Western District of Wisconsin: Grand Jury Returns Indictments (November 9, 2022)

Summary

A press release of the U.S. Attorney's Office for the Western District of Wisconsin, dated Wednesday, November 9, 2022, listing indictments returned by a federal grand jury sitting in Madison. It states that Olivia Spellman is charged with seven counts of mail fraud; the indictment alleges that from August 2020 to April 2021 Spellman used other people's names and her own to collect unemployment insurance benefits authorized by the CARES Act, with an attempted loss of $1,026,508 and an actual loss of $506,097. Sharon Johnson is charged with two counts of wire fraud and one count of money laundering; the indictment alleges Johnson received approximately $109,773 from two PPP loans and an EIDL for Gray Enterprises, LLC. The release also lists child pornography, methamphetamine and illegal reentry indictments, and states that a charge is merely an accusation.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Cite this document

“Western District of Wisconsin: Grand Jury Returns Indictments (November 9, 2022).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-11-17-grand-jury-returns-indictments-usao-wd-wi-11-09-2022-60800076f7/, SHA-256 a8560ed1ebea3c1fea73dc5b5cdf6a737da2d41d3a9e50a690b095cf243c9281.

Full text

Department of Justice

U.S. Attorney’s Office

Western District of Wisconsin

FOR IMMEDIATE RELEASE Wednesday, November 9, 2022

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

Janesville Woman Charged with CARES Act Fraud Scheme

Olivia Spellman, 35, Janesville, Wisconsin, is charged with seven counts of mail fraud. The
indictment alleges that from August 2020 to April 2021, Spellman engaged in a fraud scheme to
collect unemployment insurance (UI) benefits authorized by the Coronavirus Aid, Relief, and
Economic Security Act. The indictment alleges that Spellman used the names of other individuals, as
well as her own name, to obtain UI benefits from multiple state workforce agencies in Alabama,
California, Colorado, Illinois, Indiana, Massachusetts, Nevada, Ohio, Texas, and Wisconsin. The
indictment alleges that she attempted to cause a fraud loss amount of $1,026,508 and caused an
actual fraud loss amount of $506,097 in requests and payments for unauthorized UI benefits from
the aforementioned states.

If convicted, Spellman faces a maximum penalty of 20 years in federal prison on each count. The
charges against her are the result of an investigation by the U.S. Postal Inspection Service and the
U.S. Department of Labor - Office of Inspector General. Assistant U.S. Attorney Daniel Graber is
handling the prosecution.

Madison Woman Charged with Wire Fraud & Money Laundering Related to CARES Act
Loans

Sharon Johnson, 54, Madison, Wisconsin, is charged with two counts of wire fraud and one count of
money laundering related to applications for Payroll Protection Program (PPP) loans available to
small businesses for job retention and other expenses, and for an Economic Injury Disaster Loan
(EIDL) for small businesses that experienced substantial financial hardship due to the COVID-19
pandemic, both authorized by the Coronavirus Aid, Relief, and Economic Security Act.

The indictment alleges that Johnson applied for and received two PPP loans and an EIDL for Gray
Enterprises, LLC, a company incorporated by Johnson in 2018. The indictment alleges that Johnson
provided fraudulent information in the applications concerning the number of people employed by
Gray Enterprises and the company’s payroll and other expenses. The indictment alleges that the
Internal Revenue Service has no records showing Gray Enterprises reported business income or
employed any people in the tax years 2018 through 2020. The indictment alleges that Johnson
received approximately $109,773 as a result of the fraudulent applications and that she used some of
these proceeds for personal expenses.

If convicted, Johnson faces a maximum penalty of 20 years in federal prison on each wire fraud
count and 10 years on the money laundering count. The charges against her are the result of an
investigation by IRS Criminal Investigation, the Small Business Administration – Office of Inspector
General, and the Federal Bureau of Investigation. Assistant U.S. Attorney Chadwick Elgersma is
handling the prosecution.

Sun Prairie Man Charged with Producing Child Pornography

Robert D. Sutton, Jr., 51, Sun Prairie, Wisconsin, is charged with four counts of producing child
pornography and four counts of committing these felony offenses involving a minor while he was an
individual required by federal or other law to register as a sex offender. The indictment alleges that
on four occasions between March 2019 and May 2021, Sutton used a minor to engage in sexually
explicit conduct for the purpose of producing a visual depiction of the conduct. Specifically, the
indictment alleges that Sutton used a cellular telephone to produce videos of a minor engaged in
sexually explicit conduct.

If convicted, Sutton faces a mandatory minimum of 15 years and a maximum of 30 years in federal
prison on each production charge, and a mandatory penalty of 10 years on each charge of committing
a felony offense involving a minor while he was an individual required to register as a sex offender.

The charges against Sutton are the result of an investigation by the Sun Prairie Police Department
and the Wisconsin Department of Justice Division of Criminal Investigation, with assistance from
the Dane County District Attorney’s office. Assistant U.S. Attorney Elizabeth Altman is handling the
prosecution.

Trempealeau County Man Charged with Producing Child Pornography

Stephen Hans Jenkins, 37, Trempealeau, Wisconsin, is charged with three counts of producing child
pornography and two counts of committing a felony offense involving a minor while he was an
individual required by federal or other law to register as a sex offender. The indictment alleges that
on December 31, 2020, Jenkins used a minor to engage in sexually explicit conduct for the purpose
of producing two visual depictions of the conduct and that the visual depictions were transferred in
interstate commerce from Nevada or Utah to Wisconsin. The indictment also alleges that on July 4,
2017, he used a minor to engage in sexually explicit conduct for the purpose of producing a visual
depiction of the conduct and that the visual depiction was transferred in interstate commerce from
Utah to Wisconsin.

If convicted, Jenkins faces a mandatory minimum of 15 years and a maximum of 30 years in federal
prison on each production charge, and a mandatory penalty of 10 years on each charge of committing
a felony offense involving a minor while he was an individual required to register as a sex offender.

The charges against Jenkins are the result of an investigation by the Federal Bureau of Investigation,
Village of Trempealeau Police Department, Trempealeau County Sheriff’s Office, Wisconsin
Department of Justice Division of Criminal Investigation, and the Ogden City (Utah) Police
Department. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.

Madison Man Charged with Distributing Methamphetamine

Matthew J. Yancey, 32, Madison, Wisconsin, is charged with five counts of distributing
methamphetamine. The indictment alleges that Yancey distributed methamphetamine on five
occasions in June and July 2022, and that one of the distributions involved 50 grams or more of
methamphetamine.

If convicted, Yancey faces a mandatory minimum penalty of 5 years and a maximum of 40 years in
federal prison on the count alleging the distribution of 50 grams or more of methamphetamine, and
a maximum of 20 years on each of the other four distribution counts. The charges against him are
the result of an investigation by the Madison Police Department. Assistant U.S. Attorney Kathryn
Ginsberg is handling the prosecution.

California Woman Charged with Attempting to Possess Methamphetamine for
Distribution

Heather Carter, 49, Santa Monica, California, is charged with attempting to possess 50 grams or
more of methamphetamine with intent to distribute. The indictment alleges that she attempted to
possess the methamphetamine on September 23, 2022.

If convicted, Carter faces a mandatory minimum penalty of 5 years and a maximum of 40 years in
federal prison. The charge against her is the result of an investigation by the Crawford and Vernon
County Sheriffs’ Offices, West Central Metropolitan Enforcement Group, Wisconsin Department of
Justice Division of Criminal Investigation, U.S. Postal Inspection Service, and Drug Enforcement
Administration. Assistant US. Attorney Chadwick Elgersma is handling the prosecution.

Mexican Citizen Charged with Illegally Reentering U.S.

Obed Sargento-Cruz, 30, a citizen of Mexico found in Portage County, Wisconsin, is charged with
reentering the United States after previously being deported and removed. The indictment alleges
that he was found in the United States on November 4, 2022.

If convicted, Sargento-Cruz faces a maximum penalty of 20 years in federal prison. The charge
against him is the result of an investigation by U.S. Immigration and Customs
Enforcement. Assistant U.S. Attorney Aaron Wegner is handling the prosecution.
Topic(s):
Coronavirus
Project Safe Childhood
Drug Trafficking
Immigration
Component(s):
USAO - Wisconsin, Western
Updated November 10, 2022

File and source

File: 2022-11-17-Grand-Jury-Returns-Indictments-USAO-WD-WI-11-09-2022.pdf
Size: 281,554 bytes
SHA-256: a8560ed1ebea3c1fea73dc5b5cdf6a737da2d41d3a9e50a690b095cf243c9281
Our copy: 2022-11-17-Grand-Jury-Returns-Indictments-USAO-WD-WI-11-09-2022.pdf
Original: No public link identified.