Central District of Illinois
Press releases recorded for this federal judicial district.
Hoopeston Drug Trafficker Sentenced to Life in Prison for Distributing Crystal Meth, Cocaine in ChampaignRead the Press Release
URBANA, Ill. -- Jose Jaime Lopez, aka “JJ,” 37, of the 800 block of West Penn St., Hoopeston, Ill., has been ordered to serve the rest of his life in federal prison for trafficking crystal meth and cocaine in Champaign, as announced by Patrick D. Hansen, Acting U.S. Attorney for the Central District of Illinois. Lopez has been in the custody of the U.S. Marshals Service since his federal arrest in January 2016. U.S. District Judge Colin S. Bruce sentenced Lopez on Feb. 17.
On Nov. 3, 2016, a jury found Lopez guilty of distribution of cocaine and methamphetamine, as well as attempted possession of methamphetamine with intent to distribute. During three days of trial, the government presented evidence to establish that in October 2014, Lopez arranged with a Mexican drug cartel member in Houston, to obtain approximately 10 ounces of crystal methamphetamine, also known as “ice.” Agents of the Drug Enforcement Administration intercepted phone calls between Lopez and the cartel member. On Oct. 3, 2014, agents of the DEA and Champaign Police Department seized 272.5 grams of nearly 100 percent pure crystal methamphetamine from a drug courier in Rantoul, Ill. The courier was transporting the crystal meth to Lopez in Hoopeston so Lopez could distribute it in Central Illinois. Later, in November and December 2015, agents used a confidential informant to purchase two ounces of powder cocaine, 18 grams of ice, and 30 grams of ice, respectively, from Lopez in the parking lots of businesses on North Prospect Street in Champaign. On January 6, 2016, agents executed a search warrant at Lopez’s Hoopeston residence and found numerous items associated with drug trafficking.
At the time the drug trafficking offenses occurred, Lopez was on federal supervised release for a 2002 federal drug trafficking conviction, as well as state bond for aggravated fleeing from a police officer. Lopez was also ordered to serve five years in prison, to be served concurrent with the life sentence, for violating federal supervised release. Lopez also has a prior felony drug conviction in Texas, as well as two Vermilion County, Illinois convictions for aggravated battery of a police officer and driving under the influence of alcohol.
The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller. The U.S. Drug Enforcement Administration and the Champaign Police Department investigated the case.
Springfield Man Sentenced for Hobbs Act RobberiesRead the Press Release
Springfield, Ill. – A Springfield, Ill., man, Javon A. Young, 18, of Rosaria Road, has been ordered to serve a total of 51 months (4 years, 3 months) in federal prison for robberies at the Casey’s General Store and Taco Gringo in Springfield that occurred in June 2016.
Young appeared today before U.S. District Judge Sue E. Myerscough, in Springfield. Judge Myerscough ordered that Young serve 51 months in prison, followed by three years supervised release, for the robbery of the Casey’s General Store, 1133 West Jefferson St., on June 8, 2016, and of Taco Gringo, 975 Clock Tower Drive, on June 11, 2016.
In October 2016, Young pled guilty to the robberies under the federal statute known as the Hobbs Act, for interference with interstate commerce by threats or violence. Young was charged with using a black air rifle handgun to commit the robberies of the two businesses.
Young was also ordered to pay a $200 special assessment and to pay restitution in the total amount of $605 to Casey’s General Store.
Assistant U.S. Attorney Gregory M. Gilmore prosecuted the case in the Central District of Illinois, Springfield Division. The charges were investigated by the FBI and the Springfield Police Department.
Young has remained in the custody of the U.S. Marshals Service since his arrest on Sept. 21, 2016.
Kewanee Felon Sentenced to Prison for Gun, Drug CrimesRead the Press Release
PEORIA, Ill. – U.S. District Judge James E. Shadid today sentenced Dimitri Miles Lopez, 29, of the 600 block of Cole St., Kewanee, Ill., to serve 200 months (16 years, 8 months) in federal prison for possession of methamphetamine with intent to distribute and possession of a short-barreled shotgun in furtherance of the drug trafficking crime. Lopez has remained in the custody of the U.S. Marshals Service since he was arrested in December 2015.
On Oct. 19, 2016, Lopez pled guilty to the offenses. According to court documents, when agents with the Illinois State Police Blackhawk Area Task Force executed a search warrant on Dec. 2, 2015, at Lopez’s home, officers found a loaded short-barreled 12-gauge shotgun under the living room couch, a .38 revolver, two baggies that contained methamphetamine and $2,000 in Lopez’s pants pocket. At the time, Lopez was a convicted felon, with a 2011 conviction for aggravated battery with a deadly weapon and a 2010 conviction for criminal damage to property.
Lopez was sentenced to 80 months in prison for possession of methamphetamine with intent to distribute; possession of a short-barreled shotgun, and felon in possession of a firearm. In addition, Lopez was ordered to serve 10 years in prison for possession of a firearm in furtherance of a drug trafficking crime, to be served consecutive to the 80-month sentence.
The charges were investigated by the Illinois State Police Blackhawk Area Task Force, the Kewanee Police Department, the Drug Enforcement Administration and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Supervisory Assistant U.S. Attorney John K Mehochko prosecuted the case in the Rock Island Division of the U.S. Attorney’s Office for the Central District of Illinois.
Three Men Arrested, Charged with Conspiring to Distribute Cocaine in Beardstown AreaRead the Press Release
SPRINGFIELD, Ill. – A federal grand jury has charged three men with conspiracy to distribute more than 500 grams of cocaine in central Illinois, specifically in the Beardstown area, and related drug charges. Those charged are Hector Lopez-Herrera, of the 12000 block of Ill. Route 125, Beardstown; Modesto Favela-Chaidez, Chicago, and Jose Rolando Acosta-Hernandez, of the 1000 block of Garm Ave., Beardstown.
The three men were arrested yesterday, in Beardstown, and made their initial appearance in federal court this afternoon before U.S. Magistrate Judge Tom Schanzle-Haskins. The defendants waived detention hearings and were ordered to remain in the custody of the U.S. Marshals Service. Trial has been set for April 11, 2017, before U.S. District Judge Sue E. Myerscough.
The indictment alleges that from May 2016 to Jan. 10, 2017, the three conspired to distribute more than 500 grams of cocaine obtained from Chicago to others in the Beardstown area. According to allegations in the indictment, as part of the conspiracy, Lopez-Herrera would arrange for Favela-Chaidez to deliver cocaine from the Chicago area to co-conspirators in Cass county, including Acosta-Hernandez. Prior to and after delivery of cocaine by Favela-Chaidez, Lopez-Herrera would allegedly accept payment for the cocaine delivered to Acosta-Hernandez and others.
The charges are the result of investigation by the Drug Enforcement Administration; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Illinois State Police; the Central Illinois Enforcement Group; Illinois National Guard, Macomb Police Department; the McDonough County Sheriff’s Office; and, the Cass County Sheriff’s Office. Assistant U.S. Attorney Gregory M. Gilmore is prosecuting the case.
If convicted, the maximum statutory 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. For conspiracy to distribute more than 500 grams of cocaine, the statutory penalty is five to 40 years in prison; if a defendant has a prior felony drug conviction, the penalty is 10 years to life in prison.
Lopez-Herrera and Favela-Chaidez are also each charged with two counts of distribution and possession of cocaine with intent to distribute; Acosta-Hernandez is charged with four counts of distribution of cocaine. The statutory penalty for each count of these offenses, if convicted, is up to 20 years in prison; with a prior felony drug conviction, the statutory penalty is up to 30 years in prison.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Kane County Man Charged with Aggravated ID Theft, Credit SchemeRead the Press Release
SPRINGFIELD, Ill. – A Carpentersville, Ill., man, Keith JD Offord, 23, has been indicted on fraud charges that allege he used others’ identities to create fraudulent credit accounts that resulted in a loss of more than $500,000 from December 2013 to August 2015. Offord made his initial appearance in federal court yesterday before U.S. Magistrate Judge Tom Schanzle-Haskins. A detention hearing for Offord is scheduled on Feb. 17. Trial has been set for April 4, 2017, before U.S. District Judge Sue E. Myerscough.
The indictment alleges that during the time of the alleged scheme, Offord created false identification documents using others’ personal identifying information. Offord then allegedly added photographs of a co-schemer to the fraudulent IDs. Offord allegedly took the co-schemer to various retail businesses where Offord instructed the individual to obtain a credit account and credit card, and to use the credit to purchase merchandise and gift cards.
According to the indictment, Offord and his co-schemers conducted more than 260 fraudulent transactions which caused banks to issued credit cards and resulted in a loss of more than $500,000. As part of the fraud scheme, Offord allegedly defrauded several Springfield area retail stores as well as stores in the St. Louis, Mo., area in July and August 2015. Offord is also charged with possession of 15 or more counterfeit credit cards in August 2015 and with four counts of aggravated identity theft related to his alleged use of another person’s identifying information.
The charges are the result of an investigation by Illinois State Police. Assistant U.S. Attorney Gregory M. Gilmore is prosecuting the case.
If convicted, the maximum statutory 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. For the offense of bank fraud, the statutory penalty is up to 30 years in prison; for access device fraud, up to 10 years in prison, and for aggravated identity theft (four counts), the penalty is a mandatory two-year prison term to be served consecutive to the sentence ordered for the related fraud offense.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty
Five Quincy Men Indicted on Federal Drug, Gun Charges in Separate CasesRead the Press Release
SPRINGFIELD, Ill. – Five Quincy, Ill., men made their respective initial appearances in federal court this morning on separate, unrelated drug and gun charges. A federal grand jury returned the indictments last week; however, the charges had remained sealed pending the defendants’ arrests and court appearances. Each defendant was given a trial date of April 4, 2017. The defendants charged include the following:
Gerald Knight, 59, of the 1400 block of N. Fifth St.: on Jan. 6, 2017, possession with intent to distribute methamphetamine; possession of a firearm, a 12-gauge shotgun, during and in relation to a drug trafficking offense; and, possession of a firearm by a felon.
Dantae Knighton, 26, of the 300 block of College St.: on Jan. 13, 2017, possession with intent to distribute marijuana; possession of a firearm, a .380 handgun, during and in relation to a drug trafficking offense; and, possession of a firearm by a felon.
Conner McGlaughlin, 18, of the 1800 block of Kochs Lane: on Oct. 11, 2016, possession with intent to distribute methamphetamine and possession of a firearm, a .32 caliber revolver, during and in relation to a drug trafficking offense.
Tyler McGlaughlin, 23, also of the 1800 block of Kochs Lane: on Oct. 21, 2016, possession with intent to distribute methamphetamine; possession of a firearm, a .32 revolver, during and in relation to a drug trafficking offense; and, possession of a firearm by a felon.
Caleb Roux, 18, of the 400 block of N. 14th St.: on Dec. 13, 2016, possession with intent to distribute marijuana; possession of a firearm, a .45 pistol, during and in relation to a drug trafficking offense; and, possession of a firearm by a felon.
U.S. Magistrate Judge Tom Schanzle-Haskins ordered that Knight and Knighton remain detained in the custody of the U.S. Marshals Service. Conner McGlaughlin was released from custody. A detention hearing for Roux is scheduled on Thursday, and on Friday for Tyler McGlaughlin.
The charges against the five defendants were investigated by the West Central Illinois Task Force and the Quincy Police Department. Assistant U.S. Attorney Matthew Z. Weir is prosecuting the cases.
If convicted, the maximum statutory penalty for each offense charged 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 possession with intent to distribute methamphetamine, Knight faces up to life in prison; for possession of a substance containing methamphetamine, Knight faces up to 30 years in prison. Conner McGlaughlin faces up to 20 years in prison for possession with intent to distribute a substance containing meth; and, Tyler McGlaughlin faces up to 40 years in prison.
If convicted for possession with intent to distribute marijuana, Knighton faces up to five years in prison. Roux faces up to 10 years in prison for possession with intent to distribute marijuana.
Each of the defendants is charged with one count of possession of a firearm during and in relation to a drug trafficking offense, an offense that carries a mandatory minimum five years in prison to be served consecutive to any sentence ordered for the related drug offense. Possession of a firearm by a felon carries a statutory maximum penalty of 10 years in prison.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Kankakee Felon Sentenced to Six Years in Prison for Possession of GunsRead the Press Release
URBANA, Ill. - U.S. District Judge Colin S. Bruce today sentenced Santos Salgado, 31, of the 800 block of E. Station St., Kankakee, Ill., to serve 72 months in federal prison for illegal possession of a firearm by a felon. Salgado was also ordered to serve three years of supervised release upon his release from prison. Salgado has been in the custody of the U.S. Marshals Service since his arrest in June 2016. On Aug. 15, 2016, Salgado pled guilty to two counts of possession of a firearm by a felon as charged in the indictment.
Salgado pled guilty to possession of firearms: on Feb. 1, 2016, possession of a .22 caliber handgun and a .22 caliber rifle; and, on Mar. 24, 2016, possession of a .45 caliber handgun. At the time Salgado possessed the guns, he had prior felony convictions in Kankakee County.
The charges were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Kankakee Police Department; the Kankakee County Sheriff’s Office; ISP/KAMEG; and, the Kankakee County State’s Attorney’s Office. The case was prosecuted in the Urbana Division by Assistant U.S. Attorney Bryan Freres.
Two Champaign Men Charged with Aggravated Identity Theft, False Claims Related to CitizenshipRead the Press Release
URBANA, Ill. – Grand jury indictments returned this week charge two men, both allegedly illegally in the U.S., with aggravated identity theft, making false claims of citizenship, and other related offenses.
Miguel Valencia-Sandoval, 33, of Ivanhoe Drive, Champaign, made his initial appearance on the charges in federal court in Urbana today. The indictment charges Valencia-Sandoval with making a false statement of U.S. citizenship in April 2012, on a passport application, in that he allegedly used another’s identity and stated he was a U.S. citizen when he was not. In addition, he is charged with aggravated identity theft related to the April 2012 passport application. The indictment also charges Valencia-Sandoval with allegedly making a false claim of citizenship to vote in November 2016; aggravated identity theft, and three misdemeanor counts of voting in an election by an illegal alien, in November 2016, November 2014, and November 2012.
Valencia-Sandoval was previously charged in a criminal complaint filed in the Central District of Illinois on Jan. 9, 2017. According to the affidavit in support of the complaint, on Jan. 7, 2017, Valencia-Sandoval applied for admission to the U.S. from Mexico via the Lincoln Juarez Port of Entry, into Laredo, Texas. After he was taken into custody by U.S. Customs and Border Protection officers, Valencia-Sandoval was charged with illegally attempting to enter the U.S. in a separate complaint filed by the Southern District of Texas. According to court documents, Valencia-Sandoval waived an identity hearing in Texas, consented to transfer to the Central District of Illinois, and remains in the custody of the U.S. Marshals Service pending future court hearings in the Central District of Illinois, Urbana division.
A separate, unrelated indictment charges Salvador Garcia-Luna, 27, of the 1700 block of Henry St., Champaign, with making a false statement of U.S. citizenship and aggravated identity theft, in March 2016, on a passport application, in that he allegedly used another’s identity and stated he was a U.S citizen when he was not. Garcia-Luna is also charged with possession of a firearm by a prohibited person, an illegal alien, on Jan. 4, 2017.
Garcia-Luna was initially charged by indictment on Jan. 3, 2017, with making a false statement of U.S. citizenship on a passport application. The superseding indictment returned this week charges Garcia-Luna with the additional counts. Garcia-Luna was arrested in Champaign, on Jan. 6, 2017, and appeared in federal court before U.S. Magistrate Judge Eric I. Long, who ordered that Garcia-Luna remain detained in the custody of the U.S. Marshals Service. Arraignment on the superseding indictment is scheduled on Feb. 16, 2017.
The charges against Valencia-Sandoval and Garcia-Luna are the result of investigation by U.S. Immigration and Customs Enforcement Homeland Security Investigations. In addition, the Champaign County Street Crimes Unit and the Department of State Diplomatic Security Service assisted in the investigation of Garcia-Luna. Assistant U.S. Attorney Bryan Freres is prosecuting both cases.
If convicted, the maximum statutory penalty for each offense is as follows: making a false statement in a passport application - up to 10 years in prison; aggravated identity theft – a minimum two years in prison served consecutive to any other sentence; possession of a firearm by a prohibited person, an illegal alien – up to 10 years in prison; making a false statement or claim of citizenship to vote - up to five years in prison; voting by illegal alien - up to one year in prison. The maximum statutory 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.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Two Springfield Men Indicted on Drug, Gun Charges in Separate CasesRead the Press Release
SPRINGFIELD, Ill. – A federal grand jury today returned separate, unrelated indictments that charge two Springfield men with drug and gun offenses.
Darryl D. Perkins, 38, of the 2100 block of S. Renfro St., is charged with five counts of distribution or possession with intent to distribute a controlled substance, heroin, possession of a firearm during and in relation to a drug trafficking offense, and possession of a firearm by a felon. The indictment alleges that on five separate occasions, from November 2016 to Jan. 19, 2017, Perkins distributed or possessed with intent to distribute heroin, and that he possessed a Colt Trooper MK3 .357 revolver.
Perkins was previously arrested and charged in a criminal complaint filed on Jan. 20, 2017. Perkins made his initial appearance in federal court on Jan. 23, 2017, before U.S. Magistrate Judge Tom Schanzle-Haskins. Perkins was ordered to remain detained in the custody of the U.S. Marshals Service.
The charges against Perkins were investigated by the Drug Enforcement Administration, Illinois State Police, the Springfield Police Department, and the Illinois Attorney General’s Office. Assistant U.S. Attorney Matthew Z. Weir is prosecuting the case.
In an unrelated indictment, Jamarr Moore, 20, of the 700 block of N. 14th St., is charged with one count each of possession with intent to distribute a controlled substance, crack cocaine, possession of a firearm during and in relation to a drug trafficking offense, and possession of a firearm by a felon. The indictment alleges that Moore possessed crack cocaine and a Glock .40 caliber semi-automatic firearm on Jan. 5, 2017.
Moore was arrested on state charges on Jan. 5; a federal criminal complaint was filed on Jan. 23. Moore made his initial appearance in federal court on Jan. 23, 2017. U.S. Magistrate Judge Tom Schanzle-Haskins ordered that Moore remain detained in the custody of the U.S. Marshals Service.
The charges against Moore were investigated by the Springfield Police Department Street Crimes Unit, the FBI, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Victor Yanz is prosecuting the case.
If convicted, for each count of distribution or possession with intent to distribute heroin (five counts), Perkins faces maximum statutory penalties of up to 30 years in prison. For possession with intent to distribute crack cocaine (one count), Moore faces a maximum statutory penalty of 20 years in prison. The offense of possession of a firearm during and in relation to a drug trafficking offense carries a mandatory minimum five years in prison to be served consecutive to any sentence ordered for the related drug offense. Possession of a firearm by a felon carries a statutory maximum penalty of 10 years in prison.
The maximum statutory penalty for each offense charged 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.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Former Lincoln Land Community College Employee Pleads Guilty to Fraud Scheme; Agrees to Pay Back Nearly $700,000Read the Press Release
SPRINGFIELD, Ill. – A former telecommunications employee of Lincoln Land Community College, John H. Martinez, 47, waived indictment and pled guilty to a scheme that defrauded the college of nearly $700,000 over seven years. Martinez, of the 4600 block of Lily Lane, Springfield, Ill., appeared before U.S. Magistrate Judge Tom Schanzle-Haskins on Friday, Feb. 3.
According to court documents, during the time Martinez carried out the scheme, from 2005 to February 2012, he was employed as a telecommunications administrator. In this capacity, 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. As part of the scheme, 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 Martinez. Martinez allowed the vendors/friends to retain part of the proceeds from the checks in exchange for their assistance in the scheme.
Martinez admitted that he used the fraud proceeds to finance his personal lifestyle, including personal expenses, repeated personal travel, and alcohol expenses. As a result of the scheme, Martinez caused a loss of approximately $695,401 to Lincoln Land Community College.
Martinez’s sentencing is scheduled on June 5, 2017. As part of the plea agreement, Martinez has agreed to pay full restitution, in the amount of $695,401 to Lincoln Land Community College and its insurers. The parties have further agreed that the advisory sentencing guideline range which will be presented to the court may be up to 51 months in prison.
The case is being prosecuted by Assistant U.S. Attorney Timothy A. Bass. 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.
Chicago Man Pleads Guilty to Fraud Conspiracy; False Tax Returns Filed for RefundsRead the Press Release
PEORIA, Ill., -- A Chicago man, Gbadebo Adebiyi, 41, of Chicago, pled guilty today to his role in a fraud scheme that used others’ personal information to file false tax returns for refunds. Adebiyi appeared this morning before U.S. District Judge Joe Billy McDade. A co-defendant, Idris Akande, 35, also of Chicago, remains a fugitive. Sentencing for Adebiyi is scheduled on May 3, 2017.
According to court documents, in March 2015, Bradley University reported a data breach that resulted in employees having their personal identifying information used to file false 2014 federal income tax returns. Adebiyi admitted to conspiring with others to obtain refunds obtained from the false income tax returns.
The false tax returns typically directed that refunds be routed to third-party prepaid debit cards, Green Dot cards, which were purchased at various retail locations. The personal information of Bradley employees was used to create permanent Green Card accounts. Conspirators used the Green Dot cards, loaded with the fraudulent tax refunds, to purchase money orders. The money orders were then cashed at currency exchange businesses in the Chicago area. As a result of the fraud, the government estimates that the conspiracy’s intended loss is approximately $770,000.
Adebiyi pled guilty to one count of conspiracy to commit mail fraud, an offense that carries a maximum statutory penalty of five years in prison. The defendant may also be ordered to pay restitution. 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.
The Internal Revenue Service, Criminal Investigation Division, and the Federal Bureau of Investigation conducted the investigation. Supervisory Assistant U.S. Attorney Darilynn J. Knauss is prosecuting the case.
Moline Man Charged with Falsifying Records, Making False Statements Under Oath in Bankruptcy ProceedingsRead the Press Release
ROCK ISLAND, Ill. -- A Moline, Ill., man, Samir A. Patel, 48, made his initial appearance in federal court today on bankruptcy fraud charges. Patel, of the 3600 block of 73rd Street, was arrested yesterday. U.S. Magistrate Judge Stephen B. Jackson, Jr., ordered that Patel remain detained pending a detention hearing on Feb. 6. Trial was set on Mar. 27, in Peoria, before Chief U.S. District Judge James E. Shadid.
According to the indictment, in June 2013, Patel filed a bankruptcy petition in the Central District of Illinois to discharge his debts under Chapter 7 of the U.S. Bankruptcy Code. The indictment alleges that in August and September 2013, Patel provided the Bankruptcy Trustee with altered bank statements and summaries of his bank account.
The indictment also alleges that Patel falsely testified under oath in a bankruptcy proceeding, a September 2013 meeting of creditors, that a $5,000 wire transfer deposit into his account was a loan from a friend of his wife to help the couple pay living and business expenses. As alleged in the indictment, the deposit was actually a $315,000 wire transfer from a law firm related to a business transaction and which Patel was attempting to conceal from creditors and the Bankruptcy Trustee.
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 and the IRS Criminal Investigation Division, in collaboration with the Central Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. Assistant U.S. Attorney John K. Mehochko is prosecuting the case.
“This case is an example of the collaborative efforts of the Bankruptcy Fraud Working Group and other law enforcement partners to combat fraud and abuse in our nation’s bankruptcy system,” stated Nancy J. Gargula, U.S. Trustee for Central Illinois, Southern Illinois and Indiana (Region 10.) “I am grateful to Acting U.S. Attorney Hansen and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases.”
If convicted, the statutory penalty for each count of altering records in bankruptcy (seven counts) is up to 20 years in prison; for falsification of records in bankruptcy (one count) and making false statements under oath in bankruptcy proceedings (one count) the penalty is up to five years in prison. The maximum statutory penalty for each offense charged 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.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
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.
Ten Area Men Charged with Federal Dog-Fighting OffensesRead the Press Release
ROCK ISLAND, Ill. – Federal and local law enforcement officers made arrests this morning of area men charged by indictment with conspiracy to sponsor and participate in a dog-fighting venture and related charges. The indictment, returned by the grand jury last week, had remained sealed pending the arrests and initial court appearances. The defendants are making their initial appearances in federal court in Rock Island.
Those charged in the conspiracy include the following: Demarlo A. McCoy, 29; Ryan M. Hickman, 42; Andre Keywan Lidell, 40; Algerron Lee Goldsmith, 46; Stantrel Vontrez Knight, 29; Simmeon Terrell Hall, 28; Sherrick Cornelius Houston, 43; Willie Earl Jackson, 34, all of Rock Island, Ill.; and, Terrell Onterial McDuffy, 43, of Davenport, Iowa. In addition, the indictment charges Jaquan Leontae Jones, 27, also of Rock Island, with a single misdemeanor count of knowingly attending a dog fight.
Acting U.S. Attorney Patrick D. Hansen, FBI Special Agent in Charge Sean M. Cox, Springfield Field Office, and Rock Island Police Chief Jeffrey R. VenHuizen announced the charges today. The investigation was conducted by the FBI and the Rock Island Police Department. Assistant U.S. Attorneys Don Allegro and Ryan Finlen are prosecuting the case.
The indictment charges the defendants with conspiring from 2011 through April 14, 2016, to sponsor pit bull-type dogs in fights as well as buying, selling, training, and possessing dogs to participate in such fights. According to the indictment, the defendants allegedly scheduled and conducted dog fights for sport and entertainment and wagered money on fight results.
The defendants allegedly discussed and disseminated information, including video recordings of dog fights, to establish the fighting reputations of specific dogs, to maximize the dogs’ values for breeding fighting dogs, and to maximize the defendants’ reputations as fighting-dog trainers and breeders.
In a separate, but related matter, the government filed a civil complaint in April 2016, seeking forfeiture of approximately 64 dogs that were seized in the execution of search warrants on April 14, 2016. According to the civil complaint, the dogs were involved in and used to commit or facilitate the alleged dog-fighting venture.
To date, pursuant to a court order, 27 of the previously seized dogs have been forfeited to the government. On Jan. 26, 2017, the court granted the government’s motion for default pertaining to 24 additional dogs. Two dogs have been euthanized pursuant to a court order; five were voluntarily surrendered; and three dogs have died. There are three dogs whose claims remain unresolved, including two for which a motion to strike is currently pending.
Law enforcement agencies that coordinated and participated in making today’s arrests include: the Rock Island Police Department; FBI; Rock Island County Sheriff’s Office; DEA; Scott County, Iowa Sheriff’s Office; the Quad City Metropolitan Enforcement Team (QCMEG); and the U.S. Marshals Service.
Representatives of the American Society for the Prevention of Cruelty of Animals (ASPCA) were available today to assist in the event any additional dogs were seized in the execution of the arrest warrants. ASPCA continues to assist in the care of the dogs seized by law enforcement in April 2016, during the execution of search warrants.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
If convicted, the maximum statutory 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 statutory penalty is up to five years in prison and fines of up to $250,000 for each count charged of conspiracy to sponsor/exhibit pit bulls in an animal fighting venture; sponsoring/exhibiting an animal in an AFV; possessing an animal for purposes of having the animal participate in an AFV; and transporting an animal for purposes of having the animal participate in an AFV. For the misdemeanor charge of knowingly attending an AFV, the penalty is up to one year in prison. The table below lists the defendants and specific counts charged in the indictment.
Defendant
Charge
Demarlo A. McCoy, 29
400 block 7th St.
Rock Island, Ill.
Conspiracy to sponsor/exhibit pit bulls in an animal fighting venture (1 count)
Sponsoring/exhibiting an animal in an AFV (4 counts)
Possessing an animal for purposes of having the animal participate in an AFV (1 count)
Ryan M. Hickman, 42
500 block 14th Ave.
Rock Island, Ill.
Conspiracy to sponsor/exhibit pit bulls in an animal fighting venture (1 count)
Possessing an animal for purposes of having the animal participate in an AFV (1 count)
Andre Keywan Lidell, 40
800 block 15th Ave.
Rock Island, Ill.
Conspiracy to sponsor/exhibit pit bulls in an animal fighting venture (1 count)
Sponsoring/exhibiting an animal in an AFV (2 counts)
Possessing an animal for purposes of having the animal participate in an AFV (1 count)
Algerron Lee Goldsmith, 46
1200 block 14th St.
Rock Island, Ill.
Conspiracy to sponsor/exhibit pit bulls in an animal fighting venture (1 count)
Possessing an animal for purposes of having the animal participate in an AFV (1 count)
Defendant
Charge
Stantrel Vontrez Knight, 29
500 block 6th St.
Rock Island, Ill.
Conspiracy to sponsor/exhibit pit bulls in an animal fighting venture (1 count)
Sponsoring/exhibiting an animal in an AFV (1 count)
Possessing an animal for purposes of having the animal participate in an AFV (1 count)
Terrell Onterial McDuffy, 43
1800 block 8th Ave.
Davenport, Iowa
Conspiracy to sponsor/exhibit pit bulls in an animal fighting venture (1 count)
Simmeon Terrell Hall, 28
800 block 21st St.
Rock Island, Ill.
Conspiracy to sponsor/exhibit pit bulls in an animal fighting venture (1 count)
Sponsoring/exhibiting an animal in an AFV (3 counts)
Transporting an animal for purposes of having the animal participate in an AFV (1 count)
Sherrick Cornelius Houston, 43
1600 block 5th St.
Rock Island, Ill.
Conspiracy to sponsor/exhibit pit bulls in an animal fighting venture (1 count)
Possessing an animal for purposes of having the animal participate in an AFV (1 count)
Willie Earl Jackson, 34
1500 block 9th St.
Rock Island, Ill.
Conspiracy to sponsor/exhibit pit bulls in an animal fighting venture (1 count)
Sponsoring/exhibiting an animal in an AFV (1 count)
Jaquan Leontae Jones, 27
1000 block 10th Ave.
Rock Island, Ill.
Knowingly attending an animal fighting venture (1 count)
Des Plaines Man Indicted, Charged with Possession of Heroin with Intent to DistributeRead the Press Release
PEORIA, Ill. – A Des Plaines, Ill., man, Arriba W. Lewis, 43, was arraigned in federal court today, after a grand jury returned an indictment that charges him with possession of heroin with intent to distribute. The indictment alleges that Lewis possessed with intent to distribute approximately 200 grams of heroin on Jan. 12, 2017.
Lewis appeared before U.S. Magistrate Judge Jonathan E. Hawley, who had previously ordered that Lewis remain detained in the custody of the U.S. Marshals Service pending trial. Lewis was previously charged in a criminal complaint filed on Jan. 13, 2017. According to the affidavit filed in support of the complaint, Illinois State Police stopped Lewis on Jan. 12, for a traffic violation on Interstate 55 in McLean County. Trial has been scheduled for April 3, 2017, before Chief U.S. District Judge James E. Shadid.
The investigation was conducted by the Illinois State Police and the Drug Enforcement Administration in cooperation with the McLean County State’s Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Adam C. Korn.
If convicted, the statutory penalty for the offense of distribution and possession with intent to distribute more than 100 grams of heroin is no less than five years and up to 40 years in prison. If a defendant has previously been convicted of a felony drug offense, the statutory penalty is no less than ten years and up to life in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Co-owner of Chicago Medical Transport Company Sentenced to Five Years in Prison for Overbilling Illinois Medicaid $4.7 MillionRead the Press Release
SPRINGFIELD, Ill. – A Chicago man has been sentenced to five years in prison for fraudulent overbilling an estimated $4.7 million to Illinois’ Medicaid program for non-emergency medical transport. Gregory D. Toran, 68, of Hazel Crest, Ill., was also ordered to pay $4.7 million in restitution. U.S. District Judge Sue E. Myerscough, who sentenced Toran on Jan. 23, allowed Toran to remain on bond until the federal Bureau of Prisons directs him to self-report to a prison facility to begin his prison sentence.
Toran owned IBT Transportation, LLC., a non-emergency medical transport company, with Tina Kimbrough, 44, of Berwyn, Ill. In August, Kimbrough was sentenced to 30 months in prison for her role in the scheme. Kimbrough previously pled guilty to participating in the conspiracy with Toran. Kimbrough was also ordered to pay $4 million restitution, due jointly and severally with Toran.
As a result of the scheme, IBT fraudulently overbilled the state’s Medicaid program by an estimated $4.7 million for services not rendered, not rendered to the extent claimed, and for mileage well in excess of miles actually driven. During the period of the conspiracy, from December 2005 to June 2011, IBT billed and was paid claims totaling approximately $7.3 million.
The court found that IBT billed for deceased individuals and individuals who were not transported because they were in the hospital and billed based on dates individuals were approved for transportation, whether they rode or not. At times, IBT billed for more riders than it could physically transport. Further, the court found that although the handbook mileage rules were straightforward that transportation providers could only bill mileage for the first rider, Toran directed billers to incorrectly bill for mileage - from not billing mileage at all, to billing mileage for all riders, and later, every fourth rider.
The charges were investigated by the Illinois State Police Medicaid Fraud Control Bureau; the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation; and the U.S. Postal Inspection Service. In addition, the Illinois Department of Health and Family Services, which administers Illinois’ Medicaid program, assisted in the investigation. Assistant U.S. Attorneys Gregory K. Harris and Timothy A. Bass prosecuted the case.
Jury Convicts Quincy Farmer for Insurance Fraud SchemeRead the Press Release
SPRINGFIELD, Ill. – A federal jury deliberated for less than two hours before returning guilty verdicts late yesterday on all counts charged in the trial of Dean Mowen, 53, of Quincy, Ill., for his involvement in an insurance fraud scheme. U.S. District Judge Sue E. Myerscough presided over the trial, which began on Jan. 10. Mowen, of the 6900 block of Ellington Road, was allowed to remain on bond pending sentencing, scheduled for May 22, 2017.
Evidence presented by the government during the trial showed that in August 2015, Mowen and co-defendant David Speer traveled to Mississippi. Speer negotiated the purchase price and Mowen paid a local farmer approximately $30,000 cash for a New Holland 8970 tractor and a Case IH 2388 combine. Following the purchase, Mowen added a tractor and combine to his insurance policy at an estimated value of $108,000. Mowen and Speer then agreed that Speer would set the tractor and combine on fire, and on Oct. 1, 2015, Speer set the implements on fire. Mowen then contacted his insurance company to report the estimated loss of $108,000. In response to the insurance company’s request for proof of payment for the tractor and combine, Mowen and Speer provided false receipts that exceeded the true value of the insured implements.
Speer, 68, of the 1500 block of N. 5th Street, Quincy, Ill., previously pled guilty, in August 2016, to conspiracy to commit mail fraud as charged with Mowen. In a separate case, Speer entered a plea of guilty to one count of interstate transportation of stolen property, for transportation in April 2014, of a Case IH 7250 tractor, taken by fraud, from Hancock county, Ill., to St. Charles County, Mo. Speer has been detained since his arrest on June 1, 2016. Speer is scheduled to be sentenced on Feb. 27, 2017.
At sentencing, Mowen faces maximum statutory penalties of up to five years in prison for conspiracy to commit mail fraud (one count) and up to 20 years in prison for the charge of mail fraud (one count). Speer faces up to five years in prison for conspiracy to commit mail fraud (one count) and up to 10 years in prison for interstate transportation of stolen property (one count.) The maximum statutory penalties are prescribed by Congress and are provided here for informational purposes, as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys Crystal C. Correa and Gregory K. Harris are prosecuting the case and represented the government at trial. The charges were investigated by the West Central Illinois Task Force and the Quincy Police Department.
Champaign Man Sentenced for Bank Robberies in East Central Illinois and IndianaRead the Press Release
Urbana, Ill. – A Champaign, Ill., man, Darryl S. Coleman, 30, of the 1200 block of Joanne Lane, has been ordered to serve a total of 137 months (11 years, 5 months) in federal prison for bank robberies in east central Illinois and northwestern Indiana that occurred in October and November 2015.
Coleman appeared yesterday before U.S. District Judge Colin S. Bruce, in Urbana. Judge Bruce ordered that Coleman serve 115 months in prison for the bank robberies at First Financial Bank, Champaign, on Oct. 28, 2015; First Bank in Rantoul on Nov. 10; First Midwest Bank, Danville, on Nov. 17; and, attempted robbery of the Farmers-Merchants National Bank in Paxton, Ill., on Dec. 1, 2015. Judge Bruce ordered that a portion of Coleman’s sentence, 22 months, be served consecutive to the sentence ordered in Indiana.
On June 16, 2016, Coleman was sentenced in the Northern District of Indiana to 63 months in federal prison for robberies of the Horizon Bank in Portage, Ind., on Nov. 2, 2015, and the First State Bank of Porter in Chesterton, Ind. on Nov. 24, 2015.
Coleman was also ordered to pay restitution in the total amount of $20,986; restitution of $9,930 for the Illinois bank robberies, and $11,056 for the bank robberies in Indiana.
Supervisory Assistant U.S. Attorney Eugene L. Miller prosecuted the case in the Central District of Illinois, Urbana Division. The charges were investigated by the FBI and the Champaign, Danville, Rantoul and Paxton Police Departments in east central Illinois.
Coleman has remained in the custody of the U.S. Marshals Service since his arrest on Jan. 25, 2016. Coleman pled guilty to the bank robberies in Illinois in September 2016; he entered his plea of guilty to the Indiana bank robberies in March 2016.
Former Springfield Business Owner Indicted for Alleged Medicaid Fraud SchemeRead the Press Release
SPRINGFIELD, Ill. – A Springfield man whose business supplied incontinence products to Medicaid recipients made his initial appearance in federal court today on charges that he defrauded Illinois’ Medicaid program of more than $500,000. Kevin W. Schaul, 51, of the 3500 block of Tamarak Dr., appeared before U.S. Magistrate Judge Tom Schanzle-Haskins. Trial has been scheduled for Mar. 7, 2017, before U.S. District Judge Sue E. Myerscough. Schaul was released on his own recognizance with conditions.
According to the indictment, Schaul owned and operated Childrite Medical Supply, Inc., from a residence at 201 N. Natchez Trace. Childrite, registered as a corporation in May 2009, supplied incontinence products such as diapers, pull-ups and underpads, to recipients of Medicaid. The corporation was involuntarily dissolved on or about Oct. 10, 2014.
The indictment alleges that from August 2009 through at least September 2013, Schaul repeatedly submitted and caused false claims to be submitted to the Illinois Department of Healthcare and Family Services for delivery of incontinence products. Childrite allegedly represented that the products had been delivered to Medicaid recipients, specifically to special-needs adults and children, when he knew no products were delivered or not delivered in the amount claimed. During the period of the alleged scheme, Childrite submitted more than 19,000 claims for 4,000,000 units, measured as one unit equivalent to one diaper, pull-up, underpad, etc., provided. As a result of the claims submitted, Medicaid paid Childrite approximately $2.3 million.
The indictment alleges that Schaul used the fraudulent Medicaid payments for his personal use, including for clothing, food, entertainment, fuel, travel, mortgage payments and payments to a family member. The indictment estimates the amount of loss to the Medicaid program as more than $500,000.
If convicted, the maximum statutory penalty for each count of health care fraud (five counts) is up to 10 years in prison and fines of up to $250,000.
The charges are the result of investigation by the Illinois State Police Medicaid Fraud Control Bureau and the U.S. Department of Health and Human Services, Office of Inspector General. The Illinois Department of Healthcare and Family Services, Office of Inspector General provided assistance in the investigation. Assistant U.S. Attorney Timothy A. Bass 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.
Rushville Woman Pleads Guilty to Defrauding Former EmployerRead the Press Release
SPRINGFIELD, Ill. – Sentencing has been scheduled in March 2017 for a Rushville woman, Amy Ward, 30, who pled guilty yesterday to embezzling $486,510 from her former employer, a Beardstown farmer. Ward, waived indictment and pled guilty to one count of bank fraud as charged in the information filed by the U.S. Attorney’s Office for the Central District of Illinois. Ward appeared before U.S. Magistrate Judge Tom Schanzle-Haskins. Ward was released on bond pending sentencing, which is scheduled on Mar. 27, 2017.
According to court documents, Ward began working as a bookkeeper for Marty Turner Farms in September 2010. Only Turner and his wife, co-owners of Marty Turner Farms, were authorized to sign the business’s checking accounts. When the Turners anticipated being away from the business for any extended period, they had the practice of leaving pre-signed checks with Ward so that Ward could fill in the necessary information and issue checks to vendors in their absence.
Ward admitted that beginning in late March 2011, and continuing to May 2015, she wrote pre-signed checks to herself or to her husband, which she then endorsed and deposited into the account she shared with her husband. Ward created fraudulent entries in the business’s accounting software program to reflect that the checks issued to herself and her husband were issued to legitimate vendors. The practice continued until May 2015, when Ward was confronted by her employer. In total, Ward issued 107 fraudulent checks for a total amount of $486,510.
The statutory maximum penalty for bank fraud is up to 30 years in prison as prescribed by Congress and provided here for informational purposes, as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The defendant may also be ordered to pay restitution.
Assistant U.S. Attorney Victor B. Yanz is prosecuting the case. The Federal Bureau of Investigation and the Cass County Sheriff's Office conducted the investigation.
Jury Convicts Kankakee County Man for Bank Fraud Related to Construction LoansRead the Press Release
PEORIA, Ill. – A federal jury deliberated for three hours today before returning guilty verdicts on all counts charged in the trial of Daniel Ballard, 57, of Bourbonnais, Ill., for bank fraud. Chief U.S. District Judge James E. Shadid presided over the trial in Peoria and scheduled sentencing for March 27, 2017. Ballard was allowed to remain on bond pending sentencing.
Evidence presented by the government during the trial, which began on Tuesday, Nov. 29, showed that Ballard obtained a construction loan in December 2009, in the amount of $280,000, to build a residence at 3013 Stone Fence Drive in Bourbonnais. As part of the fraud scheme, and to obtain money from the bank to build the residence, Ballard obtained additional construction loans to build or remodel buildings on other properties he owned in Bradley, Ill.: 411 N. Center; 248 N. Center; and 471 N. Grand. An explicit term of the construction loan disbursing agreement required that work for which Ballard was requesting payment be completed before the bank would disburse funds to the title company.
From December 2009 to May 2012, as part of the scheme to defraud, evidence showed that Ballard falsely stated or caused others to falsely state in documents submitted to the title company that costs had been incurred for labor and / or materials for construction at the Bradley, Ill., properties. In fact, the costs of labor and materials were substantially below the amount represented or were not furnished to the Bradley properties at all.
At sentencing, the maximum statutory penalty for each of the three counts of bank fraud, up to 30 years in prison and fines up to $250,000, 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.
Assistant U.S. Attorney Eugene M. Miller is prosecuting the case. The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General conducted the case investigation.
Florida Men to Serve Three Years in Federal Prison for Fraudulent Credit Card ConspiracyRead the Press Release
ROCK ISLAND, Ill. – Two Florida men have been ordered to serve three years in federal prison for stealing and using credit card information. Osiel Valdes-Perez, 22, and Felix Alain Delgado-Martinez, 39, both of Miami Gardens, were each sentenced yesterday, Nov. 16, for participating in a fraudulent credit card conspiracy and possession of fraudulent credit cards. In addition to the prison term, U.S. District Judge Sara Darrow ordered each of the men to pay $5,243 in restitution to victims of the offense.
Valdes-Perez pled guilty to the conspiracy and possession offenses on Feb. 18, 2016, and Delgado-Martinez entered his guilty plea on Mar.3, 2016. Another co-defendant, Pedro Enrique Quevedo-Perez, pled guilty on Oct, 12, 2016, and is scheduled to be sentenced on Feb. 16, 2017.
The defendants admitted that in May and June 2015, they used skimming devices, placed in gas pumps in the Rock Island area, to collect account data from swiped cards. The stolen account information was then used to purchase gift cards and small electronics.
Assistant U.S. Attorney Meredith DeCarlo prosecuted the case. The charges were investigated by the U.S. Secret Service and the Moline Police Department.
Quincy Woman Charged with Distribution of Heroin Resulting in DeathRead the Press Release
SPRINGFIELD, Ill. – A Quincy, Ill., woman, Andrea Nicole Tate, 39, made her initial appearance in federal court last week, on Nov. 10, after a grand jury returned an indictment that charges her with distribution of heroin that resulted in death. The indictment alleges that Tate, of the 400 block of N. 7th Street, distributed and possessed with intent to distribute heroin on June 24, 2016, and that death resulted from use of the heroin.
Tate appeared before U.S. Magistrate Judge Tom Schanzle-Haskins, who ordered that Tate remain detained in the custody of the U.S. Marshals Service pending trial. A trial date of Jan. 3, 2017, has been scheduled.
The investigation was conducted by the West Central Illinois Task Force and the Quincy Police Department. Assistant U.S. Attorney Crystal Correa is prosecuting the case.
If convicted, the statutory penalty for the offense of distribution and possession with intent to distribute heroin and death and serious bodily injury resulted is no less than 20 years and up to life in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Former U.S. Representative Aaron Schock Indicted for Fraud, Theft of Government Funds, False Statements and Filing False Income Tax ReturnsRead the Press Release
SPRINGFIELD, Ill. – A federal grand jury returned an indictment today charging former U.S. Representative Aaron Schock with allegedly defrauding the federal government and his campaign committees and covering it up with false and fraudulent statements, claims and invoices.
“I appreciate the time and attention that the grand juries have given this matter, to thoroughly review the facts and the evidence and to reach this decision,” said U.S. Attorney Jim Lewis, Central District of Illinois. “These charges allege that Mr. Schock deliberately and repeatedly violated federal law, to his personal and financial advantage. Mr. Schock held public office at the time of the alleged offenses, but public office does not exempt him or anyone else from accountability for alleged intentional misuse of public funds and campaign funds.”
According to allegations in the 24-count indictment, from as early as 2008, and continuing to at least October 2015, Schock, 35, of Peoria, engaged in a scheme to defraud the government, his campaign committees, and others for his direct personal benefit and for the benefit of others. Schock allegedly repeatedly submitted and caused false and fraudulent claims, invoices, and vouchers to be submitted to the U.S. House of Representatives (House) for payment from his Member’s Representational Allowance and from funds of his campaign committees: Schock for Congress (SFC); Schock Victory Committee (SVC); and GOP Generation Y Fund (Gen Y).
Schock allegedly generated income to himself, which resulted in a loss of more than $100,000 to the government, Schock’s campaign committees, and others. In addition, Schock is charged with filing false federal income tax returns for tax years 2010 through 2015, for failure to report additional income he received.
Several of the alleged instances of fraud from the indictment are summarized below:
- From as early as 2008 and continuing to about October 2014, Schock received total mileage payments from the House and his campaign committees of approximately $138,663, for official and campaign-related travel. Assuming all of the miles driven on Schock’s vehicles were official and campaign-related, and no personal miles were driven during this time period, Schock allegedly caused the House and his campaign committees to reimburse him for approximately 150,000 miles more than the vehicles were actually driven.
- In July 2014, Schock caused Schock for Congress to purchase a new 2015 Chevrolet Tahoe for him at a total cost of $73,896. Schock then caused the Tahoe to be titled in his name. To accomplish the purchase, Schock caused SFC to purchase his used 2010 Tahoe from him for $31,621. He then caused SFC to trade in the 2010 Tahoe with a $26,000 used car or trade-in allowance, and wrote a SFC check to the dealership for $73,896, thus causing a loss to SFC. As part of the scheme, and to conceal and cover it up, Schock allegedly caused SFC to file a false report with the Federal Election Commission (FEC) that the entire $73,896 payment was for a transportation expense of SFC rather than the purchase of a vehicle for Schock’s exclusive use. Schock allegedly made no effort to reimburse SFC for his personal use of the 2015 Tahoe.
- Schock allegedly caused the House to fraudulently reimburse him $29,021 for his September 2014 purchase of camera equipment. The equipment was for his use and the use of a congressional and campaign staff member who was also his personal photographer and videographer. In November 2014, Schock allegedly instructed the staff member to create and submit a false invoice for ‘multimedia services’ to Schock’s congressional office. After various changes to the invoice, it was submitted to the House, which authorized payment of $29,021 to the staff member. The funds were deposited in the staff member’s bank account and were later used by the staff member to make direct payments to Schock’s personal credit card account for the camera equipment purchase.
- In late 2013, Schock allegedly accused a former staffer of inappropriately accessing a friend’s social media account and falsely advised the former staffer that the FBI and Capitol Police were investigating the matter. As a result of Schock’s accusation and false representation, the former staffer retained a lawyer and incurred legal fees of more than $10,000, which were paid by the former staffer’s father. Schock later acknowledged that his allegation of a law enforcement investigation of the matter was false and after being confronted by the former staffer’s father, agreed to reimburse the former staffer’s father for $7,500 of the legal fees. In February 2014, Schock allegedly wrote a check for $7,500 payable to the former staffer’s father. In April 2014, Schock had his political director issue a check from Gen Y to him in the amount of $7,500, which was falsely reported to the FEC as payment to a Washington D.C. attorney for legal fees incurred by Gen Y. In addition, Schock allegedly caused Gen Y to pay legal expenses that he personally incurred, and to file additional false reports with the FEC that the payment was for Gen Y’s legal fees.
- In November 2014, Schock hired an Illinois decorator, who in 2010 had decorated Schock’s Peoria apartment and Cannon congressional office, to redecorate and provide furnishings for his Rayburn congressional office at a cost of approximately $40,000, including a $5,000 chandelier. Schock allegedly caused vouchers and claims to be submitted to the House totaling $25,000 to be paid to the decorator. In the submission of the vouchers and claims, Schock allegedly made false representations that the claims were, “for services to assist the member in setting up our district and DC offices” and, “includes using materials from our district and rearranging/designing/structuring the space to best suit the member and staff’s needs.” In addition, Schock caused his three campaign committees to pay a total of approximately $8,263 in additional costs for carpentry, paint, and travel and lodging expenses for the decorator/designer, who provided no product or service to these committees.
A summons will be issued to Schock by the U.S. Clerk of the Court for a date when Schock is to appear in federal court in Springfield for initial appearance and arraignment.
Assistant U.S. Attorney Timothy A. Bass and First Assistant U.S. Attorney Patrick D. Hansen are prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The charges are being investigated by the FBI, Springfield Division; IRS Criminal Investigations; U.S. Postal Inspection Service, Chicago Division; FDIC Office of Inspector General; and the Illinois State Police. These agencies participate in the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force.
U.S. Attorney Lewis thanked the investigative agencies and commended their respective agents who he said, “have worked long, hard and well to present this matter fairly.”
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
If convicted, the maximum statutory 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 table below lists the counts charged in the indictment and the maximum statutory penalty for each respective charge.
Number of Counts
Charge
Maximum Statutory Penalty
Nine
Wire Fraud
20 years in prison
Five
Falsification of Federal Election Commission Filings
20 years in prison
One
Mail Fraud
20 years in prison
One
Theft of Government Funds
10 years in prison
Two
False Statements
5 years in prison
Six
Filing False Federal Income Tax Returns
3 years in prison
Springfield Psychiatrist Ordered to Pay $908,000 in Civil SettlementRead the Press Release
SPRINGFIELD, Ill. – U.S. District Judge Sue E. Myerscough has entered judgment in favor of the government and against a Springfield psychiatrist, Duttala Obul Reddy, for $908,000, to settle allegations of false billing, as announced by U.S. Attorney Jim Lewis.
According to a complaint filed in September 2015, by the government, from January 2008 through February 2013, Reddy allegedly submitted bills for evaluation and management services provided at long-term care facilities that either had not been provided or had not been provided to the extent claimed. These services were provided to residents of central Illinois nursing homes, including Liberty Village, Pittsfield; Prairie Village, Rantoul; Mason City Nursing Home; Heritage Manor, Gillespie; Beverly Farm, Godfrey; and, North Church Rehabilitation, Jacksonville.
Under the terms of the settlement agreement, Reddy denies the allegations that he submitted or caused submission of false claims for payment under Medicare and Medicaid for medical services.
In addition to payment of $908,000, Reddy has agreed to his exclusion from participation in Medicare, Medicaid and all other federal health care programs for a period of 10 years. Following the 10-year period, Reddy may submit a written request for reinstatement to the Office of Inspector General for the U.S. Department of Health and Human Services. Reddy further agrees that the termination of his eligibility to participate in the Illinois Medical Assistance Program, which became effective Dec. 30, 2014, shall be permanent.
Assistant U.S. Attorneys Gregory M. Gilmore and Lillian N. Stewart of the Central District of Illinois represented the government. The U.S. Department of Health and Human Services, Office of Inspector General, and the Illinois State Police, Medicaid Fraud Control Unit, conducted the investigation.
Champaign Felon Sentenced to Maximum 10 Years in Prison for Weapons ChargeRead the Press Release
URBANA, Ill. – Kevin Pettis, aka KP, 37, of the 400 block of South State Street, Champaign, was sentenced today to the maximum 120 months in federal prison for illegal possession of a firearm by a felon, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. Pettis has been in the custody of the U.S. Marshals Service since his federal arrest in December 2015. Pettis was also ordered to remain on supervised release for three years following his release from prison.
On July 8, 2016, a jury convicted Pettis following a two-day trial. During the trial, the government presented evidence to establish that on July 7, 2013, around 3:18 a.m., Pettis fired a Taurus, .40 caliber semi-automatic pistol from a vehicle in the parking lot of the Oakwood Trace Apartments in north Champaign. When a woman reported the shooting, Pettis drove to his apartment and tried to hide the pistol in his jacket in his apartment. Officers of the Champaign Police Department arrested Pettis minutes later as he was walking away from the apartment. After obtaining a search warrant for his apartment, officers located and recovered the stolen, loaded gun. At the time, Pettis had seven prior felony convictions. Officers later found gunshot residue on Pettis’ hand and Pettis’ DNA on the gun, which had been used in another shooting in Champaign less than a month earlier.
According to court documents, Pettis has twice before shot other individuals and has three prior felony convictions for aggravated battery, plus convictions for theft, unlawful possession of a weapon, reckless discharge of a firearm, possession of cocaine with the intent to distribute it, and theft. He also has two misdemeanor battery convictions, two DUI convictions, and convictions for obstructing a peace officer.
The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Champaign Police Department investigated the case.
Rock Island Man Sentenced to 25 Years in Prison for Heroin Distribution Resulting in DeathRead the Press Release
Rock Island, Ill. – U.S. District Judge Sara Darrow today sentenced Phil Trent, 52, of Rock Island, to serve 25 years in federal prison for distributing and conspiring to distribute heroin that resulted in the death of a 21 year old man in August 2014.
On July 1, 2016, a jury convicted Trent on all counts charged related to his distributing and conspiring to distribute heroin in the Rock Island area from early July through September 2014. Evidence presented by the government at trial demonstrated that directly or through co-conspirators, Trent distributed heroin to undercover agents on three specific occasions: Aug. 13, Oct. 1, and Oct. 2, 2014. The jury also convicted Trent for distribution of heroin that resulted in the death of Tyler Corzette, on Aug. 29, 2014.
Two other defendants, Kyle Hull and Curtis Land, both pled guilty in May 2015, to their respective role in distributing the fatal dose of heroin to Corzette. On Aug. 17, 2016, the two were sentenced to federal prison; Hull to serve eight years; Land to serve 11 years.
The Rock Island Police Department, with assistance from the Quad City Metropolitan Enforcement Group, investigated the charges. The case was prosecuted by Assistant U.S. Attorneys Don Allegro and Meredith DeCarlo.
Election Officers Designated in Central District of IllinoisRead the Press Release
Springfield, Ill. – U.S. Attorney Jim Lewis announced today the appointment of District Election Officers in the Central District of Illinois in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. Assistant U.S. Attorneys appointed to serve as election officers in each of the district’s four divisions include: Gregory M. Gilmore in the Springfield headquarters office; David H. Hoff in the Urbana branch office; Darilynn J. Knauss in Peoria; and, John K. Mehochko in Rock Island. District election officers are responsible for overseeing the district’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department headquarters.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
To respond to complaints of election fraud or voting rights abuses on Nov. 8, 2016, and to ensure such complaints are directed to the appropriate authorities, designated election officers will be available in each of the district’s four offices on Nov. 8, while the polls are open. Election officers may be reached by the public at the following telephone numbers:
Springfield: Assistant U.S. Attorney Gregory M. Gilmore, 217-492-4450;
Urbana: Assistant U.S. Attorney David H. Hoff, 217-373-5875;
Peoria: Assistant U.S. Attorney Darilynn J. Knauss, 309-671-7050; and,
Rock Island: Assistant U.S. Attorney John K. Mehochko, 309-793-5884.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI office in the Central District of Illinois can be reached by the public at 217-522-9675.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC, by phone at 1-800-253-3931 or 202-307-2767, by fax at 202-307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
Decatur Man Sentenced to Life in Prison for Murder Conspiracy, Armed RobberyRead the Press Release
Urbana, Ill. – U.S. District Judge Colin S. Bruce today sentenced Kelton Snyder, 24, of Decatur, Ill., to life in prison for conspiring to murder a witness, Paige Mars, also of Decatur, in April 2015. Under federal statute, there is no parole or early release for a defendant serving a life sentence for conspiracy to murder a witness.
“Because of defendant Snyder’s actions, a young woman’s life ended in a violent and senseless act,” said U.S. Attorney Jim Lewis. “The result of investigative work by our partner law enforcement agencies, together with the U.S. Attorney’s office, to investigate and prosecute these crimes, holds Snyder accountable, and in prison, for the rest of his life.”
“The arrest and sentencing of Snyder highlights how the teamwork of our federal and local law enforcement partners continues to remove violent criminals from our streets,” said Sean Cox, FBI Special Agent in Charge. “We are committed to aggressively search, locate and apprehend violent criminals to make our neighborhoods safer.”
In April 2016, a jury convicted Snyder for conspiring to murder Paige Mars, 19, after Snyder and his co-conspirator robbed the Circle K convenience store at 1685 South Baltimore in Decatur on April 3, 2015. Snyder had previously pled guilty, on Mar. 7, 2016, to committing the armed robbery, brandishing a 12-gauge shotgun during the robbery, and that he was a convicted felon, legally barred from possession of firearms, when he committed the robbery.
During four days of trial, the government presented evidence that Snyder met with his co-conspirator on April 5, 2015, because he feared that Mars, who served as the robbery getaway driver, might go to law enforcement about the robbery. The government presented evidence, including surveillance camera recordings of the robbery, where Snyder is clearly seen holding a shotgun, the same weapon used to murder Mars. Evidence also included text and Facebook messages that Mars questioned Snyder about information she had heard, that Snyder was violent to women. Mars’ body was found on April 6, 2015, in the vicinity of the sanitation district. Also on April 6, officers executed a search warrant at Snyder’s grandmother’s home, where Snyder had been living in a basement bedroom, in the 300 block of S. 19th Street, Decatur. Officers recovered 20-gauge and 12-gauge shotgun shells from Snyder’s bedroom. On May 15, 2015, officers recovered a Mossberg 12-gauge shotgun hidden along a path in the sanitation district, which was the shotgun used during the robbery and in the murder.
The case was 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.
Rock Island Man Sentenced for Possessing Firearm as a FelonRead the Press Release
Rock Island, Ill. – Michael Andrew Ford, 22, of Rock Island, Ill., was sentenced today for possessing firearms and ammunition as a felon, announced U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge Sara L. Darrow ordered Young to serve a term of 57 months in federal prison.
Ford entered a plea of guilty on June 16, 2016, to the charge. On Dec. 2, 2015, Rock Island police investigating an apparent drug robbery and shooting sent out an officer safety advisory that Ford and two other individuals might attempt to retaliate against the alleged robber and shooter, an individual residing in Moline, Ill. A few hours later, during the early morning hours of Dec. 3, 2015, Moline police spotted Ford and the two other individuals and stopped their car. Ford and the others were searched. Ford was carrying a loaded .38 caliber handgun with an obliterated serial number. Ford previously had been convicted of felony offenses by courts in the State of Illinois.
The case was prosecuted by Assistant U.S. Attorney Don Allegro. The charges were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Moline Police Department, and the Rock Island Police Department.
Indiana Man Sentenced for Possessing Firearms as a FelonRead the Press Release
Rock Island, Ill. – Gregory F. Young, 37, of South Bend, Ind., was sentenced today for possessing firearms and ammunition as a felon, announced U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge Sara L. Darrow ordered Young to serve a term of 84 months in federal prison.
Young entered a plea of guilty on June 16, 2016, and admitted that on November 20, 2015, he and his girlfriend, while driving westbound on Interstate 80 in Henry County, Illinois, were pulled over by a trooper of the Illinois State Police for a traffic violation. Young, who was found to be the subject of an arrest warrant from Indiana for a parole violation, was arrested. A subsequent search of his car revealed a loaded .40 caliber semi-automatic pistol, an SKS semi-automatic assault rifle with nine magazines and over 200 rounds of 7.62mm ammunition, and quantities of marijuana and heroin. Young previously had been convicted of felony offenses in courts in the state of Indiana.
According to court documents, Young told police that he acquired the weapons for protection because there was “a hit out” on him related to a dispute over drug money.
The case was prosecuted by Assistant U.S. Attorney Don Allegro. The charges were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Illinois State Police.
Colorado and Illinois Men Sentenced to Prison for Engaging in Child Exploitation EnterpriseRead the Press Release
WASHINGTON – Two members and administrators of a highly sophisticated, global enterprise dedicated to the sexual exploitation of children were sentenced to prison, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney James A. Lewis of the Central District of Illinois and Special Agent in Charge Sean Cox of the FBI’s Springfield, Illinois, Division.
Brian W. Davis, 51, of Farmer City, Illinois, was sentenced to 360 months in prison for engaging in a child exploitation enterprise and two counts of production of child pornography, along with a lifetime term of supervised release. David Delalio, 38, of Longmont, Colorado, was sentenced to 210 months in prison for engaging in a child exploitation enterprise and a 15-year term of supervised release. U.S. District Judge Colin S. Bruce of the Central District of Illinois imposed the sentences yesterday and also ordered Davis to pay $164,000 in restitution and a $55,000 fine. Davis pleaded guilty on July 15, 2015 and has remained in the custody of the U.S. Marshals Service since his arrest on Oct. 8, 2014. Delalio pleaded guilty on July 20, 2015.
“Child predators seek out online forums on anonymous networks, like the one that Davis and Delalio operated, so that they can commit vile crimes without getting caught,” said Assistant Attorney General Caldwell. “But the sentencing of the leaders of this forum—along with the recent sentencings of three of their co-defendants—should give other online predators pause. While identifying and apprehending these criminals is difficult, it is not impossible, and we will use every legal authority we have to root out these predators and protect children from harm.”
“We must protect our children, if we wish to have a decent society," said U.S. Attorney Lewis. “So we must investigate and prosecute those who use our children for sexual enjoyment, and those who facilitate this abuse.”
According to the government’s sentencing memoranda, Davis and Delalio acted as members and co-administrators of a highly-sophisticated global enterprise dedicated to the sexual exploitation of children, organized via a members-only website that operated on the Tor anonymity network, through which he and others posted thousands of messages containing images of sexual exploitation involving pre-pubescent children. As of July 2014, the website hosted nearly 30,000 members, who were required to share illicit child pornography images in order to gain and keep membership, including numerous child pornography producers who were actively abusing children, according to the government’s memorandum. In addition, the sentencing memo shows that site members employed advanced technological means in order to undermine law enforcement’s attempts to identify them, including the use of a hidden service on the Tor anonymity network and elaborate file encryption.
The sentencing memos also state that Davis was the co-administrator of an exclusive “Producers” section of the website, where he acted as a gatekeeper and actively recruited and advised other members on how to sexually abuse minors and produce child pornography for the website. Davis’s contributions to the website and his own produced materials focused predominantly on a sexual interest in infants and toddlers. Davis also sexually assaulted and produced child pornography involving numerous minors who were entrusted to his care while he was employed by a child care facility in Champaign County, Illinois.
Delalio and Davis were the fourth and fifth members, respectively, to be sentenced for their involvement in the Tor-network based enterprise. On July 15, 2016, Jason Gmoser was sentenced to serve life in prison for engaging in a child exploitation enterprise. Gmoser was also sentenced to 30 years and 20 years to be served concurrent to the life sentence for conspiring to advertise and conspiring to distribute child pornography, respectively. On Sept. 2, 2016, Dakota Martin was sentenced to serve 20 years in prison to be followed by 25 years of supervised release for engaging in a child exploitation enterprise and production of child pornography. On March 14, 2016, Andrew Hoff was sentenced to serve 17.5 years in prison to be followed by 20 years of supervised release for engaging in a child exploitation enterprise.
The FBI’s Springfield Field Office and Violent Crimes Against Children Section’s Major Case Coordination Unit and Digital Analysis and Research Center led the investigation of this case. Acting Assistant Deputy Chief Keith Becker and Trial Attorney Elly Peirson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) 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 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.
Colorado and Illinois Men Sentenced to Prison for Engaging in Child Exploitation EnterpriseRead the Press Release
Three Others Previously Sentenced to Prison for Illicit Activity on Child Pornography Website Based on Tor Network
Two members and administrators of a highly sophisticated, global enterprise dedicated to the sexual exploitation of children were sentenced to prison, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney James A. Lewis of the Central District of Illinois and Special Agent in Charge Sean Cox of the FBI’s Springfield, Illinois, Division.
Brian W. Davis, 51, of Farmer City, Illinois, was sentenced to 360 months in prison for engaging in a child exploitation enterprise and two counts of production of child pornography, along with a lifetime term of supervised release. David Delalio, 38, of Longmont, Colorado, was sentenced to 210 months in prison for engaging in a child exploitation enterprise and a 15-year term of supervised release. U.S. District Judge Colin S. Bruce of the Central District of Illinois imposed the sentences yesterday and also ordered Davis to pay $164,000 in restitution and a $55,000 fine. Davis pleaded guilty on July 15, 2015 and has remained in the custody of the U.S. Marshals Service since his arrest on Oct. 8, 2014. Delalio pleaded guilty on July 20, 2015.
“Child predators seek out online forums on anonymous networks, like the one that Davis and Delalio operated, so that they can commit vile crimes without getting caught,” said Assistant Attorney General Caldwell. “But the sentencing of the leaders of this forum—along with the recent sentencings of three of their co-defendants—should give other online predators pause. While identifying and apprehending these criminals is difficult, it is not impossible, and we will use every legal authority we have to root out these predators and protect children from harm.”
“We must protect our children, if we wish to have a decent society," said U.S. Attorney Lewis. “So we must investigate and prosecute those who use our children for sexual enjoyment, and those who facilitate this abuse.”
According to the government’s sentencing memoranda, Davis and Delalio acted as members and co-administrators of a highly-sophisticated global enterprise dedicated to the sexual exploitation of children, organized via a members-only website that operated on the Tor anonymity network, through which he and others posted thousands of messages containing images of sexual exploitation involving pre-pubescent children. As of July 2014, the website hosted nearly 30,000 members, who were required to share illicit child pornography images in order to gain and keep membership, including numerous child pornography producers who were actively abusing children, according to the government’s memorandum. In addition, the sentencing memo shows that site members employed advanced technological means in order to undermine law enforcement’s attempts to identify them, including the use of a hidden service on the Tor anonymity network and elaborate file encryption.
The sentencing memos also state that Davis was the co-administrator of an exclusive “Producers” section of the website, where he acted as a gatekeeper and actively recruited and advised other members on how to sexually abuse minors and produce child pornography for the website. Davis’s contributions to the website and his own produced materials focused predominantly on a sexual interest in infants and toddlers. Davis also sexually assaulted and produced child pornography involving numerous minors who were entrusted to his care while he was employed by a child care facility in Champaign County, Illinois.
Delalio and Davis were the fourth and fifth members, respectively, to be sentenced for their involvement in the Tor-network based enterprise. On July 15, 2016, Jason Gmoser was sentenced to serve life in prison for engaging in a child exploitation enterprise. Gmoser was also sentenced to 30 years and 20 years to be served concurrent to the life sentence for conspiring to advertise and conspiring to distribute child pornography, respectively. On Sept. 2, 2016, Dakota Martin was sentenced to serve 20 years in prison to be followed by 25 years of supervised release for engaging in a child exploitation enterprise and production of child pornography. On March 14, 2016, Andrew Hoff was sentenced to serve 17.5 years in prison to be followed by 20 years of supervised release for engaging in a child exploitation enterprise.
The FBI’s Springfield Field Office and Violent Crimes Against Children Section’s Major Case Coordination Unit and Digital Analysis and Research Center led the investigation of this case. Acting Assistant Deputy Chief Keith Becker and Trial Attorney Elly Peirson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) 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 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.
South Pekin Man Sentenced to 20 Years in Prison for Distribution of Child Pornography and Impersonating U.S. MarshalRead the Press Release
Peoria, Ill. – Chief U.S. District Judge James E. Shadid sentenced Arthur D. Wheeler, 31, of South Pekin, Ill., to serve 20 years in prison for distribution of child pornography and impersonating a federal officer. Wheeler appeared yesterday before Judge Shadid, who ordered that Wheeler remain on supervised release for a period of five years following completion of his prison term. Wheeler pled guilty to the charges on Feb. 25, 2016.
Assistant U.S. Attorney Ronald L. Hanna prosecuted the case. The charges were the result of an investigation conducted by the U.S. Secret Service; task force members of the Central Illinois Cyber Crime Unit, including the Peoria County Sheriff’s Office and the Bloomington Police Department; the Pekin Police Department; Illinois State Police; and the U.S. Marshal’s Service.
According to court documents, in May 2015, Wheeler obtained nude photos on his phone from a minor female in Missouri and by accessing the minor’s Facebook account. Wheeler appeared June 1, 2015, in the Circuit Court of Tazewell County seeking an order of protection against the minor’s family. Wheeler stated to the court that the minor’s family had threatened him because of his communications with the minor during the preceding two weeks. During the court proceeding, Wheeler produced his phone, which was ultimately seized and examined by law enforcement. The forensic review revealed that on three separate occasions, in late May and early June 2015, Wheeler used the cellphone’s text function to send naked images of the minor to approximately 120 people in the area code where the minor lives. Wheeler also acknowledged that on June 1, 2015, he impersonated a U.S. Marshal in an attempt to get information from an individual about the minor’s whereabouts.
Wheeler is a registered sex offender as a result of a prior conviction for a sex crime involving a minor in Illinois in 2011. He has remained in the custody of the U.S. Marshals Service since he was arrested on Aug. 24, 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.
Illinois Attorney General Madigan & U.S. Attorney Lewis Meet with Kankakee County State's Attorney's Office to Ensure Fair, Open and Legal Election in Kankakee CountyRead the Press Release
Chicago – Attorney General Lisa Madigan, U.S. Attorney James A. Lewis for the Central District of Illinois and officials with the Illinois State Board of Elections today met with Kankakee County State’s Attorney Jamie Boyd and an official from the Kankakee County Clerk’s office to ensure a fair, open and legal election this fall that allows all residents to vote equally without obstacles or intimidation by law enforcement officials or offers in exchange for votes, all of which are prohibited by law.
“We are committed to ensuring that we hold a fair, open and legal election and that all voters’ rights are protected,” Madigan said.
“The voting process is central to our democratic system,” Lewis said. “We came to Kankakee County today and had a good discussion with the State’s Attorney and other officials intended to ensure that each and every person can vote fairly and properly.”
They discussed complaints, including allegations of some minority voters being subject to unnecessary requirements and misinformation about their ability to cast their vote, law enforcement officials intimidating voters and questioning people who drove them to vote, and offers in exchange for casting ballots.
Voters and county election officials are reminded that current law allows for voters to register to vote and cast their ballot at the same time during both the early voting process and on General Election Day following a Tuesday ruling by the U.S. Court of Appeals for the 7th Circuit.
Attorney General Madigan also reminded voters of some of their basic voting rights during the early voting process:
- Voters have the right to register to vote and cast their vote at the same time.
- If your registration is active and current, you do not need to show identification to cast your vote. If your registration is not active, there are circumstances in which you are required to show identification in order to vote.
- If your voter registration is in “inactive” status and your address has changed, in order to vote the same day you may be asked to show identification of your current address.
- If your voter registration is “canceled,” you will need to re-register and must show two forms of identification. The most common forms of identification include a driver’s license or a utility bill, one of which must show your current address.
- If a voter makes a mistake or “spoils” a paper ballot and the voter has not cast the ballot, the voter has the right to receive a replacement ballot (10 ILCS 5/17-11).
- If a voter cannot read, has trouble understanding English, or has a disability, that voter has the right to request assistance from anyone other than his or her employer, an agent of his or her employer, or an officer or agent of his or her union (10 ILCS 5/17-14).
- No one is allowed to try to influence a voter within 100 feet of the polling place (10 ILCS 5/17-29).
Pike County, Ill., Man Convicted for Transportation of a Minor with Intent to Engage in Illegal Sexual ActivityRead the Press Release
Springfield, Ill. - A jury has convicted a New Canton, Ill., man, Ralph David Hathaway, 47, for transportation of a minor with the intent to engage in illegal sexual activity and two counts of travel with intent to engage in illicit sexual conduct. The jury deliberated for approximately one hour on Friday, Sept. 30, before returning the guilty verdicts on all counts. Senior U.S District Judge Richard Mills scheduled sentencing for Hathaway on Feb. 15, 2017.
At trial, which began on Monday, Sept. 26, the government presented evidence that over a two-year period, beginning in 2013, Hathaway traveled on several occasions from his home in Pike county to South Carolina to have illegal sexual activity with a 13-year-old girl whom Hathaway had met online. The jury also heard evidence that in June 2015, Hathaway transported the girl from South Carolina to his camper located in Troy, Missouri.
At sentencing, Hathaway faces statutory penalties of no less than 10 years in prison and up to life in prison. Hathaway has remained in the custody of the U.S. Marshals Service since he was arrested in July 2015 in Troy, Mo.
The charges are the result of an investigation by the Federal Bureau of Investigation, 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. At trial, the government was represented by Assistant U.S. Attorneys Victor Yanz and Gregory M. Gilmore.
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.
Chicago Businessman Sentenced to Two Years in Prison for Grant Fraud SchemeRead the Press Release
Springfield, Ill. – A Chicago businessman has been ordered to serve 24 months in prison for a fraud scheme that resulted in two state agencies awarding separate, but nearly identical, grants to his not-for-profit entity in September 2008. U.S. District Court Judge Sue E. Myerscough sentenced George E. Smith, 66, and ordered that Smith pay restitution of nearly $500,000 to the state. Judge Myerscough allowed Smith to self-report as directed by the federal Bureau of Prisons to begin serving his prison sentence. Smith waived indictment and pled guilty in March 2016, to two counts of mail fraud and one count of money laundering.
In rendering today’s sentence, Judge Myerscough noted that Smith exploited his personal relationship with a former director of the Illinois Department of Children and Family Services related to a grant in the amount of $450,000 awarded by the agency on Sept. 2, 2008, under the Students at Risk Program. On Sept. 8, 2008, the Illinois Board of Education awarded Smith’s not-for-profit a similar grant in the amount of $342,000. According to the terms of the grants, both provided for similar services to be provided to the same at-risk population in the Chicago area during fiscal year 2009. The populations served, sources of referral, services to be provided, and the goals for each grant were essentially identical. Neither DCFS nor ISBE were aware of the issuance of an identical grant by the other state agency. Smith then converted the duplicate funding to his personal and business use.
Both grants were awarded to Diversified Behavioral Comprehensive Care, a not-for-profit entity owned and operated by Smith. In addition, Smith owned and operated three for-profit entities: Diversified Behavioral Services, Inc., Management Planning Institute, Inc., and the Institute for Positive Child and Family Development. From 2005 through 2011, Smith, through both his not-for-profit and for-profit entities, received millions of dollars in funding from agencies of the state of Illinois, including DCFS, ISBE, and the Illinois Department of Human Services.
Smith further admitted that in February 2009, he caused Illinois DHS to award a third grant of $200,000 to DBCC to provide community services relating to the prevention, intervention, treatment and rehabilitation of alcohol and other drug abuse and dependency. In fact, Smith admitted that he submitted and caused to be submitted false and fraudulent documentation to DHS falsely representing the amount of community services DBCC actually provided under the DHS grant and fraudulently caused DHS to pay DBCC a total of $138,901.
Smith was ordered to pay restitution in the amount of $342,000 to the Illinois State Board of Education and $138,901 to the Illinois Department of Human Services – Division of Alcoholism and Substance Abuse.
Assistant U.S. Attorney Timothy A. Bass prosecuted the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The investigation was conducted by the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG) with the assistance and cooperation of the Office of Inspector General, Illinois Department of Children and Family Services; the Illinois Attorney General; the Illinois Board of Education, and the Illinois Department of Human Services.
Kankakee Area Felon Sentenced to Seven Years in Prison for Weapons ChargeRead the Press Release
Urbana, Ill. - Ladonta A. Tucker, 24, of the 200 block of North Greenwood Ave., Kankakee, Ill., has been ordered to serve 84 months in federal prison for illegal possession of a firearm by a felon, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. Tucker was sentenced on Sept. 12. He has been in the custody of the U.S. Marshals Service since his arrest in December 2015. On April 28, 2016, Tucker entered a plea of guilty to the charge.
According to court documents, around 10:00 p.m. on Dec. 1, 2015, officers with the Bradley Police Department found Tucker and three other individuals in a car with its engine running on Blain Ave., in Bradley, Ill. After smelling the strong odor of marijuana coming from the car, officers searched the car and found in the trunk a fully loaded Taurus, Titanium, .45 caliber five-shot Colt revolver and a loaded Hi-Point, Model JCP, .40 caliber S&W semi-automatic pistol. The revolver had previously been reported stolen and its serial numbers had been obliterated. During a search of Tucker, officers found a baggie containing marijuana, cash, and a black digital scale. Tucker admitted the guns were his and he bought them off the street. At the time of the offense, Tucker had prior felony convictions for aggravated criminal sexual abuse and possession of a controlled substance, both in Kankakee County.
The case is 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. The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Milan Man Sentenced to One Year in Prison for Theft of Veterans BenefitsRead the Press Release
Rock Island, Ill. – Peter W. Cooper, 59, of Milan, Ill., was sentenced today for theft of funds from the Veterans Administration, announced U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge Sara L. Darrow ordered Cooper to serve one year in federal prison and to pay $178,789 in restitution to the Veterans Administration. Judge Darrow ordered that Cooper report to the designated federal Bureau of Prisons facility on Oct. 17, 2016, to begin serving his sentence.
On May 5, 2016, Cooper waived indictment and entered a plea of guilty to an information that charged him with one count of theft of veterans benefits. Cooper admitted that he continued to receive benefit payments that were paid to his adoptive mother after her death in 2003. At the time of her death, Cooper’s mother had been receiving payments from the VA under the Dependency and Indemnity Compensation (DIC) program, based on the previous active duty-connected death of her husband. DIC benefits are paid to surviving spouses until the spouse dies or remarries.
In 2014, by matching VA records with Social Security death records, the VA Office of Inspector General became aware that Cooper's mother had died in 2003 but the payments had continued and were then continuing. Payments were being deposited monthly in a bank account under the name of Cooper and his deceased mother. The VA OIG’s investigation revealed that Cooper, an employee of the Army Corps of Engineers at the Rock Island Arsenal, had been withdrawing the money monthly and spending it or transferring it to other accounts. Until the VA OIG discovered and stopped the payments, Cooper had received and spent $178,789 in DIC funds to which he was not entitled.
The case was prosecuted by Assistant U.S. Attorney Don Allegro and the charges were investigated by the VA Office of Inspector General.
Michigan Man Charged with Sexual Exploitation of Minor in Central IllinoisRead the Press Release
Springfield, Ill. – Jim Lewis, U.S. Attorney for the Central District of Illinois, announced today that a federal grand jury in Springfield has returned an indictment that charges Damian N. Delacruz, 23, of Cadillac, Mich., with three counts of sexual exploitation of a minor and one count of enticement of a minor.
The indictment, returned Sept. 7, alleges that on three occasions, Feb. 25, 2016; Feb. 28, 2016, and Mar. 14, 2016, Delacruz used and coerced a minor in central Illinois to engage in sexually explicit conduct for the purpose of producing visual images of said conduct. The indictment further alleges that from Feb. 19 to Mar. 16, 2016, Delacruz used the internet and a cellular phone to attempt to entice a minor to engage in sexual activity for which a person can be criminally charged under Illinois law.
If convicted, the statutory penalty for each count of sexual exploitation of a minor is a minimum 15 years in prison and up to 30 years in prison plus a fine of up to $250,000. The penalty for enticement of a minor is a minimum 10 years and up to life in prison, plus a fine up to $250,000. Delacruz may also be sentenced to a term of supervised release up to life following any prison sentence.
Delacruz was arrested on Aug. 23, 2016, in Cadillac, Mich., by special agents of U.S. Immigration and Customs Enforcement Homeland Security Investigation. Delacruz will appear in federal court in Springfield at a later date.
The case is being prosecuted by Assistant U.S. Attorney Victor Yanz. The charges are the result of an investigation by the Chatham Police Department and U.S. Immigration and Customs Enforcement Homeland Security 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.
Insurance Agent Charged with Defrauding Clients, Money LaunderingRead the Press Release
Springfield, Ill. – A federal grand jury has indicted a Decatur, Ill., man who worked as an independent insurance agent. The indictment, returned Sept. 7, charges James P. Smith, 60, of the 5400 block of Traughber Road, with a fraud scheme that allegedly exposed clients to a potential loss of more than $250,000 from February 2011 to July 2016.
Smith is currently in custody on charges filed by the Macon County State’s Attorney’s Office. The U.S. Clerk of the Court will schedule a date for Smith to appear for arraignment in federal court in Urbana.
The Federal Bureau of Investigation and the Macon County Sheriff’s Office are conducting the investigation. Assistant U.S. Attorney Eugene L. Miller is prosecuting the case with the cooperation of the Macon County State’s Attorney’s Office.
According to the indictment, from at least February 2011 through July 2016, Smith represented that he was employed by or owned the Prairie State Insurance Agency in Decatur, Ill., and he acted as an independent agent. Smith solicited clients to purchase insurance, including whole life insurance, and financial products, including annuities. As part of the alleged scheme, Smith 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, Smith allegedly used the money for his own benefit.
As alleged in the indictment, Smith requested payments be made payable 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., owned by Smith. Rather than use the clients’ funds as represented, Smith used the money to finance the gas station without his clients’ knowledge. Smith also used his clients’ money to make mortgage payments on his personal residence.
Further, Smith allegedly cancelled or cashed out clients’ insurance policies or annuities without their knowledge or permission, and used the cash value and / or future premiums or payments for his personal benefit, including to pay his personal attorney’s fees, his personal bankruptcy fees, and as purported annuity payments to other clients to prevent them from discovering that he had not purchased their annuities as promised.
If convicted, the statutory maximum penalty for each count of mail fraud (two counts) and wire fraud (one count) is 20 years in prison, and a fine of up to $250,000, and the statutory maximum penalty for the offense of money laundering (one count) is 20 years in prison, and a fine of up to $500,000, or twice the value of property involved in the transactions, whichever is greater.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Former Executive Director of Kankakee Valley Park District Charged with Fraud SchemeRead the Press Release
Springfield, Ill. – A federal grand jury returned an indictment on Sept. 7, that charges Roy Collins, former executive director of the Kankakee Valley Park District, with defrauding the park district and a related not-for-profit organization for his personal benefit. Collins will be issued a summons to appear in federal court in Urbana for arraignment on a date to be determined by the U.S. Clerk of the Court.
Collins, 46, of Kankakee, Ill., was employed as the Executive Director of the Kankakee Valley Park District from 2011 to 2016. The park district also works with the not-for-profit organization known as the Kankakee Valley Park Foundation.
The indictment alleges that Collins accessed and used park district equipment, labor, and funds to benefit himself, including that he used park district equipment and labor to build a pond on his personal property; that he solicited at least one independent contractor to perform work for the park district and on his residence and that he suggested the contractor falsely bill all of the work to the park district; that Collins issued a foundation check to purchase a tarp or pond liner for use on his personal property; that he caused a mower belonging to the park district be kept and used at his personal property; and that he kept and used a park district golf cart at his personal property.
Between about 2013 and 2015, the indictment further alleges that Collins converted park district and park foundation funds intended for annual “BBQ Fest” events to his personal use, including his demand for and receipt of approximately $6,000 in kickback payments from an individual hired in connection with the 2014 and 2015 BBQ Fests; his request that the individual who made the kickback payments falsely represent the purpose of the payments to law enforcement; and his false representations that certain cash withdrawals he controlled were used to pay BBQ Fest expenses, when in fact, a portion of that cash was converted to his personal use.
In addition, Collins allegedly caused false representations to be made to the Kankakee Valley Park District board regarding the park district’s credit card expenses, and he allegedly used the park district 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.
If convicted, the offenses 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.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Charleston Man Charged with Embezzling from Former EmployerRead the Press Release
Springfield, Ill. – A Charleston, Ill., man, James Michael Hill, 39, has been charged by indictment with embezzling from his former employer, a Mattoon restaurant. The indictment, returned Sept. 7, charges Hill, of the 2700 block of Krishire Dr., with embezzling approximately $150,000 from the Stadium Grill restaurant in Mattoon, Ill., when he was employed as a general manager.
According to the indictment, as general manager of the restaurant, Hill could access the restaurant’s accounting system to correct errors made by other employees in entering purchases. From 2009 to August 2013, the indictment alleges that Hill made materially false representations in the Check Adjustment Reports that represented that certain cash sales had not occurred or occurred for a lesser amount, and then took and used the cash generated for his personal use. Further, Hill allegedly falsely represented that certain sales were incorrectly entered into the accounting system as purchases made with cash and fraudulently entered them as purchases made with gift cards. Hill then allegedly took and used the cash generated by those sales for his personal use and benefit.
If convicted, each count of wire fraud (four counts) carries a penalty of up to 20 years in prison and a fine of up to $250,000.
Hill will be issued a summons to appear in federal court in Urbana for arraignment on a date to be determined by the U.S. Clerk of the Court.
The charges are the result of an investigation by the Federal Bureau of Investigation and the Mattoon Police Department. 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.
Louisiana Man Sentenced to 20 Years in Prison for Engaging in Child Exploitation Enterprise and Production of Child PornographyRead the Press Release
A Greenwell Springs, Louisiana, man was sentenced today to serve 240 months in prison for engaging in a child exploitation enterprise and production of child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney James A. Lewis of the Central District of Illinois and Special Agent in Charge Sean Cox of the FBI’s Springfield, Illinois, Division.
Dakota K. Martin, 21, was sentenced by U.S. District Judge Colin S. Bruce of the Central District of Illinois, who also ordered him to serve a 25-year term of supervised release and to forfeit all of his computer equipment. Martin pleaded guilty on Aug. 5, 2015. He has remained in the custody of the U.S. Marshals since his arrest on Nov. 19, 2014.
Martin admitted upon entering his guilty plea to engaging in a child exploitation enterprise and to producing child pornography. According to the second superseding indictment, the enterprise involved an Internet-based, members-only bulletin board the purpose of which was, among other things, the advertisement and distribution of child pornography. Also according to the second superseding indictment, the rules of the website required prospective members to register an account and post child pornography to the satisfaction of board members in order to become a member, and to continue to post images of child pornography to remain in good standing and avoid removal from the site. The website’s rules also required members to upload encrypted child pornography images or videos to an approved website, along with necessary passwords needed to download such images or videos, according to the second superseding indictment. According to a criminal information, in February 2014, Martin also produced child pornography involving a minor victim.
On July 15, 2016, Martin’s co-conspirator Jason Gmoser, 36, of Hamilton, Ohio, was sentenced to serve life in prison for engaging in a child exploitation enterprise. Gmoser was also sentenced to 30 years and 20 years to be served concurrent to the life sentence for conspiring to advertise and conspiring to distribute child pornography, respectively.
The FBI’s Springfield Field Office and the FBI’s Violent Crimes Against Children Section, Major Case Coordination Unit and Digital Analysis and Research Center led the investigation of this case. Acting Assistant Deputy Chief Keith Becker and Trial Attorney Elly Peirson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) 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 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.
Co-owner of Chicago Medical Transport Company Sentenced for Fraudulent Billing SchemeRead the Press Release
Springfield, Ill. – A Chicago woman who previously pled guilty to her role in a scheme to overbill Illinois’ Medicaid program has been sentenced. On Aug. 15, 2016, U.S. District Judge Sue E. Myerscough ordered Tina Kimbrough, 44, of Berwyn, Ill., to serve 30 months in federal prison. Kimbrough and Gregory D. Toran, 67, of Hazel Crest, Ill., owned IBT Transportation, LLC., a non-emergency medical transport company, during the period of the fraud conspiracy, from December 2005 to June 2011.
Toran was convicted of the conspiracy and seven counts of mail fraud following a bench trial before Judge Myerscough, who rendered her guilty verdicts in late July 2016. Kimbrough was also ordered to pay $4 million in restitution, due jointly and severally with Toran, who is scheduled to be sentenced on Nov. 14, 2016. Kimbrough is to self-report as directed by the federal Bureau of Prisons to begin serving her prison term.
In June 2015, Kimbrough pled guilty to participating in the conspiracy with Toran, as well as one count of mail fraud and one count of making false statements. As a result of the scheme, IBT fraudulently overbilled the state’s Medicaid program by an estimated $4.7 million for services not rendered, not rendered to the extent claimed, and for mileage well in excess of miles actually driven.
The charges were investigated by the Illinois State Police, Medicaid Fraud Unit; the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations; the Federal Bureau of Investigation; and the U.S. Postal Inspection Service. In addition, the Illinois Department of Health and Family Services, which administers the Medicaid program for the state of Illinois, assisted in the investigation. Assistant U.S. Attorneys Gregory K. Harris and Timothy A. Bass are prosecuting the case.
Taylorville Man to Serve 4 1/2 Years in Prison for Manufacture of MethamphetamineRead the Press Release
Springfield, Ill. - A Taylorville, Ill., man, Jamal Shehadeh, 33, has been ordered to serve 54 months (4 years, 6 months) in federal prison for manufacturing methamphetamine. U.S. District Judge Richard Mills sentenced Shehadeh on Aug. 9, 2016.
On March 28, 2016, Shehadeh pled guilty to manufacturing methamphetamine in Christian county on or about Feb. 28, 2014.
Shehadeh was arrested in November 2014 and was released on bond in December 2014. He was arrested on June 28, 2016, on a petition to revoke his pretrial release. Since then, he has been detained in the custody of the U.S. Marshals Service.
The case was investigated by the Illinois State Police, the Taylorville Police Department, and the Christian County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Gregory K. Harris.
Springfield Man Sentenced to 3 ½ Years in Prison for Advertising ScamRead the Press Release
Springfield, Ill. – A Springfield, Ill., man, Andrew Miles Ross, was sentenced on Friday, Aug. 5, 2016, to serve 42 months (three years, six months) in federal prison and to pay $14,389 in restitution for operating a telemarketing advertising scam. Ross, 33, of the 3100 block of S. Woodward St., was allowed to self-report to begin serving his prison term at a later date, as directed by the federal Bureau of Prisons.
Ross owned and operated a telemarketing company from 2005 to April 2011, that used various names, including A. Ross and Associates and Coast-to-Coast Advertising, LLC, doing business as Nationwide Advertising and Nationwide Marketing. The company sold advertising space on placemats or take-home menus purportedly to be used by popular Mexican restaurants.
On Aug. 25, 2015, Ross pled guilty to the scheme, which grossed an estimated $900,000 from 2005 to April 2011. As a result of the scheme, Ross defrauded an estimated 6,500 small businesses in more than 32 states.
As part of the scheme, advertising space was sold primarily to small businesses located in the vicinity of Mexican restaurants. The telemarketers falsely represented to the businesses that they were employed by or associated with a local Mexican restaurant that was selling ad space on its placemats or take-home menus. Further, the telemarketers falsely represented a one-time annual fee for purchasing an advertisement, although the checking or credit card accounts of the small businesses were routinely debited without the businesses’ authorization or consent on multiple occasions during the year.
The case was prosecuted by Assistant U.S. Attorney Gregory K. Harris. The investigation was conducted by agents of the FBI and the U.S. Postal Inspection Service. The case was referred to the U.S. Attorney’s Office by the Illinois Attorney General’s Office.
Indiana Gospel Singer Found Guilty of Sexual Exploitation of a Minor and Distribution of Child PornographyRead the Press Release
WASHINGTON – A jury has convicted a Muncie, Indiana, man of 19 counts of sexual exploitation of a minor and one count of distribution of child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Jim Lewis of the Central District of Illinois.
Shawn Shannon, 44, a traveling gospel singer, was convicted yesterday after a three-day trial.
The government presented evidence that 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. 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. Sentencing has been scheduled for Jan. 9, 2017, before U.S. District Judge Colin S. Bruce of the Central District of Illinois.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Decatur Police Department investigated the case. Trial Attorneys Maureen C. Cain and Elly M. Peirson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) 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 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 Found Guilty of Sexual Exploitation of a Minor and Distribution of Child PornographyRead the Press Release
A jury has convicted a Muncie, Indiana, man of 19 counts of sexual exploitation of a minor and one count of distribution of child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Jim Lewis of the Central District of Illinois.
Shawn Shannon, 44, a traveling gospel singer, was convicted yesterday after a three-day trial.
The government presented evidence that 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. 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. Sentencing has been scheduled for Jan. 9, 2017, before U.S. District Judge Colin S. Bruce of the Central District of Illinois.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Decatur Police Department investigated the case. Trial Attorneys Maureen C. Cain and Elly M. Peirson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) 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 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.
Judge Finds Co-Owner of Chicago Medical Transport Company Guilty of Multi-Million Dollar Fraudulent Billing SchemeRead the Press Release
Springfield, Ill. – U.S. District Judge Sue E. Myerscough has rendered verdicts of guilty on all counts against a Chicago man for fraudulent overbilling of an estimated $4.7 million to Illinois’ Medicaid program for non-emergency medical transport. Sentencing for Gregory D. Toran, 67, of Hazel Crest, Ill., is scheduled on Nov. 14, 2016.
Toran owned IBT Transportation, LLC., with Tina Kimbrough, 44, of Berwyn, Ill. In June 2015, Kimbrough pled guilty to participating in the conspiracy with Toran, one count of mail fraud and one count of making false statements. Kimbrough’s sentencing is scheduled on Aug. 15, 2016.
Over 12 days, beginning May 17 and concluding on June 14, the government presented evidence in a bench trial before Judge Myerscough. In the verdict, filed this week, the court found Toran responsible for the company’s fraudulent overbilling to the state of Illinois and Medicaid for services not rendered, not rendered to the extent claimed, and for mileage well in excess of miles actually driven. During the period of the conspiracy, from December 2005 to June 2011, IBT billed and was paid claims totaling approximately $7.3 million. Evidence was presented that IBT overbilled the state’s Medicaid program by an estimated $4.7 million.
Despite rules clearly set forth in the state handbook, the court found that IBT billed for deceased individuals and individuals who were not transported because they were in the hospital. Further, IBT billed based on the dates the individuals were approved for transportation, whether they rode or not, even though route sheets showed who was transported daily. At times, IBT billed for more riders than it could physically transport. Further, the court found that although the handbook mileage rules were straightforward, that transportation providers could only bill mileage for the first rider, Toran directed billers to incorrectly bill for mileage - from not billing mileage at all, to billing mileage for all riders, and later, every fourth rider.
The court also found that various bank accounts and real estate constitute proceeds or property derived from proceeds, obtained by Toran, directly or indirectly, as a result of the offenses of conviction, including: $69,382 representing proceeds from the sale of property at 9544 S. Vanderpoel Ave., Chicago; 1450 W. 112th Place, Chicago; 28 Carrington Court, Hazel Crest, Ill.; $205,439, representing proceeds from the sale of property at 5741 and 5751 to 5759 South Halstead, Chicago; and, at 6978 West North Ave., Chicago.
Both Toran and Kimbrough remain on bond pending sentencing. At sentencing, the maximum statutory penalty for conspiracy to defraud (one count as to each defendant) is up to five years in prison; for each count of mail fraud (Toran seven counts; Kimbrough one count) is up to 20 years in prison. The penalty for making a false statement is up to five years in prison.
The charges were investigated by the Illinois State Police, Medicaid Fraud Unit; the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations; the Federal Bureau of Investigation; and the U.S. Postal Inspection Service. In addition, the Illinois Department of Health and Family Services, which administers the Medicaid program for the state of Illinois, assisted in the investigation. Assistant U.S. Attorneys Gregory K. Harris and Timothy A. Bass are prosecuting the case.
Ohio Man Sentenced to Life in Prison for Engaging in Child Exploitation EnterpriseRead the Press Release
WASHINGTON – A Hamilton, Ohio, man was sentenced today to life in prison for engaging in a child exploitation enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney James A. Lewis of the Central District of Illinois and Special Agent in Charge Sean Cox of the FBI’s Springfield, Illinois, Division.
Jason Gmoser, 36, was sentenced by U.S. District Judge Colin S. Bruce of the Central District of Illinois, who also sentenced him to 30 years and 20 years in prison to be served concurrent to the life sentence for conspiring to advertise and conspiring to distribute child pornography, respectively, and ordered him to serve a lifetime term of supervised release. Gmoser was convicted by a federal jury in Urbana, Illinois, on Feb. 12, 2016.
Gmoser was arrested on Oct. 16, 2014, following a court-authorized search of his home in Hamilton. Forensic examination of computers and devices seized pursuant to that search found that he was in possession of millions of files depicting the sexual exploitation of children. Evidence at trial established that Gmoser acted as a member and co-administrator of a highly-sophisticated global enterprise dedicated to the sexual exploitation of children, organized via a members-only website that operated on the Tor anonymity network, through which he and others posted thousands of messages containing images of sexual exploitation involving pre-pubescent children. According to sentencing documents, as of July 2014, the website hosted nearly 30,000 members, who were required to share illicit child pornography images in order to gain and keep membership and included numerous child pornography producers who were actively abusing children. Site members employed advanced technological means in order to undermine law enforcement’s attempts to identify them, including the use of a hidden service on the Tor network and elaborate file encryption, according to the sentencing papers.
The FBI’s Springfield Field Office and the FBI’s Violent Crimes Against Children Section, Major Case Coordination Unit and Digital Analysis and Research Center led the investigation of this case. Acting Assistant Deputy Chief Keith Becker and Trial Attorney Elly Peirson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) 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 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.