Western District of Wisconsin

MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today.  You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.

Wisconsin Rapids Man Charged with Tax Crimes

James Canfield, 71, Wisconsin Rapids, Wisconsin, is charged with 14 counts of preparing and filing false federal income tax returns for third parties. 

The indictment alleges that Canfield, who operated Advanced Accounting Concepts, Inc., a tax return preparation business in Plover, Wisconsin, prepared and filed tax returns that sought refunds and reductions in taxes due to which the taxpayers were not entitled.  The indictment alleges that Canfield claimed false deductions and included with the returns a Schedule E, Supplemental Income and Loss from Business, reporting false income and losses.

If convicted, Canfield faces a maximum penalty of 3 years in federal prison on each count.  The charges against him are the result of an investigation by IRS Criminal Investigation.  Assistant U.S. Attorney Robert Anderson is handling the prosecution.

Oxford Man Charged with Illegally Possessing Firearm

Stephen J. Robeson, 57, Oxford, Wisconsin, is charged with being a felon in possession of a firearm.  The indictment alleges that on September 26, 2020, he possessed a .50 caliber rifle.

If convicted, Robeson faces a maximum penalty of 10 years in federal prison.  The charge against him is the result of an investigation by the Federal Bureau of Investigation, Marquette County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.

La Crosse Man Charged with Distributing Methamphetamine

Tang Vue, 35, La Crosse, Wisconsin, is charged with two counts of distributing methamphetamine.  The indictment alleges that he distributed methamphetamine on January 29 and February 3, 2021, and that the January 29 distribution involved 50 grams or more of the drug.

If convicted, Vue faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on the count alleging the distribution of 50 grams or more, and 20 years on the second distribution count.  The charges against him are the result of an investigation by the La Crosse Police Department.  Assistant U.S. Attorney David J. Reinhard is handling the prosecution.

La Crosse Man Charged with Drug Crime Involving Methamphetamine

Cody B. Stough, 33, La Crosse, Wisconsin, is charged with distributing 50 grams or more of methamphetamine.  The indictment alleges that he distributed the methamphetamine on November 19, 2020. 

If convicted, Stough faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison.  The charge against him is the result of an investigation by the Richland-Iowa-Grant Drug Task Force.  Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution. 

MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that James Coney, 32, Madison, Wisconsin, was found guilty today of 10 counts related to sex trafficking of minors.  The jury reached its verdict after five hours of deliberation following four days of testimony in U.S. District Court in Madison.  

Coney was found guilty of 4 counts of sex trafficking a minor, 1 count of sex trafficking a minor by force, 1 count of attempted sex trafficking a minor, and 4 counts of transporting a minor from Wisconsin to Illinois for the purpose of prostitution.

The jury found that from May 2017 to March 2018, Coney trafficked five minors, attempted to traffic a sixth minor, and transported three minors from Wisconsin to Illinois where they engaged in prostitution.  Coney transported one of the minors on two separate days.  The evidence presented at trial showed that Coney used Backpage ads to arrange “dates” for the minor victims, collected the money, and instructed the minors on what to do.  All six of the minor victims testified at the trial.  Numerous witnesses testified that Coney was physically and verbally abusive to the minor victim who was with Coney the longest, from May 2017 to March 2018.

The investigation of Coney began when one of the minor victims was reported missing by her mother to the Fitchburg Police Department.  The National Center for Missing and Exploited Children publicized the minor’s disappearance, and she ultimately was recovered in Chicago where she had been with Coney. 

Coney faces a mandatory minimum sentence of 15 years and a maximum of life in federal prison.  A sentencing date has not been set.  

The charges against Coney are the result of an investigation by the Fitchburg Police Department and Wisconsin Department of Justice Division of Criminal Investigation, with the assistance of the Federal Bureau of Investigation; Chicago, Lake Delton, Janesville, and Madison Police Departments; and the Dane County Sheriff’s Office.  Assistant U.S. Attorneys Julie Pfluger and Taylor Kraus are handling the prosecution. 

MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced the unsealing of an indictment that charges Brandon Rankin, 26, Madison, Wisconsin, with being a felon in possession of a firearm.  The indictment was returned on February 10 by a federal grand jury sitting in Madison.

The indictment alleges that Rankin possessed a 9mm handgun on February 2, 2021. 

Rankin was arrested yesterday in Madison by the U.S. Marshals Service and Madison Police Department, pursuant to a federal arrest warrant.  He is being held at the Dane County Jail.  A time has not been set for his initial appearance in U.S. District Court.

If convicted, Rankin faces a maximum penalty of 10 years in federal prison.  The charge against him is the result of an investigation by the Madison Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorney Corey Stephan is handling the prosecution.

You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Corvalis Stewart, 33, Madison, Wisconsin, was sentenced today by U.S. Chief District Judge James D. Peterson to 2 years in federal prison for being a felon in possession of  firearm.  This prison term will be followed by 3 years of supervised release.  Stewart pleaded guilty to this charge on November 12, 2020.

On August 20, 2020, Dane County Sheriff’s deputies conducted a traffic stop on a vehicle being driven by Stewart in Madison.  During the stop, marijuana was located in the vehicle.  While the passenger was being detained, Stewart threw a loaded Smith & Wesson .40 caliber pistol out of the driver’s side window of the vehicle.  A witness who saw Stewart throw the gun from the car notified law enforcement and deputies located the gun, which had a loaded magazine and a round in the chamber. 

Stewart was prohibited from possessing a firearm based on multiple prior felony convictions.  At the time of his arrest, Stewart was on state supervision for a previous conviction of being a felon in possession of a firearm.  Stewart’s criminal history dates back to 2005 and includes two prior convictions for being a felon in possession of a firearm, including a case where he shot a man in the leg.  He also has a prior conviction for 2nd degree recklessly endangering safety for pointing a gun at two individuals and threatening to “blast them.” 

This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime.  The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence. 

The charge against Stewart was the result of an investigation conducted by the Dane County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  The prosecution of the case has been handled by Assistant U.S. Attorneys Rita M. Rumbelow and Steven P. Anderson. 

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced today that Mary Lavine, 65, Madison, Wisconsin, pleaded guilty to conspiring to defraud the Internal Revenue Service and to filing a false 2018 corporate income tax return for her business Bullseye, Inc.

After accepting Lavine’s guilty plea, Chief U.S. District Judge James D. Peterson sentenced Lavine to 1 year and 1 day in prison, imposed a $75,000 fine, and ordered her to pay restitution of $834,769.65 to the IRS, and $1,927,852.56 to the Wisconsin Department of Revenue. He also ordered Lavine to serve a two-year term of supervised release following her prison term.

Lavine ran Bullseye with another person who is now deceased.  Bullseye operated as a coin-operated music and amusement game vending business located in Madison.  Lavine admitted that Bullseye also contracted with bar owners to place video gaming machines (“VGMs”) at their bars.  Bullseye split the profits generated by the VGMs with the bar owners.  Different bar owners had different VGM profit sharing agreements with Bullseye.  Lavine admitted that she worked with certain bar owners to skim the cash receipts generated from the VGMs and not report 100% of the cash receipts to the IRS or Wisconsin Department of Revenue. This underreporting caused Bullseye to evade its own corporate income taxes, as well as the Wisconsin sales taxes and income taxes for Bullseye and its bar owners.

The government presented evidence that during the four-year time span from 2015 to 2018, Bullseye evaded $3,028,930 in federal and state taxes.

At today’s hearing, Lavine apologized for her criminal conduct and told Judge Peterson that she went along the tax evasion scheme of Bullseye’s other owner for so long because he promised to make her the majority owner of the business, but then he reneged on that promise.

Judge Peterson told Lavine that her quest to be the majority owner of Bullseye was her “drug that caused her to compromise her basic values and commit tax evasion to achieve her end goal.”  The judge noted that Lavine sacrificed a lot in that pursuit, and could have left Bullseye, but did not, and now she had to take responsibility for that choice.

Judge Peterson also noted that the size of the tax evasion scheme, the large tax loss, and the long period of criminal activity, all justified a term of incarceration. According to the judge, if nothing else, “this sentence will send the message to the business community that no special rules apply to cash businesses.  It’s easy to cheat and skim cash, but it is still taxable.”  Judge Peterson added, “business owners need to be aware that this type of conduct will not be tolerated and will lead to incarceration.”

To date, five individuals have pleaded guilty as part of this criminal tax investigation and Lavine is the fourth to be sentenced.  Dudley Hellenbrand and Cherie Hellenbrand were each sentenced to 6 months in prison, and Tom Laugen was sentenced to 1 year and 1 day in prison.  Colin Albany is scheduled to be sentenced on May 6.  Moreover, Judge Peterson has ordered these individuals to pay a total of $3,807,566 in restitution to the IRS and Wisconsin Department of Revenue.

The case against Lavine is the result of an ongoing investigation being conducted by IRS Criminal Investigation and the Wisconsin Department of Revenue, Office of Criminal Investigation.  The prosecution of this case is being handled by Assistant U.S. Attorneys Daniel Graber and Chadwick Elgersma.

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Anthony R. Krohn, 37, Edgerton, Wisconsin, pleaded guilty and was sentenced yesterday by Chief U.S. District Judge James D. Peterson to 5 years in prison for being a felon in possession of a firearm.

On June 1, 2020, at approximately 2:00 a.m., Krohn was walking with some friends toward the Capitol Square in downtown Madison, an area which was experiencing significant civil unrest.  As Krohn walked past deputies who were posted outside near the jail, the gun that he was carrying discharged into his leg.  Dane County Sheriff’s Office deputies and Madison Police Department officers provided assistance to Krohn until he was transported to the hospital for treatment.  Krohn admitted to a deputy that he shot himself in the leg.  The .22 handgun and a spent casing were recovered.

At the time, Krohn was on supervision for a sixth offense operating while intoxicated after serving two years in prison.  His criminal history stretches back to 2001 and includes convictions for several batteries, another felony OWI where he led police on a high-speed chase, and possession of cocaine with the intent to deliver.

At sentencing, Krohn agreed with the government about the dangers involved with bringing a gun into this situation.  Judge Peterson also recognized the serious nature of Krohn’s offense commenting that it was the court’s role to look out for the community in this case.

The charge against Krohn was the result of an investigation conducted by the Madison Police Department, Dane County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives.  The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan. 

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Gerardo Junior Torres, 24, of Chicago, Illinois, was sentenced today by U.S. District Judge William M. Conley to 20 years in prison for producing child pornography.  This term of imprisonment will be followed by 30 years of supervised release.  Torres pleaded guilty to this charge on November 5, 2020.

On April 4, 2020, a citizen in Taylor County Wisconsin reported that a 15-year-old family member had been sexually assaulted by Torres.  Numerous electronic items belonging to Torres were turned over to law enforcement at that time.  Officers obtained and executed a search warrant for the defendant’s electronic devices where they found numerous images and videos of the defendant sexually assaulting both the citizen’s family member and another 7-year-old child.   

Judge Conley stated that the lengthy sentence was warranted due to the defendant’s manipulation of the two victims and the severity of the repeated assaults on them.  Additionally, Judge Conley expressed concern that the defendant did not grasp the seriousness of his behavior or the damage he caused the victims.  Judge Conley expressed hope that now knowing the pain he caused would be motivation for the defendant to never engage in his “dark and ugly” acts again. 

The charge against Torres was the result of an investigation conducted by the Taylor County Sheriff’s Office, Ladysmith Police Department, and the Wisconsin Department of Justice Division of Criminal Investigation.  The prosecution of the case has been handled by Assistant U.S. Attorney Elizabeth Altman. 

MADISON, WIS. – Scott C. Blader, the United States Attorney for the Western District of Wisconsin has announced he will be resigning as U.S. Attorney effective 11:59 pm, February 26, 2021.   

Blader, a graduate of Marquette University Law School, has served as the U.S. Attorney for the Western District of Wisconsin since 2017.   During his tenure, Blader prioritized outreach efforts to all law enforcement agencies throughout the Western District of Wisconsin resulting in an 63% increase in all cases filed between 2017-2019.  Blader also implemented an effective and sustainable strategy to combat violent crime and the distribution of lethal drugs such as heroin, fentanyl and methamphetamine resulting in an 104% increase in violent crimes prosecuted and 62% increase in drug cases prosecuted between 2017-2019. He also advanced a host of Department of Justice initiatives targeting child exploitation and human trafficking.   As United States Attorney, he served as a member of the Attorney General’s Advisory Committees for Native American Affairs, Management and Personnel issues and Opioid and Heroin Interdiction.

“Serving as the United States Attorney for the Western District of Wisconsin has been the most rewarding experience of my professional career.  I thank Attorneys General Barr and Sessions for the trust they placed in me and their leadership and support.  I am deeply grateful for the opportunity to have worked with the extraordinary men and women in the U.S. Attorney’s Office who deserve the true credit for our successes,“ said U.S. Attorney Blader.  “I am also honored to have been given the opportunity to serve with our brave and dedicated federal, state and local law enforcement partners who work daily to protect our citizens and make the Western District of Wisconsin a better place.” 

As the FBI Milwaukee Special Agent in Charge, I consider U.S. Attorney Blader a great partner and leader in the Wisconsin law enforcement community,” said SAC Robert E. Hughes.  “His talents and leadership have assisted in creating a strong cohesive team at the U.S. Attorney’s Office, which has resulted in a strong coalition of all federal law enforcement agencies in upholding the Constitution and protecting the citizens of Wisconsin.”

“Scott Blader has admirably served as United States Attorney for the Western District of Wisconsin, relentlessly working to protect citizens from the effects of drug trafficking and drug-related violence.  Scott’s office vigorously prosecuted violent drug trafficking crimes and illegal gang activity, while ensuring equity in all matters.  Scott and his leadership will be missed,” said Robert J. Bell, Special Agent in Charge of the Drug Enforcement Administration, Chicago Division.

“I have never seen a stronger partnership between law enforcement in our state and the U.S. Attorney’s Office than we have seen in the last four years,” said Administrator Brian R. O’Keefe of the Wisconsin Department of Justice Division of Criminal Investigation.  “U.S. Attorney Blader has made tremendous efforts to build and nurture the relationships our law enforcement community now enjoy with the U.S. Attorney’s Office, making Wisconsin a better place to live, work, and play.”

“ATF’s mission to protect our communities from violent criminals was no doubt shared by U.S. Attorney Scott Blader and his cadre of hardworking prosecutors,” said ATF Special Agent in Charge Terry Henderson, of the St. Paul Field Division. “I wish him the very best and look forward to continuing the great relationship ATF has with the U.S. Attorney’s Office of the Western District of Wisconsin.”

“U.S. Attorney Scott Blader championed the partnership between the U.S. Attorney’s Office and local law enforcement in Wisconsin,” said Kim Gaffney, U.S. Marshal for the Western District of Wisconsin.  “His leadership and guidance brought together local, state and federal partners all ‘pulling the rope in the same direction,’ protecting our citizens and holding accountable those who violate our laws.”

The Western District encompasses 44 counties and covers approximately 60% of the State of Wisconsin, including the cities of Madison, Wausau, Superior, Eau Claire and La Crosse.    The U.S. Attorney’s Office, located in Madison, is responsible for conducting all criminal and civil litigation in the district involving the United States government.

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jerry Koch, 59, Fennimore, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 30 months in federal prison for possessing methamphetamine with intent to distribute.  Koch pleaded guilty to this charge on December 10, 2020.

On August 1, 2020, investigators with the Richland-Iowa-Grant Drug Task Force arranged for the controlled purchase of methamphetamine from Koch.  After the completion of the controlled purchase, the investigators arrested Koch and found him in possession of 58 grams of methamphetamine, drug paraphernalia, and approximately $8,000 cash.  During a post-arrest interview, Koch admitted that he sold methamphetamine to support his personal addiction.

The charge against Koch was the result of an investigation conducted by the Richland-Iowa-Grant Drug Task Force and the Grant County Sheriff’s Office.  The prosecution of the case has been handled by Assistant U.S. Attorney Chadwick M. Elgersma. 

MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today.  You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.

Columbus Woman Charged with Using Internet In Murder-for-Hire Scheme

Kelly Harper, 37, Columbus, Wisconsin, is charged with using the Internet from October 19 through December 10, 2020, with the intent that the murder of a known individual be committed in exchange for payment, specifically bitcoin.  Harper was previously charged with this offense in a complaint filed in U.S. District Court.  Federal law requires that offenses charged by complaint be presented to a grand jury for indictment.   

The complaint alleged that Harper provided a description of the intended victim, details about the victim’s vehicle, where the victim worked, and the victim’s cell phone number.  The scheme was uncovered by journalists investigating the murder-for-hire site, and they were able to warn the victim.  The scheme was reported to the Federal Bureau of Investigation and the Sun Prairie Police Department in January.

Harper was arrested on February 5 and remains in custody.  Her arraignment has been set for Tuesday, February 16, at 2:00 p.m.

If convicted, Harper faces a maximum penalty of 10 years in federal prison. The charge against her is the result of an investigation by the Sun Prairie Police Department, the FBI, and the FBI’s Money Laundering, Forfeiture and Bank Fraud Unit.  Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.    

Michigan Man Charged with Drug & Gun Crimes

Larry W. Cole, 40, Painesdale, Michigan, is charged with possessing 500 grams or more of methamphetamine with intent to distribute.  The indictment alleges that he possessed the methamphetamine on September 9, 2020.  Cole is also charged with possessing a 9mm handgun on that date in furtherance of the drug trafficking crime.

If convicted, Cole faces a mandatory minimum penalty of 10 years and a maximum of life in federal prison on the drug charge.  The gun charge carries a mandatory penalty of 5 years, which federal law requires be served consecutive to any sentence imposed on the drug charge. 

The charges against Cole are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation; Drug Enforcement Administration; Rock and Florence County Sheriffs’ Offices; Illinois State Police Multi-County Enforcement Group; Wisconsin State Patrol; and the Michigan K.I.N.D. Drug Unit.  Assistant U.S. Attorney Robert Anderson is handling the prosecution.

Milwaukee Man Charged with Illegally Possessing Firearm

Jerome Kirk, 33, Milwaukee, Wisconsin, is charged with being a felon in possession of a firearm.  The indictment alleges that he possessed a loaded 9mm handgun on November 16, 2020. 

If convicted, Kirk faces a maximum penalty of 10 years in federal prison.  The charge against him is the result of an investigation by the Wisconsin State Patrol, Sun Prairie Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorney Aaron Wegner is handling the prosecution.

MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that a Columbus, Wisconsin, woman has been arrested pursuant to a federal criminal complaint that charges her with using the Internet to hire someone to commit murder.  Kelly Harper, 37, was arrested on Friday, February 5, 2021.

The complaint charges that from October 19 through December 10, 2020, Harper used a murder-for-hire site on the dark web to hire someone to kill an individual.  The complaint alleges that Harper provided a description of the intended victim, details about the victim’s vehicle, where the victim worked, and the victim’s cell phone number. The complaint further alleges that payment was made in bitcoin. 

Harper is currently in custody at the Dane County Jail.  A time for her initial appearance in U.S. District Court in Madison, Wisconsin has not been set. 

If convicted, Harper faces a maximum penalty of 10 years in federal prison.

The charge against Harper is the result of an investigation by the Sun Prairie Police Department, the Federal Bureau of Investigation, and the FBI’s Money Laundering, Forfeiture and Bank Fraud Unit.  Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution. 

You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Lucas Carpenter, 36, La Crosse, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 84 months in federal prison for distributing methamphetamine.   Carpenter pleaded guilty to this charge on October 23, 2020. 

Carpenter supplied methamphetamine to an associate, and on November 15, 2019, the associate agreed to sell a law enforcement confidential informant 57 grams of methamphetamine in exchange for $1,700.  The associate directed the confidential informant to a parking lot in La Crosse where the transaction was scheduled to take place and warned the confidential informant that Carpenter would be in the area watching the transaction.  

At the conclusion of the drug deal, law enforcement officers stopped Carpenter as he backed out of a parking stall.  When officers approached him, they observed a plastic bag containing a white crystalline substance next to the defendant in plain view.  Officers detained the defendant and searched around the car using a trained law-enforcement dog.  The dog alerted to the presence of drugs, allowing officers to lawfully search the car, where they seized an additional 13 grams of methamphetamine, and arrested Carpenter.

During an interview, the associate admitted that Carpenter supplied the methamphetamine for the drug sale and also said that Carpenter watched the transaction because he wanted to meet up with the associate afterwards in order to get paid.  Charges against Carpenter’s associate were dismissed after the associate was found dead.

The charge against Carpenter was the result of an investigation conducted by the Prairie du Chien Police Department and La Crosse West Central Metropolitan Enforcement Group.  The prosecution of the case has been handled by Assistant U.S. Attorney Chadwick M. Elgersma. 

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Phillip Thomas, Madison, Wisconsin, pleaded guilty and was sentenced today by U.S. District Judge William M. Conley to 100 months in federal prison for distributing 50 grams or more of methamphetamine, and an additional 30 months for revocation of his federal supervised release. This prison term will be followed by 4 years of supervised release.

In March and April 2020, several sources reported to law enforcement that Thomas was selling various controlled substances in the Madison area.  Agents with the Wisconsin Department of Justice Division of Criminal Investigation arranged a series of controlled buys with a confidential informant. The confidential informant successfully purchased crack cocaine and methamphetamine from Thomas in March 2020, and additional crack cocaine and approximately 52 grams of methamphetamine from him on April 1, 2020.  During a search of Thomas’s bedroom inside a Sun Prairie apartment on April 3, 2020, agents located three firearms and additional controlled substances. That same day, Thomas was arrested and had both cocaine and heroin in his pockets.

At the time of the offense in this case, Thomas was serving a term of supervised release in connection to a 2012 federal conviction in the Western District of Wisconsin for distribution of 100 grams or more of heroin. Judge Conley revoked that supervision and sentenced Thomas to the additional 30 months in prison.

In sentencing Thomas, Judge Conley noted that the quantities of controlled substances recovered by law enforcement in the present case were likely far below what Thomas had been selling, based on his statements to law enforcement following his arrest. Judge Conley stated a significant sentence was warranted given that the defendant had resumed selling drugs following his 2018 release from prison, including selling drugs while residing at a drug treatment facility. Judge Conley commented that it appeared as though Thomas “reveled” in his continued criminal lifestyle and the power it brought him.

The charges against Thomas were the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation, Madison Police Department, Sun Prairie Police Department, Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Taylor L. Kraus. 

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Alexander Kawleski, 44, Wisconsin Rapids, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 18 years in federal prison for producing and possessing child pornography.  Kawleski was convicted of these charges on July 17, 2019, following a three-day jury trial.

Evidence at trial established that in 2013, Kawleski recorded himself sexually assaulting a girl who was between 15 and 16 years old.  He kept a copy of the assault on a flash drive, where a friend found it and gave it to a Wisconsin Rapids Police Department detective.  In addition to the assault, the evidence established that in 2013 and 2014, Kawleski used a two-way mirror to secretly record two minor females while they were in the bathroom, in various stages of undress, getting in and out of the shower.  Those recordings were saved on the same flash drive as the assault.  One of the females was between 13 and 14 years old, and the other was 15 or 16 years old.  Neither victim was aware that they were being filmed. 

Judge Peterson called Kawleski’s crime an atrocity and noted that the defendant’s pattern of misconduct demonstrated an enduring interest in underage girls. Judge Peterson also found the defendant’s conduct manipulative and heartless and expressed a concern that he might reoffend.

The charges against Kawleski are the result of an investigation by the Wisconsin Rapids Police Department and the Wisconsin Department of Justice Division of Criminal Investigation.  The prosecution of the case has been handled by Assistant U.S. Attorneys Elizabeth Altman and Laura Przybylinski Finn.

MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today.  You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.

Hudson Man Charged with Drug Offenses Involving Methamphetamine

Kevin J. Bell, 41, Hudson, Wisconsin, is charged with distributing methamphetamine on October 16 and December 1, 2020.  The indictment alleges that the October 16 distribution involved 50 grams or more of methamphetamine. 

If convicted, Bell faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on the charge alleging distribution of 50 grams or more of methamphetamine, and a maximum penalty of 20 years on the other distribution charge.  The charges against him are the result of an investigation by the West Central Drug Task Force; Buffalo, Chippewa, Clark, and Eau Claire County Sheriffs’ Offices; Eau Claire Police Department; Eau Claire County District Attorney’s Office; and the Drug Enforcement Administration.  Assistant U.S. Attorney Steven Anderson is handling the prosecution. 

Mauston Man Charged with Drug & Gun Crimes

Jerry Scheerer, 27, Mauston, Wisconsin, is charged with distributing methamphetamine and being a felon in possession of a firearm.  The indictment alleges that on November 3, 2020, Scheerer distributed 5 grams or more of methamphetamine and possessed a revolver. 

If convicted, Scheerer faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on the drug charge and a maximum of 10 years on the gun charge.  The charges against him are the result of an investigation by the Mauston Police Department; Sauk and Juneau County Sheriffs’ Offices; Wisconsin Department of Justice Division of Criminal Investigation; Drug Enforcement Administration; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorney Taylor Kraus is handling the prosecution. 

Dane County Man Charged with Making False Statement During Purchase of Firearm

Andre Gonzales, 21, Oregon, Wisconsin, is charged with making a false statement to a federally licensed firearms dealer while purchasing a firearm.  The indictment alleges that on July 14, 2020, Gonzales stated that he was the actual buyer of a 9mm handgun, when he was not the actual buyer. 

If convicted, Gonzales faces a maximum penalty of 5 years in federal prison.  The charge against him is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Madison, Fitchburg and Oregon Police Departments.  Assistant U.S. Attorney Meredith Duchemin is handling the prosecution.

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Verdell Thomas, 21, Madison, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to six years in federal prison for possessing crack cocaine with intent to distribute, and for possessing a loaded firearm in furtherance of that offense.  Thomas pleaded guilty to these charges on October 6, 2020. 

A confidential informant working with the Dane County Narcotics Task Force (DCNTF) purchased small quantities of crack cocaine from Thomas on three occasions in 2020.  Based on those controlled buys, DCNTF had probable cause to arrest Thomas.  Thomas was arrested at a local gas station on May 7, 2020.  He had 6.6 grams of crack cocaine, a scale, over $4,000, and a loaded 9mm pistol, all in his pants pockets.

At the time of his arrest, Thomas was on probation for a December 17, 2019, felony conviction for possession with intent to deliver cocaine in Dane County. Thomas told law enforcement officers he was armed because “everyone is” and he had to protect his drugs.  Judge Peterson ordered the six-year sentence to be served consecutively to an 18-month state revocation sentence Thomas is currently serving for the Dane County conviction. 

Judge Peterson rejected Thomas’ request for a sentence of five years and one day, because Thomas is a dangerous young man, with an extensive criminal history that includes acts of violence.

This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime.  The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence. 

The charges against Thomas were the result of an investigation conducted by the Dane County Narcotics Task Force.  The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow. 

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Devonere Johnson, 29, Madison, Wisconsin was sentenced today by U.S. District Judge William Conley to two years of probation for extortion.  Johnson pleaded guilty to this charge on November 4, 2020.

On June 22, 2020, during a period of protests and civil unrest in downtown Madison, Johnson extorted two restaurants.  At one restaurant, Johnson threatened to break the windows unless the owner sent him money through Venmo.  At the other, Johnson and two others threatened to have 600 people show up and burn it down unless they were given free food.

In sentencing Johnson, Judge Conley noted the impact on the victims and that they supported a term of probation.  In his sentencing memorandum, Johnson admitted that his conduct was intimidating, scary, and wrong.

The charges against Johnson were the result of an investigation conducted by Madison Police Department and Federal Bureau of Investigation.  The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan. 

MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today.  You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.

Milwaukee Man Charged with Drug & Gun Crimes

Dewayne Veasy, 30, Milwaukee, Wisconsin, is charged with possessing cocaine with intent to distribute and with possessing a mixture of heroin and fentanyl with intent to distribute on July 2, 2020.  The indictment also charges Veasy with possessing a firearm as a felon and with possessing a firearm in furtherance of a drug trafficking crime.  The indictment alleges that he possessed a handgun on July 2, 2020.

If convicted, Veasy faces a mandatory penalty of 20 years in federal prison on each drug charge and 10 years on the felon in possession of a firearm charge.  The charge of possessing a firearm in furtherance of a drug trafficking crime carries a mandatory minimum penalty of 5 years in federal prison.  Federal law requires that any penalty imposed for this charge be served consecutive to any other sentence imposed.

The charges against Veasy are the result of an investigation by the Oneida County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorney Taylor Kraus is handling the prosecution.

Madison Man Charged with Drug & Gun Crimes

Justin Miner, 36, Madison, Wisconsin, is charged with three drug crimes and with being a felon in possession of a firearm.  The indictment alleges that on October 20, 2020, he distributed methamphetamine, and that on October 29, 2020, he possessed heroin with intent to distribute, and 50 grams or more of methamphetamine with intent to distribute.  The indictment further alleges that on October 29, 2020, he possessed a 9mm pistol and ammunition.

If convicted, Miner faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on the charge involving 50 grams or more of methamphetamine.  He faces a maximum penalty of 20 years on each of the other drug charges and 10 years on the felon in possession of a firearm and ammunition charge. The charges against him are the result of an investigation by the Madison Police Department, Dane County Narcotics and Gang Task Force, and Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorney Diane Schlipper is handling the prosecution.

Menomonie Man Charged with Illegally Possessing Firearm & Ammunition

Xavier Gentry, 32, Menomonie, Wisconsin, is charged with being a felon in possession of a firearm and ammunition.  The indictment alleges that he possessed a 9mm handgun and ammunition on June 7, 2020. 

The charge against Gentry is the result of an investigation by the Eau Claire Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorney Taylor Kraus is handling the prosecution.

Eau Claire Man Charged with Gun Crime

Roy Hopp, 40, Eau Claire, Wisconsin, is charged with being a felon in possession of a firearm and ammunition.  The indictment alleges that he possessed a loaded .380 caliber pistol and ammunition on November 12, 2020.

The charge against Hopp is the result of an investigation by the Eau Claire County Sheriff's Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorney Corey Stephan is handling the prosecution.

Sun Prairie Man Charged with Making False Statement During Purchase of Firearm

Abiel Howard, 25, Sun Prairie, Wisconsin, is charged with making a false statement to a federally licensed firearms dealer while purchasing a firearm.  The indictment alleges that on January 11, 2020, Howard stated that he was the actual buyer of a .40 caliber pistol, when he was not the actual buyer. 

If convicted, Howard faces a maximum penalty of 5 years in federal prison.  The charge against him is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Madison Police Department.  Assistant U.S. Attorney Julie Pfluger is handling the prosecution.

Illinois Man Charged with Possessing Methamphetamine for Distribution

Leroy D. Hampton, 29, Urbana, Illinois, is charged with possessing 50 grams or more of methamphetamine with intent to distribute.  The indictment alleges that he possessed the methamphetamine on November 12, 2020.

If convicted, Hampton faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison.  The charge against him is the result of an investigation by the Wisconsin State Patrol, Juneau County Sheriff’s Office, and Wisconsin Department of Justice Division of Criminal Investigation.  Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.

Sun Prairie Business Owner Charged with Failing to Account For & Pay Payroll Taxes

Joseph Kott, 42, Sun Prairie, Wisconsin, is charged with 17 counts of failing to account for and pay over to the IRS all of the federal income taxes withheld and Social Security and Medicare taxes (“FICA taxes”) due to the United States, on behalf of Alpha Electric, LLC (“Alpha”) and its employees.  Kott was the owner and operator of Alpha, an electrical installation and services business located in Sun Prairie.

The indictment alleges that Kott failed to file quarterly employment tax returns for Alpha, failed to pay FICA taxes withheld from wages of Alpha’s employees, and failed to pay the employer’s matching share of FICA Taxes.  The 17 counts of the indictment allege that Kott failed to pay to the IRS a total of $377,855.24 in payroll taxes between 2014 and 2018. 

If convicted, Kott faces a maximum penalty of 5 years in federal prison on each count.  The charges against Kott are the result of an investigation by IRS Criminal Investigation.  Assistant U.S. Attorney Daniel Graber is handling the prosecution.

Man Charged with Escape

Larry Dollar, 49, is charged with escape.  The indictment alleges that he escaped from the custody of Rock Valley Community Programs in Janesville, Wisconsin, on December 14, 2020.

If convicted, Dollar faces a maximum penalty of 5 years in federal prison.  The charge against him is the result of an investigation by the U.S. Marshals Service.  Assistant U.S. Attorney Julie Pfluger is handling the prosecution.

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Bonnie Dennee, 66, Phillips, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to five months in federal prison, followed by a three-year term of supervised release, for conspiracy to store and transport hazardous waste without required permits and manifests, in violation of the Resource Conservation and Recovery Act (RCRA).  Dennee pleaded guilty to this charge on October 22, 2020.

Dennee’s co-defendant, James Moss, pleaded guilty to this charge on September 1, 2020, and was sentenced to 18 months in prison. Co-defendant Thomas Drake signed a plea agreement to this charge on December 31, 2019, which was filed on May 21 ,2020.  Finally, co-defendant Kevin Shibilski was indicted by a grand jury on September 10, 2020. The indictment against Shibilski included a hazardous waste storage charge, as well as eight counts of wire fraud, and  conspiracy to defraud the IRS by not paying over employment taxes and income taxes.

Dennee worked for 5R Processors Ltd. (5R) based in Ladysmith, Wisconsin.  5R was a Wisconsin-based corporation involved in recycling electronic equipment, appliances, and other assets.  Dennee pleaded guilty to a criminal information charging that from 2011 to 2016, Dennee, Moss, Drake and others conspired to (1) knowingly store hazardous waste (i.e., broken and crushed CRT glass that contained lead) at unpermitted facilities in Catawba, Wisconsin, Glen Flora, Wisconsin, and Morristown, Tennessee; (2) knowingly transport the hazardous waste without a required manifest; and (3) conceal the above violations from state regulators in Wisconsin and Tennessee, as well as auditors with a nationwide recycling certification program (R2). 

At her plea hearing, Dennee admitted to attempting to conceal the illegal storage and transport of the crushed leaded glass from state regulators by various means, including: (1) changing the date labels on the containers; (2) hiding the containers by putting them inside semi-trailers and locking the trailer doors; (3) moving the containers to the back of the warehouse and stacking other pallets in front of them, making it impossible for regulators to see the boxes or inspect them; (4) storing the containers at a warehouse on Artisan Drive in Glen Flora, Wisconsin (known as the “Sunshine Building”), and not disclosing the existence of this warehouse, or its contents, to state regulators or R2 auditors; (5) storing the containers at 5R’s plant in Morristown, Tennessee in two warehouse spaces that did not have electricity or power, and which were referred to by 5R employees as the “dark side” and the “dark-dark side;” and (6) providing the state regulators with inaccurate inventory and shipping records for the leaded glass.

At today’s sentencing, Judge Conley told Dennee that once she left 5R in 2016, she could have reported the criminal conduct to regulators at the Wisconsin Department of Revenue, but she chose not to make such a disclosure.  Judge Conley pointed out that her inaction, “let the community down.”  Dennee agreed with the Court’s assessment, adding that she could not provide a good reason why she did not come forward after she left the company.

Nonetheless, Judge Conley praised Denee for ultimately doing the right thing and cooperating with the government to help explain and unravel the criminal conspiracy, but noted that Dennee, “still needed to pay a price.”  Judge Conley added, “I hope this sentence also delivers a message to others who wish to commit this same conduct.”

The charges against Dennee were the result of an investigation conducted by the Wisconsin Department of Natural Resources, Bureau of Law Enforcement; the U.S. Environmental Protection Agency, Criminal Investigation Division; and IRS Criminal Investigation.  The prosecution of the case has been handled by Assistant U.S. Attorney Daniel J. Graber.

MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jeffrey Costillo, 33, Blaine, Minnesota, and Denise Kraimer, 27, Columbia Heights, Minnesota, were sentenced by U.S. District Judge William M. Conley for conspiring to distribute 50 grams or more of methamphetamine. 

Costillo was sentenced on January 20, 2021 to 84 months in federal prison for his role in the conspiracy.  He pleaded guilty to this charge on October 8, 2020.  Kraimer was sentenced today to 60 months in federal prison.  She pleaded guilty on October 1, 2020.  Costillo and Kraimer’s prison terms will each be followed by 4 years of supervised release. 

On August 13, 2019, law enforcement officers worked with a confidential informant to set up the purchase of approximately three ounces of methamphetamine from a female identified as Denise Kraimer.  The confidential informant had purchased methamphetamine from Kraimer in the past and said she was usually accompanied by a male.  Kraimer agreed to drive from Minnesota to Prairie du Chien, Wisconsin, to complete the sale of methamphetamine. 

On the early morning of August 14, 2019, Kraimer and Jeffrey Costillo parked their car at the location agreed upon with the confidential informant.  Law enforcement officers quickly made contact with Kraimer and Costillo and searched their car.  Inside the glove box, officers located two clear plastic bags which contained over 107 grams of methamphetamine.  Drug paraphernalia consistent with drug trafficking was also located in the glove box. 

When interviewed, Kraimer denied any involvement in drug trafficking.  However, a later search of her Facebook account revealed many conversations involving Kraimer setting up sales of methamphetamine, with quantities up to a quarter pound.  Costillo claimed to be there more as Kraimer’s bodyguard, though he admitted to knowing they had a large quantity of methamphetamine with them that they were going to sell. 

The charge against Costillo and Kraimer was the result of an investigation conducted by the Crawford County Sheriff’s Department, Prairie du Chien Police Department, and Drug Enforcement Administration.  The prosecution of the case has been handled by Assistant U.S. Attorney Steven P. Anderson. 

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Albert Williams, 38, La Crosse, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 5 years in federal prison for possessing a firearm and ammunition as a felon. This prison term will be followed by 3 years of supervised release. 

Officers with the La Crosse Police Department arrested Williams following a traffic stop on September 11, 2019. During a search of the vehicle, officers located a loaded 9mm handgun as well as a bag of 9mm ammunition. Although Williams and the two other passengers denied knowing the handgun was inside the vehicle, Williams’ DNA was located on the grip of the firearm and on the inside of rubber gloves packaged with the 9mm ammunition.

At the time of this offense, Williams was serving a term of state supervision for a 2017 conviction for possessing a firearm as a felon. He is prohibited from possessing any firearms or ammunition as result of this and several other felony convictions. 

Judge Conley, in sentencing Williams, expressed his concern that the defendant continued to pose a “real and present danger to the community,” given his extensive criminal history of arming himself and distributing controlled substances. Judge Conley also noted that although the defendant had opportunities to better himself, he had not “walked the walk,” and that he remained undeterred by substantial imposed-and-stayed prison sentences and probation.

The charge against Williams was the result of an investigation conducted by the La Crosse Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Taylor L. Kraus. 

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Diorian Smith, 30, Madison, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 96 months in federal prison for possessing child pornography. This prison term will be followed by 20 years of supervised release. 

Smith came to the attention of law enforcement on November 19, 2018, when the investigation revealed he was involved in a shooting on the west side of Madison.  While interviewing Smith regarding the shooting, law enforcement became aware that he was involved in a sexual relationship with a minor and possessed pornographic images of her. 

Smith pleaded guilty in federal court on September 28, 2020, to possessing child pornography.  Smith was charged and pleaded guilty in Dane County Circuit Court to 1st Degree Reckless Endangerment in connection with the shooting.

The charges against Smith were the result of an investigation conducted by the Madison Police Department.  The prosecution of the case has been handled by Assistant U.S. Attorney Julie S. Pfluger. 

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Edreece Nance, 47, Superior, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 78 months in federal prison for possessing with intent to distribute 50 grams or more of methamphetamine. This prison term will be followed by 4 years of supervised release.

The conviction in this case is the result of an investigation conducted by the Superior Police Department in October and November 2019.  Law enforcement arranged a series of controlled buys with a confidential informant who purchased methamphetamine from Nance in the Superior area on 10 occasions, for a total of approximately 268 grams.  In addition, law enforcement recovered approximately 222 grams of methamphetamine and two firearms from Nance’s apartment on November 14, 2019.  He is prohibited from possessing any firearms as a result of prior felony drug convictions in Pennsylvania.

In an interview with law enforcement, Nance admitted to selling methamphetamine in the Superior area, and possessing the methamphetamine and firearms found in his apartment.  Further, Nance confirmed that he intended to sell that methamphetamine.  

At sentencing Judge Peterson remarked that the quantity of methamphetamine involved in this case was significant.  He also noted that Nance’s conduct had a “damaging and degrading” effect on the community, because his conduct preyed on the illness of others.

The charges against Nance were the result of an investigation conducted by the Superior Police Department, Duluth Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Taylor L. Kraus. 

MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced today that AutoGenomics, Inc. has agreed to pay the United States $2,538,000 to resolve allegations that it violated the False Claims Act and Anti-Kickback Statute by engaging in a scheme to bill Medicare for molecular genetic testing performed for nursing home patients that were induced by the payment of remuneration (which includes money or anything of value), or a “kickback,” for the referral of those genetic tests. 

AutoGenomics, located in Carlsbad, California, formerly owned and operated a laboratory doing business as PersonalizeDx Labs (collectively “AutoGenomics”).  In April 2013 and March 2015, AutoGenomics entered into agreements with a California-based health care marketing company to utilize AutoGenomic’s laboratory services for tests ordered by the health care marketing company’s clients.  Pursuant to these agreements, AutoGenomics paid the health care marketing company a specified monetary kickback for each test that was reimbursed by Medicare, but only if Medicare paid the claim.  Under these agreements, the amount of the kickback was based either on a percentage or fixed amount of Medicare’s reimbursement for each test.  As explained below, such agreements violate federal law. 

Prestige Administrative Services, LLC, doing business as Prestige Healthcare (“Prestige”), owned and operated residential nursing homes in Wisconsin and other states.  In 2014 and 2015, Prestige provided the health care marketing company information to identify its Medicare patients, and authorized access to its patients to obtain buccal cell samples and submitted the samples to AutoGenomics for the molecular genetic testing to be performed and claims submitted to Medicare for payment.  Prestige, while not admitting liability, previously settled its alleged role in the conduct for nearly $1 million for causing the submission of medically unnecessary tests.

According to this settlement, the United States alleged that AutoGenomics’s submission of genetic testing claims to Medicare that were predicated by the payment of kickbacks negotiated in the agreements violated the Anti-Kickback Statue and the False Claims Act because a claim for reimbursement that is the result of a kickback is a false claim.  The United States further alleged that the false claims resolved by the settlement were for the payment of kickbacks for the submission of laboratory genetic testing performed for patients residing at 76 nursing homes, at both Prestige and non-Prestige owned and operated facilities. 

“The purpose of the Anti-Kickback Statute is to protect federal health beneficiaries and Medicare from the influence of money or other things of value for the referral of unnecessary testing, and it guards against waste, fraud, and abuse of our federal health care programs,” said United States Attorney Blader.  “The state surveyors provided crucial assistance in identifying the facts that led to our federal investigation and this settlement.  This settlement is a perfect example of our state and federal partners working cooperatively to uncover Medicare fraud and preying upon the elderly for financial gain.” 

“The payment of kickbacks is a corrupt practice that inappropriately influences an individual or entity’s capacity to make unbiased decisions which is of particular concern in the health care environment” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General -  Chicago Region (“HHS OIG”).  “Kickbacks can result in overuse of diagnostic testing and other services that ultimately lead to increase program costs and waste valuable taxpayer dollars.”

The claims resolved by the settlement are allegations only; there has been no determination of liability. 

The settlement was the result of a joint investigation conducted by HHS OIG and the U.S. Attorney’s Office for the Western District of Wisconsin.  The alleged factual basis for the investigation was discovered during survey work performed by professionals at the Wisconsin Department of Health Services Division of Quality Assurance.  The prosecution of this case was handled by Assistant U.S. Attorney Leslie K. Herje. 

MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, joins with Concerns of Police Survivors (C.O.P.S.), and other organizations, in recognizing local, state and federal law enforcement officers on Law Enforcement Appreciation Day tomorrow.  The designation of Law Enforcement Appreciation Day on January 9 each year was initiated by C.O.P.S. in 2015 to show support for America’s law enforcement officers.

“It is an honor to recognize and celebrate the men and women who devote their lives to protecting our communities,” said U.S. Attorney Blader.  “On any given day, they may confront a violent armed offender, assist a victim of human trafficking, respond to a family devastated by drug addiction, or ensure that our children travel to school safely.  I ask the citizens of Wisconsin to join me in saying ‘thank you’ to these heroes who protect our schools, workplaces, roads, and homes.”   

Since 2015, a number of organizations also have recognized the designation.  These organizations include, but are not limited to, the FBI National Academy Associates, the Fraternal Order of Police, the International Association of Chiefs of Police, the Officer Down Memorial Page, Law Enforcement United, the National Law Enforcement Officers Memorial Fund, International Conference of Police Chaplains, National Troopers Coalition and others. 

Individuals may show support for law enforcement on Saturday, January 9 by wearing blue, taking treats to a local department, flying a blue ribbon on a car antenna or mailbox, or by thanking an officer in person. 

MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that two members of a Wausau, Wisconsin methamphetamine conspiracy were sentenced by Chief U.S. District Judge James D. Peterson.  Lisa Xiong, 33, Wausau, was sentenced on Thursday, December 17 to 13 years in federal prison for her role as the leader of the conspiracy. Xiong pleaded guilty to this charge on September 29, 2020.  John Gates, 51, Hewitt, Wisconsin, pleaded guilty and was sentenced today to 5 years in federal prison.

Throughout the course of the conspiracy, from November 2018 through June 2019, Lisa Xiong made numerous trips to Minnesota to pick up pound quantities of almost pure methamphetamine from several sources. She oversaw at least 10 people in the Wausau area who distributed the methamphetamine on her behalf. Law enforcement agents seized almost 5 pounds of methamphetamine in connection with the investigation, though agents believe the conspiracy was responsible for well over 10 pounds flowing into the Wausau area. 

Xiong has a significant criminal history and was on supervision in two Marathon County cases while overseeing her drug-trafficking operation. Judge Peterson remarked on her increasing leadership role while taking advantage of people devastated by methamphetamine. Xiong used multiple methamphetamine addicts to insulate her from police detection by dealing for her and collecting money.  

Gates promised Lisa Xiong thousands of dollars to contribute towards pounds of methamphetamine during his role in the conspiracy and Xiong considered him a trusted source of money. Gates’s relevant conduct consisted of over two pounds of methamphetamine that he was distributing in his community while on supervision in a Wood County case for possessing methamphetamine. Judge Peterson acknowledged that though Gates is an addict, he was a fairly sophisticated dealer who was a step-up from a street-level dealer.

Ten individuals were charged in an indictment returned by a federal grand jury in September 2019 for their roles in this methamphetamine distribution conspiracy.  Lisa Xiong and John Gates are the fourth and fifth defendants to plead guilty and be sentenced.  The others are:

1.         Meng Xiong, Wausau, was sentenced to 5 years on June 12, 2020;

2.         Chou Xiong, Wausau, was sentenced to 78 months on December 8, 2020; and

3.         Soua Khang, Wisconsin Rapids, Wisconsin, was sentenced to 7 years on December 9, 2020.

The charges against these defendants were the result of an investigation conducted by the Federal Bureau of Investigation; Central Wisconsin Narcotics Task Force; Marathon County Sheriff’s Office; Wisconsin Department of Justice Division of Criminal Investigation; Lincoln County Sheriff’s Office; Wausau Police Department; Everest Metro Police Department; and Wisconsin State Patrol.  The prosecution of the cases has been handled by Assistant U.S. Attorney Diane Schlipper.

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Antonio Rowe, 31, Madison, Wisconsin, was sentenced on Friday, December 18 by U.S. District Judge William Conley to 100 months in federal prison for three bank robberies.  Rowe pleaded guilty to these charges on July 28, 2020.

Over the course of two weeks in September 2019, Rowe robbed three banks in Madison.  Rowe robbed the BMO Harris Bank on Sherman Avenue on September 10, 2019, the Associated Bank on East Towne Boulevard on September 13, 2019, and the UW Credit Union on Northport Drive on September 26, 2019.  After the last robbery, Rowe fled in a vehicle with his co-defendant Ramon Howard.  Rowe drove at high speeds through residential neighborhoods, striking other vehicles and eventually crashing on East Washington Avenue.  Rowe and Howard both fled on foot but were apprehended by Madison police officers.  Howard was in possession of the stolen cash.

In sentencing Rowe for these bank robberies, Judge Conley noted the severity of these offenses which ended only after a high-speed chase that endangered others in the community.  Rowe said that he was acting out of impulse, but Judge Conley said that he was not taking responsibility for his actions.  Judge Conley noted Rowe’s lengthy criminal history, opportunities to rehabilitate himself, and the fact that he committed these bank robberies while on state supervision.  Rowe was also ordered to pay restitution.

Howard, 37, Portage, Wisconsin, pleaded guilty on June 25 to committing the Associated Bank and UW Credit Union robberies with Rowe and with robbing the Summit Credit Union on Thierer Road on September 16, 2019.  He was sentenced by Judge Conley to 9 years in federal prison on September 18. 

The charges against Rowe and Howard were the result of an investigation conducted by the Madison Police Department and Federal Bureau of Investigation.  The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan. 

MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Alexander Cappard, 26, Apple Valley, Minnesota, was sentenced today by U.S. District Judge William Conley to 66 months in prison for distributing methamphetamine.  Cappard pleaded guilty to this charge on September 29, 2020. 

On March 16, 2020, a government confidential informant bought 52 grams of methamphetamine from Cappard and his co-defendant, Alisha Heiman, at a hotel room in Eau Claire, Wisconsin.  Later that day, officers executed a search warrant at Cappard’s hotel room.  Cappard attempted to flee the hotel room but was arrested after a brief chase.  During the search, officers found a loaded firearm, a bag containing 69 grams of methamphetamine, and a digital scale in the bathroom.  Officers found an additional 32 grams of methamphetamine in other areas of the hotel room.

During a post-arrest interview with officers, Cappard admitted to traveling to Eau Claire from Minnesota for the purpose of selling methamphetamine.  Cappard stated that he was working with Heiman to sell one pound of methamphetamine from the hotel room.

At the sentencing hearing, Judge Conley noted Cappard currently has four pending felony cases in Minnesota, with several of the cases involving methamphetamine and firearms.

Heiman pleaded guilty on September 29 to distributing methamphetamine.  She is scheduled to be sentenced by Judge Conley on December 22. 

The charge against Cappard was a result of an investigation conducted by the West Central Drug Task Force, the Eau Claire County District Attorney’s Office, and the Drug Enforcement Administration.  The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.

MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that two individuals pleaded guilty and were sentenced this week in connection with a methamphetamine conspiracy in Wausau, Wisconsin.  Chou Xiong, 37, Wausau, pleaded guilty and was sentenced yesterday by U.S. District Judge James D. Peterson to 6 ½ years in federal prison for conspiring to distribute methamphetamine.  Soua Khang, 24, Wisconsin Rapids, Wisconsin, pleaded guilty and was sentenced today by Judge Peterson to 7 years in federal prison for conspiring to distribute methamphetamine.

Chou Xiong and Soua Khang conspired to distribute methamphetamine as part of a large methamphetamine trafficking operation that existed from at least November 2018 through June 2019 in the Wausau area.  Lisa Xiong, the leader of the conspiracy, brought pounds of methamphetamine into the Wausau area from Minneapolis/St. Paul, Minnesota.  Law enforcement agents seized almost 5 pounds of methamphetamine in connection with the investigation, though agents believe the conspiracy was responsible for well over 10 pounds flowing into the Wausau area.  Lisa Xiong pleaded guilty in September and is scheduled to be sentenced by Judge Peterson on December 17. 

Khang assisted Lisa Xiong by collecting debts from local methamphetamine distributors and supervising lower level deals.  Khang also accompanied Lisa Xiong on trips to Minnesota to pick-up large quantities of methamphetamine and acted as her back-up should anything happen.  Judge Peterson described her as the protégé to the leader of the organization. Khang was also charged in three counts with distributing methamphetamine.  Khang was responsible for approximately 120 grams of methamphetamine, but she had a much larger role as the right-hand-person to Lisa Xiong.  Khang has a significant criminal history, though this is her first federal conviction. 

Chou Xiong conspired with Lisa Xiong by traveling with her to the drug source in Minnesota, pooling money with her to buy large quantities of methamphetamine and overseeing lower-level drug distributors in the Wausau area. Additionally, Chou Xiong was charged with distributing methamphetamine that he purchased from Lisa Xiong on eight occasions. Conservatively, his relevant conduct included almost 200 grams of pure methamphetamine.  This is Chou Xiong’s first federal conviction.

Chou Xiong, Soua Khang and nine other individuals were charged in an indictment returned by a federal grand jury in September 2019 for their roles in this methamphetamine distribution conspiracy.  Chou Xiong and Soua Khang are the second and third individuals to plead guilty and be sentenced.  On June 12, 2020, Meng Xiong, also of Wausau, was sentenced by Judge Peterson to 5 years in prison for his role in the conspiracy.

The charges against these individuals were the result of an investigation conducted by the Federal Bureau of Investigation; Central Wisconsin Narcotics Task Force; Marathon County Sheriff’s Office; Wisconsin Department of Justice Division of Criminal Investigation; Lincoln County Sheriff’s Office; Wausau Police Department; Everest Metro Police Department; and Wisconsin State Patrol.  The prosecution of the cases has been handled by Assistant U.S. Attorney Diane Schlipper. 

MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Seth Strand, 31, La Crosse, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 11 years in federal prison for possessing methamphetamine with intent to distribute.

On January 22, 2020, Strand was a passenger in a Ford Explorer that was pulled over by the Wisconsin State Patrol in La Crosse County.  Troopers arrested Strand after being notified of a felony arrest warrant for him.  Troopers searched the Explorer and found a safe behind the passenger seat.  Troopers found a key to the safe on the key chain for the Explorer.  A search of the safe revealed approximately 407 grams of methamphetamine.  During a post-arrest interview, Strand admitted he intended to sell the methamphetamine to several individuals in La Crosse County.

In imposing the sentence, Judge Conley noted that the Strand has an extensive criminal history including four felony drug trafficking convictions since 2013.  Judge Conley also noted that the sentence was appropriate because Strand was in possession of nearly one pound of methamphetamine while on state supervision for two separate methamphetamine trafficking convictions in La Crosse County.   

The charge against Strand was a result of an investigation conducted by the Wisconsin State Patrol and the Drug Enforcement Administration.  The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.

MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that James Dean, 37, La Crosse, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 10 ½ years in federal prison for possessing methamphetamine with intent to distribute.

On February 5, 2020, La Crosse police officers received a tip from an informant that Dean was at a gas station.  Officers were aware that Dean had an active felony arrest warrant.  Officers responded to the gas station and saw Dean get into the passenger side of a car.  As the car left the gas station, officers attempted a traffic stop but Dean ran out of the car.  During a brief foot pursuit, Dean ran full speed into a picnic table and flipped into the air.  After Dean hit the ground, officers were able to arrest him after a short struggle.  

During a search incident to the arrest, officers found multiple bags in Dean’s pockets containing a total of 58 grams of methamphetamine.  Officers searched the area around Dean and found a loaded 9 mm Smith and Wesson handgun.  Officers also searched the vehicle in which Dean was a passenger and found 219 grams of methamphetamine hidden inside of a laptop case. 

In imposing the sentence, Judge Peterson expressed his displeasure that the crime involved a large amount of methamphetamine, a loaded firearm, and resisting arrest.  Judge Peterson noted that Dean has a “really horrible” criminal history, including over 20 felony convictions, and was involved in selling a significant amount of methamphetamine to the La Crosse community.  Judge Peterson also stated that Dean was participating in criminal activity at a high level and the 10 ½ year sentence was necessary to protect the public. 

The charge against Dean was a result of an investigation conducted by the La Crosse Police Department.  The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jermaine Stapleton, 37, Eagan, Minnesota was sentenced on November 24 by U.S. District Judge William M. Conley to 78 months in federal prison for possessing with intent to distribute 50 grams or more of methamphetamine.  This prison term will be followed by 4 years of supervised release.  Stapleton pleaded guilty to this charge on September 3, 2020.

On February 25, 2020, law enforcement officers conducted surveillance on a local methamphetamine dealer, Travis Hanson.  He was observed driving with his girlfriend, Ashley Speicher, from their hotel in Menomonie, Wisconsin to meet with Hanson’s drug source, Jermaine Stapleton, in St. Paul, Minnesota.  Hanson and Speicher returned to Menomonie with Stapleton following in a separate vehicle.  They were all taken into custody upon arrival back in Menomonie.  Law enforcement searched Stapleton’s car and located 236 grams of methamphetamine, 11.5 grams of heroin, small amounts of crack cocaine and marijuana, as well as a digital scale and baggies.  Officers located a drug ledger in Speicher’s purse.

In an interview with law enforcement, Stapleton admitted to bringing a half pound of methamphetamine from Minnesota to Wisconsin which he intended to deliver to Hanson.  In a separate interview, Hanson admitted to being involved in drug trafficking and selling large quantities of methamphetamine.  He further admitted to travelling to St. Paul on February 25, 2020 to meet Stapleton to pick up methamphetamine and heroin.  He was supposed to help Stapleton sell the methamphetamine and heroin in Wisconsin. 

Hanson pleaded guilty to conspiring to distribute 50 grams or more of methamphetamine and was sentenced to 10 years in federal prison by Judge Conley on September 25, 2020.  Speicher pleaded guilty for her role in the conspiracy and was sentenced to 42 months in federal prison by Judge Conley on October 28, 2020.

The charge against Stapleton was the result of an investigation conducted by the West Central Drug Task Force, Chippewa County, Dunn County, and Eau Claire County Sheriff’s Departments, Chippewa Falls, Eau Claire, and Menomonie Police Departments, Drug Enforcement Administration, and Dunn County District Attorney’s Office.  The prosecution of the case has been handled by Assistant U.S. Attorney Steven P. Anderson. 

MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced today that two sealed indictments returned on November 18 by a federal grand jury in the Western District of Wisconsin, sitting in Madison, have been unsealed.  You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.

Madison Man Charged with Sex Trafficking & Child Pornography Crimes

Brian Lamphier, 50, Madison, Wisconsin, is charged with sex trafficking a minor.  The indictment alleges that from March 2020 to June 1, 2020, Lamphier solicited a person knowing the person was a minor, and that the minor would be caused to engage in a commercial sex act.  The indictment also charges that Lamphier distributed child pornography on April 8, 2020.  The indictment alleges that he used Facebook to send a file containing an image of a minor engaged in sexually explicit conduct.

If convicted, Lamphier faces a mandatory minimum penalty of 10 years and a maximum of life in federal prison on the sex trafficking a minor charge, and a mandatory minimum of 5 years and a maximum of 20 years on the child pornography charge.  The charges against him are the result of an investigation by the Madison Police Department.  Assistant U.S. Attorney Julie S. Pfluger is handling the prosecution.

Sun Prairie Man Charged with Gun Crime

Xavier Arthur, 23, Sun Prairie, Wisconsin, is charged with being a felon in possession of a firearm and ammunition.  The indictment alleges that on May 25, 2020, Arthur possessed a loaded 9mm pistol and 9mm ammunition. 

If convicted, Arthur faces a maximum penalty of 10 years in federal prison.  The charge against him is the result of an investigation by the Sun Prairie Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorney Corey C. Stephan is handling the prosecution.

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Francesco Anglin, 23, Madison, Wisconsin pleaded guilty and was sentenced today by Chief U.S. District Judge James Peterson to 43 months in prison, to be followed by 3 years of supervised release, for possession of a firearm as a convicted felon.

On July 17, 2019, Anglin was convicted in state court for possessing a firearm as a felon.  Although he was sentenced to a year in prison, the prison sentence was stayed for three years of probation and 30 days in jail. Anglin’s probation was revoked based on this federal offense.

On November 12, 2019, Anglin was in a gun store in Sun Prairie, Wisconsin, with Lydia Molina, who was attempting to purchase a Glock 43 9mm handgun for Anglin.  While in the store, Anglin handled and possessed a semiautomatic rifle.  Anglin also purchased an extended magazine for the Glock 43 9mm and gave Molina $20 to pay for the Glock.  When Molina’s background check was delayed, Anglin returned the magazine for a cash refund.

The investigation revealed that Molina was purchasing handguns for Anglin, who would then sell them to others.  Two of the handguns that Molina purchased were recovered when two felons were arrested in unrelated cases. Molina pleaded guilty to attempting to make a straw purchase and was sentenced to 2 years of probation.

In sentencing Anglin, Judge Peterson found that Anglin was providing illegal firearms to others which presented a significant danger to the community.  Judge Peterson found that the facts of the case warranted a sentence greater than that recommended in the sentencing guidelines.  The 43-month sentence is to run consecutively to the year in prison that Anglin served on his state revocation.

The charge against Anglin was the result of an investigation conducted by the Sun Prairie Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.

The charge against Anglin was brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that James Vinson, 33, La Crosse, Wisconsin, pleaded guilty and was sentenced today by Chief U.S. District Judge James D. Peterson to 11 years in federal prison for distributing 50 grams or more of methamphetamine.  This prison term will be followed by 6 years of supervised release.  

On December 5, 2019, officers with the West Central Metropolitan Enforcement Group arrested Vinson after he sold 111 grams of pure methamphetamine to a confidential informant in La Crosse.  At the time, Vinson was already on state supervision for a prior methamphetamine trafficking conviction. 

The charge against Vinson was the result of an investigation conducted by the West Central Metropolitan Enforcement Group, La Crosse County Sheriff’s Office, La Crosse and Onalaska Police Departments, and the Drug Enforcement Administration.  The prosecution of the case has been handled by Assistant U.S. Attorney Steven P. Anderson. 

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that James Moss, 61, Ladysmith, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 18 months in federal prison for conspiring to store and transport hazardous waste without required permits and manifests, in violation of the Resource Conservation and Recovery Act, and with conspiring to evade the payment of employment taxes and income taxes to the IRS. 

Moss pleaded guilty to these charges on September 1, 2020.  Moss worked for 5R Processors Ltd. (5R) based in Ladysmith, which was a Wisconsin-based corporation involved in recycling electronic equipment, appliances, and other assets.  According to the information, 5R operated numerous facilities and warehouses including in Ladysmith, Glen Flora, Catawba and West Bend, Wisconsin, and in Morristown, Tennessee.  Moss started at 5R in January 2007 and became its President in 2010.  As President of 5R, Moss was responsible for managing all plant operations, including shipping, receiving, trucking, sales, de-manufacturing, warehousing, accounting, and payroll. 

From 2011 to 2016, Moss and others, conspired to (1) store hazardous waste (i.e broken and crushed CRT glass that contained lead) at unpermitted facilities in Catawba and Glen Flora in Wisconsin, and in Morristown, Tennessee; (2) transport the hazardous waste without a required manifest; and (3) conceal the above violations from state regulators in Wisconsin and Tennessee, as well as auditors with a nationwide recycling certification program (R2). 

At his plea hearing, Moss admitted to attempting to conceal the illegal storage and transport of the crushed leaded glass by various means, including: (1) changing the date labels on the containers; (2) hiding the containers by putting them inside semi-trailers and locking the trailer doors; (3) moving the containers to the back of the warehouse and stacking other pallets in front of them, making it impossible for regulators to see the boxes or inspect them; (4) storing the containers at a warehouse on Artisan Drive in Glen Flora, Wisconsin (known as the “Sunshine Building”), and not disclosing the existence of this warehouse, or its contents, to state regulators or R2 auditors; (5) storing the containers at 5R’s plant in Morristown, Tennessee in two warehouse spaces that did not have electricity or power, and which were referred to by 5R employees as the “dark side” and the “dark-dark side;” and (6) providing the state regulators with inaccurate inventory and shipping records for the leaded glass.

Moss also pleaded guilty to a conspiracy with others to defraud the IRS in the collection of employment taxes and income taxes for 5R and two other related companies, Wisconsin Logistic Solutions (WLS) and Pure Extractions.  Moss and others failed to truthfully account for and pay over to the IRS all of the federal income taxes withheld from employees and FICA taxes due and owing to the United States for 5R, WLS and Pure Extractions, totaling $858,101.29.

At today’s sentencing, Judge Conley told Moss that his conduct is inexplicable given Moss’s upbringing and life history prior to working at 5R.  The judge noted that Moss rationalized his criminal conduct by deluding himself that it was okay because it was the only way to keep himself and other members in the community employed, but that Moss understood what he was doing was wrong --year after year.

Judge Conley praised Moss by doing the right thing and cooperating with the government to help explain and unravel the criminal conspiracy but added that Moss still needed to pay a price.  The judge added, “I hope this sentence delivers the message of the severity of your conduct and the debt you must pay to society.”

The charges against Moss were the result of an investigation conducted by the Wisconsin Department of Natural Resources, Bureau of Law Enforcement; the U.S. Environmental Protection Agency, Criminal Investigation Division; and IRS Criminal Investigation.  The prosecution of the case has been handled by Assistant U.S. Attorney Daniel J. Graber.

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Derek Evans, 32, Milwaukee, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 33 months in federal prison for possessing 28 grams or more of crack cocaine with the intent to distribute. This prison term will be followed by 3 years of supervised release.

On February 7, 2020, officers with the Dane County Narcotics Task Force arrested Evans after he sold crack cocaine to an undercover agent and a confidential informant. At the time of his arrest, the defendant had approximately 60 grams of crack cocaine in his pants.

In sentencing Evans, Chief Judge Peterson noted that the amount of crack cocaine found in the defendant’s possession was not consistent with one-time distribution, and instead reflected that he was exploiting the addiction of others.

The charge against Evans was the result of an investigation conducted by the Dane County Narcotics Task Force and Madison Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Taylor L. Kraus. 

MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today.  You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.

Wausau Man Charged with Fraud Scheme Involving Illegal Distribution of Prescription Drugs

Kenneth Zipperer, 54, Wausau, Wisconsin, is charged with mail fraud, wire fraud, dispensing prescription drugs without a license, and money laundering as part of a scheme involving an unlicensed pharmacy and the distribution of misbranded prescription drugs.  The 26-count indictment alleges that Zipperer, who worked as an insurance broker selling Medicare supplement health insurance policies to individuals age 65 or older, imported prescription drugs from India that were not approved by the Food and Drug Administration for use in the United States and sold them to his health insurance clients.

The indictment alleges that Zipperer was not licensed to dispense or prescribe prescription drugs, and that he used his company staff, computers, and office space to order prescription drugs from India, break down bulk shipments into quantities for individual clients, store the drug inventory, issue invoices for payment, and deposit drug customer checks into the company’s business bank account.  The indictment further alleges that Zipperer requested his prescription drug customers to pay him in cash to avoid creating a paper trail of the financial transactions associated with his underground pharmacy’s operations and that he conducted financial transactions knowing they represented the proceeds of unlawful activity.  Finally, the indictment seeks the forfeiture of $231,315 representing the proceeds of the alleged mail and wire fraud, and $227,116 representing the amount of money involved in the money laundering offenses.

If convicted, Zipperer faces a maximum penalty of 20 years in federal prison on each of the 5 mail fraud charges, 10 wire fraud charges, and the 9 money laundering charges.  The charge of dispensing prescription drugs without a license has a maximum penalty of 3 years in federal prison.

The charges against Zipperer are the result of an investigation by the Food and Drug Administration, Office of Criminal Investigations; U.S. Postal Inspection Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and IRS Criminal Investigation.  Assistant U.S. Attorney Daniel J. Graber is handling the prosecution.  

Man Charged with Interfering with Railroad Conductor

Timothy Thomas, 31, Portland, Oregon, is charged with interfering with a railroad conductor.  The indictment alleges that on November 7, 2020, Thomas interfered with an Amtrak railroad conductor while the conductor was employed in dispatching, operating, controlling, and maintaining on-track equipment, and that Thomas did so with a reckless disregard for the safety of human life.

If convicted, Thomas faces a maximum penalty of 20 years in federal prison.  The charge against him is the result of an investigation by the Monroe County Sheriff’s Office, Wisconsin State Patrol, Amtrak Police Department, Canadian Pacific Police Service, and the Federal Bureau of Investigation.  Assistant U.S. Attorney Chadwick M. Elgersma is handling the prosecution.

La Crosse Man Charged with Drug Crimes Involving Fentanyl & Cocaine

Jesse J. Stringer, 33, La Crosse, Wisconsin, is charged with 2 counts of distributing fentanyl, 1 count of possessing fentanyl with intent to distribute, and 1 count of possessing cocaine with intent to distribute.  The indictment alleges that Stringer distributed fentanyl on September 23 and September 24, 2020.  It further alleges that on October 13, 2020, he possessed cocaine and 400 grams or more of fentanyl for distribution. 

If convicted, Stringer faces a maximum penalty of 20 years in federal prison on each of the distribution charges and the cocaine charge.  The charge alleging the possession of 400 grams or more of fentanyl for distribution has a mandatory minimum penalty of 10 years and a maximum of life in prison. 

The charges against Stringer are the result of an investigation by the La Crosse and Campbell Police Departments and the Federal Bureau of Investigation.  Assistant U.S. Attorney Steven P. Anderson is handling the prosecution.

Hudson Man Charged with Distributing Methamphetamine

Jacob A. Willox, 27, Hudson, Wisconsin, is charged with distributing 50 grams or more of methamphetamine.  The indictment alleges that he distributed the methamphetamine on May 5, 2020.

If convicted, Willox faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison.  The charge against him is the result of an investigation by the Central Wisconsin Narcotics Task Force.  Assistant U.S. Attorney Robert A. Anderson is handling the prosecution.

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jeremiah Edwards, 34, Madison, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to a total of 15 years in federal prison.   

On February 13, 2020, a jury found Edwards guilty of armed robbery of an O’Reilly Auto Parts store, brandishing a firearm during that crime, being a felon in possession of a firearm, possessing THC-products with an intent to distribute, and possessing a firearm in furtherance of the drug trafficking crime.  The jury reached its verdict after 7 hours of deliberations following four days of testimony in federal court in Madison.

The evidence presented at trial showed that Edwards, along with Kanasha Woods, robbed the O’Reilly Auto Parts Store at 1826 S. Stoughton Road in the Town of Blooming Grove in Dane County, on November 8, 2018.  Both Edwards and Woods brandished firearms during the robbery and obtained cash from the safe and cash register drawers.  Edwards and Woods fled the scene and drove to the Moorish Science Temple in downtown Madison where Madison police officers attempted a traffic stop.  Edwards evaded the stop and led the police in a high-speed chase through downtown Madison that ended with him crashing the vehicle, and fleeing the scene on foot.

During a search of the getaway vehicle, officers found the robbery proceeds, a ski mask and gloves used by Woods in the armed robbery, a receipt from Walmart showing the purchase of the mask and gloves, and a tactical light/laser that was on the firearm used by Edwards during the robbery.  Officers also found a variety of marijuana and THC products and marijuana in individually packaged portions, as well as multiple THC vape cartridges, THC oil, and THC edibles.  These products contained home-made labels with skull & crossbones in the names of “OG” and “LK.”  During a second search of the vehicle, officers found a loaded 9mm Glock 19 semi-automatic pistol along with a black stocking hat with a green Moorish star on it. Both of these items were found in a hidden compartment in the ceiling of the vehicle behind a sunglasses holder.  Analysts from the Wisconsin State Crime Lab in Madison testified that the Glock 19 and the black stocking hat contained Edwards’s DNA, and that the drugs found in the Mitsubishi Outlander contained THC, which is a Schedule I controlled substance.  The government also presented evidence that four hours after the robbery, Edwards drained his bank account at an ATM in a laundromat located just 1 mile from the crash site, and fled to Chicago using a fake ID.  He was arrested in Chicago on March 11, 2019.

At today’s sentencing, Edwards accused the police, prosecutors, judge and jury of being racists for allowing the conviction of an innocent Black man.  Judge Peterson took issue with Edwards’s comments and noted that he has no doubt that Edwards is guilty, and that Edwards committed very serious crimes including an aggressive armed robbery followed by a getaway that involved unsafe driving resulting in a car crash.  Judge Peterson also explained to Edwards that his armed robbery not only impacted the three victims in the store, but he also exploited a confused and vulnerable young woman to be his accomplice.  Judge Peterson added that Edwards failed to take responsibility for his actions, and his trial strategy involved a false alibi where he convinced a different woman to supply the FBI with falsified evidence to support the fabricated alibi.

In choosing a sentence of 15 years, Judge Peterson told Edwards that his primary task in imposing such a long sentence was to incapacitate Edwards and protect the public from Edwards.  Judge Peterson pointed out that Edwards had a prior felony conviction for robbery and then engaged in another armed robbery in a very aggressive manner that put people in danger.

Federal law requires that the mandatory 7-year and 5-year gun sentences be served consecutively to each other, and to the sentence imposed on the robbery charge, the drug charge, and the felon in possession charge.

The charges against Edwards and Woods are the result of an investigation by the Dane County Sheriff’s Office, the Madison Police Department, and the Federal Bureau of Investigation. The prosecution of the case was handled by Assistant United States Attorneys Chadwick M. Elgersma and Daniel J. Graber.

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jonathan E. Tillman, 23, Rice Lake, Wisconsin, pleaded guilty and was sentenced today by Chief U.S. District Court Judge James D. Peterson to 10 years in federal prison for possessing child pornography.  This term of imprisonment will be followed by 15 years of supervised release. 

On April 6, 2020, Tillman’s wife contacted law enforcement to report that she was looking through her husband’s phone and saw images and a video of him sexually assaulting a child known to the couple.  Law enforcement officers obtained a search warrant for the phone and while they did not find those specific images, they did find other child pornography on the phone.  Officers also found evidence on the phone showing that on the same day Tillman’s wife called the police, Tillman researched how to do a factory reset on the phone.

In sentencing Tillman, Judge Peterson found him to be a danger to children based on the allegations in this case and his history of child pornography offenses going back several years. 

The charge against Tillman was the result of an investigation conducted by the Rice Lake Police Department and the Wisconsin Department of Justice Division of Criminal Investigation.  The prosecution of the case has been handled by Assistant U.S. Attorney Elizabeth Altman. 

MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Heather Bishop, 31, Lee’s Summit, Missouri was sentenced today by U.S. District Judge William M. Conley to 30 months in federal prison for conspiring with Crystal Austin, Shelly Scott, Jason Edge, and others to commit wire fraud throughout the country.  Bishop was ordered to pay restitution to Walmart, Inc., in an amount to be determined after a hearing on January 11, 2021.

Between February 2017 and March 2018, Bishop, Austin, Scott, Edge and others conspired to defraud Walmart, Inc. through use of stolen personal checks, identity fraud, and methods to bypass electronic check authorization measures, resulting in a loss of over $860,000 to Walmart.  The group used stolen identification cards of real people to perpetuate this fraud in 18 states, using more than 14 different stolen checking accounts.  Bishop and other co-conspirators would present a stolen check and false identification at the time of payment, and when the check was declined, the person presenting the check would pretend to call the check authorization company, when in fact, they would call a co-conspirator.  The co-conspirator would tell the clerk to accept the check, and the transaction would be complete. 

Scott and Edge were arrested by Monona Police on February 25, 2018, after Walmart employees became suspicious of their behavior. They were sentenced to 48 months in federal prison in November 2018 after pleading guilty for their roles in this fraud scheme.

Heather Bishop and conspirators Crystal Austin and Jennifer Austin were charged in this conspiracy and arrested in December 2019.  Crystal Austin pleaded guilty to the conspiracy and was sentenced to 65 months in prison in September 2020. Jennifer Austin has also agreed to plead guilty to the conspiracy and is scheduled for a guilty plea and sentencing hearing on December 15, 2020.

In sentencing Bishop, Judge Conley noted that this conspiracy involved not only Walmart as a victim, but also those whose identities and bank accounts were used in the fraud.  He noted that in Bishop’s case, her involvement seemed to be based on opportunity, family dysfunction, and anti-social personality and decision making.  In choosing a sentence of 30 months, Judge Conley also recognized that Bishop was less culpable than the co-conspirators previously sentenced in this case.

The charges against Heather Bishop and her co-conspirators were the result of an investigation conducted by the Federal Bureau of Investigation, Monona and Sun Prairie Police Departments, and police departments throughout the country, with the assistance of Walmart fraud investigators.  The prosecution of the case has been handled by Assistant U.S. Attorney Laura A. Przybylinski Finn.

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Demarious Gray, 29, Madison, Wisconsin pleaded guilty and was sentenced November 9, 2020, by Chief U.S. District Judge James D. Peterson to three years in prison for possessing heroin and cocaine with the intent to distribute, and possessing a firearm in furtherance of that drug trafficking crime.

In 2013, Gray was convicted in state court of an armed robbery in Wisconsin where he stole approximately $5,000 from a young woman at gunpoint and then threatened to kill her if she called the police.  He was given an eight-year prison sentence that was stayed for a term of probation.  In 2015, his probation was revoked after Gray was found with a gun and convicted of being a felon in possession of a firearm.

On October 9, 2017, Gray came into contact with law enforcement while driving and was found to be in possession of crack cocaine, heroin, and a .40 caliber Glock handgun.  He subsequently was indicted by a federal grand jury.  During the plea hearing on Monday, Gray admitted that he intended to sell the drugs and that the handgun was used to assist in his drug trafficking.

At sentencing, Judge Peterson noted that this was a very serious offense, that the heroin was laced with Fentanyl, and that Gray was armed with handgun and had a lot of ammunition in the car.  The judge commented that videos found on Gray’s cell phone appeared to be him showing off with the gun.  Judge Peterson said that after Gray’s brother was shot and killed in 2017, Gray should have known better but that his response was to become a part of the problem.  In arriving at a three-year consecutive sentence in the federal case, the court considered that Gray had already served three years in prison on a state revocation.

The charges against Gray were the result of an investigation conducted by Wisconsin Department of Justice Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan. 

This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime.  The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms. 

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Sandra Stiner, 66, Ladysmith, Wisconsin, was sentenced today by U.S. District Judge William Conley to five years in prison for wire fraud and aggravated identity theft.   Stiner pleaded guilty to these charges on August 12, 2020.

Stiner worked at the Rusk County Health and Human Service Department (HHS) for 42 years before retiring in January 2019.  While working for HHS, Stiner misappropriated $702,351, during a nine-year time span, from June 2010 to January 2019, by creating and submitting fictitious invoices allegedly from a home-based therapy company (R.Y.P.) for nonexistent intensive in-home autism services to twin boys.  

At her plea hearing on August 12, 2020, Stoner admitted that she used, without lawful authority, a means of identification of real people and real entities in an effort to create documentation that appeared legitimate and provided cover to support her fraud scheme, including taking the name and taxpayer identification number (TIN) of R.Y.P., and the name of its founder, Dr. K.L., and misusing them to create a nominee bank account, nominee email account, and fictitious invoices.

Stiner also admitted that part of her fraud scheme included her forging the signature of Dr. K.L. on various R.Y.P. documents and IRS forms to make these documents appear legitimate to Rusk County.  Stiner also admitted that she took the name of T&T S.C., a CPA firm in La Crosse, Wisconsin, and misused it to create a fictitious letter and financial statements for R.Y.P.  Stiner told Judge Conley that she created a nominee bank account on June 21, 2010 at Bank of America using the name of R.Y.P. and forged the signature of Dr. K.L. on the R.Y.P. direct deposit authorization form to make sure the payments came to Stiner and not the real owner of R.Y.P.  Based on these fictitious invoices, Rusk County paid $702,351 to Stiner’s nominee bank account over a 9-year period.

Judge Conley imposed a sentence of three years for the wire fraud charge and a consecutive two years for the aggravated identity theft charge, for a total prison sentence of five years.  Judge Conley ordered Stiner to report to prison on January 6, 2021.

In imposing sentence today, Judge Conley told Stiner that he has seldom seen someone whose conduct was so cynical, deliberative and longstanding.  He explained to Stiner that her conduct also undermined the public trust in government institutions.  Judge Conley ended his comments by telling Stiner, “I am holding you responsible for the decisions you made.”

The charges against Stiner are the result of an investigation conducted by the Rusk County Sheriff’s Office and the Federal Bureau of Investigation.  Assistant U.S. Attorney Daniel J. Graber is handling the prosecution.

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Justin Wenger, 38, Monticello, Wisconsin pleaded guilty and was sentenced today by Chief U.S. District Judge James Peterson to 42 months in prison, to be followed by two years of supervised release, for possession of ammunition as a convicted felon.

In 2014, Wenger was convicted of the felony crimes of burglary and theft of firearms when he and two others stole a significant amount of money and several firearms during a 2012 burglary.  He was sentenced to five years in prison to be followed by supervised release and probation.

On January 16, 2020, Wenger stole a box of .223 ammunition from a store in Monroe, Wisconsin.  The ammunition was for an AR15 rifle that he had just purchased for his son.  While investigating this theft, investigators searched Wenger’s residence and discovered not only the .223 ammunition and AR15, but seven firearms under Wenger’s bed and approximately 50 firearms in a safe.  Wenger said that the AR15 rifle belonged to his son, and the rest of the firearms belonged to his brother and father who were storing them at his house.

At sentencing, Judge Peterson noted that Wenger had simply disregarded his prohibition on possessing firearms and ammunition.  Judge Peterson said that Wenger posed a danger to society due to his poor decision making.  Judge Peterson ordered the federal sentence to run consecutive to a two-year prison term that Wenger was serving based on revocation of his state supervision for his 2014 conviction.

The charge against Wenger was the result of an investigation conducted by the Monroe and Monticello Police Departments, Green County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives.  The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan. 

The charge against Wenger was brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime.  The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Ashley Speicher, 33, Lublin, Wisconsin was sentenced yesterday by U.S. District Judge William M. Conley to 42 months in federal prison for conspiracy to distribute methamphetamine and heroin.   This prison term will be followed by three years of supervised release. 

On February 6 and 20, 2020, Speicher’s boyfriend, Travis Hanson, sold heroin to a confidential informant.  On February 25, 2020, law enforcement officers conducted surveillance on Hanson and observed him driving with Speicher from their hotel in Menomonie, Wisconsin to meet his drug source, Jermaine Stapleton, in St. Paul, Minnesota.  Hanson and Speicher returned to Menomonie with Stapleton following in a separate vehicle.  They were all taken into custody upon arrival back in Menomonie.  In Stapleton’s car, officers located 236 grams of methamphetamine, 11.5 grams of heroin, small amounts of crack cocaine and marijuana, as well as a digital scale and baggies.  Officers located a drug ledger in Speicher’s purse.

In an interview with law enforcement, Hanson admitted to being involved in drug trafficking and selling large quantities of methamphetamine.  He further admitted to travelling to St. Paul on February 25, 2020 to meet Stapleton to pick up methamphetamine and heroin.  He was supposed to help Stapleton sell the methamphetamine and heroin in Wisconsin.  Hanson said Speicher was with him for almost all of his drug dealings and she helped him find lower-level drug customers.  In a separate interview, Speicher admitted to travelling with Hanson to pick up methamphetamine. 

Hanson pleaded guilty to his role in this methamphetamine conspiracy and was sentenced to 10 years in federal prison by Judge Conley on September 25, 2020.  Stapleton pleaded guilty on September 3 to possessing with intent to distribute 50 grams or more of methamphetamine and is scheduled for a sentencing hearing before Judge Conley on November 24, 2020.  Stapleton faces a mandatory minimum term of imprisonment of five years and a maximum term of 40 years.

The charge against Speicher was the result of an investigation conducted by the West Central Drug Task Force; Chippewa County, Dunn County, and Eau Claire County Sheriffs’ Departments; Chippewa Falls, Eau Claire, and Menomonie Police Departments; Drug Enforcement Administration; and Dunn County District Attorney’s Office.  The prosecution of the case has been handled by Assistant U.S. Attorney Steven P. Anderson. 

MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Michael Carroll, 50, Milwaukee, Wisconsin, pleaded guilty and was sentenced today by U.S. District Judge William H. Conley to 10 years in prison for conspiring to distribute heroin.

In September 2019, Carroll arranged to expand his drug-distribution operation from Milwaukee to Madison, Wisconsin.  He drove large quantities of heroin, some of which tested positive for fentanyl, from Milwaukee to Madison where he used another person to sell the heroin and collect his money.  Between September 13 and November 15, 2019, Carroll conspired to sell heroin to an undercover police officer on multiple occasions.  His relevant conduct included over 400 grams of heroin.  During the execution of search warrants where he stayed in Milwaukee, law enforcement agents located several hidden firearms.

Carroll has a lengthy criminal history dating back over 30 years, including gun crimes, drug crimes, and a reckless homicide where he shot an innocent person after pointing a gun at someone else.  At the time of his arrest, Carroll was on state supervision for three criminal cases, including the reckless homicide.  Judge Conley remarked that at age 50, Carroll had yet to make any meaningful deviation from a criminal lifestyle. 

The charge against Carroll was the result of an investigation conducted by the Dane County Narcotics Task Force, the Wisconsin Department of Justice Division of Criminal Investigation, the Drug Enforcement Administration, and North Central HIDTA.  The prosecution of the case has been handled by Assistant U.S. Attorney Diane Schlipper. 

MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today.  You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.

Man Charged with Armed Robberies in Rock & Dane Counties

Devonti Wilson, 36, Janesville, Wisconsin, is charged with robbing seven businesses in Janesville, Fitchburg, and Madison, Wisconsin and attempting to rob a business in Madison, in September 2020.  The indictment also charges Wilson with brandishing a firearm during each robbery, and with being a felon in possession of a firearm and ammunition.  The indictment alleges that he robbed the following businesses:

1. Lions Quick Mart on Milton Avenue in Janesville on September 8;
2. Kelley Williamson Mobil on Fish Hatchery Road in Fitchburg on September 8;
3. 7-Eleven on South Park Street in Madison on September 8;
4. Attempted to rob the BP gas station on East Washington Avenue in Madison on September 8;
5. Kwik Trip on East Memorial Drive in Janesville on September 10;
6. Lions Quick Mart on East Memorial Drive in Janesville on September 10;
7. Exxon Tigermart on Milton Avenue in Janesville on September 10; and
8. Walgreens on Milton Avenue in Janesville on September 10.

If convicted, Wilson faces a maximum penalty of 20 years in federal prison on each robbery charge, and a mandatory penalty of seven years on each charge of brandishing a firearm during a crime of violence.  Any penalty imposed on the brandishing a firearm charges would be served consecutive to any other penalty imposed.  The felon in possession of a firearm and ammunition charge carries a maximum penalty of 10 years in federal prison.        

The charges against Wilson are the result of an investigation by the Janesville, Fitchburg and Madison Police Departments and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorney Taylor L. Kraus is handling the prosecution.

Madison Man Charged with Drug & Gun Crimes

Lucas J. Anderson, 25, Madison, Wisconsin, is charged with distributing crack cocaine and with being a felon in possession of a firearm.  The indictment alleges that he distributed crack cocaine on May 1, 2020, and that he possessed a loaded .40 caliber pistol on August 17, 2020.

If convicted, Anderson faces a maximum penalty of 20 years in federal prison on the drug charge and 10 years on the felon in possession of a firearm charge.  The charges against him are the result of an investigation by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorney Rita M. Rumbelow is handling the prosecution.

Madison Man Charged with Illegally Possessing Firearm

Jaime Williams, 33, Madison, Wisconsin, is charged with being a felon in possession of a firearm.  The indictment alleges that he possessed a loaded 9mm pistol on September 26, 2020.

If convicted, Williams faces a maximum penalty of 10 years in federal prison.  The charge against him is the result of an investigation by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorney Rita M. Rumbelow is handling the prosecution.

The indictments charging Wilson, Anderson, and Williams have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime.  The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms. 

Rusk County Man Charged with Possessing Methamphetamine for Distribution

Eric G. Cooke, 50, Ladysmith, Wisconsin, is charged with possessing 50 grams or more of methamphetamine with the intent to distribute.  The indictment alleges that he possessed the methamphetamine on July 2, 2020.

If convicted, Cooke faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison.  The charge against him is the result of an investigation by the West Central Drug Task Force; the Chippewa, Clark, and Rusk County Sheriffs’ Offices; the Ladysmith Police Department; and the Drug Enforcement Administration.  Assistant U.S. Attorney Steven P. Anderson is handling the prosecution.

MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, has returned the following indictments.  You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.

Columbus Man Charged with Defrauding Financial Institution

Michael Eisenga, 49, Columbus, Wisconsin, is charged with engaging in a scheme to defraud Alliant Credit Union, a financial institution in Rolling Meadows, Illinois from August 2016 to January 2019.  The indictment alleges that Eisenga, as the operator of CCC Lot 2, a limited liability company with a principal place of business in Columbus, made a false statement in an application for a mortgage loan from Alliant Credit Union for commercial property in Columbus. 

The indictment alleges that Eisenga represented to Alliant that CCC Lot 2 had secured Festival Foods Inc. as a tenant for the property through a 20-year lease agreement and that another company, Supervalue Holdings, Inc., had guaranteed the lease.  The indictment alleges that Eisenga provided Alliant with two signed documents he represented to be the lease with Festival Foods Inc. and the guarantee from Supervalue Holdings, Inc., but that neither of these documents were genuine.  Alliant approved CCC Lot 2 for the loan and paid out loan proceeds of approximately $6.9 million in March 2018. 

The indictment further alleges that as part of the scheme to defraud, after CCC Lot 2 defaulted on the loan, Eisenga provided Alliant with a document purporting to be an agreement terminating CCC Lot 2’s lease with Festival Foods Inc., but the document was not genuine.

If convicted, Eisenga faces a maximum penalty of 30 years in federal prison.  The charge against him is the result of an investigation by the Federal Bureau of Investigation.  Assistant U.S. Attorney Meredith Duchemin is handling the prosecution.

Man Charged with Defrauding Defense Department, Identity Theft & Money Laundering

Craig Klund, 57, Yankton, South Dakota, formerly of Chippewa Falls, Wisconsin, is charged in a 19-count indictment with a scheme to defraud the U.S. Department of Defense (DoD).  The indictment alleges that Klund obtained money from DoD contracts under false pretenses by shielding his true identity from the DoD, and not disclosing the fact that he was the person bidding and winning DoD contracts.  The indictment charges Klund with 10 counts of wire fraud, three counts of false statements, two counts of identity theft, and four counts of money laundering.  The indictment alleges that:

1. Klund created fake identities and formed multiple shell companies that listed fake addresses and fake contact persons in an effort to hide his identity, and that he attempted to engage in bid rigging by using his various shell corporations to bid on the same defense contracts in an effort to make it look like the DoD was receiving multiple competitive bids from different defense contractors, when in fact, the bids were coming from Klund;
2. Klund supplied nonconforming parts to the DoD, which were being used in important military applications;
3. Klund failed to deliver parts that he contracted with DoD to provide, but submitted invoices to DoD seeking payment for parts that were never shipped;
4. Klund lied to various DoD inspectors about his true identity;
5. Klund used, without lawful authority, a means of identification of real persons in an effort to hide his identity as the person who was actually running his shell companies;
6. Klund created shell companies after two of his other companies were disbarred from participating in the U.S. government procurement program in 2015;
7. In 2018, Klund relocated his business operations from Chippewa Falls to South Dakota in an effort to conceal and evade his criminal activity from the DoD;
8. Klund took steps to conceal his criminal activity from the U.S. government by not reporting any of his DoD gross receipts to the IRS; and
9. Klund engaged in money laundering as a way to disguise his receipt and control of the DoD proceeds paid to his shell companies. 

The indictment alleges that Klund used at least 10 different shell companies and was awarded government contracts valued at over $4,000,000 from 2013 to 2018.

If convicted, Klund faces a maximum penalty of 20 years in federal on each wire fraud charge, five years on each false statement charge, 10 years on each money laundering charge, and a mandatory minimum of two years on each identity theft charge.  Federal law requires that a sentence imposed on the identity theft charges be served consecutive to any other sentence imposed. 

The charges against Klund are the result of an investigation by the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigation Service; U.S. Air Force, Office of Special Investigations; U.S. Army, Criminal Investigation Division, Major Procurement Fraud Unit; U.S. Naval Criminal Investigative Service; U.S. General Services Administration, Office of Inspector General, Office of Investigations; and IRS Criminal Investigation.  Assistant U.S. Attorney Daniel Graber is handling the prosecution.

Minnesota Man Charged with Violating Endangered Species Act

Chang Xiong, 46, Oakdale, Minnesota, is charged with three counts of purchasing wildlife knowing that it had been transported in violation of the Endangered Species Act.  The indictment alleges that in July 2016, September 2017, and December 2018, Xiong purchased rhinoceros feet.

If convicted, Xiong faces a maximum penalty of five years in federal prison on each count.  The charges against him are the result of an investigation by the U.S. Fish and Wildlife Service, Office of Law Enforcement.  Assistant U.S. Attorney Daniel Graber is handling the prosecution.

McFarland Woman Charged with Drug Crimes Involving Methamphetamine

Tara Blum, 29, McFarland, Wisconsin, is charged with four counts of distributing methamphetamine and two counts of possessing methamphetamine with intent to distribute.  The indictment alleges that these offenses occurred between July 22 and September 9, 2020.  The indictment alleges that one of the distributions involved 50 grams or more of methamphetamine, and that on September 9, Blum possessed 500 grams or more for distribution.

If convicted, Blum faces a maximum penalty of 20 years in federal prison on three of the distribution charges, a mandatory minimum of five years and a maximum of 40 on the charge involving 50 grams or more of methamphetamine, and a mandatory minimum of 10 years and a maximum of life on the charge involving 500 grams or more.  The charges against Blum are the result of an investigation by the Dane County Narcotics Task Force.  Assistant U.S. Attorney Robert Anderson is handling the prosecution. 

Madison Man Charged with Possessing Crack Cocaine for Distribution

DeAndre Bishop, 42, Madison, Wisconsin, is charged with possessing 28 grams or more of crack cocaine with the intent to distribute.  The indictment alleges that he possessed the crack cocaine on August 3, 2020.

If convicted, Bishop faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison.  The charge against him is the result of an investigation by the Waunakee Police Department.  Assistant U.S. Attorney David Reinhard is handling the prosecution.

Rhinelander Man Charged with Being a Felon in Possession of Ammunition

Dustin LaPuma, 26, Rhinelander, Wisconsin, is charged with being a felon in possession of ammunition.  The indictment alleges that he possessed 9mm ammunition on August 10, 2020.

If convicted, LaPuma faces a maximum penalty of 10 years in federal prison.  The charge against him is the result of an investigation by the Oneida County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.

MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today.  You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.

Madison Man Charged with Drug Crimes Involving Methamphetamine

Melvin P. Potts, 33, Madison, Wisconsin, is charged with six counts of distributing methamphetamine in July through September 2020.  The indictment alleges that one of the distributions involved 50 grams or more of methamphetamine.  The indictment also charges that on September 15, 2020, Potts possessed 50 grams or more of methamphetamine for distribution.

If convicted, Potts faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison on the two counts alleging distribution or possession with intent to distribute 50 grams or more of methamphetamine, and a maximum penalty of 20 years on each of the other five counts.  The charges against him are the result of an investigation by the Dane County Narcotics Task Force.  Assistant U.S. Attorney Zachary Corey is handling the prosecution.

Madison Man Charged with Distributing Methamphetamine & Possessing Methamphetamine for Distribution

Timothy Savannah, 28, Madison, Wisconsin, is charged with distributing methamphetamine on September 1, 2020, and with possessing 50 grams or more of methamphetamine with the intent to distribute on September 10, 2020.

Savannah faces a maximum of 20 years in federal prison on the distribution charge, and a mandatory minimum of five years and a maximum of 40 years on the charge of possessing 50 grams or more of methamphetamine for distribution.  The charges against him are the result of an investigation by the Sauk County Sheriff’s Office and the Drug Enforcement Administration. Assistant U.S. Attorney Aaron Wegner is handling the prosecution.

Two Charged with Arson of Commercial Buildings in Madison

Anessa Renee Fierro, 27, and Willie Tremaine Johnson, 45, both of Madison, Wisconsin, are charged in a two-count indictment with attempting to damage and destroy by fire two commercial buildings in Madison on August 25, 2020.  Fierro and Johnson were charged with these offenses in criminal complaints filed in U.S. District Court in Madison on September 22.  Federal law requires that criminal charges filed by complaint be presented to a grand jury for indictment.

If convicted, Fierro and Johnson face a mandatory minimum penalty of five years and a maximum of 20 years in federal prison on each count.  The charges against them are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Madison Police Department.  Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.

Madison Man Charged with City-County Building Arson

Marquon Clark, 26, Madison, Wisconsin, is charged with attempting to damage and destroy by fire the City-County Building in Madison on June 24, 2020.  Clark was charged with this offense in a criminal complaint filed in U.S. District Court in Madison on October 5.  Federal law requires that a criminal charge filed by complaint be presented to a grand jury for indictment.

If convicted, Clark faces a mandatory minimum penalty of five years and a maximum of 20 years in federal prison.  The charge against him is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Dane County Sheriff’s Office; Madison Police Department; and Madison Fire Investigation Team.  

Barron County Man Charged with Embezzlement from Casino

Leva Oustigoff, Jr., 58, Cumberland, Wisconsin, is charged with eight counts of embezzling money from the Turtle Lake Casino operated by the St. Croix Chippewa Indians of Wisconsin, while an employee of the casino.  The dates and amounts of the alleged embezzlements are:

1. December 18, 2015 – approximately $9,500;
2. April 4, 2016 – approximately $7,500;
3. April 29, 2016 – approximately $1,799;
4. September 13, 2017 – approximately $8,599;
5. October 19, 2017 – approximately $8,599;
6. October 25, 2017 – approximately $20,000;
7. November 27, 2017 – approximately $8,000; and
8. January 18, 2018 – approximately $8,637.

If convicted, Oustigoff faces a maximum penalty of 20 years in federal prison on each count.  The charges against him are the result of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation, with the cooperation of the St. Croix Tribe.  Assistant U.S. Attorney Diane Schlipper is handling the investigation.

Employee of U.S. Postal Service Charged with Misappropriating Funds & False Entries in Official Records

Cammy J. Gillett, 44, Cameron, Wisconsin, is charged with misappropriating postal funds from March 2019 through July 2020.  The indictment alleges that while an employee of the U.S. Postal Service, she converted to her own use more than $1,000 in U.S. Postal money orders.  The indictment also charges her with making false entries in the record of Postal money order sales.

If convicted, Gillett faces a maximum penalty of 10 years in federal prison on each count.  The charges against her are the result of an investigation by the U.S. Postal Service, Office of Inspector General.  Assistant U.S. Attorney Robert Anderson is handling the prosecution.

Mexican Citizen Charged with Illegally Reentering U.S. & Failing to Register as Sex Offender

Jose David Saldana-Ramirez, 37, a citizen of Mexico found in Columbia County, Wisconsin, is charged in a superseding indictment with illegally reentering the United States after previously being deported, and failing to register under the Sex Offender Registration and Notification Act.  Saldana-Ramirez was charged previously in an indictment returned by the grand jury on August 19, 2020, with the immigration offense only.  The superseding indictment alleges that he was found in the United States on July 26, 2020, and that he failed to register as a sex offender from July 2017 to November 2019. 

If convicted, Saldana-Ramirez faces a maximum penalty of 20 years in federal prison on the illegal reentry charge, and 10 years in federal prison on the failure to register as a sex offender charge.  The charges against him are the result of an investigation by U.S. Immigration & Customs Enforcement.  Assistant U.S. Attorney Julie Pfluger is handling the prosecution.

MADISON, WIS. – United States Attorneys Scott C. Blader and Matthew D. Krueger announced today the Assistant United States Attorneys (AUSAs) who will lead the efforts of their Offices in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election.  AUSAs Daniel Graber and Meredith Duchemin have been appointed as the District Election Officer (DEO) for the Western District of Wisconsin, and AUSAs Christopher Ladwig and Philip Kovoor have been appointed as the DEOs for the Eastern District of Wisconsin.  In this capacity, they are responsible for overseeing their respective District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.

United States Attorney Krueger said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud.  The Department of Justice will always act appropriately to protect the integrity of the election process.”

United States Attorney Blader said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate.  It is imperative that those who have specific information about discrimination or election fraud make that information available to my Office, the FBI, or the Civil Rights Division.”

The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur.  The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through Election Day.

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them.  For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law.  Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).

The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, United States Attorneys Blader and Krueger stated that AUSAs/DEOs Graber, Duchemin, Ladwig and Kovoor will be on duty in their Districts while the polls are open.  AUSAs/DEOs Graber and Duchemin can be reached by the public at (608) 264-5158 and AUSAs/DEOs Ladwig and Kovoor can be reached by the public at (414) 297-4103

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day.  The Milwaukee FBI field office can be reached by the public at (414) 276-4684.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, D.C., by phone at (800) 253-3931 or by complaint form at https://civilrights.justice.gov/.

Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities.  State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.