Key leader of cell phone robbery ring pleads guilty to racketeering

Aaron Tracey Johnson, 26, admitted participating in a lead role of an ongoing enterprise to target victims in downtown Minneapolis

A key leader of a highly-organized criminal enterprise that operated a cell phone theft ring in downtown Minneapolis for over a year pled guilty to racketeering (RICO) in Hennepin County District Court, Hennepin County Attorney Mary Moriarty announced today. Aaron Tracey Johnson, 26, admitted participating in the enterprise and implicated several other top members of the ring. The agreement calls for Mr. Johnson to serve 94 months in prison after a sentencing hearing on March 7.

“People have to feel and be safe in our county,” Moriarty said. “This sophisticated operation targeted unsuspecting victims enjoying a night out and contributed to instilling a culture of fear that threatens the vibrancy of our community. I am grateful for the groundbreaking and extensive investigation by the Minneapolis Police Department and the Minnesota Bureau of Criminal Apprehension and the highly-skilled team in our office that partnered closely with them and is prosecuting the cases.”

Twelve people in all have been charged in connection with their roles in this enterprise. According to the complaint, from June 2021 through May 2022, those twelve individuals operated as an enterprise to systematically steal cell phones, fraudulently transfer funds from the victims' phones to individuals associated with the theft ring, and then sell the stolen cell phones locally and internationally.

The defendants often targeted intoxicated individuals in downtown Minneapolis at bar close. In some circumstances, the defendants would take phones from the victims by force or intimidation. At other times, the defendants would approach victims in a friendly manner and ask the them for their phone so that the defendant could add themselves to a social media platform. The defendant would make sure the victim unlocked their phone before handing the phone to another defendant in the illegal operation who would transfer money from the victim's accounts to the defendant's accounts using mobile payment services such as Venmo, Zelle, and Coinbase.

Through months of dedicated work by law enforcement, it was determined that the defendants would funnel phones to one individual who would sell the phones stolen through this scheme to people or institutions locally and in China. Nearly 50 shipments of phones were sent to Hong Kong, while another 30 shipments were sent to the address of a Minneapolis hotpot restaurant.

As a part of their coordinated scheme, the thefts and robberies have resulted in losses estimated to be over $300,000:

Actual cash: $159,797.33
Cryptocurrency: $85,283.34
Value of stolen phones (estimated): $25,267.00
Attempted cash: $32,086.07

The complaint outlines 33 distinct incidents that were organized by the enterprise. The defendants are linked to each other in many ways:

Multiple pairs of the defendants share an address.
Two of the defendants are in a romantic relationship.
Multiple pairs of defendants are related to one another, including two that are cousins and two that are a father and son.