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Minnesota Public Radio has this decidedly different take on the matter, but what is important is that they confirm federal involvement:
The searches were led by the Ramsey County Sheriff's office. Deputies coordinated searches with the Minneapolis and St. Paul police departments and the Federal Bureau of Investigation.
http://minnesota.publicradio.org/display/web/2008/08/30/more_raids/?refid=0
to see about the dire conspiracy, and quotes from the professor who wrote the federal conspiracy law (is he any relation to Victoria Toensig?).