MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Kevin Shibilski, 61, Merrill, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 33 months in federal prison, followed by three years of supervised release, for failure to pay $858,101 in employment taxes to the IRS for tax years 2014-2016.  On May 16, 2022, Shibilski pleaded guilty to failing to pay over employment taxes to the IRS from Pure Extractions Inc. and Wisconsin Logistics Solutions LLC. 

Shibilski was a minority owner and CEO/CFO of 5R Processors (5R), which had locations in Ladysmith, Catawba, Glen Flora, Wisconsin, and Morristown, Tennessee. 5R was involved in the recycling of electronic equipment and other assets.  Pure Extractions Inc. (Pure Extractions) was created by Shibilski in June 2014 to handle 5R’s recycling operations. Pure Extractions took on all of 5R’s recycling customers, warehouses and equipment, income flows from recycling, most of 5R’s recycling employees, but none of 5R’s debts.  Wisconsin Logistics Solutions LLC (Wisconsin Logistics) was created by Shibilski in February 2015 to handle 5R’s trucking and logistics operations. Wisconsin Logistics took on most of 5R’s trucks and equipment, drivers, dispatchers, pick-up routes, licenses, and all of 5R’s income flows from trucking and logistics, but again, none of 5R’s debts.

At today’s sentencing, Judge Peterson found that the government presented overwhelming evidence showing that Shibilski had been in charge of 5R’s operations and finances since March 2013 and had been the primary decisionmaker on which bills to pay and not pay, including not paying the employment taxes for 5R, Pure Extractions and Wisconsin Logistics.  Judge Peterson found that Shibilski had not sincerely accepted responsibility for his actions, noting that Shibilski kept blaming everybody else, including the IRS, his co-defendants, and other 5R employees for the nonpayment of the employment taxes. Judge Peterson added that as the CEO/CFO and part-owner of 5R, Shibilski was the person who was in charge at 5R, which had a brother-sister relationship with Pure Extractions and Wisconsin Logistics.

Judge Peterson explained that a sentence of imprisonment was necessary in this case to send a deterrence message to two groups. One, business owners who willfully fail to pay their employment taxes and need to know their actions will have consequences and they will go to federal prison. Two, the general public who need to know that prison is not just for the impoverished or drug dealers, and that people who willfully fail to pay the IRS and use the tax funds for other purposes, will go to prison.

As part of the plea agreement, Shibilski agreed to pay monies towards the remediation of the leaded glass storage sites for 5R in Wisconsin and Tennessee in the amount of: (1) $100,000 to the Wisconsin Department of Natural Resources, and (2) $100,000 to Paint Oak LLC, Knoxville, Tennessee.

Shibilski’s co-defendant, Bonnie Dennee, pleaded guilty to conspiracy to defraud the United States, relating to 5R’s illegal storage of leaded glass. On January 26, 2021, Dennee was sentenced to 5 months in prison.  Shibilski’s co-defendant, James Moss, also pleaded guilty to conspiracy to defraud the United States relating to 5R’s illegal storage of leaded glass, as well as conspiracy involving the failure to pay over 5R’s employment taxes. On November 23, 2020, Moss was sentenced to 18 months in prison.

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

MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Depronce Burnett, 39, Beloit, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 11 years in federal prison for possessing with intent to distribute 500 grams or more of cocaine.  This prison term will be followed by a 4-year term of supervised release.  Burnett pleaded guilty to this charge on May 11, 2023.

In the fall of 2021, Burnett distributed cocaine and methamphetamine in Rock County, Wisconsin, primarily out of his home in Beloit. Even after his arrest by the Beloit Police Department on September 30, 2021, Burnett directed the further sale of cocaine and methamphetamine from the jail by calling his wife, Dominique Holsten. The sales continued until police executed search warrants at their Beloit home on October 27, 2021.  During the search, officers found hidden stashes of illegal narcotics, including more than 900 grams of cocaine and over 500 grams of methamphetamine, in addition to $87,000 in U.S. currency.

Burnett had an extensive history of trafficking in narcotics, for which he had served short sentences in state prison.  In sentencing Burnett, Judge Conley noted that Burnett had no real employment history in nearly 20 years except for selling drugs.  Conley said that although Burnett had numerous opportunities to go in a different direction, Burnett escalated his dealing to a level that did damage to the entire community.  Conley said that a significant sentence was necessary because Burnett was a risk to the public, as none of his prior sentences had an impact on his choice to deal narcotics. 

Burnett’s wife, Dominique Holsten, is scheduled to be sentenced by Judge Conley on August 15 for her role in facilitating the distribution of drugs after Burnett’s arrest.



The charge against Burnett was the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation, the Beloit and Janesville Police Departments, and the Drug Enforcement Administration.  The prosecution of this case has been handled by Assistant U.S. Attorney Robert A. Anderson.

MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Ursula Wing, 42, New York City, New York, was sentenced today by Chief U.S. District Judge James D. Peterson to a two-year term of probation, and fined $10,000, for supplying abortion-inducing pills without a prescription to customers in the United States, including Wisconsin, and throughout the world, and concealing her conduct from U.S. government regulatory and enforcement authorities.

On March 20, 2020, Wing pleaded guilty to Count 1 of an indictment that charged her with conspiracy to defraud various U.S. governmental agencies, including the FDA, U.S. Postal Service, and U.S. Customs.  The indictment alleged that Wing operated a blog called “the Macrobiotic Stoner,” with a secret web page called “My Secret Bodega,” where she sold foreign-sourced versions of Mifepristone and Misoprostol from India, that were not approved by the FDA for use in the United States.  

According to the indictment, these drugs are used to medically terminate an early pregnancy (up to 70 days or less).  Mifepristone is a prescription drug, but is not available to the public through pharmacies; its distribution is restricted to specially qualified, licensed physicians, and the administration of Mifepristone is subject to an FDA Risk and Evaluation Mitigation Strategy (REMS).  Among the REMS requirements are that Mifepristone may only be dispensed in clinics, medical offices, and hospitals by, or under the supervision of, a certified healthcare provider.

At her plea hearing, Wing admitted that she could not sell these prescription drugs because she was not licensed to do so. She also admitted that she illegally smuggled these misbranded drugs into the United States from an offshore pharmacy located in India.  Wing admitted that she operated a fake jewelry business called Fatima’s Bead Basket to hide her illegal conduct from U.S. authorities.  Wing admitted that she inserted a necklace or other item of jewelry into the shipping envelope to serve as the cover piece of merchandise being mailed to the customer.  She then packaged the misbranded prescription drugs into a smaller packet that was in a hidden panel and taped to the inside of the shipping envelope.  Wing also disguised the nature of the item being purchased by listing jewelry product names on the invoice.



Wing also admitted that she created a second fake online jewelry business called Morocco International and a fake merchant processing portal for use as a cover for selling the misbranded prescription drugs on her secret webpage.  By creating this fake merchant processing portal, Wing allowed her Macrobiotic Stoner clients to pay for the misbranded drugs using their credit cards, with the sales showing up on the merchant account as jewelry, and not Mifepristone or Misoprostol. 

At today’s sentencing, Judge Peterson noted that while Wing had the right to disagree with the legal requirements surrounding the distribution of Mifepristone and Misoprostol in the United States, she nonetheless committed a crime in selling these drugs, which she knowingly obtained from an offshore pharmacy in India, and which had not been approved by the FDA for use in the United States.  Judge Peterson explained that such conduct created a danger to the public in two ways.  First, it allowed people to obtain the drugs such as a Marathon County man who allegedly used them in an attempt to induce his girlfriend to abort her 120-day pregnancy without her knowledge or consent, which resulted in the man being charged in Marathon County Circuit Court with attempted first-degree intentional homicide of an unborn child.  Second, Wing could not vouch for the safety of the product she was distributing, as evidenced by the fact that she had no testing protocols in place, and had to trust the pills she was smuggling into the United States from India were safe and effective.

Judge Peterson also ordered Wing to forfeit $61,753, which represented the cost of the Mifepristone and Misoprostol pills that Wing sold from 2016 to 2018.

“Prescription drugs that are obtained illegally from online sources and then sold online to consumers can cause serious harm,” said Special Agent in Charge Lynda M. Burdelik, FDA Office of Criminal Investigations Chicago Field Office. “We will continue to investigate and bring justice to those who place the public’s health at risk.”

The case against Wing is the result of an investigation conducted by the U.S. Food and Drug Administration - Office of Criminal Investigations, U.S. Postal Inspection Service, and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  The prosecution of this case is being handled by Assistant U.S. Attorney Daniel Graber.

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

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

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

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

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

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

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

MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Kenneth Zipperer, 54, Wausau, Wisconsin, pleaded guilty today to one count of mail fraud and one count of money laundering.  After accepting Zipperer’s two guilty pleas, U.S. District Judge William M. Conley sentenced Zipperer to 6 months in federal prison, imposed a $150,000 fine, and ordered him to pay $483 in restitution. 

On November 18, 2020, a federal grand jury sitting in Madison, Wisconsin returned a 26-count indictment against Zipperer charging him with five counts of mail fraud, ten counts of wire fraud, two counts of distributing misbranded prescription drugs without a written prescription or license to administer such drugs, five counts of concealment money laundering, and four counts of promotional money laundering.

According to the indictment, Zipperer imported foreign-sourced prescription drugs from an internet pharmacy company in India via the U.S. Mail and Express Mail Service, and none of the drugs were approved by the U.S. Food & Drug Administration (FDA) for human consumption in the United States.  The indictment alleged that Zipperer distributed many of the foreign-sourced prescription medications to his insurance clients in person, primarily at the business office for Zipperer Financial LLC in Wausau.  Zipperer pleaded guilty to Counts 3 and 21 of the indictment.

“Distributing unapproved prescription drugs is illegal and puts consumers’ health at risk.  In order to protect public health and safety, our office works closely with our law enforcement partners to identify and prosecute those who seek to profit from selling unapproved prescription drugs,” said Acting U.S. Attorney O’Shea.  

“Patients who take foreign unapproved prescription drugs are at serious risk of harm, as the drugs have no guarantees of safety or efficacy and hold the potential to harm those who use them,” said Special Agent in Charge Lynda M. Burdelik, FDA Office of Criminal Investigations Chicago Field Office. “We will continue to investigate and bring to justice those who put public health at risk.”

The charges against Zipperer were the result of an investigation conducted by the U.S. Postal Inspection Service, U.S. Food & Drug Administration - Office of Criminal Investigations, IRS Criminal Investigation, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  Assistant U.S. Attorney Daniel Graber handled the prosecution.

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

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

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

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

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

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

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

MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Eric Upchurch, 36, Madison, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 28 months in federal prison for wire fraud, making false statements to the Small Business Administration (SBA), and money laundering related to the Paycheck Protection Program. Upchurch was convicted of these charges on June 13, 2024, following a jury trial.

In March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted to provide immediate financial assistance to individuals, families, and organizations affected by the COVID-19 pandemic. This Act authorized the SBA to offer Paycheck Protection Program (PPP) forgivable loans to business owners negatively affected by the COVID-19 pandemic.     

Throughout 2020 and 2021, Upchurch submitted fraudulent PPP loan applications on behalf of several businesses, including:  Opportunity, Inc.; Economic Empowerment Wisconsin; One Red Feather; Madison Alliance for Black Economic Empowerment; Young, Gifted, and Black; and a sole proprietorship. 

In these PPP loan applications, Upchurch falsely claimed that his businesses earned hundreds of thousands of dollars in revenue, and paid employees tens of thousands of dollars in payroll per month.  Upchurch also provided lenders with forged payroll reports and tax forms to corroborate his false statements.  Evidence presented at trial proved that none of Upchurch’s companies formally employed anyone besides Upchurch, and none of the companies had the revenue necessary to cover the inflated claimed payroll. 

In total, Upchurch stole $406,211 and attempted to steal an additional $400,378 in PPP loan proceeds.  Upchurch also laundered a portion of his fraudulently obtained PPP funds when he purchased $19,000 worth of Bitcoin.

At sentencing, Judge Conley explained that Upchurch repeatedly lied on documents to fraudulently obtain PPP funds. Judge Conley also noted that, had the lenders not stopped Upchurch’s applications, the PPP would have incurred additional loss. 

This case was investigated by the Internal Revenue Service, Federal Bureau of Investigation, and the Small Business Administration, Office of Inspector general. The prosecution is being handled by Assistant U.S. Attorneys Chadwick M. Elgersma and William M. Levins.

MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced today that Christa Johnson, 57, Cambria, Wisconsin, pleaded guilty and was sentenced in U.S. District Court in Madison, Wisconsin by U.S. District Judge James D. Peterson.  Judge Peterson ordered Johnson to serve one year in prison and pay a $25,000 fine. She was also ordered to pay $326,905 in restitution to the IRS, which she paid immediately.

On June 16, 2022, a federal grand jury sitting in Madison, Wisconsin returned a 17-count indictment against Johnson, charging her with seven counts of withholding income taxes and payroll taxes from her employees and not paying the taxes over to the IRS, nine counts of not paying the employer's share of employment taxes, and one count of obstruction of IRS collection efforts.

Johnson owned Johnson Sausage Shoppe, Inc. (JSS) which operated as a meat processing plant, grocery store, and catering business in Rio, Wisconsin since 1996.  As President of JSS, Johnson was responsible for all aspects of JSS's business operations, including accounting, finance, banking, payroll, hiring and firing of employees, paying bills, paying taxes, and filing Forms 1120-S, 941, and 940 with the IRS. 

The indictment alleged that Johnson failed to timely file quarterly employment tax returns (Form 941) for JSS, and pay the employment taxes, starting with the first quarter of 2013 through the fourth quarter of 2016. During that time span, JSS paid $1,496,524.69 in wages and withheld from those wages FICA taxes and the employee's income taxes, which totaled $211,337.32, none of which was paid over to the IRS.  Johnson also failed to pay to the IRS the employer's matching share of FICA taxes, which totaled $111,137.86, and federal unemployment taxes which totaled $4,430.54, for the same time period. In total, JSS owed $326,905 in unpaid taxes to the IRS.

At today's hearing, Johnson pleaded guilty to one count of not paying over the employee tax withholdings for the third quarter of 2016, but agreed the total tax loss of the scheme amounted to $326,905.

In imposing the one-year prison term, Judge Peterson told Johnson that her conduct was serious, not only in terms of a large tax amount due, but also because the crime took place over a long period of time and she engaged in a pattern of defiance with the IRS for a long time frame. Judge Peterson noted that numerous individuals gave Johnson repeated warnings that she was in violation of the law, but Johnson ignored these warnings, and chose to defy her tax obligations from 2013 through 2016.  As a result, Judge Peterson stated that a prison term was necessary to punish her and provide specific deterrence so that she would not repeat this conduct. Judge Peterson also noted that a prison term was necessary to provide a general deterrence message to other employers so that they know if they withhold income taxes and employment taxes from their employee's wages and do not pay it over to the IRS, they will be held accountable, and will go to prison.

The charges against Johnson were the result of an investigation conducted by IRS Criminal Investigation.  Assistant U.S. Attorney Daniel Graber prosecuted this case. 

MADISON, WIS. - Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that James Canfield, 74, Plover, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 8 months in federal prison for aiding in the preparation of false tax returns filed with the Internal Revenue Service.  Canfield pleaded guilty to this charge on January 4, 2022. Canfield also will be permanently prohibited by the IRS from preparing or filing any tax returns for third parties.

Canfield owned and operated Advanced Accounting Concepts, Inc., a business located in Plover.  As part of his business, Canfield prepared tax returns for third parties in exchange for a fee.  Between 2013 and 2018, Canfield prepared and electronically submitted tax returns to the IRS on behalf of clients with both exaggerated, and in some instances, fabricated business expenses resulting in unjustified deductions for the business use of the clients’ homes.  This false information fraudulently reduced the amount of taxes his clients owed. Despite being told by clients that they primarily used their homes as their personal residence, Canfield often attributed 100% of their home for business, then took ordinary home expenses as deductible business expenses.

Judge Peterson noted that although Canfield did not directly profit financially from the fraudulent refunds or lower taxes paid by clients, he knowingly engaged in preparing the false returns to generate repeat business from the clients and expand his client base through favorable client recommendations. In choosing a sentence, Judge Peterson considered Canfield’s age and health, as well as the fact that Canfield’s conduct was “sustained and repeated.” Canfield had previously been fined on two separate occasions by the IRS for preparing returns with unjustified business expenses and claiming personal living expenses as business deductions.  After the second time Canfield was fined, in 2012, IRS revenue agents met with him and explained in detail how deductions he was submitting were unlawful under IRS regulations.  Nonetheless, Canfield continued to prepare returns using the same false deductions for the next six years.

 The charge against Canfield was the result of an investigation conducted by IRS Criminal Investigation.  The prosecution of the case has been handled by Assistant U.S. Attorneys Robert A. Anderson and Meredith P. Duchemin.