Central District of Illinois
Press releases recorded for this federal judicial district.
Quad Cities Real Estate Developer Sentenced to Six Years in Prison for Defrauding InvestorsRead the Press Release
ROCK ISLAND, Ill. – A Rock Island, Ill., businessman, Todd B. Raufeisen, has been sentenced to 72 months imprisonment for defrauding investors in his land development and management projects of approximately $1.7 million. In May 2017, Raufeisen, 56, entered his guilty pleas to one count each of wire fraud and money laundering. U.S. District Judge Sara Darrow also sentenced Raufeisen to three years of supervised release following release from prison and ordered him to pay over $1.72 million in restitution to his 22 victims of fraud. Raufeisen was ordered to report to the federal Bureau of Prisons on Oct. 23, to begin serving his sentence.
In court documents and statements, Raufeisen admitted that from 2010 to August 2016, he engaged in a scheme that defrauded approximately 22 investors in his development projects and resulted in a loss of approximately $1.7 million. Raufeisen engaged in business under various business names, including RDC Hotel Solutions.
As part of the scheme, Raufeisen promised prospective investors a higher rate of interest than conventional, insured investments and short turnarounds on return of the principle and interest. In exchange for the money invested, Raufeisen promised certain investors that the money would be placed in escrow until needed, would only be used for specific development or management projects, and, if unused, the money would be returned to the investor. In fact, Raufeisen used the investors’ money for personal expenses and to pay previous investors to whom he was indebted.
Further, Raufeisen provided certain investors with promissory notes that promised repayment of invested principle and interest. The notes were purportedly signed and guaranteed by persons who knew nothing of the promissory notes and had not guaranteed repayment to the investors. In fact, Raufeisen admitted that he forged the signatures on the promissory notes.
The Internal Revenue Service Criminal Investigation Division; Federal Bureau of Investigation; and, the Office of the Illinois Secretary of State conducted the investigation. Assistant U.S. Attorney Donald Allegro prosecuted the case on behalf of the government.
Former President of UAW Local 2419 Danville Sentenced to Prison for Embezzling Union FundsRead the Press Release
PEORIA, Ill. – A former president of United Auto Workers Local 2419, in Danville, Ill., Bob Buford, was sentenced today to a term of 21 months in federal prison for mail fraud related to embezzling union funds. Chief U.S. District Judge James E. Shadid sentenced Buford, 54, of the 100 block of Shasta Drive, Danville, Ill., in Peoria. Judge Shadid ordered Buford to pay restitution in the amount of $129,723. Buford was allowed to self-report on Dec. 5, 2017, to the federal Bureau of Prisons to begin serving his sentence. He was ordered to serve a three-year term of supervised release following his release from prison. Buford had pleaded guilty to the mail fraud charge on March 9, 2017.
According to court documents, Buford served as the president of UAW Local 2419 in Danville from January 2007 until October 2011, while he was employed as a welder at Freight Car America. During that time, the union regularly collected dues and fees from its members’ paychecks and deposited those funds into accounts maintained by Buford. While he served as president of the union, Buford made cash withdrawals and issued cashier’s checks from the accounts for his own personal benefit. Buford then covered up his scheme by mailing false annual reports to the U. S. Department of Labor. The false reports underreported the amount of dues and fees collected from union members, inflated the balance of the union’s accounts, and omitted his personal withdrawals from the accounts.
The investigation was conducted by the U.S. Department of Labor, Office of Inspector General. The case was prosecuted by Supervisory Assistant U.S. Attorney Eugene L. Miller.
Indiana Gospel Singer Sentenced to 60 Years for Sexual Exploitation of a Minor and Distribution of Child PornographyRead the Press Release
WASHINGTON – A Muncie, Indiana man was sentenced today to serve 60 years in prison for sexual exploitation of a minor and distribution of child pornography, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Patrick D. Hansen of the Central District of Illinois.
Shawn Shannon, 45, a traveling gospel singer, was sentenced today by U.S. District Judge Colin S. Bruce of the Central District of Illinois, who also ordered Shannon to pay $1,387 in restitution to the victim and serve a lifetime of supervised release following his release from prison. Shannon was convicted on July 27, 2016, after a three-day jury trial of 19 counts of sexual exploitation of a minor and one count of distribution of child pornography.
According to evidence presented at trial, Shannon lured a 13-year-old boy to a hotel in Decatur, Illinois, and directed him to pose for a series of sexually explicit photos which Shannon took with his iPhone 5s. The evidence showed that Shannon attempted to delete evidence from his iPhone 5s including thousands of text messages and contacts after the victim’s mother learned of Shannon’s conduct and confronted him. Expert testimony presented at trial revealed that forensic examiners were able to recover these text messages which demonstrated Shannon’s nefarious intentions with the victim. Shannon also engaged in sexual contact with another minor boy and took similar photos, according to trial evidence.
Shannon was arrested on April 15, 2015, and was remanded to the custody of the U.S. Marshals Service pending trial.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Decatur Police Department investigated the case. This case is being prosecuted by Trial Attorney Elly M. Peirson of the Child Exploitation and Obscenity Section (CEOS) of the Justice Department’s Criminal Division, and Maureen C. Cain, a former CEOS Trial Attorney who is now an Assistant United States Attorney at the U.S. Attorney’s Office for the Eastern District of Virginia.
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. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals 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.
Indiana Gospel Singer Sentenced to 60 Years for Sexual Exploitation of a Minor and Distribution of Child PornographyRead the Press Release
A Muncie, Indiana man was sentenced today to serve 60 years in prison for sexual exploitation of a minor and distribution of child pornography, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Patrick D. Hansen of the Central District of Illinois.
Shawn Shannon, 45, a traveling gospel singer, was sentenced today by U.S. District Judge Colin S. Bruce of the Central District of Illinois, who also ordered Shannon to pay $1,387 in restitution to the victim and serve a lifetime of supervised release following his release from prison. Shannon was convicted on July 27, 2016, after a three-day jury trial of 19 counts of sexual exploitation of a minor and one count of distribution of child pornography.
According to evidence presented at trial, Shannon lured a 13-year-old boy to a hotel in Decatur, Illinois, and directed him to pose for a series of sexually explicit photos which Shannon took with his iPhone 5s. The evidence showed that Shannon attempted to delete evidence from his iPhone 5s including thousands of text messages and contacts after the victim’s mother learned of Shannon’s conduct and confronted him. Expert testimony presented at trial revealed that forensic examiners were able to recover these text messages which demonstrated Shannon’s nefarious intentions with the victim. Shannon also engaged in sexual contact with another minor boy and took similar photos, according to trial evidence.
Shannon was arrested on April 15, 2015, and was remanded to the custody of the U.S. Marshals Service pending trial.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Decatur Police Department investigated the case. This case is being prosecuted by Trial Attorney Elly M. Peirson of the Child Exploitation and Obscenity Section (CEOS) of the Justice Department’s Criminal Division, and Maureen C. Cain, a former CEOS Trial Attorney who is now an Assistant United States Attorney at the U.S. Attorney’s Office for the Eastern District of Virginia.
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. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals 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.
Rantoul Man Charged with Distribution of Child Pornography,Possession of Prepubescent Child PornographyRead the Press Release
URBANA, Ill. – A Rantoul, Ill., man, Robert A. Decker, 56, of the 400 Block of S. Steffler Street, is scheduled to appear in federal court in Urbana on Sept. 8, 2017, for arraignment on charges of distribution of child pornography and possession of prepubescent child pornography.
The grand jury returned the two-count indictment on Sept. 5, 2017. The indictment alleges that Decker distributed images of child pornography using a facility of interstate or foreign commerce on or about June 6, 2017. The indictment also alleges that on July 17, 2017, Decker possessed computer processing units, hard drives, mobile devices and other digital storage materials, which contain images and videos of child pornography involving a prepubescent minor or a minor who had not attained twelve years of age.
If convicted, the statutory maximum penalty for each count of distribution and possession of prepubescent child pornography is 20 years in prison, and a fine of up to $250,000.
Decker was arrested on Aug. 11, 2017, in the Eastern District of Arkansas after being charged in a criminal complaint in the Central District of Illinois. During a court appearance on Aug. 14, 2017, before U.S. Magistrate Judge Joe J. Volpe, in Little Rock, Ark., Decker was ordered detained in the custody of the U.S. Marshals Service.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by the Champaign County Sheriff’s Office; the Urbana Police Department; and U.S. Immigration and Customs Enforcement Homeland Security Investigations.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The 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. Led by U.S. Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals 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.projectsafechildhood.gov.
Ohio Man Charged with Transporting Minor to Engage in Criminal Sexual Activity, Sexual Exploitation of a MinorRead the Press Release
ROCK ISLAND, Ill. – An October trial date has been scheduled for an Ohio man charged with transporting a minor across state lines in December 2016, to engage in criminal sexual activity. Andrew Stone, 32, of Rocky River, Ohio, is also charged with sexual exploitation of a minor.
Stone appeared in federal court in Rock Island today for arraignment. A trial date of Oct. 30, 2017, was scheduled, and Stone was remanded to the custody of the U.S. Marshals Service pending a detention hearing scheduled on Sept. 18, 2017.
Stone was arrested in Ohio on July 28, 2017, and charged in a federal criminal complaint filed under seal on July 26, in the Central District of Illinois. Stone made his initial appearance in the Northern District of Ohio on July 31, before U.S. Magistrate Judge David A. Ruiz. Stone was ordered to remain detained in the custody of the U.S. Marshals Service pending his transportation to central Illinois.
The grand jury returned its indictment of Stone on Aug. 22. The indictment alleges that Stone transported a minor across state lines on or about Dec. 20, 2016, with the intent to engage in sexual activity that is criminalized by state law. In addition, Stone allegedly produced visual depictions of sexually explicit conduct involving a minor, and transported those visual depictions across state lines.
The affidavit filed in support of the criminal complaint alleges that Stone traveled from Ohio to Illinois in December 2016, to meet a minor female he met using an online application known as “Whisper.” Stone allegedly met and drove the girl from her home in Illinois to a hotel in Le Claire, Iowa, where he engaged in sexual acts with the minor and recorded some of the acts on his cell phone.
The case is being prosecuted by Assistant U.S. Attorney Meredith DeCarlo. The charges are the result of an investigation by the U.S. Secret Service, Illinois State Police, the Moline Police Department, and the Ohio Internet Crimes Against Children Task Force.
This is an ongoing investigation by the U.S. Secret Service; anyone with information about the defendant, Andrew Stone, is encouraged to call 217-726-8453.
If convicted, the statutory minimum penalty for transportation of a minor to engage in criminal sexual activity is ten years and up to life in prison. For sexual exploitation of a minor, the minimum prison term is 15 years to 30 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Champaign Man Indicted on Child Pornography ChargesRead the Press Release
URBANA, Ill. – A Champaign, Ill., man, Jaime Breckenridge, 33, of the 2200 Block of S. First Street, is scheduled to appear in federal court in Urbana on Sept. 13, 2017, for arraignment on charges of distribution and possession of child pornography.
The grand jury returned the indictment on Sept. 5, that alleges Breckenridge distributed child pornography on Sept. 27, 2016, using a facility of interstate or foreign commerce. The indictment also alleges that on July 28, 2017, Breckenridge possessed computer processing units, hard drive and other digital storage materials, which contain images and videos of child pornography.
Breckenridge was arrested on Aug. 5, 2017, in Marion, Ill., after being charged in a federal criminal complaint with the same offenses. During a court appearance on Aug. 7, 2017, before U.S. Magistrate Reona J. Daly, in Benton, Ill., Breckenridge was ordered detained in the custody of the U.S. Marshals Service.
If convicted, the statutory maximum penalty for distribution of child pornography is 20 years in prison, and a fine of up to $250,000; the penalty for possession of child pornography is up to 10 years in prison, and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by the Federal Bureau of Investigation.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The 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. Led by U.S. Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals 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.projectsafechildhood.gov.
Former Executive Director Pleads Guilty to Defrauding Kankakee Valley Park District, Park FoundationRead the Press Release
URBANA, Ill. – Roy Collins, former executive director of the Kankakee Valley Park District, entered pleas of guilty this afternoon to defrauding the park district and a related not-for-profit organization for his personal benefit. Collins appeared before U.S. District Judge Colin S. Bruce, who scheduled sentencing on Jan. 19, 2018. Collins was allowed to remain on bond.
Collins, 47, of Kankakee, Ill., was employed as the Executive Director of the Kankakee Valley Park District from 2011 to 2016. Collins also served as treasurer for a related not-for-profit organization known as the Kankakee Valley Park Foundation.
Collins pled guilty to using park district equipment, labor, and funds, and other park district and foundation resources to build and maintain a pond on his personal property. Collins admitted that he issued a park foundation check in the amount of $3,008., to purchase a tarp or pond liner, and that he kept and used a mower that belonged to the park district at his personal property.
Collins also admitted that he converted park district and park foundation funds intended for annual “BBQ Fest” events to his personal use. The scheme included his demand and receipt of approximately $6,000 from an individual hired in connection with the 2014 and 2015 BBQ Fests. In addition, Collins admitted that he used the park district’s credit card to make unauthorized personal purchases.
The charges are the result of investigation by the Illinois State Police, the Federal Bureau of Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Katherine V. Boyle.
Each count of wire and mail fraud (one count each) carries a maximum statutory penalty of 20 years in prison and fines of up to $250,000. The maximum statutory penalty for each offense is prescribed by Congress and is provided for informational purposes, as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Former School Janitor in Hancock County Indicted on Child Sexual Exploitation, Pornography ChargesRead the Press Release
ROCK ISLAND, Ill. – Frank Marion Stout, Jr., who worked as a custodian at Warsaw High School, is scheduled to appear in federal court on Sept. 5, for arraignment on child sexual exploitation and child pornography charges. This week, a grand jury returned its indictment against Stout, 45, of Elvaston, Ill., and charged him with two counts of sexual exploitation of minors, and with receiving and possessing child pornography. The indictment alleges that the offenses occurred from 2015 through July 2017.
Stout was arrested on July 26, and previously charged in a criminal complaint with receiving child pornography. During a detention hearing on Aug. 8, 2017, before U.S. District Judge Sara L. Darrow, in Rock Island, Stout was ordered released on a $250,000 bond.
The case is being prosecuted by Assistant U.S. Attorney Meredith DeCarlo. The charges are the result of an investigation by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Hancock County Sheriff’s Office.
Members of the public are encouraged to report suspected child predators and any suspicious activity through the ICE HSI toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423). This tip line is staffed around-the-clock by investigators.
If convicted, the statutory minimum penalty for each count of sexual exploitation of minors (two counts charged) is 15 years to 30 years in prison. The statutory minimum penalty for receiving child pornography is five years and up to 20 years in prison. For possession of child pornography, the penalty is up to 20 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Geneseo Man Pleads Guilty to Stolen Valor OffensesRead the Press Release
ROCK ISLAND, Ill. – William R. Jones, 67, of Geneseo, Ill., entered pleas of guilty today to theft of government funds and making false statements about his military service to the U.S. Department of Veterans Affairs, announced Patrick D. Hansen, Acting U.S. Attorney for the Central District of Illinois. Sentencing has been scheduled for Dec. 12, 2017.
During court hearings and according to court documents, the government established that Jones entered service in the armed forces of the United States in 1971 via the Air National Guard. Thereafter, Jones served in various Reserve or National Guard components. Jones retired from the military in 2002 as a Lieutenant Colonel. At no time did Jones ever serve in the Southeast Asia or Republic of Vietnam (RVN) theater of combat operations or in any other theater of combat operations.
In 2003, after retirement, Jones sought disability benefits, based on claims in statements to the VA that he was suffering from post-traumatic stress disorder attendant to combat service in the RVN. Jones falsely claimed that he had been a Special Operations air crewman on an AC-130 Spectre gunship and was shot down and wounded. Jones claimed that he had been awarded a Bronze Star Medal with V for Valor and a Purple Heart for RVN service. The VA denied the claims after checking Jones’ military service records and determining that he was never in RVN.
Jones, however, continued to press for claims for disability based on combat service, submitting a false DD-214 to the VA and causing the American Legion and public officials to petition or write the VA in support of the defendant based on Jones’s false representations. As a result of these false representations, Jones received $71,472 from the VA for combat-related disability.
On Oct. 31, 2013, Jones caused the American Legion to submit to the VA on his behalf a new claim with supporting documents that included a copy of an article from the Geneseo, Ill., newspaper. The article was based on false information provided by Jones about his purported combat service, including copies of several false certificates for combat awards, a false certificate from MACV SOG (Vietnam Special Operations Group) attesting to Jones’s purported SOG service, a false certificate representing that “Staff Sergeant Jones” had received an Enlisted Aircrew badge in November 1971, and a letter dated 2008 from then-U.S. Senator Barack Obama stating that the defendant was a RVN veteran.
In addition, on July 16, 2013, Jones submitted to the office of U.S. Senator Richard J. Durbin a “Privacy Act Release” form that contained false information indicating that Jones had served in combat in Vietnam in 1972; that Jones had been assigned to Special Operations in Vietnam; and, that Jones was shot down in enemy territory but rescued by U.S. Marines three weeks later. In fact, as Jones well knew, he never served in Vietnam; was never assigned to Special Operations in Vietnam, and, was never shot down and rescued by U.S. Marines. As a result of these false statements to Senator Durbin, the Senator conveyed the false statements to the VA in support of the defendant’s claim for disability benefits.
The statutory maximum penalty for theft of government funds (one count) is 10 years in prison and a fine of up to $250,000. The maximum penalty for making false statements is five years in prison and a fine of up to $250,000. Jones also may be ordered to pay restitution to the VA.
The case is being prosecuted by Assistant U.S. Attorney Don Allegro. The charges are the result of an investigation by the Office of the Inspector General of the U.S. Department of Veterans Affairs.
Jury Convicts McLean Man for Credit Union RobberyRead the Press Release
PEORIA, Ill. – A jury deliberated for approximately one hour yesterday, before returning a verdict of guilty against Scott Books, 34, of McLean, Ill., for the July 2016 robbery of the Land of Lincoln Credit Union in Normal, Ill.
During the trial, which began on Aug. 7, the government presented evidence that Books had cashed bad checks at the credit union in the months preceding the robbery. On July 28, 2016, Books, wearing gloves and a partial mask and wielding what appeared to be a firearm, robbed two tellers before fleeing in a grey Buick SUV. A teller immediately recognized the robber as Scott Books. A matching vehicle was spotted at Books’ residence and a search warrant was executed at the residence where matching shoes and gloves were recovered. Follow-up investigation conducted by the FBI and the Normal Police Department revealed that Books had text messaged a friend the day of the robbery, “What bank should I rob today?”
The case is being prosecuted in federal court by Assistant U.S. Attorneys Adam C. Korn and Paul B. Morris. The Normal Police Department and FBI conducted the investigation with the assistance of the Village of McLean Police Department.
Sentencing has been scheduled on Dec. 6, 2017. Books faces a statutory maximum penalty of up to 20 years in prison. Books remains in the custody of the U.S. Marshals Service.
Former Employee of U.S. Army Corps of Engineers in Afghanistan Pleads Guilty to Soliciting Approximately $320,000 in Bribes from ContractorsRead the Press Release
WASHINGTON – A former employee of the U.S. Army Corps of Engineers (USACE) based in Afghanistan pleaded guilty today to soliciting approximately $320,000 in bribes from Afghan contractors in return for his assistance in U.S. government contracts.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney Patrick D. Hansen of the Central District of Illinois; Special Agent in Charge Sean Cox of the FBI’s Springfield Field Office; Special Inspector General John F. Sopko for Afghanistan Reconstruction; Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit (MPFU); and the Defense Criminal Investigative Service’s (DCIS) made the announcement.
Mark E. Miller, 48, of Springfield, Ill., was charged in an Information filed on July 18, in the Central District of Illinois with one count of seeking and receiving bribes. He pleaded guilty before U.S. Magistrate Judge Tom Schanzle-Haskins in Springfield, Illinois. Miller is scheduled to be sentenced on November 30, by U.S. District Judge Richard H. Mills.
During the hearing, Miller admitted that he worked for the USACE from 2005 until 2015, including in Afghanistan from 2009 to 2012. During that time, Miller maintained a residence in Springfield. From February 2009 to October 2011, Miller was assigned to a military base, Camp Clark, in eastern Afghanistan. While in Afghanistan, Miller was the site manager and a contracting officer representative for a number of construction projects.
Miller further admitted that on Dec. 10, 2009, the USACE awarded a contract worth approximately $2.9 million to an Afghan construction company for the construction of a road from eastern Afghanistan to the Pakistani border. This contract later increased in value to approximately $8,142,300. Miller admitted that he oversaw the work of the Afghan company on this road project, including verifying that the company performed the work called for by the contract and authorizing progress payments to the company by the USACE.
Miller admitted that, in the course of overseeing the contract with the Afghan company, he solicited approximately $280,000 in bribes from the owners of the company, in return for assisting the company in connection with the road project, including making sure the contract was not terminated. Miller further admitted that, after the contract was no longer active, he solicited an additional $40,000 in bribes in return for the possibility of future contract work and other benefits.
This matter was investigated by the FBI, DCIS, SIGAR and Army CID-MPFU. Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Gregory K. Harris of the Central District of Illinois are prosecuting the case.
Peoria County Man Pleads Guilty to Concealing Assets in BankruptcyRead the Press Release
PEORIA, Ill. - A Brimfield, Ill., man, Thomas L. Bledsoe, 52, today pled guilty to concealing insurance policies valued at more than $100,000 from the U.S. Trustee and creditors in his bankruptcy petition. Bledsoe entered his plea before U.S. District Judge Joe Billy McDade. Sentencing is scheduled on Nov. 22, 2017.
According to court documents and statements during today’s hearing, on Mar. 18, 2009, Bledsoe filed a voluntary petition under Chapter 13 of the U.S. Bankruptcy Code. On April 2, 2009, Bledsoe, a life insurance agent, filed a Schedule B form which required that he disclose any interest he owned in any insurance policies, to name the insurance company for each policy and to itemize the surrender or refund value of each policy, to which Bledsoe answered “none.”
On April 30, 2009, at a meeting of creditors, Bledsoe testified under oath that the voluntary petition and schedules were correct. After a creditor filed an objection, during a hearing on Oct. 26, 2009, Bledsoe testified that he owned a life insurance policy with a cash value of $5,000. Bledsoe subsequently amended the Schedule B form to indicate that he owned a single life insurance policy with a cash value of $3,000.
In fact, as Bledsoe admitted during today’s proceeding, he owned four life insurance policies, with a combined cash value of more than $50,0000, from Northwestern Mutual Insurance Company, and three life insurance policies, with a combined cash value of more than $57,000, from Canada Life Insurance Company. In addition, Bledsoe admitted he failed to disclose possession of three cashier’s checks totaling more than $65,000, and a 2005 Montesa motorcycle. Bledsoe also falsely stated that he had not received any money from the sale of his residence, when in fact, he had received money from the sale of the residence as part of his divorce, approximately two years prior to the bankruptcy proceeding.
The charges resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the U.S. Attorney for the Central District of Illinois. The charges were investigated by the U.S. Postal Inspection Service in collaboration with the Central Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. Assistant U.S. Attorney Gregory K. Harris is prosecuting the case.
“Together with Acting U.S. Attorney Hansen and our law enforcement partners, we will continue to pursue fraud and abuse in bankruptcy cases,” stated Nancy J. Gargula, U.S. Trustee for Southern Illinois, Central Illinois, and Indiana (Region 10). The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
The statutory maximum penalty for concealing assets in bankruptcy proceedings is up to five years in prison. The maximum statutory penalty is prescribed by Congress and is provided for informational purposes as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Kankakee Man Sentenced to Seven Years in Prison for Gun PossessionRead the Press Release
URBANA, Ill. - A Kankakee, Ill., man has been sentenced in federal court for illegal possession of a firearm by a felon. On July 24, U.S. District Judge Colin S. Bruce sentenced Brandon Shoffner to 84 months (7 years) in federal prison, to be followed by three years of supervised release. Shoffner, 29, of the 700 block of Hammes Ave., has been in law enforcement custody since his arrest on Aug. 13, 2016. Judge Bruce found that during his arrest, Shoffner struck an officer, a factor the court accepted to increase Shoffner’s sentencing guidelines.
On Feb. 24, 2017, Shoffner pled guilty to the indictment which charged him with possession of a SAR Arms 9mm handgun. At the time Shoffner possessed the gun, in August 2016, he had prior felony convictions in Kankakee County.
The case was investigated by the Kankakee Area Project Safe Neighborhoods Task Force, and prosecuted by Assistant U.S. Attorney Bryan D. Freres.
Former Employee of U.S. Army Corps of Engineers in Afghanistan Pleads Guilty to Soliciting Approximately $320,000 in Bribes from ContractorsRead the Press Release
A former employee of the U.S. Army Corps of Engineers (USACE) based in Afghanistan pleaded guilty today to soliciting approximately $320,000 in bribes from Afghan contractors in return for his assistance in U.S. government contracts.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney Patrick D. Hansen of the Central District of Illinois; Special Agent in Charge Sean Cox of the FBI’s Springfield Field Office; Special Inspector General John F. Sopko for Afghanistan Reconstruction; Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit (MPFU); and the Defense Criminal Investigative Service’s (DCIS) made the announcement.
Mark E. Miller, 48, of Springfield, Ill., was charged in an Information filed on July 18, in the Central District of Illinois with one count of seeking and receiving bribes. He pleaded guilty before U.S. Magistrate Judge Tom Schanzle-Haskins in Springfield, Illinois. Miller is scheduled to be sentenced on November 30, by U.S. District Judge Richard H. Mills.
During the hearing, Miller admitted that he worked for the USACE from 2005 until 2015, including in Afghanistan from 2009 to 2012. During that time, Miller maintained a residence in Springfield. From February 2009 to October 2011, Miller was assigned to a military base, Camp Clark, in eastern Afghanistan. While in Afghanistan, Miller was the site manager and a contracting officer representative for a number of construction projects.
Miller further admitted that on Dec. 10, 2009, the USACE awarded a contract worth approximately $2.9 million to an Afghan construction company for the construction of a road from eastern Afghanistan to the Pakistani border. This contract later increased in value to approximately $8,142,300. Miller admitted that he oversaw the work of the Afghan company on this road project, including verifying that the company performed the work called for by the contract and authorizing progress payments to the company by the USACE.
Miller admitted that, in the course of overseeing the contract with the Afghan company, he solicited approximately $280,000 in bribes from the owners of the company, in return for assisting the company in connection with the road project, including making sure the contract was not terminated. Miller further admitted that, after the contract was no longer active, he solicited an additional $40,000 in bribes in return for the possibility of future contract work and other benefits.
Miller will be sentenced on November 30 before Judge Mills.
This matter was investigated by the FBI, DCIS, SIGAR and Army CID-MPFU. Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Gregory K. Harris of the Central District of Illinois are prosecuting the case.
Decatur Insurance Agent Sentenced for Fraud Scheme, Money LaunderingRead the Press Release
PEORIA, Ill. – Chief U.S. District Judge James E. Shadid today sentenced James P. Smith, an independent insurance agent, to 63 months in federal prison for defrauding his clients from February 2011 to July 2016. Smith, 61, of the 5400 block of Traughber Road, Decatur, Ill., was also ordered to pay $349,777 in restitution to victims of his crime. Upon release from prison, the court ordered that Smith remain on supervised release for three years. A condition of release is that Smith cannot work in insurance or other financial-related business.
On Mar. 23, 2017, Smith pled guilty to wire fraud (one count); mail fraud (two counts); and money laundering (one count.). Smith remains in law enforcement custody. Smith was previously charged in Macon County.
The Federal Bureau of Investigation and the Macon County Sheriff’s Office conducted the investigation. Supervisory Assistant U.S. Attorney Eugene L. Miller is prosecuting the case with the cooperation of the Macon County State’s Attorney’s Office.
Smith worked as an independent agent at the Prairie State Insurance Agency in Decatur. According to court documents and statements made in court, from at least February 2011 through July 2016, Smith solicited clients to purchase insurance, including whole life insurance, and financial products, including annuities. As part of the scheme, Smith admitted that he falsely represented the minimum rate of return the annuities could obtain for his clients. Instead of investing clients’ money in insurance, annuities, or other financial products, as promised, Smith used the money for his own benefit.
Smith requested that clients make payment to “MSM, Inc.,” which he represented was the insurance company or the investment company for the annuity the clients were purchasing. In fact, as Smith knew, MSM, Inc., was actually Main Street Marathon, a gas station in Mt. Zion, Ill., that Smith owned. Rather than use clients’ funds as represented, Smith used the money to finance the gas station and to make mortgage payments on his personal residence.
Smith also admitted he cancelled or cashed out clients’ insurance policies or annuities without their knowledge or permission, and then used the cash value and / or future premiums or payments for personal expenses. Smith admitted he used the money to pay his attorney’s fees, personal bankruptcy fees, and to make purported annuity payments to other clients to prevent them from discovering that he had not purchased their annuities as promised.
McLean County Man Sentenced to 5 1/2 Years in Prison for Receiving Child PornographyRead the Press Release
PEORIA, Ill. – A Bloomington, Ill., man, Braman Benjamin Broy, 22, has been sentenced to 68 months (5 years, 8 months) in prison for receiving child pornography. In addition to the prison term, U.S. District Judge Michael M. Mihm ordered that Broy remain on supervised release for eight years following his release from incarceration. Broy will be required to register as a sex offender.
Broy pleaded guilty on Jan. 9, 2017. According to court documents, Broy was a member of Playpen, a hidden website dedicated to sharing child pornography that operated on the Tor network, from August 2014 until March 2015. In February 2015, Broy logged into Playpen and downloaded content depicting the sexual exploitation of children. During a search of his residence, agents located a computer and hard drives that contained more than 2,600 images and 530 videos of child pornography.
Broy has been detained in the custody of the U.S. Marshals Service since his arrest on May 31, 2016.
The case was prosecuted by Assistant U.S. Attorney Ronald L. Hanna, and investigated by the FBI.
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. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals 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.projectsafechildhood.gov.
Grand Jury Indicts Champaign Man on Charge of KidnappingRead the Press Release
URBANA, Ill. – A federal grand jury today returned an indictment that charges Brendt A. Christensen, 28, of Champaign, Ill., with kidnapping visiting Chinese scholar Yingying Zhang on June 9, 2017. Christensen was previously arrested and charged by criminal complaint on June 30. On July 5, U.S. Magistrate Judge Eric I. Long ordered that Christensen remain detained in the custody of the U.S. Marshals Service pending trial.
The date for arraignment for Christensen will be scheduled by the U.S. Clerk of the Court in Urbana. A preliminary hearing that had been scheduled on July 14, has been cancelled.
Acting U.S. Attorney Patrick D. Hansen and FBI Special Agent in Charge Sean Cox, Springfield Division, announced the indictment return.
The indictment alleges that Christensen kidnapped and held Yingying Zhang, identified as Y.Z. in the indictment, on June 9, and that he used a cellular telephone and Saturn Astra motor vehicle, both instruments of interstate commerce, to commit and in furtherance of the commission of the offense.
If convicted, the penalty for kidnapping is up to life in prison.
According to an affidavit previously filed with the court, security camera footage taken on June 9, shows Zhang entering the front passenger side of a black Saturn Astra allegedly driven by Christensen at approximately 2:00 p.m. The vehicle had stopped next to Zhang at the corner of W. Clark St. and N. Goodwin Ave., in Champaign. The vehicle then pulled away and proceeded northbound on N. Goodwin Ave.
At approximately 1:39 p.m., on June 9, according to the complaint affidavit, Zhang sent a text message from her cell phone to a manager of an apartment complex in Urbana. In the message Zhang said that she was running behind to meet the manager to sign a lease, and she thought she would arrive at approximately 2:10 p.m., for her appointment. At approximately 2:38 p.m., the apartment manager sent a text message to Zhang and received no response. Later on June 9, at approximately 9:24 p.m., a University of Illinois associate professor reported to University police that multiple colleagues had tried to reach Zhang by phone and she had not responded.
The Federal Bureau of Investigation; University of Illinois Police Department; and the Illinois State Police are continuing the investigation.
As stated in the complaint affidavit, law enforcement investigating Zhang’s disappearance believe Zhang is deceased. This determination is based on facts presented in court and court documents, and other facts uncovered during the ongoing investigation.
Assistant U.S. Attorneys Bryan D. Freres and Eugene L. Miller are representing the government on behalf of the U.S. Attorney’s Office, Urbana Division.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Federal Grand Jury Indicts Decatur Man on Charges of Murder and Hobbs Act RobberyRead the Press Release
SPRINGFIELD, Ill. – A grand jury today returned a superseding indictment that charges Matthew J. Higgins-Vogt, 24, of Decatur, Ill., in the April 3, 2015, armed robbery of the Circle K convenience store and the April 5, 2015, murder of Paige Mars, also of Decatur.
The indictment alleges that on April 3, 2015, Higgins-Vogt and Kelton Snyder robbed the Circle K convenience store at 1685 S. Baltimore in Decatur, and took money, including the contents of the cash register, and alcohol, while brandishing a 12-gauge shotgun. On or about April 5, the indictment alleges that Higgins-Vogt killed Paige Mars to prevent Mars from communicating with law enforcement about the robbery.
The case is being prosecuted in federal court by Assistant U.S. Attorneys Jason Bohm and Katherine Boyle. The Decatur Police Department and FBI conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Macon County Sheriff’s Office.
Higgins-Vogt has been in the custody of the U.S. Marshals Service since his initial appearance on Feb. 17, 2017. He will be arraigned on the indictment in federal court in Urbana on a date to be determined by the U.S. Clerk of the Court. Trial for Higgins-Vogt is currently scheduled on Sept. 18. A jury previously convicted Snyder on similar charges and he is serving a life sentence.
The indictment returned today charges Higgins-Vogt with interference with commerce by violence, otherwise known as a Hobbs Act Robbery; killing a witness; use of a firearm resulting in death; brandishing a firearm during and in relation to a crime of violence, and possession of a firearm by a felon.
If convicted, the penalty for killing a witness is life in prison; use of a firearm resulting in murder is up to life in prison; brandishing a firearm during and in relation to a violent crime is a mandatory minimum of seven years and a maximum of up to life in prison, to be served consecutive to any term of imprisonment ordered for the underlying crime of violence; Hobbs Act Robbery is up to 20 years in prison; and being a felon in possession of a firearm is up to 10 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Former Office Assistant for Autobody Business Sentenced for Embezzling $500,000 from EmployerRead the Press Release
SPRINGFIELD, Ill. – A former office assistant for Kim’s Autobody, Inc., of Springfield, was sentenced on July 7, for defrauding the business and its owners of approximately $500,000 over a five-year period. U.S. District Judge Sue E. Myerscough ordered that Elaine Eddington, 54, of the 1100 block of N. Hill St., Springfield, serve 27 months (2 years, 3 months) in federal prison and pay restitution in the amount of $505,834. Following completion of the prison term, Eddington was ordered to remain on supervised release for three years. Eddington was remanded to the custody of the U.S. Marshals Service following the hearing.
On Mar. 3, 2017, Eddington pled guilty to three counts of mail fraud related to her embezzlement of funds while she was employed as an office assistant. As the office assistant, from 2009 to 2014, Eddington used her position to embezzle funds which she used to pay personal debts and expenses.
Assistant U.S. Attorney Bryan D. Freres prosecuted the case. The investigation was conducted by the Sangamon County Sheriff’s Office; FBI, IRS-Criminal Investigation; and the U.S. Postal Inspection Service.
Danville Sex Offender to Serve 17 1/2 Years in Federal Prison for Receiving, Possessing Child PornographyRead the Press Release
URBANA, Ill. – A Danville, Ill., man, who was registered as a sexual predator in Vermilion County, was sentenced on July 7, 2017. U.S. District Judge Colin S. Bruce ordered John F. Gherna, 52, of the 2400 block of Cedar St., to serve 17 ½ years (210 months) in federal prison for receiving and possessing child pornography. Upon completion of his prison sentence, Gherna was ordered to remain on supervised release for 15 years.
On Mar. 6, 2017, Gherna entered pleas of guilty to receiving child pornography from 2014 to 2016, and to possession of child pornography on June 13, 2016. Gherna has remained in the custody of the U.S. Marshals Service since he was arrested and charged by criminal complaint on June 15, 2016.
According to court documents, when Gherna was arrested on federal charges, he was registered as a sex offender as a result of a prior conviction for aggravated criminal sexual abuse of a minor.
Assistant U.S. Attorney Elly M. Peirson prosecuted the case. The Champaign Police Department and U.S. Immigration and Customs Enforcement Homeland Security Investigations investigated the case.
The 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. Led by U.S. Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals 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.projectsafechildhood.gov.
Status Update: U.S. v. Brendt A. ChristensenRead the Press Release
URBANA, Ill. – During today’s court hearing, which lasted approximately 25 minutes, U.S. Magistrate Judge Eric I. Long found that the government satisfied its burden to show that defendant, Brendt A. Christensen, presents both a danger to the community and the risk of non-appearance at future court proceedings. Judge Long therefore ordered that Christensen be detained pending trial in the custody of the U.S. Marshals Service.
Christensen, 28, of Champaign, Ill., was arrested on June 30, 2017, and charged with kidnapping visiting Chinese scholar Yingying Zhang on June 9, 2017.
According to statements made by the government during today’s hearing, the government alleges that Christensen attended and walked in a vigil for the victim on June 29; has made statements about the characteristics of the ideal victim; that the victim fought and resisted; and, that he made a threat to another person to whom he made incriminating statements.
The FBI, the University of Illinois Police Department, the Illinois State Police and local law enforcement are investigating this case. Assistant U.S. Attorneys Bryan D. Freres and Eugene L. Miller and prosecuting the case.
Members of the public are reminded that a complaint is merely an accusation; the defendant is presumed innocent unless proven guilty.
Champaign Man Arrested, Charged with Kidnapping Visiting ScholarRead the Press Release
URBANA, Ill. – Late today, FBI agents arrested a Champaign, Ill., man, Brendt Christensen, 27, on a criminal complaint that charges Christensen with kidnapping visiting Chinese scholar Yingying Zhang on June 9, 2017. Christensen will remain in law enforcement custody pending his initial federal court appearance in Urbana scheduled on Monday, July 3, at 10:00 a.m.
The arrest and charges were announced by FBI Special Agent in Charge Sean Cox, Springfield Division, and Acting U.S. Attorney Patrick D. Hansen.
The affidavit filed in support of the complaint alleges that on June 9, Christensen was driving the black Saturn Astra which was observed on security camera video as it stopped next to Zhang at the corner of W. Clark St. and N. Goodwin Ave., at approximately 2:00 p.m. Zhang is observed on video entering the front passenger side of the vehicle. The vehicle then pulled away and proceeded northbound on N. Goodwin Ave.
Since Zhang was last seen in the video entering the car, the FBI, the University of Illinois Police Department and the Illinois State Police and local law enforcement have worked around the clock to locate Ms. Zhang and to investigate her disappearance. As part of this effort, the University of Illinois community of faculty, staff and students, and residents of the Champaign-Urbana community have provided information and support to law enforcement in the continuing search for Ms. Zhang.
According to the affidavit, on June 29, 2017, while Christensen was under law enforcement surveillance, agents overheard him explaining that he kidnapped Zhang. Based on this, and other facts uncovered during the investigation of this matter, law enforcement agents believe that Ms. Zhang is no longer alive.
Members of Ms. Zhang’s family, the Chinese consulate, and University of Illinois officials have been advised of Christensen’s arrest and the evidence in the possession of the FBI.
Members of the public are reminded that a complaint is merely an accusation; the defendant is presumed innocent unless proven guilty.
Pekin Man Sentenced to 6 1/2 Years in Prison for Receiving, Possessing Child PornographyRead the Press Release
PEORIA, Ill. – Darin E. Eldridge, 55, of Pekin, Ill., has been sentenced to 80 months (6 years, 8 months) in prison for receiving and possessing child pornography. U.S. District Judge Michael M. Mihm sentenced Eldridge on June 23. Judge Mihm also ordered that Eldridge remain on supervised release for 10 years following his release from incarceration. Eldridge will be required to register as a sex offender. Eldridge has remained in the custody of the U.S. Marshals Service since he was arrested on the federal charges on Sept. 22, 2016.
On Feb. 2, 2017, Eldridge pled guilty to three counts of receiving and one count of possession of child pornography. According to court documents, Eldridge was identified after law enforcement learned that a computer in his residence was using a peer-to-peer file sharing program to download and share files containing child pornography. Based on this information the U.S. Secret Service obtained and executed a search warrant for his residence on April 6, 2016. At the conclusion of the search, the Secret Service seized numerous items of computer equipment. A forensic examination of the seized items revealed the presence of images and videos of minors engaged in sexually explicit conduct.
The charges were the result of an investigation by the U.S. Secret Service, Springfield Electronic Crimes Unit, which includes the Peoria County Sheriff’s Office. Assistant U.S. Attorney Ronald L. Hanna prosecuted the case.
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. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals 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.projectsafechildhood.gov.
Iowa Felon to Serve 57 Months in Federal Prison for Possessing Loaded Handguns after Traffic Stop in McLean CountyRead the Press Release
PEORIA, Ill. – Terrail Draper Lavar Dixon, 35, of Cedar Rapids, Iowa, has been sentenced to 57 months (4 years, 9 months) in federal prison for illegal possession of firearms by a felon during a traffic stop by Illinois State Police in McLean County. At the hearing, on June 21, U.S. District Judge Joe Billy McDade also ordered that Dixon remain on supervised release for three years following his release from prison.
Dixon pled guilty on Feb. 6, 2017. According to court documents, shortly after midnight on Nov. 22, 2016, an Illinois State Police trooper observed Dixon’s vehicle speeding and driving erratically on I-55 in McLean County. When the vehicle stopped, Dixon got out of the car and shouted, “arrest me, go ahead and arrest me.” When the trooper asked why, Dixon responded, “because I have guns in the car, man.” In the subsequent search of the vehicle, officers recovered a loaded Glock 17, .9 mm caliber semi-automatic handgun and a loaded Smith & Wesson MP40, .40 caliber handgun under the driver’s seat. At the time he possessed the guns, Dixon had prior felony convictions in Illinois and Indiana. Dixon has remained in the custody of law enforcement since his arrest.
At the sentencing hearing, the government submitted for exhibit, a transcript of the exchange between Dixon and the officer during the traffic stop. According to the transcript, Dixon admitted to the officer that the guns were “security,” and that Dixon thought about shooting the officer twice, “when I saw the lights. I was hoping you was just going to fly up and pass me.”
The charges were investigated by the Illinois State Police and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted in the Peoria Division by Assistant U.S. Attorney Ronald L. Hanna.
McLean County Man Sentenced to Five Years in Prison for Receiving Child PornographyRead the Press Release
PEORIA, Ill. – Stephen F. Croker, 43, of Normal, Ill., was sentenced today to five years (60 months) in federal prison for receiving child pornography. The court also ordered that Croker remain on supervised release for eight years following his release from incarceration. Croker will be required to register as a sex offender.
Croker pleaded guilty on January 12, 2017. According to court documents, Croker was a member of Playpen, a hidden website dedicated to the sharing of child pornography that operated on the Tor anonymity network from August 2014 until March 2015. Between September 2014 and March 2015, Croker logged into Playpen and downloaded content depicting the sexual exploitation of children. Upon a search of his residence, agents located a USB thumb drive that contained more than 2,000 images and 54 videos of child pornography.
Assistant U.S. Attorney Ronald L. Hanna prosecuted the case. The FBI conducted the investigation.
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. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals 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.projectsafechildhood.gov.
Former Employee of Lincoln Land Community College Sentenced for Defrauding College of Nearly $700,000Read the Press Release
SPRINGFIELD, Ill. – A former telecommunications employee of Lincoln Land Community College, John H. Martinez, 48, was sentenced today for defrauding the college of nearly $700,000 over a seven-year period. U.S. District Judge Sue E. Myerscough ordered that Martinez serve 29 months (2 years, 5 months) in federal prison and pay restitution in the amount of $695,401 to Lincoln Land Community College and its insurers. Martinez will remain on bond and will report to begin serving his prison sentence as designated by the federal Bureau of Prisons.
On Feb. 3, 2017, Martinez waived indictment and pled guilty to defrauding the college from 2005 to February 2012, and using the fraud proceeds to finance his personal expenses.
As a telecommunications administrator, Martinez worked on the college’s telephone system and was authorized to order products for its communications network. For vendor payments greater than a certain amount, Martinez was required to complete certain forms and documentation to obtain supervisory approval for the expenditure. Martinez admitted he repeatedly forged his supervisors’ signatures to authorize expenditures and caused the college to issue checks to fictitious vendors.
To carry out the scheme, Martinez removed some of the checks to fictitious vendors from the college’s mailroom prior to mailing. For one of the vendors, Martinez caused checks to be mailed to an invalid address, knowing that the checks would be returned and given to him for delivery. Martinez then deposited the fraudulent checks in his personal bank account and used the funds for personal expenses. Two other vendors were owned by Martinez’s friends, with whom Martinez agreed that the friends would deposit the checks in their personal accounts and make cash payments back to him. Martinez allowed the vendors/friends to retain part of the proceeds from the checks in exchange for their assistance in the scheme.
Assistant U.S. Attorney Timothy A. Bass prosecuted the case. The investigation was conducted by the U.S. Postal Inspection Service, Illinois State Police, and the Lincoln Land Police Department, with the full cooperation of Lincoln Land Community College, which referred the matter to law enforcement.
Peoria County Man Ordered to Serve 20 Years in Prison for Receiving, Possessing Child PornographyRead the Press Release
PEORIA, Ill. – Richard L. Sills, 61, of Mapleton, Ill., has been sentenced to 20 years (240 months) in federal prison for receiving and possessing child pornography. At the hearing on June 13, U.S. District Judge Michael M. Mihm also ordered that Sills remain on supervised release for 10 years following his release from incarceration. Sills will be required to register as a sex offender. Sills has remained in the custody of the U.S. Marshals Service since his arrest on Oct. 5, 2016.
Sills pleaded guilty to the offenses on Jan. 27, 2017. According to court documents, Sills was identified after investigators with U.S. Immigration and Customs Enforcement Homeland Security Investigations learned that a computer located within his residence was using a peer-to-peer file sharing program to download files containing child pornography. Based on this information, HSI special agents obtained and executed a search warrant for Sills’ residence in Oct. 5, 2016. During the search, Sills agreed to be interviewed and admitted that he accessed child pornography with the computer in his home using a peer-to-peer file sharing program and had been doing so since the 1990s.
At the conclusion of the search, HSI special agents seized numerous items of computer equipment. A forensic examination of the seized items revealed the presence of 1,322 images and 73 videos of minors engaged in sexually explicit conduct.
Assistant U.S. Attorneys Ronald L. Hanna and Katherine G. Legge prosecuted the case, which was investigated by a U.S. Immigration and Customs Enforcement Homeland Security Investigations task force which includes officers on temporary detail from various local departments including the Washington Police Department.
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. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals 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.projectsafechildhood.gov.
Pekin Sex Offender Sentenced to 20 Years in Prison for Receiving, Possessing Child PornographyRead the Press Release
PEORIA, Ill. – Chief U.S. District Judge James E. Shadid today ordered David C. Turner, 43, of Pekin, Ill., to serve 20 years (240 months) in federal prison for child pornography crimes. Turner pled guilty to receiving and possessing child pornography in December 2016 and January 2017, six months after serving 21 years in the Illinois Department of Corrections for offenses including child pornography, aggravated kidnapping and solicitation for murder.
Turner has remained in the custody of the U.S. Marshals Service since he was arrested on Jan. 11, 2017, when he was charged in a criminal complaint. On Feb. 16, Turner pled guilty to the offenses. Upon his release from incarceration, Turner was ordered to remain on supervised release for 20 years and to register as a sex offender.
According to court documents, in December 2016, law enforcement agents identified two IP addresses from a computer, subsequently identified as Turner’s, which were using a peer-to-peer file sharing program to download and share files containing child pornography. Based on this information, U.S. Secret Service agents obtained and executed a search warrant for a residence in the 2100 block of Court St., in Pekin, on Jan. 11, 2017. At the residence, agents identified Turner and seized numerous items of computer equipment belonging to Turner. A forensic examination of the seized items showed they contained 481 images and 84 videos of minors engaged in sexually explicit conduct.
Assistant U.S. Attorney Ronald L. Hanna prosecuted the case. The charges were the result of an investigation by the U.S. Secret Service, Springfield Electronic Crimes Unit, which includes the Peoria County Sheriff’s Department.
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. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals 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.projectsafechildhood.gov.
Former Deere Employee Sentenced to More than Two Years in Prison for Wire Fraud, Money Laundering CrimesRead the Press Release
ROCK ISLAND, Ill. – Harvey Ulfers, 64, of Cedar Falls, Iowa, has been ordered to serve 33 months (2 years, 9 months) in federal prison for wire fraud and money laundering. U.S. District Judge Sara Darrow sentenced Ulfers late yesterday. In addition, Judge Darrow ordered Ulfers to pay a fine of $111,602 plus pay restitution in the amount of $259,132 to his former employer, the victim of his offenses. Ulfers was ordered to report to the federal Bureau of Prisons on July 17, 2017, to begin serving his sentence.
On Nov. 17, 2016, Ulfers pled guilty to the eight counts of the indictment which charged him with wire fraud, money laundering, and money laundering conspiracy. From about 2004 to January 2013, Ulfers defrauded his former employer, Deere & Company, headquartered in Moline, of at least $250,000. Using his position at Deere’s foundry facility in Waterloo, Iowa, Ulfers caused the creation and approval of fraudulent internal documents that allowed significantly undervalued scrap metal to leave the facility. Ulfers conspired with others to obtain the excess value of the scrap after it was sold at scrap yards like Alter Metal Recycling, using a third entity to launder the fraudulent proceeds and provide cash payments to Ulfers.
Ulfers’s co-conspirator, Patrick Williams, 47, of Cedar Falls, Iowa, a former employee of Alter Metal Recycling, pleaded guilty to money laundering conspiracy on April 14, 2016. Judge Darrow sentenced Williams on April 13, 2017, to 27 months in federal prison. Williams was also ordered to pay restitution in the amount of $259,132.97 to Deere & Company, jointly and severally with Ulfers.
The case was prosecuted by Assistant U.S. Attorneys Meredith DeCarlo and Donald Allegro, with Assistant U.S. Attorney Gail Noll assisting with recovery of restitution. The charges were investigated by the Internal Revenue Service Criminal Investigation Division and the Federal Bureau of Investigation. The matter initially came to light following internal investigations by Deere & Company and Alter Metal Recycling.
Peoria Man Pleads Guilty to Receiving Child PornographyRead the Press Release
PEORIA, Ill. – On June 7, 2017, Timothy E. King, 30, of Peoria, Ill., pleaded guilty to one count of receipt and attempted receipt of child pornography. King waived indictment and entered his plea before U.S. Magistrate Judge Jonathan E. Hawley, pursuant to a plea agreement. Sentencing has been scheduled for Aug. 31, 2017, before U.S. District Judge Michael M. Mihm. The offense carries a minimum sentence of five years to 20 years in prison, followed by a term of supervised release.
Assistant U.S. Attorney Ronald L. Hanna is prosecuting the case. The U.S. Secret Service, Springfield Electronic Crimes Unit, which includes the Peoria County Sheriff’s Office, conducted the investigation.
According to court documents, King was identified after law enforcement learned that a computer at his residence was using a peer-to-peer file sharing program to download and share files containing child pornography. Based on this information, law enforcement agents with Secret Service obtained and executed a search warrant for King’s residence on Mar. 22, 2016. During the search, King agreed to be interviewed and admitted that he accessed child pornography with the computer in his home and was aware that the files he was receiving were being distributed from his computer to other locations.
At the June 7 hearing, King was taken into custody and ordered to remain detained in the custody of the U.S. Marshals Service.
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. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals 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.projectsafechildhood.gov.
Rock Island Man Indicted on Cocaine ChargeRead the Press Release
ROCK ISLAND, Ill. – Trial has been set for July 31, 2017, for a Rock Island man charged with possession of cocaine with intent to distribute. Jeffrey Terrell Moore, 29, of the 600 block of 7th Street, appeared in federal court today for arraignment before U.S. District Judge Sara L. Darrow.
A federal grand jury in Peoria returned the indictment on May 23, that charges Moore with attempted possession of at least 500 grams of cocaine with intent to distribute on May 4, 2017, in Rock Island.
Moore was previously charged in a criminal complaint. According to the affidavit filed in support of the complaint, Moore was arrested on May 4, 2017, as he allegedly attempted to purchase multiple kilograms of cocaine.
During a court appearance on May 9, before Judge Darrow, Moore was ordered detained in the custody of the U.S. Marshals Service.
If convicted, the statutory penalty is a minimum mandatory sentence of 10 years to life in prison.
The charge is the result of an investigation by the Rock Island Police Department, assisted by the Quad Cities MEG and the U.S. Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Don Allegro.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Chicago New Birth Christian Center Pastor and Others Plead Guilty to Summer Food Program FraudRead the Press Release
SPRINGFIELD, Ill. – The founding pastor of New Birth Christian Center, a non-denominational church in Chicago, his wife, and three associates have pled guilty to defrauding a summer food program for low-income children. Robbie Wilkerson, 49, and his wife Tasha, 44, both of Oak Park, Ill., entered their guilty pleas today before U.S. Magistrate Judge Tom Schanzle-Haskins. Robbie Wilkerson pled guilty to wire fraud and money laundering; Tasha Wilkerson pled guilty to theft of government funds.
The business administrator for the 2010 summer food program, Anthony Hall, 54, a NBCC pastor, of Downers Grove, Ill.; Richard Shumate, 51, program operations manager for the 2010 program; and his wife Evelyn Shumate, 48, who worked as an assistant for the program, of Romeoville, Ill., each entered pleas of guilty last week to one count of theft of government funds.
The Summer Food Service Program provides nutritious meals to low-income children during the summer months when schools are not in session. In Illinois, the State Board of Education (ISBE) administers the program funding which is provided by the Food and Nutrition Service, an agency of the U.S. Department of Agriculture.
The New Birth Christian Center operated the food program in 2008, 2009 and 2010, and was one of the largest recipients of Summer Program funds in Illinois,. For the 2010 program year, Robbie Wilkerson, on behalf of NBCC, submitted a total operational budget to the ISBE of $446,440, including $250,000 for food and $26,400 for administrative costs. The budget represented that NBCC would administer the summer program at 34 sites in the Chicago area.
Instead, Robbie Wilkerson admitted that he submitted or caused to be submitted, approximately $714,000 in false and fraudulent claims to ISBE, more than $250,000 above the budgeted amount. The submitted claims represented that approximately 267,000 meals were served to low-income children, when in fact, fewer than 100,000 meals were actually served, and as much as $450,000 was used for the defendants’ personal use.
Robbie and Tasha Wilkerson admitted that they embezzled more than $100,000 from the program, including more than $60,000 in direct payments to themselves, at the same time Tasha was paid as an employee of Youth Outreach Services, Chicago, as a prevention coordinator. In addition, more than $10,000 was given directly to relatives; $20,000 in cash and other withdrawals from NBCC’s bank account; $46,000 to purchase real estate in Chicago; and, $37,109 to purchase a residence in Memphis Tenn., for Robbie Wilkerson’s parents.
Hall admitted that he embezzled as much as approximately $50,800 in USDA funds for his and his spouse’s use, an amount that exceeded the projected total administrative costs for the summer program by more than $20,000.
Richard and Evelyn Shumate admitted embezzling between $40,0001 and $$95,000 in USDA funds for their personal use, including as much as $28,695 to purchase a 2011 Hyundai Sonata.
Sentencing hearings for Robbie and Tasha Wilkerson are scheduled on Oct. 6, 2017. Hall’s sentencing date has been set for Sept. 22; Richard and Evelyn Shumate are scheduled for sentencing on Sept. 15, 2017.
According to court documents, at sentencing, the government has stated its intent to recommend that Robbie Wilkerson be sentenced to 37 months in prison and ordered to pay restitution of at least $400,000. For Tasha Wilkerson, Hall, and Richard and Evelyn Shumate, who each pled guilty to one count of theft of government funds, the government has agreed to recommend a split sentence of five months in prison followed by five months of home confinement and to pay restitution. These recommendations are advisory and are not binding on the court which determines sentencing based on the advisory Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Timothy A. Bass is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The charges are the result of investigation by the U.S. Department of Agriculture, Office of Inspector General. The Illinois State Board of Education also assisted in the investigation.
Quad Cities Real Estate Developer Pleads Guilty to Investment Fraud Scheme that Resulted in $1.7 Million in LossesRead the Press Release
ROCK ISLAND, Ill. – A Rock Island, Ill., businessman, Todd B. Raufeisen, waived indictment and pled guilty to an information that charged him with defrauding investors in his land development and management projects of approximately $1.7 million. Raufeisen, 56, entered his guilty pleas to one count each of wire fraud and money laundering today before U.S. District Judge Sara Darrow. Sentencing is scheduled on Sept. 14, 2017.
In court documents and statements, Raufeisen admitted that from 2010 to August 2016, he engaged in a scheme that defrauded approximately 22 investors in his development projects and resulted in a loss of approximately $1.7 million. Raufeisen engaged in business under various business names, including RDC Hotel Solutions.
As part of the scheme, Raufeisen promised prospective investors a higher rate of interest than conventional, insured investments and short turnarounds on return of the principle and interest. In exchange for the money invested, Raufeisen promised certain investors that the money would be placed in escrow until needed, would only be used for specific development or management projects, and, if unused, the money would be returned to the investor. In fact, Raufeisen used the investors’ money for personal expenses and to pay previous investors to whom he was indebted.
Further, Raufeisen provided certain investors with promissory notes that promised repayment of invested principle and interest. The notes were purportedly signed and guaranteed by persons who knew nothing of the promissory notes and had not guaranteed repayment to the investors. In fact, Raufeisen admitted that he forged the signatures on the promissory notes.
The Internal Revenue Service Criminal Investigation Division; Federal Bureau of Investigation; and, the Office of the Illinois Secretary of State conducted the investigation. Assistant U.S. Attorney Donald Allegro is prosecuting the case on behalf of the government.
The maximum statutory penalties for the offenses - 20 years in prison for wire fraud; 10 years for money laundering - are provided here for informational purposes, as final sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The court may also order the defendant to pay restitution to victims of the offenses.
Chicago Area Woman and Brother-in-law Charged in Widespread Fraud SchemeRead the Press Release
CHICAGO – A grand jury has indicted a Naperville woman and her brother-in-law for allegedly defrauding victims of millions of dollars based on false representations. Nandita Chatterjee, 36, and Neil Varma, 34, currently of New York, are charged with soliciting money from victims to enrich themselves and maintain their lifestyle. The grand jury returned the indictment on May 24. The two are scheduled to make their respective initial appearances in federal court in Chicago on June 28, 2017.
The U.S. Attorney’s Office for the Northern District of Illinois has been recused from the matter. The U.S. Attorney General appointed the Central District of Illinois to handle the case prosecution. The government’s case is being prosecuted by Supervisory Assistant U.S. Attorney Darilynn J. Knauss and Assistant U.S. Attorney Ronald L. Hanna, Central District of Illinois, Peoria Division.
The charges are the result of investigation by the U.S Department of Justice Office of the Inspector General; the IRS Criminal Investigation Division; and the U.S. Postal Inspection Service.
According to the indictment, during the course of the scheme, beginning in 2011 to the present, Chatterjee represented herself as the president and chief executive officer of CS Management, Inc. of Oak Terrace, Ill. Varma was the chief financial officer of the company that was incorporated in April 2011 and involuntarily dissolved in October 2012. Chatterjee and Varma also allegedly conducted business under the name Chatterjee Pharmaceuticals, a business represented to be operating in India.
The indictment alleges that the defendants and others raised money for themselves by, among other things, misrepresenting their success, investment opportunities, ability to assist with legal difficulties, charitable fundraising opportunities, and the legitimacy of checks they issued. To further the alleged scheme and to maintain their lifestyle, according to the indictment, the defendants tendered more than $12 million in checks that were drawn on closed accounts, non-existent accounts, and accounts with insufficient funds. They also mailed empty envelopes to victims, claiming that the envelopes contained checks in payment; made payments to investors and others with funds from other investors and individuals; and, when funds could not be obtained from other sources, allegedly obtained funds from Fidelity Investments and other accounts of family members.
Chatterjee allegedly falsely represented herself as an attorney who could provide legal assistance. However, Chatterjee was not an attorney and funds given to her for her legal assistance were deposited in an account and transferred to Varma’s and other accounts for the defendants’ use and benefit. According to the indictment, Chatterjee told universities of her intent to make donations, thereafter tendering checks, including one in the amount of $2.5 million and another check for $1 million knowing full well that the checks were worthless.
The defendants solicited and obtained funds to promote concerts and entertainment productions featuring celebrities. Chatterjee also offered to organize charitable fundraisers featuring celebrities. To secure the celebrity’s appearance, Chatterjee and Varma represented that funds were needed for an escrow account. The concerts, entertainment productions, and charitable fundraisers never materialized and the funds the defendants obtained instead allegedly were used for their own personal benefit.
If convicted, the maximum statutory penalty for each of the offenses charged is prescribed by Congress and is provided here for informational purposes, as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors. For each count of conspiracy to commit mail fraud, wire fraud and bank fraud (one count); mail fraud (six counts); wire fraud (seven counts); money laundering (one count); and conspiracy to commit money laundering (one count), the statutory penalty is up to 20 years in prison. For using counterfeit and forged checks (one count) and illegal monetary transaction (one count), the penalty is up to 10 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Mother Sentenced to 26 Months in Prison for Taking Child from Illinois to Canada in International Parental Kidnapping CaseRead the Press Release
WASHINGTON – A Canadian woman was sentenced to serve 26 months in prison following her December conviction for international parental kidnapping, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Patrick D. Hansen of the Central District of Illinois.
Sarah M. Nixon, 48, of Montreal, Canada, was sentenced before U.S. District Judge Colin S. Bruce of the Central District of Illinois. On Dec. 21, 2016, a federal jury found Nixon guilty of one count of international parental kidnapping for taking her minor child from the United States to Canada in July 2015, with the intent to obstruct the lawful exercise of the father’s rights.
Evidence at trial established that after a custody trial where it was apparent that Nixon would lose custody of her six-year-old daughter, Nixon fled the United States with the child in the middle of the night. When she did not appear for the custody ruling and neither she nor her daughter could be located, law enforcement issued a child abduction alert. Nixon and the child were eventually located in a farmhouse in rural Ontario, Canada. Authorities then returned the child to the father. Nixon was arrested in New York on Sept. 20, 2015 as she attempted to return to the United States.
Trial Attorneys Elly M. Peirson and Lauren S. Kupersmith of the Criminal Division’s Child Exploitation and Obscenity Section prosecuted the case. The FBI; Urbana, Illinois, Police Department; University of Illinois Police Department; Illinois Department of Children and Family Services; Ontario Provincial Police; and U.S. Customs and Border Protection investigated the case, with assistance from the Champaign County, Illinois, State’s Attorney’s Office and the Criminal Division’s Office of International Affairs.
Mother Sentenced to 26 Months in Prison for Taking Child from Illinois to Canada in International Parental Kidnapping CaseRead the Press Release
A Canadian woman was sentenced to serve 26 months in prison following her December conviction for international parental kidnapping, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Patrick D. Hansen of the Central District of Illinois.
Sarah M. Nixon, 48, of Montreal, Canada, was sentenced before U.S. District Judge Colin S. Bruce of the Central District of Illinois. On Dec. 21, 2016, a federal jury found Nixon guilty of one count of international parental kidnapping for taking her minor child from the United States to Canada in July 2015, with the intent to obstruct the lawful exercise of the father’s rights.
Evidence at trial established that after a custody trial where it was apparent that Nixon would lose custody of her six-year-old daughter, Nixon fled the United States with the child in the middle of the night. When she did not appear for the custody ruling and neither she nor her daughter could be located, law enforcement issued a child abduction alert. Nixon and the child were eventually located in a farmhouse in rural Ontario, Canada. Authorities then returned the child to the father. Nixon was arrested in New York on Sept. 20, 2015, as she attempted to return to the United States.
Trial Attorneys Elly M. Peirson and Lauren S. Kupersmith of the Criminal Division’s Child Exploitation and Obscenity Section prosecuted the case. The FBI; Urbana, Illinois, Police Department; University of Illinois Police Department; Illinois Department of Children and Family Services; Ontario Provincial Police; and U.S. Customs and Border Protection investigated the case, with assistance from the Champaign County, Illinois, State’s Attorney’s Office and the Criminal Division’s Office of International Affairs.
Champaign Man Sentenced to 15 Years in Prison for Cocaine OffensesRead the Press Release
Urbana, Ill. – U.S. District Judge Colin S. Bruce has ordered a Champaign, Ill., man, Jerry Minnieweather, 38, to serve 15 years in federal prison for possession and distribution of cocaine and crack cocaine in 2015. Minnieweather, who appeared before Judge Bruce on May 15, was also ordered to remain on supervised release for eight years following completion of his prison sentence.
On Jan. 17, 2017, Minnieweather, last known address 2100 block of Southwood Drive, pled guilty to the four offenses charged in the indictment: distribution of cocaine (two counts); possession with intent to deliver 28 or more grams of crack cocaine; and, possession of cocaine. The drug offenses occurred in June and July 2015.
According to court documents, Minnieweather has two prior drug felony convictions in Champaign county, in 1996 and 1997. Minnieweather has remained in the custody of the U.S. Marshals Service since his arrest on July 15, 2015.
Supervisory Assistant U.S. Attorney Eugene L. Miller prosecuted the case. The Champaign Police Department and the Drug Enforcement Administration conducted the investigation.
Champaign County Man Ordered to Serve 30 Years in Prison for Child Exploitation, PornographyRead the Press Release
Urbana, Ill. – U.S. District Judge Colin S. Bruce today sentenced a Champaign county man, Clinton Schaffer, 45, to serve 30 years in federal prison for sexual exploitation of a minor and distribution of child pornography. Schaffer was also ordered to a lifetime term of supervised release following his release from prison, and to pay restitution in the amount of $15,396 to two victims of the pornography distribution offense.
On Jan. 13, 2017, Schaffer, of Fisher, Ill., pled guilty to the offenses. Schaffer has remained in the custody of the U.S. Marshals Service since his arrest on April 15, 2016.
Supervisory Assistant U.S. Attorney Eugene L. Miller represented the government at today’s hearing. The U.S. Secret Service and the Bloomington Police Department, a participating agency in the U.S. Attorney’s Central Illinois Cyber Crime Unit, conducted the investigation.
The 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. Led by U.S. Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals 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.projectsafechildhood.gov.
Peoria Man Sentenced to 35 Years in Prison for Producing Child Pornography while Registered as a Sex OffenderRead the Press Release
Peoria, Ill. – U.S. District Judge Michael M. Mihm sentenced Jordan D. Salem, 25, of Peoria, Ill., to serve 35 years in prison for producing child pornography while registered as a sex offender. Judge Mihm ordered that Salem remain on supervised release for a period of 15 years following the completion of his prison term. Salem pled guilty to the charges on June 28, 2016.
Assistant U.S. Attorney Ronald L. Hanna prosecuted the case. The charges were the result of a joint investigation by the United States Secret Service, the Peoria Police Department, and the Peoria County Sheriff’s Department.
According to court documents, Salem pleaded guilty to the offense of statutory rape in Tennessee in 2012 which required him to register as a sex offender under Illinois law. Beginning in 2013, Salem created several false identities on Facebook using another male’s picture and solicited naked photographs and sexual acts from female victims, including minors. Acting under his false personas, Salem represented that he was employed as a performer by an internet pornography website that was seeking females to produce short pornographic videos. Salem promised that the girls would be paid thousands of dollars by the website and that their identities would not be revealed. When a girl inquired with Salem’s false persona on Facebook, he would provide additional details about the job and would direct them to send several naked images of themselves if they were interested. If a girl complied with his request for naked photographs, Salem would then direct her to his residence for the purpose of producing the pornographic film with him. In the course of his Facebook chats with females he knew to be minors, Salem would reassure them that he had produced pornography with minors in the past and he could either blur their face or keep their face out of the video to protect them from being discovered.
The investigation, including the results of search warrants executed on Salem’s Facebook accounts and e-mail accounts, revealed that Salem used the fictitious Facebook profiles to solicit sex and sexually explicit images from at least 28 females, including 10 minors. Salem utilized the scheme to persuade six of the minor females, including an 11 year-old, to produce sexually explicit images of themselves and send them to him on the internet. Over the course of the scheme, at least 22 females, 7seven of whom were minors, engaged in sexual intercourse with Salem with the expectation that they were going to be paid large sums of money by a pornographic film production company. Salem did not pay any of his victims the money they were promised for taking part in the production of sexually explicit images.
Salem has remained in the custody of the U.S. Marshals Service since he was arrested on Oct. 30, 2015.
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. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals 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.projectsafechildhood.gov.
Pike County Man Sentenced to 33 Years in Prison for Transportation of a Minor with Intent to Engage in Illegal Sexual ActivityRead the Press Release
Springfield, Ill. - Senior U.S. District Judge Richard Mills today ordered a New Canton, Ill., man, Ralph David Hathaway, 48, to serve 400 months (33 years, 4 months) in federal prison for transporting a minor with the intent to engage in illegal sexual activity and two counts of travel with intent to engage in illicit sexual conduct. Hathaway was also ordered to pay $4,489 in restitution. Following Hathaway’s release from prison, he was ordered to remain on supervised release for five years.
A jury convicted Hathaway of all counts against him in September 2016. During the weeklong trial, the government presented evidence that over a two-year period, beginning in 2013, Hathaway traveled on several occasions from his home in Pike County, Illinois to South Carolina to have illegal sexual activity with a 13-year-old girl whom Hathaway had met online. In June 2015, Hathaway transported the girl from South Carolina to his camper located in Troy, Mo., where Hathaway was arrested. Hathaway has remained in the custody of the U.S. Marshals Service since his arrest.
The investigation was conducted by the FBI, Springfield, Ill., San Francisco, Calif., Charleston, S.C., and St. Louis, Mo. divisions; the Pike County Illinois Sheriff’s Office; St. Charles County (Mo.) Cyber Crime Task Force; the Lincoln County (Mo.) Sheriff’s Office; Horry County (S.C.) Police Department; San Mateo (Calif.) Police Department; and Daly City (Calif.) Police Department. Assistant U.S. Attorneys Victor Yanz and Gregory M. Gilmore represented the government in 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. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals 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.projectsafechildhood.gov.
Two Kankakee Felons Sentenced for Firearms PossessionRead the Press Release
URBANA, Ill. - Two Kankakee men with prior felony convictions have been sentenced in federal court for illegal possession of guns. William D. Roper, 35, was sentenced on April 10, to 7 ½ years in federal prison. On April 7, Andre Davis, 33, was ordered to serve seven years in prison. The men have been in the custody of the U.S. Marshals Service since their respective arrests in separate cases in May 2016.
On Oct. 11, 2016, Roper, of the 600 block of S. Poplar Ave., pled guilty to possession of a .32 caliber semi-automatic pistol. At the time Roper possessed the gun, in April 2016, he had prior felony convictions in Kankakee County.
On Oct. 5, 2016, Davis, of the 300 block of N. Harrison, pled guilty to possession of firearms on three occasions. Davis admitted that at the time he possessed the guns, a .38 caliber revolver on Mar. 17, 2015; a .22 caliber pistol on Mar. 24, 2015; and a .45 caliber pistol on May 21, 2015, he had prior felony convictions that barred him from possession of a firearm.
The cases are the result of ongoing investigations related to gun violence in the Kankakee area by the Kankakee Area Project Safe Neighborhoods Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Kankakee Police Department. Supervisory Assistant U.S. Attorney Eugene L. Miller represented the government in the prosecution of Roper; Assistant U.S. Attorney Katherine V. Boyle prosecuted the case against Davis.
Decatur Insurance Agent Pleads Guilty to Fraud Scheme, Money LaunderingRead the Press Release
PEORIA, Ill. – A Decatur, Ill., man, James P. Smith, who worked as an independent insurance agent, today pled guilty to charges that he defrauded his clients of more than $250,000 from February 2011 to July 2016. Smith, 60, of the 5400 block of Traughber Road, appeared before Chief U.S. District Judge James E. Shadid in Peoria. Sentencing is scheduled on July 20, 2017.
During today’s court appearance, Judge Shadid granted the defense’s motion for Smith’s release from federal custody; however, Smith remains in law enforcement custody on charges previously filed by the Macon County State’s Attorney’s Office.
The Federal Bureau of Investigation and the Macon County Sheriff’s Office conducted the investigation. Supervisory Assistant U.S. Attorney Eugene L. Miller is prosecuting the case with the cooperation of the Macon County State’s Attorney’s Office.
Smith acted as an independent agent at the Prairie State Insurance Agency in Decatur. According to court documents and statements made in court, from at least February 2011 through July 2016, Smith solicited clients to purchase insurance, including whole life insurance, and financial products, including annuities. As part of the scheme, Smith admitted that he falsely represented the minimum rate of return the annuities could obtain for his clients. Instead of investing clients’ money in insurance, annuities, or other financial products, as promised, Smith used the money for his own benefit.
Smith requested that clients make payment to “MSM, Inc.,” which he represented was the insurance company or the investment company for the annuity the clients were purchasing. In fact, as Smith knew, MSM, Inc., was actually Main Street Marathon, a gas station in Mt. Zion, Ill., that Smith owned. Rather than use clients’ funds as represented, Smith used the money to finance the gas station and to make mortgage payments on his personal residence.
Smith also admitted he cancelled or cashed out clients’ insurance policies or annuities without their knowledge or permission, and then used the cash value and / or future premiums or payments for personal expenses. Smith admitted he used the money to pay his attorney’s fees, personal bankruptcy fees, and to make purported annuity payments to other clients to prevent them from discovering that he had not purchased their annuities as promised.
The maximum statutory penalty for each offense is prescribed by Congress and is provided for informational purposes, as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors. For each of the offenses, mail fraud (two counts) wire fraud (one count), and money laundering (one count) the maximum penalty is 20 years in prison.
Peoria Gas Station Owner to Pay $1.5 Million, Serve 21 Months in Prison for Fraud, Tax EvasionRead the Press Release
PEORIA, Ill. – A New Jersey man who owned four Peoria area gas stations, Adnan Rashid, 35, has been sentenced to serve 21 months in federal prison and to pay $1.5 million for underreporting sales on federal corporate and Illinois sales tax returns and for later failing to file corporate returns. On March 20, Chief U.S. District Judge James E. Shadid sentenced Rashid and ordered that he pay $1.28 million in restitution to the State of Illinois and $206,573 to the IRS. Rashid was ordered to report to the federal Bureau of Prisons on May 30, to begin serving his prison sentence.
On Dec. 1, 2016, Rashid pled guilty to mail fraud and tax evasion. According to court documents, Rashid was the sole owner of two Peoria area Marathon gas stations and a 50 percent owner of two additional Peoria Marathon stations. Rashid admitted that he grossly underreported or failed to report sales at the four stations on federal corporate tax returns and the Illinois sales and use tax returns. Rashid admitted that he altered the stations’ gross receipt data before he provided it to his accountant. Information at the sentencing hearing showed that he had over $41 million in unreported gross receipts for the gas stations and $1 million in unreported personal income.
Supervisory Assistant U.S. Attorney Darilynn J. Knauss and former Illinois Assistant Attorney General Eugene Bian prosecuted the case. The Internal Revenue Service, Criminal Investigation Division, and the Illinois Department of Revenue investigated the charges.
Peoria Man Convicted of Drug Trafficking, Gun CrimesRead the Press Release
PEORIA, Ill. -- Chief U.S. District Judge James E. Shadid has entered the judgment of conviction against a Peoria man, Demontae Bell, 34, for drug trafficking and gun offenses. Following a three-day bench trial last week before Judge Shadid, Bell was convicted on March 9, 2017, on two counts of distribution of cocaine, one count of possession of a firearm by a felon, and one count of possession of firearms in furtherance of a drug trafficking crime.
During trial, the government presented evidence to the court of drug transactions by Bell and Bell’s possession of stolen firearms in late 2014 to early 2015, which were sold in Peoria in exchange for drugs, including two AR-15 rifles, a Glock 17C pistol, and an AK-47 style rifle.Under federal statute, Bell faces a minimum of five years in federal prison at sentencing. Final sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
A sentencing hearing will be scheduled after completion of the presentence investigation by the U.S. Probation Office. Judge Shadid scheduled July 13, 2017, for a post-trial motions hearing and possible sentencing. Bell has remained in the custody of the U.S. Marshals Service since he was arrested on April 9, 2015.
This investigation was led by the FBI and the Safe Streets Task Force, with assistance from the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, Peoria MEG (Multi-County Narcotics Enforcement Group), and the Pekin Police Department. Assistant U.S. Attorneys Ron Hanna and Adam Korn are prosecuting the case.Indictment Charges Kankakee Man with Possessing Kilogram of Heroin with Intent to DistributeRead the Press Release
SPRINGFIELD, Ill. - A grand jury returned an indictment today that charges Kevin Brooks, 34, of Kankakee, Ill., with possession of heroin with intent to distribute. The indictment alleges that on Feb. 7, 2017, Brooks possessed approximately one kilogram or more of heroin with intent to distribute.
Brooks was previously arrested and charged by federal criminal complaint on Feb. 9. According to the affidavit filed in support of the complaint, on Feb. 7, Illinois State Police conducted a traffic stop of a vehicle driven by Brooks on southbound Interstate 57, in Douglas County. During a subsequent search of the vehicle, officers allegedly recovered an amount of heroin estimated at more than one kilogram.
U.S. Magistrate Judge Eric I. Long has ordered Brooks detained in the custody of the U.S. Marshals Service.
The East Central Illinois Task Force, Illinois State Police and the FBI conducted the investigation. Assistant U.S. Attorney Bryan Freres is prosecuting the case.
If convicted, the statutory penalty for possession of one kilogram or more of heroin with the intent to distribute is 10 years to life in prison
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Former Financial Advisor Charged with Defrauding Client in Private Investment SchemeRead the Press Release
SPRINGFIELD, Ill. – A federal grand jury has indicted a Champaign, Ill., man who previously worked as a financial advisor at a bank with falsely representing a private investment scheme to a customer that resulted in the client losing money. The indictment charges Paul Schuerger, 44, of the 2700 block of Hunters Pond Run, with mail fraud and money laundering.
A summons will be issued for Schuerger’s initial appearance in federal court in Urbana on a date to be scheduled by the U.S. Clerk of the Court.
According to the indictment, in early 2012, when Schuerger was working at a Kankakee bank as a financial advisor, he allegedly falsely represented to a bank customer that he had a private investment opportunity that would provide a 10 percent rate of return. The customer gave Schuerger $100,000 to invest as Schuerger proposed. As part of the scheme, Schuerger allegedly provided the customer with a private agreement that, in the event of default, guaranteed the customer equity rights totaling approximately $155,000 for two properties, when, in fact, Schuerger did not have such equity in the properties.
Instead of investing the money, the indictment alleges that Schuerger deposited the money into a personal bank account. Within a month, Schuerger had allegedly spent nearly all the customer’s investment of $100,000 for his personal benefit, including to pay off personal debts. According to the indictment, from April 2012 to March 2016, Schuerger lulled the customer into a false sense of security by sending the customer monthly payments by mail in the amount of $833. In May 2016, Schuerger filed a Chapter 13 petition for bankruptcy.
If convicted, the statutory maximum penalty for each count of mail fraud (five counts) is 20 years in prison, and a fine of up to $250,000; for the offense of money laundering (one count) the maximum statutory penalty is up to 10 years in prison.
The FDIC Office of Inspector General conducted the investigation. Assistant U.S. Attorney Eugene L. Miller is prosecuting the case.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Three Quad City Area Men Charged with Home Invasion Robbery and Related Gun OffensesRead the Press Release
ROCK ISLAND, Ill. – Patrick D. Hansen, Acting U.S. Attorney for the Central District of Illinois, announced today that three area men are scheduled for trial in April after a federal grand jury returned an indictment charging them with a January 2017 home invasion robbery and related gun offenses. Those charged are: Deaunta Tyler, 29 of East Moline; Ledell Tyler, 35 of Silvis, and Dalvent Jackson, 24, of East Moline, Ill.
The indictment alleges that on Jan. 7, 2017, the three men robbed and attempted to take illegal drugs and U.S. currency from other persons in Rock Island County. The men are also charged with possession of firearms, a .22 caliber semi-automatic handgun, a .22 caliber rifle and ammunition, which were allegedly discharged, in furtherance of the robbery, and with being a felon in possession of firearms and ammunition.
Trial for the three men is scheduled on April 17, 2017. The men were previously arrested on state charges on Jan. 8, 2017, and have remained in law enforcement custody. During a court appearance yesterday, before U.S. District Judge Sara L. Darrow, Deaunta and Ledell Tyler were ordered to remain detained in the custody of the U.S. Marshals Service; Jackson remains detained pending a detention hearing scheduled on March 2.
If convicted, the statutory maximum penalty for the robbery offense is 20 years in prison. The statutory penalty for possessing firearms in furtherance of the robbery and discharging those firearms requires a sentence of at least 10 years in prison up to a maximum of life imprisonment, which must be served consecutively to any other sentence awarded in the case. The statutory maximum penalty for possession of firearms and ammunition by a felon is 10 years in prison. Each offense is also punishable by a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorneys Don Allegro and Ryan Finlen. The charges are the result of an investigation by the Rock Island Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Kankakee Man Charged with Hobbs Act Robberies of Businesses in Champaign, KankakeeRead the Press Release
URBANA, Ill. – An April trial date has been set for a Kankakee, Ill., man charged with committing robberies of businesses in Champaign and Kankakee in July and August 2016. Thomas James, 33, of the 500 block of S. Indiana Ave., Kankakee, Ill., made his initial appearance in federal court on Feb. 16, on the charges. James has been ordered to remain detained in the custody of the U.S. Marshals Service. Trial is scheduled on April 18.
The indictment alleges that James robbed the Sprint store at 2706 N. Prospect Ave., in Champaign, on July 28, 2016, and the Circle K at 581 S. Indiana Ave., in Kankakee, on Aug. 6, 2016. Both robberies have been charged under the federal statute known as the Hobbs Act, for interference with interstate commerce by threats or violence. The indictment alleges that threats of violence were used to take cell phones and electronic devices from the Sprint store and to take cigarettes and currency from the Circle K. In addition, the indictment alleges that James used a HiPoint 9mm handgun during the robbery of the Circle K, and that he was a felon at the time he possessed the handgun.
If convicted, the statutory maximum penalty for each offense charged is prescribed by Congress and is provided here for informational purposes, as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The maximum penalty for Hobbs Act robbery is 20 years in prison; for brandishing a firearm during a crime of violence, the penalty is a mandatory seven years to life in prison to be served consecutive to any sentence ordered for the underlying crime of violence. Possession of a firearm by a felon carries a maximum penalty of 10 years in prison.
The charges are the result of investigation by the FBI; U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; Champaign Police Department; Kankakee Police Department; Illinois State Police; KAMEG; Alton Police Department; and, the Kankakee County State’s Attorney’s Office. Assistant U.S. Attorney Bryan Freres is prosecuting the case on behalf of the Urbana Division, U.S. Attorney’s Office for the Central District of Illinois.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Kankakee Latin King Sentenced to More than Eleven Years in Prison for Illegally Possessing, Trafficking FirearmsRead the Press Release
URBANA, Ill. – U.S. District Judge Colin S. Bruce has sentenced Jesse Guardiola, 43, of Grant Park, Ill., to serve 140 months (11 years, 8 months) in federal prison for five counts of illegal possession of a firearm by a felon. Guardiola has previously been identified by law enforcement as a member of the Latin Kings in Kankakee.
At sentencing, on Feb. 17, Judge Bruce ordered that Guardiola serve the statutory maximum sentence of 120 months for the five counts, to be served concurrently; however, for two counts, the court ordered that 20 months of the sentence be served consecutive to the other counts, for a total of 140 months in prison. He was also ordered to serve three years of supervised release upon his release from prison. Guardiola has been in the custody of the U.S. Marshals Service since his arrest in June 2016.
On Oct. 7, 2016, Guardiola pled guilty to all five counts in the indictment. Guardiola was charged and pled guilty to possession of firearms: on Aug. 18, 2014, a Llama .380 caliber handgun; on Feb. 11, 2015, a Norinco, Model SKS, 7.62 x 39 caliber firearm; on Feb. 24, 2015, a Hi Point, Model JHP, .45 caliber handgun; on April 16, 2015, a separate Norinco, Model SKS, 7.62 x 39 caliber firearm; and, on May 27, 2015, a Colt, Model MKIV Series 80, Officers ACP, .45 caliber handgun. At sentencing, the court found that Guardiola knowingly sold all of the weapons to a confidential informant. Guardiola had prior felony convictions in Will, Kendall and Kankakee counties at the time he possessed and sold the firearms.
The charges are the result of ongoing investigations related to gun violence in the Kankakee area by the Kankakee Area Project Safe Neighborhoods Task Force, which includes the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Kankakee Police Department; and the Kankakee County State’s Attorney’s Office. The case was prosecuted in the Urbana Division by Assistant U.S. Attorney Bryan Freres.