pornography. Each count involved a separate child between the ages of two and three years.  It should be noted that on March 4, 2010, Orlando was convicted of Possession of Child Pornography in state court.

According to documents released in court, on August 1, 2013, Orlando inadvertently left his cellular phone at a gas station in Cudahy, Wisconsin. A citizen noticed that Orlando had left the phone behind and attempted to return it to him.  When she was unsuccessful in catching Orlando before he left the parking lot, the citizen opened the phone with the intention of obtaining information on the owner.  While looking for ownership information that citizen stumbled upon images she believed to child pornography.  The citizen, who resides in Milwaukee, turned the phone over to the Milwaukee Police Department. 

The Milwaukee Police Department was able to determine the ownership of the telephone and the location of Orlando the same day they were contacted by the citizen.  When Orlando was questioned by police officers, he admitted the phone was his and that he was in possession of child pornography.  A forensic examination by the High Technology Unit of the Milwaukee Police Department revealed additional images of child pornography that were produced by Orlando.  Orlando befriended several of the parents of the young children and was ultimately entrusted with their care. 

This case was prosecuted in federal court as part of “Project Safe Childhood,” the Department of Justice’s nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse.  Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children using the internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The case was investigated by the Milwaukee Police Department. The case was prosecuted by Assistant United States Attorney Penelope L. Coblentz.

United States Attorney James L. Santelle of the Eastern Distirct of Wisconsin announced that Michael Stolp (age; 44)  and Judith Stolp (age: 44) both of West Bend were sentenced to two years in federal prison by District Court Judge Charles N. Clevert for their roles in a conspiracy to illegally distribute Oxycodone.

The investigation revealed that Michael Stolp and Judith Stolp illegally sold up to 400 - 500 pills of Oxycodone a month to an individual, for a profit, and the pills would then be resold to others. The Oxycodone pills were obtained as a result of their illegal misuse of a valid prescription Michael Stolp had received for Oxycodone due to a back injury.  Oxycodone is a Schedule II controlled substance.

The investigation was conducted by Drug Enforcement Administration and the Washington County Drug Enforcement Group. The case was prosecuted by Assistant United States Attorney Karine Moreno-Taxman.

United States Attorney James L. Santelle of the Eastern Distirct of Wisconsin announced that Michael Stolp (age; 44)  and Judith Stolp (age: 44) both of West Bend were sentenced to two years in federal prison by District Court Judge Charles N. Clevert for their roles in a conspiracy to illegally distribute Oxycodone.

The investigation revealed that Michael Stolp and Judith Stolp illegally sold up to 400 - 500 pills of Oxycodone a month to an individual, for a profit, and the pills would then be resold to others. The Oxycodone pills were obtained as a result of their illegal misuse of a valid prescription Michael Stolp had received for Oxycodone due to a back injury.  Oxycodone is a Schedule II controlled substance.

The investigation was conducted by Drug Enforcement Administration and the Washington County Drug Enforcement Group. The case was prosecuted by Assistant United States Attorney Karine Moreno-Taxman.

James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that on July 31, 2014, Tiffiny Leanna Harden (age: 30) of Menomonee Falls was sentenced before Judge Rudolph T. Randa on charges of filing false claims against the United States, mail fraud, and food stamp fraud.  Harden was sentenced to thirty months in federal prison and was given three years supervised release.  Harden was also ordered to pay $120,525 in restitution, requiring Harden to pay $120,125 to the Internal Revenue Service and $400 to the U.S. Department of Agriculture, Supplemental Nutrition Assistance Program.

Harden pleaded guilty to the federal charges on April 11, 2014. Records filed in court indicate that
Harden fraudulently filed a total of at least 35 tax returns for the 2011 tax year seeking total refunds of at least $229,522. Of the $229,522 in refunds that was attempted to be received by Harden, she obtained $120,125 in tax refunds that were deposited into her bank’s accounts.

Court documents indicate that Harden sought tax refunds by claiming false incomes, false education credits and/or claiming false dependents for the taxpayers. Several of the taxpayers told law enforcement officials that they did not know Harden and did not know how she got their information. Others stated that Harden had offered to help them fill out their returns and they provided her with their identifying information, but never heard back from her.  Many of the victims indicated that Harden had offered to fill out their tax returns for them, but the victims never provided Harden with the information regarding the employer, educational status, or the dependents listed in the returns using their identities.  At least two taxpayers did not know that they were claimed as dependents.  Harden used the United States mail to receive and send false information to the IRS.

In addition, during the time she was receiving the tax refunds, she also committed food stamp fraud. In order to receive this federal benefit, she claimed in her Food Share application to be homeless during that period and failed to disclose the fact that she had received over $100,000 from the fraudulent tax return scheme during the months of February and March 2012.

This case was jointly investigated by the Internal Revenue Service Criminal Investigative, the United States Postal Inspection Service and the United States Department of Agriculture. The case was prosecuted by Assistant U.S. Attorney Karine Moreno-Taxman.

United States Attorney James L. Santelle, of the Eastern District of Wisconsin, announced that yesterday, Andrea Paris (neé Addington) (age: 30) of Marinette, Wisconsin, was sentenced to 18 months in federal prison by Chief United States District Judge William C. Griesbach. The prison sentence is to be followed by 12 months of supervised release.

Paris had previously entered a guilty plea to a charge of using a communication facility (i.e., a telephone) to facilitate the distribution of heroin. According to the plea agreements and other documents filed with the court, Paris worked in concert with seven other co-defendants to facilitate the movement and delivery of heroin to the Marinette, Wisconsin, and Menominee, Michigan areas after obtaining the drug from a supplier in Chicago. Those records also indicate that Paris established initial contact with the supplier and introduced the others to the heroin source.    

The court noted Paris’ manipulative nature, the devastating effect that heroin addiction has had in northeast Wisconsin, and her role involving others in the collective effort to bring large quantities of heroin to the Marinette/Menominee region. 

The case was investigated by Special Agents from the Wisconsin Department of Justice, Department of Criminal Investigation, the U.S. Drug Enforcement Administration, the Marinette Police Department, Marinette Sheriff’s Office, Menominee (Michigan) Police Department, Menominee (Michigan) Sheriff’s Office, Wisconsin HIDTA Task Force, Chicago HIDTA Task Force, Chicago Police Department, Northeast Wisconsin Tri-County Drug Enforcement Group, and the Manitowoc County Sheriff’s Office.  The case was prosecuted by Assistant United States Attorney Daniel R. Humble.

Today, a federal grand jury in Milwaukee returned a 15-count superseding indictment charging two Milwaukee men, Paul Carter aka “Pimpin’ Paul” and David Moore aka “King David” with conspiracy, sex trafficking and related offenses spanning from the years 2007 to 2013.

Carter, 44, and Moore, 46, both of Milwaukee, were each previously indicted, Carter for two counts of sex trafficking and Moore for sex trafficking, conspiracy and solicitation of a crime of violence.  The 15-count indictment returned today charges the two defendants jointly in four additional counts of conspiracy, sex trafficking, and labor trafficking, and charges each defendant with additional sex trafficking offenses, for a total of six additional counts against defendant Carter and eight additional counts against defendant Moore.  Both defendants are charged with sex trafficking of both adults and minors. 

If convicted, Carter and Moore each face a sentence of up to life imprisonment. 

The case was investigated by the Human Trafficking Task Force for the Eastern District of Wisconsin, which includes law enforcement officers from FBI, Homeland Security Investigations, Wisconsin Division of Criminal Investigation and the Milwaukee Police Department.  The case is being prosecuted by Assistant United States Attorney Karine Moreno-Taxman of the Eastern District of Wisconsin and Trial Attorney Daniel H. Weiss of the Civil Rights Division’s Human Trafficking Prosecution Unit.

An indictment is merely an accusation, and each defendant is presumed innocent until proven guilty.

United States AttorneyJames L. Santelle, of the Eastern District of Wisconsin, announced that on August 5, 2014, Brian King (age: 55) of Chicago, Illinois, and Donald Myers, Jr. (age: 41) of Menominee, Michigan, were sentenced to 30 months and 21 months in prison respectively by Chief United States District Judge William C. Griesbach. Each had previously entered a guilty plea; King to a charge of Distribution of Heroin, 100 grams or more, and Myers to a charge of using a communication facility (i.e., a telephone) to facilitate the distribution of heroin.

According to their plea agreements and other documents filed with the court, Myers worked in concert with seven other co-defendants to facilitate the movement and delivery of heroin to the Marinette, Wisconsin, and Menominee, Michigan areas after obtaining the drug from King, their primary supplier in Chicago. The court noted the “serious and dangerous nature” of the defendants’ crimes, as well as the “devastating effect” that heroin addiction has had in the Marinette/Menominee region. 

The case was investigated by Special Agents from the Wisconsin Department of Justice, - Department of Criminal Investigation, the U.S. Drug Enforcement Administration, the Marinette Police Department, Marinette Sheriff’s Office, Menominee (Michigan) Police Department, Menominee (Michigan) Sheriff’s Office, Wisconsin HIDTA Task Force, Chicago HIDTA Task Force, Chicago Police Department, Northeast Wisconsin Tri-County Drug Enforcement Group, and the Manitowoc County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.

United States Attorney James L. Santelle announced that Shon Tay Dessart (age: 46) of Reedsville, Wisconsin was sentenced in federal court to one year in prison after being convicted in June following a jury trial of violating the Food, Drug, and Cosmetic Act. 

Dessart operated a business known as EDS Research Supplies out of a residence he owned in Reedsville, Wisconsin.  At the residence, Dessart manufactured and sold prescription drugs using raw materials he purchased from China and then marketed the drugs over the Internet.  Among the products Dessart sold were drugs containing the active ingredients found in prescription drugs approved to treat erectile dysfunction (such as Viagra, Cialis, and Levitra), hair-loss (such as Propecia), as well as albuterol and anti-estrogen drugs.  Other products included clenbuterol, a FDA-approved drug for use only in horses, not humans.

Trial testimony provided by several United States Food and Drug Administration (FDA) doctors described the potential harmful effects of using these drugs without a prescription.  The FDA witnesses also described potentially harmful effects of merely handling some of the drugs in the forms sold by Dessart, including certain powder forms.

Dessart claimed that the drugs were “for research only” and not intended for human consumption but marketed the drugs on websites dedicated to body building and sold the drugs in various colors and flavors (including sugar-free flavors).  Dessart was convicted of 23 felony violations of the Food, Drug, and Cosmetic Act, including operating an unregistered manufacturing facility and distributing prescription drugs without a prescription.  The jury found that, in committing these offenses, Dessart had acted with the intent to defraud or mislead the FDA

In announcing this sentence, United States Attorney James L. Santelle stated: "the United States Department of Justice pursued this important prosecution to protect our residents from the significant danger posed by the unauthorized manufacture and sale of drugs.  In addition to defrauding the Food and Drug Administration in its beneficial, public-oriented function, the defendant misled consumers of his unapproved drugs and threatened their physical health and condition.  I commend the FDA's Office of Criminal Investigations, the United States Postal Inspection Service, and our state and local law enforcement partners in Manitowoc for their excellent investigative work in bringing this fraudulent operation to an end."

“The manufacture and sale of potentially dangerous unapproved prescription drugs poses a serious threat to the public’s health,” said John J. Redmond, Special Agent in Charge of the Chicago Field Office of the FDA’s Office of Criminal Investigations.  “We will continue to guard against those who would seek to defraud and mislead the FDA and endanger the public.”

This case was investigated by the FDA’s Office of Criminal Investigations, and the United States Postal Inspection Service, with substantial assistance from the Manitowoc County Metro Drug Unit, the Manitowoc County Sheriff’s Department, and the Two Rivers Police Department. 

The case was prosecuted by Assistant U.S. Attorney Matthew L. Jacobs of the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Clint Narver of the FDA’s Office of Chief Counsel.

United States Attorney Announces Commemorative Program as the Nation Observes the Second Anniversary of the Hate Crimes Violence at the Sikh Gurdwara in Oak Creek

United States Attorney James L. Santelle of the Eastern District of Wisconsin announced today that a special commemoration and awards ceremony will be held on Wednesday, August 6, 2014, from 2:00 p.m. to 3:30 p.m. at the Oak Creek Community Center, located at 8580 South Howell Avenue in Oak Creek, Wisconsin.  This community gathering, “In Celebration of Seva,” (the Sikh principle of “service”) is among many programs and events locally and nationwide in observance of the second anniversary of the hate crimes violence at the Sikh Gurdwara in Oak Creek in August of 2012. 

 Among other significant components of the program, members of Wisconsin’s Congressional Delegation will be conferring the United States Attorney General’s State and Local Law Enforcement Congressional Badges of Bravery on Lieutenant Brian Murphy and Officer Savan “Sam” Lenda, both of the Oak Creek Police Department, whose courageous and selfless law enforcement actions ended the violence at the Sikh Gurdwara and saved the lives of congregation members.  United States Attorney Santelle anticipates that Senator Ron Johnson, Senator Tammy Baldwin, Congressman Paul Ryan, and Congresswoman Gwen Moore, or their representatives will present the Badges of Bravery and make remarks on the significance of the local, statewide, and national law enforcement actions of two years ago.

The Congressional Badge of Bravery is awarded to a public safety officer who has sustained a physical injury in the line of duty while performing an act of bravery, or if not injured, performed an act of bravery that placed the officer at risk of serious physical injury or death.  Attorney General Eric H. Holder, Jr. selected Lieutenant Murphy and Officer Lenda for their “extraordinary bravery above and beyond the call of duty,” while also commending the service of numerous other agents, officers, and employees of federal, state, and local law enforcement for their critically important responsive actions.

In addition, United States Attorney Santelle will be conferring Distinguished Public Service Awards on some ten area attorneys who, over the period of the past two years, have provided critically important pro bono legal service and counsel to the family members of the victims of the violence.  The attorneys who will be recognized specially for their service to the community are Sklkime Abduli, Priya Moti Bhatia, Kelley A. Chenhalls, Laura J. Fernandez, Thomas C. Hochstatter, Gail K. McCarthy, Jennifer L. Nissen, Davorin J. Odrcic, Maria T. Ryan, and Jessie Schreier.

The program will also include an encore presentation of “Waking in Oak Creek”—a reflective and inspiring documentary about the responsive care, abiding support, and transcendent spirit of a faith congregation and a harmonious community that rejected hate in favor of humanity.  This film was produced by the professional staff of the Working Group/Not in Our Town Initiative, led by Executive Officer and Director Patrice O’Neill, in partnership and association with the United States Department of Justice’s Office of Community Policing Services (COPS).  

The Honorable Stephen Scaffidi, Mayor of the City of Oak Creek, Police Chief John Edwards, City of Oak Creek Police Department, and other state and local officials will be speaking about the events of early August of 2012 and about the response of the Oak Creek Community, the State of Wisconsin, and the nation in promoting healing, safety, security, understanding, and growth.  Finally, Dr. Kulwant S. Dhaliwal, President of the Sikh Temple of Wisconsin, and Dr. Gurcharan S. Grewal, President of the Sikh Religious Society of Wisconsin, will convey remarks about “seva”—that is, the humanitarian commitment to service to all women and men—and similarly speak about the experiences of the Skih congregations that they lead.  

This ceremony is presented and sponsored by the Office of the United States Attorney for the Eastern District of Wisconsin, the Bureau of Justice Assistance of the Office of Justice Programs of the United States Department of Justice, in partnership with the Delegation to the United States Congress from the State of Wisconsin, the City of Oak Creek, the Sikh Community of the State of Wisconsin, and the Working Group/Not in Our Town Initiative.  United States Attorney Santelle acknowledges and expresses appreciation to the leadership and the community of the City of Oak Creek for their support and assistance in organizing and presenting this program.

Members of the media should call Public Information Officer Dean Puschnig at (414) 297-1774 to confirm their attendance.

United States Attorney James L. Santelle announced today that Joshua Mueller, age 23, was sentenced on July 30, 2014, to 186 months (15 ½ years) of imprisonment, followed by 5 years of supervised release for his involvement in the January 28, 2014 armed robbery of Mother’s Foods (formerly Magic Foods) in Milwaukee.  The sentence was the result of Mueller’s guilty plea to one count of interference with commerce by robbery pursuant to the Hobbs Act and one count of discharging a firearm in furtherance of a crime of violence.  Co-defendant Sedrick Brown, age 27, was sentenced on July 29, 2014, to 96 months (8 years) of imprisonment after his guilty plea to one count of aiding and abetting the discharge of a firearm in furtherance of a crime of violence.  Co-defendant Steven Bugni remains a fugitive. 

The investigation revealed that on January 28, 2014, defendants Mueller and Bugni, both armed with firearms, stole U.S. currency from the Mother’s Foods store at 2879 N. 16th Street in Milwaukee, Wisconsin.  Brown served as a lookout.  During the robbery, Mueller shot a store employee in the leg, causing life-threatening bodily injury. 

At the sentencing hearing, one victim spoke regarding the effect of the robbery on himself, the other store employees, and the business.  He mentioned that several customers were in the store at the time of the robbery, including two young children. 

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

This matter was investigated by the Federal Bureau of Investigation and the Milwaukee Police Department.  It was prosecuted by Assistant United States Attorney Margaret B. Honrath.

United States Attorney James L. Santelle announced that on July 18, 2014, Paul LaChappelle (age: 41), of Manitowoc, was sentenced in federal court to two years in prison and ordered to make restitution to his former employer, Nemschoff Chairs, Inc., in the amount of $520,000.  In April 2014, LaChappelle pleaded guilty to wire fraud and tax evasion.
 
LaChappelle was previously employed as a maintenance technician at Nemschoff’s Sheboygan manufacturing facility.  Using this position, LaChappelle entered into an arrangement with a Florida business under which LaChappelle would cause Nemschoff to order replacement parts for machinery LaChappelle serviced from the Florida business.  The Florida business would obtain the parts from LaChappelle, who simply stole the parts from Nemschoff’s inventory. LaChappelle was paid one-half of the price Nemschoff paid the Florida business for the parts.   During the period from April 2009 through December 2011, Nemschoff paid the Florida business more than $500,000 for these replacement parts and LaChappelle received more than $268,000 for the parts he supplied.

The tax evasion charge was based on LaChappelle’s failure to report the income he received as part of his scheme, as well as the fact that he claimed fictitious business expenses on the tax returns he filed for the years 2008 through 2011.  As a result, LaChappelle fraudulently paid no federal income taxes for these years.

This case was investigated by the Internal Revenue Service Criminal Investigation in conjunction with the Sheboygan Police Department. The case was prosecuted by Assistant United States Attorney Matthew L. Jacobs.

United States Attorney James L. Santelle announced today that 12 defendants were indicted in federal court with Conspiracy to Import and Distribute Methylone, a Schedule I Controlled Substance in violation of Title 21, United States Code, Section 846. 

Defendant Age and Residency

Kirk R.C. Mickelson  aka “Kurt Cobain,” “Captain Kirk,” Captain”

25, Beloit

22, Beloit

Bryan F. Eason, aka “B,” “Unc,” “Uncle”

40, Illinois

Michael Miller

31, Minneapolis

Leanna Porter

26, Beloit

Connie Ketelsen

49, Beloit

Amy Ketelsen

25, Beloit

Wendell Thompson Eason

52, Hampton, NH

Allen Arthur Strzyzykowski

23, Janesville

Anthony Longtin, aka “Toby,” “Little Hitter"

23, Janesville

Martel Earl, aka “Tel”

24, Beloit

Scott Robert Beckwith, aka “Face”

31, Unknown

According to information released in court, in 2012, the Drug Enforcement Administration and the Washington County Sheriff’s Department began an investigation into a poly-drug group.  One of the main drugs the group trafficked in was Methylone.  Methylone is also known by the street names “Molly” or “M-1,” and is part of a family of synthetic, designer drugs commonly known as “bath salts.” Methylone is a Schedule I controlled substance. 

The indictment alleges that from October 2011 through July 1, 2014, the defendants listed in the table above knowingly and intentionally conspired to import, distribute and possess with intent to distribute Methylone.  If convicted each defendant faces up to 20 years imprisonment, a $250,000 fine and a minimum of 3 years supervised release.

In addition, Kirk R.C. Mickelson and Bryan F. Eason (B.F. Eason) were charged with Use and Brandishing of Firearms and Ammunition in furtherance of a Drug Conspiracy, in violation of Title 21, United States Code, Section 846.  If convicted they will face an additional 7 years to life imprisonment.  B.F. Eason was also charged with Intimidation of a Witness in violation of Title 18, United States Code, Sections 1512 (b)(1) and (2).  If convicted B.F. Eason will face an additional 20 years imprisonment, a $250,000 fine and a minimum of 5 years supervised release.

In a separate but related indictment, a thirteenth defendant identified as Robert Bero (age: 21) formerly of West Bend was charged with Conspiracy to Distribute Methylone, in violation of Title 21, United States Code, Section 846 and Distribution of Methylone, a Schedule I Controlled Substance in violation of  Title 21, United States Code, Section 841.  If convicted he faces up to 20 years imprisonment, a $250,000 fine and a minimum of 3 years supervised release on each count.

The defendants were charged based on a lengthy joint investigation by the Drug Enforcement Administration and the Washington County Multi-jurisdictional Drug Task Force. Also assisting in the investigation were the Rock County Sheriff’s Department, Homeland Security Investigations, the U.S. Postal Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Wisconsin Department of Justice - Division of Criminal Investigations, and the Maui Police Department. The case is being prosecuted by Assistant United States Attorney Karine Moreno-Taxman.

In making this announcement, United States Attorney James L. Santelle stated: “This  important law enforcement action—identifying, apprehending, and bringing to justice a group of people whose drug dealing and related criminal conduct has compromised the safety and security of communities in Washington County, throughout the Eastern District of Wisconsin, in Hawaii, Illinois, Minnesota, and elsewhere—reflects the continuing, targeted, and effective work that we pursue on behalf of all of the people of our nation. The result of that focused investigative and prosecution strategy is that thirteen defendants have been charged with engaging in a sophisticated conspiracy to distribute Methylone and to profit from the subsequent sale of it.  The fact that virtually all of them are now in custody, facing significant prison terms and likely to lose the assets that they have acquired, is rightly viewed as the appropriate and anticipated response to this kind of destructive behavior.  It is also representative of the sort of success that we have in combating the illegal acquisition, transfer, sale, and distribution of illegal drugs of all kinds.” Santelle specifically commended the professional work of all of the agencies participating in the investigation of the case and, in particular, the Drug Enforcement Administration and the Washington County Multi-jurisdictional Drug Task Force.

Jack Riley, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration, which includes Wisconsin, praised the dedication and teamwork of the agents, officers and prosecutors involved in this investigation.  "The indictments of these 12 individuals, should serve as a notice to criminal networks that allegedly traffic in narcotics that the Drug Enforcement Administration and its law enforcement partners stand shoulder to shoulder in our commitment and we will use every legal avenue available to hold the leaders of those organizations accountable."

An indictment is a method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.

United States Attorney James L. Santelle, of the Eastern District of Wisconsin, announced that on July 9, 2014, Dustin J. Burdick (age: 24) of Oshkosh, Wisconsin, was sentenced to 30 months in federal prison by Chief United States District Judge William C. Griesbach. Burdick had previously entered a guilty plea to a single count of conspiracy to distribute heroin.

According to the plea agreement and other documents filed with the court, Burdick was recruited by his friend Sherman M. Threets, to act as a dealer in Threets’ heroin distribution business.  In this role, Burdick sold heroin on numerous occasions to a confidential informant working on behalf of law enforcement.

In pronouncing sentence, Chief Judge Griesbach chastised Burdick for his role distributing “poison” in the Lake Winnebago area, noted the devastating effect that heroin has had throughout northeast Wisconsin, and pointed to numerous recent overdose deaths as evidence of the scourge that heroin presents in our society. In addition to the prison sentence, Burdick was ordered to spend an additional 5 years on supervised release.

The case was investigated by the Lake Winnebago Area Metropolitan Enforcement Group and the Oshkosh Police Department.  The case was prosecuted by Assistant United States Attorney Daniel R. Humble.

United States Attorney James Santelle announced that four bank robbers were recently sentenced in federal court in Green Bay for charges stemming from a bank robbery on December 27, 2013, of the BMO Harris Bank, located in Black Creek, WI.

Chief United States District Judge William C. Griesbach sentenced Samuel H. McGee, (age: 25) of Waukegan, Illinois and Clemmie L. Carter, (age: 23) of Appleton, Wisconsin to 11.5 year terms of prison followed by 5 years of supervised release. Lucky Charleston, (age: 23) of Fayetteville, Georgia was sentenced to 9 years in prison followed by 5 years of supervised release and Yolanda Barnes, (age: 19) of Chicago, Illinois received a 4 year prison term followed by 5 years of supervised release.

According to documents released in court McGee, Carter, and Charleston entered the bank shortly after it opened on December 27, 2013. All three individuals wore a mask and carried a loaded firearm. McGee, Carter and Charleston pointed their firearms at the bank employees and ordered them to the ground. McGee later pointed the assault style rifle he was carrying at a customer who entered the bank. Carter and Charleston stole money from several bank drawers. They fled the bank in a car driven by Barnes. Several hours after the bank robbery, Town of Menasha Police officers, working in conjunction with investigators from the Outagamie County Sheriff Department, saw a vehicle matching the description of the getaway car. The occupants of that vehicle, identified as Carter, McGee, and Barnes were arrested. Charleston was later found at a motel room where officers recovered bank funds, the firearms used during the bank robbery, and the clothing worn.

This case was investigated by the Outagamie County Sheriff Department, Town of Menasha Police Department, the Federal Bureau of Investigation and the Outagamie County District Attorneys’ Office. The case was prosecuted by Assistant United States Attorney William Roach.  

United States Attorney James L. Santelle announced that Norman W. Corn Jr., (age: 47), of Suring, located on the Menominee Indian Reservation, in the State of Wisconsin, was sentenced on July 1, 2014, to 262 months of imprisonment, followed by a term of life on supervised release. The sentence was the result of a guilty plea by Corn on April 7, 2014, to a federal information charging him with two counts of sexually abusing a person incapable of appraising the nature of the conduct. 

The investigation revealed that during the summer of 2013, Corn sexually abused an eight-year-old female child, who turned nine years of age during the summer, at a residence on the Menominee Indian Reservation.  The child indicated indicated that on two specific occasions Corn sexually assaulted her. During an interview with law enforcement officers Corn admitted that he sexually assaulted the child.   

The case was investigated by the Menominee Tribal Police and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Benjamin L. Whittemore.

United States Attorney James L. Santelle announced that on July 2, 2014, Prince Rashada (45) of Milwaukee, WI, was sentenced to 24 months imprisonment for filing false federal tax returns based on an indictment issued in 2008.  

Rashada fled the United States after the indictment was returned. In 2013, he was located by the United States Marshals Service.  Rashada devised and executed a scheme to obtain payment of false claims for refunds from the Internal Revenue Service. The scheme encompassed the 2004, 2005 and 2006 tax years and involved Rashada electronically filing 72 fraudulent claims for federal refunds totaling approximately $277,000.

Rashada recruited unemployed individuals to file the returns. He portrayed himself as a legitimate tax preparer and told individuals who thought they could not file due to their unemployment that they could. Rashada then made up a wage amount and occupation to list on the tax returns. After receiving the refund, he paid the recruited individuals a portion of the funds and kept the remainder, typically a fee of $1,000, for himself. Rashada was also ordered to pay restitution to the IRS totaling approximately $160,000 for the losses incurred.

This case was investigated by the Internal Revenue Service Criminal Investigation and the United States Marshal’s Service. The case was prosecuted by Assistant United States Attorney Lisa A. Wesley.

United States Attorney James L. Santelle announced that a Marinette business man pleaded guilty to tax evasion in federal court in Green Bay yesterday. Pursuant to a plea agreement, Joseph Wilke (age 56) pleaded guilty to evading taxes he owed in 2007. As part of his plea agreement, Wilke, who operates a heating and air conditioning business in Marinette, acknowledged that during the years 2007 - 2009 he failed to report more than $130,000 of income he earned from a side-business and, thereby, under reporting his federal taxes by more than $50,000.

Based on his plea, Wilke faces up to 5 years in prison and a fine of up to $250,000.  As part of his plea, Wilke also agreed to make full restitution to the IRS for his unpaid taxes, interest, and penalties, which total more than $108,000. Wilke is scheduled to be sentenced on September 29, 2014. He was released on bond pending his sentencing.

The case was investigated by the Internal Revenue Service Criminal Investigation. The case was prosecuted by Assistant United States Attorney Matthew L. Jacobs.

James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that a federal grand jury has indicted John C. Noggle, on three-felony counts relating to the misuse of welfare benefit plans under Section 419A(f)(6) of the Internal Revenue Code. Noggle is accused of using the welfare benefit plans to conceal his clients’ basis in life insurance and annuities, which resulted in the underreporting of income. Specifically, the grand jury charged Noggle with conspiring to defraud the United States in violation of 18 U.S.C. § 371, and for filing false income tax returns in violation of 26 U.S.C. § 7206(2). The case was investigated by agents from the Internal Revenue Service-Criminal Investigation (“IRS-CI”).
 
 “Those who misuse welfare benefit plans by running their compensation through layers of complicated trusts and insurance policies will be vigorously investigated by federal law enforcement,” said Kelly R. Jackson, Special Agent in Charge of the IRS Criminal Investigation office in Milwaukee. Special Agent in Charge Jackson added “We encourage anyone with information about these types of schemes to come forward and speak with federal authorities.”

It should be noted that an indictment is merely the formal method of charging an individual and does not constitute inference of his guilt. An individual is presumed innocent until such time, if ever, that the government establishes his guilt beyond a reasonable doubt.

United States Attorney James L. Santelle announced today that Stephen C. VanderBloemen, CPA, CFF, has been selected as the monitor who will oversee Miron Construction Company, Inc. as required by the Non-Prosecution Agreement (NPA) between Miron and the United States of America. The Non-Prosecution Agreement, pursuant to which Miron made a $ 4 million dollar payment to the United States of America, was announced on April 16, 2014.  Mr. VanderBloemen’s work as the monitor on Miron is expected to begin immediately.

 Mr. VanderBloemen is the managing partner of The VanderBloemen Group. He has more than 43 years of experience in public accounting, including 41 years serving primarily construction contractors, construction suppliers, credit grantors to contractors (sureties and bankers), and construction industry associations.  His group, the VanderBloemen Group CPAs & CFFs (TVG), has earned a national reputation for excellence and operates from offices located in Waukesha, Mayville, Fond du Lac, and Juneau, Wisconsin.  TVG provides a wide range of services to contractors, including assistance with project estimating, contract management, project compliance, monitoring, and accounting. 

 Mr. VanderBloemen is a graduate of Concordia College, attended graduate school at Marquette University, and has shared his expertise through the teaching of others at the Milwaukee School of Engineering, focusing on that academic institution’s Construction Management Degree Program.  Mr. VanderBloemen also devotes more than 100 hours of his time each year to construction industry-related training courses through organizations like the Associated General Contractors (AGC) of America.  He is a published author in multiple journals and the co-author of the AGC of America’s “Construction Estimating & Bidding - Theory, Principles, Process” (Text Book 1st and 2nd Editions).  Mr. VanderBloemen has also been a featured speaker at National AGC events.

 In announcing Mr. VanderBloemen’s appointment, United States Attorney Santelle  addressed the reasons why the United States Department of Justice required a monitor in this case.  Specifically, United States Attorney Santelle explained that a criminal investigation, led by the Federal Bureau of Investigation, revealed that Miron had been obtaining funds from school districts by intentionally inflating the wages Miron allegedly had paid its employees.  United States Attorney Santelle stated further that an in-depth analysis of five particular school district projects and a random sampling from a pool of approximately 150 total school projects showed clearly that, when Miron billed school districts for “actual wages paid,” contrary to the express language and terms of its contracts, Miron systematically and intentionally added not only overhead costs but also a hidden profit “multiplier” totaling up to an additional 45%.  United States Attorney Santelle explained that the remedial work of the appointed monitor would help to ensure that Miron ceased its practice of intentionally overbilling school districts in this manner.

United States Attorney Santelle added that the monitor would also be responsible for helping to ensure that Miron would no longer engage in “cost smoothing.”  In this regard, United States Attorney Santelle explained that the criminal investigation revealed that Miron routinely transferred costs from less profitable projects to unrelated projects that could absorb the additional costs and still appear to be profitable.  The result of this conduct was that all of Miron’s projects appeared profitable to outsiders.  As revealed by the investigation, this “cost smoothing” also allowed Miron to close the discrepancies in its accounting records that were caused by Miron’s inflation of labor costs in its bills to public school districts.  Without “cost smoothing,” Miron’s financial statements on the school projects could not be reconciled with its inflated school district billings, Santelle explained.

Finally, United States Attorney Santelle confirmed that Miron recently paid the United States the $ 4 million sum required by the NPA and that the United States is in the process of distributing that money to the five school districts identified in that agreement.

United States Attorney James L. Santelle of the Eastern District of Wisconsin announced today that a special community gathering will be held on Wednesday, July 2, 2014, from 8:30 a.m. to 4:30 pm to commemorate the 50th Anniversary of the Civil Rights Act of 1964. This special event will be held at Marquette University Law School, Eckstein Hall, located at 1215 West Wisconsin Avenue in Milwaukee.

The public is invited to attend this special community gathering as we remember the leaders, the challenges, and the achievements of the Civil Rights Movement and affirm our contemporary commitment to promote the purposes and the goals of the Civil Rights Act of 1964.

Welcoming and commissioning remarks will be provided by United States Attorney Santelle, Ralph Hollmon, President and CEO of the Milwaukee Urban League, Luis “Tony” Baez, Executive Director of Centro Hispano, James H. Hall, Jr., President of the Milwaukee Branch of the NAACP, City of Milwaukee Mayor Tom Barrett, and Milwaukee County Executive Chris Abele.

The program will include a video of President Lyndon B. Johnson signing the Civil Rights Act on July 2, 1964, and a special presentation by Professor Andrew W. Kahrl of the Carter G. Woodson Center for African-American and African Studies at the University of Virginia on the “The Significance of the Civil Rights Movement of the 1960s: Remembering the Leaders, the Challenges, and the Achievements.”

The keynote presentation, “Reflections on the Legacy of the Civil Rights Act and on the Civil Rights Challenges in Contemporary America,” will be delivered by the Honorable Jocelyn Samuels, Assistant Attorney General for Civil Rights, United States Department of Justice. Assistant Attorney General Samuels will also participate in an interactive panel discussion with Messrs. Hollmon and Hall and Dr. Baez on the present initiatives and current challenges in the area of civil rights enforcement for the nation, the State of Wisconsin, and the Greater Milwaukee Area.

This event is co-sponsored by the Office of the United States Attorney for the Eastern District of Wisconsin, the Community Relations Service of the United States Department of Justice, the Milwaukee Urban League, Centro Hispano, and the Milwaukee Branch of the NAACP.

Members of the media should call Deputy Public Information Officer Elizabeth Makowski at (414) 297-1700 to confirm their attendance.

United States Attorney James L. Santelle announced that on June 25, 2014, Billy Cannon, Sr. (49) of Milwaukee, WI, was sentenced to 48 months in prison for wire fraud and money laundering.  His incarceration will be concurrent to a 16 year sentence he received earlier this year in state court for drug and firearm offenses. 

From at least June 2006 through July 2007, Cannon worked as a mortgage broker and used straw buyers to fraudulently obtain mortgages for numerous properties on the north and northwest side of the city of Milwaukee.  Loan applications submitted to lenders by Cannon contained material misrepresentations which made the straw buyers more appealing candidates for a mortgage.  The straw buyers almost uniformly defaulted on the loans.  In all, nearly a million dollars was lost by lenders as a result of the scheme. Cannon has been ordered to pay restitution to the lenders for the losses incurred.    

This case was investigated by the Internal Revenue Service Criminal Investigation and was   prosecuted by Assistant United States Attorney Lisa Wesley.

United States Attorney James Santelle announced today that after a four-day trial, a federal jury in the Eastern District of Wisconsin found  Christopher A. Seifer (age 43) of Westfield, WI guilty yesterday of fraudulently obtaining reimbursement payments from the Department of Labor’s Office of Workers' Compensation Program for medically related travel.

 On February 4, 2014, Mr. Seifer was charged in a five-count indictment alleging that he had submitted over 1,380 fraudulent claims seeking reimbursement from the federal government for mileage expenses that he falsely claimed to have incurred by driving to health clubs for rehabilitation.  The indictment alleges that Mr. Seifer did not, in fact, travel to the health clubs on many of his claimed dates of travel between March 28, 2006, and October 2, 2012, for which Mr. Seifer sought and received reimbursement of travel expenses totaling in excess of $84,000.  

 The evidence produced at trial demonstrated that Mr. Seifer defrauded the Department of Labor’s Office of Workers' Compensation Program, which provides disability-related benefits to federal workers who suffer disabilities as a result of work-related injuries, by submitting false travel reimbursement claims and obtaining payments on those false claims.   Mr. Seifer had formerly been employed by the United States Bureau of Prisons as an Electronics Technician at the Federal Correctional Institution in Oxford, Wisconsin, where he suffered work-related injuries and was then entitled to receive benefits, including medical benefits under the Federal Employees' Compensation Act.

In announcing the verdict, United States Attorney James L. Santelle stated: “This conviction and others like it reflect our continuing, focused work in investigating and prosecuting those individuals, including employees of the federal government, who wrongly use taxpayers’ monies for their own purposes.  The partnership among the United States Department of Labor and the United States Department of Justice in identifying and cataloguing many instances of fraud, including those of the sort that Mr. Seifer committed, is not only critical to our effective response to behaviors involving false claims but also reflects the unified mission and strategy of all law enforcement entities here in Eastern Wisconsin.”

 "We are pleased to work together with our law enforcement partners to pursue such significant fraud by federal employees" stated John F. Oleskowicz, Special Agent in Charge of the United States Department of Justice Office of the Inspector General, Chicago Field Office.  Oleskowicz continued "We hope that this verdict will serve to deter others from stealing federal funds."

This case was investigated by the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering & Fraud Investigations and the United States Department of Justice Office of the Inspector General, Chicago Field Office and was prosecuted by Assistant United States Attorneys Scott Campbell and Benjamin Proctor.

United States Attorney James L. Santelle announced that Sunday Uwubiti (61 years old) of Milwaukee, Wisconsin was sentenced in federal court for aiding and assisting in the filing of false federal income tax returns.  United States District Judge Rudolph T. Randa sentenced Uwubiti to twenty-four months in prison and ordered him to cooperate with the IRS. Judge Randa also placed Uwubiti on one year of supervised release.

 In January 2014, Uwubiti was charged in a criminal information with two counts of aiding and assisting in the filing of false federal income tax returns, in violation of Title 26, United States Code, Section 7206(2).  According to records filed in court, Uwubiti operated a tax return preparation business using the name Trustee Tax Service. During the period from approximately January 2010 through April 2011, Uwubiti, and others employed and supervised by Uwubiti at Trustee Tax Service, prepared and filed false and fraudulent federal income tax returns for third parties. These returns, the majority of which were electronically filed with the Internal Revenue Service, sought income tax refunds to which the taxpayers were not entitled. At least 99 false and fraudulent income tax returns were filed seeking more than $448,000 in federal income tax refunds.

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

United States Attorney James L. Santelle announced that Lisa A. Lewis (age: 49) of Green Bay, Wisconsin, was sentenced in federal court in Green Bay for wire fraud. Chief United States District Judge William C. Griesbach sentenced Lewis to a fifteen-year term of imprisonment and ordered her to pay in excess of $2 million in restitution to approximately thirteen elderly investors. Judge Griesbach also placed Lewis on supervised release for three years and ordered the forfeiture of a 2013 Chevrolet Camaro and Lewis’ interest in several residences to partially offset the restitution amount.

Lewis, a former financial broker, was sentenced following her earlier guilty plea to the charge of wire fraud, as part of a larger scheme, occurring over the course of approximately seven years, to defraud the investors. Generally, the scheme involved Lewis creating a joint account under her name and that of the victim-most often unbeknownst to the victim.  Without authorization, Lewis then transferred funds from the victim’s individual account, to the joint account, and then to one of Lewis’ personal accounts where she used the funds for personal expenses unrelated to the victim’s financial interest. Such unauthorized expenditures included the purchase of the Camaro, and use of investor funds to gamble at local casinos and pay personal expenses. As stated by many of the investors through their victim-impact statements, Lewis not only stole from their hard earned retirement accounts, but she did so after befriending the investors and ingratiating herself to them. 

This case was investigated by the Federal Bureau of Investigation and the Brown County Sheriff’s Department.  The case was prosecuted by Assistant United States Attorney William Roach.  

United States Attorney James L. Santelle announced that following a three-day jury trial, Ronald A. Dobek (age: 39), formerly of Milwaukee, WI was convicted yesterday of conspiring to export and exporting F-16 military parts to the Venezuelan Air Force (“VAF”) without a license or authority from the U.S. Department of State.  The jury returned guilty verdicts on all three counts of the  indictment that charged Dobek with conspiring to violate U.S. export laws and unlawfully exporting F-16 parts to Venezuela on December 29, 2007, and December 6, 2008.  Dobek faces a maximum term of imprisonment of 25 years.   Sentencing for Dobek has been scheduled for September 10, 2014, before Hon. Rudolph T. Randa, United States District Judge.

In furtherance of its security and foreign policy interests, the United States, through the State Department’s Directorate of Defense Trade Controls (“DDTC”), regulates and restricts the export of arms, munitions, implements of war, and defense articles, pursuant to the Arms Export Control Act, 22 U.S.C. § 2778.  The regulations promulgated by the State Department which govern such exports are known as the International Traffic in Arms Regulations (“ITAR”), 22 C.F.R. §§ 120-130.  The ITAR contain a list of defense articles and defense services subject to control by these regulations known as the United States Munitions List (“USML”), and is found at 22 C.F.R. § 121.1.   Defense articles are items and technical data “specifically designed, developed, configured, adapted, or modified for a military application.”  22 C.F.R. § 120.3.  No defense articles or defense services may be exported or otherwise transferred from the United States to a foreign national or foreign country without a license from the DDTC. 

On August 17, 2006, the United States Department of State announced that it would no longer authorize the export of defense articles and services to Venezuela.  Additionally, the State Department revoked all existing licenses and authorizations to export defense articles and services to Venezuela.  Thus, as of that date, it became illegal to export defense articles or services to Venezuela.

The evidence presented at trial showed that despite knowing about the U.S. embargo of Venezuela, Dobek conspired with a member of the VAF to supply the VAF with F-16 canopy seals for Venezuelan’s fleet of F-16 military jets.   The evidence showed that Dobek exchanged numerous emails with a member of the VAF in which they discussed obtaining the F-16 canopy seals and the need to keep their operation secret.  Dobek took other steps to conceal his illegal activity, including misidentifying the shipments as “t-molding” on shipping documents.  As a result, Dobek sent shipments of F-16 canopy seals to a member of the VAF in Venezuela on or about December 29, 2007, and December 6, 2008. 

In announcing this verdict, United States Attorney James L. Santelle stated: “Anyone who, like Ronald Dobek, elects to violate the Arms Export Control Act and the clear regulations implementing it will be investigated exhaustively—both domestically and internationally—and be convicted for crimes that jeopardize the safety and the security of our nation.  I commend specially the outstanding, professional work of the special agents of the Federal Bureau of Investigation, U.S. Department of Homeland Security, Homeland Security Investigations, the Department of Defense, Office of Inspector General and of the prosecuting attorneys and staff of my office whose tenacity and focus ensured that this kind of conspiratorial engagement with foreign entities was terminated—to the benefit of all Americans.”

The case was investigated by the Federal Bureau of Investigation, with assistance from the Department of Homeland Security, Homeland Security Investigations, and the Department of Defense, Office of Inspector General. The case was prosecuted by Assistant United States Attorneys Erica O’Neil and Michael Chmelar.

James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that on June 3, 2014, Karen Ann Sanchez (age: 38) was sentenced to 18 months in federal prison by Chief United States District Judge William C. Griesbach. She had previously entered a guilty plea to a charge of using a communication facility (i.e., a telephone) to facilitate the distribution of heroin.

According to her plea agreement and other documents filed with the court, Sanchez worked in concert with eight other co-defendants to facilitate the movement and delivery of heroin to the Marinette, Wisconsin, and Menominee, Michigan areas from a primary supplier in Chicago.     

The court noted the “devastating effect” that heroin use has had in the Marinette / Menominee region.  The court described the coordinated actions of Sanchez and her co-defendants as essentially “a drug co-operative” designed not for the purpose of creating a profit, but to increase purchasing power and increase the frequency of coordinated “heroin runs” to Chicago. 

The case was investigated by Special Agents from the Wisconsin Department of Justice, Department of Criminal Investigation, the U.S. Drug Enforcement Administration, the Marinette Police Department, Marinette Sheriff’s Office, Menominee (Michigan) Police Department, Menominee (Michigan) Sheriff’s Office, Wisconsin High Intensity Drug Trafficking Area (HIDTA) Task Force, Chicago HIDTA Task Force, Chicago Police Department, Northeast Wisconsin Tri-County Drug Enforcement Group, and the Manitowoc County Sheriff’s Office.  The case was prosecuted by Assistant United States Attorney Daniel R. Humble.

James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that on June 3, 2014, Lamarcus J. Cargill (age: 27) of Chicago, Illinois, was sentenced to 72 months in federal prison by Chief United States District Judge William C. Griesbach. Cargill had previously entered a guilty plea to a single count of conspiracy to distribute heroin.

According to the plea agreement and other documents filed with the court, Cargill was recruited to come to the Fox Valley area by his brother-in-law and co-conspirator, Sherman M. Threets, to act as the “muscle” in Threets’ heroin distribution business. In this role, Cargill was expected to collect drug debts, deliver heroin, and on one occasion, commit the arson of a vehicle of an individual who owed the drug conspiracy money.      

In pronouncing sentence, Chief Judge Griesbach noted the devastating effect that heroin has had throughout northeast Wisconsin, as well as the highly dangerous nature of the arson carried out by Cargill in his attempt to collect on a drug debt.  Chief Judge Griesbach concluded that a “just result” could only be achieved through a considerable prison sentence.  In addition to the prison sentence, Cargill was ordered to spend an additional 72 months on Supervised Release.

The case was investigated by the Lake Winnebago Area Metropolitan Enforcement Group, the Winnebago County Sheriff’s Office and the Oshkosh Police Department.  The case was prosecuted by Assistant United States Attorney Daniel R. Humble.

Today a federal grand jury in Milwaukee returned a two count indictment charging Paul Carter, aka Pimpin’ Paul, with sex trafficking offenses dating from 2012 through 2013, the Justice Department announced. 

Carter, 44, of Milwaukee, is charged with one count of sex trafficking of an adult female by force, threats of force, fraud and coercion.  Carter is also charged with one count of sex trafficking of a minor.  Carter allegedly used force, threats of force, fraud and coercion to cause the victim to engage in a commercial sex act while knowing that the victim was under the age of 18.  If convicted, Carter faces a statutory maximum sentence of life in prison on each charge. 

The case was investigated by the Human Trafficking Task Force for the Eastern District of Wisconsin, which includes law enforcement officers from the FBI, Homeland Security Investigations, Wisconsin Division of Criminal Investigation and the Milwaukee Police Department.  The case is being prosecuted by Assistant U.S. Attorney Karine Moreno-Taxman of the Eastern District of Wisconsin and Trial Attorney Daniel H. Weiss of the Civil Rights Division's Human Trafficking Prosecution Unit.

An indictment is merely an accusation, and the defendant is presumed innocent until proven guilty.

United States Attorney James L. Santelle announced today that Leslie A. Miller, (age: 50), of Keshena, Wisconsin located on the Menominee Indian Reservation, was sentenced on April 15, 2014, to 42 months of imprisonment, followed by a term of 10 years on supervised release. The sentence was the result of a guilty plea by Miller on January 17, 2014, to a federal indictment charging him with abusive sexual contact with a person under the age of 12 years.

The investigation revealed that around January 1, 2013, Leslie A. Miller, an enrolled member of the Menominee Indian Tribe of Wisconsin, his wife, and a 10-year-old female were watching a movie while lying in bed. After his wife went to sleep, Miller sexually assaulted the child. During a subsequent interview, Miller admitted that he assaulted the child.

This case was investigated by the Menominee Tribal Police and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Benjamin L. Whittemore. .

James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that on May 8, 2014, Michael David Peak (age: 40) and Shawn Allen Klatt (age: 33) both of Marinette were sentenced to 24 months and 36 months respectively by Chief United States District Judge William C. Griesbach. Each had previously entered a guilty plea to a charge of using a communication facility (i.e., a telephone) to facilitate the distribution of heroin.

According to their plea agreements and other documents filed with the court, Peak and Klatt worked in concert with seven other co-defendants to facilitate the movement and delivery of heroin to the Marinette, Wisconsin, and Menominee, Michigan areas from a primary supplier in Chicago. Peak and Klatt were the first of nine defendants facing sentencing.    

The court noted the “serious and dangerous nature” of the defendants’ actions, as well as the “devastating effect” that heroin use has had in the Marinette and Menominee region.  The court described the coordinated actions of Peak, Klatt, and their co-defendants as essentially “a drug co-operative” designed not for the purpose of creating a profit, but to increase purchasing power and increase the frequency of coordinated “heroin runs” to Chicago. 

The case was investigated by Special Agents from the Wisconsin Department of Justice, Department of Criminal Investigation, the United States Drug Enforcement Administration, the Marinette Police Department, Marinette Sheriff’s Office, Menominee (Michigan) Police Department, Menominee (Michigan) Sheriff’s Office, Wisconsin HIDTA Task Force, Chicago HIDTA Task Force, Chicago Police Department, Northeast Wisconsin Tri-County Drug Enforcement Group, and the Manitowoc County Sheriff’s Office.  The case was prosecuted by Assistant United States Attorney Daniel R. Humble.

#   #   #

United States Attorney James L. Santelle announced that George W. Curtis (77 years old) of Pickett, Wisconsin was sentenced in federal court in Green Bay yesterday for failing to pay federal income taxes he owed for the years 2007 - 2009.  Chief United States District Judge William C. Griesbach sentenced Curtis to six months in prison and ordered him to pay the IRS approximately $380,000 in taxes he failed to pay. Judge Griesbach also placed Curtis on supervised release for one year and ordered him to pay the costs of prosecution, in the amount of $3,878.28.

Curtis who is a lawyer practicing in Oshkosh, Wisconsin, was convicted after a jury trial of three counts of willfully failing to pay the taxes he owed for those years.  While Curtis filed tax returns for these years reporting his income and taxes, he paid none of the taxes. In addition, Curtis has yet to pay taxes he owed for the years 2003 and 2004. 

At trial, the government introduced evidence that during the years 2007 – 2009, Curtis’ law practice generated a profit of approximately $1.1 million and that he used those funds to make personal expenditures totaling more than $1 million.  Nonetheless, Curtis paid none of the federal income taxes he owed for those years.

United States Attorney James L. Santelle announced today that a federal criminal complaint was issued charging three individuals with the April 17, 2014 armed robbery of the BMO Harris Bank located on Appleton Avenue in Menomonee Falls, Wisconsin.

The criminal complaint charges Zachary M. Ellis (21), Christopher R. Jacko (21), and Lindsey E. Fischer (21), with one count of armed bank robbery, in violation of Title 18, United States Code, Sections 2113(a) and 2113(d), and one count of brandishing a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c).

According to the criminal complaint, Ms. Fischer was a bank employee.  The complaint alleges that after robbing the bank at gunpoint, Mr. Ellis and Mr. Jacko fled in a white vehicle. Mr. Ellis and Mr. Jacko ultimately abandoned the vehicle following a chase by Menomonee Falls police.  Law enforcement later located and arrested Mr. Ellis and Mr. Jacko.

Each of the defendants appeared in federal court this afternoon, and all three were detained pending trial.

The case is being investigated the Menomonee Falls Police Department and the Milwaukee Division of the Federal Bureau of Investigation (FBI).  This case is being prosecuted by Assistant U.S. Attorney Margaret Honrath.

The public is cautioned that a criminal complaint is merely a formal method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.

On April 16 & 17, 2014, some local media inaccurately reported on one of the penalties associated with a grand jury indictment. This corrects that media misstatement.

On April 1, 2014, a federal grand jury returned a 25-count indictment against 27 defendants on drug trafficking and money laundering offenses.  Count Five of the indictment alleges that co-defendants Kevin R. Arms, John Bailey and Phillip Moffet used a firearm in furtherance of a drug trafficking offense.  That count also alleges that their use of the firearm caused the death of another person.  This alleged offense is death penalty eligible.  Information about how the U.S. Department of Justice reviews death penalty eligible cases prior to making a determination on whether the death penalty will actually be sought by federal prosecutors, is availalble at the following links:

http://www.justice.gov/usao/eousa/foia_reading_room/usam/title9/10mcrm.htm

http://www.justice.gov/criminal/about/ccs.html

To see the original press release:  http://www.justice.gov/usao/wie/news/2014/pr20140416_Twenty-Seven_Indicted.html

Assitant Chief of Police Kurt Liebold, MPD; James Santelle, USA, and Jim Bohn, DEA

United States Attorney James L. Santelle announced today that an indictment was unsealed in federal court charging 27 defendants in a poly-drug conspiracy case which also includes homicide, money laundering, and firearms offenses.

The following defendants are charged with conspiracy to distribute controlled substances, including heroin, crack cocaine, marijuana, and five kilograms or more of cocaine: Kevin R. Arms (40), John Bailey (37), Trevan Brown (29), Cecil Arms (70), Timothy Cunningham (44), Maurice Handy (42), Roosevelt Lee (40), Phillip Moffett (32), Brandon Owens (30), Joe Parker (73), Sam Spears (37), Roger Walker (33), and Carl Wilson (41). In addition, John Cleveland (38), Demerius Sholar (28), Ronnie Reid (45), Kyle Carrington (22), and Brandon Trotter (27) are charged with possession with intent to distribute or distribution of controlled substances.

Kevin R. Arms, John Bailey, and Phillip Moffett are charged with causing death by discharge of a firearm. John Cleveland, Roosevelt Lee, Brandon Owens, Roger Walker, Carl Wilson, Kyle Carrington, Brandon Trotter are charged with possession of firearms in furtherance of drug-trafficking offenses.

Kevin R. Arms, Cecil Arms, Kevin C. Arms (21), Shenese Arms (33), Shenita Arms-Nicholas (33), and Tremell Nicholas (34) are charged with money laundering offenses.

Malik Danun (28) is charged with obstruction of justice. Ricky Shaw (38) and Patricia Arms (65) are both charged with misprision of a felony. Katilia Jackson (26) and Brenda Arms (55) are both charged with maintaining a drug-involved premises. All of the defendants currently reside in Milwaukee, except for Kevin R. Arms (Pewaukee), Ricky Shaw (Atlanta, GA) and Malik Danun (Atlanta, GA).

Today, law enforcement officers arrested 18 of these defendants. Three were already in custody. Six are still at large, including: Trevan Brown, John Cleveland, Ronnie Reid, Demerius Scholar, Sam Spears, and Roger Walker. In addition, law enforcement executed eight search warrants and recovered 31 firearms and approximately $143,000.

The defendants were charged based on a multi-year investigation by law enforcement officers from the U.S. Department of Justice, Drug Enforcement Administration, the Milwaukee Police Department, the Wisconsin Department of Revenue, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, assisted by the Wisconsin Department of Justice- Division of Criminal Investigations, and the Milwaukee High Intensity Drug Trafficking Area (HIDTA) Heroin Task Force.

Law enforcement agencies assisting with today’s arrests include the U.S. Marshals Service, Waukesha Metro Drug Unit, and the Milwaukee County Sheriff’s Department.

The drug conspiracy and firearms offenses are all punishable by up to life in prison. The other offenses have lower maximum penalties, including: money laundering (20 years); maintaining a drug involved premises (20 years); possession with intent to distribute or distribution of controlled substances (20 years); obstruction of justice (20 years); and misprision of a felony (3 years).

This case is being prosecuted by Assistant U.S. Attorneys Erica O’Neil and Brian Resler.

An indictment is merely the formal method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.

United States Attorney James L. Santelle today publicly released a Non-Prosecution Agreement between the Office of the United States Attorney for the Eastern District of Wisconsin and Miron Construction Company, Inc., David G. Voss, Jr., and Dean J. Basten.  Voss is half owner of Miron Construction and serves as its President and Chief Executive Officer.  Basten serves as Miron’s Secretary, Treasurer, and Chief Financial Officer.  Miron Construction Company, Inc. is headquartered in Menasha, Wisconsin, with regional offices throughout Wisconsin and in Iowa, Michigan, and Minnesota.  Miron employs more than 1,200 individuals at its various offices and in 2013 reported sales in excess of $680 million.

The Non-Prosecution Agreement brings to a conclusion a multi-year investigation by the Federal Bureau of Investigation (FBI) of Miron’s billing practices in Wisconsin public school construction projects, Miron’s financial reporting practices in these and other construction projects, and Voss’s and Basten’s role in these billing and financial reporting practices.

United States Attorney Santelle stated that, among other things, the three-year Non-Prosecution Agreement: (1) calls for the appointment of a Monitor to oversee Miron’s operations during the period of the Agreement; (2) requires Miron to pay $4 million to the federal government, which the United States Attorney’s Office will use to compensate five separate school districts; (3) requires Miron, in all future construction contracts, to disclose to its customers the actual labor rates it is charging the customer; (4) ends a practice known within Miron as “cost smoothing” so as to accurately report its costs, revenues, and income on individual construction projects; (5) replace its current accounting and auditing firm; and (6) adopt a document retention policy that is consistent with industry practices and in compliance with its construction contracts.

In releasing the agreement, Santelle stated: “In addition to obtaining restitution for the named school districts and appointing a Monitor to review Miron’s business operations, the other important consideration in reaching this agreement is the potential impact on more than 1,200 Miron employees—who were uninvolved in and unaware of the allegations that prompted the FBI investigation and resulted in this resolution.  If this matter had proceeded into a litigation posture, the jobs of all of those employees and those of many other individuals with jobs dependent on the business that Miron generates would be in peril.”

Santelle further stated that this was the first time that the U.S. Attorney’s Office had ever required an entity to agree to Monitor oversight.  “I am confident that the business monitoring, financial compensation, contract disclosure, accounting modification, and other critical terms and conditions of this agreement accomplish justice for the parties involved and collectively address well the interests of the people we serve,” Santelle noted. 

This matter was investigated by special agents of the Green Bay and Milwaukee Offices of the Federal Bureau of Investigation.  Assistant United States Attorneys Carol L. Kraft and Joseph R. Wall oversaw the investigation and led the negotiations that resulted in the Non-Prosecution Agreement.

 For additional information, contact Public Information Officer Elizabeth Makowski at (414) 297-1774.

#   #   #

(Miron Non-Prosecution Agreement )

James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that on April 14, 2014, Steven M. Pelnar (age: 50) of Mishicot, was sentenced to six months incarceration and three years’ probation by Chief United States District Judge William C. Griesbach.  Pelnar had previously entered a guilty plea to a single-count of marijuana cultivation. According to the plea agreement and other documents filed with the court, Pelnar operated a marijuana grow operation on his Mishicot area farm and was tending to 330 marijuana plants at the time of his arrest.      

The court also ordered Pelnar to pay a $5000 fine and entered an order of forfeiture for a twenty-acre parcel of land used to grow the drug. The forfeited land has a market value of approximately $50,000.

The case was investigated by Special Agents from the Drug Enforcement Administration and the Manitowoc County Sheriff’s Office.  It was prosecuted by Assistant United States Attorney Daniel R. Humble.

James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that on April 15, 2014, a federal grand jury in Milwaukee returned an indictment charging Stacy T. Jenson of Waterford, Wisconsin, also known as Stacy T. Foote (age 50).  Ms. Jenson is charged with seventeen counts of wire, mail, and credit card fraud in violation of Title 18, United States Code, Sections 1029(a)(2), 1341, and 1343.  Ms. Jenson was formerly the owner and operator of Elite Sports, through which she organized and promoted sporting leisure time events in southeast Wisconsin.

The indictment alleges that during the period from approximately January 2009 until March 2012, Jenson carried out a scheme to defraud certain business entities, primarily her employer at the time, Industrial Electric Wire & Cable, Inc. (“IEWC”), of New Berlin, Wisconsin.  During her employment there as an office assistant, IEWC made Jenson the company’s event planner, and in that capacity, gave her access to company credit cards and checks to use to arrange various company social events.  As part of her scheme, Jenson allegedly used IEWC credit cards and checks for purposes other than those which the company had authorized, often for activities in connection with her separate and part-time “Elite Sports” business.  The indictment further alleges that Jenson fraudulently obtained a $68,000 loan in connection with the scheme. 

According to the indictment, Jenson fraudulently obtained the loan and used IEWC checks and credit cards for unauthorized purposes to steal more than 1.9 million dollars. 

Each of the fifteen mail or wire fraud charges contained in the indictment carries a maximum possible penalty of up to twenty years in prison and a fine of up to $250,000, or both.  Each of the two credit card fraud charges contained in the indictment carries a maximum possible penalty of up to ten years in prison and a fine of up to $250,000, or both.   

This matter was investigated by the Federal Bureau of Investigation and has been assigned to Assistant United States Attorney Stephen A. Ingraham for prosecution. 

The public is cautioned that an indictment is merely the formal method of presenting charges in federal court and does not constitute evidence of the defendant’s guilt.  The defendant is presumed innocent until such time, if ever, as the government establishes her guilt beyond a reasonable doubt.

James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that on April 11, 2014, Tiffiny Harden (age 30) of Menomonee Falls, plead guilty before Judge Randa to filing false tax returns for over 20 taxpayers and fraudulently obtaining over $120,000 in tax refunds.   

Court documents indicate that Harden sought tax refunds by claiming false incomes, false education credits and/or claiming false dependents for the taxpayers. Several of the taxpayers told law enforcement officials that they did not know Harden and did not know how she got their information. Others stated that Harden had offered to help them fill out their returns and they provided her with their identifying information, but never heard back from her.  Many of the victims indicated that Harden had offered to fill out their tax returns for them, but had never provided her with the information regarding the employer, educational status, or the dependents listed in the returns using their identities.  At least two taxpayers did not know that they were claimed as dependents.  

Harden used the United States mail to receive and send false information to the IRS.  In addition, during the time she was receiving the tax refunds, she also received food stamps.  In order to receive this federal benefit, she claimed in her Food Share application to be homeless during that period and failed to disclose the fact that she had received over $100,000 from the fraudulent tax return scheme.

Based on this guilty plea, Harden faces up to 30 years in prison and fines of up to $510,000.  Harden has also agreed to pay restitution to the IRS in the sum of $120,125.00 and $400 to the U.S. Department of Agriculture, Supplemental Nutrition Assistance Program.

Harden's sentencing is scheduled for July 31, 2014.

This case was jointly investigated by the IRS (Criminal Investigative Division), the United States Postal Inspection Service and the United States Department of Agriculture.