ST. PAUL, Minn. – A Willmar man has been indicted for illegally possessing two explosive devices and a short-barreled shotgun, announced U.S. Attorney Andrew M. Luger.

According to court documents, on November 20, 2021, Brian Keith Kohls, 39, illegally possessed a short-barreled shotgun and two explosive bombs, none of which were registered to him under the National Firearms Registration and Transfer Record. Kohls is also charged with being an unlawful user of controlled substances and is therefore prohibited from possessing firearms.

Kohls is charged with one count of possession of unregistered destructive devices, one count of possession of an unregistered short-barreled shotgun, and one count of possession of a firearm by an unlawful user of controlled substances. If convicted, he faces a potential maximum penalty of 10 years in prison. Kohls made his initial appearance yesterday in U.S. District Court before Magistrate Judge Becky R. Thorson. Kohls was ordered to remain in custody pending a formal detention hearing on October 20, 2022.

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Willmar Police Department, the Minneapolis Police Department, and the St. Cloud Police Department.

Assistant U.S. Attorney Ruth S. Shnider is prosecuting the case.

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

FERGUS FALLS, Minn. – A Crookston man has been sentenced to 262 months in prison followed by 20 years of supervised release for producing images and videos showing the sexual abuse of a minor, announced U.S. Attorney Andrew M. Luger.

According to the defendant’s plea agreement and court documents, the minor victim in the case reported to school officials and to the Crookston Police that Jorge Alberto Torres, Jr., 52, had been sexually assaulting and abusing the minor victim for several years. Torres threatened and coerced the minor victim into submitting to his sexual demands, and he placed a hidden video camera in a bathroom used by the minor victim and others. The following day, law enforcement arrested Torres. Torres asked a family member to hide or destroy his Android cell phone and the hidden video camera. Law enforcement nonetheless recovered the cell phone and, after obtaining a search warrant, found that the cell phone contained multiple images and videos depicting Torres’s sexual abuse of the minor victim and other child pornography. 

Torres pleaded guilty on December 20, 2023, to one count of production of child pornography and admitted to other additional conduct constituting production of child pornography. He was sentenced yesterday in U.S. District Court by Judge Katherine M. Menendez. 

This case is the result of an investigation conducted by the Crookston Police Department and the FBI's Minneapolis Crimes Against Children Task Force.

   

Assistant U.S. Attorneys Benjamin Bejar and Emily A. Polachek prosecuted the case.

DULUTH, Minn. – A federal jury found a Red Lake woman guilty of child neglect following the death of a child in her care, announced U.S. Attorney Andrew M. Luger.

According to evidence presented at trial, Sharon Rosebear, 63, intentionally deprived a child, Minor A, of necessary food and health care over the course of 2022. The evidence at trial established that Minor A died in 2022 from the combined effects of starvation and infection. Rosebear and her co-defendant, Julius Fineday Sr., were both federally charged in 2023 following Minor A’s death: Rosebear was charged with felony child neglect resulting in substantial harm, and her co-defendant Julius Fineday Sr. was charged with second degree manslaughter. 

The evidence at trial established that Rosebear acted as one of Minor A’s caretakers in 2022. In accordance with Minnesota law, the jury was instructed that Rosebear’s lack of formal legal custody of Minor A did not alter her responsibility to the child. The evidence at trial established that Rosebear was reasonably able to provide for Minor A’s nutrition and healthcare—including evidence establishing that healthcare and transportation to healthcare is free within the Red Lake Nation, and that all of the adults and children involved in the case received nutritional and cash assistance adequate to meet their basic needs—and that Rosebear nonetheless intentionally deprived Minor A of those basic needs by withholding food, and by looking the other way while Minor A’s health deteriorated. The evidence at trial included evidence that Minor A died at the same weight she had been nearly three years earlier, and that while Rosebear was aware of Minor A’s severe lice infestation, Rosebear responded by keeping Minor A isolated rather than seeking medical attention for Minor A.  

Medical testimony at trial established that the type of infection Minor A had when she died could have entered Minor A’s body through scratches in her scalp related to her unaddressed lice. The medical testimony also established that Minor A’s prolonged starvation may have been an independently sufficient cause of death, or may have severely compromised Minor A’s immune system’s ability to fight infection. 

Following a six-day trial in U.S. District Court before Chief Judge Patrick J. Schiltz, Rosebear was found guilty of felony child neglect. Rosebear’s co-defendant, Julius Fineday Sr., entered a guilty plea to his charge prior to trial on March 25, 2022. Their sentencing hearings will be scheduled at a later date. 

This case is the result of an investigation conducted by the FBI and the Red Lake Tribal Police Department.

Assistant U.S. Attorneys Lindsey E. Middlecamp and Rachel L. Kraker tried the case. 

CLEVELAND – Matthew J. Turnipseede, 51, of Las Vegas, Nevada, has been sentenced to more than five years in prison (65 months) by U.S. District Court Judge Christopher A. Boyko after admitting to orchestrating a Ponzi scheme that defrauded business investors out of over $8.5 million. He was also ordered to pay $4,731,165.10 in restitution. Turnipseede pleaded guilty to four counts of wire fraud in November 2024.According to the indictment, from March 2015 to May 2021, Turnipseede induced approximately 72 individuals in Ohio and elsewhere to invest over $8.5 million in his betting companies, Edgewize and Moneyline Analytics. He promised that their funds would be used to make sophisticated sports wagers which used an algorithm that generated double-digit returns. Turnipseede also told investors that he would not take compensation for placing wagers, but instead would retain a percentage of winning profits.In truth, none of Turnipseede’s companies ever generated the promised profits. Instead, the defendant used the investors’ money to maintain the businesses, seek additional sources of funds, and pay off earlier investors.To perpetuate the scheme, the defendant emailed the victim-investors periodic updates describing how successful Edgewize and Moneyline Analytics were. He also emailed the victim-investors falsified financial statements purporting to show substantial gains on their investments. When a victim wanted to withdraw some, or all, of their funds, Turnipseede would use money invested by other victims to cover the withdrawal request. The scheme collapsed in May 2021 when Turnipseede declared bankruptcy, still owing his investors over $4.7 million in principal alone.The defendant also admitted to using investor funds for his personal expenses such as family trips, spa treatments, lease payments on multiple vehicles, and country club membership dues.This case was investigated by the FBI Cleveland Division and prosecuted by Assistant U.S. Attorneys Erica D. Barnhill and Brian M. McDonough for the Northern District of Ohio.

Acting United States Attorney Gregory G. Brooker today announced a federal indictment charging EDWARD S. ADAMS, an attorney and university law professor, with orchestrating an elaborate fraud scheme to embezzle millions of dollars of investors’ funds. ADAMS is expected to make his initial appearance in U.S. District Court in Minneapolis later this week.

 

“The defendant’s brazen theft of millions of dollars of investor’s funds over the course of several years is compounded by the fact that he holds positions of public trust as an attorney and law school faculty member,” said FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton. “The FBI remains committed to working with our law enforcement partners to detect corporate crime in all its forms and bring those responsible to justice.”

 

“The U.S. Postal Inspection Service vigorously pursues prosecution of criminals who callously defraud our citizens using the U.S. Mail. Postal Inspectors are committed to ensuring public confidence in the U.S. Mail. Fraud of this magnitude is not a victimless crime. Honest, hardworking Americans pay the price when fraudsters wrongfully steal their hard-earned money.” said Postal Inspector in Charge, Craig Goldberg.

 

“IRS Criminal Investigation Special Agents are proud to work with our law enforcement partners and the U.S. Attorney’s Office to investigate and prosecute individuals, such as Edward Adams, who attempt to enrich themselves by fraudulent means,” stated Shea Jones, Special Agent in Charge of the St. Paul Field Office. “IRS Criminal Investigation is committed to using our financial investigative expertise to stop investment fraud schemes and other types of white collar crime."

 

According to the indictment and documents filed in court, Apollo Diamond, Inc. (“Apollo Diamond”) and Apollo Diamond Gemstone Corporation (“Apollo Gemstone”) (collectively, “Apollo”) was a privately held company that produced lab-grown diamonds. ADAMS, a Minneapolis lawyer and law professor, became involved with Apollo through familial relations and held various managerial titles with the company such as CFO, Secretary, EVP, and General Counsel.

 

According to the indictment, in 2003, at the direction of ADAMS, Apollo retained ADAMS’ financial services firm, Equity Securities, Inc., to provide investment banking services and to raise money for Apollo. Equity Securities raised more than $25 million for Apollo, for which Equity Securities received approximately $4 million in commission. Following the fundraising efforts, ADAMS continued to handle the ongoing financial matters for Apollo with minimal oversight from the Board of Directors.

 

According to the indictment, from 2006 through 2009, ADAMS opened multiple bank accounts with various titles including “RL Investments,” “DL Investments,” “ADR Investments,” “Apollo Diamond, Inc.,” and “Apollo Diamond Gemstone Corporation,” none of which were authorized by Apollo or its Board of Directors. ADAMS was the sole signatory and the only person with access to the accounts and the account statements, which were mailed to his personal addresses.

 

According to the indictment, ADAMS told investors that they could purchase shares in Apollo by making their checks payable to the accounts he controlled. He promised that their money would be used for Apollo’s operations, including working capital, funding additional diamond growing equipment, and research and development, when, in reality, ADAMS was embezzling the money. For example, ADAMS deposited approximately $2,400,000 of investors’ funds into the RL Investments account and then surreptitiously diverted more than $1,200,000 for his own personal use, an additional $101,500 to his law firm’s bank account, and distributed the remainder of the funds to various individuals as determined by ADAMS.

 

According to the indictment, in 2010, due in part to ADAMS’ embezzlement, Apollo could no longer meet its financial obligations and was on the brink of insolvency. To prevent his theft from being uncovered through bankruptcy litigation, ADAMS devised a scheme to appease shareholders by convincing them to convert their worthless Apollo stock into stock in a new company, which ADAMS secretly controlled. In March 2011, ADAMS and his law partner (identified in the indictment as “M.M.”) created a privately held company called Scio Diamond Technology Corporation (“Private Scio”), of which ADAMS and his partner were the sole shareholders and board members. ADAMS and his partner then notified shareholders that Private Scio would acquire the assets of Apollo for approximately $2,000,000 and that shareholders, without expending any additional money, would receive the same number of shares in the new entity. However, Private Scio was not yet capitalized and did not have the funds to complete the asset purchase. To further this scheme, ADAMS orchestrated a “reverse merger” transaction between Private Scio and Krossbow Holding Corporation, a publicly traded shell company, which resulted in a new publicly traded company, also called Scio Diamond Technology Corporation (“Public Scio”).

 

According to the indictment, ADAMS used Public Scio to raise the $2,000,000 necessary to complete the Apollo asset purchase, leading the former Apollo investors to believe that their investments were safe and that they now held shares in a publicly traded, operational company. However, ADAMS used Public Scio’s acquisition of Apollo as yet another opportunity for personal profit and funneled the majority of the $2,000,000 into bank accounts controlled by ADAMS. In total, from 2006 through 2013, ADAMS stole from investors more than $4.38 million and paid to his own law firm more than $2.54 million.

 

This case is the result of an investigation conducted by the FBI, United States Postal Inspection Service, and the Criminal Investigation Division of the IRS.

 

Assistant U.S. Attorneys David M. Maria and John E. Kokkinen are prosecuting the case.

 

 

Defendant Information:

 

EDWARD S. ADAMS, 64,

Minneapolis, Minn.

 

Charges:



Mail fraud, 8 counts





Wire fraud, 6 counts

 

 

 

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United States Attorney’s Office, District of Minnesota: (612) 664-5600



 

 



The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

MINNEAPOLIS – United States District Judge Ann D. Montgomery has issued an order closing the receivership of Thomas J. Petters and discharging the Receiver in one of the nation’s largest and most complex Ponzi schemes. Through the efforts of the Receiver, the United States, and related bankruptcy trustees more than $722 million was distributed to victims and creditors.

In issuing the order, Judge Montgomery remarked that the receivership was “prompted by one of the largest and most complex Ponzi schemes in U.S. history.” Judge Montgomery went on to state that “the primary objective of the Receivership was to preserve assets for victims and creditors…After more than 120 public [court] hearings and nearly 3,300 [case] docket entries, the work of the Receiver has concluded.”

The United States commenced the receivership case in October of 2008 to enjoin the ongoing fraud by Petters and the other named defendants and to preserve all assets owned by the defendants for ultimate restitution and forfeiture in the criminal investigations of the defendants, which were pending at the time.

The United States immediately moved to freeze the assets of the named defendants, including all assets owned by Petters. On October 14, 2008, the Court issued the injunction against Petters and appointed Douglas A. Kelley as the Receiver of the assets of Petters and the other named defendants.  At the time none of the defendants had yet been indicted.

The Receiver immediately began taking control of the assets and property owned by Petters and the other named defendants. Petters and the other defendants had created a vast web of more than 150 entities over the course of thirteen years – entities that were all propped up by fraud. Some of the entities, however, were legitimate businesses that employed innocent persons.

The Receiver placed several of the major entities into bankruptcy, including Sun Country Airlines and Polaroid Corporation, for the protection of innocent employees and creditors. Throughout the receivership, the Receiver also managed real estate, categorized assets, liquidated property, paid employees, commenced claw-back litigation, entered into settlement agreements, and worked in coordination with the bankruptcy and government forfeiture process to achieve an orderly disentanglement of the fraud. 

“Following the criminal conviction of Tom Petters in 2009 for orchestrating a $1.9 billion Ponzi scheme, the work of recovering assets on behalf of victim investors and creditors had just begun,” said Acting U.S. Attorney W. Anders Folk. “Throughout this case the U.S. Attorney’s Office sought to remain transparent, thorough, and persistent in our pursuit of justice. I commend the work of the Receiver and all parties involved in recovering more than $722 million on behalf of victims.”

On December 1, 2008, Petters was indicted on multiple counts of mail fraud, wire fraud, money laundering, and conspiracy for orchestrating a $1.9 billion Ponzi scheme. On December 2, 2009, a federal jury found Petters guilty of all 20 counts against him, and he was later sentenced by U.S. District Judge Richard H. Kyle to 50 years in federal prison. Other defendants were convicted in related criminal proceedings. As part of their sentencing judgments, Petters and other defendants were ordered to forfeit assets obtained through their criminal activity, including real estate, bank, and investment accounts, vehicles, and other assets. Under federal law, the Department of Justice has the authority to distribute the proceeds of forfeited assets through the remission process to victim investors who lost money in connection with the scheme. The proceeds of all forfeited assets are being distributed to victim investors. 

United States Attorney Erica H. MacDonald today announced the sentencing of RYAN RANDALL GILBERTSON, 42, founder of Dakota Plains Holdings, Inc., to 144 months in federal prison, a $2 million fine, and over $15 million in restitution. GILBERTSON was sentenced today by Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. A federal jury convicted GILBERTSON and co-defendant DOUGLAS VAUGHN HOSKINS, 50, of multiple counts of wire fraud, securities fraud, and conspiracy to commit securities fraud, on June 26, 2018, following an 11-day jury trial before Judge Schiltz.

HOSKINS is scheduled to be sentenced on December 21, 2018, by Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota.

As proven in court, in November 2008, GILBERTSON and his business partner founded Dakota Plains, Inc. (“Dakota Plains”), a privately held company based in Wayzata, Minnesota that owned and operated a transloading facility in New Town, North Dakota. From the outset, GILBERTSON and his partner concealed their involvement in the company by installing their fathers as the company’s executives and two-person board of directors. Rather than capitalize the company at the outset, GILBERTSON caused the company to issue $9 million in promissory notes to himself and other corporate insiders. The notes paid 12% annual interest and included a provision that paid GILBERTSON and the other noteholders a bonus payment based on the average trading price of Dakota Plains stock during the first 20 days of public trading. The bonus payment provision operated as an “embedded derivative” in which the value of the bonus payment would be based on the average price of Dakota Plains stock during the first 20 days of public trading.

GILBERTSON then caused the company to go public via a reverse merger with a company called Malibu Club Tan, which was a publicly traded shell company that operated a single defunct tanning salon in suburban Salt Lake City, Utah. GILBERTSON made it a secret condition of the reverse merger that DOUG HOSKINS, his friend and polo coach, be able to purchase the majority of the “float” of freely trading shares, which were the only shares that could trade publicly following the reverse merger. GILBERTSON then gave $30,000 to HOSKINS, who was deeply in debt and owed money to the IRS and other creditors, in order to purchase 50,000 shares of Dakota Plains stock at a price of $0.50 per share on March 23, 2012, the morning of the reverse merger. That same day, again at the direction of GILBERTSON, HOSKINS began selling his shares at the fraudulently inflated price of $12 per share.

On the first day of public trading, HOSKINS began selling his newly acquired shares for an inflated price of $12 per share at GILBERTSON’S direction, and continued to do so throughout the first 20 days of public trading following the reverse merger. At the same time, GILBERTSON directed a local stockbroker at a Minneapolis-based securities brokerage firm to purchase shares of Dakota Plains stock on behalf of both himself and his clients at inflated prices. GILBERTSON also instructed a Salt Lake City-based business consultant to manipulate the price of the stock by ensuring that none of the shell company shareholders sold their stock for less than the $12 per share price offered by his friend and polo coach, HOSKINS. Indeed, on April 4, 2012, GILBERTSON sent a text message to the consultant in Utah bragging that the shell company shareholders “would be participating on sales at 7 bucks [a share] not 12 were it not for my involvement.”

Throughout the 20-day period following the reverse merger, GILBERTSON, with the help of HOSKINS and others, manipulated the price of Dakota Plains stock to increase the average trading price to $11.30 per share. This inflated share price triggered a $32.8 million bonus payment to GILBERTSON and the other noteholders. When the cash-strapped company was unable to pay the bonus, GILBERTSON instructed its CEO to raise money for use in paying GILBERTSON’s fraudulently inflated bonus payment.

Ultimately, GILBERTSON made millions as a result of his stock manipulation scheme. HOSKINS made less money, but still pocketed more than $125,000 from his stock sales, much of which he used to purchase an Argentine polo pony.

In the wake of the fraud scheme, HOSKINS was interviewed by the Securities and Exchange Commission (SEC) about his involvement in these stock sales. HOSKINS repeatedly lied under oath during the deposition, covering up both his and GILBERTSON’S involvement in the stock manipulation scheme. Among other things, HOSKINS claimed that he did not discuss the stock trades with any other individuals. At trial, GILBERTSON falsely denied his role in the stock manipulation scheme, but conceded that he had arranged for HOSKINS to purchase Dakota Plains stock prior to the reverse merger and had provided HOSKINS with the money with which he purchased the stock.

“Mr. Gilbertson orchestrated an extraordinarily complex stock manipulation scheme in order to obtain millions of dollars from a publicly traded company. He executed his scheme over many years at the detriment of the company, which is now bankrupt, its shareholders and the trading public,” said United States Attorney Erica H. MacDonald. “He did not care about how his actions may impact others; he only cared about lining his own pockets. Despite the complexity of his scheme, and how much of a game he tried to play, he lost, thanks to the diligent and thorough work of investigators, prosecutors, a federal jury, and the Court.”

“Mr. Gilbertson created a complex and complicated scheme that was unraveled thanks to the diligence of highly trained agents who don't give up,” said Jill Sanborn, Special Agent in Charge of the Minneapolis Division of the FBI. “The heavy  sentence imposed today on Mr. Gilbertson  underscores that market rigging and self-dealing for one's own financial gain are nefarious activities that will be discovered and that those who engage in them will be dealt with accordingly."

“Today’s sentence sends a clear message regarding the critical role the U.S. Postal Inspection Service and its law enforcement partners play in protecting the investing public from these types of fraudulent schemes, “ said Acting Postal Inspector in Charge Lesley Allison. “We will continue to protect and ensure the nation’s mail stream is not used by criminals to prey upon our citizens.” 

This case is the result of an investigation conducted by the FBI and the United States Postal Inspection Service.

This case was prosecuted by Assistant United States Attorneys Joseph H. Thompson, Kimberly A. Svendsen, and Melinda A. Williams.

The Criminal Docket Number for this case is: 17-cr-00066

Defendant Information:                                                                                                                     

RYAN RANDALL GILBERTSON, 42

Delano, Minn.

Convicted:

Wire fraud, 14 counts

Conspiracy to commit securities fraud, 1 count

Securities fraud, 6 counts

 

Sentenced:

144 months imprisonment

2 years supervised release

$2 million fine

$15,135,360 in restitution 

 

         

 

 

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MINNEAPOLIS – A Red Lake woman has been sentenced to 15 months in prison following the death of a child in her care, announced U.S. Attorney Andrew M. Luger.According to evidence presented at trial, Sharon Rosebear, 64, intentionally deprived a child, Minor A, of necessary food and health care over the course of 2022. The evidence at trial established that Minor A died in 2022 from the combined effects of starvation and infection. Rosebear’s codefendant, Julius Fineday, Sr., pleaded guilty to one count of felony child neglect causing the death of a child and was sentenced to five years in prison earlier this year.The evidence at trial established that Rosebear acted as one of Minor A’s caretakers in 2022. In accordance with Minnesota law, the jury was instructed that Rosebear’s lack of formal legal custody of Minor A did not alter her responsibility to the child. The evidence at trial established that Rosebear was reasonably able to provide for Minor A’s nutrition and healthcare—including evidence establishing that healthcare and transportation to healthcare is free within the Red Lake Nation, and that all of the adults and children involved in the case received nutritional and cash assistance adequate to meet their basic needs—and that Rosebear nonetheless intentionally deprived Minor A of those basic needs by withholding food, and by looking the other way while Minor A’s health deteriorated. The evidence at trial included evidence that Minor A died at the same weight she had been nearly three years earlier, and that while Rosebear was aware of Minor A’s severe lice infestation, Rosebear responded by keeping Minor A isolated rather than seeking medical attention for Minor A.  Medical testimony at trial established that the type of infection Minor A had when she died could have entered Minor A’s body through scratches in her scalp related to her unaddressed lice. The medical testimony also established that Minor A’s prolonged starvation may have been an independently sufficient cause of death, or may have severely compromised Minor A’s immune system’s ability to fight infection. On April 29, 2024, Rosebear was found guilty of felony child neglect following a six-day trial in U.S. District Court. She was sentenced today by Chief Judge Patrick J. Schiltz. In handing down the sentence, Chief Judge Schiltz commented, “One of the most tragic things about Minor A’s death is that it was so easily preventable … day after day, week after week, month after month, Ms. Rosebear watched as Minor A slowly starved to death.” This case is the result of an investigation conducted by the FBI and the Red Lake Tribal Police Department.Assistant U.S. Attorneys Lindsey E. Middlecamp and Rachel L. Kraker tried the case.     

MINNEAPOLIS – Said Farah, age 43, the fifth defendant charged in the juror bribery scheme, pled guilty today to his role in providing a cash bribe to a juror in the Feeding Our Future trial, announced Acting U.S. Attorney Joseph H. Thompson.On April 22, 2024, seven defendants went to trial before U.S. District Judge David S. Doty for their roles in the Feeding Our Future fraud scheme. Two of the defendants on trial were brothers—defendant Said Farah and his brother, Abdiaziz Farah.  During the trial, Said Farah conspired with others, including his brother, Abdiaziz Farah, and a third brother not charged in the case, Abdulkarim Farah, to provide a cash bribe to one of the jurors, known as Juror 52, in exchange for returning a not guilty verdict in the trial.  In total, five defendants have thus far been charged in the juror bribery case.  Said Farah is the fifth defendant to plead guilty. All five defendants are currently pending sentencing before Judge Doty.  Those sentencings dates have not yet been set.“I watched this unfold with my own eyes—it was corruption stacked on corruption,” said Acting U.S. Attorney Joseph H. Thompson.  “The Feeding Our Future scheme was already a staggering and brazen fraud.  But then came something even more corrosive:  a cynical attempt to buy off a juror who stood strong and refused to be corrupted.  I cannot overstate how painful this was for all involved.  This was an unprecedented attack on our very system of justice.  It shook Minnesota to its core.  Now we must grapple with how we got here—no more denial, no more looking away.  We must not allow corruption and fraud to define the future of justice in Minnesota.”According to court documents, co-conspirators Abdimajid Nur and Abdiaziz Farah researched Juror 52’s address and other personal information online and via social media, including Juror 52’s Facebook account. Through their online research, conspirators Abdimajid Nur and Abdiaziz Farah identified Juror 52’s home address and found information about Juror 52’s background and family members.Nur recruited co-conspirator Ladan Ali to deliver the bribe money to Juror 52.  At the time, Ali was living in Seattle, Washington.  During the trial, Ali flew from Seattle to Minneapolis to meet with Nur and discuss the plan to bribe Juror 52.  Ali agreed to deliver the bribe money to Juror 52 in exchange for a $150,000 cash payment.On Thursday, May 30, 2024, Ali flew from Seattle to Minneapolis, Minnesota, to deliver the bribe money to Juror 52.  Nur asked Ali to surveil and follow Juror 52 home as she left court for the day.  Nur gave Ali a photo of Juror 52’s car and a map of the Jerry Haaf Memorial Parking Ramp where Juror 52 parked.On Friday, May 31, 2024, Ali attempted to follow Juror 52 home as she left the Jerry Haaf Parking Ramp at the conclusion of the first day of closing arguments.On June 1, 2024, Ali told Nur—falsely—that she had approached Juror 52 at a bar.  Ali falsely told Nur that Juror 52 was interested in taking the bribe and wanted $500,000 in exchange for returning a not guilty verdict.  Ali said that Juror 52 wanted Ali to deliver the money at noon on Sunday, June 2, when Juror 52 would be home alone.  None of this was true.  Ali did not speak with Juror 52, and Juror 52 never agreed to accept a bribe.Nevertheless, believing Ali’s account to be true, Nur relayed Ali’s account to Abdiaziz Farah, who said that he would gather the bribe money.  At approximately 11:03 PM on June 1, 2025, Abdiaziz Farah called defendant Said Farah, informed him of the plan to bribe Juror 52, and asked for Said Farah’s assistance in gathering cash for the bribe.  On the morning of Sunday, June 2, Said Farah gathered a portion of the $200,000 in cash for use as bribe money. In addition to Said Farah’s efforts to obtain the bribe money, a former Feeding Our Future employee who is charged in another indictment with participating in the fraudulent scheme to obtain federal child nutrition program funds, also worked to gather cash for the bribe. Said Farah and this individual obtained the cash from multiple individuals as well as a Hawala located near the Karmel Mall.On the afternoon of June 2, Said Farah and his brother Abdiaziz Farah met with Nur  outside of Said Farah’s business, Bushra Wholesalers.  Said Farah and Abdiaziz Farah gave Nur a cardboard box containing $200,000 in cash to bribe Juror 52.Nur then met Ali in a parking lot in Bloomington, Minnesota, to give her the bribe money. Nur handed Ali the cardboard box containing the $200,000 in cash.  Ali took the cash out of the box and put it into one of the Hallmark gift bags.  Nur then instructed Ali meet Abdulkarim Farah at a location near Juror 52’s house so that Abdulkarim Farah could accompany Ali to Juror 52’s house and record her delivery of the bribe as proof that the bribe money was delivered and that Juror 52 accepted the bribe.Later that night, Said Farah received the video of Ali delivering the bribe money via an encrypted messaging app. Said Farah later deleted the video to conceal his involvement in the bribery scheme.“The attempted bribery of a juror is a shocking attack on the fabric of our legal system,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “In this country, justice is impartial, swift, and cannot be bought. The extraordinary work on this case attests to the commitment of the FBI and our law enforcement partners to protect the integrity of the judicial process and relentlessly pursue those who seek to corrupt that system.”This case is the result of an investigation conducted by the FBI with assistance from IRS – Criminal Investigations, the U.S. Postal Inspection Service, and the Minnesota Bureau of Criminal Apprehension.Acting United States Attorney Joseph H. Thompson and Assistant United States Attorneys Matthew Ebert, Harry Jacobs, and Daniel Bobier are prosecuting the case.

A Latvian man was sentenced today in Minneapolis for participating in a lucrative “scareware” hacking scheme that targeted visitors to the Minneapolis Star Tribune’s website. Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erica H. MacDonald of the District of Minnesota and Special Agent in Charge Jill Sanborn of the FBI’s Minneapolis Field Office made the announcement.

PETERIS SAHUROVS aka “Piotrek” and “Sagade,” 29, was sentenced to 33 months in prison for conspiracy to commit wire fraud. District Judge Ann D. Montgomery of the District of Minnesota imposed the sentence. SAHUROVS will be removed from the United States to Latvia following his prison sentence.  SAHUROVS was arrested in Latvia on a District of Minnesota indictment in June 2011, but was released by a Latvian court and later fled. In November 2016, SAHUROVS was located in Poland, apprehended by Polish law enforcement, and extradited to the United States in June 2017. SAHUROVS was once the FBI’s fifth most wanted cybercriminal and a reward of up to $50,000 had been offered for information leading to his arrest and conviction. He pleaded guilty before Judge Montgomery on February 7, 2018.

According to admissions made in connection with his plea, from at least May 2009 to June 2011, SAHUROVS operated a “bullet-proof” web hosting service in Latvia, through which he leased server space to customers seeking to carry out criminal schemes without being identified or taken offline. The defendant admitted that he knew his customers were using his servers to perpetrate criminal schemes, including the transmission of malware, fake anti-virus software, spam, and botnets to unwitting victims, and he received notices from Internet governance entities (such as Spamhaus) that his servers were hosting malicious activity. Nonetheless, SAHUROVS took steps to protect the criminal schemes from being discovered or disrupted, and hosted them on his servers for financial gain.

SAHUROVS admitted that from in or about February 2010 to in or about September 2010, he registered domain names, provided bullet-proof hosting services, and gave technical support to a “scareware” scheme targeting visitors to the Minneapolis Star Tribune’s website. On February 19, 2010, the Minneapolis Star Tribune began hosting an online advertisement, purporting to be for Best Western hotels, on its website, startribune.com. Two days later, however, the advertisement began causing the computers of visitors to the website to be infected with malware. This malware, also known as “scareware,” caused visitors to experience slow system performance, unwanted pop-ups and total system failure. Website visitors also received a fake “Windows Security Alert” pop-up informing them that their computer had been infected with a virus and another pop-up that falsely represented that they needed to purchase the “Antivirus Soft” computer program to fix their security issues, at a price of $49.95.

Website visitors who clicked the “Antivirus Soft” window were presented with an online order form to purchase a purported security program called “Antivirus Soft.” Users who purchased “Antivirus Soft” received a file download that “unfroze” their computers and stopped the pop-ups and security notifications. However, the defendant admitted, the file was not a real anti-virus product, did not perform legitimate computer security functions, and merely caused the malware that members of the conspiracy had previously installed to cease operating. Meanwhile, the defendant admitted, victim users who did not choose to purchase “Antivirus Soft” became immediately inundated with so many pop-ups containing fraudulent “security alerts” that all information, data, and files on their computers were rendered inaccessible. Members of the conspiracy defrauded victims out of substantial amounts of money as a result of the scheme. The defendant admitted that as a result of his participation, he made between $150,000 and $250,000 U.S. dollars.

This case was investigated by the FBI’s Minneapolis Field Office. The Criminal Division’s Office of International Affairs secured the extradition from Poland and the Polish National Police, the National Prosecutor’s Office, and the Ministry of Justice provided substantial assistance in this matter.

Assistant U.S. Attorney Timothy C. Rank of the District of Minnesota and Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.

 

Defendant Information:

PETERIS SAHUROVS, 29

Rezekne, Latvia

Convicted:

Conspiracy to commit wire fraud, 1 count

Sentenced:

33 months in prison

Removal from the United States to Latvia following the defendant’s prison sentence

 

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ST. PAUL, Minn. – A Minneapolis man has been sentenced to 92 months in prison followed by five years of supervised release for two armed bank robberies and firearms violations. Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Wilhelmina M. Wright sentenced the defendant.

According to court documents, on February 22, 2018, Samuel Lamar Brantley, 34, and two accomplices entered Lake Area Bank in White Bear Lake brandishing guns and demanding money from the tellers. Brantley was armed with a .40 caliber Glock handgun. During the robbery, Brantley ensured that none of the employees made phone calls or alerted law enforcement. Brantley and his accomplices stole approximately $9,816 in cash from the bank and split the proceeds.

According to court documents, on May 4, 2018, Brantley and an accomplice entered Bremer Bank in Brooklyn Center brandishing guns and demanding money from the tellers. Brantley was armed with a .40 caliber Glock handgun. A third accomplice was waiting in a getaway car. Brantley and his accomplices stole approximately $88,618 in cash from the bank and split the proceeds.

According to court documents, on May 21, 2018, following a shooting incident near Brantley’s residence, Brantley’s acquaintance, identified as “the Shooter,” handed off two handguns to Brantley. The next morning, Brantley met the Shooter at a Perkins restaurant so he could return the two firearms. During the course of their conversation, the Shooter told Brantley that he had used the firearms to shoot a man the night before.

On October 8, 2020, Brantley pleaded guilty to two counts of bank robbery, one count of carrying a firearm during and in relation to a crime of violence, one count of conspiracy to commit armed bank robbery, and one count of disposing of a firearm to a felon.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This case is the result of investigations conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, the Minneapolis Police Department, the White Bear Lake Police Department, and the Brooklyn Center Police Department.

This case was prosecuted by Assistant U.S. Attorneys Samantha H. Bates and Amber M. Brennan.

A Latvian man pleaded guilty yesterday for participating in a lucrative “scareware” hacking scheme that targeted visitors to the Minneapolis Star Tribune’s website. Acting Assistant Attorney General John P. Cronan of the Department of Justice’s Criminal Division; United States Attorney Gregory G. Brooker of the District of Minnesota; and Special Agent in Charge Richard T. Thornton of the Federal Bureau of Investigation-Minneapolis Field Office made the announcement.

“With this guilty plea, Mr. Sahurovs has taken responsibility for perpetrating a malicious cyber-fraud scheme on visitors of the Minneapolis Star Tribune website,” said U.S. Attorney Greg Brooker. “This Office along with our partners at the FBI are committed to pursuing and prosecuting cyber criminals who use sophisticated schemes such as this to victimize internet users.”

Richard Thornton, Special Agent in Charge at the FBI's Minneapolis Division, added that, “this particular scheme was dangerous on several levels, especially the use of a website belonging to a media institution. In this case, there were thousands of victims who lost millions of dollars, but the use of the media internet site is concerning because it has the potential to undermine the public's access to information, a pillar of American democracy. The FBI is committed to identifying these and other cyber criminals, and, with the help of our domestic and foreign partners, will work tirelessly to catch them no matter where they hide.”

PETERIS SAHUROVS aka “Piotrek” aka “Sagade,” pleaded guilty to one count of conspiracy to commit wire fraud before District Judge Ann D. Montgomery of the District of Minnesota.  SAHUROVS was arrested on a District of Minnesota indictment in Latvia in June of 2011, but was released by a Latvian court and later fled. In November of 2016, SAHUROVS was located in Poland and apprehended by Polish law enforcement and extradited to the United States in June of 2017. SAHUROVS was at one time the FBI’s fifth most wanted cybercriminal and a reward of up to $50,000 had been offered for information leading to his arrest and conviction. He will be sentenced on June 6.

According to admissions made in connection with his plea, from at least May 2009 to June 2011, SAHUROVS operated a “bullet-proof” web hosting service in Latvia, through which he leased server space to customers seeking to carry out criminal schemes without being identified or taken offline. The defendant knew that his customers were using his servers to perpetrate criminal schemes, including the transmission of malware, fake anti-virus software, spam, and botnets to unwitting victims, and he received notices from internet governance entities (such as Spamhaus) that his servers were hosting malicious activity. Nonetheless, he was familiar with these criminal schemes, took steps to protect them from being discovered or disrupted, and hosted them on his servers for financial gain.

SAHUROVS admitted that from in or about February 2010 to in or about September 2010, he registered domain names, provided bullet-proof hosting services, and gave technical support to a “scareware” scheme targeting visitors to the Minneapolis Star Tribune’s website. On February 19, 2010, the Minneapolis Star Tribune began hosting an online advertisement, purporting to be for Best Western hotels, on its website, startribune.com. Two days later, however, the advertisement began causing the computers of visitors to the website to be infected with malware. This malware, also known as “scareware,” caused visitors to experience slow system performance, unwanted pop-ups and total system failure. Website visitors also received a fake “Windows Security Alert” pop-up informing them that their computer had been infected with a virus and another pop-up that falsely represented that they needed to purchase the “Antivirus Soft” computer program to fix their security issues, at a price of $49.95.

Website visitors who clicked the “Antivirus Soft” window were presented with an online order form to purchase a purported security program called “Antivirus Soft.” Users who purchased “Antivirus Soft” would receive a file download that “unfroze” their computers and stopped the pop-ups and security notifications. However, the defendant admitted, the file was not a real anti-virus product and did not perform legitimate computer security functions, and merely caused malware that members of the conspiracy had previously installed to cease operating. Meanwhile, the defendant admitted, victim users who did not choose to purchase “Antivirus Soft” became immediately inundated with so many pop-ups containing fraudulent “security alerts,” that all information, data, and files on their computers were rendered inaccessible. Members of the conspiracy defrauded victims out of substantial amounts of money as a result of the scheme. The defendant admitted that as a result of his participation, he made between 150,000 and 250,000 U.S. dollars.

This case was investigated by the FBI’s Minneapolis Field Office.

The Criminal Division’s Office of International Affairs, as well as the Polish National Police, the National Prosecutor’s Office, and the Ministry of Justice provided substantial assistance. Assistant U.S. Attorney Timothy C. Rank of the District of Minnesota and Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. The Department’s Office of International Affairs also provided substantial assistance in this matter.

 

Defendant Information:

PETERIS SAHUROVS, 28

Rezekne, Latvia

Convicted:

Conspiracy to commit wire fraud, 1 count

 

 

###

 

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

 

EAST ST. LOUIS, Ill. – A district judge sentenced a St. Elmo man to 32 years in federal prison after he shot at law enforcement agents serving an arrest warrant at his residence in Fayette County.Dax Baldrige, 47, pleaded guilty in January to seven counts of assault of a federal officer, two counts of using a firearm during and in relation to a crime of violence and one count of possession of a firearm by a felon. Following imprisonment, he will serve five years of supervised release.“Law enforcement officers are brave, underappreciated, and underpaid heroes who risk their lives every day to protect others,” said U.S. Attorney Steven D. Weinhoeft. “Those, like Dax Baldrige, who target our officers for violence represent a form of evil against the very foundation of society. Few things are as serious, and our office will bring the full weight of federal law to bear, relentlessly pursuing the harshest prison terms to hold such people accountable.”On Oct. 17, 2022, task force members with the U.S. Marshals Service attempted to serve an arrest warrant for Baldrige at his residence in Fayette County. When they arrived, the officers knocked and gave Baldrige an opportunity to present himself for arrest.As they began to make entry to the residence, Baldrige used a stolen short barrel rifle equipped with 60 rounds of ammunition to shoot through the wall of his residence, nearly striking multiple officers. All agents were able to retreat from the residence safely and without injury.   “We are pleased that this case has been adjudicated. We want to thank the Illinois State Police, the ATF, and all our partner agencies for their steadfast commitment to our mission. We also want to extend our sincere appreciation to the United States Attorney’s Office, Southern District of Illinois, who successfully prosecuted this case and brought it to a successful conclusion,” said U.S. Marshal David C. Davis. “This case continues to illustrate the inherent dangers of this profession, and we continue to be grateful that none of our task force members were injured during the arrest of Baldrige.”After firing at officers, Baldrige barricaded himself in his residence and engaged in a standoff with law enforcement that lasted over 10 hours. “The defendant’s decision to open fire on law enforcement showed a blatant disregard for human life and the safety of the surrounding community. This sentence sends a clear message—violence against law enforcement will not be tolerated. ATF is grateful to our federal, state, and local law enforcement partners who assisted in bringing this individual to justice,” said Special Agent in Charge Christopher Amon, ATF Chicago Field Division.Following his arrest, investigating agents conducted a search of Baldrige’s residence and recovered nine firearms including six rifles, a revolver, two pistols and ammunition."When law enforcement officers, who have selflessly taken an oath to safeguard the public, are literally fired upon while trying to protect communities from known offenders, those individuals must be held accountable," said Illinois State Police Director Brendan F. Kelly.  "We appreciate the U.S. Attorney's Office's diligence in pursuing justice and supporting officers who put their lives on the line every day."“When someone opens fire on law enforcement, they're not just attacking an individual; they're attacking the very foundation of our community's safety and security,” said FBI Springfield Special Agent in Charge Christopher J.S. Johnson. “The sentence imposed sends an unequivocal message: such aggression against those who protect us will be met with the full force of justice.”The U.S. Marshal Service Great Lakes Task Force, the Bureau of Alcohol Tobacco and Firearms, the Illinois State Police, the FBI Springfield TOC West Task Force and the Fayette County Sheriff’s Department contributed to the investigation. Assistant U.S. Attorney Kimberly Arshi prosecuted the case.

ST. PAUL, Minn. – A Plymouth woman has pleaded guilty to her role in two separate fraud cases, including the $250 million fraud scheme that exploited a federally-funded child nutrition program and a Medicaid fraud scheme, announced United States Attorney Andrew M. Luger. 

According to court documents, Anab Artan Awad, 52, admitted that from September 2020 through January 2022, she knowingly participated with others in a fraudulent scheme to obtain and misappropriate millions of dollars in Federal Child Nutrition Program funds that were intended as reimbursements for the cost of serving meals to children.

According to her guilty plea, Awad used a non-profit entity called Multiple Community Services to carry out her scheme. Through Multiple Community Services, Awad controlled purported Federal Child Nutrition Program food distribution sites in Osseo, Minneapolis and Faribault, under the sponsorship of Sponsor A. As a food site operator, Awad was responsible for serving actual food to children through the Federal Child Nutrition Program. However, in furtherance of the scheme, Awad received Federal Child Nutrition Program funds based upon fraudulent information, such as falsified invoices and meal count records with substantially inflated figures. Awad received Federal Child Nutrition Program funds that substantially exceeded the amounts of food that she either purchased or served to children. 

According to her guilty plea, one of Awad’s Minneapolis sites fraudulently claimed to have served more than 1.5 million meals to children from January 2021 to April 2021, which amounts to approximately 12,600 meals to children daily. In reality, Awad’s operations at that location served a fraction of the meal amounts claimed. Also, despite Awad’s claims, the purported food vendor for her location, in fact, did not provide food during the time period claimed. In addition, none of the names on the attendance rosters submitted for “Golden Meadows,” which was one of Awad’s food sites in Faribault, matched the names of actual children enrolled in the Faribault School District. 

It was further part of the scheme that Awad received fraudulent proceeds from the Federal Child Nutrition Program into accounts that she controlled, which included, among other deposits, approximately $3.7 million directly from Sponsor A, and approximately $3 million from a purported vendor that, in fact, provided no food to Awad.

In total, Awad fraudulently claimed $11,237,106.41 in Federal Child Nutrition Program funds, of which the Minnesota Department of Education paid out $9,668,384.09.  In all, Awad and her purported vendors obtained $9,333,858.24 in fraud proceeds for herself and others.

This case is the result of an investigation conducted by the FBI, IRS – Criminal Investigations and the U.S. Postal Inspection Service.

This case is being proseucted by Assistant U.S. Attorneys Matthew S. Ebert, Joseph H. Thompson, Harry M. Jacobs, Chelsea A. Walcker and Joseph S. Teirab. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.

Awad also pleaded guilty today in a separate case to one count of conspiracy to commit wire fraud. According to court documents, from April 2015 through July 2016, Awad worked as an interpreter for A-Z Friendly Languages and Itasca Interpretation Services, both companies were approved providers that billed services to the Minnesota Medicaid program. In this role, Awad conspired with mental health practitioners at Minnesota Multicultural Counseling and Consultant (MMCC) to sign billing forms for mental health and related interpretation services that were not provided. Awad’s fraudulent claims caused a $99,154 loss to the Minnesota Medicaid program as part of the broader $4 million scheme to defraud, executed by MMCC and its associated interpreters.  Awad transitioned to her scheme to defraud the Federal Child Nutrition Program from September 2020 through January 2022 while awaiting trial for her fraudulent billing practices as an interpreter for MMCC.

This case is the result of an investigation conducted by the FBI, the U.S. Department of Health and Human Services Office of the Inspector General and the Minnesota Attorney General Office’s Medicaid Fraud Control Unit.

This case is being prosecuted by Assistant U.S. Attorneys Angela M. Munoz and Jordan L. Sing.

Awad pleaded guilty today in U.S. District Court before Judge Eric E. Tostrud to one count of wire fraud in the first case and one count conspiracy to commit wire fraud in the second case.  A sentencing hearing will be scheduled at a later time.

MINNEAPOLIS – Thomas Thanh Pham has been sentenced to 84 months in prison followed by three years of supervised release for defrauding an electronics manufacturing business, announced Acting U.S. Attorney Joseph H. Thompson. The defendant was also ordered to pay restitution in the amount of $2,943,840.“Fraudsters have flocked to Minnesota for far too long,” said Acting U.S. Attorney Joseph H. Thompson. “Pham is no exception. He is a serial fraudster who has demonstrated that he will not stop until he is stopped. Thanks to the hard work of law enforcement, for the next 84 months, Pham will be where he belongs—in prison.”“Bad actors like Pham take advantage of hardworking Americans in order to enrich themselves by defrauding others,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “With this sentence, Pham has been held accountable for his crimes. The FBI and our partners will continue working to stop schemes like this one and protect the public from being exploited.”Between 2019 and 2020, Thomas Thanh Pham, 53, of Burnsville, devised a scheme to defraud a California based company of approximately $1.2 million. Pham, who was the CEO of Enterprise Products, LLC, purported to provide consulting and financial services to commercial clients involved in engineering and manufacturing. Pham held himself out as a broker with supposed business relationships with large, well-known companies. As a supposed broker, Pham claimed he could arrange service agreements between an electronic manufacturing services company based in San Jose, California (identified as Victim A), and his ostensible business affiliates in the electronics and technology sectors.Pham began a series of discussions with Victim A, in which Pham pitched that Enterprise Products could facilitate multi-million-dollar manufacturing and repair contracts between Victim A and large electronics companies.  None of that was true.  To give the appearance of legitimacy, Pham arranged for a friend of his to pose as a corporate executive with Pham and Victim A in supposed contract negotiations. Unbeknownst to Victim A, Pham’s associate was not a business executive.  In fact, Pham’s “business executive associate” was a fellow ex-convict whom Pham met while serving a prior federal prison sentence for fraud.Pham supplied Victim A with bogus documents, including fabricated contracts, correspondence, and business proposals.  As part of the scheme, Pham first required Victim A to pay a “deposit bond” in the amount of $1,278,000. Pham’s fraudulent tactics resulted in Victim A agreeing to enter into a contract in September 2019, through which Victim A ostensibly would receive millions of dollars in exchange for repair services. Pham unsuccessfully pitched other phony deals to Victim A that purportedly involved even larger financial contracts deals with other companies.As part of the scheme and to give the impression that he was fulfilling the fraudulent contract, Pham caused the initial delivery to Victim A in California of approximately 20 samples of electronic devices that supposedly required repairs by Victim A. However, Pham failed to disclose to Victim A that these 20 “sample” devices were, in fact, stolen property. Pham then lulled Victim A into a false sense of security by offering a series of excuses and promises when Victim A either inquired about its money or demanded a refund. Rather than maintain the money securely in a refundable escrow as promised, Pham fraudulently misappropriated Victim A’s funds for a series of unauthorized uses and transactions.Pham received his first criminal conviction 32 years ago.  Since that time, he has been convicted of numerous fraud offenses, as follows:Felony Theft of Property, in which Pham unlawfully took a victim’s identifiers in order to fraudulently purchase a $49,000 car.Felony False Statements for Property, in which Pham knowingly false statement to fraudulently purchase a vehicle valued at more than $20,000.Felony Unlawful Possession of Fraudulent Identification, in which Pham knowingly possessed identification documents of a victim without permission for purposes of defrauding the victim.Securing Execution of Document by Deception (Felony), in which Pham attempted to pass a forged check.Multiple felony check forgeries.Conspiracy to commit wire fraud, a federal fraud conviction out of the United States District Court for the Northern District of Texas, which Pham used the identities of victim companies to defraud victims out of $1.9 million by deceiving them into shipping high-dollar electronics and computers.In handing down the sentence today, Judge Ericksen commented that Pham has “proven [himself] to be an efficient and effective perpetrator of fraud” whose crime was “part of a skilled execution of a scheme that he has refined over decades.”  At the conclusion of today’s hearing, Judge Ericksen immediately remanded Pham into custody at the government’s request, noting it “was too dangerous and too risky” to the public for Pham “to remain at liberty.”This case is the result of an investigation conducted by the FBI.Assistant U.S. Attorneys Matthew S. Ebert and Rebecca E. Kline prosecuted the case.

ST. PAUL, Minn. – An Eden Prairie man has been sentenced to 87 months in federal prison, three years of supervised release, and was ordered to pay restitution for fraudulently applying for more than $2.1 million in COVID-19 relief funds and then spending those proceeds on himself, announced U.S. Attorney Andrew M. Luger.As proven at trial, between March and May 2020, Harold Bennie Kaeding, 75, applied for at least $2,182,625 in loans through the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (EIDL) Program. Kaeding used the name of his own close family members to submit the loan applications in the names of six different purported corporate entities. But these entities were either defunct or not even in existence when the pandemic began, trial evidence showed. None of the businesses had filed tax returns or reported the payment of wages to a single employee for calendar years 2019 and 2020. Kaeding instead fabricated tax documents, manufactured bank statements, and submitted other records to ensure the applications appeared legitimate. These false statements to lenders manufactured the number of employees a given entity employed, the amount of average monthly payroll expenses, and false statements about the intended use of the loan proceeds.As a result of his material falsehoods and omissions, Kaeding initially received approximately $1,642,670 in relief funds before some banks detected irregularities and clawed back some of the money. This left Kaeding with $658,490 in fraud proceeds, which he transferred to bank accounts—often opened in the names of close family members—that he controlled. Among other things, Kaeding used the money to get his personal residence out of impending foreclosure, purchase an SUV, and stockpile more than $80,000 in cash. In early 2021, Kaeding fled to Colombia after learning he was under investigation. Law enforcement eventually located Kaeding and successfully deported him back to the United States to face prosecution.Following a ten-day trial in August 2024, Kaeding was convicted by a federal jury on three counts of wire fraud, three counts of aggravated identity theft, and one count of money laundering. He was sentenced last Friday, November 15, 2024, by Judge Eric C. Tostrud in U.S. District Court.This case is the result of an investigation conducted by the FBI and IRS. Assistant U.S. Attorneys Jordan L. Sing and Robert M. Lewis prosecuted the case.

BOISE – David Daniel Lynn Bowden, 21, of Caldwell was sentenced to 72 months in federal prison for possession of child pornography, U.S. Attorney Josh Hurwit announced today.

According to court records, in April 2021, the Idaho Internet Crimes Against Children (ICAC) Task Force received an investigative lead that Bowden possessed child pornography. ICAC is an investigative task force within the Idaho Office of the Attorney General funded by the State of Idaho and federal grants.

ICAC further investigated the tip and found corroborating evidence that Bowden possessed child pornography. Based on ICAC’s investigation, law enforcement secured a search warrant for Bowden’s residence in Caldwell to search for evidence of child pornography crimes. During the search of Bowden’s residence, law enforcement discovered 187 images of child pornography on Bowden’s phone. Some of the child pornography depicted prepubescent children.

“The collaborative efforts in Idaho to prosecute those who possess and distribute child pornography is second to none,” said U.S Attorney Hurwit. “Those who engage in this reprehensible conduct should know they have nowhere to hide.”

“Thank you to ICAC, the Caldwell Police Department and the US Attorney’s Office for their outstanding work that led to this sentencing. I am proud to work beside these agencies as they strive to keep Idaho’s children safe," Attorney General Raúl Labrador said.

Senior U.S. District Judge Lynn B. Winmill also ordered Bowden to serve ten years of supervised release following his prison sentence and ordered restitution to the victims. Bowden pleaded guilty to the charges on December 8, 2022.

U.S. Attorney Hurwit thanked the Idaho Internet Crimes Against Children Task Force, the Idaho Office of the Attorney General, and the Caldwell Police Department for their cooperative efforts that led to the prosecution.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

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MINNEAPOLIS – Three individuals living on the Red Lake Indian Reservation have been sentenced for felony child neglect and felony child endangerment, announced United States Attorney Andrew M. Luger.

According to court documents and evidence presented at trial, between February 2022 and January 2023, Robin John Roy, 55, Nicole Robyn Roy, 29, and Harrison Edwin Dudley Sr., 36, willfully deprived minor victims of necessary food, health care, and supervision despite their reasonable ability to make the necessary provisions, resulting in substantial harm to the minor victims’ physical, mental, and emotional health. Trial evidence established that one of the minor victims suffered from severe anemia as a result of malnourishment, and despite repeat efforts by health care providers to intervene in the child’s condition, the child nearly died as a result of the defendants’ collective failure to provide needed care. Trial evidence also established that both children suffered from prolonged lice infestations that progressed to life-threatening scalp infections. 

On February 16, 2024, following a six-day trial before U.S. District Judge Nancy E. Brasel, all three defendants were found guilty of felony child neglect. Nicole Roy and Dudley were also found guilty of felony child endangerment. All three defendants were sentenced on September 5, 2024, by Judge Brasel. Robin Roy received 24 months of probation, Nicole Roy received 12 months and a day in prison followed by three years of supervised release, and Dudley received four months in prison.

In handing down the sentences, Judge Brasel stated she had balanced the relative culpability and the relative nature and circumstances of each defendant. She emphasized that the neglect the children had suffered was “no less serious than an act of assault” because “the injuries that resulted were certainly life threatening,” the neglect went on for a long time, there were “relatively easy” steps the caretakers could have taken, and the caretakers nonetheless willfully failed to take action for the children’s basic needs. Judge Brasel remarked, “The children in this case, and all of the children like them, deserve better.”

This case is the result of an investigation conducted by the FBI.

Assistant U.S. Attorneys Lindsey E. Middlecamp and Rachel L. Kraker prosecuted the case.

MINNEAPOLIS – A Canadian man has been arrested and charged for his role in a $300 million telemarketing fraud scheme that targeted elderly and vulnerable victims, announced U.S. Attorney Andrew M. Luger.

According to court documents, Abdou Diallo, also known as Abdou-Rahmane Diallo, 34, of Montreal, Quebec, was a co-owner and operator of Readers Services and NP Readers Inc., both Canadian-based companies that carried out a telemarking fraud scheme. From 2011 through 2020, Diallo and his co-conspirators provided “lead lists” and fraudulent sales scripts to their telemarketing employees for use in carrying out the fraud scheme. The scheme targeted people who had previously fallen victim to a fraudulent magazine sales scam and been tricked into signing up for multiple expensive magazine subscriptions they did not want and could not afford. Diallo and his co-conspirators took advantage of the victims’ desperation to make the magazine subscriptions stop. They called the victims pretending to be from the “magazine cancellation department.” Diallo and his co-conspirators offered to pay off the victims’ “outstanding balance” and cancel their existing magazine subscriptions in exchange for a large, lump-sum payment. None of this was true. In reality, the victims did not owe the defendants or their companies any money. Diallo and his co-conspirators had no power or ability to cancel the victims’ existing magazine subscriptions or any outstanding balance owed to any other magazine companies. This scheme ultimately defrauded more than 20,000 victims—many of whom were elderly and vulnerable—across the United States out of approximately $30 million.

Diallo was arrested on March 30, 2022, at Miami International Airport in Miami, Florida, and made his initial appearance before Magistrate Judge Jacqueline Becerra in the Southern District of Florida. He will be transported in custody to the District of Minnesota for further court proceedings. Diallo is charged with one count conspiracy to commit wire fraud and four counts of wire fraud.

Another Canadian defendant, Saman Moghbel, 34, of Montreal, Quebec, pled guilty to one count of conspiracy to commit wire fraud on February 28, 2022, before Chief U.S. District Judge John R. Tunheim in Minneapolis. Moghbel’s sentencing hearing has not yet been scheduled.

Diallo is charged in connection to United States v. Timmerman et al., 20-cr-233. This indictment is related to United States v. Rahm, et al., 20-cr-232, United States v. Mathias et al., 20-cr-231, United States v. Dahl, 18-cr-305 and United States v. Oelrich, 20-cr-128. Over sixty defendants have been charged for their roles in a $300 million fraud scheme that targeted more than 150,000 elderly and vulnerable victims. To date, 37 defendants have pleaded guilty to their roles in the fraud scheme.

This case is the result of an investigation conducted by the FBI, the United States Postal Inspection Service, with assistance from the Treasury Inspector General for Tax Administration (TIGTA) and the Minnesota Attorney General’s Office.

Based on the evidence obtained in this investigation, authorities believe there may be additional victims of the alleged conduct. Report suspected fraudulent activity to MagazineVictims@FBI.GOV or visit FBI.gov/MagazineVictims.

Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, and Melinda A. Williams are prosecuting the case.

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

MINNEAPOLIS – A Minneapolis man has been arrested and charged with attempting to provide material support to a foreign terrorist organization, announced Acting U.S. Attorney Lisa D. Kirkpatrick.As alleged in the criminal complaint, in December 2024, Abdisatar Ahmed Hassan (“Hassan”) attempted to travel from Minnesota to Somalia to join ISIS on two occasions, neither of which was successful. Hassan attempted to disguise the purpose of his travel as visiting family despite having none in Somalia and was traveling with his birth certificate, naturalization certificate, and high school diploma.  The FBI’s investigation established that Hassan publicly supported ISIS on social media through multiple posts and communicated with a Facebook account for the Manjaniq Media Center, which encouraged individuals to travel to join ISIS and touts itself as a media organization of the Islamic Caliphate. The investigation further revealed that Hassan praised Shamsud-Din Jabbar, the perpetrator of the January 1, 2025, ISIS-inspired terrorist attack in New Orleans, Louisiana.  On February 21, 2025, Hassan also posted a video of himself driving while holding a small ISIS flag inside the vehicle, as well as another video of himself driving with an open knife on his lap.  On February 26, 2025, FBI observed Hassan driving while again holding the ISIS flag. “As we have all seen in recent months, ISIS and its supporters pose the gravest of dangers to our communities,” said Acting U.S. Attorney Lisa D. Kirkpatrick.  “Those who support foreign terrorist organizations in our homeland—like Hassan—are a clear and present threat to our national security.  They will be held to account.”“The FBI will continue to aggressively use all of our authorities to investigate and arrest anyone who assists foreign terrorist organizations,” said Alvin M. Winston Sr. of FBI Minneapolis. “Hassan allegedly attempted to travel to Somalia to join ISIS on two occasions and publicly shared support of ISIS on his social media accounts. Such acts are wholly unacceptable, and the FBI will work tirelessly with our partners to hold accountable those who attempt to support terrorists.”Hassan was arrested by authorities yesterday on a criminal complaint charging him with one count of attempting to provide material support and resources to a designated foreign terrorist organization. He made his initial appearance in U.S. District Court today before Magistrate Judge Tony N. Leung and was ordered to remain in custody pending a formal detention hearing which will take place on Wednesday, March 5, 2025, in St. Paul,  before Magistrate Judge Douglas L. Micko. The FBI is investigating the case with assistance from the Minneapolis Joint Terrorism Task Force.Assistant U.S. Attorney Benjamin Bejar, and National Security Division Counterterrorism Section Trial Attorneys Ryan White and Charles Kovats, Jr., are prosecuting the case. A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.



25-mj-104_complaint_packet.pdf

FERGUS FALLS, Minn. – Two men were sentenced today in the District of Minnesota after being convicted at a jury trial for their roles in an international human smuggling conspiracy that resulted in the deaths of four Indian nationals, including a three-year-old and 11-year-old child, announced Acting U.S. Attorney Lisa D. Kirkpatrick.“Every time I think about this case I think about this family—including two beautiful little children—who the defendants left to freeze to death in a blizzard,” said Acting U.S. Attorney Lisa D. Kirkpatrick.  “As we’ve seen time and time again, human traffickers care nothing for humanity.  I am proud of the work of our law enforcement partners in holding these defendants accountable for their unspeakable crimes.”“Today’s sentencing marks a crucial moment of accountability in a case that revealed the harrowing realities of human smuggling. The callous disregard for life that led to the tragic deaths of an entire family will not be forgotten,” said ICE Homeland Security Investigations St. Paul Special Agent in charge Jamie Holt. “At HSI, we remain steadfast in our mission to work with out partners across borders to dismantle criminal smuggling networks, bring justice to those responsible, and safeguard human dignity.”Harshkumar Ramanlal Patel, 29, was sentenced to 121 months in prison for his role in a human smuggling scheme.  The Court did not impose a term of supervised release on defendant Patel, citing the likelihood that Patel will be deported following his prison sentence.  Patel’s co-conspirator, Steve Anthony Shand, 50, received a sentence of 78 months followed by 2 years of supervised release.Trial evidence showed that Patel and Shand were involved in a major human smuggling operation that brought Indian nationals into Canada using fake student visas then illegally moved them across the U.S.-Canada border. Patel handled the coordination of smuggling individuals from Manitoba into the United States, while Shand picked them up after they crossed into the U.S. and transported them to Chicago. Both men were paid for their participation and ignored the life-threatening risks posed by the frigid conditions at the northern border. Testimony revealed that the going rate to be smuggled from India to U.S. from Canada was around $100,000.During a blizzard in January 2022, Shand and Patel, working with other co-conspirators, attempted to smuggle 11 aliens into the Unites States from Canada. Due to the storm conditions that night, Shand’s van got stuck in the snow. That turn of events forced the aliens to travel on foot for approximately seven hours in minus-36-degree wind chill and severe winter weather conditions while they searched for Shand’s vehicle. Two migrants found Shand while his van was stuck; the rest did not.A passerby pulled Shand’s van from the ditch. Soon thereafter, a U.S. Customs and Border Patrol agent arrived and suspected alien smuggling. Eventually, five additional aliens were located, one of whom was suffering from hypothermia so severe she had to be airlifted to Regions Hospital in St. Paul. Meanwhile, the Royal Canadian Mounted Police located the bodies of a family of four, two adults and two young children, who had separated from the larger group during the night.  The family died of hypothermia. The father was found still holding his infant child wrapped in a blanket. None of the 11 migrants was dressed appropriately for the severe, cold weather conditions.In November 2024, a federal jury found both defendants guilty of multiple charges, including conspiracy to bring aliens to the Unites States causing serious bodily injury and placing lives in jeopardy, conspiracy to transport aliens within the Unites States causing serious bodily injury and placing lives in jeopardy, attempted transportation of aliens for commercial advantage or private financial gain, and aiding and abetting the attempted transportation of aliens.“This case is a tragic reminder of the dangers of Human Smuggling. It is a clear example of how organizations exploit people for financial gain, regardless of the risk. The victims experienced the worst-case scenario firsthand; horrific conditions, injury, and death. We’re glad the smugglers are receiving consequences, but the crimes remain inexcusable. I’m proud of our agent’s persistence and collaboration between agencies; it is a testament to our commitment to border security,” said Special Operations Supervisor Ryan Gilberg of U.S. Border Patrol.In imposing sentence, U.S. District Court Judge John R. Tunheim explained that “Border smuggling is a very serious problem,” one that “exploits victims.” He noted that the night this family died was one “one of the coldest nights of the winter” and that these were “very dangerous conditions.”  Judge Tunheim said that the defendants “could have done something” and it “might have made a difference”—but they did nothing.This case is the result of an investigation conducted by U.S. Border Patrol and Homeland Security Investigations (“HSI”). The RCMP and the Justice Department’s Office of International Affairs provided substantial assistance.The sentencings are the result of the coordinated efforts of Joint Task Force Alpha (JTFA). JTFA, a partnership with the Department of Homeland Security (DHS), has been elevated and expanded by the Attorney General with a mandate to target cartels and other transnational criminal organizations to eliminate human smuggling and trafficking networks operating in Mexico, Guatemala, El Salvador, Honduras, Panama, and Colombia that impact public safety and the security of our borders. JTFA currently comprises detailees from U.S. Attorneys’ Offices along the southwest border. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by the Human Rights and Special Prosecutions Section (HRSP) and supported by the Money Laundering and Asset Recovery Section, the Office of Enforcement Operations, and the Office of International Affairs, among others. JTFA also relies on substantial law enforcement investment from DHS, FBI, and the Drug Enforcement Administration (DEA), and other partners. To date, JTFA’s work has resulted in more than 365 domestic and international arrests of leaders, organizers, and significant facilitators of alien smuggling; more than 334 U.S. convictions; more than 281 significant jail sentences imposed; and forfeitures of substantial assets.This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organization and protect our communities for the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.This case was prosecuted by the U.S. Attorney’s Office for the District of Minnesota and the Department of Justice’s Human Rights and Special Prosecutions Section. Acting United States Attorney Lisa D. Kirkpatrick represented the government at the sentencing hearings.

United States Attorney Erica H. MacDonald announced the conviction of RYAN RANDALL GILBERTSON, 42, founder of Dakota Plains Holdings, Inc., and DOUGLAS VAUGHN HOSKINS, 50, for orchestrating a complex stock manipulation scheme that triggered more than $30 million dollars in fraudulent bonus payments. Following a 10-day trial before U.S. District Judge Patrick J. Schiltz in Minneapolis, Minnesota, the jury found the defendants guilty of multiple counts of wire fraud, conspiracy to commit securities fraud, and securities fraud.

“Ryan Gilbertson masterminded and carried out a complex scheme to manipulate the price of Dakota Plains stock. Although his scheme was complicated, Gilbertson's goal was simple—to line his own pockets at the expense of the company and its investors,” said U.S. Attorney Erica MacDonald. “Gilbertson, a former derivatives trader who co-founded a billion-dollar publicly-traded oil company, was a wealthy man. But like all too many white collar criminals, these defendants were motivated by nothing more than naked greed. The FBI, U.S. Postal Inspection Service, and IRS worked for years to understand, investigate, and prosecute Gilbertson's complex stock manipulation scheme. Thanks to their efforts, these defendants will not escape justice.”

“Postal Inspectors take very seriously their mission to deter the illegal use of the mails for any criminal activity,” said Postal Inspector in Charge, Craig Goldberg. “We are committed to working together with our law enforcement partners to identify, investigate and bring to justice those who would attempt to mask their criminal activity through the use of the mail. Today’s verdict reaffirms how critical a role the US Postal Inspection Service plays in protecting the American consumer from these types of fraudulent schemes.”

“A free market depends on honesty and integrity of those involved in publicly traded companies,” said Jill Sanborn, Special Agent in Charge of the Minneapolis Division of the FBI. “In this case, Gilbertson, the founder of Dakota Plains, along with his associate, conspired to manipulate the market for their own financial gain. We are grateful that the jury saw what we saw in this case – a scheme that looked complex, but was really about market rigging and self-dealing.”

According to the evidence presented at trial, in November 2008, GILBERTSON and his business partner founded Dakota Plains, Inc. (“Dakota Plains”), a privately held company based in Wayzata, Minnesota that owned and operated a transloading facility in New Town, North Dakota. From the outset, GILBERTSON and his partner concealed their involvement in the company by installing their fathers as the company’s executives and two-person board of directors. Rather than capitalize the company at the outset, GILBERTSON caused the company to issue $9 million in promissory notes to himself and other corporate insiders. The notes paid 12% annual interest and included a provision that paid GILBERTSON and the other noteholders a bonus payment based on the average trading price of Dakota Plains stock during the first 20 days of public trading. The bonus payment provision operated as an “embedded derivative” in which the value of the bonus payment would be based on the average price of Dakota Plains stock during the first 20 days of public trading.

GILBERTSON then caused the company to go public via a reverse merger with a company called Malibu Club Tan, which was a publicly traded shell company that operated a single defunct tanning salon in suburban Salt Lake City, Utah. GILBERTSON made it a secret condition of the reverse merger that DOUG HOSKINS, his friend and polo coach, be able to purchase the majority of the freely trading shares, the only shares that could trade publicly following the reverse merger. GILBERTSON then gave $30,000 to HOSKINS, who was deeply in debt and owed money to the IRS and other creditors, in order to purchase 50,000 shares of Dakota Plains stock at a price of $0.50 per share on March 23, 2012, the morning of the reverse merger. That same day, again at the direction of GILBERTSON, HOSKINS began selling his shares at the falsely inflated price of $12 per share.

According to the evidence presented at trial, on the first day of public trading, HOSKINS began selling his newly acquired shares for an inflated price of $12 per share at GILBERTSON’S direction, and continued to do so throughout the first 20 days of public trading following the reverse merger. At the same time, GILBERTSON directed a local stockbroker at a Minneapolis-based securities brokerage firm, to purchase shares of Dakota Plains stock on behalf of both himself and his clients at inflated prices. GILBERTSON also instructed a Salt Lake City-based business consultant to manipulate the price of the stock by ensuring that none of the shell company shareholders sold their stock for less than the $12 per share price offered by his friend and polo coach, HOSKINS. Indeed, on April 4, 2012, GILBERTSON sent a text message to the consultant in Utah bragging that the shell company shareholders “would be participating on sales at 7 bucks [a share] not 12 were it not for my involvement.”

Throughout the 20-day period following the reverse merger, GILBERTSON, with the help of HOSKINS and others, manipulated the price of Dakota Plains stock to increase the average trading price to $11.30 per share. This triggered a $32.8 million bonus payment to GILBERTSON and the other noteholders. GILBERTSON made millions as a result of his stock manipulation scheme. HOSKINS made less money, but still pocketed more than $125,000 from his stock sales, much of which he used to purchase an Argentine polo pony.

In the wake of the fraud scheme, HOSKINS was interviewed by the Securities and Exchange Commission about his involvement in these stock sales. HOSKINS repeatedly lied under oath during the deposition, covering up both his and GILBERTSON’S involvement in the stock manipulation scheme. Among other things, HOSKINS claimed that he did not discuss the stock trades with any other individuals. At trial, GILBERTSON falsely denied his role in the stock manipulation scheme, but conceded that he had arranged for HOSKINS to purchase Dakota Plains stock prior to the reverse merger and had provided HOSKINS with the money with which he purchased the stock.

This case is the result of an investigation conducted by the FBI, Criminal Investigation Division of the IRS, and the United States Postal Inspection Service.

This case is being prosecuted by Assistant United States Attorneys Joseph H. Thompson, Kimberly A. Svendsen, and Melinda A. Williams.

 

Defendant Information:                                                                                                                     

RYAN RANDALL GILBERTSON, 42

Delano, Minn.

Convicted:

Wire fraud, 14 counts

Conspiracy to commit securities fraud, 1 count

Securities fraud, 6 counts

 

DOUGLAS VAUGHN HOSKINS, 50

Wayzata, Minn.

 

Convicted:

Wire fraud, 2 counts

Conspiracy to commit securities fraud, 1 count

Securities fraud, 3 counts

 

 

St. Paul, Minn. — Following a trial that lasted nearly five weeks, a federal jury in St. Paul, Minnesota found three former Minneapolis Police Department (MPD) officers guilty of federal civil rights offenses arising out of the death of George Perry Floyd, Jr. on May 25, 2020.

Former MPD Officers Tou Thao and J. Alexander Kueng were found to have deprived Mr. Floyd of his constitutional right to be free from an officer’s unreasonable force when each willfully failed to intervene to stop former MPD Officer Derek Chauvin’s use of unreasonable force, resulting in bodily injury to and the death of Mr. Floyd. Thao, Kueng, and former MPD Officer Thomas Lane also were found to have deprived Mr. Floyd of his constitutional right to be free from a police officer’s deliberate indifference to his serious medical needs when they saw him restrained in police custody in clear need of medical care and willfully failed to aid him, resulting in bodily injury to and the death of Mr. Floyd. Both offenses are violations of Title 18, United States Code, Section 242.

The convictions announced today are separate from and in addition to any and all charges the State of Minnesota has brought against these former officers related to the death of Mr. Floyd. The federal charges addressed civil rights offenses that criminalize violations of the U.S. Constitution.

“Those who have sworn to enforce our nation’s laws must abide by them. Today’s verdict recognizes that two police officers violated the Constitution by failing to intervene to stop another officer from killing Mr. Floyd, and three officers violated the Constitution by failing to provide aid to Mr. Floyd in time to prevent his death,” said Attorney General Merrick B. Garland. “The Justice Department will continue to seek accountability for law enforcement officers whose actions, or failure to act, violate their constitutional duty to protect the civil rights of our citizens.”

Acting United States Attorney Charles J. Kovats stated, “Today, former officers Tou Thao, J. Alexander Kueng, and Thomas Lane stand convicted by a jury of their peers of willfully violating Mr. Floyd’s civil rights. The same rights guaranteed to each and every one of us by the United States Constitution. They had a moral responsibility, constitutional requirement, legal requirement, and a duty to intervene… and by failing to do so, they committed a crime. This is a reminder that all sworn law enforcement, regardless of rank or seniority, individually and independently have a duty to intervene and to provide medical aid to a person in need.”

Co-defendant Derek Chauvin previously entered a guilty plea in connection with the federal case.  Chauvin pleaded guilty to willfully depriving Mr. Floyd of his constitutional rights while Chauvin was serving as an MPD officer. Chauvin also acknowledged that his conduct resulted in death and that he acted in callous and wanton disregard of the consequences to Mr. Floyd’s life.  In addition, Chauvin was tried in state court and convicted of second-degree murder. In 2021, Chauvin was sentenced in state court to 22.5 years in prison.

Evidence presented at the federal trial for defendants Thao, Kueng, and Lane established that on May 25, 2020, then-MPD Officer Chauvin held his knees on Mr. Floyd’s neck and back as Mr. Floyd lay on the ground, handcuffed and unresisting.  As soon as Mr. Floyd was on the ground, Chauvin placed his knee on the back of Mr. Floyd’s neck, while Kueng placed his knee on Floyd’s lower body. Chauvin would not remove his knee for the next nine minutes and twenty-nine seconds, and Kueng maintained his position for the next eight minutes and eleven seconds. Throughout this period, Mr. Floyd pleaded with officers 25 times to let him breathe.

As Mr. Floyd lost consciousness and a pulse, Chauvin and Kueng maintained their positions on his body. Even as Mr. Floyd ceased movement and stopped speaking, and even as Lane noted that Mr. Floyd was “passing out” and Kueng said he could not find a pulse, none of the CPR-certified defendants did anything to stop Chauvin from keeping his knee on Mr. Floyd’s neck or to render the medical aid that they were trained and required to provide. Even as EMTs arrived and checked Mr. Floyd’s pupils and pulse, Chauvin did not move his knee and the other officers on scene did not render aid to Mr. Floyd.

Firefighters and EMTs unsuccessfully attempted to revive Mr. Floyd on the way to the hospital, where he was pronounced dead. The county medical examiner ruled Mr. Floyd’s death was a homicide due to cardiopulmonary arrest complicating law enforcement subdual, restraint, and neck compression.

After the incident, an MPD supervisor and, later, an MPD lieutenant, spoke with Lane and Kueng. On both occasions, Lane and Kueng both omitted that Chauvin had knelt on Mr. Floyd’s neck, that Mr. Floyd had been restrained on his stomach for nine and a half minutes, that Mr. Floyd had lost consciousness, and that officers had not been able to find a pulse.  Additionally, Kueng told the supervisor that Mr. Floyd did not stop moving until after an ambulance arrived on scene, which he admitted at trial was false.  At trial, the MPD lieutenant testified that, after watching video taken by a bystander, he realized that what he was told and what was on the video was “totally different.”  He further testified that if an MPD officer observed another officer using too much force or doing something illegal, the officer has a duty to intervene to stop it, regardless of rank or seniority.  Testimony offered at trial established that this duty to intervene is enshrined in MPD policy and is a component of the police department’s training program. 

Evidence presented at trial also showed that MPD officers were required to complete emergency medical responder (EMR) training prior to entering the police academy, which includes CPR training. Further, MPD policy requires officers to determine if a subject is injured after a use of force and to render medical aid as soon as reasonably practical and requires officers assisting a person experiencing a medical crisis to provide first aid while awaiting EMS.

The jury found that the defendants disregarded this training and willfully violated Mr. Floyd’s constitutional rights.  Kueng and Thao failed to intervene to stop Chauvin’s use of unlawful force and all three defendants failed to provide aid to Mr. Floyd as he suffered a medical emergency at the hands of a fellow police officer.  

No sentencing date has been set. The statutory maximum sentence for the death-resulting violation of section 242 is life in prison.

Attorney General Merrick B. Garland, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Charles J. Kovats, and Special Agent in Charge Michael F. Paul of the FBI’s Minneapolis Division announced today’s verdict.

The investigation was conducted by the Federal Bureau of Investigation with the cooperation of the Minnesota Bureau of Criminal Apprehension. The case is being prosecuted by Special Litigation Counsel Samantha Trepel and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division, and Assistant U.S. Attorneys Samantha Bates, LeeAnn Bell, Evan Gilead, Manda Sertich, and Allen Slaughter of the District of Minnesota.

Remarks as prepared for delivery.

 

Good Morning.  Thank you to Acting Deputy Assistant Attorney General Richard Downing for the introduction and thank you to Attorney General Sessions and Associate Attorney General Brand for hosting this Summit.   As noted, I am Greg Brooker, the United States Attorney for the District of Minnesota.  I am pleased to be here today to talk about an issue that my office is deeply committed to, and that the Department has placed such a high priority on:  Prosecuting Human Trafficking Cases.

It is timely that this Summit comes at the end of Human Trafficking Awareness Month and with the Super Bowl taking place just two days from now in my home town of Minneapolis.  I would like to take this opportunity to highlight trends and cases in my federal district, as well as talk about some of the proactive work we have done to prepare for a potential uptick in human trafficking during one of the world’s largest sporting events.

Sex trafficking is a market-driven enterprise, and empirical data show that a major sporting event like the Super Bowl can bring about an increase in online sex ads on Craigslist, Backpage, and other places.  We also know from recent research studies that those who purchase commercial sex are not confined to one demographic group -- they come from all walks of life.  According to a recent survey of 750 men in Minnesota, most sex buyers are men between the ages of 30 & 60.  More than 70 percent of them are white, and half are married. Nearly 70 percent have kids and almost half make $50,000 or more a year.

A recent assessment by the Human Smuggling and Trafficking Center (HSTC) concludes that high profile events with large crowds, like the Super Bowl, can be attractive targets for sex traffickers, and we know that there is a short-term uptick in advertisements during this period.

In preparation for the Super Bowl in Minneapolis, an Anti-Sex Trafficking Team with over 40 organizations was created to map out strategies to crack down on sex trafficking - from all angles - across the entire state. The Team is led by Hennepin County, which is Minneapolis, and Ramsey County, which is St. Paul.  And the Team includes the US Attorney’s Office, Carlson Family Foundation and the Women’s Foundation of Minnesota, which have both been leaders on this issue.  The Team also includes representatives from nonprofits, hospitals, private businesses, and law enforcement entities and has been supported by the National Football League.  

So what has this Team been up to?  We have developed a plan that includes additional emergency shelter beds, increased street outreach and a hotline to report trafficking related tips.  We have created a 24-hour, fully staffed hotline to ensure victims can immediately find safe shelter. Service providers have worked with city governments to relax zoning requirements if needed during the timeframe of the Super Bowl to ensure that no one will be denied space in a shelter in the cold winter months in Minnesota. What is especially unique is that this Team not only brought together private and public sector stakeholders, but it includes the key voices of sex trafficking survivors.

The Team designed multiple public awareness campaigns, specifically for the Super Bowl, including the “Don’t Buy it” campaign, designed to educate men and boys about sex trafficking.  This campaign aims to focus on the demand side.

Here’s a short clip of the “Don’t Buy It” Public Service Announcement running in Minnesota and Online:

 “Don’t Buy it” https://www.youtube.com/watch?v=AVE4Z2RXsCc

The Team also created a campaign aimed at preventing at-risk youth from being trafficked. The “I Am Priceless” campaign is geared toward youth between the ages of 8 and 12 who are at risk for being trafficked.  The Team sought the input of youth who are trafficking survivors to develop the campaign, which is focused on reaffirming self-esteem and self-worth. These campaign ads are on posters at malls, on bus shelters, murals, billboards, and include a 30-second radio spot. They are being featured on social media apps like Instagram, Facebook, Snapchat and YouTube.   Here’s a short clip of the “I am Priceless” video:

“I Am Priceless” https://vimeo.com/240218675

In the months leading up to the Super Bowl, bus drivers, hotel workers and all 10,000 Super Bowl volunteers received training on how to identify sex trafficking when they see it and where to report it.   In addition, U.S. Bank has taken the lead to train internal investigators and analysts to identify trends and red flags that may be human trafficking indicators – this new Team is reporting directly to law enforcement.

A collaborative team of dozens of local police departments and federal agencies, led primarily by Homeland Security Investigations, FBI, and the Minneapolis Police Department, has made great efforts to plan and execute proactive strategies such as coordinating targeted sex trafficking stings during the week of the Super Bowl. And multiple arrests have been made. 

Human trafficking, of course, is not limited to large-scale events like the Super Bowl.  Sadly, these crimes against human rights occur 365 days a year.  It is a prevalent and persistent problem that shows its face in many disturbing ways, yet often remains hidden in plain sight.

Many people wouldn’t think of Minnesota as one of the prime locations for human trafficking; however, the FBI has identified the Twin Cities as the nation’s 13th largest location for child sex trafficking in the country.  Minnesota is unique in its geography, its diverse populations and its major industries. The Twin Cities represent a large metropolitan area that is home to more than a dozen Fortune 500 companies, a major international airport, the largest shopping mall in the United States, as well as multiple major league sports teams and event venues. We also share our northern border with Canada, we have an international shipping port in Duluth, and through our interstate corridors we are directly connected to other large Midwestern cities such as Chicago, St. Louis, and Milwaukee. The State has 11 federally recognized Indian Tribes and is home to many immigrant groups, including sizable Hmong, Somali, Ethiopian, and Liberian communities. Minnesota pretty much has everything. However, the things that make our state unique are also the things that present human trafficking vulnerabilities.  Minnesota is also nationally recognized as a leader on human trafficking awareness – its Safe Harbor Law served as a template for federal legislation. This is why the fight against human trafficking is a crucial mission that none of us can afford to ignore or to only emphasize during a Super Bowl.

In 2016, the district was one of only six districts designated as an Anti-Trafficking Coordination Team (ACTeam) location. This is a collaborative initiative among my office, the FBI, the Department of Homeland Security and the Department of Labor. Through this initiative, we focus on developing high impact human trafficking investigations and prosecutions, as well as developing strong partnerships with victim service providers and state and local law enforcement partners.

I am proud of the depth and breadth of the work of my office, in conjunction with our partners in federal, tribal, state, and local law enforcement. Together we have investigated and prosecuted trafficking cases ranging from large-scale, transnational organized criminal enterprises, to individual traffickers who target minor victims, to labor traffickers who prey on vulnerable, often foreign-born populations.

We know that as people go about their busy lives they usually aren’t paying attention to indicators of human trafficking, so these crimes often occur in plain sight. That’s why through our federal and state law enforcement task forces in Minnesota, we have trained those on the front lines to identify signs of human trafficking and to report it to law enforcement. Throughout the year, we are focusing our training efforts on employees who work in hotels, airports, casinos and other hospitality and entertainment occupations. We are also reaching out to schoolteachers and administrators, bankers, transportation industry workers, hospital workers and faith communities. These trainings throughout Minnesota have resulted in actionable tips that have contributed directly to the successful investigation and prosecution of human traffickers.   We have also collaborated with an organization called “COAST” – Club Operators Against Sex Trafficking – to provide education and training to owners and employees of adult entertainment clubs who may be most likely to encounter the signs of a sex trafficking victim – currently my office is investigating such tips now.

Let me highlight a handful of the cases we’ve handled that are result of some of these tips.

Last year, in a wealthy suburb of St. Paul, local police officers encountered a woman wandering the streets at night, bloody, beat up and frail. She was heading in the direction of the airport. They stopped and spoke to the woman and because of their recent training; the officers were able to quickly recognize that the woman was a victim of human trafficking and were able to access the appropriate help and resources for her, including involving Homeland Security Investigations from the outset. The subsequent investigation revealed that the woman endured horrific abuse at the hands of the defendant, Lili Huang. In addition to being held against her will and forced to work up to 18 hours a day, the victim was kicked, punched, grabbed by her hair and threatened with knives. The victim told law enforcement that she hid clumps of her hair, which had been grabbed and torn out by the defendant, under her mattress so that she wouldn’t be forced to eat it. My Office worked hand in hand with our state and local law enforcement partners to achieve a successful prosecution of the defendant, who was ultimately sentenced to more than a year in custody after which she will be deported to China, ordered to pay over $100,000 in restitution to the victim and to third-party victim services, and required to forfeit her house.

In another all too common scenario, last year four teenage girls testified at a federal trial against a trafficker who had sold them for sex in the Twin Cities. The investigation began when a concerned mother reached out to her local Sheriff’s Office to report that a man named Deuvontay Charles was recruiting her 17-year-old daughter to engage in prostitution. In the defendant’s Facebook messages, he described how the girl could “make money” and promised a trip to Las Vegas and that “life will be smooth sailing.”  He told her that he would provide condoms and protect her from the “clients.” The defendant also instructed the young girl to save his phone number as “Daddy.”

That initial report led to law enforcement identifying additional juvenile victims. A 14-year-old girl told law enforcement that this same defendant had requested sexually-explicit images of her. The defendant also sent two pornographic images of an adult female and instructed the 14-year-old victim to send pictures of herself in similar sexual poses.

The defendant trafficked a second victim, who was also only 14-years-old, and used her to produce sexually-explicit images. Charles asked the victim to make a video of herself engaged in sexual acts. While recruiting the victim, the defendant asked if she wanted “to make money.” When she asked what he meant, Charles replied “sex.”  Knowing she was only 14-years-old, Charles responded that while she is “kinda young,” there would be a lot of money to make.

Charles preyed on yet another victim. He sent messages to a 17-year-old about making “quick money.” After picking the victim up in a Minneapolis suburb, he posted her as an “escort” on backpage.com. He then made a hotel reservation using an alias and paid for the room in cash. For the next several days, the defendant sold the victim for commercial sex and kept all the money the victim received as a result of the sex acts that she was forced to engaged in.

At the time he committed these offenses, Charles was a registered sex offender based on a prior conviction for soliciting a child to engage in sexual conduct.

Clearly, this man is a predator who targeted vulnerable young girls. Justice was served when the victims’ important testimony led to Charles’ conviction and a thirty-six year sentence in federal prison.

Our office is also actively prosecuting one of the largest transnational sex trafficking cases in the nation. This particular case is truly remarkable because of the collaborative efforts of multiple law enforcement agencies, victim service providers, and industry partners across multiple jurisdictions who took on this case and attacked the international criminal enterprise from every angle.

The investigation started through good old fashion police work. A federal agent with Homeland Security Investigations received a report from her HSI colleagues in Arizona that multiple Thai women were being trafficked in Arizona and the operation was moving some of the women to Minneapolis. Our office commenced an investigation with our federal and local law enforcement partners and, eventually, other federal, state and local jurisdictions from around the country.

We worked with multiple U.S. Attorneys’ offices, HSI, state and local law enforcement across the country, the Department of State, as well as components within the Department of Justice including the Human Trafficking Prosecution Unit and the Money Laundering and Asset Recovery Section. Through surveillance, review of records and receipts, and other techniques, law enforcement learned that these victims were being trafficked in nearly every major city throughout the U.S. under the watchful eye of a massive criminal organization.

I would like to take a moment to describe the vast criminal enterprise that was responsible for trafficking hundreds of impoverished women from Bangkok, Thailand, to cities through the United States, including Minneapolis, Los Angeles, Chicago, Atlanta, Phoenix, Las Vegas, Houston, Dallas, Austin, Seattle and right here in the nation’s capital. Putting the pieces together required close coordination with international, national, state and local partners. It is the result of more than four years’ worth of work, and begins the current prosecution process of dismantling a highly profitable operation that generated millions of dollars through a highly sophisticated sex trafficking scheme.

These victims typically came from impoverished backgrounds and spoke little English- vulnerabilities that the traffickers exploited during the recruitment process. The women were promised a better life in the United States in exchange for a large “bondage debt,”  of anywhere between $40,000 and $60,000. The women were told that, after they worked off their debt, they could become U.S. citizens. The recruiters who met with them in Thailand were friendly, helpful and made the future in the United States sound bright. They brought them to photography studios to take professional-quality, escort-style photographs, which ultimately were sent to traffickers here in the United States and used to advertise the victims for sex on websites.  The traffickers also encouraged the women to get breast implants in an effort to make the women “more appealing” to men in the U.S. The cost of the cosmetic surgery was added to the victims’ bondage debt.

When the women arrived in the U.S., everything changed. They were essentially held prisoner in prostitution houses and only allowed to leave if accompanied by an employee of the organization.  The women were forced to have sex with strangers for many hours every day, even if the men were abusive. They were threatened by the organization. The traffickers ensured that the women remained isolated in the United States. They had little money, no freedom of movement, and no interaction with the outside world.

The structure of this sex trafficking organization was hierarchical. It consisted of Traffickers, House Bosses, Money Launderers, Facilitators and Runners. Each of these players had their own clearly defined role to play in keeping this criminal organization profitable.

At the top of the organization were the Traffickers.  Traffickers in the United States and in Thailand were responsible for recruiting the victims and controlling the bondage debt. They learned everything they could about the women, including detailed information about their families.

The information obtained about the victims’ families was an important part of the scheme.  Armed with this information, the traffickers threatened anyone who wanted to or tried to escape the organization, including threats that their families would be harmed if the women did not do everything they were told.

The traffickers also determined where in the United States the women would be sent.  But first, they had to get the women into the U.S.  The traffickers did this by engaging in widespread visa fraud, including arranging sham marriages and lying on visa applications, in order to facilitate the travel of the women from Thailand into the United States. Once in the U.S., the women were sent to one of many houses of prostitution.

The House Bosses, who reported to the traffickers, were responsible for the day-to-day operations of these houses. They advertised the women, usually on websites like backpage.com, scheduled sex buyers, and ensured that the cash earned by the victim was routed back to the trafficker, with the house boss taking her cut. Little money was left for the victim herself to pay off the bondage debt.

The Facilitators assisted in the money laundering and other activities of the organization. They helped lease apartments and other locations used as houses of prostitution, book travel, advertise the women, and schedule commercial sex acts. They were also responsible for laundering and routing millions of dollars generated through this commercial sex trade.

And, finally, there were the Runners.   The trafficking organization feared the women would try to escape, so the runners accompanied them when they left the house, apartment, or hotel room. The runners were also responsible for bringing them to and from the airport. The organization regularly moved the woman to different cities so that the women did not develop connections, to generate new clientele and to supply new markets. Runners also took them to the bank where the victims would deposit the payments on their bondage debt. The runners were typically men, and were often paid, at least in part, in sex with the victims.

This prosecution has been a massive undertaking.  As noted, to date, it is one of the largest federal sex trafficking prosecutions in the United States.  In total, we have publicly indicted 38 members of the organization.

Seventeen have thus far pleaded guilty. A trial date has been set for early May for the remaining defendants. Hundreds of victims have been recovered around the country. Millions of dollars have been seized, which will go toward much-deserved restitution to the victims. Weapons have also been confiscated.

One thing I would like to emphasize in particular is our work in helping the victims find hope and a sense of justice. As noted, this organization made millions of dollars annually and the prosecution team is working to secure that money for victim restitution. The DOJ Money Laundering and Asset Recovery Section (MLARS) is playing an integral role in this aspect of the case. MLARS has documented more than $25 million in proceeds from the commercial sex acts having been laundered back to the traffickers. When dealing with this level of organized crime, we know that we can only shut down a sophisticated sex trafficking organization when we take away their money.

My office has also collaborated with an organization in Los Angeles called the Thai Community Development Center, a DOJ grantee. They specialize in working with the Thai population to help provide victims with access to culturally sensitive and language specific resources and services. Today, some of the victims have learned English, some are taking vocational courses, and some are living independently and finding a future.

We take seriously the Department of Justice’s directive to take a victim-centered approach to our trafficking cases and, thankfully, Minnesota has unique resources that provide exceptional services to stabilize and support victims throughout a case’s full investigation and prosecution.

In conclusion, while the increased awareness and attention that the Super Bowl brings to this issue is important, I want to again emphasize that human trafficking is not a problem unique to the Super Bowl or any other major event. If we want to get the problem of human trafficking under control, awareness and enforcement efforts must continue long after the big game is over.

 

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MINNEAPOLIS – Mark Erjavec, 49, was indicted on five counts of wire fraud, announced Acting U.S. Attorney Joseph H. Thompson.  Erjavec, of Edina, Minnesota, fraudulently obtained and stole more than $975,000 in Covid-19 relief funds.  Erjavec made his initial appearance in federal court today.“Erjavec stole nearly $1 million in government dollars meant to keep small businesses alive during the pandemic,” said Acting U.S. Attorney Joseph H. Thompson.  “When Minnesotans were struggling to keep their doors open and pay their workers, Erjavec lined his own pockets.  Fraud that exploits a crisis is especially shameful.”In the wake of the Covid-19 pandemic, Mark Erjavec, devised and executed a scheme to defraud federal Covid-19 relief programs to enrich himself. Specifically, Erjavec took advantage of programs created to provide a financial lifeline to small businesses during the pandemic.  Erjavec took funds intended for struggling businesses by resurrecting shell entities and submitting false applications.Specifically, Erjavec reactivated dormant business entities for use in his scheme.  From the mid-1990s until the early 2000s, Erjavec owned nine businesses that were registered in Minnesota.  Those companies included Tricolor Heron, LLC, Mesaba Finance – Law, LLC, Mesaba Finance – Summit, LLC, among others.  Each of these entities were administratively dissolved by the Minnesota Secretary of State between 2008 and 2013.From April 2020 to August 2020, Erjavec reactivated these dormant business entities and used them to submit fraudulent Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) applications to the Small Business Administration (SBA).  In those submissions, Erjavec overstated revenues, claimed nonexistent employees, and attached fabricated IRS tax forms to lend the appearance of legitimate business activity.  Erjavec often opened new checking accounts for the shell entities on the same day (or within days) of registering the business. As a result of his fraud scheme, Erjavec obtained more than $975,000 in Covid-19 relief funds.  Erjavec stole that money, which he wired into accounts he controlled exclusively. Erjavec used the money for his own personal benefit and spending.“As alleged in the indictment, Mark Erjavec knowingly submitted false and fraudulent documents to the Small Business Administration in order to take money intended for legitimate small businesses suffering during the Covid-era economic downturn,” said Minneapolis FBI Special Agent in Charge Alvin M. Winston Sr.  “Erjavec re-registered dormant business entities in order to facilitate the theft of more than $975,000 in taxpayer dollars. Our efforts to stop this egregious fraud are moving forward full speed ahead; we will work with our partners at the Small Business Administration and the U.S. Attorney's Office to hold accountable those who illegally enrich themselves by defrauding the government.”This case was the result of an investigation conducted by the Office of Inspector General – U.S. Department of Commerce and the FBI, as a part of the Pandemic Response Accountability Committee (PRAC) Task Force, established to promote transparency and facilitate coordinated oversight of the federal government’s COVID-19 pandemic response.Assistant U.S. Attorney Bradley M. Endicott is prosecuting the case.An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

U.S. Attorney Erica MacDonald today announced that the state of Minnesota received nearly $1.5 million from the Department of Justice’s Office of Justice Programs (OJP) and its component, the Office for Victims of Crime (OVC), to provide safe, stable housing and appropriate services to victims of human trafficking.

“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”

“Safe and stable housing is an integral step in the healing process and the path towards independence and a future free from exploitation,” said United States Attorney Erica MacDonald. “These grants awarded today will provide much needed funding for housing and related expenses for victims of all forms of human trafficking throughout Minnesota.”

The grants, awarded to the Link, Face to Face Health and Counseling Service Inc., and to Lutheran Social Services of Minnesota, will provide six to 24 months of transitional or short-term housing assistance for all forms of human trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. Funds will also provide for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. These recipients are among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.



Grantee





Amount Awarded





The Link





$500,000





Face to Face Health and Counseling Service, Inc.





$499,998





Lutheran Social Services of Minnesota





$472,794



 

“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”

Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice, another component of OJP, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.

OVC, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.

U.S. Attorney MacDonald’s public service announcement aimed at raising awareness and reaching victims is available here.

For a complete list of the individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf

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United States Attorney’s Office, District of Minnesota: (612) 664-5600