Central District of Illinois
Press releases recorded for this federal judicial district.
Vermilion County Man Indicted on Gun ChargeRead the Press Release
Urbana, Ill. – A November 2015 trial date has been scheduled for a Danville, Ill., man indicted on a charge of being a felon in possession of a firearm, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. A trial date of Nov. 24, 2015, has been set for Dashun W. Avery, 20, of the 800 block of N. Bowman Ave.
The indictment, returned early this month, had remained sealed pending Avery’s court appearance before U.S. Magistrate Judge Eric I. Long on Friday, Sept. 18. Judge Long ordered that Avery remain detained in U.S. Marshals Service custody.
The indictment alleges that on July 13, 2015, Avery unlawfully possessed a nine millimeter, semi-automatic pistol with an obliterated serial number after having previously been convicted of a felony offense. If convicted, the statutory maximum penalty is up to 10 years in prison, and a fine of up to $250,000.
The case is being prosecuted by Supervisory Assistant U.S. Attorney Eugene L. Miller. The investigation was conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Danville Police Department.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Urbana Man to Serve 15 Years in Federal Prison for Sexual Exploitation of a MinorRead the Press Release
Urbana, Ill. – An Urbana, Ill., man, Talon G. Wright, 39, of the 900 block of East Harding St., was sentenced this afternoon for sexual exploitation of a minor and possession of child pornography. U.S. District Judge Colin S. Bruce sentenced Wright to a term of 15 years in federal prison and ordered that he remain on supervised release for a period of 10 years following his release from prison.
Wright entered pleas of guilty on May 14, 2015, to the charge of using and coercing a minor to engage in sexually explicit conduct for the purpose of producing visual images of said conduct in late 2011 and early 2012. Further, Wright pled guilty to possession of computer devices containing child pornography on Aug. 1, 2014.
Since Wright’s arrest on Oct. 27, 2014, he has remained detained in the custody of the U.S. Marshals Service.
Assistant U.S. Attorney Elly M. Peirson prosecuted the case. The charges were the result of an investigation by the Urbana Police Department and U.S. Immigration and Customs Enforcement Homeland Security Investigation, in cooperation with the office of the Champaign County State’s Attorney and the Illinois Department of Children and Family Services.
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.
Springfield Man Charged with Enticement of MinorRead the Press Release
Springfield, Ill. – A Springfield, Ill., man, arrested in Decatur in late July, made his initial appearance in federal court in Urbana late Friday, Sept. 18, indicted on a charge of enticement of a minor. Jeffrey Parkhurst, 58, of the 1100 block of Reynolds St., entered his plea of not guilty before U.S. Magistrate Judge Eric I. Long. Trial for Parkhurst has been scheduled on Nov. 24, 2015. The indictment of Parkhurst was returned by the grand jury earlier this month but had remained sealed pending his federal court appearance.
The indictment alleges that on July 27, 2015, Parkhurst used the Internet and a cellular telephone to persuade, induce, and entice an individual whom he believed had not attained the age of 18 years to engage in illegal sexual activity. Parkhurst was arrested on July 27, 2015, in Decatur, and was initially charged in state court in Macon county.
Parkhurst has remained in the custody of law enforcement since his arrest. Judge Long ordered that Parkhurst remain in custody pending his detention hearing scheduled on Tuesday, Sept. 22.
If convicted, the statutory penalty for enticement of a minor is 10 years to life in prison plus a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by the Decatur Police Department and the U.S. Immigration and Customs Enforcement Homeland Security Investigations in cooperation with the Macon County State’s Attorney’s office.
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.
Coles County Man Indicted on Drug and Gun ChargesRead the Press Release
Urbana, Ill. – A Charleston, Ill., man, Arnett Deshaun Brown, 42, made his initial appearance in federal court today in Urbana. Brown, aka Shaun, of the 1500 block of Woodlawn, was indicted on charges of possession of heroin, crack cocaine, and marijuana with intent to distribute and possession of firearms by a felon in early September; however the indictment remained sealed pending Brown’s court appearance. Brown appeared before U.S. Magistrate Judge Eric I. Long who ordered that Brown remain detained in the custody of the U.S. Marshals Service. Trial has been scheduled on Nov. 24, 2015.
The charges are the result of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Central Illinois Task Force. Supervisory Assistant U.S. Attorney Eugene L. Miller is prosecuting the case in the Central District of Illinois, Urbana Division.
The nine-count indictment alleges that Brown possessed heroin, crack cocaine and marijuana with intent to distribute on June 11, 2014, and heroin and marijuana with intent to distribute in February 2015. Brown is also charged with possession of firearms after being convicted of a felony. Between Feb. 3 and Feb. 6, 2015, the indictment alleges that Brown possessed 11 firearms, including handguns and two rifles. Brown also faces one count of possession of a firearm in furtherance of a drug trafficking crime.
If convicted, the maximum statutory penalty for possession of a controlled substance with intent to distribute (five counts) is up to 30 years in prison if the defendant has a prior felony drug conviction. For possession of a firearm in furtherance of a drug trafficking crime (one count), the penalty is a mandatory minimum five years in prison served consecutive to any sentence for the underlying crime. For possession of a firearm by a felon (three counts) the penalty is up to 10 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Springfield Man Who Led Police on Chase Charged with Possession of Cocaine with Intent to DistributeRead the Press Release
Springfield, Ill. – A Springfield, Ill., man who led police on a chase through fields in southeastern Springfield on Sept. 1, 2015, has been charged by criminal complaint with possession of cocaine with intent to distribute and illegal possession of firearms. Terell Adetunji, (a-de-TUHN-jee) 33, of the 1600 block of E. Georgia St., made his initial appearance in federal court today before U.S. District Judge Sue E. Myerscough. Adetunji was ordered to remain detained in the custody of the U.S. Marshals Service.
According to the affidavit filed in support of the complaint, Adetunji possessed nearly two kilograms of cocaine, and at the time of his arrest, was under surveillance by law enforcement officers. When officers attempted to make contact with Adetunji in the Taco Bell parking lot on Toronto Rd., he allegedly drove away, hitting and damaging two unmarked police cars.
The affidavit alleges that Adetunji, who proceeded eastbound on Toronto Rd., at a high rate of speed, was swerving violently as he appeared to throw items from the car. Adetunji then drove through a soybean field and a cornfield before crossing the street into another cornfield. At that point, the vehicle appeared to be severely damaged and was no longer running. According to the affidavit, Adetunji exited the vehicle and ran eastbound through the cornfield on foot until officers apprehended him on the University of Illinois-Springfield campus. The Springfield Fire Department was called after the car caught fire and ignited the cornfield.
Following the arrest, officers obtained and executed search warrants for various properties associated with Adetunji. According to the affidavit, among the items recovered were approximately 1,700 grams of cocaine, four firearms and various types of ammunition.
The case is being investigated by the Drug Enforcement Administration, the Springfield Police Department, the Central Illinois Enforcement Group, and the Illinois State Police. Assistant U.S. Attorneys Matthew Weir and Crystal C. Correa are prosecuting the case.
If convicted, the statutory penalty for possession of more than 500 grams of cocaine with intent to distribute is a mandatory minimum of five years in prison up to 40 years; for possession of a firearm by an unlawful user of any controlled substance, the penalty is up to 10 years in prison.
Members of the public are reminded that a criminal complaint is merely an accusation; the defendant is presumed innocent unless proven guilty.
Indictment Charges Chicago New Birth Christian Center Pastor and Others with Defrauding Summer Food ProgramRead the Press Release
Springfield, Ill. – The grand jury today returned an indictment that charges the founding pastor of the New Birth Christian Center, Chicago, and four associates with embezzling approximately $450,000, more than one-half of the funding received to operate the 2010 Summer Food Service Program. Those charged are: Robbie Wilkerson, 47, founding pastor; his wife, Tasha, 42, both of Oak Park, Ill., Anthony Hall, 53, a NBCC pastor, of Downers Grove, Ill., and Richard Shumate, 50, program operations manager for the 2010 program, and his wife Evelyn Shumate, 47, who worked as an assistant for the program, of Romeoville, Ill.
The defendants are charged with defrauding the program that provides nutritious meals to low-income children during the summer months when schools are not in session. In Illinois, the State Board of Education (ISBE) administers funding for the Summer Food Service Program which is provided by the Food and Nutrition Service, an agency of the U.S. Department of Agriculture.
According to the indictment, the New Birth Christian Center was one of the largest recipients of Summer Program funds in Illinois. In 2010, Robbie Wilkerson, on behalf of NBCC, submitted a total operational budget of $446,440 to the ISBE representing that NBCC would administer the summer program at 34 sites in the Chicago area. The defendants allegedly submitted approximately $714,000 in false and fraudulent claims to ISBE, more than $250,000 above the budgeted amount. Claims submitted represented that approximately 267,000 meals were served to low-income children, when in fact, fewer than 100,000 meals were actually served, and as much as $450,000 was used for the defendants’ personal use.
The indictment alleges that Robbie and Tasha Wilkerson embezzled more than $100,000, including more than $60,000 in direct payments to himself and his wife, at the same time his wife was paid as an employee of Youth Outreach Services, Chicago, as a prevention coordinator. In addition, more than $10,000 was given to relatives; $20,000 in cash and other withdrawals from NBCC’s bank account; $46,000 to purchase real estate in Chicago; and, $37,109 to purchase a residence in Memphis Tenn., for Robbie Wilkerson’s parents.
Hall allegedly embezzled approximately $50,000 for his and his spouse’s use. Richard and Evelyn Shumate allegedly embezzled $98,000 for personal use, including approximately $28,695 to purchase a 2011 Hyundai Sonata.
U.S. Department of Agriculture, Office of Inspector General, Special Agent-in-Charge Anthony V. Mohatt said, “The Summer Food Service Program was created to ensure that low-income children continue to receive nutritious meals when school is not in session. Those who are involved in fraud and abuse of SFSP and other USDA programs will be aggressively pursued by our office. The USDA Office of Inspector General will continue to dedicate resources in order to protect the integrity of the SFSP and other USDA programs and to pursue prosecution of those who commit fraud.”
Assistant U.S. Attorney Timothy A. Bass is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The charges are the result of investigation by the U.S. Department of Agriculture, Office of Inspector General. The Illinois State Board of Education also assisted in the investigation.
Specifically, the defendants are charged as follows: Robbie Wilkerson: wire fraud (two counts), theft of government funds (one count), money laundering (one count); Tasha Wilkerson: wire fraud (two counts), theft of government funds (one count); Anthony Hall: wire fraud (two counts), theft of government funds (one count); Richard and Evelyn Shumate: wire fraud (two counts), theft of government funds (one count.)
The U.S. Clerk of the Court will schedule dates for arraignment for the defendants in federal court in Springfield.
If convicted, the statutory penalty for the offense of wire fraud is up to 20 years in prison and fines of up to $250,000. For theft of government funds, the statutory penalty is up to 10 years in prison and fines of up to $250,000. The penalty for money laundering is up to 10 years in prison and fines of $250,000 or twice the value of money laundered.
The indictment seeks forfeiture of any property derived from proceeds of the violations and a money judgment in the amount of at least $400,000, the amount of the net proceeds allegedly obtained as a result of the offenses.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Decatur Physician Charged with Illegal Distribution of HydrocodoneRead the Press Release
Springfield, Ill. – Jim Lewis, U.S. Attorney for the Central District of Illinois, announced that a federal grand jury in Springfield returned an indictment today that charges Sukhwinder Multani, 41, of the 3700 block of N. Ashley Court, Decatur, Ill., with illegal distribution of hydrocodone.
The indictment alleges that on three occasions, between April 2014 and August 2014, Multani prescribed hydrocodone, which was then a Schedule III controlled substance, outside the course of professional medical practice and for no legitimate medical purpose. At the time of the alleged offenses, Multani was an authorized Drug Enforcement Administration registrant, engaged in private practice as Universal Walk-In Urgent Care, located at 3767 E. US Route 36, Decatur, Ill.
The classification for hydrocodone has since been changed by the DEA to Schedule II.
According to public documents filed by the Illinois Department of Financial and Professional Regulation, Division of Professional Regulation, in September 2014, Multani’s licenses were ordered suspended.
If convicted, the statutory maximum penalty for each count of distribution of a controlled substance is 10 years in prison, and a fine of up to $500,000.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by the Drug Enforcement Administration.
The U.S. Clerk of the Court will issue a summons and date for Multani to appear for arraignment.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Decatur Man Charged with Child Pornography OffensesRead 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 charging Niles C. Wray, 34, of the 1600 block of North Foster Avenue, Decatur, Ill., with distribution and possession of child pornography and access of a website with intent to view child pornography.
The indictment alleges that in December 2014, Wray distributed and possessed images of minors engaged in sexually explicit conduct. The indictment further alleges that in February 2015 Wray accessed a website with intent to view child pornography, including visual depictions of minors engaging in sexually explicit conduct. The indictment also seeks forfeiture of computers and related materials allegedly used to commit or promote the offenses.
If convicted, the statutory penalty for the count of distribution of child pornography is a mandatory minimum of five years in prison to 20 years in prison and a term of supervised release of up to life following any term of imprisonment. For the possession of child pornography charge, the penalty is a maximum of 20 years in prison, and for the access with intent to view child pornography charges, the penalty also is a maximum of 20 years in prison.
Wray was arrested on Aug. 20, 2015, and charged by criminal complaint with access with intent to view child pornography. During a court appearance on Aug. 25, 2015, before U.S. Magistrate Judge Eric I. Long, in Urbana, Wray was ordered released on bond.
The case is being prosecuted by Assistant U.S. Attorney Katherine Boyle. The charges are the result of an investigation by the Federal Bureau of Investigation.
Members of the public are reminded that an indictment is merely an accusation; each 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.
Three Men Face Federal Gun Charges in Rock IslandRead the Press Release
Rock Island, Ill. - A federal grand jury returned indictments last week charging three men in separate, unrelated cases with federal gun charges in the Rock Island Division of the Central District of Illinois, as announced by U.S. Attorney Jim Lewis. The indictments had remained sealed pending the defendants’ arrests and court appearances.
Jeremy Elias Munday, 26, of the 1300 block of 13th Street, East Moline, Illinois, is charged with unlawful possession of a handgun on July 25, 2015, after having been previously convicted of a felony offense. If convicted on all charges, the statutory maximum penalty is up to 10 years in prison and a fine of up to $250,000. The case is being prosecuted by Assistant U.S. Attorney John Mehochko, and the charges are the result of an investigation by the East Moline Police Department and the Federal Bureau of Investigation.
Guadalupe Paulie Granado, 34, of the 900 block of 2nd Street, Colona, Ill., is charged with unlawful possession of a handgun on June 10, 2015, after having previously been convicted of a felony offense. If convicted, the statutory maximum penalty is up to 10 years in prison, and a fine of up to $250,000. The case is being prosecuted by Assistant U.S. Attorney John Mehochko, and the charges are the result of an investigation by the Moline Police Department and the Federal Bureau of Investigation.
Samuel Cruz, 27, of the 700 block of 12th Street, Moline, Illinois, is charged with unlawful possession of a handgun on March 27, 2015, after having previously been convicted of a felony offense. If convicted, the statutory maximum penalty is ten years in prison, and a fine of up to $250,000. The case is being prosecuted by Assistant U.S. Attorney John Mehochko, and the charges are the result of an investigation by the Moline Police Department and the Federal Bureau of Investigation.
On August 25, 2015, all three defendants appeared in federal court in Rock Island for their initial appearances before U.S. Magistrate Judge Stephen B. Jackson, Jr., and all three defendants were ordered to remain in the custody of the U.S. Marshals Service.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Springfield Man Pleads Guilty to Advertising ScamRead the Press Release
Springfield, Ill. – A Springfield, Ill., man, Andrew Miles Ross, waived indictment and pled guilty to defrauding more than 6,500 small businesses in more than 32 states in a telemarketing advertising scam. Ross, 32, of the 3100 block of S. Woodward St., owned and operated a telemarketing company that sold advertising space on placemats or take-home menus purportedly to be used by popular Mexican restaurants. As a result of the scheme, Ross sold more than $900,000 in false advertisements.
Ross appeared in federal court yesterday and entered a plea of guilty to five counts of wire fraud before U.S. Magistrate Judge Thomas P. Schanzle-Haskins. Ross is currently on bond awaiting sentencing, which is scheduled on Jan. 18, 2016, before U.S. District Judge Sue E. Myerscough.
The telemarketing company operated under various names including A. Ross and Associates and Coast-to-Coast Advertising, LLC, doing business as Nationwide Advertising and Nationwide Marketing. Between 2005 and April 2011, as part of the scheme, advertising space was sold primarily to small businesses, such as auto repair shops, insurance agents and beauty salons located in the area of Mexican restaurants. The telemarketers falsely represented to small businesses that they were employed by or associated with a local Mexican restaurant that was selling the ad space on its placemats or take-home menus. Further, the telemarketers falsely represented a one-time annual fee for purchasing advertisement, although Nationwide Marketing routinely debited the checking or credit card account of the small businesses without the businesses’ authorization or consent on multiple occasions during the year.
As part of the scheme, Ross, or someone else associated with Nationwide Marketing, contacted popular Mexican restaurants throughout the U.S. and attempted to persuade them to accept free placemats or take-home menus. Nationwide Marketing falsely represented that the items were a gift for being named in a survey as the top Mexican restaurant in the area. In some instances, although the restaurant advised that it did not want the items, Nationwide Marketing sent the placemats and take-home menus, which were of poor quality, regardless.
The case is being 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.
At sentencing, Ross faces a maximum possible penalty of up to 20 years in prison, a fine of up to $250,000 and a term of supervised release of up to three years to follow any term of imprisonment. The defendant may also be ordered to pay restitution.
Tuscola Businessman Pleads Guilty to Income Tax EvasionRead the Press Release
Springfield, Ill. – Sentencing has been scheduled on Jan. 4, 2016, for a Tuscola, Ill., businessman, Lorenzo Shane Stewart, owner of Ten Acres Excavating, who pled guilty on Friday to two counts of income tax evasion. Stewart appeared in Springfield before U.S. District Judge Sue E. Myerscough. Stewart remains on bond pending sentencing.
During court proceedings and according to court documents, Stewart, 48, admitted that he failed to pay more than $1.12 million in income tax for the 2008 and 2009 tax years. In 2006, Stewart began conducting his excavation and construction business under the name Ten Acre Excavating. Stewart put the business under the name of one of his employees. Although Stewart operated the business and received the income generated from the business, Stewart did not claim income generated by Ten Acre Excavating on his own tax returns.
In approximately July 2008, Stewart was awarded contracts to perform excavating and construction work on several natural gas pipeline substations that were being built in the Tuscola area. Stewart and his employees performed work on these substations and received checks related to this pipeline work totaling approximately $1.7 million in 2008 and $5.9 million in 2009. Stewart claimed his adjusted gross income for 2008 was approximately $74,199, when in fact, his adjusted gross income for 2008 was approximately $279,803. For 2009, Stewart claimed his adjusted gross income was approximately $257,361, when in fact, his adjusted gross income was approximately $3,044,980.
Each count carries a penalty of up to five years in prison, a $100,000 fine plus the costs of prosecution, and restitution.
The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller. The charges are the result of an investigation by the Internal Revenue Service, Criminal Investigation Division.
Indictment Charges Hopedale Woman with Embezzling $190,000 from Dental PracticeRead the Press Release
Peoria, Ill. – A federal grand jury today charged a Tazewell county woman with embezzling approximately $190,000 from a dental practice where she had worked for nearly 16 years. Constance (“Connie”) Gustafson, 53, of Hopedale, Ill., was charged with seven counts of mail fraud and four counts each of misapplication of funds relating to health care and theft relating to health care, as announced by U.S. Attorney Jim Lewis, Central District of Illinois.
According to the indictment, starting at least as early as 2006 and continuing to February 2014, Gustafson stole cash payments made by patients. To encourage patients to pay cash, Gustafson allegedly offered discounts, sometimes as much as 40 and 50 percent. The indictment alleges that on some occasions, she provided patients with receipts, but did not record the payments in the practice’s computer system or on the patients’ ledgers. On other occasions, she provided receipts and documented the payment in the computer system but then deleted the entries. It is also alleged that she concealed her theft of cash by applying insurance payments received for patients with insurance coverage to patients’ accounts which she had used to take cash. On some occasions Gustafson deleted dental procedures from patient records. As alleged, the defendant deposited the cash into her credit union account and used it for her personal benefit.
If convicted, the maximum statutory penalty for each count of mail fraud is up to 20 years in prison and up to 10 years in prison for each count of embezzlement or theft in connection with health care.
The case is being prosecuted by Supervisory Assistant U.S. Attorney Darilynn J. Knauss of the Peoria office. The charges are the result of an investigation by the Federal Bureau of Investigation.
The defendant will be given a notice to appear in federal court on a date to be determined by the U.S. Clerk of the Court.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
EMI Owner Sentenced to Five Years in Prison for Multi-Million Dollar Fraud SchemeRead the Press Release
Springfield, Ill. – U.S. District Judge Sue E. Myerscough today sentenced Michael R. Keebler, owner of Environmental Management of Illinois, Inc. (EMI), Springfield, Ill., to serve five years in federal prison for a scheme that defrauded the Illinois Environmental Protection Agency of millions of dollars. The scheme, over a period of 12 years, from 2001 to 2013, swindled money from a fund administered by Illinois EPA to clean up sites contaminated by leaking underground storage tanks.
Judge Myerscough allowed Keebler to remain on bond pending his report to the federal Bureau of Prisons no later than Sept. 24, 2015. Keebler was ordered to remain on supervised release for a period of three years following his release from prison.
Keebler, of Sherman, Ill., was also ordered to pay restitution of no more than $13,363,665 to the Illinois EPA. Restitution will be ordered to be paid jointly and severally with Keebler’s co-defendants, EMI founder, Eric M. Andrews, of Springfield, and his brother, Joel T. Andrews, of New Berlin, Ill. Each pled guilty on Mar. 2, 2015, to one count of conspiracy to commit mail fraud. Sentencing for the Andrews brothers is scheduled on Oct. 2, 2015. Keebler entered pleas of guilty on Feb. 27, 2015, to two counts of conspiracy to commit mail fraud.
The U.S. EPA has a cooperative agreement with the State of Illinois to administer the UST (underground storage tanks) program. IEPA and the Illinois Office of the State Fire Marshal share administration of the UST fund which assists tank owners and operators with the cleanup costs of petroleum leaks from USTs. The State Fire Marshal administers the preventative and permitting aspects of the program. If there is a spill or leak, IEPA is responsible for oversight of the cleanup investigation and the corrective action, in order to clear the property for use again. State taxes and fees paid on the purchase of gasoline fund the Leaking UST (LUST) program.
Joel Andrews founded EMI in 1997 and served as president, and Eric Andrews joined in 1999 as vice-president. In April of 2001, professional engineer Michael Keebler joined the firm. In 2006, the firm was sold to Michael Keebler, who has remained as the firm’s principal owner and president. EMI is located at 1154 N. Bradfordton Road, Springfield. The environmental consulting firm worked with property owners to clean up property contaminated by petroleum leaks, spills, or overfills from underground storage tanks. The firm then sought reimbursement of its costs to remediate the land from a fund administered by a designated section within Illinois EPA.
According to plea agreements filed by the parties, Michael Keebler, and Eric and Joel Andrews each admitted that they conspired to defraud the LUST fund by artificially inflating expenses they incurred in remediating property. For example, as principals of EMI, they admitted they reached agreements with their vendors to submit two invoices for certain services: one invoice listed the real costs of the service provided and the payment to be made by EMI, and a second invoice which inflated the amount of work performed and supplies used, the amount charged for the work, or both. The inflated invoice would then be provided to Illinois EPA for reimbursement. Keebler and the Andrews would also pay certain vendors a reduced rate, but misrepresent to the Illinois IEPA that they had paid full price. At other times they would simply create or modify an existing invoice to reflect a higher charge than was actually paid and would submit that to IEPA for reimbursement.
In a separate but related case, Michael Keebler’s brothers, Duane T. Keebler, of Maryland Heights, Mo., and Joseph R. Keebler, of Carbondale, Ill., each pled guilty on Feb. 20, to one count of conspiracy to commit mail fraud. Both Duane and Joseph Keebler have agreed to a loss amount in their cases, and will pay restitution in the total amount of $179,438.They are scheduled to be sentenced on Aug. 24, 2015.
Another defendant, Jeremy L. VanScyoc, of Springfield, was an engineer for EMI and participated in the fraud.He waived indictment on Mar. 10, 2014, and pled guilty to one count of conspiracy to commit mail fraud. VanScyoc admitted that after he joined EMI he agreed to engage in the fraud scheme by inflating subcontractor invoices. On June 11, 2015, VanScyoc was sentenced to one day in prison; two years supervised release; and was ordered to pay restitution in the amount of $262,032.
The case is being prosecuted by Assistant U.S. Attorneys Patrick D. Hansen and John E. Childress. The charges are the result of a two-year investigation by the Federal Bureau of Investigation and the U.S. Environmental Protection Agency, Criminal Investigation Division.
Pike County Ill., Man Charged with Transportation of a Minor with Intent to Engage in Illegal Sexual ActivityRead the Press Release
Springfield, Ill. - A federal grand jury today returned an indictment that charges Ralph David Hathaway, 46, of New Canton, Ill., with 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. Hathaway was previously charged in a criminal complaint filed in the Central District of Illinois. The complaint remained under seal pending Hathaway’s arrest.
On July 27, Hathaway was arrested in Troy, Mo., and appeared before U.S. Magistrate Judge Shirley P. Mensah in St. Louis. Hathaway has remained in the custody of the U.S. Marshals Service and will be transported to Springfield, Ill., for arraignment.
The indictment alleges that Hathaway transported a minor from the state of South Carolina to Missouri on June 6, 2015, for the purpose of engaging in illegal sexual activity. It also alleges that, in October 2013 and April 2014, Hathaway traveled from Illinois to South Carolina for the purpose of engaging in illicit sexual conduct with a person under 18 years of age.
If convicted, the statutory penalty is no less than 10 years in prison and up to life in prison.
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. The case is being prosecuted by Assistant U.S. Attorney Victor Yanz.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Grand Jury Indicts Decatur Man on Charges of Murder and Hobbs Act RobberyRead the Press Release
Springfield, Ill. – A federal grand jury today returned a five-count indictment that charges Kelton Snyder, of Decatur, Ill., in the April 3, 2015, armed robbery of the Circle K convenience store and the April 5, 2015, murder of Paige Mars, also of Decatur. Snyder, 23, is charged with conspiring to commit the armed robbery and commission of the robbery in interference with commerce, known as the Hobbs Act; murder; brandishing a firearm during and in relation to a crime of violence, and possession of a firearm by a felon.
The indictment alleges that from April 2 to April 6, 2015, Snyder conspired to commit the armed robbery, obtained and possessed firearms, and used masks and firearms to commit the robbery on April 3. On or about April 5, the indictment alleges conspirators met to discuss the possibility that Mars may alert law enforcement about the robbery and on April 5, conspirators killed Mars. According to the indictment, Mars served as the driver while Snyder and his co-conspirator, Matthew Vogt, committed the robbery of the Circle K.
U.S. Attorney Jim Lewis and Macon County State’s Attorney Jay Scott announced the federal indictment. The case is being prosecuted in federal court by Assistant U.S. Attorneys Katherine Boyle and Jason Bohm. 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.
Snyder was previously charged in Macon County and is now in the custody of the U.S. Marshals Service. He will be arraigned in federal court in Urbana on a date to be determined by the U.S. Clerk of the Court.
If convicted, the penalty for use of a firearm resulting in murder is life in prison unless the U.S. Attorney General directs the U.S. Attorney to seek the death penalty, in which case the maximum statutory penalty for the murder is death. Brandishing a firearm during and in relation to a violent crime carries a mandatory minimum of 10 years in prison and up to life, to be served consecutive to any term of imprisonment ordered for the underlying crime of violence. The statutory penalty for conspiracy to commit Hobbs Act Robbery and commission of the Hobbs Act offense is up to 20 years in prison for each charge.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Kankakee Man to Serve Five Years in Prison for Marijuana Growing Operation, Filing False Tax Returns and Making False Statement to BankRead the Press Release
Springfield, Ill. – A Kankakee, Ill., man, has been ordered to serve five years in federal prison. U.S. District Judge Sue E. Myerscough sentenced David Aaron Neblock 38, on Friday, July 24, 2015. Following his release from prison, Neblock was ordered to remain on federal supervised release for four years.
Neblock has been in the custody of the U.S. Marshals Service since he pled guilty on Jan. 29, 2015, to possession with intent to distribute more than 100 marijuana plants, three counts of filing false income tax returns for the 2010, 2011, and 2012 tax years, and making false statements to a financial institution.
According to court documents, in July 2012, members of the Kankakee Area Metropolitan Enforcement Group (KAMEG) seized more than 750 hydroponic marijuana plants from a warehouse in Bradley, Ill., used by Neblock to grow marijuana. The plants, at various stages of growth, were grown under multiple artificial light ballasts, with electric timers that regulated fans, lights and irrigation systems that supplied water and growth enhancement nutrients to the plant.
Neblock was also ordered to pay $52,128 of additional tax due and owing to the Internal Revenue Service that resulted from his omission of other income earned, including income from the sale of narcotics, for tax years 2010, 2011, and 2012,
Further, Neblock agreed to forfeit property, his former residence on River Road in Kankakee, that was used to facilitate or was paid for by proceeds of illegal activity. Neblock admitted that in March 2009, he submitted a false loan application to the bank to purchase the home. In the application, Neblock falsely claimed that he was employed at various businesses and had received an inheritance.
The case was prosecuted by Supervisory Assistant U.S. Attorney Ronda H. Coleman. The charges are the result of investigation by the Kankakee Area Metropolitan Enforcement Group, “KAMEG;” Illinois State Police; Internal Revenue Service Criminal Investigation, and the Federal Deposit Insurance Corporation, Office of Inspector General, with assistance from the Kankakee State’s Attorney’s Office.
Three Men Face Federal Gun Charges in Rock IslandRead the Press Release
Rock Island, Ill. - A federal grand jury returned indictments this week charging three men in separate, unrelated cases with possession of a firearm by a felon in the Rock Island Division of the Central District of Illinois, as announced by U.S. Attorney Jim Lewis. The indictments had remained sealed pending the defendants’ arrests and court appearances.
A three-count indictment against Kylea Dapri Cartwright, Jr., 18, of the 700 block of Sylvan Court, Davenport, Iowa, alleges that on June 4, 2015, Cartwright possessed a quantity of marijuana with the intent to distribute; possessed two handguns in furtherance of a drug trafficking crime; and that Cartwright possessed those handguns after having been previously convicted of a felony offense. If convicted on all charges, the statutory maximum penalty is life in prison and a fine of up to $750,000. The case is being prosecuted by Assistant U.S. Attorney John Mehochko, and the charges are the result of an investigation by the Rock Island Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Bobby James McCaw, 34, of the 800 block of NW 2nd St, Aledo, Ill., is charged with unlawful possession of a handgun on June 13, 2015, after having previously been convicted of a felony offense. If convicted, the statutory maximum penalty is ten years in prison, and a fine of up to $250,000. The case is being prosecuted by Assistant U.S. Attorney Meredith DeCarlo, and the charges are the result of an investigation by the Rock Island Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Hasan Rahmon Stoner, 23, of the 16000 block of Glen Oak Dr., Country Club Hills, Ill., is charged with possession of a handgun on May 13, 2015, after having previously been convicted of a felony offense. If convicted, the statutory maximum penalty is ten years in prison, and a fine of up to $250,000. The case is being prosecuted by Assistant U.S. Attorney John Mehochko, and the charges are the result of an investigation by the Moline Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On July 23, 2015, the three defendants made their respective initial appearances in federal court in Rock Island before U.S. Magistrate Judge Stephen B. Jackson, Jr., and each was ordered to remain in the custody of the U.S. Marshals Service.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Sullivan Man Charged with Child Pornography OffensesRead the Press Release
Peoria, Ill. – Jim Lewis, U.S. Attorney for the Central District of Illinois, announced today that a federal grand jury in Peoria has returned an indictment charging Justen W. Troxell, 30, of the 400 block of South Worth Street, Sullivan, Ill., with distribution and possession of child pornography.
The indictment alleges that in June 2015, Troxell distributed and possessed images and videos of minors engaged in sexually explicit conduct. The indictment also seeks forfeiture of computers and related materials allegedly used to commit or promote the offenses.
If convicted, the statutory penalty for each count of distribution of child pornography (two counts) is a mandatory minimum of five years in prison to 20 years in prison and a term of supervised release of up to life following any term of imprisonment. If a defendant has a prior child sex abuse or child pornography conviction, the statutory penalty is not less than 15 years and up to 40 years in prison. For possession of child pornography (one count), the penalty is up to 10 years in prison.
Troxell was arrested on June 26, 2015, and charged in a criminal complaint with distribution of child pornography. During a court appearance on that same day, before U.S. Magistrate Judge Eric I. Long, in Urbana, Troxell was ordered detained in the custody of the U.S. Marshals Service.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by the Federal Bureau of Investigation, the Illinois State Police, and the Tuscola and Sullivan Police Departments.
Members of the public are reminded that an indictment is merely an accusation; each 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.
Champaign Man Charged with Child Pornography OffensesRead the Press Release
Springfield, Ill. – A federal grand jury in Springfield returned an indictment on Friday, July 10, that charges Ryan T. Hayman, 39, of the 2400 block of Leeper Drive, Champaign, Ill., with distribution and possession of child pornography, announced Jim Lewis, U.S. Attorney for the Central District of Illinois.
The indictment alleges that in March 2015 Hayman distributed images and videos of minors engaged in sexually explicit conduct. The indictment further alleges that in June 2015 Hayman possessed images and videos of minors engaged in sexually explicit conduct. The indictment also seeks forfeiture of computers and related materials allegedly used to commit or promote the offenses.
If convicted, the statutory penalty for distribution of child pornography is a mandatory minimum of five years in prison to 20 years in prison and a term of supervised release of up to life following any term of imprisonment. For possession of child pornography, the penalty is a maximum of 20 years in prison.
Hayman was arrested on June 18, 2015, and charged in a criminal complaint with distribution and possession of child pornography. During a court appearance on June 22, 2015, before U.S. Magistrate Judge Eric I. Long, in Urbana, Hayman was ordered detained in the custody of the U.S. Marshals Service. Arraignment for Hayman has been scheduled on July 17 at 10:00 a.m.
The case is being prosecuted by Assistant U.S. Attorney Katherine Boyle. The charges are the result of an investigation by U.S. Immigration and Customs Enforcement Homeland Security Investigations; Urbana Police Department, the Illinois Attorney General’s Internet Crimes Against Children Task Force and the East Central Illinois Cyber Crimes Working Group.
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.
Chicago Woman Sentenced to Two Years in Prison for Money Laundering, False Statements to Law Enforcement and Federal Grand JuryRead the Press Release
Springfield, Ill. – A Chicago woman has been ordered to serve two years in federal prison for her role in a state grant fraud scheme and for repeatedly making false statements to federal agents and the grand jury investigating the scheme. Jeri L. Wright, 49, of Hazel Crest, Ill., appeared today before U.S. District Judge Sue E. Myerscough in Springfield. Wright was also ordered to serve three years on supervised release following her release from prison, the first six months of which are to be served as home confinement with electronic monitoring. Wright was ordered to pay restitution in the amount of $31,821 to the Illinois Department of Commerce and Economic Opportunity.
Following today’s hearing, Wright was remanded to the custody of the U.S. Marshals Service. Wright has remained in law enforcement custody since Feb. 23, 2015, when Judge Myerscough revoked Wright’s personal recognizance bond upon finding probable cause that Wright had participated in an unrelated payroll fraud scheme involving an Indiana employment agency while on bond.
On Mar. 7, 2014, a jury convicted Wright on all counts charged in the indictment: money laundering (two counts); making false statements to federal law enforcement officers (two counts); and giving false testimony before a grand jury (seven counts), related to an investigation of fraudulent use of Illinois Department of Commerce and Economic Opportunity grant funds. At trial, the government presented evidence that Wright participated in a fraud scheme led by her friend, former Country Club Hills, Ill., police chief Regina Evans, that misused a $1.25 million grant awarded in 2009 to We Are Our Brother’s Keeper, a not-for-profit program owned and operated by Regina Evans and her husband, Ronald Evans. Wright was also convicted for making false statements to law enforcement during interviews in 2012 and to a federal grand jury in November 2012.
Regina Evans pled guilty to the fraud scheme and was sentenced on May 1, 2014, to 60 months in prison; Ronald Evans pled guilty and was sentenced on July 25, 2014, to 12 months in prison followed by six months home confinement. The couple was ordered to pay restitution in the amount of $917,194. The grant agreement was purportedly to provide bricklaying and electrical pre-apprenticeship training and GED preparation, at the Regal Theater, another entity owned by the Evanses. In fact, little, if any, of the training provided in the grant agreement was ever completed.
The investigation was conducted by federal law enforcement officers and agencies that support the Central District of Illinois U.S. Attorney’s Office’s Public Corruption Task Force: U.S. Postal Inspection Service, Chicago Division; Internal Revenue Service, Criminal Investigation Division, Chicago Field Office; the Illinois Secretary of State Office of Inspector General; and, Illinois State Police, Division of Internal Investigations. 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.
Former Illinois Public Health Chief of Staff Sentenced for Bribery, Kickback Scheme and Obstruction of JusticeRead the Press Release
Springfield, Ill. –A former Chief of Staff for the Illinois Department of Public Health, Quinshaunta R. Golden, was sentenced to a federal prison term of eight years (96 months) today for taking bribes and kickbacks related to $13 million in grant and contract funds awarded at her direction and for obstructing justice in a federal grand jury investigation. Golden appeared today before U.S. District Judge Sue E. Myerscough in Springfield.
In addition to the prison term, Judge Myerscough ordered that Golden pay $1,000,000 in restitution to IDPH, jointly and severally with Roxanne Jackson, a defendant in a separate but related case. Golden was ordered to remain on supervised release for three years following her release from prison. Golden remains on bond and will self-report to the federal Bureau of Prisons on Sept. 1, 2015, to begin serving her sentence.
Golden, 46, of Homewood, Ill., served as Chief of Staff at IDPH from 2003 to early 2008. In that capacity, Golden had significant control over the agency’s offices and had certain approval authority and control over the awarding of grants and contracts. In 2008, Golden left the department and took a position at the University of Chicago Medical Center.
On April 10, 2014, Golden pled guilty to taking bribes and kickbacks pursuant to a plea agreement. On May 29, 2015, an addendum was filed related to Golden’s plea agreement that established that Golden did not oppose the presentence report finding that she was not entitled to a sentencing adjustment for acceptance of responsibility.
According to evidence presented by the government during sentencing and court documents, from 2006 to 2008, Golden used her agency position to direct approximately $11 million in grant funds, for programs relating to breast, cervical and prostate cancer, HIV/AIDS, and emergency preparedness, to three not-for-profit organizations: Broadcast Ministers Alliance, Access Wellness and Racial Equity, and Medical Health Association. These organizations were then controlled by Leon Dingle, Jr., and his for-profit corporation known as Advance Health, Social and Educational Associates, Inc. (AHSEA)
As part of the scheme, Golden directed that an associate, Roxanne Jackson, a former IDPH administrator, be hired as a paid consultant for Leon Dingle, Jr., and the three not-for-profit entities. As a result, approximately $772,500 in grant funds disbursed to the three not-for-profit entities was paid to Jackson from July 2007 to April 2008. This included approximately $407,500 in April 2008, at the end of Golden’s tenure at IDPH. As a condition of Jackson receiving grant funds, Golden required that Jackson pay her one-half of whatever she received, less any funds to be withheld for payment of taxes, which were never paid.
Golden further directed that Jackson work as a paid consultant for VIP Security. Golden caused approximately $2 million in contract funds to be paid by IDPH to VIP Security to conduct background checks and interviews of Illinois nursing home residents related to the Identified Offender Program. Golden required that Jackson give Golden kickback payments for each background investigation performed by VIP Security.
From February to April 2012, Golden attempted to persuade a material witness with the intent to obstruct an official grand jury investigation in the Central District of Illinois. Golden met with the witness on multiple occasions and falsely denied receiving improper kickback payments. Golden admitted to the witness that she caused grants to be issued to certain vendors and to the witness, but encouraged and instructed the witness not to tell the truth concerning the kickback scheme and to conceal the truth from the witness’s attorney and the grand jury, and to create a false story by saying that the witness used the grant and contract funds for gambling and other personal expenses.
In a related but separate case, in December 2014, a jury convicted Leon Dingle, Jr., and his wife Karin, both of Chicago, of conspiracy to defraud, mail fraud and money laundering for their use of millions of dollars in grant funds for their personal benefit and to pay personal expenses. Sentencing for the couple is scheduled on Sept. 10, 2015.
Sentencing for Jacquelyn Kilpatrick, bookkeeper and vice-president of operations for AHSEA, is scheduled on Sept. 15, 2015. Kilpatrick pled guilty to one count of mail fraud and filing a false income tax return. Kilpatrick’s husband, Edmond Clemons, is also scheduled for sentencing on Sept. 15, after he pled guilty to filing a false income tax return.
Roxanne Jackson was sentenced on June 12, to 25 months in federal prison for her part in the bribery and kickback scheme and filing false income tax returns. Jackson was also ordered to pay $1,000,000 in restitution jointly and severally with Golden to IDPH.
Central District of Illinois U.S. Attorney Jim Lewis expressed his appreciation to the federal law enforcement officers assigned and the agencies who support the Central District of Illinois U.S. Attorney’s Office’s Public Corruption Task Force and participated in this investigation: U.S. Postal Inspection Service, Chicago Division; Internal Revenue Service, Criminal Investigation Division, Chicago Field Office; the Illinois Secretary of State Office of Inspector General; and, Illinois State Police, Division of Internal Investigations. 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.
Individuals who wish to provide information to law enforcement regarding matters of alleged public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
Former State Public Health Administrator Sentenced for Bribery, Kickback Scheme and Filing False Income Tax ReturnsRead the Press Release
Springfield, Ill. – A former director of human resources for the Illinois Department of Public Health, Roxanne Jackson, has been sentenced to 25 months in federal prison for her part in a bribery and kickback scheme. In addition to the prison term, U.S. District Judge Sue E. Myerscough ordered Jackson to pay $1,000,000 in restitution to the Illinois Department of Public Health and an additional $172,825 to the IRS. Jackson was ordered to remain on supervised release for three years following her release from prison. Jackson remains on bond and will self-report to begin serving her sentence on a date and location determined by the federal Bureau of Prisons.
Jackson, 50, of Olympia Fields, Ill., waived indictment and pled guilty on Sept. 23, 2014, to participating in a bribery and kickback scheme with IDPH Chief of Staff Quinshanta Golden. Jackson, at Golden’s direction, was a paid consultant to three not-for-profit entities that received state grant funds and a security business that conducted background checks and interviews of Illinois nursing home residents. As part of the scheme, Jackson was required to pay Golden one-half of whatever she received in grant funds, less any funds to be withheld for payment of taxes, which were never paid, and to pay Golden kickbacks for each background investigation performed by the security firm.
As a result of the scheme, from 2006 to 2009, Jackson received more than $1,000,000 in grant and contract funds, and paid Golden approximately $433,000 in kickback payments. For tax years 2006, 2007, 2008, and 2009, Jackson failed to report approximately $908,266 in income, resulting in failure to pay $172,825 in taxes due.
Golden is scheduled to be sentenced on June 19, 2015, for her role in the bribery and kickback scheme and for obstruction of justice.
Central District of Illinois U.S. Attorney Jim Lewis expressed his appreciation to the federal law enforcement officers assigned and the agencies that support the Central District of Illinois U.S. Attorney’s Office’s Public Corruption Task Force and participated in this investigation: the U.S. Postal Inspection Service, Chicago Division; Internal Revenue Service, Criminal Investigation Division, Chicago Field Office; the Illinois Secretary of State Office of Inspector General; and, Illinois State Police, Division of Internal Investigations. 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.
Individuals who wish to provide information to law enforcement regarding matters of alleged public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
Peoria Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
Peoria, Ill. – Seth Morris, 25, of the 1000 block of N. Glenwood, Peoria, Ill., entered a plea of guilty yesterday, in federal court, to one count of sexual exploitation of a minor, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. Sentencing has been scheduled for Oct. 14, 2015, before U.S. District Judge Joe Billy McDade.
During the plea hearing, on June 8, Morris admitted that in mid to late 2014, he took sexually explicit photographs of himself with a young child. Morris then used his cell phone to send the images to a 14-year-old girl on the social networking service, MeetMe, and requested that the girl send him similar photos of a young child that she knew.
On Dec. 26, 2014, agents of the U.S. Secret Service and Washington Police Department executed a search warrant at Morris’s home, and Morris’s cell phone was seized. Morris admitted that the phone was used to chat with a female under the age of 18 through MeetMe and that he had sent her sexually explicit images of a minor in an effort to receive additional images of child pornography in exchange.
The statutory maximum penalty for the offense of sexual exploitation of a minor is up to 30 years in prison, and a fine of $250,000.
The case is being prosecuted by Assistant U.S. Attorney Ron Hanna. The charge is the result of an investigation conducted by the U.S. Secret Service and a Special Task Force Officer from the Washington Police Department.
Morris has remained in the custody of the U.S. Marshals Service since his arrest in December 2014.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Grand Jury Charges Kankakee County Man with Bank Fraud Related to Construction LoansRead the Press Release
Springfield, Ill. – A federal grand jury has indicted a Bourbonnais, Ill., man, Daniel Ballard, 56, on charges of bank fraud in an indictment returned yesterday. The U.S. Clerk of the Court will issue a summons to Ballard to appear for arraignment in federal court in Urbana.
The three-count indictment alleges that Ballard obtained a construction loan in December 2009, in the amount of $260,000, to build a residence at 3013 Stone Fence Drive in Bourbonnais. As part of the fraud scheme, and to allegedly obtain money from the bank to build the residence on Stone Fence Drive, 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, Ballard allegedly 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 indictment alleges the costs of labor and materials were substantially below the amount represented or were not furnished to the Bradley properties at all. As a result, the bank was allegedly exposed to a loss of more than $400,000.
If convicted, each count of bank fraud carries a penalty of up to 30 years in prison and a fine of up to $250,000.
The charges are the result of investigation by the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General. Assistant U.S. Attorney Eugene M. 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.
Marshall County Man Sentenced to 18 Years in Prison for Sexual Exploitation of MinorsRead the Press Release
Peoria, Ill. - Chief U.S. District Judge James E. Shadid today sentenced Brian A. Miller, 37, of Varna, Ill., to serve 18 years in federal prison, to be followed by 15 years of supervised release. Miller was convicted following a two-day bench trial, on May 20, 2014, of 22 counts of sexual exploitation of a minor. Miller has remained detained in the custody of the U.S. Marshals Service since August 2013, when he was arrested and charged in a federal criminal complaint.
Evidence the government presented during the trial demonstrated that from at least July 2011 through May 2012, on at least 22 occasions, Miller used a cell phone to take images of minors from a hole in the wall of his home while the minors were using a shower.
The charges were investigated by the U.S. Secret Service; the Marshall County Sheriff’s Office, the Peoria County Sheriff’s Office and the Bloomington Police Department. Assistant U.S. Attorney Timothy A. Bass prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Countryside Police Chief, Kankakee County Sheriff’s Deputy Sentenced to More Than Two Years in Prison for Mail Fraud, Money Laundering, Tax EvasionRead the Press Release
Peoria, Ill. - Chief U.S. District Judge James E. Shadid today sentenced Timothy J. Swanson, former Countryside Chief of Police and deputy with the Kankakee County Sheriff’s Office, to prison. Swanson, 56, of Bourbonnais, Ill., was ordered to serve 27 months in federal prison, to be followed by a three-year term of supervised release. Swanson was ordered to pay restitution to victims in the amount of $229,128 as well as $55,140 in back taxes. Swanson was ordered to report on Aug. 11, 2015, to the federal Bureau of Prisons to begin serving his sentence.
On Jan. 27, 2015, Swanson entered open pleas of guilty to all seven charged counts in the indictment: two counts of mail fraud, one count of money laundering, two counts of tax evasion, and two counts of filing a false tax return. During the change of plea proceeding, the government provided the following factual basis to the Court in support of the defendant’s open plea of guilty:
Swanson was employed as the City of Countryside, Ill., Chief of Police in 2005 and 2006. After leaving the police department, in 2009, Swanson joined the Kankakee County Sheriff’s Office. During 2005 and 2006, Swanson obtained the use of two U.S. Department of Defense helicopters to be used for law enforcement activities. To obtain funds to operate the helicopters, Swanson established the Illinois Regional Air Support Service (IRASS) as a tax-exempt organization. No officer or director was to profit from its operation.
From at least 2005 through 2012, Swanson solicited police departments, corporations and individuals to make contributions to IRASS. From 2006 to 2010, Swanson used a credit card in the name of IRASS to make personal purchases and used money donated or awarded to IRASS to make payments on the credit card. Swanson also used this money to purchase Rotors & Wings, LLC., a business that he operated.
The charges resulted from an investigation by the U.S. Department of Defense, Defense Criminal Investigative Service; the Federal Deposit Insurance Corporation Office of Inspector General; and Internal Revenue Service Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller.
East Moline Man, Woman Indicted on Charges of Conspiracy, Wire Fraud Stemming from Internet ScamRead the Press Release
Rock Island, Ill. – Arraignment and detention hearings have been scheduled on Monday, June 1, 2015, in federal court for an East Moline, Ill., man and woman charged with participating in a conspiracy to defraud victims using Facebook and email. Barbara Segura, 57, and Frederico Sausedo, 48, both of the 1000 block of Avenue of the Cities, made their initial appearance in federal court in Rock Island today before U.S. District Judge Sara Darrow. Both defendants were ordered to remain detained in the custody of the U.S. Marshals Service pending Monday’s hearing at 11:00 a.m. The grand jury returned the 10-count indictment last week; however, the indictment remained sealed pending the defendants’ court appearance today.
The indictment alleges that from approximately June 2014 to February 2015, Segura and Sausedo conspired with others to target victims using Facebook to offer large amounts of money in the form of prizes or grants. Victims were allegedly told they would receive prizes or grants as long as they first paid taxes and fees to Segura or Sausedo. The indictment alleges that individuals duped by this scheme wired payments to bank accounts held by Segura or Sausedo, but never received prizes or grants. Segura and Sausedo allegedly withdraw the proceeds of the wire transfers and sent much of it to co-conspirators in Nigeria and elsewhere. The indictment alleges that the losses from this scheme were at least $95,000.
If convicted, the offense of conspiracy (one count) to commit wire fraud carries a maximum penalty of five years in prison and a $250,000 fine. If convicted of wire fraud (nine counts), the statutory maximum penalty for each count is 30 years in prison and a fine of up to $1,000,000.
Assistant U.S. Attorney Micah Reyner is prosecuting the case. The charges are the result of an investigation by the East Moline Police Department and the Federal Bureau of Investigation.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Springfield Woman Sentenced to Nearly Four Years in Prison for Embezzling More Than $400,000 from Former EmployerRead the Press Release
Springfield, Ill. – In court this morning, U.S. District Judge Sue E. Myerscough sentenced a Springfield, Ill., woman, Alice M. Foss, 53, to serve 46 months in federal prison for embezzling more than $400,000 from her former employer, a Springfield consulting and lobbying firm. During a jury trial in January 2015, Foss pled guilty to the charges against her: mail fraud (five counts), wire fraud (seven counts), and access device fraud (one count.)
Foss was ordered to pay restitution in the amount of $464,925. Foss was ordered to report to begin serving her prison term on a date to be determined by the federal Bureau of Prisons.
At her plea hearing, on Jan. 20, 2015, Foss admitted that she embezzled money from Don Moss and Associates from May 1997 to October 2009. At the time of the fraud, Foss was employed as the firm’s chief financial officer and in that capacity, had check-signing authority and control over the firm’s bank account and was responsible for paying the firm’s business expenses.
As part of the fraud scheme, Foss admitted that she repeatedly wrote fraudulent bonus checks to herself as well as checks she falsely represented were reimbursements for business expenses, when, in fact, the false expenses were simply one of the means she used to conceal her embezzlement. Foss admitted that she repeatedly used DMA’s bank account and credit card account to pay personal expenses, including personal car payments, donations to a private school, and payments to personal credit cards. Foss also used the DMA credit card to pay for personal expenses including payments for clothing, groceries, gas, car washes and rentals, hotel rooms, hair salon and spa expenses, and veterinary bills.
The charges were investigated by the U.S. Postal Inspection Service and the FBI. The case was prosecuted by Assistant U.S. Attorney Timothy A. Bass.
Seventh Defendant Indicted on Federal Charge of Heroin Distribution Resulting in DeathRead the Press Release
Rock Island, Ill. – A Rock Island, Ill., man, Phil Trent, 50, of the 2900 block of 11 1/2 Ave., appeared in federal court this morning for arraignment on a charge of distribution of heroin resulting in death. Trent becomes the seventh defendant charged in the past year with distribution of heroin that resulted in death in the Rock Island Division of the U.S. Attorney’s Office for the Central District of Illinois.
The grand jury returned the indictment against Trent earlier this week; however, the indictment remained sealed pending Trent’s appearance in federal court before U.S. District Judge Sara Darrow, who scheduled Trent’s trial for July 27, 2015. Trent was also ordered to remain in the custody of the U.S. Marshals Service.
The two-count indictment alleges that on Aug. 29, 2014, Trent distributed heroin in Rock Island County, and that the heroin resulted in a death. Count two of the indictment alleges Trent also distributed heroin on Oct. 1, 2014.
In addition to Trent, since April 2014, six defendants have been charged with distribution of heroin resulting in death in the Rock Island Division:
Kyle Joseph Wilson, 25, address unknown, indicted in April 2014 on a charge of distributing heroin that caused the death of another person. On Sept. 24, 2014, Wilson pleaded guilty and is scheduled to be sentenced on July 23, 2015.
Steven Waldrip, 47, of Rock Island, Ill., indicted July 22, 2014, on four counts of distributing heroin, including one count of heroin distribution resulting in the death of another person. On May 15, 2015, Waldrip pleaded guilty to three counts of distributing heroin; Waldrip is scheduled for trial in July 2015, on the remaining charge of heroin distribution resulting in death.
Courtney Davis, 37, of Aledo, Ill., and Bradley DeVriese, 23, address unknown, indicted Feb. 18, 2015, charged with distribution of heroin on July 2, 2014, that resulted in death. A jury trial is scheduled for July 6, 2015, for DeVriese; Davis’s trial date is pending.
Kyle Hull, 22, of the 8500 block of Ridgewood Road, Rock Island, Ill., and Curtis Land, 52, of the 2900 block of 11 1/2 Ave., Rock Island, entered pleas of guilty on May 19, 2015, to distributing the fatal dose of heroin that resulted in a death last year. Land also pled guilty to distributing heroin on another occasion. Sentencing has been scheduled for Sept. 17, 2015.
During court hearings and according to court documents, Land admitted that he gave heroin to Hull in exchange for $90 on Aug. 29, 2014, and again on Aug. 30, 2014. Hull admitted that on Aug. 29, 2014, he purchased the heroin from Land, for his friend, and that he supplied a syringe to his friend to inject the heroin. Hull’s friend fell asleep after injecting the heroin in a park in Rock Island and Hull left. Hull checked on his friend later and found him unconscious, but did not call an ambulance. When Hull returned to the park on the morning of Aug. 30, Hull discovered his friend had died. Both Hull and Land admitted that the death was the direct result of the heroin distribution.
The charges against Trent, Hull and Land are the result of investigation by the Rock Island Police Department; Assistant U.S. Attorneys Don Allegro and Meredith DeCarlo are prosecuting the cases.
The charges against Davis and DeVriese were investigated by the Mercer County Sheriff’s Office and the Aledo Police Department. Assistant U.S. Attorneys Don Allegro and Meredith DeCarlo are prosecuting the case.
Charges against Wilson and Waldrip were investigated by the Bettendorf, Iowa Police Department, the Quad Cities Metropolitan Enforcement Group, and the U.S. Drug Enforcement Administration. The cases are being prosecuted by Assistant U.S. Attorneys Don Allegro and Micah Reyner.
The statutory penalty for distribution of heroin resulting in death is a mandatory minimum term of 20 years, and up to life, in prison, and a fine of up to $1,000,000. The statutory maximum penalty for each count of heroin distribution is 20 years in prison and a fine of up to $1,000,000.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Four Indicted on Federal Gun Charges in Rock IslandRead the Press Release
Rock Island, Illinois - Four men have been indicted on separate federal gun charges in the Rock Island Division of the United States District Court, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. A federal grand jury returned the indictments earlier this week but the charges remained sealed pending their arrests and court appearances.
Chavonte A. Bragg, 23, of the 900 block of 14th and ½ Street, Rock Island, IL, has been charged in a three-count indictment with possessing crack cocaine with intent to distribute, possessing a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm. The indictment alleges that on April 22, 2015, Bragg possessed at least 28 grams of crack cocaine with the intent to distribute. The indictment also alleges Bragg possessed a handgun in furtherance of a drug trafficking crime, and that Bragg possessed that handgun after having been previously convicted of a felony offense. If convicted on all charges, the statutory maximum penalty is life in prison and a fine of up to $8,500,000. The case is being prosecuted by Assistant U.S. Attorney Micah Reyner, and the charges are the result of an investigation by the Rock Island Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Defendant Bragg appeared in federal court in Rock Island this morning for his initial appearance before U.S. District Judge Sara Darrow. Bragg was also ordered to remain in the custody of the U.S. Marshals Service.
Walker Hampton, 40, of Viola, Ill., has been charged in a four-count indictment with robbery, brandishing a firearm during and in relation to the robbery, possession of stolen firearms, and being a felon in possession of firearms. The indictment alleges that Hampton robbed two employees of the U.S. Post Office in Taylor Ridge, Ill., on Jan. 24, 2015, and that he brandished a handgun during and in relation to the robbery. The indictment further alleges that on Feb. 25, 2015, Hampton possessed stolen firearms and was a felon in possession of firearms. If convicted on all counts, Hampton faces a mandatory minimum sentence of seven years in prison and a statutory maximum of life in prison, and a fine of up to $1,000,000. Hampton was arrested on Feb. 25, on state charges in Mercer County, Illinois and will be transferred to federal custody to be arraigned in U.S. District Court in Rock Island. The case is being prosecuted by Assistant U.S. Attorney Micah Reyner; the charges are the result of an investigation by the Rock Island County Sheriff’s Office, the Mercer County Sheriff’s Office, the U.S. Postal Inspection Service, and the U.S. Bureau of Alcohol, Firearms, Tobacco, and Explosives. Hampton appeared in federal court in Rock Island this morning for his initial appearance before U.S. District Judge Sara Darrow. Hampton was also ordered to remain in the custody of the U.S. Marshals Service.
Kenneth Russell, 34, of the 500 block of 6th Street, Rock Island, Ill., has been charged with being a felon in possession of firearms. The indictment alleges that on April 16, 2015, Russell unlawfully possessed a handgun after having previously been convicted of a felony offense. If convicted, the statutory maximum penalty is ten years in prison, and a fine of up to $250,000. The case is being prosecuted by Assistant U.S. Attorney Micah Reyner, and the charges are the result of an investigation by the Quad City Metropolitan Enforcement Group, the Rock Island Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Jones appeared in federal court in Rock Island this afternoon for his initial appearance before U.S. District Judge Sara Darrow.
Brandon Willis McNeal, 24, of the 1600 block of 12th Avenue, Moline, Ill., was charged by the grand jury earlier this week with being a felon in possession of a firearm. The indictment remained sealed pending McNeal’s arrest. The indictment alleges that on Apr. 27, 2015, McNeal unlawfully possessed a handgun after having previously been convicted of a felony offense. If convicted, the statutory maximum penalty is ten years in prison, and a fine of up to $250,000. The case is being prosecuted by Assistant U.S. Attorney John Mehochko, and the charges are the result of an investigation by the Moline Police Department and the Federal Bureau of Investigation. McNeal appeared in federal court in Rock Island this afternoon for his initial appearance before U.S. Magistrate Judge Stephen B. Jackson, Jr. McNeal was also ordered to remain in the custody of the U.S. Marshals Service.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Logan County Sex Offender to Serve 25 Years in Federal PrisonRead the Press Release
Springfield, Ill. – U.S. District Judge Sue E. Myerscough today sentenced Ronald L. Collins, 56, a sex offender, to a term of 300 months (25 years) in federal prison for receiving images of child pornography. Judge Myerscough further ordered that Collins, of Lincoln, Ill., pay a fine of $5,000., and upon completion of his 25-year sentence, to remain on supervised release for life.
Collins pled guilty in January to receiving images of child pornography on his cell phone from June 2013 to May 2014. At the time Collins committed the offense, he had a prior felony conviction for aggravated criminal sexual abuse in Montgomery County, Ill.
The charge was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Lincoln Police Department. The case was prosecuted by Assistant U.S. Attorney John E. Childress.
Collins has remained in the custody of the U.S. Marshals Service since he was charged by federal indictment in September 2014. He was previously in the custody of the Logan County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Champaign Business Owner to Serve 27 Months in Prison for Filing False Income Tax ReturnsRead the Press Release
Urbana, Ill. – A former Champaign, Ill. businessman, Michael Fogerson, has been sentenced to 27 months in prison for filing false income tax returns. On Friday, U.S. District Judge Harold A. Baker further ordered that Fogerson, 52, serve one year of supervised release following his release from prison. Fogerson was ordered to report on July 20, 2015, to the federal Bureau of Prisons to begin serving his sentence. Fogerson was also ordered to pay restitution in the total amount of $465,211 to the IRS, as well as a $200 special assessment.
On March 17, 2015, Fogerson, pleaded guilty to two counts of filing false income tax returns. According to court records, Fogerson was the owner, sole proprietor, and operator of The Smoke Shack in Champaign, Ill., and The Smoker’s Den in Decatur, Ill. During 2009, 2010, and 2011, The Smoke Shack sold tobacco-related products, as well as synthetic marijuana prior to its regulation by state and federal authorities. For tax years 2009 and 2010, Fogerson sold bulk quantities of synthetic marijuana to tobacco product stores similar to The Smoke Shack that operated outside of the Champaign and Decatur area. Fogerson admitted that he failed to report to the IRS the profits generated from these bulk sales.
The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller. The charges were investigated by the Internal Revenue Service Criminal Investigation Division.
Indiana Man Charged with Sexual Exploitation of Macon County MinorRead the Press Release
Springfield, Ill. – Jim Lewis, U.S. Attorney for the Central District of Illinois, announced that a federal grand jury in Springfield returned an indictment today that charges Shawn Shannon, 43, of Muncie, Ind., with one count each of sexual exploitation of a minor and possession of child pornography.
The indictment alleges that from Feb. 28, to March 1, 2015, Shannon enticed, used and coerced a minor to engage in sexually explicit conduct for the purposes of producing visual images of said conduct. The indictment further alleges that Shannon possessed images of child pornography during that same time period.
Shannon’s arraignment is scheduled for May 12, 2015, at 1:30 p.m. before U.S. Magistrate Judge David G. Bernthal in the U.S. courthouse in Urbana.
If convicted, the statutory penalty for sexual exploitation of a minor is 15 to 30 years in prison plus a fine of up to $250,000; the penalty for possession of child pornography is up to 10 years imprisonment plus a fine of up to $250,000.
Shannon was previously charged in a criminal complaint and was arrested on Apr. 15, 2015, in Muncie, Ind. Shannon appeared before U.S. District Judge Colin S. Bruce on April 20, and was ordered to remain detained in U.S. Marshals Service custody.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by the Decatur Police Department and U.S. Immigration and Customs Enforcement Homeland Security Investigations.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Illinois Couple Indicted for Kidnapping and Transportation of A Minor with Intent to Engage in Sexual ActivityRead the Press Release
WASHINGTON – A federal grand jury indicted an Illinois couple on charges of kidnapping and transportation with intent to engage in criminal sexual activity with a minor, 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 Division.
“Parents with adopted children who are struggling are all too frequently targets for those willing to say and do whatever it takes to gain access to those vulnerable children,” said Assistant Attorney General Caldwell. “The Criminal Division is committed to bringing to justice anyone who seeks to exploit children and risk their safety. Every child in America deserves a safe home.”
“Protecting children is a community responsibility,” said U.S. Attorney Lewis. “Law enforcement relies on the assistance of proactive neighbors, school officials and parents to protect our kids.”
“The FBI is dedicated to the protection of children,” said Special Agent in Charge Cox. “We will continue to use our resources to pursue those who would exploit them for their own benefit.”
Nicole Eason, 37, and Calvin Eason, 46, formerly of Danville and Westville, Illinois, were charged in an indictment unsealed today with two counts of kidnapping of a minor and one count of transportation of a minor. They were previously charged by a criminal complaint and arrested on April 3, 2015, in Tucson, Arizona. The couple has remained in custody since their arrest.
According to allegations in the criminal complaint, Nicole and Calvin Eason participated in an online adoption discussion board in 2006 and 2007, and sought to adopt a child through a process sometimes referred to as private “re-homing.” This practice is often associated with “disrupted” or failed adoptions, when an adoptive family places their child in another home because the adoptive family can no longer care for the child.
According to the complaint, the Easons communicated with a minor’s parents and allegedly misrepresented material facts about their background to gain the parents’ trust. The Easons also allegedly lied about having a home study “waiver,” which the parents believed was needed to transfer custody of their child. Based on the Easons’ false misrepresentations, the parents transported their child across state lines in 2007. Both Nicole and Calvin Eason allegedly sexually abused the child while he/she was in their custody.
The indictment further alleges that Nicole and Calvin Eason kidnapped a second minor in the same manner in 2008. The Easons allegedly transported the second minor across state lines.
The allegations and charges contained in the complaint and indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.This case is being investigated by FBI’s Springfield Division. The case is being prosecuted by Trial Attorney Jennifer Toritto Leonardo of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Elly Peirson of the Central District of Illinois.
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, 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.
Bourbonnais Tax Preparer Sentenced to 24 Months in Prison for Filing False Income Tax ReturnsRead the Press Release
Peoria, Ill. – A Bourbonnais, Ill., man, Robert J. Deangelo, has been sentenced to two years in prison for filing false income tax returns. On May 4, Senior U.S. District Judge Michael M. Mihm ordered that Deangelo, 63, serve 24 months in federal prison, and one year of supervised release following his release from prison. Deangelo was ordered to report on July 14, 2015, to the federal Bureau of Prisons to begin serving his sentence. Deangelo was also ordered to pay restitution in the total amount of $62,947.00 to the IRS, as well as a $1,200.00 special assessment. In addition, Deangelo was ordered to pay the cost of prosecution in the amount of $5,962.39 to the United States.
On Dec. 10, 2014, a jury convicted Deangelo of 12 counts of filing false income tax returns. From 2007 to 2010, DeAngelo provided tax services from his home office, on St. Pauls Drive, Bourbonnais, that included the preparation and filing of tax returns for hundreds of clients. During the trial, the government presented evidence to establish that for the 2008, 2009, and 2010 tax years, DeAngelo falsely underreported his tax business’s gross receipts and inflated its expenses. Despite receiving tens of thousands of dollars in income during this time, DeAngelo paid no federal income tax for those years, and in fact, claimed an earned income credit. For tax years 2008, 2009, and 2010, DeAngelo failed to pay more than $30,000 in federal income taxes that were due and owing. During this time period, DeAngelo also created false employee business expense deductions, namely unreimbursed business mileage, for his tax return clients, without their knowledge. The false income tax returns provided larger refunds for DeAngelo’s clients and resulted in an overall tax loss of more than $50,000.
During the jury trial, DeAngelo testified on his own behalf. At sentencing, Judge Mihm found that DeAngelo’s trial testimony was “outrageous” and that he committed perjury during his trial. Judge Mihm cited the perjured testimony and the need to deter other paid tax preparers from committing tax fraud as reasons in support of the sentence of imprisonment. Judge Mihm also prohibited DeAngelo from preparing tax returns for other individuals during the period of his supervised release.
The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller. The charges were investigated by the Internal Revenue Service Criminal Investigation Division.
Conspirators in Mall Kidnapping Hoax SentencedRead the Press Release
Urbana, Ill. –The woman at the center of a hoax kidnapping from a Champaign, Ill., mall in June 2014, and her alleged kidnapper, were sentenced today, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. Monica Adriana Zacatlan Ramirez, 20, of Urbana, was ordered to serve 18 months in federal prison. Eduardo Guerrero Cortez, 26, of Mexico, was sentenced to 10 months in prison. Both have remained detained in the custody of the U.S. Marshals Service since their arrests in July 2014. In addition, both Ramirez and Cortez were ordered to pay restitution in the amount of $45,374, to the Federal Bureau of Investigation, the Champaign Police Department, the Champaign Sheriff’s Office and the Champaign County State’s Attorney for the time, resources and expenses each of these agencies spent in investigating the hoax kidnapping.
On Dec. 15, 2014, Ramirez pled guilty to conspiracy to provide law enforcement with false statements, making false statements to law enforcement and making false statements to a federal grand jury. On Dec. 19, 2014, Cortez pled guilty to the conspiracy. The third defendant, Jarbey Emerson Reyes Villalobos, 19, of Champaign, pled guilty on Feb. 15, 2015. Villalobos is scheduled for sentencing on May 29, before U.S. District Judge Colin S. Bruce. Villalobos has been in the custody of the U.S. Marshals Service since his arrest on July 25, 2014.
Ramirez, Cortez and Villalobos admitted that they conspired to provide law enforcement with false statements regarding the nature of Ramirez’s kidnapping from Market Place Mall in Champaign on June 11, 2014. In fact, there was no force, threat or coercion involved in the kidnapping of Ramirez and she voluntarily consented, agreed, and participated in the planning of the hoax so that her willingness to be with Cortez would be concealed from her family members who did not approve of him.To advance the scheme, prior to the hoax kidnapping, Ramirez petitioned the circuit court in Champaign for an emergency order of protection against Cortez. After the court granted the order of protection, Ramirez called Cortez and told him to pick her up from the Market Place Mall and make it appear that she was taken by force. Cortez recruited Villalobos, armed with a knife, and another individual, to go to the mall, collect Ramirez and put her into their vehicle. Villalobos threatened Ramirez’s companion and the defendants fled the area. From June 11 to June 14, Ramirez, Cortez and Villalobos traveled from Illinois to Texas.
The charges were investigated by the Champaign Police Department; the Federal Bureau of Investigation, Springfield and Houston Divisions; the Champaign County State’s Attorney’s Office; and, U.S. Immigration and Customs Enforcement Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Elly M. Peirson.Villa Grove Man Sentenced to 17 ½ Years in Prison for Sexual Exploitation of Multiple ChildrenRead the Press Release
Urbana, Ill. – A Villa Grove man, whose last known address was the Knight’s Inn in Arcola, Ill., David E. Auteberry, 54, of Villa Grove, today was sentenced to 17 ½ years (210 months) for sexual exploitation of minors, announced U.S. Attorney Jim Lewis, Central District of Illinois. In addition, U.S. District Judge Colin S. Bruce ordered Auteberry to register as a sex offender for his natural life and to remain on supervised release for an additional 10 years following completion of his prison sentence.
Auteberry pled guilty on September 16, 2014, to four counts of sexual exploitation of a minor and agreed to the forfeiture of all of his computer media. According to court documents, Auteberry targeted minors through a popular social networking website, posing as a teen-aged boy. Auteberry coerced the minors to engage in sexually explicit conduct and produce images of said conduct. Auteberry was arrested on May 2, 2014 and has remained in the custody of the U.S. Marshals Service since his arrest.
The case was prosecuted by Assistant U.S. Attorney Elly Peirson. The charges were investigated by the Federal Bureau of Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Tennessee Sex Offender Sentenced to 25 Years in Prison for Enticement of A Minor and Travel with Intent to Engage in Illicit Sexual ConductRead the Press Release
Springfield, Ill. – A repeat child sex offender, Joseph Cain Harrison, 38, of Nashville, Tenn., was sentenced to 25 years (300 months) in prison today for enticement of a minor and two counts of travel with the intent to engage in illicit sexual conduct, announced U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge Sue E. Myerscough sentenced Harrison in federal court in Springfield, Ill.
Harrison was convicted on December 5, 2014, of one count of enticement of a minor, two counts of travel with the intent to engage in illicit sexual conduct, and committing a felony sex offense on a minor while a registered sex offender. During Harrison’s three day trial held in Urbana, Ill., the government presented evidence that between July 1, 2011, to Jan. 20, 2012, Harrison used the Internet and a cellular telephone to entice an individual whom he believed to be 13 years of age to engage in sexual activity. The jury also heard evidence that Harrison traveled from Nashville, Tenn., to Champaign, Ill., on two occasions, Jan. 13, 2012, and Jan. 17, 2012, for the purpose of engaging in any illicit sexual conduct with a minor.
Harrison was indicted by a grand jury in March 2012, following his arrest in the Middle District of Tennessee on January 20, 2012. Harrison has remained in the custody of the U.S. Marshals Service since his arrest.
The charges are the result of an investigation by the U.S. Secret Service, Springfield, Ill., and Nashville, Tenn., divisions; the Champaign Police Department; and the Nashville Metropolitan Police Department Sex Crimes Unit. The case is being prosecuted by Assistant U.S. Attorney Elly Peirson with the cooperation of Champaign County State=s Attorney Julia Rietz.
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.
Tuscola Businessman Charged with Income Tax EvasionRead the Press Release
Springfield, Ill. – A Tuscola, Ill., businessman is scheduled to appear for arraignment later this month on federal charges that he allegedly failed to pay more than $1.12 million in income tax for the 2008 and 2009 tax years. Last week, a grand jury returned the indictment charging Lorenzo Shane Stewart, owner of Ten Acres Excavating, Tuscola, with two counts of income tax evasion. Stewart’s arraignment has been scheduled on April 29, 2015, in Urbana.
According to court documents, in 2006, Stewart, 48, began conducting his excavation and construction business under the name Ten Acre Excavating. Stewart put the business under the name of one of his employees, although Stewart allegedly operated the business and received the income generated from the business. As a result, Stewart did not claim income generated by Ten Acre Excavating on his own tax returns.
In approximately July 2008, Stewart was awarded contracts to perform excavating and construction work on several natural gas pipeline substations that were being built in the Tuscola area in 2008 and 2009. Stewart and his employees performed work on these substations and received checks related to this pipeline work totaling approximately $1.7 million in 2008 and $5.9 million in 2009. Stewart allegedly claimed his adjusted gross income for 2008 was approximately $74,199, when in fact, the indictment alleges his adjusted gross income for 2008 was approximately $279,803. For 2009, Stewart allegedly claimed his adjusted gross income was approximately $257,361, when in fact, his adjusted gross income was approximately $3,044,980.
If convicted, each count carries a penalty of up to five years in prison, a $100,000 fine plus the costs of prosecution, and restitution.
The charge is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Champaign Property Developer Charged with Bank FraudRead the Press Release
Urbana, Ill. – A Champaign, Ill., real estate developer, Gene T. Hardwick, 72, is scheduled to appear for arraignment on April 27, 2015 in Urbana, following an indictment returned last week charging him with one count of bank fraud related to a $3.9 million loan.
The indictment alleges that Hardwick obtained a $3.9 million bank loan in 2007 to construct a 64-unit apartment building at 611 East Park Street, Champaign. From 2007 into at least 2009, Hardwick allegedly diverted funds from the stated purpose of the loan to fund other projects including approximately $800,000 toward a senior living facility in Tuscola, and additional funds to pay personal expenses such as real estate taxes and credit card bills.
If convicted, bank fraud carries a penalty of up to 30 years in prison and a fine of up to $1 million.
The charge is the result of investigation by the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General. Assistant U.S. Attorney Jason M. Bohm 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.
Rantoul Man Charged with Child Pornography OffensesRead the Press Release
Springfield, Ill. – A federal grand jury in Springfield today returned an indictment charging Edward C. Brown, 35, of the 1200 block of Sycamore Street, Rantoul, Ill., with distribution and possession of child pornography.
The indictment alleges that from January 2015 to March 2015, Brown distributed and possessed images and videos of minors engaged in sexually explicit conduct. The indictment also seeks forfeiture of computers and related materials allegedly used to commit or promote the offenses.
If convicted, the statutory penalty for each count of distribution of child pornography (two counts) is a mandatory minimum five years in prison to 20 years in prison and a term of supervised release of up to life following any term of imprisonment. If a defendant has a prior child sex abuse or child pornography conviction, the statutory penalty is not less than 15 years and up to 40 years in prison. For possession of child pornography (one count), the penalty is up to 10 years in prison.
Brown was arrested on March 11, 2015, and charged in a criminal complaint with distribution of child pornography. During a court appearance on March 12, 2015, before U.S. District Judge Colin S. Bruce, in Urbana, Brown was ordered detained in the custody of the U.S. Marshals Service.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Urbana Police Department, the Rantoul Police Department, and the Illinois Secretary of State.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Former Champaign Business Owner Pleads Guilty to Filing False Income Tax ReturnsRead the Press Release
Urbana, Ill. – Sentencing is scheduled on May 8, 2015, for former business owner Michael S. Fogerson of Champaign, Ill. Yesterday, Fogerson pleaded guilty to two counts of filing a false tax return, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. Fogerson remains on bond following his appearance yesterday before U.S. District Judge Harold A. Baker.
According to court documents, Fogerson, 51, was the owner, sole proprietor, and operator of The Smoke Shack in Champaign, Ill., and The Smoker’s Den in Decatur, Ill. During 2009, 2010, and 2011, The Smoke Shack sold tobacco-related products, as well as synthetic marijuana prior to its regulation by state and federal authorities. For tax years 2009 and 2010, Fogerson sold bulk quantities of synthetic marijuana to tobacco product stores similar to The Smoke Shack that operated outside of the Champaign and Decatur area. To lower his individual adjusted gross income, Fogerson failed to report the profits generated from these bulk sales to the Internal Revenue Service. Fogerson admitted he failed to report the profits.
As a result of the unreported receipts from his bulk sales of synthetic marijuana, Fogerson falsely claimed only $28,307 of taxable income on his 2009 Form 1040. In reality, Fogerson had taxable income of approximately $393,799. Thus, Fogerson had an additional income tax due and owing to the United States of America of approximately $128,720 for the 2009 tax year, which he did not pay. Fogerson falsely claimed only $54,522 of taxable income on his 2010 Form 1040. In reality, Fogerson had taxable income of approximately $968,579. Thus, Fogerson had an additional income tax due and owing to the United States of America of approximately $336,491, which he did not pay.
During the investigation, the Internal Revenue Service seized $835,421.89 from Fogerson that was alleged to have been deposited in amounts less than $10,000 to avoid having the bank report the deposits to the Internal Revenue Service. As part of his plea of guilty, Fogerson agreed that $465,211 of the seized currency would be used to pay his back taxes for 2009 and 2010 and that the remaining currency would be forfeited to the United States Treasury.The maximum statutory penalty for each count of filing a false tax return is three years in prison, and a fine of up to $100,000, plus the costs of prosecution.
The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller. The charges are the result of an investigation by Internal Revenue Service, Criminal Investigation Division.
Kankakee Felon Sentenced to Maximum Prison Term for Possession of A Firearm Used in ShootingRead the Press Release
Urbana, Ill. B Sentray D. Coney, 25, of the 700 block of South Lincoln Ave., Kankakee, Ill., has been sentenced to the maximum 10 years in federal prison for illegal possession of a firearm by a felon. At sentencing, yesterday afternoon, U.S. District Judge Harold A. Baker found that on May 19, 2014, Coney, a convicted felon, used a firearm to shoot a victim in the leg in Kankakee as retaliation for a tavern shooting earlier that morning. The 120 month sentence is the maximum permitted by law for the offense of conviction. On Sept. 5, 2014, Coney pled guilty to the offense. He has been in the custody of the U.S. Marshals Service since his arrest in May 2014.
According to court records and documents, Kankakee police officers arrested Coney in the early morning of May 19, 2014, at 3:15 a.m. Officers were conducting an investigation of a shooting death at the Whatever Tavern in Kankakee when they heard multiple gunshots from a nearby location. The victim was walking in the alley near a residence at the 300 block of East Bourbonnais St, Kankakee, when he was shot. A bullet remained lodged in the victim’s leg and he was taken to a hospital emergency room for treatment.
Following the second shooting, officers observed a dark blue, full size GMC van driving very fast in the area with no headlights. An officer in a squad car attempted to stop the van by getting behind the van and activating his overhead squad lights near the intersection of East Station St. and S. Schuyler Ave. An officer in another squad car pulled in front of the van. As the van came to a stop, the passenger side door opened, and Coney jumped from the van. Officers observed a gun in Coney’s right hand as he ran north on Schuyler Ave., and gave chase. As Coney continued to run, officers saw him drop the gun on the sidewalk in front of Johnny’s Pizza. Officers caught and tackled Coney and arrested him.
Officers recovered the gun Coney dropped, a black, Beretta, Model 92FS, nine millimeter, semi-automatic pistol. The pistol had a round in the chamber, the hammer cocked back, and the safety off. The pistol contained an extended magazine loaded with approximately 12 additional rounds of 9 millimeter ammunition.
After Coney was arrested, officers investigated the area where the victim had been shot, and found nine 9 millimeter shell casings in the alley and yard where the shooting occurred. The 9 millimeter shell casings were sent to the forensic laboratory of the Bureau of Alcohol, Tobacco, Firearms and Explosives which determined they were fired by the Beretta pistol that Coney dropped. The Illinois State Police forensic lab analyzed swabs of Coney’s hands, taken at the Jerome Combs Detention Center following his arrest, and determined that both of Coney’s hands contained gunshot residue particles.
At the time of the offense, Coney had prior convictions in Illinois for domestic battery, possession of cannabis, and possession of a firearm by a street gang member.
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.
Three Felons Sentenced to Prison for Kankakee Drug and Firearms OffensesRead the Press Release
Urbana, Ill. B Two men with prior felony convictions that designated them as career offenders, cousins Jermaine R. Speed and Rico J. Speed were sentenced today to 18 years in federal prison, and a third man, Charles D. Nance, was sentenced to nearly 10 years in prison, for illegal possession of firearms and distribution of crack cocaine, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. The men have been in the custody of the U.S. Marshals Service since their arrests in September 2014.
Jermaine R. Speed, 32, of the 900 block of Merchant Street, Kankakee, was ordered to serve 18 years (216 months) in prison. According to the government’s factual basis presented in court, between June 2010 and October 2011, Speed illegally sold crack cocaine to a confidential informant on four separate occasions. Speed has four prior felony drug convictions in Illinois.
Rico J. Speed, 27, of the 1100 block of E. Court Street, Kankakee, a cousin of Jermaine Speed, was also sentenced to 18 years (216 months) in prison. From July of 2011 to February of 2013, Speed illegally sold four different firearms – a .38 caliber revolver, a .32 caliber revolver, a .45 caliber semi-automatic pistol, and a .12 gauge shotgun – to a confidential informant, according to court records. During that same time frame, Rico Speed also sold the confidential informant over 28 grams of crack cocaine. Speed has prior Illinois convictions for possession of a controlled substance with the intent to deliver and delivery of a controlled substance.
Charles D. Nance, 42, of the 1400 block of N. 11th Avenue, Newton, Iowa, was ordered to serve 117 months (9 years, 9 months) in prison for drug and weapon charges. On two occasions, on August 6 and 25, 2010, Nance sold crack cocaine to a confidential informant, according to court documents. At the time of the August 25 drug sale, Nance was armed with a 9 millimeter semi-automatic pistol. On September 9, 2010, agents seized the 9 millimeter pistol, as well as a .45 caliber semi-automatic pistol and more than 100 rounds of ammunition, from Nance’s Kankakee apartment. Nance was ordered to forfeit the firearms and ammunition. Nance has prior felony convictions for unlawful possession of a controlled substance, unlawful delivery of a controlled substance, and maintaining a drug house.
The cases are the result of ongoing investigations related to gun violence in the Kankakee area by the Kankakee Area Project Safe Neighborhoods Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Kankakee Police Department. The cases are being prosecuted by Assistant U.S. Attorney Eugene L. Miller. The Kankakee Area Metropolitan Enforcement Group, Chicago Police Department, Illinois State Police, and Kankakee County Corrections assisted with the initial arrests in September 2014.
Principals and Associates of Local Environmental Consulting Firm Plead Guilty to Multi-Million Dollar Fraud SchemeRead the Press Release
Springfield, Ill. – U.S. Attorney Jim Lewis, Central District of Illinois, announced today that five defendants have recently entered pleas of guilty related to a scheme that defrauded the Illinois Environmental Protection Agency of millions of dollars. The charges against the men relate to a scheme that, over a period of 12 years, from 2001 to 2013, swindled money from a fund administered by Illinois EPA to clean up sites contaminated by leaking underground storage tanks.
The current owner of Environmental Management of Illinois, Inc. (EMI), Michael R. Keebler, 41, of Worthington Chase, Sherman, Ill., entered pleas of guilty late Friday, Feb. 27, to two counts of conspiracy to commit mail fraud. EMI founders, Eric M. Andrews, 51, of Overton Road, Springfield, Ill., and his brother, Joel T. Andrews, 46, of Emerson Road, New Berlin, Ill., each pled guilty yesterday to one count of conspiracy to commit mail fraud. In a separate but related case, Michael Keebler’s brothers, Duane T. Keebler, 42, of Rain Hollow Drive, Maryland Heights, Mo., and Joseph R. Keebler, 44, of South Illinois Ave, Carbondale, Ill., each entered pleas of guilty on Feb. 20, to one count of conspiracy to commit mail fraud.
“These defendants have now admitted that they cheated the taxpayers of this State out of millions of dollars,” said U.S. Attorney Lewis. “We commend the USEPA and the FBI for their determined investigative efforts, in order to bring these defendants to justice.”
Joel Andrews founded EMI in 1997 and served as president, and Eric Andrews joined in 1999 as vice-president. In April of 2001, professional engineer Michael Keebler joined the firm. In 2006, the firm was sold to Michael Keebler, who has remained as the firm’s principal owner and president. EMI is located at 1154 N. Bradfordton Road, Springfield. The environmental consulting firm worked with property owners to cleanup property contaminated by petroleum leaks, spills, or overfills from underground storage tanks. The firm then sought reimbursement of its costs to remediate the land from a fund administered by a designated section within Illinois EPA.
The U.S. EPA has a cooperative agreement with the State of Illinois to administer the UST (underground storage tanks) program. IEPA and the Illinois Office of the State Fire Marshal share administration of the UST fund which assists tank owners and operators with the cleanup costs of petroleum leaks from USTs. The State Fire Marshal administers the preventative and permitting aspects of the program. If there is a spill or leak, IEPA is responsible for oversight of the cleanup investigation and the corrective action, in order to clear the property for use again. State taxes and fees paid on the purchase of gasoline fund the Leaking UST (LUST) program.
According to plea agreements filed by the parties, Michael Keebler, and Eric and Joel Andrews each admitted that they conspired to defraud the LUST fund by artificially inflating expenses they incurred in remediating property. For example, as principals of EMI, they admitted they reached agreements with their vendors to submit two invoices for certain services: one invoice listed the real costs of the service provided and the payment to be made by EMI, and a second invoice which inflated the amount of work performed and supplies used, the amount charged for the work, or both. The inflated invoice would then be provided to Illinois EPA for reimbursement. Keebler and the Andrews would also pay certain vendors a reduced rate, but misrepresent to the Illinois IEPA that they had paid full price. At other times they would simply create or modify an existing invoice to reflect a higher charge than was actually paid and would submit that to IEPA for reimbursement.
In 2003, Keebler, Joel and Eric Andrews created a second company, known as Environmental Control Systems (ECS), which they represented as a separate entity performing services as a subcontractor for EMI on cleanup sites. In fact, ECS performed no service, but the principals would direct the actual subcontractors to invoice ECS, and ECS would pay the subcontractors for the work. An ECS invoice with a substantial mark-up was then presented to Illinois EPA as EMI’s cost for the project.
For example, in June 2006, EMI had a contract to clean a service station site in Dupo, Ill. Several subcontractors were hired to dig and haul away a certain amount of soil, and to backfill the site with clean soil. These subcontractors were paid approximately $250,000 for their services. Nevertheless, EMI falsely represented to Illinois EPA that ECS had performed these services at a cost of $694,415.00, which was the amount of reimbursement paid by the State. In total, Keebler and Joel and Eric Andrews split more than $13.6 million in profits from the company known as ECS.
In a separate but related case, Michael R. Keebler pled guilty to the second count of conspiracy to commit mail fraud for a similar scheme worked with his brothers, Duane and Joseph Keebler. Both Duane and Joseph Keebler pleaded guilty to starting their own environmental consulting firm, TKO Environmental Solutions, Inc., and inflating invoices through a different company they owned, known as Total Contracting Services, LLC, both registered businesses in Carbondale, Ill. In addition, Duane and Joseph Keebler purchased properties which had either been contaminated or were being contaminated by leaking underground storage tanks. As property owners, the brothers would then purport to contract with one of their own companies or with EMI to coordinate the cleanup. In doing so, Duane and Joseph Keebler would directly, and through Michael Keebler, disguise and inflate invoices from subcontractors and submit the fraudulent and inflated invoices to Illinois EPA for reimbursement from the LUST fund.
Another defendant, Jeremy L. VanScyoc, 38, of the 400 block of Elle Court, Springfield, waived indictment on Mar. 10, 2014, and pled guilty to one count of conspiracy to commit mail fraud. VanScyoc admitted that after he joined EMI he agreed to engage in the fraud scheme by inflating subcontractor invoices.
Each count of conspiracy to commit mail fraud carries a maximum possible penalty of five years in prison; fines of up to $250,000 or twice the amount of loss; as well as restitution to the Illinois EPA and forfeiture of any profits from fraudulent transactions. According to plea agreements filed with the court, Joel and Eric Andrews and Michael Keebler have agreed to forfeit various pieces of property and bank accounts. The court, however, will make the final determination of the total amount of loss to be repaid following a hearing which is set to begin on August 10, 2015. Sentencing dates will be set for Michael Keebler, Joel Andrews and Eric Andrews following that hearing.
Both Duane and Joseph Keebler have agreed to a loss amount in their cases, and will pay restitution in the total amount of $179,438. They are scheduled to be sentenced before U.S. District Judge Sue E. Myerscough on June 22, 2015. Jeremy VanScyoc is scheduled to be sentenced on April 13, 2015.
The case is being prosecuted by Assistant U.S. Attorneys Patrick D. Hansen and John E. Childress. The charges are the result of a two-year investigation by the Federal Bureau of Investigation and the U.S. Environmental Protection Agency, Criminal Investigation Division. The investigation was initiated by a former Illinois State Police Inspector on contract with the Illinois Environmental Protection Agency.
Three Kankakee Area Felons Sentenced to Prison for Illegal Possession of FirearmsRead the Press Release
Urbana, Ill. B Three Kankakee area men, with prior felony convictions, have been sentenced to federal prison terms for illegal possession of firearms, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. The men, who have been in the custody of the U.S. Marshals Service since their arrests in September 2014, were sentenced on Friday, Feb. 20.
Antwon T. Crite, 38, last known address St. Anne, Ill., was sentenced to 10 years (120 months) in prison. According to the government’s factual basis presented in court, between November 2013 and June 2014, Crite illegally sold 10 different guns, including three sawed-off shotguns, a SKS assault rifle, and a handgun with an obliterated serial number. Crite has prior Illinois convictions for unlawful possession of a controlled substance and unlawful possession of marijuana.
Charles V. Williams, 39, of the 1200 block of E. Chestnut St., Kankakee, was ordered to serve five years in prison (60 months). On June 27, 2014, Williams illegally sold a 9 millimeter semi-automatic pistol to a person he believed to be a drug dealer, according to court documents. Williams has prior convictions for unlawful delivery of a controlled substance, illegal possession of a firearm, and conspiracy to sell a controlled substance.
Carlton Lashawn Smith, 35, of the 400 block of S. Rosewood Ave., Kankakee, was ordered to serve two and one-half years, (30 months) in prison. On May 17, 2011, Smith illegally sold a .32 caliber pistol. Smith has prior Illinois convictions for attempted armed robbery and delivery of a controlled substance.
The cases are the result of ongoing investigations related to gun violence in the Kankakee area by the Kankakee Area Project Safe Neighborhoods Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Kankakee Police Department. The cases are being prosecuted by Assistant U.S. Attorney Eugene L. Miller. The Kankakee Area Metropolitan Enforcement Group, Chicago Police Department, Illinois State Police, and Kankakee County Corrections assisted with the initial arrests in September 2014.
Gibson City Man Sentenced to Eight Years in Federal Prison for Mail Fraud, Tax EvasionRead the Press Release
Peoria, Ill. – A Gibson City, Ill., man, Carl Kieser, has been sentenced to eight years in prison for mail fraud, tax evasion, and illegal application of a pesticide inconsistent with its labeling. Yesterday, Chief U.S. District Judge James E. Shadid ordered that Kieser, 63, serve 97 months (8 years, 1 month) in federal prison, and three years of supervised release following his release from prison. Kieser was ordered to report on May 5, 2015, to the federal Bureau of Prisons to begin serving his sentence. Kieser was also ordered to pay restitution in the total amount of $75,862; $71,411 to the IRS and $4,451 to victims he defrauded.
On Oct. 31, 2014, a jury convicted Kieser of three counts of mail fraud and illegal application of a pesticide inconsistent with its labeling. On July 8, 2014, Kieser had entered open pleas of guilty to four counts of tax evasion.
Kieser owned and operated Aquatic Control of Illinois, at his Gibson City Fishing and Camping Club, south of Gibson City on Route 47. At trial, the government presented evidence that Kieser manufactured, advertised, sold, and distributed a product he called Pond Clear Plus. Kieser produced Pond Clear Plus by mixing Diuron 80DF with other ingredients, including a blue pond dye. Diuron 80DF is a pesticide registered with the U.S. Environmental Protection Agency for the control of land-based weeds; the EPA-approved labeling for the pesticide warns that the chemical should not be applied directly to water due to its toxicity to fish and other aquatic wildlife.
Kieser’s advertisements for Pond Clear Plus in newspapers and magazines falsely and fraudulently represented that Pond Clear Plus could control lake weeds and algae “Mother Nature’s Way,” with “No Chemicals,” using a “biological method with live bacteria that dissolves plant nutrients, black muck, and rotten egg odor.” Kieser also falsely and fraudulently represented to customers that Pond Clear Plus contained no chemicals. In fact, as Kieser knew full well, Pond Clear Plus contained the chemical pesticide Diuron 80DF, which was prohibited by its EPA-approved labeling from being applied directly to water.As a result of his false advertising and representations, Kieser sold and distributed Pond Clear Plus to customers from approximately July 2007 to September 2012. Kieser obtained more than $400,000 in proceeds from customers from the sale of Pond Clear Plus, but failed to pay any federal income tax on his profits from 2008 to 2011.
Kieser provided Pond Clear Plus to his customers via Federal Express or some other means in 2.5 gallon jugs without any labels, including any labels informing customers that Pond Clear Plus contained Diuron 80DF and should not be applied directly to water. To the contrary, Kieser advised customers that Pond Clear Plus contained no chemicals and should be applied by pouring it directly into the customer’s pond or lake. Moreover, Kieser himself on occasion directly applied Pond Clear Plus to lakes or ponds for his customers. As a result, Diuron 80DF was directly applied to ponds and lakes throughout the U.S. in direct contravention of its EPA-approved labeling, and multiple customers experienced fish kills following the application of Pond Clear Plus to their ponds and lakes.
“Mail fraud is a crime that can have wide-ranging impacts, sometimes leading to serious public health threats,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Illinois. “EPA’s mission of protecting public health and the environment is undermined when violators misuse and illegally market potentially harmful chemicals. This sentencing sends a strong message that violators who skirt the law to line their own pockets will pay the price.”
The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller. The charges were investigated by the U.S. Environmental Protection Agency, Criminal Investigation Division, and the Internal Revenue Service Criminal Investigation Division, with the assistance of the Illinois Department of Natural Resources, the Illinois Environmental Protection Agency, and the Illinois Department of Agriculture.Urbana Man to Serve 25 Years in Prison for Child Pornography OffensesRead the Press Release
Urbana, Ill. – An Urbana, Ill., man, Shannon Logan, 35, of the 1400 block of Scovill St., today was ordered to serve 25 years in prison for distribution, receipt and possession of child pornography, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. In addition, Logan was ordered to register as a sex offender for natural life and to remain on supervised release for an additional 30 years following completion of his prison sentence.
U.S. District Judge Colin S. Bruce found that Logan has engaged in a pattern of sexual abuse of a minor. Logan was sentenced to the statutory maximum sentence of 240 months (20 years) in prison for count one of the indictment, distribution of child pornography, and 120 months (10 years) for possession of child pornography. For receipt of child pornography, Logan was also ordered to serve the statutory maximum 240 months in prison, to be served as 180 months concurrent and 60 months (five years) consecutive to the imposed sentence.
Logan pled guilty on Oct. 2, 2014, to trading images, via the internet, of minors engaged in sexually explicit conduct, and retaining the images and videos he traded on computer storage devices. Logan has remained in the custody of law enforcement since he was arrested on May 30, 2014, on state child pornography charges.The charges were investigated by the Urbana Police Department and the U.S. Immigration and Customs Enforcement Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Elly Peirson in cooperation with the office of Champaign County State=s Attorney Julia Rietz.
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. Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Former Bank Vice President to Serve Two Years in Prison for Receiving Kickback, Filing False Tax ReturnsRead the Press Release
Urbana, Ill. – A former vice-president of the State Bank of Herscher, David Rabideau, was sentenced today to 24 months in federal prison for receiving a $75,000 kickback for procuring a real estate loan and for two counts of filing false tax returns. U.S. Senior District Judge Harold A. Baker ordered that Rabideau, 44, of Clifton, Ill., be taken immediately into custody by the U.S. Marshals Service for transport to the Federal Bureau of Prisons. Rabideau was also ordered to remain on supervised release for three years following his release from prison, and to pay restitution to the State Bank of Herscher in the amount of $100,000, and restitution to the IRS in the amount of $36,585 for unpaid income taxes.
Rabideau pled guilty to the offenses on Aug. 11, 2014, and had remained on bond pending sentencing. According to court documents, Rabideau had served as a branch manager, vice president, and secretary of the board of directors for the State Bank of Herscher in Kankakee, Ill. Rabideau also served as one of the bank’s primary loan officers. During court hearings, Rabideau admitted that in 2007, he served as the loan officer for a $500,000 bank loan to a customer to finance the purchase of real estate. Rabideau did not disclose his financial interest in this loan; that he was going to receive a $75,000 kickback from the customer. Following the real estate closing, Rabideau gave the customer a cashier’s check for $75,000 from the State Bank of Herscher, and told him to deposit it into the customer’s bank account. Rabideau also instructed the customer to write a check in the amount of $75,000, as a “finder’s fee” to Rabideau in connection with the real estate transaction. The same day, the customer wrote Rabideau a $75,000 check drawn on the customer’s business account.
Rabideau further admitted that for tax years 2006 and 2007, he failed to report various income he received. As a result of the understated gross income, Rabideau failed to pay at least $36,585 in income tax due to the government. Income Rabideau failed to report on his 2006 tax return included $16,572 he received as a “silent partner” in a real estate transaction, falsely claimed to be for the “sale of cow,” and a “finder’s fee” of $15,000 from a real estate agent, with the false statement "sale of tractor, antiques, etc.” in the check’s memo line. Rabideau admitted he failed to report additional income on his 2007 tax return, including $9,500 in capital gains from selling shares of Hershare Financial Corporation, the holding company for the State Bank of Herscher, in addition to the $75,000 kickback.
The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General and the Internal Revenue Service, Criminal Investigation Division, investigated the case. Assistant U.S. Attorney Eugene L. Miller prosecuted the case.
# # # #Kankakee Man Pleads Guilty to Marijuana Growing Operation, Filing False Tax Returns and Making False Statement to BankRead the Press Release
Urbana, Ill. – A Kankakee, Ill., man, David Aaron Neblock, 37, entered pleas of guilty today to possession with intent to distribute more than 100 marijuana plants; filing false income tax returns; and making a false statement to a bank, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. At today’s hearing, U.S. Magistrate Judge David G. Bernthal granted the government’s motion for Neblock’s detention and the defendant was taken into the custody of the U.S. Marshals Service. Sentencing is scheduled for June 1, 2015, before U.S. District Judge Sue E. Myerscough in Springfield.
According to the factual basis set forth in the plea agreement, in July 2012, agents of the Kankakee Area Metropolitan Group (KAMEG) executed a search warrant at a commercial building at 364 S. Schuyler Ave., Bradley, Ill. Inside the building, agents recovered 759 marijuana plants in three rooms. The plants, at various stages of growth, were grown under multiple artificial light ballasts, with electric timers that regulated fans, lights and irrigation systems that supplied water and growth enhancement nutrients to the plants. Agents would testify that the approximate value of the 759 hydroponic cannabis plants is $3,036,000.
In addition, Neblock admitted that he underreported his income for tax years 2010, 2011, and 2012, for an estimated total of $236,936, with tax due and owing of $52,128. Further, Neblock admitted that in March 2009, he submitted a false home loan application requesting $157,183 to purchase a residence at 3163 River Road, Kankakee. In the application, Neblock falsely claimed that he was employed at various businesses and had received an inheritance.
According to terms of the plea agreement, the government and the defendant agree that the appropriate sentence is a term of imprisonment between 60 and 71 months. Further, Neblock agrees to pay the $52,128 in additional tax due and owing to the Internal Revenue Service, and agrees to the forfeiture of property, 3163 River Road, Kankakee, Ill, currently subject to a complaint for forfeiture in proceedings in circuit court in Kankakee County, as property that was used to facilitate or was paid for by proceeds of illegal activity.
The case is being prosecuted by Supervisory Assistant U.S. Attorney Ronda H. Coleman. The charges are the result of investigation by Kankakee Area Metropolitan Group, “KAMEG”; Illinois State Police; Internal Revenue Service Criminal Investigation; and the Federal Deposit Insurance Corporation, Office of Inspector General, with assistance from the Kankakee State’s Attorney’s Office.