Eastern District of Wisconsin

James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that on April 4, 2014, Jose Antonio Cortez-Ruiz (age: 26) was sentenced to 20 months in federal prison by Chief United States District Judge William C. Griesbach. Cortez-Ruiz had previously entered guilty pleas to counts of distribution of cocaine and aggravated illegal re-entry into the United States.

According to the plea agreement and other documents filed with the court, Cortez-Ruiz re-entered the country illegally in 2010 after being removed following his conviction for a felony, settling in the Chicago area. In October 2013, he was arrested in Manitowoc County after delivering a half-kilogram of cocaine to a confidential informant in exchange for $15,000.     

 The arrest of Cortez-Ruiz led to the arrest and prosecution of two high-level Chicago area drug suppliers currently being prosecuted in Cook County Circuit Court.        

The case was investigated by Special Agents from the Drug Enforcement Administration 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 and John T. Chisolm, Milwaukee County District Attorney announced today that 10 defendants were charged federally and 2 defendants were charged locally for engaging in animal fighting ventures.  The five federal indictments identified a total of 23 dogs possessed by the defendants for the purpose of participating in and training for dog fighting.  The defendants are charged with violations of either Title 7, United States Code, Section 2156(b) (buying, selling, delivering, possessing, training or transporting animals for participation in an animal fighting venture); or with violations of Title 18, United States Code,  Section 371 (conspiracy to commit the aforementioned crime).  All of the defendants are residents of Milwaukee, WI.  The defendants’ federal charges are as follows:

No of Counts Defendant/Age Charges Penalties

2

Tiana Arnold

18 U.S.C. §371
7 U.S.C. §2156(b)

For each count- 5 years, $250,000 fine, 3 years supervised release.

Demetrius Boyce, 45

7 U.S.C. §2156(b)

For each count- 5 years, $250,000 fine, 3 years supervised release.

2

Alicia Brown, 40

18 U.S.C. §371
7 U.S.C. §2156(b)

For each count- 5 years, $250,000 fine, 3 years supervised release.

2

Tyrone Lewis, 30

18 U.S.C. §371
7 U.S.C. §2156(b)

For each count- 5 years, $250,000 fine, 3 years supervised release.

2

Cheryl Richards, 56

18 U.S.C. §371
7 U.S.C. §2156(b)

For each count- 5 years, $250,000 fine, 3 years supervised release.

2

Gary Richards, 56

18 U.S.C. §371
7 U.S.C. §2156(b)

For each count- 5 years, $250,000 fine, 3 years supervised release.

4

Terry Robinson, 35

18 U.S.C. §371
7 U.S.C. §2156(b); 18 U.S.C. §1952(a)(3)-interstate travel or transportation in aid of unlawful activity

For each count- 5 years, $250,000 fine, 3 years supervised release.

1

Emmitt Smith, 37

7 U.S.C. §2156(b)

5 years, $250,000 fine, 3 years supervised release.

2

William Walker, 31

18 U.S.C. §371
7 U.S.C. §2156(b)

For each count- 5 years, $250,000 fine, 3 years supervised release.

2

Darry Wortham, 29

18 U.S.C. §371
7 U.S.C. §2156(b)

For each count- 5 years, $250,000 fine, 3 years supervised release.

Two defendants are charged with violations of Wisconsin statutes, namely: Travis L. Hazlett (age 31) and Thomas Zollicoffer (age 24).  Hazlett is charged in a four-count criminal complaint, including charges of Instigating Fights Between Animals and Mistreatment of Animals.  Both Charges are Class I felonies with a maximum penalty each of 3 years and 6 months imprisonment, and a $10,000 fine.  Zollicoffer is charged in a four-count criminal complaint with violations of the same statutes. 

Today, law enforcement officials arrested nine of the charged defendants. One individual, William Walker is still at large. Law enforcement executed six federal search warrants, whereupon they recovered 22 live dogs, 1 dead dog, 3 firearms, and other instrumentalities associated with dog fighting.

The defendants were charged after a long-term investigation conducted by the Milwaukee Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, in conjunction with the Milwaukee County District Attorney’s Office, the United States Attorney’s Office, the American Society for the Prevention of Cruelty to Animals (ASPCA), and the Milwaukee Area Domestic Animal Control Commission (MADACC).  The Drug Enforcement Administration, Milwaukee High Intensity Drug Trafficking Area, the Milwaukee County Sheriff’s Department, Greenfield Police Department, Wisconsin State Patrol, West Allis Police Department, Wisconsin Division of Criminal Investigation, United States Marshals Service, and Homeland Security Investigations also assisted in the investigation.

The cases are being prosecuted by Assistant U.S. Attorney Bridget J. Domaszek and Assistant District Attorney Kurt Benkley. 

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 announced today that the lead defendants in an eighteen (18) defendant indictment who were charged with various drug-trafficking and money laundering offenses have been sentenced to lengthy prison sentences by the Honorable Rudolph T. Randa. 

 The recently sentenced defendants are identified as Lamond a/k/a “Lamont” Clayton (age: 50) of Milwaukee who was sentenced to 91 months in prison and Chara Hortman-Brown (age: 37) of Milwaukee who was sentenced to 168 months in prison.  Both Clayton and Horton-Brown pled guilty to drug and money laundering conspiracies.

 This prosecution involved a second generation of the Edwards family, a north-side family run drug organization, with several of the same defendants and offspring of others, involved in the most recent criminal activity.  This family based organization distributed multi-kilograms of cocaine and heroin, in Milwaukee, and elsewhere from January 2010 to December 2012.  In addition, Clayton, Hortman-Brown, and others, in part, through structured deposits to financial institutions, laundered the illegal cash proceeds. 

 Law enforcement officers from the Wisconsin Department of Justice - Division of Criminal Investigation, Drug Enforcement Administration, Internal Revenue Service, Milwaukee High Intensity Drug Trafficking Area, United States Marshals Service, and the City of Milwaukee Police Department participated in this investigation.  This case is being prosecuted by Assistant United States Attorney Gail J. Hoffman. 

United States Attorney James L. Santelle announced that Prince Rashada, age: 45, (a.k.a. Romello Sinclair), pled guilty today to filing a false claim for a federal income tax refund, in violation of Title 18, United States Code, Sections 287 and 2.  At sentencing, Rashada faces a maximum of five years in prison and a fine up to $250,000.

 In 2008, Rashada and another individual were charged by a federal grand jury in the Eastern District of Wisconsin with defrauding the United States by filing fraudulent returns.  Rashada remained a fugitive after the indictment was returned.  However, in late 2013, he was apprehended by the United States Marshals Service.

 According to a written plea agreement in the case, between March 2005 and January 2007, Rashada and his co-defendant caused more than 100 false federal income tax returns to be filed with the Internal Revenue Service.  Rashada defrauded the United States by recruiting others to file fraudulent federal income tax returns, claiming wages that were never earned.  The fraudulent wages reported on the federal tax returns ranged from $11,000 to $16,000, with an average refund totaling $3,800. The defendant kept approximately $1,000 from each fraudulent income tax return he prepared and filed.   

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

United States Attorney James L. Santelle announced today that three men were indicted for the January 28, 2014 armed robbery of Mother’s Foods (formerly Magic Foods) located at 2879 N. 16th Street in Milwaukee, Wisconsin. Joshua Mueller (age: 23) of Milwaukee, Sedrick Brown (age: 26) of Milwaukee and Steven Bugni (age: 23) formerly from Milwaukee, were charged with 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. 

 The indictment alleges that on January 28, 2014, the defendants, armed with firearms, stole U.S. currency from Mother’s Foods. During the robbery, a store employee was shot, causing serious bodily injury.  If convicted, each man faces up to 20 years in prison on the armed robbery count and a minimum mandatory sentence of 10 years and up to life in prison on the charge of discharge of a firearm during a robbery. 

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

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

United States Attorney James L. Santelle, of the Eastern District of Wisconsin, announced that on March 11, 2014, Michael Wayne Lowstetter (age: 35) of Xenia, Ohio (formerly of Union Grove, Wisconsin) was sentenced to 30 months in a federal prison by United States District Judge Charles N. Clevert, Jr.  Lowstetter had previously pleaded guilty to two counts of mail fraud, in violation of Title 18, United States Code, Section 1341.   The District Judge also imposed a term of three years’ supervised release, to follow the term of imprisonment, and a special assessment of $200.

According to the plea agreement and other documents filed with the court, Lowstetter defrauded Shepherds Baptist Ministries of more than $400,000 during the 2009-2012 time frame by using his position as Vice President for Finance to divert funds to himself.   Shepherds Baptist Ministries is a faith-based organization headquartered in Union Grove, Wisconsin.  It provides vocational training and other services to individuals with intellectual disabilities.

In addition to the above term of imprisonment, Lowstetter will be required to pay restitution in the amount of $453,737.12 to Sheperds and its insurer.   In sentencing the defendant, Judge Clevert noted that the “ripple effects” of his crime, which involved a betrayal of trust, would continue to be felt by Sheperds Ministries and its clients and donors, and by Lowstetter’s family.  He also noted that, even in a case where the defendant accepts responsibility and has suffered on account of his actions, it is important that others be deterred from engaging in financial fraud by the imposition of a sentence of imprisonment.

The case was investigated by the Federal Bureau of Investigation.  It was prosecuted by Assistant United States Attorney Jonathan H. Koenig.

United States Attorney James L. Santelle announced today that Federal District Court Judge Rudolph T. Randa sentenced Milwaukee resident Tyrone McMillian (age: 32) to 77 months imprisonment to follow his 30 year sex-trafficking sentence handed down by Federal District Court Judge Charles N. Clevert, Jr. on November 6, 2013.  Today’s sentence followed McMillian’s February 5, 2014 conviction in federal court for, as a convicted felon, being in unlawful possession of firearms and ammunition.

The current case arose from the results of a July 6, 2011 search warrant executed by the Milwaukee Police Department at McMillian’s residence in Brown Deer, Wisconsin.  Officers recovered a loaded handgun, an assault rifle, and hundreds of rounds of ammunition for those and other weapons in the search.  That search also turned up evidence of McMillian’s involvement in a February 2011 theft of more than $325,000 in protein supplements from a warehouse in Dallas, Texas.  An affidavit filed by an agent from the Criminal Division of the Internal Revenue Service detailed McMillian’s receipt and expenditure of funds obtained from the subsequent sale of those protein supplements.  McMillian used the proceeds to purchase, among other things, a Bentley automobile for $79,500 and more than $40,000 of custom-made jewelry.  In addition to the vehicle and jewelry, Milwaukee Police Department officers seized $94,600 in cash during that search.  The cash, automobile, and jewelry were all forfeited to the United States.

 The case was investigated by detectives from the Milwaukee Police Department, agents from the Bureau of Alcohol, Tobacco and Firearms, and agents from the Federal Bureau of Investigation working through the Human Trafficking Task Force. This case and the sex-trafficking case, were prosecuted by Assistant United States Attorney Joseph R. Wall.

James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that on February 12, 2014, Jacob Allen Wilkens (age: 24) of Postville, Iowa, was sentenced by Magistrate Judge James R. Sickel to 24 months’ probation and ordered to pay $110,932.71 in restitution.

Wilkens had previously pled guilty for his participation along with members of the on-line hacker group “Anonymous” in a distributed denial of service attack against the Angel Soft bathroom tissue website in February and March of 2011. Angel Soft is a subsidiary of Koch Industries, the intended target of the attack.

 Wilkens and others utilized a “low orbit ion cannon” designed to flood the Angel Soft server with traffic with the intention of disrupting the website’s service. The Angel Soft server is located in Green Bay, Wisconsin. Koch Industries suffered several hundred-thousand dollars in loss as a result of the continuous attacks on several of its network servers over a three day span.

 The case was investigated by Special Agents from the Federal Bureau of Investigation field offices in Iowa and Wisconsin. It was prosecuted by Assistant United States Attorney Daniel R. Humble of the Eastern District of Wisconsin.

James L. Santelle, United States Attorney for the Eastern District of Wisconsin announced that on February 11, 2014, a federal grand jury returned a felony indictment against Todd David Doughty (age: 50), owner of the “Thunderbird Game Farm” in Chilton, Wisconsin, charging him with a single violation of the Migratory Bird Act in violation of 16 U.S.C. Sections 703(a), 707(b)(2) and 18 U.S.C. Section 2.  If convicted of the offense, the defendant faces up to two years imprisonment, a $250,000 dollar fine, one year on supervised release and a $100 special assessment.  

According to the indictment, Doughty engaged in the illegal sale of a migratory bird in violation of federal law.   Mr. Doughty is scheduled for arraignment in United States District Court in Green Bay, Wisconsin, on February 27, 2014 at 11:30 a.m.

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

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

United States Attorney James L. Santelle for the Eastern District of Wisconsin announced today that a federal grand jury returned an eleven-count indictment against Raymond V. Scott (age 39) of Joliet, Illinois, and Tarquin C. Saunders (age 42) of Hillside, Illinois, with conspiracy to use counterfeit access devices and use of counterfeit access devices (counterfeit credit cards bearing stolen credit card numbers) in violation of Title 18, United States Code, Sections 1029(a)(1) and (c)(1)(a)(i). If convicted of the use of counterfeit access devices each defendant faces a maximum penalty of up to 10 years’ imprisonment, a $250,000 fine, and 3 years on supervised release. If convicted of the conspiracy each defendant faces an additional 5 years’ imprisonment; a $250,000 fine; and 3 years’ on supervised release.

The primary purpose of the conspiracy was to obtain stolen personal identifying information, including stolen credit card numbers and stolen credit card authorization codes, manufacture counterfeit credit cards bearing the stolen credit card numbers, and then use the counterfeit credit cards to obtain goods from merchants located throughout the state of Wisconsin and elsewhere.

Scott and Saunders are also charged with aggravated identity theft in violation of Title 18, United States Code, Section 1028A, which carries a mandatory prison sentence of two years, to run consecutive to any other sentence that may be imposed in this case.  Congress enacted these penalties in 2004, as part of the Identity Theft Penalty Enhancement Act, to address the growing problem of identity theft. 

According to United States Attorney James L. Santelle, “Identity theft crimes are a top priority for the Department of Justice because of their devastating impact on individual victims, their high financial cost to society, and the strong connection between identity theft and other serious financial crimes such as bank and mortgage fraud.”

This case was investigated by the United States Secret Service and the Greenfield, Muskego and New Berlin Police Departments. Assistant United States Attorney Laura S. Kwaterski is prosecuting this case.

 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.

James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that on February 5, 2014, Christopher Michael Sudlik (age: 22) of St. Louis, Missouri, was sentenced by Chief United States District Judge William C. Griesbach.to 36 months’ probation, 60 hours of community service, and ordered to pay $110,932.71 in restitution.

Sudlik had previously pled guilty for his participation along with members of the on-line hacker group “Anonymous” in a distributed denial of service attack against the Angel Soft bathroom tissue website in February and March of 2011. Angel Soft is a subsidiary of Koch Industries, the intended target of the attack. 

Sudlik and others utilized a “low orbit ion cannon” designed to flood the Angel Soft server with traffic with the intention of disrupting the website’s service. The Angel Soft server is located in Green Bay, Wisconsin.  Koch Industries suffered several hundred-thousand dollars in loss as a result of the continuous attacks on several of its network servers over a three day span.

In sentencing the defendant, Judge Griesbach noted the “serious nature of the offense” and decried Sudlik’s “arrogance” for believing that his political beliefs were necessarily superior to those with whom he disagreed.  The judge admonished the defendant for “crossing the line” from appropriate political speech to an illegal and costly cyber-attack.

The case was investigated by Special Agents from the Federal Bureau of Investigation in St. Louis. It was prosecuted by Assistant United States Attorney Daniel R. Humble of the Eastern District of Wisconsin.

James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that Christopher A. Seifer (age: 43) of Westfield, Wisconsin, has been indicted by a federal grand jury in Milwaukee. The indictment charges Mr. Seifer with four counts of mail fraud, in violation of Title 18, United States Code § 1341, and one count of theft of government property, in violation of Title 18, United States Code, § 641.  

The indictment alleges that Mr. Seifer submitted over 1,380 false and fraudulent claim forms seeking reimbursement from the federal government for mileage expenses 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 at least 1,380 of the dates, between March 28, 2006 and October 2, 2012, for which Mr. Seifer sought reimbursement of travel expenses.  

As a result of the false travel-expense claims, according to the indictment, Mr. Seifer fraudulently obtained over $87,289.99 in reimbursement payments from 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.  According to the indictment, 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.

Each of the mail fraud counts subjects Mr. Seifer to a possible term of imprisonment of up to twenty years, a fine of up to $250,000, or both; a mandatory $100 special assessment; and up to three years of supervised release.   The theft of government property count subjects Mr. Seifer to a possible term of imprisonment of up to 10 years, a fine of up to $250,000, or both, plus a mandatory $100 special assessment and up to three years of supervised release.

In announcing this indictment, James L. Santelle, United States Attorney for the Eastern District of Wisconsin commented: “This prosecution 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 the many instances of fraud, as alleged in this indictment, is not only critical to our appropriate response to behaviors involving false claims but also reflects the unified mission and strategy of all law enforcement entities here in Eastern Wisconsin.”

“These efforts reflect the importance of ongoing collaboration between federal agencies” stated John Oleskowicz, Special Agent in Charge of the United States Department of Justice, Office of Inspector General, Chicago Field Office.  Oleskowicz continued “We hope that this prosecution will deter others from stealing federal funds.”

This case has been investigated by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering & Fraud Investigations and The U.S. Department of Justice Office of the Inspector General, Chicago Field Office.   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 announced today that, in Fiscal Year 2013 (October 1, 2012 – September 30, 2013), the Eastern District of Wisconsin Office collected $9,664,591.85 in civil and criminal cases.  Of this amount, $4,989,276.78 was recovered in criminal actions, and $4,675,315.07 was recovered in civil actions—all on behalf of the citizen-taxpayers nationwide.

Of the total recovered in civil and criminal matters, $350,357.94 was collected through the Treasury Offset Program—a centralized, nationwide program that identifies and offsets amounts from the federal and state income tax refunds of taxpayers who also owe monies to the United States.  Other government-allocated benefits are also subject to collections offsets of this type.

In addition, the Office of the United States Attorney worked in partnership with various litigating divisions of the United States Department of Justice in Washington, D.C. and other Offices of United States Attorneys to collect another $71,380,274.14 in cases initiated and pursued jointly.

Working with partnered law enforcement agencies, offices, and units, the Office of the United States Attorney also recovered $2,989,821.00 in asset forfeiture actions in Fiscal Year 2013.  These forfeited assets are deposited into the United States Department of Justice’s Asset Forfeiture Fund and are used to restore losses suffered by the victims of crime and to support various related types of law enforcement activities and functions.

In Washington, D.C., Attorney General Eric H. Holder, Jr. announced today that the United States Department of Justice collected approximately $8.1 billion in criminal and civil actions during the fiscal year ending on September 30, 2013.  The more than $8 billion in collections in Fiscal Year 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 United States Attorneys’ offices and the main litigating divisions in that same period.

This national total includes all monies collected as a result of Justice Department-led actions and negotiated civil settlements, including payments made directly to the Justice Department and indirect payments made to other federal agencies, states, and other designated recipients.  It necessarily includes some cases that were resolved in prior years but the proceeds of which were collected in Fiscal Year 2013.

“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload.  As these figures show, supporting our federal prosecutors is a sound investment.”

Joining the Attorney General in these announcements, Santelle commented:  “I am exceptionally proud of the professional, dedicated, and productive work of my staff—including all of our criminal and civil attorneys and our equally stellar professional support personnel—who are collectively responsible for bringing into the coffers of the United States Treasury these dramatically significant sums.  In our daily efforts to enforce the many civil and the criminal judgments entered in favor of the United States of America, we are aggressive yet even-handed, purposeful yet fair, and creative yet balanced in meeting one of our principal missions—that is, collecting monies due and owing to the federal government on behalf of the citizen constituents that we serve.”

Santelle continued: “The people of the Eastern District of Wisconsin should know that, in Fiscal Year 2013, just recently concluded, the total operational budget for our office was approximately $8 millionToday’s announcement confirms that, during that same time period, we recovered approximately 10 times that amount in local and shared matters—confirming that our partnered, governmental operation is strikingly efficient, demonstrably potent, and genuinely cost-effective.  I recognize especially the outstanding efforts of our Financial Litigation Unit, our Asset Forfeiture Unit, and our industrious colleagues in the many federal agencies, both civil and criminal, that we represent here in Eastern Wisconsin for this exceptional accomplishment.”

The Offices of the United States Attorneys, along with the litigating divisions of the United States Department of Justice, are responsible for enforcing and collecting civil and criminal debts of many kinds that are owed to the United States of America and that are due to the victims of various types of federal crimes.  The federal law contemplates that defendants convicted of those crimes pay restitution to those victims who have suffered physical injuries or financial losses.  While restitution is paid to the victims, criminal fines and related assessments are paid to the United States Department of Justice’s Crime Victims Fund, which distributes monies to state victim compensation and victim assistance programs.

As one example of a significant recovery in a criminal matter, Santelle described a case in which the defendant, Craig Kelly, had embezzled well over $1 million from his employer.  “Through that prosecution,” Santelle explained, “our office collected $1,039,881.00, which was used to satisfy a substantial percentage of the restitution due and owing to the defendant’s former employer.  Working in close and effective partnership with the United States Secret Service, the legal staff of our Asset Forfeiture Unit recovered those monies by tracing proceeds of the embezzlement scheme to valuable assets—including the defendant’s residence, retirement accounts, life-insurance policies, boat, wine collection, and timeshare interests.  The United States then forfeited those assets and turned over the resulting proceeds to the victim-former employer.”

Nationwide and locally, the largest civil collections amounts result from the litigation of affirmative enforcement actions, through which the Offices of the United States Attorneys and the United States Department of Justice recover federal dollars lost to fraud or other types of misconduct; these sums also include fines imposed on individuals and corporations for their proven violations of federal health, safety, civil rights, environmental, and other program-type laws.  These civil monetary obligations are enforced by the United States Attorneys and their staffs on behalf of many federal agencies—including but not limited to the United States Department of Health and Human Services, the United States Department of Housing and Urban Development, the United States Department of Education, the United States Department of Agriculture, the United States Department of the Treasury (including the Internal Revenue Service), and the United States Small Business Administration.

 As one of the notable examples of significant recoveries in the affirmative enforcement mission of his office, Santelle described the successful action against national hardware distributor W.W. Grainger, Inc. (“Grainger”) that paid $70 million following an investigation of false claims made in connection with contracts with the General Services Administration (“GSA”) and the United States Postal Service (“USPS”).  “The settlement in that matter focused on a contract entered into by the Lake Forest, Illinois-based company to sell hardware products to government customers through the GSA’s Multiple Award Schedule (“MAS”) program,” Santelle reported.  “The resolution of the claims disposed of issues identified during a GSA post-award audit of Grainger’s MAS contract.  Like many of our affirmative enforcement cases, this settlement was the product of highly coordinated, effectively pursued efforts among the Commercial Litigation Branch (Civil Division of the United States Department of Justice), the Office of the Inspector General of the GSA, the Offices of the Inspector General and of the General Counsel of the USPS, and the Civil Division in our office here in Eastern Wisconsin.”

For further information about the information and commentary in this release, please contact Public Information Officer Dean Puschnig, Office of the United States Attorney for the Eastern District of Wisconsin, at (414) 297-1700 or at dean.puschnig@ usdoj.gov.

# # #

United States Attorney James L. Santelle announced today that Federal District Court Judge William C. Griesbach sentenced Keshena resident Jacob J. Zhuckkahosee, age 20, to 135 months of imprisonment, followed by a term of life on supervised release. The sentence was the result of a guilty plea by Zhuckkahosee on October 15, 2013, to a federal indictment charging him with the sexual abuse of a person under the age of 16 years. 

The investigation revealed that on a date between June 15, 2013, and July 17, 2013, Jacob Zhuckkahosee, an enrolled member of the Menominee Indian Tribe of Wisconsin, sexually abused a four-year-old female child at a residence on the Menominee Indian Reservation.  Law enforcement interviewed Zhuckkahosee and he admitted that he was alone in the residence when the unattended victim arrived.  Zhuckkahosee stated that he unclothed the child and penetrated her anal opening with his right index finger.  According to Zhuckkahosee, he stopped the assault when the child started to cry.  Zhuckkahosee stated that he was sorry for his actions and was interested in getting treatment for his problem. 

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

United States Attorney James L. Santelle of the Eastern District of Wisconsin announced an indictment against Sherman M. Threets (age: 29), Lamarcus J. Cargill (age: 26), and Dustin J. Burdick (age: 23) all of Oshkosh, Wisconsin, for conspiracy to distribute over 100 grams of heroin in violation Title 21 United States Code, Sections 841(a)(1), (b)(1)(B), and Title 18 United States Code, Section 2.  

The indictment alleges that this occurred in the Lake Winnebago area. If convicted the defendants face a sentence of between 5 and 40 years imprisonment, a maximum fine of $5,000,000, a $100 special assessment, and a 4 year to life term of supervised release. 

This case was investigated by the Lake Winnebago Area Metropolitan Enforcement Group. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.

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

United States Attorney James L. Santelle of the Eastern District of Wisconsin, announced the filing of a criminal complaint alleging that nine people were involved with the distribution of heroin in Marinette County, Brown County and Menominee, Michigan.  Brian L. King (age: 55) of Chicago was charged with Distribution of Heroin in violation of Title 21 United States Code, Section 841(a)(1), (b)(1)(B). The other eight defendants listed in the table below are charged with conspiracy to distribution heroin in violation Title 21 United States Code, Sections 841(a)(1), (b)(1)(B), and Title 18 United States Code, Section 2.   

Name Age and Residency

Andrea M. Paris (nee Addington)

29, Marinette, Wisconsin

23, Marinette, Wisconsin

Shawn A. Klatt

33, Marinette, Wisconsin

Karen A. Sanchez

38, Marinette, Wisconsin

Gerald F. Pichette

50, Green Bay, Wisconsin

Michael D. Peak

40, Menominee, Michigan

Donald M. Myers

41, Menominee, Michigan

Eric E. Ebbole

42, Menominee, Michigan

According to charging documents it is alleged that King is responsible for the distribution of over 500 grams of heroin in the Marinette, Wisconsin, Green Bay, Wisconsin, and Menominee, Michigan areas. The others charged in the complaint are alleged to have conspired to fund, purchase, transport, distribute, and sell large amounts of heroin in northeast Wisconsin and Menominee, Michigan.

If convicted each defendant, faces a maximum penalty of between 5 and 40 years imprisonment, a maximum fine of $5,000,000, a $100 special assessment, and between 4 years to life on supervised release. 

This case was a joint investigation by the Drug Enforcement Administration and the Wisconsin Department of Justice Division of Criminal Investigation with assistance from the Milwaukee and Chicago High Intensity Drug Trafficking Area programs, the Marinette County Sheriff’s Department, the Brown County Sheriff’s Department, the Marinette Police Department, the Menominee County Michigan Sheriff’s Department and the Menominee Michigan Police Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.

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

United States Attorney James L. Santelle announced that Marshall D. Tourtillott, (age: 26), of Neopit, located on the Menominee Indian Reservation, in the State of Wisconsin, was sentenced on December 13, 2013, to 37 months imprisonment, followed by five years on supervised release. The sentence was the result of a guilty plea by Tourtillott on September 12, 2013, to a federal indictment charging him with sexual abuse of a minor.

According to information released in court Tourtillott engaged in sexual intercourse with a 15 year old female, at a residence located on the Menominee Indian Reservation. Prior to the sexual conduct, Tourtillott and others had pressured the child into drinking alcohol with them.

The case was investigated by the Menominee Tribal Police Department 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 Anthony J. Bruette, (age: 32), of Keshena, located on the Menominee Indian Reservation, in the State of Wisconsin, was sentenced on December 13, 2013, to 27 months imprisonment, followed by seven years on supervised release. The sentence was the result of a guilty plea by Bruette on September 12, 2013, to a federal indictment charging him with sexual abuse of a minor.

According to information released in court Bruette pursued and entered into a relationship with a 13 year old female. During the relationship, Bruette engaged in sexual intercourse and impregnated the child at his residence located on the Menominee Indian Reservation. 

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

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United States Attorney James L. Santelle announced today that United States District Judge Rudolf Randa sentenced Randy Martinez a.k.a Robin Lee Martinez, (age:30) of Sheboygan to ten years and four months in prison for his role in the Balderas Organization drug trafficking activities involving kilos of cocaine and marijuana transported from Texas to Wisconsin. Martinez, who pled guilty to these charges, was arrested on May 29, 2012 and detained in federal custody.

According to documents filed in court, beginning in the mid 1990's, the Balderas Drug Organization transported cocaine and marijuana from Texas to Wisconsin, where the price was much higher than in Texas. Instrumental in the Balderas Organization’s ability to sell drugs in Wisconsin was Randy Martinez’s role as leader of the organization in Wisconsin. The Balderas Organization was involved in conspiring to transport over 5 kilograms of cocaine and over 1,000 kilograms of marijuana to Wisconsin, including Sheboygan and Manitowoc Counties and the surrounding areas.

The Balderas Organization used different techniques to transport marijuana and cocaine from Texas to Wisconsin. One of the techniques utilized relied on the use of two cars; one would be filled with the narcotics, and the other would have members of the organization follow behind and make sure nothing went wrong with the load.  The Balderas Organization would fill a car with hidden narcotics in Texas and have it driven to Wisconsin by individuals often recruited by Randy Martinez to act as couriers.  The individuals recruited were persons they thought would not raise suspicions at the border crossings in Texas, with the hope that they would be able to cross the border and not be stopped by authorities.

With the help of Randy Martinez, the Balderas Organization devised a complex and successful system to conduct their illegal affairs.  Members of the Balderas Organization would get vehicles in Texas, either by renting them, buying them, or using vehicles belonging to others and would have them loaded with under 50 pounds of marijuana, (as such loads, if found in Texas, were often just seized, and those involved in the transport were released without charges).  The loads were then transported by others (often by individuals Randy Martinez recruited in Wisconsin) and contained marijuana and/or cocaine.  The Balderas Organization also used the bus service, postal service and others forms of transportation to bring drugs to Wisconsin.  Regardless of the method used, Randy Martinez was instrumental to finding the workers, supervising them, and making sure they did their jobs.

Randy Martinez also shielded some of the members of the Balderas Organization from being linked to the organization; he controlled the Wisconsin distribution of narcotics, and played an integral part in the money laundering of funds for the Balderas Organization.  When a load was brought from Texas to Wisconsin, Randy Martinez would cut up the narcotics, and distribute it to customers for the Balderas Organization.  In addition, Randy Martinez was involved in recruiting individuals to receive packages mailed from Texas to Wisconsin, and for the distribution in Sheboygan and Milwaukee.  He was also in charge of deposits made into various bank accounts controlled by the Balderas Organization from Wisconsin to Texas. Randy Martinez would direct individuals to send payment via wire transfer, bulk cash smuggling, and on their person to various individuals and accounts in Texas so as to help the Balderas Organization receive its profits.  Bank records support that through a complex bank account scheme, the Balderas Organization was able to launder, at least $300,000.00 and up to $500,000.00 dollars.

At sentencing Assistant United States Attorney Karine Moreno-Taxman described Randy Martinez as the key participant in Wisconsin and that he was responsible for making sure the Balderas Organization was viable in Wisconsin.

This investigation was successful because of a cooperative effort by the Sheboygan County Metro Drug Enforcement Group, the Manitowoc County Metro Drug Enforcement Group; the Manitowoc District Attorney’s Office, and the Drug Enforcement Administration and the Criminal Division of the Internal Revenue Service.  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 O’Brain J. Lynch (age 28) of Jamaica was sentenced to 5 years in prison for his role in a Jamaican lottery scam. Lynch is believed to be the first Jamaican national charged in the United States for this type of fraud. 

A Jamaican Lottery Scheme is a form of mass-marketing fraud committed via the internet, telemarketing, or mass mailings. Jamaican criminal organizations contact victims and identify themselves as lawyers, government officials, law enforcement agents, or lottery company officials. The potential victims are led to believe they won an international multi-million dollar lottery. The fraudulent telemarketers then inform the victims that in order to receive their winnings the victim needs to pay an advance fee. This fee is usually described as a tax, insurance payment, or customs duty that must be paid to release the winnings. The victims are instructed to send the funds via mail or wire transfer.

The scammers routinely involve victims to help facilitate the laundering of financial transactions by  receiving and withdrawing funds from prepaid cards and receiving and sending wire transfers. In an attempt to conceal and layer the proceeds from the lottery scams, the scammers direct victims to send funds, knowingly and unknowingly, to other victims and associates of the scammers within the United States. These victims and co-conspirators then transfer the proceeds of this fraud to the scammers in Jamaica by wire transfers. The Jamaican criminal organizations have modified the lottery scam into other variations of telemarketing schemes to include redirecting individuals Social Security Administration (SSA) benefits, direct deposit, automatic debit, re-routing schemes and other identity theft schemes.

According to documents filed in court, in March 2012, the SSA learned that a social security recipient, from Glendale, Wisconsin, was receiving social security benefits in the name of other recipients and cashing in these benefits.  Special Agents from the SSA - Office of Inspector General (OIG) discovered the recipient was sending this money to Jamaica because he believed he had won “The Jamaican Lottery.”  He said he was contacted by an official from Global International who informed him that he won $2.5 million and two (2) Mercedes Benz vehicles in a sweepstakes.  He was then advised that in order for him to collect the money and the cars, he had to pay taxes, customs duty, and other fees. He initially sent his own money to Jamaica, and, once he had depleted his own assets, he was directed, by telephone, to accept checks, Direct Express cards, and other cash value cards in the names of other people (who were also victims), cash them out and then send the money to Jamaica.  As a result, numerous victims did not receive their social security benefits, and instead they were mailed to Jamaica. Investigators from SSA discovered that hundreds of victims throughout the United States were losing their social security benefits and their life savings either because they believed that they had won “The Jamaican Lottery” or because, as part of another telemarketing scheme, they revealed enough information about themselves that allowed the thieves to fraudulently divert their money.

SSA -OIG, the Postal Inspection Service (USPS) and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) joined forces, and were able to identify O’Brain Lynch, as being one of the principal individuals involved in this scheme in Jamaica. HSI reported that Lynch is a resident of Montego Bay, Jamaica, and formerly was a lawful permanent resident of the United States.  HSI learned that Lynch and his girlfriend were coming to the United States for a vacation.  Lynch was arrested in February 2013.

Numerous records showed that Lynch and his co-actors were involved in a massive telemarketing scheme involving hundreds of victims. They would identify vulnerable victims, and change the recipients’ addresses to a third party. They then had the third party send the money to Jamaica or to others in the United States, who would then wire the money to Jamaica. At the direction of Lynch (and other working with him) numerous victims received SSA Direct Express, netSpend, Green Dot, and other types of cash value cards in the names of other victims.  In addition, items were ordered in the United States by Lynch and his co-actors and were paid for using money fraudulently obtained through the scheme.  These items, including jewelry, cell phones, a computer tablet, various electronics and other items were received by victims or other co-actors in the United States, and then sent to Jamaica where they could not be traced or recouped.  Many of these items have now been linked directly to Lynch. 

United States Attorney James L. Santelle commented:  "The significant, five-year prison term that O'Brain Lynch will serve reflects, first, the calculated, pernicious nature and scope of his victimization of more than 50 people, many of whom suffered substantial losses of social security benefits monies on which they relied to live.  Second, it responds with clarity and force to Lynch's criminal purpose and a-social intent in orchestrating a sophisticated scheme of fraudulent representations, false promises, and deceptive international financial transaction mechanisms.  The United States Department of Justice--along with its highly professional and vigilant investigative partners in the Social Security Administration, Office of the Inspector General, the United States Postal Inspection Service, and the United States Immigration and Customs Enforcement Service, Homeland Security Investigations--has been and will remain highly focused on identifying, stopping, and prosecuting the perpetrators of these kinds of malevolent scams; those who take advantage of innocent people here in Eastern Wisconsin and throughout our nation through schemes like this will be charged and called to account for their crimes."

Santelle continued:  "Our successful investigation and effective prosecution of this case should also serve an educational purpose to all of the good, law-abiding citizens we serve and protect: Offers and solicitations through the regular mail, telemarketing, or the internet that purport to confirm winnings or the recovery of large amounts of money--especially but not limited to those with international trappings--are virtually always fraudulent, especially when they contemplate the transfers or payments of monies to "recover" lottery or similar monetary awards.  The best response to these types of notifications and requests is no response at all--aside from prompt reporting of them to local, state, and federal law enforcement authorities for follow-up action, domestic or international.  In that connection, I commend not only the attorney and professional staff of my office for this important result but also the extremely timely, tenacious, and exhaustive work of the agents of the Social Security Administration, the Postal Inspection Service, and Homeland Security Investigations--all of whom are, in partnership and collaboration, responsible for shutting down Lynch's scam and bringing him to justice."
Special Agent in Charge William Cotter of the Social Security Administration, Office of Inspector General said, "The arrest and conviction of OBrain Lynch is a significant breakthrough in our investigation into this Jamaican Lottery Scheme, which has redirected millions of dollars in senior citizens' retirement benefits to thieves' accounts opened for the purpose of stealing this money. Lynch was a major organizer of this scam and he personally received or was responsible for defrauding hundreds of thousands of dollars from very vulnerable senior citizens. The Inspector General's Office for the Social Security Administration has worked very closely in this case with Homeland Security Investigations and the Postal Inspection Service and we will continue our collaborative effort to arrest and prosecute additional people involved with this scheme."

 "Jamaican lottery scammers like Mr. Lynch think nothing of fleecing older Americans of large amounts of money, often leaving their victims destitute and ashamed,” said HSI Chicago Special Agent in Charge Gary Hartwig. "In collaboration with our law enforcement partners, HSI will continue to use our unique cross-border authorities to combat this devastating crime and bring those responsible to justice."

 "Americans have lost millions of dollars to criminals from countries around the world in foreign lottery scams, said Pete Zegarac, Inspector in Charge, Chicago Division U.S. Postal Inspection Service. When one family member is harmed by a foreign lottery scam, the impact is felt by all. Losses can be monumental, sometimes entire life savings are wiped out.  The United States Postal Inspection Service will continue to partner with the Inspector General's Office for the Social Security Administration and Homeland Security Investigations, as well as other law enforcement agencies, regulatory agencies and the financial industry to combat cross border fraud targeting U.S. consumers, particularly the elderly. The Postal Inspection Service will continue to aggressively investigate these crimes and arrest people like Lynch, who ruthlessly exploit American consumers."

 This matter was investigated by special agents from the Social Security Administration - Office of Inspector General, the Postal Inspection Service and Homeland Security Investigations.  The case was prosecuted by Assistant United States Attorney Karine Moreno Taxman.

James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that on November 19, 2013, a federal grand jury returned an indictment against John M. Hunter (age: 35) of Antigo, Wisconsin, charging him with a single count of Conspiracy to Distribute Controlled Substances in violation of 21 U.S.C. Sections 846 and 841(b)(1)(B), and 18 U.S.C. Section 2.  If convicted of the offense, the defendant faces between five and forty years’ imprisonment, up to a five million dollar fine, and four years to life of Supervised Release.  

According to the indictment, Hunter conspired with others known and unknown to distribute and possess with the intent to distribute over 500 grams of cocaine and over 50 kilograms of marijuana between May 2009 and August 2011.  

Mr. Hunter is scheduled for arraignment in United States District Court in Green Bay, Wisconsin, on December 11, 2013.

The case was investigated by the Langlade County Sheriff’s Office and the Marathon County Sheriff’s Office.  It is being prosecuted by Assistant United States Attorney Daniel R. Humble.

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

James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that on November 12, 2013, Travis A. Zielinski (age: 28) of Appleton was sentenced to 16 months in federal prison by Chief United States District Judge William C. Griesbach.  Zielinski had previously entered a guilty plea to a single count of Bank Fraud. 

According to the plea agreement and other documents filed with the court, Zielinski while employed as a manager at Citizen’s Bank in Green Bay, fraudulently used the bank’s computerized operating system to withdraw over $68,000 from forty-eight (48) customer accounts over a fifteen (15) month period.  Zielinski admitted to bank security officials and others that he would review obituaries in order to target the accounts of recently deceased account holders.  Many of the accounts targeted by Zielinski belonged to deceased, incapacitated, or otherwise vulnerable account holders.     

In addition to the term of imprisonment, Zielinski was ordered to serve three years of supervised release.  As one of the conditions of supervision he was ordered to pay restitution to Citizen’s Bank (now known as FirstMerit Bank) in the amount of $68,118.12. 

While sentencing the defendant, Judge Griesbach noted the serious abuse of trust by Zielinski, as well as the number and nature of the accounts targeted and the amount of loss suffered by the bank. 

The case was investigated by Special Agents from the Federal Bureau of Investigation along with Citizen Bank’s Fraud Protection Unit.  It was prosecuted by Assistant United States Attorney Daniel R. Humble.

United States Attorney James Santelle of the Eastern District of Wisconsin, announced that on November 5, 2013, a federal grand jury returned an indictment against Lisa A. Lewis (age: 48) of Green Bay, Wisconsin, charging her with five counts of Wire Fraud in violation of 18 U.S.C. Section 1343.  If convicted, Lewis faces a maximum of 20 years in prison, $250,000 fine, and three years of supervised release on each count.

The indictment alleges that Lewis, a former financial broker, represented herself as an account representative and persuaded approximately thirteen elderly investors to create an individual investment account.  Generally, the scheme to defraud included Lewis then creating a joint account under her name and that of a 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 of victim funds included the purchase of a 2013 Chevrolet Camaro. The indictment alleges that Lewis’ fraud scheme resulted in her obtaining funds in excess of $1,000,000.

On November 6, 2013, Lewis appeared before the Honorable William C. Griesbach, District Court Judge. Lewis was taken into custody and is being held at the Brown County Jail. Her next court date is set for November 8, 2013.  A trial date has been scheduled for January 13, 2014.

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

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

United States Attorney James L. Santelle announced today that Federal District Court Judge Charles N. Clevert sentenced Milwaukee resident Tyrone McMillian (31) to 30 years imprisonment following his June 6, 2013 conviction by a jury of seven counts of sex trafficking of minors and adults. The six-day jury trial in Judge Clevert’s court included the testimony of one adult and four minors whom McMillian trafficked in the sex trade from 2006 through 2009.  The judge also forfeited to the United States McMillian’s interest in a watch he purchased in 2010 for $15,900 cash.  McMillian also faces separate charges in federal court for his illegal possession of firearms and ammunition that could add an additional 10 years of prison time to his sentence.

In addition to the trial testimony, prosecutors introduced evidence at McMillian’s sentencing regarding his involvement in a February 2011 theft of more than $325,000 in protein supplements from a warehouse in Dallas, Texas.  An affidavit filed by an agent from the Criminal Division of the Internal Revenue Service detailed McMillian’s receipt and expenditure of funds obtained from the subsequent sale of those protein supplements.  McMillian used the proceeds to purchase, among other things, a Bentley automobile for $79,500 and more than $40,000 of  custom-made jewelry.  In addition to the vehicle and jewelry, Milwaukee Police Department officers seized $94,600 in cash during a search of McMillian’s residence on July 6, 2011.  The cash, automobile, and jewelry – all presently in the custody of the Internal Revenue Service – are the subject of a separate forfeiture proceeding filed by prosecutors in the U.S. Attorney’s Office.

In making the public announcement of the sentence imposed on McMillian, United States Attorney Attorney Santelle stated: AJudge Clevert’s focus on McMillian’s exploitation of vulnerable juveniles mirrors the mission of this office in the investigation and prosecution of individuals who seduce our children with lies and false promises to bring them into the dirty, destructive business that is the sex trade.  The sentence is an appropriate response to McMillian’s criminal conduct and sends a strong message to others who may somehow see the pimp lifestyle as profitable or glamorous, or both.”

Santelle also stated: AThe investigation and prosecution of human trafficking cases in Eastern Wisconsin is among the highest priorities of my office, and we will continue to pursue the perpetrators of this heinous conduct with all of the resources available to us.

The case was investigated by detectives from the Milwaukee Police Department and agents from the Federal Bureau of Investigation working through the Milwaukee Human Trafficking Task Force.   The case was prosecuted by Joseph R. Wall and Melvin K. Washington of the U.S. Attorney’s Office.

United States Attorney James L. Santelle of the Eastern District of Wisconsin, announced that a federal grand jury recently returned indictments against Tina M. Baalman (age: 28), Jason D. Schultz (age: 36), and Jessica M. Gilbert (age: 24) of Green Bay, Wisconsin, as well as Jessica Weinhart (nee Hensen) (age: 30)  of Neenah, Wisconsin.  Each defendant is charged with one count of Conspiracy to Commit Mail and Wire Fraud.  Each is also subject to enhanced penalties under the “Senior Citizens Against Marketing Scams” or SCAMS Act.  In total, eight individuals have now been indicted for their role in the conspiracy.  Mark S. Parks, Mindy L. Parks, Eileen M. Goltz, and Ashley M. Conant currently face trial for their role in the matter.

As to each defendant, the maximum penalties are not more than twenty years imprisonment, a maximum fine of $250,000, a $100 special assessment, and a maximum three year term of supervised release.  Additionally, if it is shown that ten individuals over age 55 were victimized as a result of the defendants’ actions, an additional term of imprisonment of up to ten years must be added to the underlying sentence. According to documents filed in the case, the defendants are accused of participating in the operation of a fraudulent timeshare resale scheme in Green Bay, Wisconsin, which resulted in over fourteen hundred (1,400) victims from all fifty states and Canada being defrauded of over $2.3 million.  The defendants operated from 2007 to 2011 under several different names, including: Integrated Advertising Solutions, National Timeshare Resales, Administrative Timeshare Resales, and Midwest Timeshares. Victims were told that interested buyers were prepared to purchase their existing timeshares in exchange for upfront “administrative fees” ranging from a few hundred dollars to a few thousand dollars depending on how much the telemarketers believed they could collect.  Many of the victims are elderly and had previously been victimized by similar schemes. This case was a joint investigation by the Federal Bureau of Investigation and the U.S. Postal Inspection Service with the assistance of the Brown County Sheriff’s Office, Door County Sheriff’s Office, Waupaca County Sheriff’s Office, the Better Business Bureau, and the Wisconsin Department of Agriculture Trade and Consumer Protection.  The case will be prosecuted by Assistant United States Attorney Daniel R. Humble. An indictment is only a charge and is not evidence of guilt.  The defendants are presumed innocent and are entitled to a fair trial at which the government must prove each of them guilty beyond a reasonable doubt.  #   #   #   #   #

United States Attorney James L. Santelle, of the Eastern District of Wisconsin, announced that on September 23, 2013, James Allen Mereness (age: 57) of  New London, Wisconsin was sentenced to 10 months in a federal prison by Chief United States District Judge William C. Griesbach.  Mereness had previously pled guilty to a single count of Social Security Fraud. 

According to the plea agreement and other documents filed with the court, Mereness applied for social security disability payments for his child, falsely stating that the child resided with him and that he, Mereness, was responsible for the day-to-day support of the child.  In fact, the child continuously resided with his mother and had little to no contact with Mereness.  Mereness continued to falsely accept payments for a period of 36 months, converting the funds for his personal use including the purchase of a new vehicle.  None of the funds received were ever used for the benefit or support of the child. 

In addition to the above term of imprisonment, Mereness was ordered to serve three years of supervised release.  As one of the conditions of that release, he was ordered to pay restitution to the Social Security Administration in the amount of $39,866. 

In sentencing the defendant, Judge Griesbach noted the serious and extended nature of the theft, as well as the need to deter others in the community from fraudulently receiving taxpayer funds intended for those truly in need of assistance. 

The case was investigated by special agents from the Social Security Administration.  It was prosecuted by Assistant United States Attorney Daniel R. Humble.

The Office of the United States Attorney announced today that 23 defendants were indicted in federal court with cconspiracy to possess a controlled substance with the intent to distribute, more than 1kilogram heroin in violation of  United States Code Sections 841(a)(1), and 841(b)(1)(A).  If convicted each defendant faces between 10 years and life imprisonment, a $10,000,000 fine and a minimum of 5 years supervised release.

Name Age and Residency

Praxedes Reyes-Burgos aka “Gordo”

35, Milwaukee

34, Milwaukee

Geraldo S. Reyes aka “Sapo”

38, Milwaukee

Jonathan R. Hernandez aka “Joey” aka “Yogi”

29, Milwaukee

Mike M. Hinz

62, Milwaukee

Juan Hernandez aka “Kiko”

47, Milwaukee

Luis A. Lopez

33, Milwaukee

Luz E. Reyes-Burgos aka “Betty”

45, Milwaukee

Luz Burgos

65, Milwaukee

Praxedes Reyes-Cruz

64, Milwaukee

Joel E. Lopez aka “Looney”

28, Milwaukee

Alfredo A. Hernandez III aka “Azteca” aka “Mexico”

32, Milwaukee

Israel Feliciano aka “Pigui”

47, Milwaukee

Christopher A. Malzhan

26, Ripon, WI

Alexis J. Reyes aka “Chino”

25, Milwaukee

Jesus Oquendo aka “Bobby”

24, Milwaukee

Angel L. Reyes aka “Tuto”

24, Milwaukee

Carmen R. Nieves

34, Milwaukee

Mirta Reyes

27, Milwaukee

Lidia Herrera-Diaz aka “Carmen”

38, Milwaukee

Christian Rivera

27, Milwaukee

Santiago Hernandez aka “Primo”

49, Chicago, IL

Carlos J. Manzanares

29, Chicago, IL

According to information released in court this is a large drug trafficking organization that has been selling cocaine and heroin on the south side of Milwaukee for many years. They are responsible for distributing multiple kilograms of heroin per month and it’s believed that one of the distributors may be responsible for at least one heroin overdose death.   The leaders of the organization were Victor, Geraldo and Praxedes Reyes who are brothers. The Reyes brothers received their heroin primarily from Santiago Hernandez out of Chicago, though they did occasionally use other sources.      
           
Today, law enforcement officers arrested 19 of the defendants (the other 4 were already in custody) and executed search warrants at seven separate locations.  Seized in these search warrants was approximately $300,000 in US currency and five firearms.  Over the last few weeks, officers have also seized over one kilogram of heroin.

The defendants were charged based on a lengthy joint investigation by the Milwaukee Police Department and the Federal Bureau of Investigation (FBI) via the Milwaukee High Intensity Drug Trafficking Area (HIDTA) Drug Gang Task Force.

Law enforcement agencies that were involved in the search warrants and arrests today include:  the Milwaukee Police Department, the Federal Bureau of Investigation, the Milwaukee County Sheriff’s Office, the South Milwaukee Police Department, the West Allis Police Department, the Wisconsin Department of Justice - Division of Criminal Investigations, the Wisconsin State Patrol, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, Homeland Security Investigations, the Internal Revenue Service, the United States Marshals Service, the Waukesha County Sheriff’s Office and the Milwaukee County District Attorney’s Office.

According to First Assistant United States Attorney Gregory J. Haanstad, “These charges, arrests, and seizures are a part of our continuing work to dismantle drug organizations that threaten the safety and security of neighborhoods in the Eastern District of Wisconsin and elsewhere.  These efforts reflect the importance of ongoing collaboration between federal, state, and local law enforcement.”

Chief Edward Flynn of the Milwaukee Police Department stated "the U.S. Attorney's Office and federal law enforcement have been valuable and reliable partners with the Milwaukee Police Department in reducing violent crime and drug trafficking in Milwaukee.  Today's operation demonstrates their continued commitment to our partnership."

FBI Assistant Special Agent in Charge, Steven L. Conley said: “We will continue to work collaboratively and aggressively to bring these violent offenders to justice.”

This case is being prosecuted by Assistant U.S. Attorney Mario F. Gonzales.

An indictment or criminal complaint 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 announced today that United States District Judge Lynn Adelman sentenced Osvaldo Reyes (age: 32) of Sheboygan to ten years in prison for distribution of heroin in Sheboygan and the surrounding areas.  Reyes, who pled guilty to these charges, was indicted on March 12, 2013.

According to the plea agreement filed in court, from at least April 1, 2012, through on or about March 12, 2013, a conspiracy involving the defendant existed to distribute heroin in Sheboygan and elsewhere. The conspirators obtained heroin and organized a standardized method of doing business, maintained continuing relationships, and relied upon repeated transactions. 

At sentencing Judge Adelman called this an “extensive heroin operation.”  Assistant United States Attorney Karine Moreno-Taxman described Reyes as a substantial heroin distributor in the Sheboygan area. 

This investigation was successful because of a cooperative effort by the Sheboygan County Metro Drug Enforcement Group, the Manitowoc County Metro Drug Enforcement Group and the Drug Enforcement Administration.  The case was prosecuted by Assistant United States Attorney Karine Moreno-Taxman.

United States Attorney James L. Santelle of the Eastern District of Wisconsin announced that on August 27, 2013, a federal grand jury indicted Donald W. Rees (age: 42) of Racine, Wisconsin for illegally making, possessing, and transferring homemade pipe guns.  Rees was charged with two counts of illegally making firearms in violation of 26 U.S.C. section 5861(f), two counts of possessing an unregistered firearm in violation of section 5861(d), and two counts of illegally transferring a firearm in violation of section 5861(e). Each of the six counts charged carries a maximum possible imprisonment for not more than ten years, a fine of not more than $250,000, or both, plus a mandatory $100 special assessment and a term of supervised release not to exceed three years.

The indictment alleges that Rees made seven homemade pipe guns and sold these guns on two separate occasions. The firearms were described as destructive devices in the form of slam-type weapons, each consisting of two sections of metal pipe, one of which would slide into the other, with the wider pipe having an end cap through which a metal screw extends into the pipe to act as a firing pin to contact the primer in order to expel the ammunition out of the weapon when the pipes are pushed together.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and will be prosecuted by Assistant United States Attorney Mel S. Johnson.

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 announced today that two Milwaukee men were indicted for the June 25, 2013 armed robbery of the Tobruk Food Market in Milwaukee.  Artemus Taylor (age: 21), and Joshua Childress, (age: 20), were charged with one count of interference with commerce by robbery pursuant to the Hobbs Act and one count of brandishing a firearm in furtherance of a crime of violence. 

The indictment alleges that on June 25, 2013, the defendants, armed with a firearm, robbed the Tobruk Food Market located at 4401 West Lisbon Avenue in Milwaukee, Wisconsin.  If convicted, each man faces up to 20 years in prison on the armed robbery count and a minimum mandatory sentence of 7 years and up to life in prison on the charge of use of a firearm during a robbery. 

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. The U.S. Attorney’s Office and the District Attorney’s Office collaborate together to ensure that violent offenders are effectively prosecuted, making our communities safer for all. 

This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Milwaukee Police Department.  It is being prosecuted by Assistant United States Attorney Margaret B. Honrath

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

James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced today that a federal grand jury has returned an indictment charging Adam Nowak (age 40), a Polish citizen, with Illegal Reentry by a Previously Deported Alien, in violation of 8 U.S.C. § 1326(a), and Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A(a).  If convicted on the illegal reentry charge, Nowak faces a maximum of ten years in prison and a $250,000.00 fine.  If convicted of aggravated identity theft, Nowak faces mandatory sentence of two years imprisonment.  As an illegal alien, Nowak also faces deportation.

The indictment alleges that Nowak, who was previously deported from the United States in 2001 following felony convictions for document fraud, was found in Sheboygan, Wisconsin, on April 17, 2013.  According to a criminal complaint filed in this case, Nowak was arrested by Sheboygan Police Officers for drunk driving after he drove a semi tractor-trailer down a footpath along the boardwalk area of the South Pier tourist district in Sheboygan. 

The complaint also alleges that Nowak presented himself to police using the false name “Joseph Trzos,” and had in his possession an Arizona driver’s license in the name of “Joseph Trzos.”  The complaint further alleges that this individual was determined to be Adam Nowak, a previously deported alien without permission to be in the United States, through fingerprint analysis. 

The case was investigated by the Sheboygan Police Department and the United States Immigration and Customs Enforcement, Homeland Security Investigations.  The case is being prosecuted by Assistant U.S. Attorney Benjamin W. Proctor.

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

United States Attorney James L. Santelle announced that today a federal grand jury indicted Kyle T. Collins, age 35, of Milwaukee, on one count of Retaliation Against a Federal Witness.  If convicted of the charge, Collins faces a maximum penalty of life in prison without parole.

The charge relates to allegations that on June 14, 2013, Collins physically assaulted and threatened to kill a female who had testified earlier this year in the federal sex-trafficking trial of Tyrone McMillian.  The female witness had been included in McMillian’s indictment as one of four minors that McMillian had trafficked in the sex trade between 2006 and 2009.  The jury hearing that case found McMillian guilty of seven sex-trafficking counts.  McMillian faces life in prison on four of those counts.

In documents previously filed publicly in connection with the allegations against Collins, the federal witness and two other individuals described to law enforcement officers Collins’ attack on the witness.  According to those documents, in the early morning hours of June 14, 2013, Collins confronted the federal witness in a nightclub and told her that he knew she had testified against McMillian.  A short while later, the witness left the nightclub and Collins again confronted her.  Collins physically assaulted the witness outside of the nightclub and dragged her by her hair towards a waiting car where he was heard to say, “I’m going to kill this snitch.”  Although Collins had dragged her halfway into the car, the witness was able to break free and run away.  Collins was arrested a short while later.                       

In announcing the indictment, United States Attorney Santelle commented: “Attacks of any type on witnesses strike at the very heart of our criminal justice system, and witness intimidation and witness retaliation threaten the mission of all of us who work to keep our community safe and secure.  That the alleged victim in this case is a young woman who, as a minor, was previously victimized by a sex trafficker makes this conduct all the more egregious and troubling.  Today’s charge makes clear once again that the weight of the federal criminal justice system will be brought to bear on those who would in any manner, through any means attempt to harm or otherwise influence individuals who have the courage and the commitment to step forward and provide information about the criminal activities of others.”
The indictment was the result of an investigation by the Milwaukee Police Department.   The case has been assigned to Assistant United States Attorney Joseph R. Wall.

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

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Remarks as Prepared for Delivery by Attorney General Eric H. Holder, Jr.
Annual Meeting of the American Bar Association’s House of Delegates
Monday, August 12, 2013
San Francisco, California

Thank you, Bob Carlson, for those kind words – and for your exemplary service as Chair of the American Bar Association’s House of Delegates. It’s a pleasure to be with you this morning. And it’s a privilege to join so many friends, colleagues, and leaders – including U.S. Attorney for the Northern District of California Melinda Haag – here in San Francisco for the ABA’s 2013 Annual Meeting.

I’d like to thank your Delegates for all that they’ve done to bring us together this week – and for their dedication to serving as faithful stewards of the greatest legal system the world has ever known. From its earliest days, our Republic has been bound together by this system, and by the values that define it. These values – equality, opportunity, and justice under law – were first codified in the United States Constitution. And they were renewed and reclaimed – nearly a century later – by this organization’s earliest members.

With the founding of the ABA in 1878, America’s leading legal minds came together – for the first time – to revolutionize their profession. In the decades that followed, they created new standards for training and professional conduct. And they established the law as a clear and focused vocation at the heart of our country’s identity. (Read More )

United States Attorney James L. Santelle of the Eastern District of Wisconsin announced today that a special observance will be held on Friday, August 2, 2013 from 1:30 p.m. to 3:00 pm in remembrance and honor of the hate crimes victims of violence at the Sikh Gurdwara in Oak Creek.  This special community gathering will be held in the Ceremonial Courtroom (Room 390) of the Historic Federal Courthouse, located at 517 East Wisconsin Avenue in Milwaukee.

 In addition to remarks by United States Attorney Santelle, Senator Ron Johnson and Senator Tammy Baldwin will also provide remarks. The leadership representatives of the Sikh Gurdwaras in Oak Creek and Brookfield will offer reflections on the events of early August of 2012, and representatives of the families of those martyred and injured in the violence will be specially recognized and participate in the program.  The Honorable Stephen Scaffidi, Mayor of the City of Oak Creek, and Ms. Patricia Ferrick, Acting Special Agent in Charge of the Federal Bureau of Investigation, will also offer remarks about the significance of the violence and the perspectives of the community one year later.

 The memorial observance will include the performance of special commemorative music performed by children and adult members of the Oak Creek Gurdwara.  Mr. Thomas Heinen, the Executive Director of the Interfaith Conference of Greater Milwaukee, will also be offering a reflection on behalf of the diverse faith community in Wisconsin and throughout the nation.

The program will be followed by an informal community gathering in Room 190 of the Historic Federal Courthouse, during which participants and attendees will have an opportunity to engage in informal discussion and share thoughts.  In that setting and in the entryway atrium of the building, informational items and photographs about the contributions of Sikhs to the history of the world and to the life and livelihood of the United States will be on display for viewing.

Because of the solemn, contemplative nature of the observance, United States Attorney Santelle requests that the media be respectful of the wishes and interests of the family members of the victims as well as other Gurdwara congregation members and not affirmatively solicit them for on-camera or other interviews in this setting.  If requested, Public Information Officer Dean Puschnig will attempt to arrange interviews with victim family members who indicate that they would be willing to be interviewed.

United States Attorney Santelle noted that this observance is among several gatherings and events organized and sponsored in partnership with the leadership of the Sikh Community and of the City of Oak Creek beginning on Friday, August 2, and continuing through Monday, August 5.  Information about other, related programs may be obtained from the Sikh Temple of Wisconsin at www.sikhtempleofwisconsin.com.

Mr. Puschnig will meet all representatives of the media at the employee entrance to the building on Jackson Street between 12:30 p.m. and 1:00 p.m. and escort them through the court house to the Ceremonial Courtroom.   Arrangements will be made for a unified, common camera for recording/broadcast of the ceremony. Members of the media should call Mr. Puschnig at (414) 297-1774 to confirm their attendance.

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United States Attorney James L. Santelle of the Eastern District of Wisconsin announced today that a special observance will be held on Friday, August 2, 2013 from 1:30 p.m. to 3:00 pm in remembrance and honor of the hate crimes victims of violence at the Sikh Gurdwara in Oak Creek.  This special community gathering will be held in the Ceremonial Courtroom (Room 390) of the Historic Federal Courthouse, located at 517 East Wisconsin Avenue in Milwaukee.

 In addition to remarks by United States Attorney Santelle, leadership representatives of the Sikh Gurdwaras in Oak Creek and Brookfield will offer reflections on the events of early August of 2012, and representatives of the families of those martyred and injured in the violence will be specially recognized and participate in the program.  The Honorable Stephen Scaffidi, Mayor of the City of Oak Creek, and Ms. Patricia Ferrick, Acting Special Agent in Charge of the Federal Bureau of Investigation, will also offer remarks about the significance of the violence and the perspectives of the community one year later.

 The memorial observance will include the performance of special commemorative music performed by children and adult members of the Oak Creek Gurdwara.  Mr. Thomas Heinen, the Executive Director of the Interfaith Conference of Greater Milwaukee, will also be offering a reflection on behalf of the diverse faith community in Wisconsin and throughout the nation.

The program will be followed by an informal community gathering in Room 398 of the Historic Federal Courthouse, during which participants and attendees will have an opportunity to engage in informal discussion and share thoughts.  In that setting and in the entryway atrium of the building, informational items and photographs about the contributions of Sikhs to the history of the world and to the life and livelihood of the United States will be on display for viewing.

 Because of the solemn, contemplative nature of the observance, United States Attorney Santelle requests that the media be respectful of the wishes and interests of the family members of the victims as well as other Gurdwara congregation members and not affirmatively solicit them for on-camera or other interviews in this setting.  If requested, Public Information Officer Dean Puschnig will attempt to arrange interviews with victim family members who indicate that they would be willing to be interviewed.

 United States Attorney Santelle noted that this observance is among several gatherings and events organized and sponsored in partnership with the leadership of the Sikh Community and of the City of Oak Creek beginning on Friday, August 2, and continuing through Monday, August 5.  Information about other, related programs may be obtained from the Sikh Temple of Wisconsin at www.sikhtempleofwisconsin.com.

Mr. Puschnig will meet all representatives of the media at the employee entrance to the building on Jackson Street between 12:30 p.m. and 1:00 p.m. and escort them through the court house to the Ceremonial Courtroom.   Arrangements will be made for a unified, common camera for recording/broadcast of the ceremony.  For additional information, the general public should contact Mr. Puschnig at (414) 297-1774.

United States Attorney James L. Santelle of the Eastern District of Wisconsin announced that earlier today, a federal grand jury returned indictments against Mark S. Parks (age: 39) of Denmark, Wisconsin, Mindy L. Parks (age: 34) of Denmark, Wisconsin, Ashley M. Conant (age: 28) of Green Bay, Wisconsin, and Eileen M. Goltz (age: 51) of Port Charlotte, Florida, charging each of them with one count of Conspiracy to Commit Mail and Wire Fraud.

Each defendant faces up to twenty years’ imprisonment, a fine of up to $250,000, a $100 special assessment, and up to three years of supervised release.  In addition, pursuant to the “Senior Citizens Against Marketing Scams” or SCAMS Act, if the United States proves that at least ten individuals over age 55 were victimized as a result of the conspirators’ telemarketing efforts, each defendant could face an enhanced penalty of up to ten years’ imprisonment (added to the underlying sentence for the conspiracy to defraud).

According to a criminal complaint previously filed in the case, the defendants operated a fraudulent timeshare resale scheme in Green Bay, Wisconsin, which resulted in over a thousand victims in all fifty states and Canada being defrauded of over $2,300,000.  The defendants operated from 2007 to 2011 under several different names, including: Integrated Advertising Solutions, National Timeshare Resales, Administrative Timeshare Resales, and Midwest Timeshares. Victims were told that interested buyers were prepared to purchase their existing timeshares in exchange for upfront “administrative fees” ranging from a few hundred dollars to a few thousand dollars depending on how much the telemarketers believed they could collect.  According to the complaint, many of the victims are elderly and had previously been victimized by similar schemes.

This case was a joint investigation by the Federal Bureau of Investigation and the U.S. Postal Inspection Service with assistance of the Brown County Sheriff’s Office, the Door County Sheriff’s Office, the Waupaca County Sheriff’s Office, the Better Business Bureau, and the Wisconsin Department of Agriculture Trade and Consumer Protection.  The case is being prosecuted by Assistant United States Attorney Daniel R. Humble.

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

James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that on Thursday, July 18, 2013, Judge Lynn Adelman sentenced James Scalzo, 46, of Kenosha, Wisconsin to 35 months in prison for his role in a bank fraud and money laundering scheme. Scalzo was also ordered to serve three years supervised release following his prison term and to pay $200 in special assessments. Restitution is to be determined at a later date.

In January 2013, Scalzo pled guilty to a criminal information charging him with a bank fraud scheme, a violation of Title 18, United States Code, Section 1344, and money laundering in violation of Title 18, United States Code, Section 18 U.S.C. section 1956. Scalzo faced up to 30 years for the bank fraud offense and up to 20 years on the money laundering count.

Between April 1, 2008 and October 31, 2009, while employed as a bank officer at Fox River State Bank in Burlington, Wisconsin and then Consumer’s Credit Union in Round Lake Beach, Illinois, Scalzo originated and approved multiple fraudulent loans. Scalzo then directed funds to be taken from the loans and transferred by cashier’s check or wire, to accounts in which he had a personal interest. Some of the loan funds were applied against earlier loans in order to conceal the fraud. More than $1.4 million in loan funds were involved.

The case involved not only an abuse of the trust of the financial institutions that employed Scalzo, but also caused personal and financial hardship to unknowing citizens. Among the victims was a couple whose home Scalzo had pledged as collateral for one of the fraudulent loans and then allowed to go into foreclosure.

The case was investigated by the Internal Revenue, Criminal Investigation and the Federal Bureau of Investigation.  The case was prosecuted by Assistant United States Attorney Carol L. Kraft.

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United States Attorney James L. Santelle announced today that on Wednesday, July 17, 2013, federal Judge Lynn Adelman sentenced Shakil Wamiq, (age: 34), formerly of Bloomingdale, Illinois, and Mazher Khan, (age: 49), of Evergreen Park, Illinois, for their roles in a cigarette trafficking scheme that was in existence from late 2010 to early 2012.

Wamiq, was sentenced to 21 months in prison and ordered to pay $220,882.20 in restitution to the Illinois Department of Revenue as the result of tax losses caused by his criminal conduct. Adelman also ordered a money judgment of forfeiture in the amount of $472,993.20 based on the defendant’s illicit gains. In addition, Wamiq is required to pay $400 in special assessments.

Khan was sentenced to two years of probation, with the condition that he serve 180 days of home confinement. Khan was also ordered to pay $58,150 in restitution to the Illinois Department of Revenue, a money judgment of forfeiture in the amount of $125,308.80 and special assessments of $300. A 2009 Ford Econoline van registered to Khan was also forfeited as property used to facilitate the crime.

Both defendants were convicted in April 2013 by a jury in the Eastern District of Wisconsin. Wamiq, who operated as an Illinois distributor known as Good Deal Wholesale, Inc., located in Streamwood, Illinois, was convicted of four counts of contraband cigarette trafficking in violation of Title 18, United States Code, Section 2342(a). Khan, who operated in Illinois as MAK Distributors, in Mokena, Illinois, was convicted of three counts.

Also convicted as part of this criminal venture were Mohammad Uddin, (age: 30), of Naperville, Illinois, Adil Majid, (age: 54) of Bolingbrook, Illinois, and Haroon Bheri, (age: 33), of Glendale Heights Illinois all of whom pled guilty to a conspiracy to traffic contraband cigarettes in violation of Title 18, United States Code, Section 371. Uddin received a six month prison sentence to be followed by six months of home confinement and was ordered to pay $565,068 in restitution and $100 in special assessments. Majid and Bheri each received a probationary sentence with a condition of 180 days home confinement. Majid was ordered to pay $152,586 in restitution and Bheri was ordered to pay $173,166 in restitution. Both were also ordered to pay $100 in special assessments.

In addition, Maher Sunnokrot, (age: 38) of Worth, Illinois and Mohammed Mazharuddin, (age 41), formerly of Milwaukee and now residing in Texas, pled guilty to charges of misprision of felony in violation of Title 18, United States Code, Section 4. Each was given a probationary sentence and ordered to pay $66,400 in restitution and $100 in special assessments.

Additional defendants include Farrukh Aslam, (age: 28), formerly of Glendale Heights, Illinois, who is a fugitive and Ahsan Uddin, (age: 28), of Naperville, Illinois who is being supervised under the terms of a deferred prosecution agreement.

The Bureau of Alcohol, Tobacco, Firearms and Explosives initiated the year-long investigation into this activity based upon a complaint from a local citizen who alleged that his business was being financially undercut by persons who were dealing in untaxed tobacco products. The investigation included an undercover warehouse in Milwaukee and an undercover agent posing as a source for untaxed cigarettes. Video recordings showed the defendants purchasing cases of untaxed cigarettes with cash that was sometimes brought in shopping bags. The warehouse was devoid of accoutrements normally associated with a legitimate business, and the videos showed the defendants themselves loading the contraband cigarettes into their respective vehicles. The cigarettes were purchased at a cost that was substantially below that of an authorized manufacturer, and transported the cigarettes into Illinois where they were further disbursed.

Under federal law, only certain categories of persons may possess cigarettes which do not bear a state tax stamp. At trial Wamiq and Khan contended that their Illinois distributor licenses authorized them to purchase possess and transport the cigarettes involved.

The case was prosecuted by Assistant United States Attorneys Carol L. Kraft and Laura S. Kwaterski and investigated by special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  

James L. Santelle, U.S. Attorney for the Eastern District of Wisconsin, announced that on July 15, 2013, Mathew Lemberger (age: 33) was sentenced to 120 months imprisonment by United States District Judge William C. Griesbach.  Lemberger had previously pled guilty to two counts of arson of a building.  According to the plea agreement and other documents filed in court, Lemberger admitted collaborating with Thomas Wank (age: 55), James Kannenberg (age: 65) and Adam Jaehnig (age: 36) to intentionally burn his business property in December 2010 for purposes of later collecting insurance proceeds for the loss.  Lemberger also admitted that he and Kannenberg also burned Lemberger’s residence in March 2009 to collect the insurance proceeds.

 Judge Griesbach previously sentenced Wank on April 22, 2013, and Kannenberg on May 14, 2013 to 36 month terms of imprisonment following their guilty plea to the December 2010 arson to the building containing Lemberger’s business equipment.  Jaehnig was sentenced on June 24, 2013 to 12 month’s imprisonment based on his guilty plea to making a false statement to law enforcement in connection to that arson.

In addition to the above terms of imprisonment, Lemberger, Wank, Kannenberg, and Jaehnig were ordered to serve three years of supervised release.  As conditions of that release, they were ordered to pay restitution for the insurance payout for the December 2010 arson totaling $328,145.  Lemberger was also ordered to pay restitution to the insurance company for the money fraudulently received resulting from the March 2009 residence fire totaling $451,263. 

In sentencing the defendants, Judge Griesbach noted the seriousness of arson offenses, specifically, the often life-threatening danger that such offenses creates for firefighters and potentially other citizens. He added that buildings and property are needlessly destroyed resulting in significant monetary losses to insurance companies and fraudulently obtained cash windfalls for arsonists.  The sentences imposed served in part to deter other individuals contemplating arson for profit schemes.    

The case was investigated by special agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Wisconsin Department of Justice-Division of Criminal Investigation, and detectives from the Brown County Sheriff’s Office and the Washington County Sheriff’s Office.  It was prosecuted by Assistant United States Attorney William J. Roach.

United States Attorney James L. Santelle of the Eastern District of Wisconsin announced today that a special event will be held on Thursday, June 20, 2013 from 5:30 – 8:00 pm in recognition of June as Lesbian, Gay, Bisexual and Transgender (LGBT) Pride Month.   The program will be held at the Historic Federal Courthouse located at 517 East Wisconsin Avenue in Milwaukee.  The reception will begin at 5:30pm followed closely by the formal program.  The event is open to the public.

The keynote speakers will be FBI Special Agent in Charge Teresa L. Carlson and United States Attorney James L. Santelle.  The event will introduce a newly developed special emphasis program within the Department of Justice; provide insight into law enforcement’s investigation and prosecution of hate crimes and related violence, including the effect of the Shepard Byrd Hate Crimes Act; and discuss the impact of recent legal decisions on the LGBT community. 

In making this announcement, Santelle commented: “Members of our LGBT community in Wisconsin and throughout our nation continue to make significant contributions to the health, education, economy, culture, safety and well-being of all of us, and the United States Department of Justice is committed to promoting and safeguarding the rights of and equal protection for Americans of all sexual orientations and identities.”  He continued: “In the educational and inspirational programs on the 20th, we are not only affirming our strong federal partnership with Equality Wisconsin, the Milwaukee LGBT Community and other local and regional groups and associations, but we are also affirming the fundamental tenet that our county is enriched and strengthened by diversity in all aspects of our national experience.”

FBI Special Agent in Charge Teresa L. Carlson said: "Milwaukee is a proud community rich in diversity.  It is the FBI's mission to enforce civil rights laws and protect the freedoms of all Americans.  We are honored to have a role in this great program that celebrates and embraces our cultural differences."  

According to Karen Gotzler, the Interim Executive Director of the Milwaukee LGBT Community Center, "The Community Center in Milwaukee offers a wealth of resource programming, from youth to  young adults to elders.  We are HONORED to be partnering with the U.S. Attorney's Office to illustrate the importance of LGBT people as part of our entire community and having the federal government look seriously at LGBT issues."

Jason Burns, Executive Director of Equality Wisconsin, "This has been a banner year for LGBT people and addressing these issues at a federal level is integral to full equality for lesbian, gay, bisexual and transgender citizens."

The event is sponsored by the Office of the United States Attorney, the Federal Bureau Investigation, the Milwaukee LGBT Community Center, and Equality Wisconsin.

United States Attorney James L. Santelle announced today that David J. Langemak, (age: 41), formerly of Plymouth, Wisconsin, and former bank president of Community Bank and Trust, Plymouth Branch, (CB&T) was indicted June 18, 2013, for 18 counts of bank fraud in violation of Title 18, United States Code, Section 1344 (2). If convicted, Landemak faces a maximum of 30 years in prison and a $1,000,000 fine on each count. 

The indictment alleges that Langemak, while employed as president of CB&T made unauthorized withdrawals which totaled approximately $250,000 from the accounts of various bank customers for the benefit of a single unrelated bank customer.

The case was investigated by the Federal Deposit Insurance Corporation, Office of the Inspector General, the Federal Bureau of Investigation, and the Small Business Administration, Office of the Inspector General. 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 announced that Raissa A. Askenette, (age: 33) of Neopit, located on the Menominee Indian Reservation, in the State of Wisconsin, was sentenced on May 20, 2013 in Green Bay by United States District Court Chief Judge William Gresbach, to three years on probation, with 180 days of home confinement. The sentence was the result of a guilty plea by Askenette on February 28, 2013, to a federal indictment charging her with assault with a dangerous weapon.

On September 23, 2012, Menominee Tribal Police Department officers arrested Askenette, who was subsequently booked into the Menominee Tribal Jail. While at the jail
Askenette hit the correctional officer in the face with her metal crutch.  The correctional officer suffered a nasal fracture as a result of the assault. 

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

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United States Attorney James L. Santelle announced that Robert V. Julius, (age: 22) of Keshena, located on the Menominee Indian Reservation, in the State of Wisconsin, was sentenced on June 4, 2013,  in United States District Court, Green Bay Division, to eight months of imprisonment, followed by three years on supervised release. The sentence was the result of a guilty plea by Julius on March 15, 2013, to a federal indictment charging him with burglary of a dwelling.

On May 7, 2012, Julius, entered the residence of another without permission. He took two flat screen televisions, and other items which totaled approximately $1,200.00.

The case was investigated by the Menominee Tribal Police Department, the Menominee County Sheriff’s Department, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Benjamin L. Whittemore.

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James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that O’Brain J. Lynch (age 28) of Jamaica,  pleaded guilty to wire fraud, in violation of 18 U.S.C. § 1349 and 2.  He faces a maximum of 20 years in prison and a fine of up to $250,000. Lynch is believed to be the first Jamaican national charged in the United States for this type of fraud. 

 A Jamaican Lottery Scheme is a form of mass-marketing fraud committed via the internet, telemarketing, or mass mailings. Jamaican criminal organizations contact victims and identify themselves as lawyers, government officials, law enforcement agents, or lottery company officials. The potential victims are led to believe they won an international multi-million dollar lottery. The fraudulent telemarketers then inform the victims that in order to receive their winnings the victim needs to pay an advance fee. This fee is usually described as a tax, insurance payment, or customs duty that must be paid to release the winnings. The victims are instructed to send the funds via mail or wire transfer.

The scammers routinely involve victims to help facilitate the laundering of financial transactions by  receiving and withdrawing funds from prepaid cards and receiving and sending wire transfers. In an attempt to conceal and layer the proceeds from the lottery scams, the scammers direct victims to send funds, knowingly and unknowingly, to other victims and associates of the scammers within the United States. These victims and co-conspirators then transfer the proceeds of this fraud to the scammers in Jamaica by wire transfers. The Jamaican criminal organizations have modified the lottery scam into other variations of telemarketing schemes to include redirecting individuals Social Security Administration (SSA) benefits, direct deposit, automatic debit, re-routing schemes and other identity theft schemes.

According to documents filed in court, in March 2012, the SSA learned that a social security recipient, from Glendale, Wisconsin, was receiving social security benefits in the name of other recipients and cashing in these benefits.  Special Agents from the SSA - Office of Inspector General (OIG) discovered the recipient was sending this money to Jamaica because he believed he had won “The Jamaican Lottery.”  He said he was contacted by an official from Global International who informed him that he won $2.5 million and two (2) Mercedes Benz vehicles in a sweepstakes.  He was then advised that in order for him to collect the money and the cars, he had to pay taxes, customs duty, and other fees. He initially sent his own money to Jamaica, and, once he had depleted his own assets, he was directed, by telephone, to accept checks, Direct Express cards, and other cash value cards in the names of other people (who were also victims), cash them out and then send the money to Jamaica.  As a result, numerous victims did not receive their social security benefits, and instead they were mailed to Jamaica. Investigators from SSA discovered that hundreds of victims throughout the United States were losing their social security benefits and their life savings either because they believed that they had won “The Jamaican Lottery” or because, as part of another telemarketing scheme, they revealed enough information about themselves that allowed the thieves to fraudulently divert their money.

SSA -OIG, the Postal Inspection Service (USPS) and Homeland Security Investigations (HSI) joined forces, and were able to identify O’Brain Lynch, as being one of the principal individuals involved in this scheme in Jamaica. HSI reported that Lynch is a resident of Montego Bay, Jamaica, and formerly was a lawful permanent resident of the United States.  HSI learned that Lynch and his girlfriend were coming to the United States for a vacation.  Lynch was arrested in February 2013.

Numerous records showed that Lynch and his co-actors were involved in a massive telemarketing scheme involving hundreds of victims. They would identify vulnerable victims, and change the recipients’ addresses to a third party. They then had the third party send the money to Jamaica or to others in the United States, who would then wire the money to Jamaica. At the direction of Lynch (and other working with him) numerous victims received SSA Direct Express, netSpend, Green Dot, and other types of cash value cards in the names of other victims.  In addition, items were ordered in the United States by Lynch and his co-actors and were paid for using money fraudulently obtained through the scheme.  These items, including jewelry, cell phones, a computer tablet, various electronics and other items were received by victims or other co-actors in the United States, and then sent to Jamaica where they could not be traced or recouped.  Many of these items have now been linked directly to Lynch. 

As part of his plea agreement, Lynch has agreed to pay at least $100,000 in restitution.  The restitution amount will be determined by the court at the time of sentencing. Special Agent in Charge William Cotter of the Social Security Administration, Office of Inspector General said, "The arrest and conviction of Obrain Lynch is a significant breakthrough in our investigation into this Jamaican Lottery Scheme, which has redirected millions of dollars in senior citizens' retirement benefits to thieves' accounts opened for the purpose of stealing this money. Lynch was a major organizer of this scam and he personally received or was responsible for defrauding hundreds of thousands of dollars from very vulnerable senior citizens. The Inspector General's Office for the Social Security Administration has worked very closely in this case with Homeland Security Investigations and the Postal Inspection Service and we will continue our collaborative effort to arrest and prosecute additional people involved with this scheme."

"Unscrupulous scam artists prey on the vulnerabilities of others and are solely motivated by greed," said Homeland Security Investigations Chicago Special Agent in Charge Gary Hartwig. "We will continue to work with our partners in Jamaica and other law enforcement agencies to put these criminal enterprises out of business. However, the best defense is to be very suspicious of anyone who asks for money up front so you can collect a lottery prize."

"Americans have lost millions of dollars to criminals from countries around the world in foreign lottery scams, said Pete Zegarac, Inspector in Charge, Chicago Division U.S. Postal Inspection Service. When one family member is harmed by a foreign lottery scam, the impact is felt by all. Losses can be monumental, sometimes entire life savings are wiped out.  The United States Postal Inspection Service will continue to partner with the Inspector General's Office for the Social Security Administration and Homeland Security Investigations, as well as other law enforcement agencies, regulatory agencies and the financial industry to combat cross border fraud targeting U.S. consumers, particularly the elderly. The Postal Inspection Service will continue to aggressively investigate these crimes and arrest people like Lynch, who ruthlessly exploit American consumers."

This matter was investigated by special agents from the Social Security Administration - Office of Inspector General, the Postal Inspection Service and Homeland Security Investigations.  The case is assigned to Assistant United States Attorney Karine Moreno Taxman for prosecution.

James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that Leah M. Kuchta (age: 42) of Mequon, Wisconsin, was sentenced June 5, 2013, to 33 months imprisonment by United States District Judge Charles N. Clevert.  Kuchta was indicted by a federal grand jury on August 14, 2012, and charged with six counts alleging tax related offenses. 

On December 13, 2012, she pleaded guilty to two counts.  Specifically, Kuchta pled guilty to evading $234,836 of federal income tax due and owing on $728,276 of unreported income for tax year 2005.  She also pled guilty to filing a false claim for a $76,165 refund, also for the tax year 2005. 

The case stemmed from an IRS investigation seeking a wage verification related to the refund claim.  During the course of the investigation the IRS determined that Kuchta had embezzled approximately $900,000 from a trust established for the benefit of her grandmother, and had pocketed $30,000 from a fraudulent loan on her sister’s home.  Failure to report her illegal income resulted in the evasion charge. 

In sentencing Kuchta, Judge Clevert noted the widespread nature of Kuchta’s fraudulent conduct.  In addition to the 33 months, Kuchta will serve a period of 3 years supervision after her release from imprisonment.  She also is responsible for paying the tax due, and refunding the fraudulent refunds received, in the amount of $324,397.  IRS interest and penalties will bring the total amount due to over $778,000. 

United States Attorney James L. Santelle commended special agents from the IRS Criminal Investigation for their excellent and detailed investigation which resulted in this prosecution. The case was prosecuted by Assistant United States Attorney Paul L. Kanter. 

                       
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Washington, D.C. and Milwaukee, Wisconsin -The United States Department of Justice announced today that there is insufficient evidence to pursue federal criminal civil rights charges against any Milwaukee Police Department officer for the in custody death of the late Derek Williams on July 6, 2011.

Officials from the Office of the United States Attorney for the Eastern District of Wisconsin, the Justice Department’s Civil Rights Division, and the Federal Bureau of Investigation (FBI) met today with the Williams family and its representatives to inform them of this decision.

The Justice Department conducted a comprehensive and independent investigation of the events surrounding the arrest of Mr. Williams, who died while in the custody of Milwaukee police officers.  Specifically, special agents of the FBI interviewed over fifty civilian and law enforcement witnesses; consulted with various medical experts on Mr. Williams’ cause of death; conducted a physical examination of the involved squad car and recording system; and, visited and canvassed the scene.  Those special agents of the FBI also analyzed the patrol car video of the incident; the police radio transmissions; the autopsy reports; the testimony and exhibits admitted at the public inquest; the Milwaukee Police Department’s investigative file, including all the eyewitness and forensic evidence; the Milwaukee County District Attorney’s Office’s memorandum declining state charges; the City of Milwaukee’s Fire and Police Commission’s report; and, the report of the special prosecutor. 

Under the applicable federal criminal civil rights law, prosecutors must establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived an individual of a constitutional right, meaning with the deliberate and specific intent to do something the law forbids.  This is the highest standard of intent imposed by law.  Mistake, misperception, negligence, or poor judgment are not sufficient to establish a federal criminal civil rights violation.  Specifically, the team of prosecutors and FBI agents considered two types of potential violations of federal criminal civil rights law.  First, they considered whether any Milwaukee police officer violated the law by willfully using unreasonable force during Mr. Williams’ arrest.  Second, they examined whether the officers willfully and unreasonably failed to respond to Mr. Williams’ medical need.

The federal investigation revealed no medical evidence to corroborate the use of unreasonable force by any officer, such as using excessive force while restraining Mr. Williams on the ground.  The vast majority of the witnesses interviewed provided no evidence of a willful violation of the applicable civil rights statute.  The two civilian eyewitnesses who reported observing unreasonable force gave inconsistent and conflicting accounts that could not be corroborated.

There is also insufficient evidence that the response by any officer to Mr. Williams’ medical needs was objectively unreasonable or carried out with willful intent.  The investigation did not reveal evidence that the officers had notice of Mr. Williams’ medical need, and the officers stated they did not know he had a medical need.  The squad car video depicting Mr. Williams’ death as he sat in the back of the vehicle is tragic and alarming to watch, but the evidence does not establish that the video duplicates what the officers saw in the back of the squad car that night.  The infrared camera, which captures images with little or no light, clearly showed Mr. Williams in the back of the car.  However, it cannot be established that this was the vantage point of the subject officers for several reasons.  First, there is no backseat lighting in the car and there were minimal artificial lighting sources where the squad car was located.  Next, each officer had custody of Mr. Williams for only a short duration of time and no officer watched Mr. Williams for the entire time that he was in distress in the squad car.  Finally, there is no evidence that the officers were watching Mr. Williams on the squad car monitor in the front seat. 

Although Mr. Williams made repeated statements to officers that he could not breathe, the officers observed him to be breathing. Based on both officer and civilian witness testimony, the lack of more significant physical signs of asphyxiation diminished the officers’ beliefs that Mr. Williams was in any distress.  Furthermore, the officers responded with medical treatment once it was obvious to them that Mr. Williams needed help.  The facts do not establish beyond a reasonable doubt a willful failure to act in response to a known medical need. 

Finally, after consulting with various medical experts, some of whom later testified at the county public inquest, the cause of Mr. Williams’ death remains unknown; it is equally unclear that any delay by officers in providing medical attention to Mr. Williams contributed to his death. Therefore, after a careful and thorough review, a team of experienced federal prosecutors and FBI agents determined that the evidence was insufficient to prove, beyond a reasonable doubt, that any Milwaukee police officer acted willfully with a bad purpose to violate the law.  Accordingly, the investigation into this incident has been closed without prosecution.

The Office of the United States Attorney U.S. Attorney for the Eastern District of Wisconsin, the Civil Rights Division of the United States Department of Justice,  and the FBI devoted significant time and resources into conducting a thorough and independent investigation.  The Justice Department is committed to investigating allegations of civil rights violations by law enforcement officers and will continue to devote the resources required to ensure that all allegations of serious civil rights violations are fully and completely investigated.  The Justice  Department aggressively prosecutes criminal civil rights violations whenever there is sufficient evidence to do so.

United States Attorney James L. Santelle announced that a federal grand jury has indicted Najee C. Moore (Age 22), of Milwaukee, Wisconsin, on charges of conspiracy, sex trafficking, and attempted forced labor, of both minor and adult victims.  If convicted of the below charges, Moore will face the following penalties.

Count Charge Penalty

1

Sex Trafficking of a Minor and through Force, Fraud, and Coercion

No less than 15 years to life imprisonment; $250,000 fine, 3 years supervised release

Conspiracy to Engage in Sex Trafficking of a Minor and through Force, Fraud, and Coercion

A term of years to life imprisonment; $250,000 fine, 3 years supervised release

3

Sex Trafficking of a Minor and through Force, Fraud, and Coercion

No less than 15 years to life imprisonment; $250,000 fine, 3 years supervised release

4

Sex Trafficking of an Adult through Force, Fraud, or Coercion

No less than 15 years to life; $250,000 fine; 3 years supervised release

5

Conspiracy to Engage in Forced Labor

A term of years to life imprisonment; $250,000; 3 years supervised release

6

Attempted Forced Labor with Aggravated Sexual Abuse

A term of years to life imprisonment; $250,000; 3 years supervised release

The indictment alleges that Moore engaged in the sex trafficking of two different minor victims in 2009 and 2012, respectively, and used force, fraud, and coercion to compel both adult and minor victims to engage in commercial sex acts.  The indictment further charges the defendant with conspiring and attempting to compel a victim into forced labor.

The matter is being investigated by the Federal Bureau of Investigation, Homeland Security Investigations, Milwaukee Police Department and the Wisconsin Division of Criminal Investigation.  Assistance was also provided by the Milwaukee County District Attorney’s Office.  The case is being prosecuted by Assistant U.S. Attorney Karine Moreno-Taxman and Trial Attorney Daniel H. Weiss of the U.S. Department of Justice’s Civil Rights Division.

An indictment is merely the formal method of charging an individual and does not constitute evidence of his or her 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 announced that the April 16, 2013 judgment for Daniel Lee was made public today.  The Honorable Charles N. Clevert, Jr. United States District Court Judge, sentenced Daniel Lee (age: 50), of Milwaukee, Wisconsin, to 65 years in prison for his involvement in robberies of several pharmacies of prescription drugs and cash.  Lee was also ordered to three years supervised release and to pay restitution in the amount of $5,089.42

Between January and March of 2012, Daniel Lee robbed four Milwaukee-area pharmacies of prescription drugs and cash.  During three of the robberies Lee brandished a firearm and his face was partially covered.  Large quantities of Oxcodone, oxycontin, and morphine were found during a search at Lee’s residence.  Text messages on Lee’s phone showed that he had several customers for the Schedule II controlled substances he was stealing and that Oxycodone 30s were the pills most desired.  His phone also contained records of searches of pharmacy locations in the Milwaukee area.

This prosecution was the product of a joint investigation by the Federal Bureau of Investigation, Milwaukee Police Department, Wauwatosa Police Department, and the Shorewood Police Department. The prosecution was handled by Assistant United States Attorney William J. Lipscomb.      

James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced today that Lawrence J. Popp pleaded guilty to two felony offenses in connection with his fraudulent receipt of social security disability benefits and his participation in a welfare benefit plan (under Section 419 of the Internal Revenue Code) with the intention of evading the payment of income taxes. This matter was investigated by agents of the Social Security Administration’s Office of Inspector General (“SSA-OIG”) and the Internal Revenue Service-Criminal Investigation (“IRS-CI”).

In making this announcement, Santelle commented: “The programmatic and fiscal integrity of the Social Security Administration’s programs is compromised significantly—to the detriment of legitimate beneficiaries—when individuals engage in purposeful fraud of this and other types.  The knowing misapplication of welfare benefit plans, pursued to evade the payment of income taxes, aggravates the abuse and has a quantifiable impact upon all Americans.”  Santelle added:  “This prosecution, premised upon a balanced, focused, and highly professional investigation by special agents of the Social Security Administration and the Internal Revenue Service, is illustrative of the kind of effective federal law enforcement work known well in Eastern Wisconsin and throughout the nation.”

“Business owners 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. Agent Jackson added: “We encourage anyone with information about these types of schemes to come forward and speak with federal authorities.”

United States District Judge Rudolph T. Randa, who presided over the plea hearing, has scheduled the sentencing of the defendant for October 29, 2013.

United States Attorney James L. Santelle announced that earlier today, a federal grand jury returned a one-count indictment charging Ramon Alvarado (Age: 29) a resident of Milwaukee, Wisconsin, with threatening to kill his former supervising United States Probation Officer.  If convicted, Alvarado faces a maximum of 10 years in prison.

The indictment alleges, that on March 26, 2013, Alvarado threatened to kill an employee of the United States Probation Office in the Eastern District of Wisconsin, with intent to retaliate against the employee on account of the performance of her official duties in violation of Title 18, United States Code, Section 115(a)(1)(B).  Alvarado was originally charged via Criminal Complaint on April 5, 2013.  Alvarado, a Latin King gang member, was supervised by the United States Probation Office following completion of his term of imprisonment for a 2008 federal RICO conspiracy conviction.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Kelly B. Watzka.

An indictment is merely the formal method of charging an individual and does not constitute evidence of his or her guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.