Central District of Illinois
Press releases recorded for this federal judicial district.
Former Lincoln Bank Employee Sentenced to Nearly Four Years in Prison for Embezzling from BankRead the Press Release
Springfield, Ill. – The former head teller at a Lincoln, Ill., bank, Nancy J. Huskins, 63, was sentenced today for embezzling approximately $2 million from the bank over a 17-year period. U.S. District Judge Sue Myerscough sentenced Huskins to 45 months (3 years, 9 months) in federal prison and ordered that she pay restitution to the bank in the amount of $2,042,782. Huskins was also ordered to pay a fine of $10,000 and to remain under supervised release for a period of five years upon her release from prison. Huskins, who remains on bond, was ordered to self-report to the federal Bureau of Prisons on a date to be determined by BOP. Judge Myerscough also ordered that funds held in various bank accounts, including a retirement account, and personal checking and savings accounts, be immediately applied as a lump sum to the payment of restitution.
In July 2014, Huskins pled guilty to an information charging her with one count of bank embezzlement. Huskins admitted that during her employment as the head teller at the State Bank of Lincoln, from about January 1996 to November 2013, she embezzled the funds for her personal use. Huskins admitted that in her position as head teller, she had access to the bank’s vault and was entrusted with significant access to portions of the vault that maintained large amounts of cash. Huskins admitted that she disguised the embezzlement by personally participating in audits of cash amounts and engaging in other fraudulent acts designed to further conceal her embezzlement.
The investigation was conducted by agents of the Federal Bureau of Investigation with the full cooperation of the State Bank of Lincoln. The case was prosecuted by Assistant U.S. Attorney John E. Childress.Former Countryside Police Chief, Kankakee County Sheriff’s Deputy Pleads Guilty to Mail Fraud,money Laundering, Tax EvasionRead the Press Release
Urbana, Ill. -- Sentencing has been set for May 29, 2015, before Chief U.S. District Judge James E. Shadid, in Peoria, for Timothy J. Swanson, the former Chief of Police of Countryside, Ill., who later served as a deputy with the Kankakee County Sheriff’s Office. Today, Swanson, 56, of Bourbonnais, Ill., entered open pleas of guilty to two counts of mail fraud, one count of money laundering, two counts of tax evasion, and two counts of filing a false tax return, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. Swanson remains on bond pending sentencing.
During the change of plea proceeding today, before U.S. Magistrate Judge David G. Bernthal, the government provided the following factual basis to the Court in support of the defendant’s open plea of guilty to all seven charged counts in the indictment:- In 2005 and 2006, Swanson was employed as the City of Countryside, Illinois, Chief of Police. In 2009, the defendant left this position and 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 certain law enforcement activities. To obtain funds to operate the helicopters, Swanson established the Illinois Regional Air Support Service (IRASS). IRASS was a tax-exempt organization and 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 in excess of $259,000, and used money donated or awarded to IRASS to make payments on the credit card. Swanson also used this money to purchase a business, Rotors & Wings, LLC., that Swanson operated.
- The United States seeks $189,128 by way of a personal judgment against Swanson representing the amount of property involved in or traceable to the property involved with the offenses involving the IRASS.
- Based on Swanson’s tax returns for 2007, 2008, 2009 and 2010, Swanson should have paid additional income tax of $27,371 for 2007; $9,437 for 2008; $16,886 for 2009, and $1,446 for 2010.
Swanson faces up to 20 years in prison for each count of mail fraud (two counts) and money laundering (one count); up to five years in prison for each count of income tax evasion (two counts); and up to three years in prison for each count of filing a false income tax return (two counts).
The charges are the result of 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. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Springfield Woman Pleads Guilty to All Charges related to Embezzlement from Former EmployerRead the Press Release
Springfield, Ill. – A Springfield, Ill., woman, Alice M. Foss, 53, entered pleas of guilty today to all the charges against her related to her embezzlement of more than $400,000 from her former employer, a Springfield consulting and lobbying firm. Foss’s pleas followed three days of evidence presented by the government in Foss’s jury trial which began last week.
In a hearing this morning before U.S. District Judge Sue E. Myerscough, Foss admitted that she embezzled money from Don Moss and Associates, a consulting and lobbying firm that specializes in services for disabled persons and other social causes. During the time of the fraud, from May 1997 to October 2009, 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.Foss admitted that she repeatedly wrote herself fraudulent bonus checks from the firm’s bank account, for a total of approximately $144,852. Foss fraudulently and repeatedly wrote herself checks out of the DMA bank account, falsely representing that the checks were reimbursements for business expenses she incurred, when, in fact, she knew the false expenses were simply one of the means she used to conceal her embezzlement from DMA.
As part of the fraud scheme, Foss admitted that she repeatedly used DMA’s bank account and credit card account to pay personal expenses, including checks and wire transfers for personal car payments, donations to a private school, and mailing payments to personal credit cards, totaling more than $200,000. Foss 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.
Sentencing is scheduled on May 26, 2015. Under terms of the plea agreement in this case, based on the parties’ agreement that the advisory sentencing guideline range is 46 to 57 months in prison, the government has agreed to recommend a sentence no greater than 57 months in prison. In addition, Foss agreed that the amount of restitution owed is in excess of $400,000. Foss was charged with mail fraud (five counts), wire fraud (seven counts), and access device fraud (one count.) Foss remains on bond pending sentencing.
The charges are the result of investigation by the U.S. Postal Inspection Service and the FBI. The case is being prosecuted by Assistant U.S. Attorney Timothy A. Bass.
Kankakee Man Sentenced to More Than 22 Yearsin Prison for Armed Robbery of Credit UnionRead the Press Release
Springfield, Ill. – Today, U.S. District Judge Sue E. Myerscough sentenced Brandon J. Thomas, 34, of Kankakee, Ill., to prison for the August 2012 armed robbery of the SDC Employees Credit Union in Kankakee. Thomas was ordered to serve a total of 272 months (22 years, eight months) in the federal Bureau of Prisons. Thomas has remained in law enforcement custody since his arrest in August 2012.
Thomas pled guilty on Sept. 2, 2014, to one count each of armed bank robbery, felon in possession of a firearm, and brandishing a firearm during a crime of violence for the August 13, 2012 robbery of the SDC Employees Credit Union. According to court documents, Thomas entered the credit union, located at 296 West Jeffery Street, at approximately 12:17 p.m., pointed a chrome revolver at employees and demanded money. After employees placed money into the bag held by Thomas, he fled on foot. A short time later, law enforcement officers arrested Thomas at a residence approximately two blocks north of the credit union.
Thomas was ordered to serve 15 years and 8 months for the armed bank robbery, plus a consecutive seven-year sentence for brandishing a firearm during a crime of violence.
The Kankakee Area Project Safe Neighborhoods Task Force, which includes the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Kankakee Police Department, conducted the case investigation. The FBI also provided assistance in the investigation. Assistant U.S. Attorney Elly M. Peirson prosecuted the case.\Decatur Man Sentenced to 20 Years in Prison for Sexual Exploitation of A Child,enticement of A Minor and Making Interstate ThreatsRead the Press Release
Springfield, Ill. – A Decatur, Ill., man, Jason E. Cooper, 34, of the 4800 block of Martin Luther King, Jr. Drive, has been ordered to serve 20 years in federal prison for sexual exploitation of a minor, enticement of a minor, and making interstate threats, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge Sue E. Myerscough sentenced Cooper in federal court in Springfield, Ill. on December 18, 2014. Cooper was ordered to serve 15 years of supervised release following his term of imprisonment, and to register as a sexual predator for the period of his natural life. Cooper was also ordered to forfeit computer material seized as evidence.
Cooper pled guilty on May 8, 2014, to one count each of enticement of a minor, making interstate threats, and sexual exploitation of a minor. According to the factual basis presented by the government at Cooper’s change of plea hearing, in 2013, Cooper used social media and game sites to initiate contact with two different minor females. Cooper then sent graphic sexual texts and emails and threats of violence to the minors and their families if his demands for information and photos of graphic sexual activity were ignored.
Cooper was indicted by a grand jury in April 2013, following his arrest. Cooper has remained in the custody of the U.S. Marshals Service since his arrest.
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.
The case was prosecuted by Assistant U.S. Attorney Elly Peirson. The charges were investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Decatur Police Department.
Jury Convicts Chicago Couple on All Counts Chargedin Multi-million Dollar State Grant Fraud SchemeRead the Press Release
Springfield, Ill. – A jury in Springfield, Ill., deliberated approximately five hours today before returning guilty verdicts on all counts charged against Leon Dingle, Jr., and his wife, Karin Dingle, of Chicago. The Dingles were charged with taking $3.35 million from grant funds awarded by the Illinois Department of Public Health for their personal benefit and to pay personal expenses. Sentencing is scheduled on April 9, 2015, before U.S. District Judge Richard Mills.
During the time of the fraud scheme, from 2004 to June 2010, the Dingles owned and operated the for-profit corporation known as Advance Health, Social and Educational Associates, Inc., (AHSEA). Leon Dingle, 77, served as the president, CEO, treasurer, and sole shareholder of AHSEA; Karin Dingle, 75, served as vice-president and secretary. Leon and Karin Dingle were charged with using non-profit organizations as straw grantees to fraudulently solicit and obtain more than $11 million in grant funds from the Illinois Department of Public Health. The majority of the grant funds were non-competitively awarded and paid up-front, for programs relating to breast, cervical and prostate cancer, HIV/AIDS, and emergency preparedness.
“Today, the court specifically noted its appreciation for the excellent work of the law enforcement agents and to all parties involved in the presentation of the case to the jury over eight weeks of trial,” said U.S. Attorney Lewis. “We too, are extremely appreciative of the extraordinary work by the agents of the U.S. Postal Inspection Service, IRS Criminal Investigation, and the Illinois Secretary of State’s Office of Inspector General. 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.Two co-defendants, Jacquelyn Kilpatrick, 59, and Edmond Clemons, 68, previously entered pleas of guilty related to their respective roles in the fraud. Kilpatrick, bookkeeper and vice-president of operations for AHSEA, pled guilty on Oct. 17, 2014, to one count of mail fraud and to an information charging her with filing a false income tax return. Kilpatrick is scheduled for sentencing on Feb. 18. Kilpatrick, with Clemons, also operated another business, known as Jeck Consultants, LLC. On Oct. 2, 2014, Clemons pled guilty to an information charging him with filing a false income tax return. Sentencing for Clemons is scheduled on Feb. 12, 2015.
At sentencing, the maximum statutory penalty for conspiracy to defraud (one count as to each defendant) is up to five years in prison; for each count of mail fraud (Leon Dingle 10 counts; Karin Dingle four counts) and for money laundering (Leon Dingle two counts; Karin Dingle one count) the penalty is up to 20 years in prison.
Brothers Plead Guilty to $6.1 Million Tax FraudRead the Press Release
Peoria, Ill. – Two brothers, who formerly owned and operated a Fast Stop service station in Peoria, Ill., entered pleas of guilty today to conspiracy to defraud, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. Sentencing is scheduled on April 27, 2015, for Shaher M. Mizyed, 50, of Naperville, Ill., and Mohammad M. Mizyed, 46, of the 2800 block of West Playden, Peoria, Ill.
At the time of the offenses, Shaher and Mohammad Mizyed had ownership interest and were involved in the management of Tira Oil LLC, which operated the Fast Stop gas station and convenience store located at 3606 N. Prospect Road in Peoria. Both men were active in the daily operations and record keeping of Tira Oil which did a large amount of cash business.During today’s hearing, before U.S. District Judge Michael M. Mihm, and according to court documents, both men admitted that from 2006 through 2010, they conspired to file false federal corporate income tax returns. Based on information provided by the brothers to their accountant, the false tax returns under-reported the gross receipts of their company in the amount of approximately $6.1 million, which the brothers split between them. As a result of its failure to report the additional gross receipts to the IRS, Tira Oil owes approximately $171,000 in corporate income taxes.
Shaher Mizyed admitted that from January 2006 to about January 2012, false information was provided in the company’s monthly Illinois State Sales and Use Tax Returns. The false returns under-reported approximately $4.3 million in sales and defrauded the state of approximately $347,000 in state tax revenues.
Mohammad Mizyed entered a plea of guilty to conspiracy to commit mail fraud. He admitted that false income information was provided to the state of Illinois to receive approximately $163,000 in state medical benefits. Shaher Mizyed also provided false information about his income to obtain food stamp benefits totaling approximately $36,000. The same year that Shaher purchased a home for $581,000, he falsely claimed a gross monthly income of $800.00 in his application for food stamps
Shaher Mizyed further admitted that when he refinanced his home, he provided the bank with a 2007 tax return that was different from what was filed with the IRS. The return provided to the bank, in support of an application to refinance his home mortgage, showed a gross income of $95,056, when the return filed with the IRS falsely reflected a deficit of nearly $80,000.Mohammad Mizyed also pled guilty to one count of mail fraud for providing false 2007 and 2008 tax returns to the bank in support of his request for a mortgage. The tax returns Mohammad provided to the bank reflected income of $70,956 in 2007 and $79,109 in 2008; however, returns filed with the IRS reflected income of $3,900 in 2007 and $13,000 in 2008. Prior to the bank’s approval of the loan, he bank learned of the false information and denied the loan to Mohammad.
The maximum statutory penalty for conspiracy to defraud the United States and to violate tax laws is up to five years in prison; for mail fraud and for conspiracy to commit mail fraud the penalty is up to 20 years in prison. The offenses carry fines of up to $250,000.
The case is being prosecuted by Supervisory Assistant U.S. Attorney Darilynn J. Knauss and Special Assistant U.S. Attorney Eugene Bian of the Office of the Illinois Attorney General. The charges are the result of investigation by Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation and the Illinois Department of Revenue.
Kankakee County Man to Serve 23 Years in Prison for Repeated Crack Cocaine TraffickingRead the Press Release
Urbana, Ill. -- Edward Dorsey Sr., 42, of St. Anne, Ill., was sentenced yesterday to a term of 276 months (23 years) in federal prison for trafficking crack cocaine, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. Dorsey was also ordered to remain on supervised release for a period of eight years following completion of his prison sentence. U.S. District Judge Colin S. Bruce sentenced Dorsey within the advisory federal sentencing guideline range after finding that Dorsey was a career offender with two prior felony drug trafficking convictions. In fact, at the time he committed these offenses, Dorsey had five prior felony drug convictions and was serving a three-year term of supervised release for a prior federal drug crime.
On August 22, 2014, Dorsey appeared before U.S. Magistrate Judge David G. Bernthal and pleaded guilty to three separate counts of distributing crack cocaine in Kankakee County. During the plea, Dorsey admitted distributing more than 28 grams (approximately one ounce) of crack cocaine on two occasions, Nov. 21 and Dec. 18, 2013, and also distributing crack cocaine on Dec. 10, 2013. At sentencing, the United States presented evidence that, during his drug trafficking activities, Dorsey threatened to shoot any law enforcement officers investigating him. Dorsey has been in the custody of the U.S. Marshals Service since his arrest in this case.
A petition to revoke Dorsey’s federal supervised release remains pending. Dorsey was on federal supervised release because his prior 10-year federal sentence had been reduced to time served (three years and eight months) after the U.S. Supreme Court concluded that he should have been sentenced under the more lenient penalties of the Fair Sentencing Act. If Dorsey’s supervised release is revoked, he could be sentenced to up to three years in prison in addition to his new sentence for the drug trafficking charges.The charges are the result of an investigation by the Kankakee Area Project Safe Neighborhoods Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kankakee Police Department, and the Kankakee County Major Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Bourbonnais Tax Preparer Convicted of Filing False Income Tax ReturnsRead the Press Release
Peoria, Ill. – Sentencing is scheduled on April 10, 2015, for a Bourbonnais, Ill., man convicted yesterday of three counts of filing a false tax return and nine counts of aiding and abetting the preparation of false tax returns. A jury deliberated for approximately five hours on Dec. 10, before returning 12 guilty verdicts against Robert J. DeAngelo, 63.
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, which began on Monday, Dec. 8, 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.
Following the jury’s return of the guilty verdicts, U.S. District Judge Michael M. Mihm allowed DeAngelo to remain on release under conditions of bond pending sentencing. Judge Mihm scheduled sentencing for DeAngelo on all charges for April 10, 2015.The maximum statutory penalty for each count of filing a false tax return and aiding and abetting the preparation of a false tax return is three years in prison, 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.
Mclean County Man to Serve Four Years in Prisonfor Operating Unlicensed Internet Bitcoin ExchangeRead the Press Release
Peoria, Ill. – The first defendant prosecuted in the Central District of Illinois for running an unlicensed internet money service business has been sentenced to four years in federal prison, as announced by U.S. Attorney Jim Lewis. Last week, on Dec. 4, Chief U.S. District Judge James E. Shadid sentenced John D. Powell 55, of Normal, Ill., to 48 months in prison for operating an unlicensed Bitcoin exchange on the internet. Powell was also ordered to serve three years of supervised release following his incarceration.
On July 31, 2014, Powell entered an open plea of guilty to two counts of operating an unlicensed money service business. Bitcoin is a cyber-currency that allows individuals to conduct transactions anonymously. According to court documents and statements during court hearings, Powell’s exchange business allowed individuals increased anonymity by exchanging cash anonymously for bitcoin. Investigators found that Powell received more than $3,000,000 from individuals during an 18-month period ending in February 2014, even though he had not registered, as required by law, as a money service business with either the State of Illinois or the United States.Following the sentencing hearing, Powell was remanded to the custody of the U.S. Marshals Service. On Sept. 30, 2014, Powell was arrested, and had been ordered detained pending sentencing after the government filed a petition to revoke Powell’s pretrial release supervision. Powell had been placed under pretrial release supervision with conditions, including that the defendant not use or unlawfully possess illegal drugs. In support of revocation of Powell’s pretrial release, the petition cited four occasions from July 29 to Sept. 11, 2014, when the defendant submitted to testing for a prohibited substance and tested positive for cannabis.
The case was prosecuted by Assistant U.S. Attorney Bradley W. Murphy. The investigation was conducted by the Internal Revenue Service Criminal Investigation and the U.S. Postal Inspection Service.
# # # #Jury Convicts Tennessee Sex Offender for Enticement of A Minor and Travel with Intent to Engage in Illicit Sexual ConductRead the Press Release
Urbana, Ill. – A jury deliberated for less than one hour yesterday before returning guilty verdicts against Joseph Cain Harrison, 37, of Nashville, Tenn., for enticement of a minor and two counts of travel with the intent to engage in illicit sexual conduct. The jury also found that Harrison was a convicted sex offender at the time he committed the offenses in Champaign County, Ill. Sentencing for Harrison is scheduled on April 6, 2015, before U.S. District Judge Sue E. Myerscough in Urbana.
During Harrison’s trial, which began on Tuesday, Dec. 2, 2014, 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.
Enticement of a minor carries a statutory penalty is no less than 10 years in prison and up to life in prison. For each count of travel with intent to engage in illicit sexual conduct, the penalty is up to 30 years in prison; however, if a defendant has a prior qualifying sex conviction, the maximum penalty for this offense is 60 years in prison. Because the jury found that Harrison was a registered sex offender at the time he committed the offenses, there is an enhanced penalty of 10 years in prison served consecutive to the enticement and travel counts. The offenses include terms of up to life supervised release following any term of imprisonment.
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.
St. Anne Man to Serve More Than 14 Years in Federal Prison for Trafficking Heroin and Possession of A FirearmRead the Press Release
Urbana, Ill. – JB Brown, Jr., aka Cocoa, 37, of the 400 block of Circle Drive, St. Anne, Ill., was sentenced today to a term of 174 months (14 years, 6 months) in federal prison for trafficking heroin and possession of a firearm by a felon, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. Brown was also ordered to remain on supervised release for a period of eight years following completion of his prison sentence. The court increased Brown’s advisory sentencing guideline range after finding that Brown committed perjury in July when he testified during his trial.
On July 29, 2014, a jury convicted Brown for possession of more than 100 grams of heroin, which he intended to distribute, and a loaded Glock .45 caliber semi-automatic pistol, in 2013, when Brown was a convicted felon. Brown has been in the custody of the U.S. Marshals Service since the jury conviction.
Assistant U.S. Attorney Eugene L. Miller prosecuted the case. The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kankakee Area Project Safe Neighborhoods Task Force, and the Kankakee County Major Crimes Task Force.
Central District of Illinois’ U.S. Attorney’s Office collects $30 Million in Criminal & Civil Actions in Fy 2014Read the Press Release
Springfield, Ill. - U.S. Attorney Jim Lewis announced today that the Central District of Illinois collected $30 million for taxpayers in criminal and civil actions in fiscal year 2014. Of this amount, $20,418,986 was collected in criminal actions by the Central District; an additional $13,456 was collected in criminal actions by the District with other Department of Justice entities. In civil actions, the District collected $8,049,414, and another $1,595,242 with other DOJ entities.
Attorney General Eric Holder announced today that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws, in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”“We hold people accountable when the law says that they should be accountable,” said U.S. Attorney Lewis. “We collect restitution for victims of crime, we collect damages if there has been fraud in government programs, we collect debts owed to the government, and we protect federal funds and the public treasury. We do our very best to make sure that justice is done.”
Examples of significant collection efforts during FY 14 include $17 million in criminal fines paid by a subsidiary of the Archer Daniels Midland Company, Alfred C. Toepfer International Ukraine Ltd. In December 2013, ACTI Ukraine entered a plea of guilty in the Central District of Illinois to one count of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act. The company agreed to pay $17 million in criminal fines to resolve charges that it paid bribes through vendors to Ukrainian government officials to obtain value-added tax refunds.
Another example is the $5,364,000 paid by Dowson Farms, Divernon, Ill., in an out-of-court civil settlement in January 2014, to resolve allegations that it conspired to avoid statutory caps on federal farm subsidy payments from 2002 through 2008.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.Additionally, the U.S. Attorney’s office in the Central District of Illinois, working with partner agencies and divisions, collected $942,073 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Christian County Man to Serve 12 Years in Prisonfor Sexual Exploitation of A MinorRead the Press Release
Springfield, Ill. – U.S. District Judge Sue E. Myerscough today sentenced James Marshall Owens, 44, of Owaneco, Ill., to 12 years in federal prison for sexual exploitation of a minor. Owens, a former Taylorville school bus driver, was also ordered to remain on supervised release for 20 years following his term of imprisonment. Owens has remained in law enforcement custody since his arrest in May 2013.
On Feb. 24, 2014, Owens pled guilty to enticing individuals under the age of 18 to engage in sexual activity for which a person could be charged with a criminal offense. The offenses were committed from August 2012 to May 2013 and from December 2012 to February 2013.
The charges were investigated by the Federal Bureau of Investigation, the Illinois State Police, and the Christian County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Gregory K. Harris with the cooperation of the Christian County State’s Attorney’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.
Urbana Man Charged with Sexual Exploitation of A MinorRead 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 Talon G. Wright, 38, of the 900 block of East Harding St, Urbana, Ill., with two counts of sexual exploitation of a minor and one count of possession of child pornography.
The indictment alleges that on or about Dec. 24, 2011 and again on Jan. 15, 2012, Wright 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 on Aug. 1, 2014, Wright possessed computer devices containing child pornography.
If convicted, the statutory penalty for each count of 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 in prison plus a fine up to $250,000. Wright may also be sentenced to a term of supervised release up to life following any prison sentence.
Wright was arrested on Oct. 27, 2014 and charged in a criminal complaint. Wright appeared before U.S. Magistrate Judge David G. Bernthal, on Oct. 27, 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 Urbana Police Department and U.S. Immigration and Customs Enforcement Homeland Security Investigation, in cooperation with the office of Champaign County State’s Attorney Julia Reitz, and the Illinois Department of Children and Family Services.
Wright is scheduled to appear for arraignment before U.S. Magistrate Judge Bernthal on Nov. 12, at 3:00 p.m., in Urbana.
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.
# # # #Gibson City Man Convicted of Mail Fraud and Tax EvasionRead the Press Release
Peoria, Ill. – Sentencing is scheduled on Feb. 19, 2015, for a Gibson City, Ill., man convicted last week of mail fraud and illegal application of a pesticide inconsistent with its labeling. A jury deliberated for approximately one hour on Oct. 31, before returning guilty verdicts against Carl Kieser, 61. Kieser had previously been convicted of four counts of tax evasion.
Kieser owned and operated Aquatic Control of Illinois, a business located at his Gibson City Fishing and Camping Club, south of Gibson City on Route 47. During the trial, which began on Oct. 27, the government presented evidence to establish that from June 2006 to September 2012, Kieser purchased large quantities of Diuron 80DF, a pesticide registered with the U.S. Environmental Protection Agency for the control of land-based weeds. The EPA-approved labeling for Diuron 80DF warns that the chemical should not be applied directly to water due to its toxicity to fish and other aquatic wildlife.
As part of the scheme to defraud, 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. Kieser advertised Pond Clear Plus in newspapers and magazines and represented that he had 20 years of experience in lake management and consulting. The advertisements for Pond Clear Plus 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.
As a further part of the scheme, 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 United States in direct contravention of its EPA-approved labeling. Additionally, multiple customers experienced fish kills following the application of Pond Clear Plus to their ponds and lakes.“The guilty verdict is the result of strong coordination between EPA and our law enforcement partners,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Illinois. “Mail fraud is a serious crime that can lead to serious public health threats. This case demonstrates that individuals who profit from the misuse and illegal sale of potentially harmful chemicals will be prosecuted.”
Following the jury’s return of the guilty verdicts, Chief U.S. District Judge James E. Shadid allowed Kieser to remain on release under conditions of bond, including that he no longer sell his product, Pond Clear Plus. Judge Shadid scheduled sentencing for Kieser on all charges for February 19, 2015.
The maximum statutory penalty for each count of mail fraud is 20 years in prison and a fine of up to $250,000. The maximum statutory penalty for tax evasion is five years in prison and a fine of up to $100,000. The maximum statutory penalty for applying a pesticide inconsistent with its labeling is one year in jail and a fine of up to $50,000.
The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller. The charges are the result of an investigation by the U.S. Environmental Protection Agency, Criminal Investigation Division, and the Internal Revenue Service, with the assistance of the Illinois Department of Natural Resources, the Illinois Environmental Protection Agency, and the Illinois Department of Agriculture.
Election Officers Designated in Central District of IllinoisRead the Press Release
Springfield, Ill. – U.S. Attorney Jim Lewis announced today the appointment of District Election Officers in the Central District of Illinois in connection with the Justice Department’s nationwide Election Day Program for the Nov. 4, 2014, general elections. Assistant U.S. Attorneys appointed to serve as election officers include: Gregory M. Gilmore in the Springfield headquarters office; David H. Hoff in the Urbana branch office; Darilynn J. Knauss in Peoria; and, John K. Mehochko in Rock Island. District election officers are responsible for overseeing the district’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department headquarters.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
To respond to complaints of election fraud or voting rights abuses on Nov. 4, 2014, and to ensure such complaints are directed to the appropriate authorities, designated election officers will be available in each of the district’s four offices on Nov. 4, while the polls are open. Election officers may be reached by the public at the following telephone numbers:
Springfield: Assistant U.S. Attorney Gregory M. Gilmore, 217-492-4450;
Urbana: Assistant U.S. Attorney David H. Hoff, 217-373-5875;
Peoria: Assistant U.S. Attorney Darilynn J. Knauss, 309-671-7050; and,
Rock Island: Assistant U.S. Attorney John K. Mehochko, 309-793-5884.In addition, the FBI will have Special Agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI office in the Central District of Illinois can be reached by the public at 217-522-9675.
Civil Rights Division staff will be available by phone to receive complaints related to voting rights at 1-800-253-3931 toll-free, or 202-307-2767, or by TTY 202-305-0082. In addition, individuals may also report complaints, problems, or concerns related to voting by fax to 202-307-3961, by email to [email protected], and by complaint forms that may be submitted through a link on the Department’s website, at www.justice.gov/crt/about/vot/.
Springfield Man Sentenced for Bankruptcy FraudRead the Press Release
Springfield, Ill. – A Springfield, Ill., man, Michael A. Carr, 51, of St. James Court, has been ordered to serve 10 months in federal prison for concealing assets and making false statements related to bankruptcy proceedings, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. At sentencing, on Oct. 27, 2014, U.S. District Judge Sue E. Myerscough further ordered that Carr pay $7,750 in restitution and remain on supervised release for three years following completion of his prison sentence. Carr was ordered to self-report to the federal Bureau of Prisons as directed by the U.S. Marshals Service.
On Sept. 23, 2013, Carr pled guilty to filing a bankruptcy petition that concealed property and included false statements to discharge his debts under Chapter 7 of the U.S. Bankruptcy Code. Carr admitted that when he filed the petition, in June 2010, he concealed ownership of a motorcycle, sport utility vehicle, four all-terrain vehicles, and a pending insurance claim arising from the theft of a 1995 Harley-Davidson Softail motorcycle.
The charges resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the Central District of Illinois Bankruptcy Fraud Working Group. The charges were investigated by the FBI and the U.S. Postal Inspection Service. Assistant U.S. Attorney Gregory K. Harris prosecuted the case.
“Abuse of the bankruptcy system by concealing assets for personal gain threatens the integrity of the bankruptcy system and undermines public confidence in that system,” stated Nancy J. Gargula, U.S. Trustee for Central Illinois, Southern Illinois and Indiana (Region 10). “I am grateful to U.S. Attorney Lewis and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases.”
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
# # # #Bloomington Woman Admits to Having Pipe Bomb Placed in MailboxRead the Press Release
Urbana, Ill. – Sentencing has been set for Jan. 9, 2015, for Linda Sue Curtis, 57, of Bloomington, Illinois. Yesterday, Curtis pled guilty to conspiracy to possess a destructive device, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. Curtis remains on bond following her appearance yesterday before United States District Judge Harold A. Baker.
According to court documents, Curtis conspired with another individual, Lloyd Lockwood, to possess the pipe bomb, and the pipe bomb was placed into a mailbox belonging to the victims in Decatur, Illinois. Lockwood was found guilty by a jury in August of 2013, and was subsequently sentenced to 10 years in federal prison.For conspiracy to possess an unregistered destructive device, the statutory maximum penalty is up to 5 years in prison, and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Jason M. Bohm. The charges are the result of an investigation by the FBI, ATF, Decatur Police Department, Macon County Sheriff’s Office, Bloomington Police Department, TSA, and University of Illinois/Champaign Police Department Bomb Squad.
DAVENPORT MAN FACES FRAUD, MONEY LAUNDERING CHARGES Allegedly Defrauded Former Employer of $2.7 MillionRead the Press Release
Rock Island, Ill. – Jim Lewis, U.S. Attorney for the Central District of Illinois, announced that Dominic Scodeller, 47, of the 2000 block of Meadowbrook Drive, Davenport, Iowa, made his initial appearance in federal court today on charges of fraud and money laundering. The grand jury returned the indictment on Oct. 21, 2014; however, the indictment had remained sealed pending the defendant’s arrest and court appearance.
The 15-count indictment alleges that from about 2001 to May 2013, Scodeller defrauded his former employer, Bituminous Insurance Companies (BITCO), which has its headquarters in Rock Island, of at least $2.7 million. As a manager of purchasing and facilities for BITCO, Scodeller allegedly approved payments to bogus entities he created and controlled. After BITCO paid the fraudulent entities, Scodeller allegedly transferred the stolen money from the entities’ accounts for his personal use.
If convicted, the statutory maximum penalty for each count of mail or wire fraud is 20 years in prison, and a fine of up to $250,000; the statutory maximum penalty for each count of money laundering is 20 years in prison, and a fine of up to $500,000, or twice the value of property involved in the transactions, whichever is greater.
Scodeller was arrested today and appeared this afternoon before U.S. District Judge Sara L. Darrow, in Rock Island. Scodeller was ordered temporarily detained in the custody of the U.S. Marshals Service pending a detention hearing scheduled on Oct. 29, at 11:00 a.m.
The case is being prosecuted by Assistant U.S. Attorneys Donald Allegro and Meredith DeCarlo. The matter was referred to federal law enforcement, the FBI and IRS, Criminal Investigation, by BITCO following its internal investigation of the alleged fraud.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
# # # #Kankakee Man Sentenced to 10 Years in Prison for Plotting Murder-for-hire of Ex-wifeRead the Press Release
Urbana, Ill. – A Kankakee, Ill., man, Joshua N. Bisping, 33, has been ordered to serve 10 years in federal prison for his engagement in a murder-for-hire plot against his ex-wife, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge Harold Baker today sentenced Bisping to the statutory maximum sentence and ordered that Bisping remain on supervised release for three years following his release from prison. Bisping was also ordered to have no direct contact with the victim.
On May 29, 2014, Bisping pled guilty to use of interstate commerce facilities in commission of a murder-for-hire plot. One year earlier, in late May 2013, Bisping attempted to hire an individual to kill his ex-wife. The individual introduced Bisping to an undercover ATF agent posing as a hit man. Following the meeting, Bisping met in person with the undercover agent on at least three occasions which were video and audio recorded. During the meetings, Bisping discussed paying the undercover agent $5,000 to murder his ex-wife and to make it look like a robbery gone bad. Bisping and the agent discussed Bisping’s obtaining a picture of his ex-wife for the agent, establishing an alibi for the time of the murder, and, if questioned by police, Bisping’s denial of any knowledge of the murder-for-hire plot. After one meeting, Bisping and the agent drove by the ex-wife’s residence so the agent would know where she lived.
Bisping was arrested in early June 2013, and has remained in the custody of the U.S. Marshals Service since his arrest.
The case was investigated by the Kankakee Area Project Safe Neighborhoods Task Force; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Kankakee Police Department; and the Kankakee County State’s Attorney’s Office. Assistant U.S. Attorney Eugene L. Miller prosecuted the case.
Rock Island Man Sentenced to Life in Prison for Two Armed Bank RobberiesRead the Press Release
Rock Island, Ill. –Deangelo Dixon, 28, of Rock Island, Ill., was sentenced to life in prison without the possibility of parole for committing two armed bank robberies, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. A jury convicted Dixon in March 2014, for the violent armed robberies of Union Federal Savings & Loan in Viola, Ill., and the 1st Community Bank in Sherrard, Ill. Today, U.S. District Judge Sara L. Darrow found, based on Dixon’s two prior robbery convictions in Illinois courts, that Dixon was a recidivist violent offender as defined in the federal 3-Strikes law, and accordingly, a term of life imprisonment was mandated.
At pre-trial hearings and at trial, the government presented evidence that when Dixon entered Union Federal Savings & Loan in Viola, on Nov. 8, 2012, he had been on parole for fewer than two weeks from the Illinois Department of Corrections for aggravated robbery. When Dixon entered the bank, he was dressed in black and his head was covered with a mask. He grabbed a teller by the collar, put a round hard object against her neck, demanded money, and threatened to shoot the teller. Dixon made continuous threats to force tellers to open the bank vault and took $30,994 before fleeing.
The government presented further evidence that on Dec. 10, 2012, Dixon entered the 1st Community Bank in Sherrard, again dressed in black and wearing a mask. He pointed a firearm-like object, which was later determined to be a butane lighter, at tellers, announcing that he wanted money or he would shoot. While yelling continuous threats, Dixon grabbed a teller and forced her to remove $5,710 from teller drawers. As Dixon fled the bank and approached his getaway car, he encountered another teller who had run from the bank as the robbery was underway. Dixon grabbed the teller, tried to force her into his car, and when he was unsuccessful, punched her in the face.
Evidence further established that a Rock Island police officer, who had investigated Dixon in connection with his prior robbery offenses, recognized Dixon’s signature robbery technique and his car after seeing a bulletin circulated by the FBI and police to area law enforcement agencies. FBI agents, police officers, and parole officers of the Illinois Department of Corrections subsequently recovered physical evidence, including clothing and the car, linking Dixon to both robberies. Evidence was also presented that Dixon, unemployed and recently released from prison, spent large sums of money after the robberies.
Assistant U.S. Attorneys Don Allegro and Kirk Schuler prosecuted the case. The charges were investigated by the Federal Bureau of Investigation, the Mercer County Sheriff’s Office, the Viola Police Department, the Rock Island Police Department, and the Illinois Department of Corrections.
# # # #Mason City Mother and Son Charged with Conspiracy to Make and Distribute MethamphetamineRead the Press Release
Peoria, Ill. – A Mason City, Ill., woman, Denise A. Taylor, 42, of the 400 block of S. Keefer Street, appeared in federal court today in Peoria, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. Taylor was arrested yesterday on the indictment returned by the grand jury last week but sealed pending her arrest and court appearance. The indictment charges Taylor and her son, Brendin L. Williams, 23, with one count of conspiracy to manufacture and distribute more than 500 grams of methamphetamine from 2010 to the present. Williams is currently in the custody of the Illinois Department of Corrections and is expected to make his initial appearance in federal court on Oct. 9, 2014.
U.S. Magistrate Judge Jonathan E. Hawley ordered that Taylor be detained in the custody of the U.S. Marshals service and set the case for detention hearing on Oct. 9, at 1:00 p.m. Trial is scheduled on Dec. 1, 2014, before U.S. District Judge Michael M. Mihm.Taylor’s boyfriend, Teddy Lee, Jr., 25, also of the 400 block of S. Keefer Street, Mason City, is tentatively scheduled for trial on Oct. 14, 2014. The grand jury charged Lee in late July with participating in a conspiracy to manufacture more than 50 grams of meth, possession of a firearm by a felon, and possession of a stolen firearm. Lee was ordered to remain in the custody of the U.S. Marshals Service pending trial.
“Law enforcement is on the front line, protecting the community from people who make and distribute methamphetamine,” said U.S. Attorney Lewis. “We appreciate this opportunity to work with law enforcement and protect this community.”
“This is yet another example of superb cooperation by the Mason County Sheriff’s Office with the investigators of ‘Operation Copperhead’ and the U.S. Attorney’s Office,” said Mason County Sheriff Paul Gann. “These defendants now face federal charges related to the manufacture of methamphetamine, but we’re not done yet.”
The cases are being prosecuted by Assistant U.S. Attorney K. Tate Chambers in coordination with the Mason County State’s Attorney’s Office. The charges are the result of an ongoing investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Mason County Sheriff’s Office; the Tazewell County Sheriff’s Office; and, the Pekin Police Department.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.If convicted, the statutory maximum penalty for conspiracy to manufacture methamphetamine, if the defendant has no prior felony drug convictions, is 10 years to life in prison and fines of up to $4,000,000. With one prior felony drug conviction, the penalty increases to 20 years to life in prison and fines of up to $8,000,000; with two or more prior felony drug convictions, the penalty is life in prison. The maximum penalty for the offenses of felon in possession of a firearm and possession of a stolen firearm is 10 years in prison and a fine of $250,000.
Joliet Man to Serve More Than Six Years in Prison for Possession of A Firearm by A FelonRead the Press Release
Urbana, Ill. – A Joliet, Ill., man, Troy J. Kelly, 32, of the 900 block of Leawood Drive, was sentenced today to serve 77 months (6 years, 5 months) in federal prison for possessing a firearm as a felon. U.S. District Judge Colin Bruce also ordered that Kelly remain on supervised release for a period of three years following completion of his prison sentence.
A grand jury indicted Kelly in February 2014, and he has remained in the custody of the U.S. Marshals Service since his arrest in March 2014. On June 3, Kelly entered a plea of guilty to being a felon in possession of a .45 caliber semi-automatic pistol on Oct. 3, 2013, in Kankakee County.
The charge 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. Assistant U.S. Attorney Eugene L. Miller prosecuted the case.
Former Office Manager for Chatham Fire Protection District Pleads Guilty to Theft of FundsRead the Press Release
Springfield, Ill. – A former office manager for the Chatham Fire Protection District, Dawn D. Sanchez, 45, of Auburn, Ill., pled guilty today to using her position to take more than $50,000 from the district for her personal use. Sanchez waived indictment and entered a plea of guilty to one count of mail fraud before U.S. Magistrate Judge Thomas P. Schanzle-Haskins.
As office manager, Sanchez had check-signing authority and control over the fire protection district’s bank account and credit and debit cards, and was responsible for paying the district’s business expenses. During her court appearance, and according to court documents, Sanchez admitted that from Jan. 1, 2009, to July 31, 2012, she fraudulently and repeatedly wrote CFPD checks to herself for payment of personal expenses of approximately $32,000 and used the CFPD credit and debit cards to purchase more than $15,000 in money orders that were cashed and deposited into her personal bank account. Sanchez admitted that the funds, estimated at $52,520, were used to pay various personal expenses including insurance, credit card payments, and repayment on a loan.
The investigation was conducted by agents of the U.S. Postal Inspection Service and the Chatham Police Department with the full cooperation of the Chatham Fire Protection District. The case is being prosecuted by Assistant U.S. Attorney Timothy A. Bass.
Sanchez is currently on bond awaiting sentencing, which is scheduled on Jan. 26, 2015, before U.S. District Judge Sue E. Myerscough.
At sentencing, Sanchez faces a maximum possible penalty of up to 20 years in prison, a fine of up to $1,000,000, and a term of supervised release of up to five years to follow any term of imprisonment. The defendant may also be ordered to pay restitution.
Former Acting Pembroke Township Supervisor Pleads Guilty to Defrauding Township AccountsRead the Press Release
Urbana, Ill. – A former acting Pembroke Township Supervisor, Leon Eddie Mondy, pled guilty today to defrauding township accounts of more than $60,000 from August 2012 to May 2013. Mondy entered his open plea of guilty to one count of wire fraud in an appearance this afternoon before U.S. Magistrate Judge David G. Bernthal. Sentencing has been scheduled for Jan. 23, 2015, in Peoria, before Chief U.S. District Judge James E. Shadid.
Mondy, 35, of St. Anne, Ill., admitted that during the time he was serving as the acting Pembroke Township Supervisor, he withdrew more than $60,000 in cash from various township accounts and spent the money on gambling. Overall, according to court documents, Mondy lost $67,418 from gambling during the same time that he made $66,434 in unauthorized cash withdrawals from Pembroke township accounts.
As township supervisor, Mondy was a signatory and had access to the township’s various bank accounts. Mondy admitted he repeatedly transferred funds between township accounts and withdrew cash from the various accounts under the false pretense that the funds would be used for the benefit of the township. The accounts included Insurance, the Illinois Municipal Retirement Fund, Water, Community Center, Employee Deductions, Senior Nutrition, and Social Security. The cash withdrawals varied from as little as $300 to as much as $3,542.
The charge is the result of an investigation by the Federal Bureau of Investigation and the Illinois Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
The offense of wire fraud carries a maximum statutory penalty of 20 years in prison and fines of up to $250,000.
Life in Prison for Normal Ill. Man for Crack Cocaine and Marijuana Distribution ConspiracyRead the Press Release
Peoria, Ill. – U.S. District Judge Michael M. Mihm today sentenced Richard George Martin, 35, of Normal, Ill., to serve the remainder of his life in prison with no possibility for parole to be served concurrently with his sentence in a McLean county drug case. Martin was also ordered to forfeit more than $120,000 in seized assets. Following today’s court hearing, Martin was remanded to the Illinois Department of Corrections.
A jury convicted Martin in December 2013, for conspiracy to distribute more than five kilograms of cocaine and more than 50 kilograms of marijuana from 1999 to 2011. According to court documents, Martin has at least three prior felony drug convictions in addition to McLean county case number 10-CF-981.This case was prosecuted as a result of "Operation Prairie Eagle," a cooperative investigation targeting distribution of crack cocaine and marijuana in the Bloomington-Normal area. The Organized Crime Drug Enforcement Task Force (OCDETF) investigation was led by the Normal Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Greggory R. Walters is prosecuting the defendants charged as a result of the “Prairie Eagle” investigation. Since 2011, “Operation Prairie Eagle” has resulted in the conviction of 22 defendants for conspiracy to distribute and the distribution of controlled substances in the Bloomington-Normal area.
Former Illinois Department of Public Health Administrator Pleads Guilty to Bribery, Kickback Scheme and Filing False Income Tax ReturnRead the Press Release
Springfield, Ill. – A former human resources director for the Illinois Department of Public Health, Roxanne Jackson, waived indictment and pled guilty today to an information that charges her with participating in a bribery and kickback scheme related to state grants and contracts and filing false income tax returns. The information was filed by the U.S. Attorney’s Office for the Central District of Illinois.
Jackson, 49, of Olympia Fields, Ill., appeared this afternoon before U.S. Magistrate Judge Thomas P. Schanzle-Haskins in Springfield to enter her plea. Sentencing for Jackson has been scheduled for Jan. 26, 2015, before U.S. District Judge Sue E. Myerscough.
According to court documents, Jackson was an associate of IDPH Chief of Staff Quinshanta Golden when Jackson and Golden devised a scheme to defraud the state related to grant funds and contract monies. Golden previously pled guilty on Apr. 10, 2014, to her role in the bribery and kickback scheme and obstruction of justice. Golden is scheduled to be sentenced on Oct. 31, 2014.
During today’s court hearing, Jackson admitted that from 2006 to 2010, she received more than $1,000,000 in grant funds originally awarded and disbursed to three Chicago not-for-profit organizations and in contract funds to a business identified as Security Firm A. As part of the scheme, at Golden’s direction, Jackson was hired as a paid consultant for the three not-for-profit entities and Security Firm A.
From 2004 to 2010, IDPH awarded more than 30 non-competitive grants totaling more than $11 million to three not-for-profit organizations: Broadcast Ministers Alliance, Access Wellness and Racial Equity, and the Medical Health Association. The grants were for programs relating to breast, cervical and prostate cancer, HIV/AIDS, and emergency preparedness. From 2006 through 2010, Security Firm A was paid more than $2 million in contract funds to conduct background checks and interviews of Illinois nursing home residents related to the Identified Offender Program.
Jackson admitted that as a condition to receive grant funds, she was required to pay Golden one-half of whatever she received, less any funds to be withheld for payment of taxes, which were never paid. Jackson admitted that from about July 2007 to April 2008, she made cash withdrawals of grant funds from her bank accounts and made cash payments to Golden ranging from $5,000 to as much as $70,000.
In agreement with Golden, Jackson further admitted that she was required to pay Golden kickbacks for each background investigation performed by Security Firm A. The payments ranged from $35 to $40 per investigation performed. From 2006 to 2009, Jackson received approximately $485,000 in funds from Security Firm A’s contracts with IDPH, and during 2007 and 2008, made kickback payments to Golden of approximately $109,500 in contract funds.
As a result of the scheme, from about July 2007 and continuing to approximately October 2008, Jackson admitted she repeatedly made kickback payments to Golden of grant and contract funds for a total of approximately $433,000.
As to Jackson’s filing false income tax returns for tax years 2006, 2007, 2008, and 2009, Jackson admitted she caused the filing of false and fraudulent federal income tax returns by failing to report a total of $908,266 in income, resulting in failure to pay $172,825 in taxes due.
At sentencing, according to the terms of the plea agreement, the government has agreed to recommend to the court a sentence at the low end of the applicable advisory sentencing guidelines, no more than 51 months in prison. According to the plea agreement, the parties agree that restitution amount for filing false income tax returns is $172,825. A restitution amount for the bribery offense has not been determined.
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: the U.S. Postal Inspection Service, Chicago Division; Internal Revenue Service, Criminal Investigation, Chicago Field Office; and the Illinois Secretary of State Office of Inspector General. 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.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.
Indictment Charges Kankakee Manwith Possessing 100 or More Marijuana Plants, Filing False Tax Returnsand Making False Bank StatementRead the Press Release
Urbana, Ill. – A Kankakee, Ill., man, David Aaron Neblock, 37, made his initial court appearance this afternoon following his arrest on Thursday, Sept. 11, 2014, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. A federal grand jury returned the five-count indictment on Sept. 10, that charges Neblock with possession of 100 or more marijuana plants with intent to distribute, filing false income tax returns for the 2010, 2011 and 2012 tax years, and making false statements to a financial institution. The indictment had remained sealed pending Neblock’s arrest and initial court appearance.
During today’s hearing, U.S. Magistrate Judge David G. Bernthal allowed Neblock’s release on electronic monitoring under the condition that Neblock remain detained until a telephone ‘land line’ has been established at Neblock’s residence. Trial in the case is scheduled on Nov. 18, before U.S. District Judge Sue E. Myerscough in Springfield.
The indictment alleges that on July 22, 2012, in Kankakee, Neblock possessed 100 or more marijuana plants with the intent to distribute. The indictment further alleges that Neblock falsely understated his adjusted gross income for tax years 2010, 2011, and 2012, by omitting other income he had earned, including income from the sale of narcotics. Neblock allegedly owes approximately $52,128 in federal taxes. Neblock is also charged with providing material false statements to a bank in 2009 to obtain a loan to purchase property.
If convicted, the mandatory minimum penalty for possession of 100 or more marijuana plants with the intent to distribute is five years in prison and up to 40 years. The maximum penalty for filing a false income tax return is up to 3 years in prison; the penalty for making false statements to a financial institution is up to 30 years in prison.
The case is being prosecuted by Supervisory Assistant U.S. Attorney Ronda H. Coleman. The charges are the result of investigation by the Kankakee Area Metropolitan Group; the Federal Deposit Insurance Corporation Office of Inspector General; and the Internal Revenue Service Criminal Investigation.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Five Men Arrested, Indictedon Federal Gun Charges in KankakeeRead the Press Release
Urbana, Ill. -- Five men who were arrested yesterday on gun charges made their initial court appearances this afternoon before U.S. Magistrate Judge David G. Bernthal, 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.
The defendants, charged in separate cases, are:
Rico J. Speed, 27, of the 1200 block of 4th Street, Kankakee, four counts of felon in possession of a firearm and one count of distribution of 28 grams or more of crack cocaine;
Antwon T. Crite, 38, of Hopkins Park, eight counts of felon in possession of a firearm;
Roosevelt D. Smith, 22, of the 1300 block of 7th Ave., Kankakee, four counts felon in possession of a firearm (four counts) and one count of possession and sale of stolen ammunition;
Charles V. Williams, 39, of the 1200 block of E. Locust St., Kankakee, one count felon in possession of a firearm; and,
Carlton Lashawn Smith, 34, of the 400 block of S. Rosewood Ave., Kankakee, one count felon in possession of a firearm.The charges are the result of ongoing investigations related to gun violence in the Kankakee area by the Kankakee Area Project Safe Neighborhoods Task Force, 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 arrests.
The five defendants were ordered to remain detained in the custody of the U.S. Marshals Service pending trial. Pre-trial conferences were set for Oct. 31, with trial dates scheduled on Nov. 12, 2014.
If convicted, each count of felon in possession of a firearm carries a statutory penalty of up to 10 years in prison. One defendant, Smith, is also charged with one count of distribution of 28 grams or more of crack cocaine, that, if convicted, carries a mandatory minimum 10 years to life in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
# # # #Four Illinois Law Enforcement Agencies share $1.5 Million in Forfeited Assets from 2009 Marijuana Distribution ConspiracyRead the Press Release
Rock Island, Ill. – Four law enforcement agencies in the Central District of Illinois’ Rock Island Division are among 33 agencies in New York, California, and Illinois to share $8,923,708 in forfeited assets as a result of a marijuana distribution conspiracy case U.S. v. Canori et al. that began with a traffic stop by Illinois State Police in June 2009.
Four Illinois agencies will share $1,447,590.16: Geneseo Police Department $212,036.82; Henry County State’s Attorney’s Office $241,506.19; Illinois State Police $752,540.96; and, Quad City Metropolitan Enforcement Group $241,506.19.The U.S. Attorney’s Office for the Northern District of New York held a news conference this afternoon to make the announcement. The news release, attached, provides a comprehensive overview of the prosecution of the five individuals in the Northern District of New York, U.S. v. Canori et al., which resulted from a traffic stop by Illinois State Police on westbound Interstate 80 in Henry County, Ill., on June 13, 2009.
According to federal court documents, while the trooper was conducting the traffic stop, an Illinois State Police drug-detecting K-9 made a positive alert on the trailer which was searched, and approximately 334 pounds of marijuana was seized. The drugs were intended to be transported from California to upstate New York for distribution. Through a controlled delivery executed with the Albany DEA office, the delivery was completed, and five individuals were charged and convicted for drug offenses.
As a result of this prosecution, $12,515,738 represented the proceeds of assets seized; $8,923,708.19 was distributed to law enforcement agencies and the remaining $3,592,029.81 was provided to the Department of Justice Asset Forfeiture Program.
The driver of the truck and trailer was charged in the Central District of Illinois. The defendant entered into a pre-trial diversion agreement with the government. U.S. Probation recommended that the charge be dismissed upon successful completion when the diversion period expired in January 2012. On Feb. 3, 2012, U.S. District Judge Joe Billy McDade granted the government’s motion to dismiss the charge.
Kankakee County Man Pleads Guilty to Three Counts of Distribution of Crack CocaineRead the Press Release
Urbana, Ill. Sentencing has been scheduled for Dec. 15, 2014, for a St. Anne, Ill., man, Edward Dorsey Sr., 42, who entered open pleas of guilty on Friday to three counts of distributing crack cocaine in Kankakee County. Dorsey appeared on Aug. 22, before U.S. Magistrate Judge David G. Bernthal. The indictment, returned by a grand jury in May 2014, charged Dorsey with distribution of more than 28 grams (approximately one ounce) of crack cocaine on two occasions, Nov. 21 and Dec. 18, 2013, and with distribution of crack cocaine on Dec. 10, 2013.
A petition to revoke Dorsey’s federal supervised release remains pending. Dorsey was serving a three-year term of supervised release for a prior federal drug crime at the time he admitted to committing the crimes as charged in the indictment.
The petition to revoke Dorsey’s supervised release was filed by the U.S. Probation Office for the Central District of Illinois based on the drug trafficking charges, as well as allegations of aggravated unlawful restraint and battery involving a firearm in violation of state law. According to the petition to revoke supervised release, Dorsey allegedly kidnapped and battered a man at a Citgo Gas Station in Pembroke, Ill., on Jan. 9, 2014. The petition further alleges that Dorsey grabbed the man by the shirt, forced him into a car, pointed a gun at him, and punched and choked him. The petition alleges that Dorsey drove around with the man until Dorsey found a stolen television, at which point, he let the man go.
At sentencing, for the drug offenses, Dorsey faces a mandatory minimum sentence of 10 years to life in prison under the revised penalties contained in the Fair Sentencing Act. If Dorsey’s supervised release is revoked, he could be sentenced to up to three years in prison in addition to his sentence for the drug trafficking charges. Dorsey remains detained in the custody of the U.S. Marshals Service.
The charges are the result of an investigation by the Kankakee Area Project Safe Neighborhoods Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kankakee Police Department, and the Kankakee County Major Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Indictment Charges Brothers, Former Operators of Peoria Service Station, with $6.1 Million Tax FraudRead the Press Release
Mail Fraud, Filing False Tax Returns, Benefits Fraud,
and Bank Fraud Also ChargedPeoria, Ill. – A federal grand jury today charged two brothers who formerly owned and operated a Fast Stop service station in Peoria, Ill., with conspiracy to commit tax fraud and mail fraud, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. Shaher M. Mizyed, 50, of Naperville, Ill., and Mohammad M. Mizyed, 46, of the 2800 block of West Playden, Peoria, Ill., are both charged with conspiracy to commit tax fraud resulting from failure to report to the IRS approximately $6.1 million in gross receipts received and conspiracy to commit mail fraud related to approximately $200,000 in medical and other benefits fraudulently obtained from the state of Illinois.
According to the indictment, at various times during the alleged conspiracy, from 2006 to 2011, one or the other of the brothers was identified as the owner of Tira Oil LLC, which operated the Fast Stop gas station and convenience store located at 3606 N. Prospect Road in Peoria. The indictment alleges that on a daily basis one of the brothers opened the business, and reviewed and recorded the previous day’s sales receipts. To divert corporate receipts to their own use, the indictment alleges that not all the cash generated from the business’s operation was deposited into Tira Oil’s bank account. The two allegedly split the remaining cash for personal use as well as to pay some business expenses. Further, to conceal the scheme, false information was reported to the accountant who prepared the tax returns for Tira Oil. The indictment alleges that Tira Oil owes approximately $171,000 in corporate income taxes resulting from failure to report the additional gross receipts to the IRS
The men are charged with conspiracy to commit mail fraud related to allegations that from 2003 to December 2013, members of the conspiracy concealed income and provided false information to the Illinois Department of Human Services to obtain approximately $200,000 in medical and other benefits. To further the conspiracy, false information and forms were submitted to DHS that reported hours worked and hourly wages for Shaher and Mohammad in amounts ranging from $225.00 per week, $400.00 – 450.00 every two weeks, and gross monthly income of $800.00.
Shaher is charged with four counts of mail fraud related to submission of Illinois Sales and Use Tax Returns to the state of Illinois that allegedly substantially under-reported the amount of gas and other goods sold at Tira Oil. According to the indictment, in April 2010, during an investigation by the Illinois Department of Revenue, revenue agents served Shaher with a formal demand for production of books and records; despite the formal demand, Shaher did not produce all the books and records as required.
In February 2011, Shaher allegedly represented to Illinois Department of Revenue agents that sales records of Tira Oil had been destroyed in a fire at his home, when, in fact, the sales receipts were found at the Fast Stop gas station during execution of a search warrant on Feb. 28, 2012. As a result of Shaher’s alleged failure to report approximately $4.3 million in sales of gas and other goods by Tira Oil, the state of Illinois was defrauded of approximately $347,000 in state tax revenues.
Shaher Mizyed is charged with one count of bank fraud for allegedly providing a false 2007 tax return to the bank in March 2009, in support of an application to refinance his home mortgage in the amount of approximately $328,500. In fact, the indictment alleges the tax return provided to the bank was not the the tax return Shaher had filed with the IRS.
Mohammad Mizyed is also charged with bank fraud for allegedly providing false 2007 and 2008 tax returns to the bank in support of his request for a mortgage of approximately $319,000 to purchase his home in October 2009. The tax returns Mohammad provided to the bank were allegedly not the returns he had filed with the IRS.
In addition to the two conspiracy charges, Shaher is charged with three counts of filing false corporate tax returns; two counts of filing false amended corporate tax returns; four counts of mail fraud; and, one count of bank fraud. Mohammad is also charged with two counts of filing false personal tax returns and one count of bank fraud, in addition to the two conspiracy charges.
If convicted, the maximum statutory penalty for conspiracy to defraud the United States and to violate tax laws is up to five years in prison; for filing false or amended corporate or personal tax returns, the penalty is up to three years in prison; for bank fraud the penalty is up to 30 years in prison; up to five years in prison for conspiracy to commit mail fraud, and for each count of mail fraud, the statutory penalty is up to 20 years in prison.
The case is being prosecuted by Supervisory Assistant U.S. Attorney Darilynn J. Knauss and Special Assistant U.S. Attorney Eugene Bian of the Office of the Illinois Attorney General. The charges are the result of investigation by Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation and the Illinois Department of Revenue.
The defendants 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.
Former Bank Vice President Pleads Guilty to Receiving Kickback, Filing False Tax ReturnsRead the Press Release
Urbana, Ill. – Sentencing has been set for Dec. 11, for a former vice president of the State Bank of Herscher, David Rabideau, 43, of Clifton, Ill. Yesterday, Rabideau pled guilty to receiving a kickback for procuring a real estate loan and to two counts of filing false tax returns, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. Rabideau remains on bond following his appearance yesterday before U.S. Magistrate Judge David G. Bernthal.
According to court documents, Rabideau has 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 via checks written to nominal payees and 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 from a customer in connection with the real estate loan.
For receipt of money for procuring a loan, the statutory maximum penalty is up to 30 years in prison, and a fine of up to $1,000,000. The statutory maximum penalty for each count of filing a false income tax return is up to three years in prison, and a fine up to $100,000.
The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller. The charges are the result of an investigation by the IRS Criminal Investigation Division; the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General; and, the FBI.
# # # #Grand Jury Charges Conspiracy, Perjury, False Statements in Alleged Kidnapping HoaxRead the Press Release
Springfield, Ill. – The federal grand jury in Springfield, Ill., has indicted the woman allegedly kidnapped from a Champaign, Ill., mall on June 11, 2014, and the two men who appeared to kidnap her. The indictment, returned late yesterday, charges Monica Adriana Zacatlan Ramirez, 19, of Urbana, Ill.; Eduardo Guerrero Cortez, 25, of Texas; and Jarbey Emerson Reyes Villalobos, 18, of Champaign, Ill., with conspiring to provide law enforcement with false statements to conceal that the reported kidnapping was, in fact, a hoax. Ramirez is also charged with one count of making false statements to law enforcement and two counts of perjury for making false statements before a federal grand jury.
The charges are the result of investigation 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 is being prosecuted by Assistant U.S. Attorney Elly M. Peirson.
“Our justice system expects the truth,” said U.S. Attorney Jim Lewis. “When someone willfully lies to police, then willfully lies again under oath to a federal grand jury about a potential kidnapping, those lies damage the justice system, those lies harm law enforcement that is ready to help, and those lies harm other victims who rely on the police.”
Sean Cox, Special Agent in Charge, Springfield FBI stated, “on behalf of the FBI, the seamless cooperation and coordination of law enforcement agencies in Illinois and Texas led to the timely and safe recovery of the alleged victim and apprehension of the subject in this case. We take every threat to the safety of the public seriously, however, we do not have limitless resources, and diverting the resources from both the Champaign area, and our partners in Texas puts the public at risk in the event that an actual emergency did take place.”
"Ms. Ramirez allegedly orchestrated a hoax that selfishly squandered numerous investigative hours and law enforcement manpower,” said Gary Hartwig, special agent in charge for HSI Chicago. "As this indictment demonstrates, those who brazenly lie to law enforcement and waste precious police resources will be held accountable for their crimes.”
“The Champaign Police Department expended significant time and expense in appropriately responding to this false kidnapping report,” states Champaign Police Chief Anthony Cobb. “The effort spent on this investigation kept several of our detectives busy for many days and made it more difficult for us to investigate crime reports filed by legitimate victims.”
Count one of the indictment alleges that Ramirez, Cortez and Villalobos conspired from June 11 through July 16, 2014, to provide law enforcement with false statements regarding the nature of Ramirez’s kidnapping from Market Place Mall in Champaign, specifically that there was no force, threat or coercion involved in the interstate transportation of Ramirez; she voluntarily consented, agreed, and participated in the planning.
According to the indictment, Ramirez and Cortez were involved in a dating relationship during late 2013 and early 2014. Ramirez and her family moved from Texas to Illinois in late May or early June 2014. Ramirez’s family did not approve of Cortez, and Ramirez began a relationship with another individual, during or after her relationship with Cortez.In June 2014, Ramirez and Cortez allegedly agreed to design a scheme whereby Cortez would kidnap Ramirez so that her willingness to be with him would be concealed. To advance the scheme, on June 11, the day of the alleged kidnapping, Ramirez appeared in circuit court in Champaign to petition the court for an emergency order of protection against Cortez. In support of her petition, Ramirez represented that she was fearful of Cortez after she witnessed a violent incident between Cortez and her boyfriend in a laundromat days earlier.
After the court granted the order of protection, Ramirez allegedly spoke to Cortez and told him to pick her up from the Market Place Mall and make it appear that Cortez took her by force. Cortez agreed and allegedly recruited Villalobos and others to aid in the hoax kidnapping. Cortez and Villalobos, armed with a knife, and another individual, traveled to the mall, collected Ramirez and put her into their vehicle. Villalobos threatened Ramirez’s companion and the defendants fled the area. From June 11 through June 14, Ramirez, Cortez and Villalobos traveled from Illinois to Texas.
In addition to the conspiracy, Ramirez is charged with making false statements to special agents of the FBI about her consent and voluntary participation in the hoax kidnapping, and with two counts of lying to a federal grand jury in Springfield. The indictment alleges that on July 2, while under oath before the grand jury, Ramirez lied about an incident she said she witnessed at a laundromat on June 7 that was the basis, in part, for an emergency order of protection that she received on June 11. The indictment alleges that Ramirez was not present on the day of the altercation, and did not witness any of the events. Again, while under oath, on July 2, before the grand jury, Ramirez allegedly lied about her contact with Cortez hours prior to the kidnapping. When asked her explanation for four calls to Cortez from her phone on the day of the kidnapping, Ramirez said she did not call Cortez, when in fact, she made several calls to Cortez.
The three defendants were previously charged by criminal complaint and arrested on July 25. Each remains detained in the custody of the U.S. Marshals Service following their initial appearance in court on July 25, before U.S. Magistrate Judge David G. Bernthal. The U.S. Clerk of the Court will schedule a future date for the defendants to appear for arraignment in federal court in Urbana.If convicted, each of the offenses carries a statutory penalty of up to five years in prison and fines of up to $250,000.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Jury Convicts St. Anne Man for Heroin Trafficking and Felon in Possession of A FirearmRead the Press Release
Urbana, Ill. – A jury deliberated for approximately four hours this afternoon before convicting JB Brown, Jr., aka Cocoa, 37, of the 400 block of Circle Drive, St. Anne, Ill., of federal drug trafficking and possession of a firearm by a felon, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois.
During the trial, which began on Tuesday, Jul. 29, the government presented evidence to establish that in June 2013, Brown possessed more than 100 grams of heroin, which he intended to distribute, and a loaded Glock .45 caliber semi-automatic pistol at a residence in the 7400 block of East First Street in St. Anne.
Following the jury’s return of the guilty verdicts, Brown, who had been released on bond, was remanded to the custody of the U.S. Marshals Service. Sentencing for Brown is scheduled for Dec.1, 2014.
The statutory penalty for possession of 100 grams or more of heroin with the intent to distribute is a minimum 10 years in prison and up to life in prison, and a fine of up to $8 million. The maximum statutory penalty for unlawful possession of a firearm by a felon is 10 years in prison, and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller. The charges are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kankakee Area Project Safe Neighborhoods Task Force, and the Kankakee County Major Crimes Task Force.Mason City Man Charged with Meth ConspiracyRead the Press Release
Peoria, Ill. – A Mason City, Ill., man, Teddy Lee, Jr., 25, of the 400 block of S. Keefer Street, is scheduled to appear in federal court in Peoria on Aug. 6, 2014, to face charges returned by a federal grand jury last week, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. The three-count indictment charges Lee with conspiracy to manufacture methamphetamine, possession of a firearm by a felon, and possession of a stolen firearm.
The indictment alleges that from the summer of 2013 to the present, Lee conspired with others to manufacture methamphetamine, that he possessed a firearm as a felon, and that he possessed a stolen firearm. The conspiracy allegedly involved more than 50 grams of a mixture and substance containing a detectable amount of methamphetamine.If convicted, the statutory maximum penalty for conspiracy to manufacture methamphetamine is life in prison, and a fine of up to $4,000,000. The maximum penalty for the offenses of felon in possession of a firearm and possession of a stolen firearm is 10 years in prison and a fine of $250,000.
The case is being prosecuted by Assistant U.S. Attorney K. Tate Chambers. The charges are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mason County Sheriff’s Office, the Tazewell County Sheriff’s Office, and the Pekin Police Department.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
# # # #Three Charged in Alleged Kidnapping HoaxRead the Press Release
Urbana, Ill. – Two men and a woman, arrested this morning, have been charged by criminal complaint with concealing material fact related to an alleged kidnapping hoax last month, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. Monica Adriana Zacatlan Ramirez, 19, of the 700 block of E. Michigan Ave., Urbana, Ill.; Eduardo Guerrero Cortez, 25, of Texas; and Jarbey Emerson Reyes Villalobos, 18, of Raintree Drive, Champaign, Ill., each made their initial court appearances this afternoon before U.S. Magistrate Judge David G. Bernthal in federal court in Urbana.
Cortez and Villalobos remain in the custody of the U.S. Marshals Service as a result of a detainer placed by U.S. Immigration and Customs Enforcement Homeland Security Investigations. Judge Bernthal ordered that Ramirez also remain detained in the custody of the U.S. Marshals Service.The affidavit, filed in support of the complaint, alleges that after nearly one month of investigation into the alleged kidnapping of Ramirez, on June 11, 2014, from Market Place Mall in Champaign, Ramirez, in fact, designed a scheme with Cortez and Villalobos to perpetrate a hoax kidnapping. The affidavit alleges that the hoax was designed to conceal Ramirez’s willingness and voluntary consent to be with Cortez and to hide Ramirez’s consent from her family and current boyfriend.
The charges are the result of investigation by the Champaign Police Department; the Federal Bureau of Investigation, Springfield and Houston Divisions; the Champaign County State’s Attorney’s Office; and, the U.S. Immigration and Customs Enforcement Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson.
If convicted, the offense carries a statutory penalty of up to five years in prison and fines of up to $250,000.
Members of the public are reminded that a complaint is merely an accusation; the defendants are presumed innocent unless proven guilty.
Husband of Former Country Club Hills Police Chiefsentenced for His Role in $1.25 Million Grant Fraud SchemeRead the Press Release
SPRINGFIELD, Ill. – Ronald W. Evans, Jr., husband of former Country Club Hills police chief Regina R. Evans, was sentenced today for his role in a fraud scheme that misused state grant money awarded in 2009 to We Are Our Brother’s Keeper, a not-for-profit program owned and operated by the couple. U.S. District Judge Sue E. Myerscough ordered that Evans serve 12 months in federal prison, followed by six months of home confinement and two years of supervised release. Evans, 47, was allowed to remain on bond and was ordered to self-report to the federal Bureau of Prisons on Sept. 8, 2014. Evans was also ordered to pay restitution, joint and severally, with his wife, in the amount of $917,194, to the Illinois Department of Commerce and Economic Opportunity.
Ron Evans pled guilty on Aug. 1, 2013, to one count each of money laundering and wire fraud. His wife, Regina Evans, pled guilty on June 17, 2013, to charges of fraud, and was sentenced on May 1, 2014, to serve five years in prison and to pay restitution. In a separate case, Regina Evans also pled guilty and was sentenced for obstruction of justice, witness tampering and conspiracy to obstruct justice and witness tampering.
According to court documents and statements, a $1,250,000 state grant awarded to Ron and Regina Evans on behalf of We Are Our Brother’s Keeper was misused for the couple’s personal benefit, their family members, friends, and associates, and for repayment of indebtedness, and little, if any, of the training proposed in the grant agreement was ever completed. The grant agreement provided for an estimated 40 participants to receive bricklaying and electrical pre-apprenticeship training and GED preparation, at the Regal Theater, another entity owned by the Evanses.
Assistant U.S. Attorney Timothy A. Bass prosecuted the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The investigation was conducted by participating agencies of the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force including the U.S. Postal Inspection Service, Chicago Division; the Internal Revenue Service Criminal Investigations; and, the Illinois Secretary of State Office of Inspector General. Individuals who wish to provide information to law enforcement regarding matters of public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
Two Quad Cities Men Face Federal Charges Related to Heroin Overdose Death of Iowa WomanRead the Press Release
Rock Island, Ill. – A Rock Island, Ill., man, Steven Waldrip, 47, made his initial appearance in federal court today to face charges returned by a federal grand jury this week charging him with one count of distributing heroin resulting in death and three counts of distributing heroin, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. Waldrip is scheduled for arraignment and detention hearings tomorrow before U.S. District Judge Sara L. Darrow at 9:00 a.m., in Rock Island.
The indictment alleges that on Dec. 15, 2013, Waldrip distributed heroin that resulted in death. In addition, the indictment alleges that Waldrip distributed quantities of heroin on three occasions: Apr. 28, May 1, and May 29, 2014.
In a separate, but related, case, Kyle Joseph Wilson, 24, address unknown, was indicted by a federal grand jury in April 2014, and charged with one count of distribution of heroin resulting in death. Wilson was arrested on May 12, 2014, and was ordered to remain in the custody of the U.S. Marshals Service. Trial for Wilson is scheduled on Sept. 9, 2014, in Rock Island, before U.S. District Judge Darrow.
The charges against both defendants are the result of investigation of the heroin overdose death of a Bettendorf, Iowa woman, who was found dead at her residence on Dec. 16, 2013. Investigative agencies include the Bettendorf Police Department, Quad Cities Metropolitan Enforcement Group, and U.S. Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Don Allegro.
If convicted, the statutory penalty for distribution of heroin resulting in death is a minimum 20 years in prison to life; if a defendant has a prior felony drug conviction, the statutory penalty is life in prison. For each count of distribution of heroin, the statutory penalty is up to 30 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.Urbana Man Charged with Child Pornography OffensesRead the Press Release
Urbana, 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 Shannon Logan, 35, of the 1400 block of Scovill St., Urbana, Ill., with distribution, receipt, and possession of child pornography. The indictment, returned late yesterday, alleges that from Mar. 5, 2014, to May 30, 2014, Logan traded images, via the internet, of minors engaged in sexually explicit conduct and retained the images and videos he traded on computer storage devices.
Logan remains in law enforcement custody following his arrest on May 30, 2014, on state charges. In consultation with Champaign County State’s Attorney Julia Rietz, the U.S. Attorney’s office has adopted the matter at this time for prosecution of the alleged child pornography charges.
A date will be determined by the U.S. Clerk of the court for Logan to appear for arraignment before U.S. Magistrate Judge David G. Bernthal in federal court in Urbana.
If convicted of the federal offenses charged, the statutory penalty for each count of distribution and receipt 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. 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, the penalty is up to 10 years in prison.
The charges are being investigated by the Urbana Police Department; U.S. Immigration and Customs Enforcement Homeland Security Investigations; and the Illinois Department of Children and Family Services. The case is being prosecuted by Assistant U.S. Attorney Elly Peirson with the cooperation of Champaign County State’s Attorney Julia Rietz.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
# # # #Former Lincoln Bank Employee Pleads Guilty to Embezzling from BankRead the Press Release
Springfield, Ill. – The former head teller at a Lincoln, Ill., bank, Nancy J. Huskins, 62, today entered a plea of guilty to embezzling nearly $2 million from the bank. Appearing before U.S. Magistrate Judge Thomas P. Schanzle-Haskins, Huskins, of the 900 block of S. Kickapoo St., Lincoln, Ill., waived indictment and entered a plea of guilty to an information that charged her with one count of bank embezzlement.
During her court appearance, and according to court documents, Huskins admitted that from about Jan. 1, 1996, to Nov. 4, 2013, when she was employed as the head teller of the State Bank of Lincoln, she embezzled approximately $1,982,685 for her personal use. Huskins admitted that in her position as head teller, she had access to the bank’s vault and was entrusted with significant access to portions of the vault that maintained large amounts of cash. Huskins admitted that she disguised the embezzlement by personally participating in audits of cash amounts, representing that a certain bag contained an amount of currency, when, in fact, she knew that the bag did not hold currency, but merely other empty currency bags.
The investigation was conducted by agents of the Federal Bureau of Investigation with the full cooperation of the State Bank of Lincoln. The case is being prosecuted by Assistant U.S. Attorney John E. Childress.
Huskins is currently on bond awaiting sentencing, which is scheduled on Nov. 10, 2014, before U.S. District Judge Sue E. Myerscough.
At sentencing, Huskins faces a maximum possible penalty of up to 30 years in prison, a fine of up to $1,000,000, and a term of supervised release up to five years to follow any term of imprisonment. The defendant may also be ordered to make full restitution to the bank.
Owner of Former Danville Business Charged with Defrauding U.S. Energy GrantRead the Press Release
Springfield, Ill. – A federal grand jury today returned an indictment charging Joseph Samuel Kozicki, owner of AA Solar, Inc., in Danville, Ill., with grant fraud. Kozicki, 78, of Choctaw, Okla., will be issued a summons to appear in federal court in Urbana for arraignment on a date to be determined by the U.S. Clerk of the Court.
According to the indictment, Kozicki, chief executive officer of AA Solar, Inc., in Danville, applied for and received a U.S. Department of Energy grant in March 2010, in the amount of $1,776,268. The grant program was funded by the American Recovery and Reinvestment Act of 2009, and was administered in Illinois by the Department of Commerce and Economic Opportunity (DCEO.)
AA Solar applied for the grant funds, according to the indictment, to purchase and install capital equipment for a manufacturing facility at 1303 East Voorhees, in Danville, to make solar tracking systems for ground-based, roof-mounted, and mobile and street light applications. The grant also required a cash match of $1,985,000 from AA Solar.
The indictment alleges that AA Solar submitted false documentation to DCEO; used some of the grant money for other purposes, including for Kozicki’s personal benefit; and attempted to avoid detection of his scheme by law enforcement authorities. Further, Kozicki failed to provide the required cash match. Despite more than $1.5 million in grant money provided to AA Solar, the indictment alleges AA Solar failed to establish a production line to produce solar tracking systems and sold very few solar tracking systems. As a result of the alleged scheme, Kozicki fraudulently attempted to obtain more than $640,000 from the grant and did obtain more than $380,000 from the grant.
As part of the alleged scheme, certain invoices submitted to DCEO were valid; however, when AA Solar received the grant money, it failed to pay the vendors. At other times, the same invoice was submitted to DCEO on multiple occasions. Kozicki also allegedly obtained vendor quotes without incurring the actual expense, but fraudulently represented to DCEO that AA Solar had incurred the expense. Further, Kozicki allegedly caused the creation of false invoices he submitted to DCEO. For example, a $50,000 loan for AA Solar from TSURT, an investment company in the Chicago area, was represented to DCEO as approximately $30,000 of engineering consulting by TSURT for AA Solar.TSURT is not an engineering or consulting firm and did not provide consulting service to AA Solar.
The investigation was conducted by the U.S. Department of Energy Office of Inspector General and the Federal Bureau of Investigation, in cooperation with the Illinois Department of Commerce and Economic Opportunity. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
If convicted, the offense of major fraud against the United States carries a maximum statutory penalty of 10 years in prison and fines of up to $1,000,000.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Former Acting Pembroke Township Supervisorcharged with Defrauding Township Accounts for Personal UseRead the Press Release
Springfield, Ill. – A federal grand jury today returned an indictment that charges Leon Eddie Mondy, former acting Pembroke Township Supervisor, with defrauding township accounts of more than $60,000 from August 2012 to May 2013. Mondy will be issued a summons to appear in federal court in Urbana for arraignment on a date to be determined by the U.S. Clerk of the Court.
The indictment charges Mondy, 35, of St. Anne, Ill., with one count of wire fraud. According to the indictment, as acting Pembroke Township Supervisor, Mondy was a signatory and had access to multiple bank accounts that held township funds. The indictment alleges that Mondy made cash withdrawals of township funds under the false pretense that the funds would be used for the benefit of Pembroke Township. In fact, the indictment alleges Mondy used the funds for his personal benefit, such as for gambling. Mondy allegedly withdrew cash from various Pembroke Township accounts, such as the Insurance Fund, Illinois Municipal Retirement Fund, Water Debt Fund, Community Center Fund, and the Senior Nutrition Fund.
The charge is the result of an investigation by the Federal Bureau of Investigation and the Illinois Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
If convicted, the offense of wire fraud carries a maximum statutory penalty of 20 years in prison and fines of up to $250,000.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
South Carolina Sex Offender Sentenced to Life in Prison Plus 30 Years for Sexual Exploitation of A Child, Possession of Child PornographyRead the Press Release
Springfield, Ill. – A repeat child sex offender, Jerry Lee Hendricks, 66, of Patrick, S.C., today was sentenced to life in prison plus 30 years for sexual exploitation of a minor and one count of possession of child pornography, announced U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge Sue E. Myerscough sentenced Hendricks in federal court in Springfield, Ill.
Hendricks was convicted on July 17, 2013, of four counts of sexual exploitation of a minor and one count of possession of child pornography, following a three-day jury trial in Urbana. During Hendrick’s trial, the government presented evidence that in May 2011, Hendricks coerced and photographed a minor-aged child engaged in sexually explicit conduct. The jury also found that Hendricks was a convicted sex offender at the time he committed the offenses in Kankakee County, Ill.
Hendricks was indicted by a grand jury in April 2012, and was arrested in the District of South Carolina on Aug. 1, 2012. Hendricks has remained in the custody of the U.S. Marshals Service since his arrest.
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.
The case was prosecuted by Assistant U.S. Attorney Elly Peirson. The charges were investigated by the Kankakee County Sheriff’s Office.
Moline Man Sentenced for Sexually Exploiting A MinorRead the Press Release
Rock Island, Ill. — A Moline, Ill., man, Daniel C. McLeod, 26, was sentenced yesterday for the unlawful transportation of a minor with the intent to engage in criminal sexual activity, as announced by Central District of Illinois U.S. Attorney Jim Lewis. U.S. District Judge Sara Darrow ordered McLeod to serve 200 months (16 years, 8 months) in federal prison followed by 10 years of supervised release following his release from prison.
On Jan. 24, 2014, McLeod pled guilty to the offense. According to court documents and evidence presented by the government during court hearings, McLeod traveled to Iowa in December 2012 and picked up a 13-year-old female and brought her to Moline to have sex with her. The female stayed with McLeod for approximately two weeks until the victim notified family members who notified local authorities. During the two week period, McLeod admitted he had sex with the minor multiple times, and occasionally filmed the activity using his cell phone.
McLeod has remained in the custody of the U.S. Marshals Service since his arrest in January 2013.
Assistant U.S. Attorney Kirk W. Schuler prosecuted the case. The charges were investigated by the U.S. Secret Service’s Quad Cities Cyber-Crime Unit and the Moline Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Carbon Cliff Man Sentenced for Sexual Exploitation of MinorsRead the Press Release
Rock Island, Ill. — A Rock Island county man, Daniel William Becker, Jr., 22, of Carbon Cliff, Ill., was sentenced today for sexual exploitation of minors and possession of child pornography, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge Sara Darrow ordered Becker to serve 293 months (24 years, 5 months) in federal prison followed by 20 years of supervised release after his release from prison. Judge Darrow also ordered restitution to victims in the case; however, the final amount of restitution will be determined at a hearing scheduled for Sept. 18, 2014. Judge Darrow also ordered the forfeiture of Becker’s digital devices and his residence in Carbon Cliff.
On Jan. 24, 2014, Becker entered pleas of guilty to sexual exploitation of children and possession of child pornography. According to court documents and evidence presented by the government during court hearings, Becker blackmailed minor females via online social networking websites to send him photographs and videos of the girls engaged in sexually explicit acts. Further, Becker threatened the girls by informing them that he would publicly post compromising photographs of the girls online unless the girls produced and sent additional photographs to him.
Becker has remained in the custody of the U.S. Marshals Service since his arrest in March 2013.
Assistant U.S. Attorney Kirk W. Schuler prosecuted the case. The charges were investigated by the U.S. Secret Service’s Quad Cities Cyber-Crime Unit and the Moline Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Georgia Man Sentenced to More Than 22 Years in Prison for Fraud SchemeRead the Press Release
Peoria, Ill. –Kenneth W. Lewis, 57, of Augusta, Georgia, and Cranford, New Jersey, was sentenced today for wire fraud and money laundering charges, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge James E. Shadid ordered Lewis to serve a total of 271 months (22 years, 7 months) in federal prison. In addition, Lewis was ordered to pay restitution in the amount of $5,565,406 to victims of the offenses and ordered to forfeit that same amount. Approximately $8,000 in assets seized at the time of his arrest will be applied to that amount.
On February 24, 2014, Lewis was convicted by a jury of four counts of wire fraud and 11 counts of money laundering. During five days of trial in February, the government presented evidence that established that beginning in the late 1990s, Lewis offered investors the ability to generate income through highly secretive overseas financial transactions. Evidence further established that Lewis obtained more than $5.5 million from others to cover his living expenses while he was purportedly working on completing the details of non-existent transactions. Further, Lewis told investors that he had been living in Zurich, Switzerland for seven years working on the transaction, when, in fact, he was living in a hotel in New Jersey, where he was arrested in July 2012.
Lewis has remained in federal custody since his arrest.
The case was prosecuted by Assistant U.S. Attorneys Darilynn J. Knauss and Bradley W. Murphy. The charges were investigated by IRS, Criminal Division and the U.S. Postal Inspection Service.
Brother of Former Country Club Hills Police Chief sentenced for Money Laundering, Obstruction of JusticeRead the Press Release
SPRINGFIELD, Ill. –Ricky McCoy, brother of Regina R. Evans, former police chief for Country Club Hills., Ill., was sentenced this afternoon for money laundering and obstructing justice in the federal investigation of a grant fraud scheme involving his sister and her husband. U.S. District Judge Sue E. Myerscough ordered that McCoy serve six months in federal prison, followed by six months of home confinement. McCoy was allowed to remain on bond and self-report to the federal Bureau of Prisons on a date to be determined by BOP. McCoy was also ordered to remain on supervised release for three years following his release from the six-month prison term. McCoy was ordered to pay restitution, joint and severally, with his sister and her husband, Ronald Evans, in the amount of $44,338, to the Illinois Department of Commerce and Economic Opportunity.
McCoy entered pleas of guilty on Aug. 29, 2013, to money laundering and obstruction of justice. Regina Evans previously entered pleas of guilty to charges filed in two cases. On Aug. 19, 2013, Evans pled guilty to obstruction of justice, witness tampering and conspiracy to obstruct justice and witness tampering. Evans pled guilty on June 17, 2013, to charges of fraud related to a $1.25 million state grant awarded in 2009 to We Are Our Brother’s Keeper, a not-for-profit program that Evans owned with her husband, Ronald W. Evans, Jr. Ronald Evans has pled guilty to the fraud scheme and is scheduled to be sentenced on July 11, 2014.
On May 1, 2014, Regina Evans was sentenced in the two cases. U.S. District Judge Myerscough ordered Evans to serve five years in federal prison and to pay restitution, jointly and severally with her husband, Ronald Evans, in the amount of $917,194, to the Illinois Department of Commerce and Economic Opportunity.
McCoy assisted the Evanses in the management of We Are Our Brother’s Keeper. McCoy pled guilty to money laundering related to the grant funds when he issued a check payable to himself, in the amount of $16,249, on behalf of We Are Our Brother’s Keeper, with the proceeds of the check deposited to an account controlled by the Evanses. Further, McCoy issued two additional checks, totaling $19,888, on behalf of We Are Our Brother’s Keeper, made payable to an associate of the Evanses; $17,888 of the check proceeds were deposited to a bank account controlled by the Evanses.
McCoy pled guilty to participating with his sister and others to have an unidentified person create a false story for law enforcement, the grand jury, and as a witness in a court proceeding, to falsely represent that the individual performed actual work under the grant awarded to We Are Our Brother’s Keeper. In fact, the individual performed no such work and the checks issued to the individual were merely a means to conceal grant funds converted to cash and returned to the benefit of the Evanses.
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 ongoing investigation is being conducted by participating agencies of the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force including the U.S. Postal Inspection Service, Chicago Division; the Internal Revenue Service Criminal Investigations; and, the Illinois Secretary of State Office of Inspector General. Individuals who wish to provide information to law enforcement regarding matters of public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
15 Face Federal Charges in Central Illinois for Allegedly Defrauding Medicaid Home Services ProgramRead the Press Release
Springfield, Ill. – Jim Lewis, U.S. Attorney for the Central District of Illinois, today announced that 15 individuals have been charged by federal criminal complaint or information for allegedly submitting false timesheets for work not performed as personal assistants through the Home Services Program, a state Medicaid Waiver program. The individuals charged are all alleged to have submitted or assisted another in submitting fraudulent time sheets for hours that the personal assistant was working another job, or was otherwise out of the area, or during a time that the disabled customer was hospitalized or otherwise not using their services.
Medicaid Waiver programs enable states to use both federal and state Medicaid funds to pay for services related to medical care that would not ordinarily be covered under Medicaid. Through the Home Services Program, the State of Illinois provides funding for services to individuals with significant disabilities so that they may remain in their homes and live as independently as possible. One of the services available to those with significant disabilities is the personal assistant program.
The 13 defendants charged by complaint will be issued summonses and are each scheduled to make initial appearances before U.S. Magistrate Judge Tom Schanzle-Haskins on June 16, 2014. The two defendants charged by information are each scheduled to appear before Judge Schanzle-Haskins on June 12, 2014.
All of the charges are the result of investigations conducted by members of the Central Illinois Health Care Fraud Task Force. These agencies include the Illinois State Police Medicaid Fraud Control Bureau; U. S. Department of Health and Human Services Office of Inspector General; the FBI, IRS Criminal Investigation; and the Illinois Attorney General’s Office. The cases are being prosecuted by Assistant U.S. Attorney Patrick D. Hansen.
“We appreciate the importance of making sure that people make honest use of public money,” said U.S. Attorney Lewis. “And we certainly appreciate the work of law enforcement officials to hold people accountable.”
The Home Services Program provides for a qualified individual with disabilities, the customer, to hire one or more personal assistants to perform or assist the individual to perform household tasks, shopping, personal care, incidental health care tasks, and monitoring to ensure the health and safety of the customer. The personal assistant is hired by and reports directly to the customer or their family member, but is paid by the State of Illinois through this Medicaid waiver program.
The Illinois Department of Human Services administers the Home Services Program; operational responsibility for the Home Services Program, with minor exceptions, rests with the Division of Rehabilitation Services, which is a part of the Illinois Department of Human Services. Funds for the program are administered by the Illinois Department of Health and Family Services. Approximately one-half of the program funding is provided by the U.S. Department of Health and Human Services.
To receive payment as a personal assistant, the customer and the personal assistant complete and submit time sheets twice monthly. These time sheets contain the dates and number of hours worked by the personal assistant. Both the customer and personal assistant are required to certify the accuracy of the time sheets. The time sheets are then submitted to the Department of Human Services, and, if approved, the claims are paid through the Office of the Comptroller.When hired, the personal assistant is required to sign a DHS Division of Rehabilitation Services Individual Provider Payment Policies form acknowledging their awareness of Home Services policies including the following:
• Individual Providers can only be paid for the hours they worked for the customer per the HSP Service Plan. Billing for hours not worked constitutes Medicaid fraud.
• Individual Providers can only be paid for hours and tasks performed in the customer's home unless the task must be completed outside the home such as laundry due to no facilities in the home, banking, and grocery shopping.
• Individual Providers are not allowed to subcontract. Subcontracting means letting someone else work in your place, putting the time on your time sheet and then paying them yourself. . . .Each Individual Provider will only be paid for services which he or she provided directly to the customer.
• Individual Providers cannot charge HSP for the same hours worked when working another job. This includes working for other HSP customers or as a childcare provider paid through the Department of Human Services. This constitutes fraud and will be prosecuted as such.On May 30, 2014, criminal complaints or informations were filed in the Central District of Illinois against the following:
Michelle Calhoun, 36, of Cantrall Creek Rd, Cantrall, Ill., Patricia Davis, 58, and Alicia Davis, 29, both of the 300 block of S. 7th St., Petersburg, Ill., charged by complaint with mail fraud, in May 2013, for allegedly submitting false time sheets for services that none of them performed;
Jason C. Greene, 36, of Bloomington, Ill., but currently in the custody of the Illinois Department of Corrections, charged by complaint with health care fraud, from December 2008 to May 2012, for allegedly submitting false time sheets for at least 300 hours of work performed during times when he was incarcerated;
Thelma Gude, 55, of the 600 block of E. Kansas, Peoria, Ill., charged by complaint with health care fraud, from April 2013 to July 2013, for allegedly submitting false time sheets for hours claimed to have been worked while her client was hospitalized;
Amber Gibson, 26, of Marengo, Ill., charged by complaint with mail fraud, in September 2011, for allegedly submitting false time sheets for hours worked when she was working at another job.Palestine Zambrella, 75, of Machesney Park, Ill., charged by complaint with mail fraud, in November 2012, for allegedly submitting false time sheets for hours worked that she was working at another job;
Amber F. Pates, 19, of the 5200 block of N. Knoxville, Peoria, Ill., charged by complaint with mail fraud, in March 2013, for allegedly submitting false time sheets for work performed when her customer was incarcerated;
Cheryl R. Hood, 33, of the 700 block of E. Milton Ave., Lewistown, Ill., charged by complaint with health care fraud, in September - October 2013, for allegedly submitting false time sheets for hours claimed to have been worked while her client was in the hospital;
Gayle L. Schultz, 55, of the 1100 block of Hawkinson, Galesburg, Ill., charged by complaint with mail fraud, in April 2013, for allegedly submitting false time sheets for hours worked when she was working at another job;
Karen Garske, 50, of the 2200 block of W. Wiswall St., Peoria, charged by complaint with health care fraud, in February – July 2013, for allegedly submitting false time sheets for hours claimed to have been worked while her customer was in the hospital;
Patricia Dismuke, 43, of Rockford, Ill., charged by complaint with mail fraud, in December 2011, for allegedly submitting false time sheets for hours worked when she was working at another job;
Marlene A. Liss, 37, of Chicago, charged by information with health care fraud, from June 2010 to August 2013, for allegedly submitting false time sheets for personal assistance work performed for a relative while she was employed full-time with the Illinois Office of the Secretary of State; and,
Mildred M. Day, 50, of Chicago, charged by information with making a false statement to a government agency, in March 2012, by misrepresenting that a personal assistant was providing services at a time when that person was not providing any services.If convicted, for the offense of mail fraud, the statutory penalty is up to 20 years in prison, and fines up to $250,000; for health care fraud, the statutory penalty is up to 10 years in prison and fines up to $250,000; and, for making a false statement, the penalty is up to five years in prison.
Members of the public are reminded that complaints and informations are merely accusations; each defendant is presumed innocent unless proven guilty.