Central District of Illinois
Press releases recorded for this federal judicial district.
Rural Vermilion County Man Arrested on Child Pornography ChargesRead the Press Release
Urbana, Ill. – A rural Vermilion county man, Robert Lee Garrison, 43, of the 10,000 block of 2750 N Road, Potomac, Ill., was arrested today on child pornography charges and appeared before U.S. Magistrate Judge David G. Bernthal, in Urbana. A federal grand jury in Peoria recently returned the indictment that charges Garrison with receipt and possession of child pornography, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. The indictment had remained sealed pending Garrison’s arrest and arraignment.
Garrison has entered a plea of not guilty and the court scheduled trial for Aug. 4, 2014, before Chief U.S. District Judge James E. Shadid, in Peoria. Following today’s court appearance, Garrison was released on $10,000 unsecured bond with specific conditions including pre-trial monitoring and supervision.
The indictment alleges that from August 2006 to May 2011, Garrison received and possessed images and videos of minors engaged in sexually explicit conduct. The indictment also seeks forfeiture of computers and related materials allegedly used to commit or promote the offensesIf convicted, the statutory penalty for each count of 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 case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by the Federal Bureau of Investigation and the Vermilion County Sheriff’s Office.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
# # # #Urbana Man to Serve 10 ½ Years for Bank RobberiesRead the Press Release
Urbana, Ill. – An Urbana, Ill., man, Willie B. Franklin, Jr., 38, has been ordered to serve
125 months (10 years, 5 months) in prison for robberies committed in December 2012 of four
banks in central Illinois and one bank in southern Iowa. Yesterday, May 27, U.S. District Judge
Michael P. McCuskey further ordered that Franklin pay restitution in a total amount over
$46,000.
According to court documents filed by the U.S. Attorney’s Office, in mid-May, the U.S.
Attorney’s Office received an anonymous letter with information that Franklin had received
inheritance money. Upon investigation, authorities confirmed that Franklin had inherited money
after his father died in March 2014. On May 19, U.S. District Judge Michael P. McCuskey
issued a court order that any inheritance Franklin received, up to the value of restitution owed, be
turned over to the Clerk of the Court.
Franklin pled guilty on Jan. 31, 2014, to committing five bank robberies in December
2012: on Dec. 3, 2012, Main Source Bank, Kankakee County; on Dec. 5, 2012, PNC Bank,
Peoria County; on Dec. 20, 2012, Homestar Bank and Financial Services, Kankakee County; on
Dec. 26, 2012, First Mid-Il Bank and Trust, Adams County; and, on Dec. 17, 2012, US Bank in
southern Iowa.
Franklin was arrested on Jan. 28, 2013, in the Middle District of Florida and appeared in
federal court in Tampa, Fl., prior to being transferred to the Central District of Illinois. Franklin
has remained in the custody of the U.S. Marshals Service since his arrest.The investigation was conducted by the FBI, the Urbana Police Department, the Quincy
Police Department, the Peoria Police Department, the Decatur Police Department, the Manteno
Police Department, and the Iowa City Police Department. Assistant U.S. Attorney Jason M.
Bohm prosecuted the case.California Man Sentenced to Prison for Making False Statement to BankRead the Press Release
Urbana, Ill. – A California man, Michael Allen Cox, 39, was taken into law enforcement custody when his sentencing hearing ended on May 22, 2014. U.S. District Judge Michael P. McCuskey ordered Cox to serve 27 months in federal prison for making a false statement to a bank related to a loan application to purchase a Rantoul, Ill., apartment complex. Cox was also ordered to pay $650,000 restitution to the victim bank. Further, Cox will remain on supervised release for five years following his release from prison with the condition that he cannot engage in real estate transactions without approval from U.S. Probation.
On Feb. 10, 2014, Cox entered a plea of guilty to making a false statement to the Bank of Rantoul in July 2008. Cox admitted he provided a false escrow receipt in the amount of $250,000 as proof of funding necessary to rehabilitate the Parkview Rentals Apartments located at 1400 Hobson Drive, Rantoul, Ill. Cox admitted the escrow receipt, which appeared to be a cashier’s check for $250,000 from Wells Fargo Bank, was false and no such deposit existed.
In July 2008, Cox, acting as the chief operating officer for Crane and Power Industries, Los Angeles, received a loan in the amount of $1,663,459.00 to purchase the Parkview apartments. Cox set up Evergreen Property Management to collect rent from the rental properties and to manage the rehabilitation of the property. By February 2009, Crane and Power failed to make mortgage payments and the property went into foreclosure. The apartments were in complete disrepair and deemed uninhabitable by the time the foreclosure was finalized in September 2009. Bank of Rantoul was unable to sell the property and the property was eventually deeded to the Village of Rantoul in February 2011, at a loss of approximately $2 million dollars on the property.
The case investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Ronda H. Coleman.
# # # #Paxton, Ill. Man Sentenced to 30 Years in Prison for Operating Extensive Cocaine Trafficking Network in Central IllinoisRead the Press Release
Urbana, Ill. – A Paxton, Ill., man, Eddi Ramirez, 32, who led an extensive network of cocaine and heroin suppliers, couriers, and distributors, has been sentenced to 30 years in prison, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. At sentencing yesterday, before U.S. District Judge Michael P. McCuskey, the government characterized Ramirez and his operation as one of the largest and most far-reaching cocaine dealers in central Illinois’ history. Ramirez has remained in law enforcement custody since his arrest in September 2012.
As a result of the Organized Crime Drug Enforcement Task Force (OCDETF) investigation, known as "Operation Tres Ciudades (Three Cities)", law enforcement gathered evidence to establish that Ramirez led a drug organization, from 2011 to September 2012, that was responsible for the importation of more than 200 pounds of cocaine from Mexico destined for central Illinois, stretching from Paxton to Champaign, Decatur and Springfield. Sixteen defendants have been charged and sentenced for their respective roles in Ramirez’s trafficking operation or their relation to it; three defendants remain fugitives. A list of the defendants and their respective sentences is attached.
A jury convicted Ramirez, aka "Migo," on Feb. 13, 2014, following a seven-day trial, of conspiring with others to distribute cocaine and distribution of cocaine. During the seven days of trial, the government presented evidence obtained from a court-authorized wiretap of seven of Ramirez’s telephones, the seizure of approximately $855,716 in cash; nearly nine kilograms (nearly 20 pounds) of cocaine seized in Springfield, Elgin and Houston, Texas; and approximately three kilograms (six pounds) of heroin.
Evidence further established that Ramirez used multiple sources in Texas, Arizona and Chicago, various couriers to transport the cocaine to central Illinois, and then provided the cocaine, valued at more than $3 million, to dealers in central Illinois. Government evidence also established that Ramirez used a house at 76 E. Court Drive, in Decatur, Ill., as a ‘stash’ house to store and package cocaine and to move drug money.
“This was a particularly significant pipeline of drugs into our area. We had to shut it down, and we did,” said U.S. Attorney Lewis. “Law enforcement, especially DEA, FBI, the Illinois Attorney General’s Office, and the Decatur Police Department, worked together to make smart use of their respective investigative resources to effectively shut down this extensive drug operation, to hold Ramirez and his organization accountable, and to truly serve our community.”
The Organized Crime Drug Enforcement Task Force (OCDETF) investigation known as "Operation Tres Ciudades (Three Cities,)" was led by the Drug Enforcement Administration, Springfield Resident Office. Law enforcement agencies participating in this investigation include the FBI, Springfield Division; Decatur Police Department; Springfield Police Department; the Illinois State Police, the Central Illinois Enforcement Group; the Illinois Attorney General’s Office; and, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The U.S. Immigration and Customs Enforcement Homeland Security Investigations also provided assistance in the investigation. Assistant U.S. Attorney Timothy A. Bass prosecuted the cases in the Central District of Illinois, Springfield and Urbana Divisions.
Marshall County Man Convicted of Sexual Exploitation of MinorsRead the Press Release
Peoria, Ill. — Following a two-day bench trial before Chief U.S. District Judge James E. Shadid, Brian A. Miller, 36, of Varna, Ill., was convicted today of 22 counts of sexual exploitation of a minor. Judge Shadid scheduled sentencing for Miller on Sept. 16, 2014
Since Miller was arrested and charged in a criminal complaint, filed Aug. 29, 2013, he has remained detained in the custody of the U.S. Marshals Service.
During the two days of trial, the government presented evident to demonstrate that from at least July 2011 through May 2012, on at least 22 occasions, Miller used a cell phone to take images of minors from a hole in the wall of his home while the minors were using a shower.
At sentencing, for each count of sexual exploitation of a minor in the production of child pornography, the statutory penalty is not less than 15 years in prison and up to 30 years in prison. The offense also carries a term of supervised release of up to life following any term of imprisonment.
The charges are the result of an investigation by the U.S. Secret Service; the Marshall County Sheriff’s Office, the Peoria County Sheriff’s Office and the Bloomington Police Department. Assistant U.S. Attorney Timothy A. Bass is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Kankakee Man Sentenced to 13 Years in Federal Prison for Distribution of Crack CocaineRead the Press Release
Urbana, Ill. -- U.S. District Judge Michael P. McCuskey today sentenced Deshawn Lewis, 36, of Kankakee, Ill., to 157 months (13 years, 1 month) in the federal Bureau of Prisons for distribution of crack cocaine. Lewis was also ordered to serve eight years of supervised release upon his release from prison.
Lewis faced a mandatory minimum sentence of 10 years to life in prison based on two prior felony drug convictions. In 1997, Lewis was convicted in Kankakee County Circuit Court for unlawful delivery of a controlled substance and was sentenced to four years in the Illinois Department of Corrections. In 2004, Lewis was convicted for armed violence and sentenced to 20 years in the Illinois Department of Corrections. Lewis was released from state prison in September 2011 and remained on state parole when he was arrested on federal charges in January 2013.
Since Lewis was arrested on Jan. 16, 2013, by agents of the Kankakee Area Metropolitan Enforcement Group (KAMEG), he has remained in the custody of the U.S. Marshals Service. A federal grand jury indicted Lewis in February 2013, and on Dec. 18, 2013, Lewis pled guilty to one count of distribution of crack cocaine. Lewis admitted that on May 15, 2012, he distributed 49.8 grams of crack cocaine at a Kankakee gas station.
The charges resulted from an investigation conducted by the Kankakee Area Metropolitan Enforcement Group (KAMEG) and the Illinois State Police, with assistance from the Kankakee County State’s Attorney's Office. The case was prosecuted by Assistant U.S. Attorney Ronda H. Coleman.
Kankakee Man to Serve 20 Years in Federal Prison for Crack Cocaine OffenseRead the Press Release
Urbana, Ill. -- U.S. District Judge Michael P. McCuskey yesterday sentenced David L. Crisp, Jr., of Kankakee, Ill., to 240 months in the federal Bureau of Prisons for possession with the intent to distribute crack cocaine. Crisp was also ordered to serve eight years of supervised release upon his release from prison.
Crisp, 35, faced a mandatory minimum sentence of 10 years to life in prison based on two prior felony drug convictions. In 1999, Crisp was convicted in Kankakee County Circuit Court for unlawful delivery of a controlled substance within 1000 feet of a church and was sentenced to six years in the Illinois Department of Corrections. In 2003, Crisp was sentenced to four years in the Illinois Department of Corrections after being convicted of manufacture/delivery of 1-15 grams of cocaine.
Crisp was indicted by a federal grand jury in September 2013, and pled guilty on Jan. 9, 2014, to knowingly possessing 28 grams or more of crack cocaine with the intent to distribute it.
Crisp was arrested by agents of the Kankakee Area Metropolitan Enforcement Group (KAMEG) on Aug. 23, 2013, after a search warrant was executed at Crisp’s residence in the 1100 block of S. East Avenue in Kankakee. KAMEG agents recovered 41.1 grams of crack cocaine which was packed and intended for further distribution.
The charges resulted from an investigation conducted by the Kankakee Area Metropolitan Enforcement Group (KAMEG) and the Illinois State Police, with assistance from the Kankakee County State’s Attorney's Office. The case was prosecuted by Assistant U.S. Attorney Ronda H. Coleman.
Kankakee Area Father, Son Sentenced for $1.7 Million Bank Fraud SchemeRead the Press Release
Urbana, Ill. – A Bourbonnais, Ill., businessman Gregory Yates, 54, and his son, Terrance Yates, 33, were sentenced this morning for defrauding a federal business loan program of $1.7 million. U.S. District Judge Michael P. McCuskey ordered Gregory Yates to serve 12 months and one day in prison, followed by three years of supervised release; Terrance Yates was sentenced to one day in prison, followed by three years supervised release, with the first 12 months of supervised release to be served as home detention. Both were ordered to pay restitution in the amount of $1,387,816. Gregory Yates is to report to the federal Bureau of Prisons on Jul. 23, 2014. The government recommended to the court that each defendant serve 33 months in prison
On Feb. 10, 2014, Gregory and Terrance Yates each pled guilty to one count of conspiracy to commit bank fraud. In addition, Terrance Yates pled guilty to one count of money laundering.
At the time of the fraud, from April 2009 to July 2011, Gregory Yates was the president and chief executive officer of Quality Concepts, LLC; his son, Terrance, was the chief financial officer. Gregory Yates also owned and operated QC Manufacturing, LLC, and Champion Development, LLC, a construction company. Terrance was the chief financial officer and vice-president of operations for Champion Development, LLC. For each company, the principal office location was 1475 Harvard Drive, Kankakee, Ill.
In court proceedings and according to court documents, in May 2009, Gregory Yates, doing business as QC Manufacturing, LLC, purchased a manufacturing facility, tools and equipment, owned by Casey Tool and Machine, at 400 West Delaware Ave., Casey, Ill. At the time of the purchase, Casey Tool and Machine was in bankruptcy. Prior to its bankruptcy, Casey Tool and Machine was owned by Gregory Yates’ brother, Jim Yates.
In November 2009, QC Manufacturing, LLC, applied for and was subsequently awarded a Business and Industry Loan through the U.S. Department of Agriculture, Office of Rural Development. Although the $5.95 million loan was processed through Country Bank of Aledo, the loan guarantee was funded by the USDA using money allocated through the American Recovery and Reinvestment Act.
Gregory Yates admitted that, as part of the loan application, he submitted a letter stating that he intended to use the $5.95 million USDA loan to purchase a vacant manufacturing facility in Casey, Ill., tools and equipment to operate within the facility, and start up working capital for initial cash and inventory.
The letter represented that the facility would be used to produce and distribute precision lighting equipment and he estimated that more than 200 new jobs would be created. The loan application included a budget of $1.7 million to perform construction and improvements on the Casey facility.
Although the bank approved the loan, including the renovation budget, QC Manufacturing, LLC was required to complete the work for which it was requesting payment before Country Bank would fund any portion of the $1.7 million allocation. Gregory and Terrance Yates admitted that they agreed with each other to use only their own construction company, Champion Development, and no subcontractors, to perform the construction and improvements. By listing only their own construction company, the Yateses admitted they were able to falsely and substantially inflate the value of the labor or materials furnished by Champion Development, thereby drawing money from the USDA loan for work that was either never performed or was of lesser value than claimed on the contractor’s sworn statements provided to the bank. For example, Gregory Yates admitted he told employees of Champion Development to ‘simply spruce up’ the Casey facility to lower the cost of improvements.
Terrance, in agreement with Gregory Yates, admitted that fraudulent sworn statements and affidavits, signed by Terrance, were submitted to the bank claiming that Champion Development had performed work and supplied materials. Based on these fraudulent statements, the bank disbursed $1.7 million to QC Manufacturing. Of the $1.7 million disbursed, more than $1.3 million was transferred from QC Manufacturing to Champion Development and then transferred to other accounts.
The charges were investigated by Internal Revenue Service Criminal Investigation; the U.S. Department of Agriculture Office of Inspector General; the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General; and the FBI. The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Named Defendant in Dorsey V. United States arrested and Charged with New Federal OffensesRead the Press Release
Springfield, Ill. B Today, a federal grand jury returned an indictment charging Edward Dorsey Sr., 42, of St. Anne, Illinois, with three counts of distributing cocaine base (“crack”) in violation of federal law. Additionally, the United States Probation Office for the Central District of Illinois previously filed a petition to revoke Dorsey’s federal supervised release (similar to parole) based on his recent drug trafficking activities, as well as based on allegations of Aggravated Unlawful Restraint and Battery involving a firearm in violation of state law.
According to today’s indictment, Dorsey allegedly distributed more than 28 grams (approximately one ounce) of crack cocaine in Kankakee County, in the Central District of Illinois, on both November 21 and December 18 of 2013. The indictment also alleges that Dorsey distributed crack cocaine on December 10, 2013, in Kankakee County, Illinois.
If convicted of the new drug trafficking charges, Dorsey faces a mandatory minimum sentence of 10 years of imprisonment up to life imprisonment under the revised penalties contained in the Fair Sentencing Act.
Dorsey was on supervised release from a prior conviction for a federal crack cocaine trafficking offense. Dorsey appealed his sentence to the United States Supreme Court, which concluded that Dorsey should have been sentenced under the Fair Sentencing Act. This served to reduce Dorsey’s sentence and the sentence of others who were sentenced for similar crimes after the effective date of the Act, August 3, 2010.
Dorsey faces additional penalties because he was still serving his term of supervised release when he is alleged to have committed the crimes in the indictment. According to a petition to revoke his supervised release, Dorsey also allegedly kidnapped and battered a man at a Citgo Gas Station in Pembroke, Illinois, on January 9, 2014. The petition further alleges that Dorsey grabbed the man by the shirt, forced him into a car, pointed a gun at the man, 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.
If Dorsey’s supervised release is revoked, he could be sentenced to up to three years of imprisonment in addition to any sentence for the drug trafficking charges.
Dorsey will appear before United States Magistrate Judge David G. Bernthal in Urbana at a future date to be arraigned on the drug trafficking charges and to address the petition to revoke his supervised release.
Members of the public are reminded that both an indictment and petition to revoke supervised release are merely accusations; the defendant is presumed innocent unless proven guilty.
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.
Third Defendant Sentenced to More Than 20 Years in Prison for Armed Robbery of Kankakee Credit UnionRead the Press Release
Urbana, Ill. – Today, Chief U.S. District Judge James E. Shadid sentenced Brian O. Williams, 37, of the 700 block of Webster Circle West, Kankakee, Ill., to prison for the June 2009 robbery of the Shapiro Developmental Center Employees Credit Union (SDCECU) in Kankakee. Judge Shadid ordered Williams to serve 20 years and 9 months in the federal Bureau of Prisons, followed by five years of supervised release. In addition, Williams was ordered to pay restitution to the bank in the amount of $284,218. Williams has remained in law enforcement custody since his arrest in September 2012 in Ohio.
Williams pled guilty on April 17, 2013, to one count of aggravated bank robbery and one count of brandishing a firearm during a crime of violence. Williams admitted that, on June 16, 2009, James Williams drove him and Frank C. Black to the credit union to commit the robbery. Brian Williams and Black entered the credit union wearing masks and gloves and armed with handguns. They jumped the counter, brandished their guns, threatened to shoot the credit union employees, and demanded access to the cash drawers and the credit union’s vault. The employees of the credit union complied with their demands. The men took $276,010 from the drawers and vaults, put it into bags they had brought with them, and left the credit union. The three men then got back into James Williams’ vehicle, drove to a residence, and split the money.
Brian Williams was ordered to serve 13 years and 9 months for the aggravated bank robbery, plus a consecutive seven-year sentence for brandishing a firearm during a crime of violence. U.S. District Judge Michael P. McCuskey previously sentenced Black to 70 months (5 years, 10 months) in prison for his role in the credit union robbery. James Williams was previously ordered to serve 87 months (7 years, 3 months) in prison.
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. Assistant U.S. Attorney Eugene L. Miller prosecuted the case.
# # # #Bloomington Man to Serve 10 Years in Prison for Placing Pipe Bomb in DecaturRead the Press Release
Urbana, Ill. – Senior U.S. District Judge Harold A. Baker yesterday sentenced Lloyd B. Lockwood, 47, of Bloomington, Ill., to serve the statutory maximum 10 years in federal prison for placing a pipe bomb in a Decatur, Ill., mailbox in March 2011, as announced by U.S. Attorney Jim Lewis, Central District of Illinois.
On Aug. 14, 2013, a jury convicted Lockwood for placing a pipe bomb in a mailbox at a Decatur home on Mar. 30, 2011. Lockwood was charged with possession of an unregistered destructive device and being a felon in possession of a destructive device.
Lockwood was arrested and charged in the case in September 2012. He was released on bond with special conditions including home detention. In January 2013, U.S. Magistrate Judge David G. Bernthal revoked Lockwood’s bond after Lockwood violated an order of protection filed against him in McLean county court. Lockwood has been detained in the custody of the U.S. Marshals Service since January 2013, and was remanded to the U.S. Marshals Service following yesterday’s hearing.
The case was prosecuted by Assistant U.S. Attorney Jason M. Bohm. The charges were investigated by the FBI, ATF, Decatur Police Department, Macon County Sheriff’s Office, and the University of Illinois Bomb Squad.Former Chief of Staff for Illinois Department of Public Health Pleads Guilty to Bribery and Taking Kickbacks, Obstruction of JusticeRead the Press Release
Springfield, Ill. – A former Chief of Staff for the Illinois Department of Public Health, Quinshaunta R. Golden, pled guilty today to bribery and taking kickbacks related to $13 million in grant and contract funds awarded at Golden’s direction and to obstructing justice in a federal grand jury investigation. Golden appeared before U.S. District Judge Sue E. Myerscough in Springfield. Sentencing for Golden has been scheduled for Aug. 18, 2014.
Golden, 45, of Homewood, Ill., served as Chief of Staff at the Ill. Department of Public Health from 2003 to early 2008. In that capacity, Golden had significant control over the agency’s offices and had certain approval authority and control over the awarding of grants and contracts. In 2008, Golden left the Department of Public Health and took a position at the University of Chicago Medical Center.
During today’s hearing and according to court documents, Golden admitted that from August 2006 to at least October 2008, she used her position to cause the agency to issue approximately $11 million in grant funds, for programs relating to breast, cervical and prostate cancer, HIV/AIDS, and emergency preparedness, to three not-for-profit organizations: Broadcast Ministers Alliance, Access Wellness and Racial Equity, and the Medical Health Association. These organizations were then controlled by Leon Dingle, Jr., and his for-profit corporation known as Advance Health, Social and Educational Associates, Inc.
As part of the scheme, Golden caused Individual A to be hired as a paid consultant for Leon Dingle, Jr., and the three not-for-profit entities, as well as a paid consultant for an entity identified as Security Firm A. As a result, approximately $772,500 in grant funds, originally disbursed to the three not-for-profit entities, was paid to Individual A from July 2007 to April 2008, including approximately $407,500 paid to Individual A in April 2008 alone, at the end of Golden’s tenure at the Department of Public Health. As a condition of Individual A receiving grant funds, Golden admitted that she required Individual A to pay her one-half of whatever Individual A received, less any funds to be withheld for payment of taxes, which were never paid.
In addition, Golden caused approximately $2 million in contract funds to be paid by the Department of Public Health to Security Firm A to conduct background checks and interviews of Illinois nursing home residents related to the Identified Offender Program. Golden required Individual A to pay Golden kickback payments for each background investigation performed by Security Firm A.
Golden admitted that from February to April 2012, she persuaded and attempted to persuade Individual A, a material witness, with the intent to obstruct an official grand jury investigation in the Central District of Illinois. Golden met with Individual A on multiple occasions and falsely denied receiving improper kickback payments from A. Golden then admitted to Individual A that she caused grants to be issued to certain vendors and to Individual A, but encouraged and instructed Individual A not to tell the truth concerning the kickback scheme and to conceal the truth from A’s attorney, and to create a false story by saying that Individual A used the grant and contract funds for gambling and other personal expenses.
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. The government agrees that calculation of the advisory sentencing guideline range would result in the government recommending a sentence of no higher than 121 months in prison. The defendant remains free to challenge the calculation and to recommend whatever sentence the defendant deems appropriate.
In the related but separate case, Leon Dingle, Jr., his wife Karin, both of Chicago, and two associates, Jacquelyn Kilpatrick, of Phoenix, Ill., and Edmond Clemons, of the same Phoenix address, were indicted in October 2012, on charges that they used millions of dollars in grant funds awarded by the Ill. Department of Public Health to grant recipients for their personal benefit and to pay personal expenses. Trial in this case is currently scheduled for June 3, 2014, before Senior U.S. District Judge Richard Mills in Springfield.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Central District of Illinois U.S. Attorney Jim Lewis expressed his appreciation to the federal law enforcement officers assigned and the agencies who support the Central District of Illinois U.S. Attorney’s Office’s Public Corruption Task Force: Tony Gomez, Postal Inspector in Charge, U.S. Postal Inspection Service, Chicago Division; James Lee, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Chicago Field Office; and Jim Burns, Inspector General, 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.
Kankakee Businessman Sentenced to Prison for Filing False Income Tax Returns and StructuringRead the Press Release
Urbana, Ill. – The owner of ABC Disposal Inc., a Kankakee waste management company, was sentenced late yesterday to a prison sentence for filing false income tax returns and structuring cash withdrawals to avoid detection by the IRS. Joseph S. Deno, 67, was ordered to serve 12 months and one day in prison, followed by 12 months of home confinement during a one-year term of supervised release. Deno has already paid full restitution to the IRS in the amount of $905,261, for unpaid income taxes, plus interest and penalties. In addition, Deno was ordered to forfeit $190,700 of structured funds to the government. U.S. District Judge Michael P. McCuskey advised Deno to report on May 21, 2014, to the federal Bureau of Prisons to begin serving his prison sentence.
Deno pled guilty on Sept. 6, 2013, to six counts of filing false income tax returns and one count of structuring. Deno, the sole shareholder, owner and operator of ABC Disposal, Inc., admitted that for tax years 2005 through 2010, he withheld financial records from his tax preparer. This resulted in under-reporting his company’s gross receipts and underpayment of his federal income taxes.
Deno also pled guilty to structuring cash withdrawals from three bank accounts over a one-year period, from March 2010 to March 2011. To avoid a Currency Transaction Report from being prepared by his bank and sent to federal authorities, Deno withdrew funds he had hidden from his accountant and the IRS in amounts just under the $10,000 threshold, for a total of $190,700. Financial institutions are required to complete and file CTRs with the IRS for any currency transactions in excess of $10,000.
The Internal Revenue Service, Criminal Investigation Division conducted the case investigation. Assistant U.S. Attorney Eugene L. Miller prosecuted the case.Springfield Engineer Pleads Guilty to Fraud ConspiracyRead the Press Release
Springfield, Ill. – A sentencing date has been set in July for a Springfield, Ill., engineer, Jeremy L. VanScyoc, who has pleaded guilty to participating in a scheme to defraud the Illinois Environmental Protection Agency. VanScyoc, 37, of the 400 block of Elle Court, waived indictment and pled guilty on Mar. 10, 2014, to an information filed by the U.S. Attorney’s Office charging him with one count of conspiracy to commit mail fraud. VanScyoc appeared before U.S. District Judge Sue E. Myerscough. Sentencing is scheduled on Jul. 21, 2014.
During court hearings and in court documents, VanScyoc admitted that after he joined Environmental Management, Inc. (EMI), in October 2001, he agreed to engage in a scheme to defraud IEPA. VanScyoc admitted his participation in the submission of false claims for reimbursement to IEPA through the Leaking Underground Storage Tank fund, known as the LUST fund, which is administered by IEPA. These false claims were submitted from October 2001 through Nov. 27, 2012, for services not rendered or not rendered to the extent claimed and false claims represented as ‘actual costs’ which in fact, were inflated in excess of the true cost of the product or services.
EMI, Inc. is an environmental consulting firm located at 1154 North Bradfordton Road, in Springfield. VanScyoc joined EMI in late October 2001 and obtained a small ownership interest in 2007. One of EMI’s primary business activities was the remediation of property contaminated by petroleum leaks from underground storage tanks.
In a separate but related case, in October 2013, a federal grand jury indicted three individuals who have served or currently serve as EMI officers: Eric M. Andrews; Joel C. Andrews; and Michael R. Keebler. According to the indictment, from at least 1997 until
September 2006, Joel Andrews was the president of EMI; in or about September 1999, Eric Andrews became an officer with EMI; and on or about Apr. 1, 2001, Keebler joined the firm and became an officer in 2003. On or about Sept. 30, 2006, Joel Andrews sold the business and Keebler became the majority owner and EMI president. The indictment charges the three men with one count of conspiracy to commit mail fraud and 10 counts of mail fraud.A status conference is scheduled on Apr. 28, 2014, for the three defendants. The indictment of Eric and Joel Andrews and Keebler seeks a personal money judgment against the three defendants, jointly and severally, of at least $13.6 million, which would represent the amount of the net proceeds obtained as a result of the alleged offenses.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
The U.S. EPA has a cooperative agreement with the state of Illinois in which IEPA and the Illinois State Fire Marshal regulate the use, maintenance and removal of petroleum underground storage tanks. The State Fire Marshal administers the preventative and permitting aspects of the program which regulates daily operation and maintenance of underground storage tank systems, including oversight for tank installation and removals. If there is a spill or leak from an underground storage tank, however, IEPA is responsible to oversee the cleanup investigation and to supervise the corrective action. IEPA also administers the state’s LUST fund. The State of Illinois imposes taxes and fees on gasoline sales which are added to the LUST fund to assist owners of contaminated sites to clean up the property.
During VanScyoc’s plea hearing and in court documents, VanScyoc admitted that on multiple occasions between Oct. 29, 2001, and Nov. 27, 2012, he agreed with others to submit fraudulent invoices to the IEPA LUST fund. These invoices were represented to be the ‘actual cost’ of work performed, when, in fact, the claims were in excess of the actual costs incurred by EMI or were otherwise inflated. VanScyoc further admitted that he created or modified invoices to make it appear as if invoices were submitted by subcontractors. These invoices exaggerated the work performed, the actual cost of the work, or both.
For the offense of conspiracy to commit mail fraud, the maximum statutory penalty is five years in prison, and a $250,000 fine or twice the amount of pecuniary gain or loss to the victim. For each count of mail fraud, the statutory penalty is up to 20 years in prison.
The charges are the result of an investigation by the U.S. Environmental Protection Service, Criminal Investigation Division, the Illinois Environmental Protection Agency and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Patrick D. Hansen.Bourbonnais Tax Preparer Charged with Filing False Income Tax Returns and with Aiding in the Preparation of False Income Tax Returns for OthersRead the Press Release
Urbana, Ill. – A Bourbonnais tax preparer, Robert J. DeAngelo, 62, of St. Pauls Drive, is scheduled to make his initial court appearance on Apr. 2, 2014, before U.S. Magistrate Judge David G. Bernthal in Urbana. A grand jury indicted DeAngelo last week on three counts of filing a false income tax return and 14 counts of aiding and assisting in the preparation of false income tax returns.
According to the indictment, DeAngelo operated a home office that provided tax services, including preparing and filing federal income tax returns for its clients. The indictment alleges that DeAngelo prepared and filed tax returns as a sole proprietorship, on behalf of himself and his wife, which understated gross receipts and overstated expenses for 2008, 2009, and 2010. DeAngelo allegedly claimed an adjusted gross income of $3,647 in 2008, when, in fact, his actual adjusted gross income was approximately $44,244. For 2009, DeAngelo allegedly understated his gross receipts by approximately $40,690, and claimed an adjusted gross income of $486.00. In 2010, DeAngelo allegedly falsely claimed an adjusted gross income of $346.00. As a result, for each return, DeAngelo qualified and claimed the earned income credit.
The indictment further alleges that for 2007 through 2010 tax years, DeAngelo created false employee business expense deductions for his tax return clients, without their knowledge. As a result, these tax returns provided larger refunds for DeAngelo’s clients, and resulted in an overall tax loss of approximately $50,193 to the United States.
The charges are the result of an investigation by Internal Revenue Service Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
If convicted, for each count of filing a false income tax return and for aiding and assisting in the preparation of false income tax returns, the statutory penalty is up to three years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Chicago Woman Convicted of Money Laundering, Making False Statements to Law Enforcement and Federal Grand JuryRead the Press Release
Springfield, Ill. – A jury in Springfield, Ill., deliberated for less than two hours this evening before returning guilty verdicts on all counts against Jeri L. Wright, 48, of Hazel Crest, Ill. Wright was convicted of money laundering, making false statements to federal law enforcement officers, and giving false testimony before a grand jury, related to an ongoing investigation of fraudulent use of Illinois Department of Commerce and Economic Opportunity grant funds. Sentencing is scheduled on July 7, 2014, before U.S. District Judge Sue E. Myerscough.
During the trial, which began on Mar. 4, the government presented evidence that Wright participated in a fraud scheme led by her friend, former Country Club Hills, Ill., police chief Regina Evans, and then repeatedly lied about her involvement to law enforcement and a federal grand jury.Evans is scheduled for sentencing on Mar. 24, 2014, after pleading guilty to wire fraud, money laundering, witness tampering, and obstruction of justice, 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 also pleaded guilty to the fraud scheme and is scheduled to be sentenced on Apr. 21, 2014. The grant agreement was purportedly to provide bricklaying and electrical pre-apprenticeship training and GED preparation, at the Regal Theater, another entity owned by the Evanses. In fact, little, if any, of the training provided in the grant agreement was ever completed.
“Jeri Wright chose to participate in the fraud, chose to receive and launder a portion of the proceeds of the fraud, and chose to repeatedly lie to law enforcement and a federal grand jury,” said Jim Lewis, U.S. Attorney for the Central District of Illinois. “If you take and misuse government money, and then lie about it, you will be held accountable in a court of law.”
U.S. Attorney Lewis further expressed his appreciation to the federal law enforcement officers assigned and the agencies who support the Central District of Illinois U.S. Attorney’s Office’s Public Corruption Task Force: Tony Gomez, Postal Inspector in Charge, U.S. Postal Inspection Service, Chicago Division; James Lee, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Chicago Field Office; and Jim Burns, Inspector General, 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.
At sentencing, the maximum statutory penalty for each of the counts against Wright is money laundering (two counts), up to 20 years in prison, and a fine of up to $500,000 or twice the value of the transactions, whichever is greater; and for making false statements to federal law enforcement officers (two counts) and giving false testimony before a grand jury (seven counts), the statutory penalty is up to five years in prison.
Davenport, Iowa Man to Serve More Than 11 Years in Prison for Conspiring to Import Synthetic EcstasyRead the Press Release
Rock Island, Ill. – A Davenport, Iowa man, Christopher B. Engelbrecht, 27, was sentenced to more than 11 years in federal prison yesterday for conspiracy to import a synthetic form of ecstasy, 4-MEC, also known as ‘shrimp.’ Engelbrecht was ordered to serve 135 months (11 years, 3 months) in prison followed by three years of supervised release. Engelbrecht has been in the custody of the U.S. Marshals Service since his arrest in October 2012.
On Sept. 16, 2013, Engelbrecht entered open pleas of guilty to the three charges alleged in the indictment returned in October 2012 by the grand jury: from August 2011 to October 12, 2012, conspiracy to import into the U.S. 4-MEC, a synthetic drug with properties and effects on users similar to ecstasy or MDMA; conspiracy to distribute and possession with intent to distribute 4-MEC; and on Sept. 7, 2012, attempt to import into the U.S. 4-MEC.
The charges resulted from an investigation by the Quad City Metropolitan Enforcement Group; the Moline Police Department and the Drug Enforcement Administration. The case was prosecuted by Supervisory Assistant U.S. Attorney John K. Mehochko.Jury Convicts Georgia Man for $5.5 Million Investment FraudRead the Press Release
Peoria, Ill. – Sentencing is scheduled in June 2014, for a Georgia man, after a jury convicted him of operating a fraud scheme that defrauded various investors of millions of dollars. The jury deliberated for less than one and one-half hours on Feb. 24, 2014, before finding Kenneth W. Lewis, 57, guilty of four counts of wire fraud and 11 counts of money laundering.
During five days of trial, which began on Tuesday, Feb. 18, 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.
At sentencing, scheduled on June 25, 2014, Lewis faces a statutory maximum penalty of up to 20 years in prison for each count of wire fraud and up to 10 years for each count of money laundering. Lewis has remained in law enforcement custody since his arrest in New Jersey in July 2012.
The charges were investigated by IRS Criminal Investigations and the U.S. Postal Inspection Service. Supervisory Assistant U.S. Attorney Darilynn J. Knauss and Assistant U.S. Attorney Bradley W. Murphy represented the government at trial on behalf of the Central District of Illinois, Peoria Division.
Jury Convicts Macoupin County Man for Possession of Heroin with Intent to DistributeRead the Press Release
Springfield, Ill. – Sentencing is scheduled in June 2014, for a Mt. Olive, Ill., man, after a jury convicted him of possession of heroin with intent to distribute. The jury deliberated for approximately 30 minutes on Feb. 20, 2014, before finding David L. Simpson, 51, guilty.
During the trial, which began on Monday, Feb. 18, and in pre-trial hearings, the government presented evidence that established that Simpson traveled to St. Louis to pick up heroin three to four times a day from at least April to mid-June 2013, totaling more than 100 grams. Evidence further established that Simpson brought the heroin to Mt. Olive and distributed the heroin to customers in Litchfield, Mt. Olive, Staunton, and Wilsonville, Ill.
At sentencing, scheduled on June 9, 2014, at 10:00 a.m., Simpson faces a statutory maximum penalty of 30 years in prison because the government has filed notice that Simpson has a prior felony drug conviction from 2011 in Will County, Ill. Simpson has remained in law enforcement custody since his arrest in June 2013.
Law enforcement agencies participating in this investigation include the DEA, Springfield Division; the Mt. Olive Police Department; and task force officers assigned to DEA by the Illinois Attorney General’s Office and the FBI. The Litchfield Police Department and the Illinois State Police also provided assistance in the investigation. Assistant U.S. Attorney Timothy A. Bass is prosecuting the case in the Central District of Illinois, Springfield Division.
Jury Convicts Paxton, Ill. Man for Running Large-Scale Cocaine Trafficking Network in Central IllinoisRead the Press Release
Urbana, Ill. – A jury has found a Paxton, Ill., man, Eddi Ramirez, 32, guilty of running a cocaine trafficking network that regularly distributed large quantities of cocaine throughout central Illinois including Decatur, Springfield and Champaign. The jury deliberated approximately one and one-half hours yesterday afternoon before finding Ramirez, aka "Migo," guilty of conspiring with others to distribute cocaine and distribution of cocaine.
During the seven days of trial, the evidence the government presented included that obtained from a court-authorized wiretap of seven of Ramirez’s telephones, the seizure of approximately $855,716 in cash; nearly nine kilograms (nearly 20 pounds) of cocaine seized in Springfield, Elgin and Houston, Texas; and approximately three kilograms (six pounds) of heroin. That evidence established that Ramirez led a drug organization, from 2011 to September 2012, that was responsible for the importation of more than 200 pounds of cocaine from Mexico.
Evidence further established that Ramirez used multiple sources in Texas, Arizona and Chicago, various couriers to transport the cocaine to central Illinois, and then provided the cocaine, valued at more than $3 million, to dealers in central Illinois. Government evidence also established that Ramirez used a house at 76 E. Court Drive, in Decatur, Ill., as a ‘stash’ house to store and package cocaine and to move drug money.
Sentencing for Ramirez is scheduled for May 21, 2014. Ramirez faces a statutory mandatory minimum penalty of 20 years to life in prison because the government has filed notice that Ramirez has a prior felony drug conviction. Ramirez has remained in law enforcement custody since his arrest in September 2012.In total, 19 defendants have been charged for their ties to Rameriz and his operation. All the defendants, except three who remain fugitives, have previously entered pleas of guilty for their respective roles in the trafficking network or their relation to it. A list of those defendants is attached.
Known as "Operation Tres Ciudades (Three Cities,)" the Organized Crime Drug Enforcement Task Force (OCDETF) was led by the Drug Enforcement Administration, Springfield Resident Office. Law enforcement agencies participating in this investigation include the FBI, Springfield Division; Decatur Police Department; Springfield Police Department; the Illinois State Police, the Central Illinois Enforcement Group; the Illinois Attorney General’s Office; and, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The U.S. Immigration and Customs Enforcement Homeland Security Investigations also provided assistance in the investigation. Assistant U.S. Attorney Timothy A. Bass is prosecuting the cases in the Central District of Illinois, Springfield and Urbana Divisions.
“Law enforcement, especially DEA, FBI, the Illinois Attorney General’s Office, and the Decatur Police Department, devoted significant resources and tireless work toward this successful prosecution,” said Jim Lewis, U.S. Attorney for the Central District of Illinois. “Their hard work and teamwork over the past few years has shut down a major pipeline that pumped volumes of illegal drugs into our community. They truly served the community.”
Special Agent in Charge Jack Riley, DEA, Chicago Division, praised the hard work and dedication of all the law enforcement officers and prosecutors who worked tirelessly to bring this case to a successful conclusion. "The conviction of Eddi Ramirez sends a clear message that the law enforcement community will use every legal means available to bring those who traffic narcotics to justice. Our top priority is dismantling these drug trafficking organizations who peddle their poison in our communities. Our joint efforts in this investigation have made a real impact on the supply of drugs in Central Illinois," he added.
Decatur Police Chief Todd Walker said, “The conviction of Eddi Ramirez demonstrates yet again the importance and value of local and federal law enforcement authorities working together. I appreciate the work of the investigators and the prosecutor who worked diligently to expose and shut down a major narcotics trafficking organization. This was a complex investigation that transcended state lines, into Decatur and central Illinois. As a result of these efforts, the local drug trade in our region was disrupted and the quality of life improved for those jurisdictions impacted by this substantial drug organization.”
David A. Ford, Special Agent in Charge, FBI Springfield, stated, “The Organized Crime Drug Enforcement Task Force (OCDETF) program was established to mount a comprehensive attack against organized drug trafficking. The guilty verdict in this international drug trafficking case demonstrates the strong working partnership between federal and local law enforcement agencies and shows the effectiveness of working together on the same team. We are committed to pursuing violent drug traffickers in order to keep our neighborhoods safe for our citizens.”
“This successful prosecution has significantly slowed the flow of these illegal drugs into Illinois, said Illinois Attorney General Lisa Madigan. “My office’s investigators will continue to work closely with our federal law enforcement partners to crack down on the drug trade in our communities.”Kankakee Area Father, Son Plead Guilty to $1.7 Million Bank Fraud SchemeRead the Press Release
Urbana, Ill. – Sentencing has been scheduled for May 16, 2014, for Bourbonnais, Ill., businessman Gregory Yates, 54, and his son, Terrance Yates, 32, who yesterday entered pleas of guilty to defrauding a federal business loan program of $1.7 million. Both appeared yesterday afternoon before U.S. Magistrate Judge David G. Bernthal in Urbana. Gregory and Terrance Yates each pled guilty to one count of conspiracy to commit bank fraud. In addition, Terrance Yates pled guilty to one count of money laundering. Both defendants were allowed to remain on bond.
At the time of the fraud, from April 2009 to July 2011, Gregory Yates was the president and chief executive officer of Quality Concepts, LLC; his son, Terrance, was the chief financial officer. Gregory Yates also owned and operated QC Manufacturing, LLC, and Champion Development, LLC, a construction company. Terrance was the chief financial officer and vice-president of operations for Champion Development, LLC. For each company, the principal office location was 1475 Harvard Drive, Kankakee, Ill.
In court proceedings and according to court documents, in May 2009, Gregory Yates, doing business as QC Manufacturing, LLC, purchased a manufacturing facility, tools and equipment, owned by Casey Tool and Machine, at 400 West Delaware Ave., Casey, Ill. At the time of the purchase, Casey Tool and Machine was in bankruptcy. Prior to its bankruptcy, Casey Tool and Machine was owned by Gregory Yates’ brother, Jim Yates.
In November 2009, QC Manufacturing, LLC, applied for and was subsequently awarded a Business and Industry Loan through the U.S. Department of Agriculture, Office of Rural Development. Although the $5.95 million loan was processed through Country Bank of Aledo, the loan guarantee was funded by the USDA using money allocated through the American Recovery and Reinvestment Act.
Gregory Yates admitted that, as part of the loan application, he submitted a letter stating that he intended to use the $5.95 million USDA loan to purchase a vacant manufacturing facility in Casey, Ill., tools and equipment to operate within the facility, and start up working capital for initial cash and inventory. The letter represented that the facility would be used to produce and distribute precision lighting equipment and he estimated that more than 200 new jobs would be created. The loan application included a budget of $1.7 million to perform construction and improvements on the Casey facility.
Although the bank approved the loan, including the renovation budget, QC Manufacturing, LLC was required to complete the work for which it was requesting payment before Country Bank would fund any portion of the $1.7 million allocation. Gregory and Terrance Yates admitted that they agreed with each other to use only their own construction company, Champion Development, and no subcontractors, to perform the construction and improvements. By listing only their own construction company, the Yateses admitted they were able to falsely and substantially inflate the value of the labor or materials furnished by Champion Development, thereby drawing money from the USDA loan for work that was either never performed or was of lesser value than claimed on the contractor’s sworn statements provided to the bank. For example, Gregory Yates admitted he told employees of Champion Development to ‘simply spruce up’ the Casey facility to lower the cost of improvements.
Terrance, in agreement with Gregory Yates, admitted that fraudulent sworn statements and affidavits, signed by Terrance, were submitted to the bank claiming that Champion Development had performed work and supplied materials. Based on these fraudulent statements, the bank disbursed $1.7 million to QC Manufacturing. Of the $1.7 million disbursed, more than $1.3 million was transferred from QC Manufacturing to Champion Development and then transferred to other accounts.
At sentencing, the maximum statutory penalty for conspiracy to commit bank fraud is up to 30 years in prison. For money laundering, the maximum statutory penalty is 10 years in prison.
The charges were investigated by Internal Revenue Service Criminal Investigation; the U.S. Department of Agriculture Office of Inspector General; the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General; and the FBI. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Dowson Farms Pays $5.4 Million to Resolve False Claims Allegations Related to Farm Subsidy Payment LimitsRead the Press Release
Springfield, Ill. – A central Illinois family farm business, known collectively as Dowson Farms, based in Divernon, Ill., has paid $5,364,000 to the United States to resolve allegations that it conspired to avoid statutory caps on federal farm subsidy payments from 2002 through 2008, under terms of an out-of-court settlement announced today by the U.S. Attorney’s Office for the Central District of Illinois. The United States had alleged that Dowson Farms’ principal owners, John J. Dowson, John C. Dowson, Darrel Thoma, Amy D. Thoma, and Melissa D. Vorreyer, violated the False Claims Act by creating multiple entities, falsely claiming that these entities were actively engaged in farming separate and distinct from Dowson Farms. As a result, Dowson Farms’ owners allegedly received farm subsidies to which they were not entitled.
The settlement, reached out-of-court by the Dowsons and before the United States had initiated any action, is neither an admission of liability by the Dowsons nor a concession by the United States that its claims were not well founded. The settlement avoids the delay, uncertainty, inconvenience, and expense of protracted litigation that likely would have resulted from the United States’ claims. With the second of two equal payments received this week, the United States has released Dowson Farms’ principal owners from civil and administrative claims related to the operation of limited partnerships and participation by those partnerships and the Dowsons in U.S. Department of Agriculture farm subsidy programs from Jan.1, 2002, through Dec. 31, 2008.
“We are pleased with this favorable resolution of the government’s claims of misuse of farm subsidy programs,” stated U.S. Attorney Jim Lewis. “These programs are designed to help farmers withstand market price volatility and the intrinsic risks associated with farming from year to year. Any attempt to exploit the system to take more than one’s fair share is an improper use of government funds that erodes the public confidence in such programs and threatens their continued viability.”
The United States had alleged that the Dowsons evaded annual payment caps established by Congress to limit the amount of payment individuals can receive during a given crop year from farm subsidy programs, known as Direct Payments and Counter-Cyclical Payments. According to Farm Service Agency regulations, the Direct and Counter-Cyclical Payments Program provided payments to eligible producers on farms enrolled for the 2002 to 2007 crop years. While Direct Payments were tied to acreage bases and yields, Counter-Cyclical Payments provided support to counter the cycle of market prices as part of a safety net in the event of low crop prices.
Throughout this time period, Congress had established an annual limit for each qualified participant in the program. In particular, Congress permitted an individual to receive payments on up to three entities. Under what is known as the “Three Entity Rule,” no person may receive payments subject to these rules from more than three entities in which the person held substantial beneficial interest. If an individual received payments as an individual, he or she could not also receive payment from more than two entities that receive payment as a separate ‘person.’ Using this provision, along with other regulations, an individual was effectively allowed to receive payments to himself and on behalf of up to two additional entities in which the individual held up to a 50 percent interest.
According to the United States, the Dowsons allegedly created multiple limited partnerships for the apparent purpose of concealing the interests of John Dowson, his son, Chris Dowson, and John’s son-in-law, Darrel Thoma, in the entities’ farming operations. For the multiple limited partnerships established by the Dowsons, on paper, 98 percent of the purported ownership was held by various employees, including farm hands and other straw men, while the Dowsons retained only a two percent interest. The United States had asserted that the limited partners contributed nothing to establish their ownership interest and none had any authority to conduct business on behalf of their respective partnership. Meanwhile, again according to the United States, the Dowsons wholly controlled the partnerships’ finances and commodity sales. Farm Service Agency regulations specifically prohibit a person from adopting a scheme or device designed to evade the payment limitations or that has the effect of evading the payment limitations. According to the United States, the creation and use of these limited partnerships, at a minimum, had the effect of evading payment limitations.
The agreement was negotiated by First Assistant U.S. Attorney Eric I. Long on behalf of the U.S. Attorney’s Office for the Central District of Illinois and the U.S. Department of Agriculture.
Central Illinois Farmer, Former Elevator Manager Sentenced to Prison for Fraud SchemeRead the Press Release
Peoria, Ill. – A central Illinois farmer, Robert James Printz, 46, of Fairbury, Ill., and Timothy Boerma, 37, a former manager of Towanda Grain Company, were sentenced today for their respective roles in a scheme to defraud the elevator, Printz’s creditors, and others. Chief U.S. District Judge James E. Shadid ordered that Printz serve 121 months (10 years, 1 month) in federal prison and pay restitution in the amount of $7,038,537; Boerma was sentenced to 72 months (6 years) in federal prison and ordered to pay restitution in the amount of $6,730,594. Both men were given Apr. 15, 2014, to report to the federal Bureau of Prisons to begin serving their prison sentence. Following completion of their prison terms, both defendants were ordered to remain on supervised release for five years.
According to court documents, Printz farmed in central Illinois as Printz Farms. Boerma, of Lincoln, Ill., was employed at Towanda Grain and became manager of the elevator in April 2009. The Towanda Grain board of directors discharged Boerma from his position on May 10, 2010, the same date that the Illinois Department of Agriculture suspended Towanda Grain’s license. The Department of Agriculture later helped facilitate the sale of Towanda Grain to Evergreen FS.
On May 30, 2013, Printz and Boerma entered pleas of guilty for their respective roles in the fraud scheme. Printz pled guilty to one count each of wire fraud and money laundering related to his scheme to defraud CNH, which had extended lines of credit to Printz for operating expenses. Boerma pled guilty to one count of wire fraud.
Under terms of the plea agreement, Printz agreed to forfeit to the government a 2010 Lincoln Navigator, diamond jewelry, two Rolex watches, and a 5th wheel camper. The government dismissed forfeiture allegations regarding real estate known as: 22232 East 2750 North Rd, Lexington, Ill., 20952 E. Road, Anchor, Ill., 207 Walcrest Drive, Fairbury, Ill., 25386 Arrowhead Lane, Hudson, Ill., 19990 E 260 North Road, Fairbury, Ill., and, 162 acres of farmland in Fairbury, Ill.
Printz and Boerma pled guilty to their participation in a fraud scheme that defrauded CNH Capital, which provided Printz with a line of credit for his farming operation; Towanda Grain, and others from September 2009 to May 2010. In October 2009, at about the same time that Printz reached the maximum on his 2009 line of credit, he began to deliver grain to Towanda Grain, an elevator he had disclosed as a possible grain purchaser under his security agreement with CNH. Boerma, the Towanda Grain manager, handled the transactions with Printz, and issued grain advance checks payable only to Printz, in violation of the CNH security agreement.
From October 2009 to about January 2010, Printz admitted that he continued to obtain advances from Boerma, at more than twice the value of the grain Printz delivered. From October 2009 to April 2010, Printz received a total of approximately $13.1 million from Towanda Grain. Printz subsequently made repayments to Towanda Grain of approximately $6.1 million. To conceal funds from CNH, Printz misrepresented to his accountants the nature of the transactions and the amount of funds received.
Boerma admitted that he acted contrary to the terms of the loan agreement between Towanda Grain and CoBank, a secured lender of Towanda Grain, in making loans and advances to Printz. To conceal the payments to Printz, Boerma made false entries in the records of Towanda Grain and provided false statements to CoBank.
The charges resulted from an investigation by Internal Revenue Service Criminal Investigations; the U.S. Postal Inspection Service; and the Illinois Department of Agriculture. The case was prosecuted by Supervisory Assistant U.S. Attorney Darilynn J. Knauss and Assistant U.S. Attorney Bradley W. Murphy.Southeastern Illinois Man Enters Guilty Plea, Sentenced for Misdemeanor Trespass and Damage to PropertyRead the Press Release
Springfield, Ill. – A southeastern Illinois man, Jordan L. Clark, 23, of Marshall, Ill., appeared in federal court this afternoon and pled guilty to misdemeanor charges of trespassing and damage to property of the National Park Service on Jan. 18, 2014. U.S. Magistrate Judge Byron Cudmore sentenced Clark to time served and ordered that Clark pay restitution in the amount of $3,000.
Clark, who was living temporarily in the 800 block of North 6th Street, in Springfield, was charged in an information filed today by the U.S. Attorney’s Office. Clark admitted that on Jan. 18, 2014, he trespassed upon property of the National Park Service, specifically the Abraham Lincoln Home, and that he caused damage to the property by forced entry and damage to interior structures causing flooding. Clark was arrested on Jan. 18, on the property of the National Park Service.
The National Park Service investigated the incident. The government was represented by Assistant U.S. Attorney John E. Childress.
Central District of Illinois’ U.S. Attorney’s Office Collects $11.5 Million in Criminal & Civil Actions in FY 2013Read the Press Release
Springfield, Ill. - U.S. Attorney Jim Lewis announced today that the Central District of Illinois collected $11.5 million for taxpayers in criminal and civil actions in fiscal year 2013. Of this amount, $1,535,380 was collected in criminal actions by the Central District alone; an additional $2,600,849 was collected in criminal actions by the District with other Department of Justice entities. In civil actions, the District collected $3,963,535 alone, and another $3,400,000 with other DOJ entities.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“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.”For just one example, the Central District recovered $1,199,629 in delinquent taxes and $2,596,194 in restitution for victims of a bank fraud and money laundering case relating to Bloomington-based Wildwood Industries, Inc., and defendants Gary and Toni Jo Wilder.
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 $528,000 in asset forfeiture actions in FY 2013. 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.
Mattoon Man to Serve More Than 16 Years in Prison for Child PornographyRead the Press Release
Urbana, Ill. – U.S. District Judge Michael P. McCuskey today ordered a Mattoon, Ill., man, Joseph W. Hoult, 27, to serve 200 months (16 years, 8 months) in federal prison for distribution, receipt and possession of child pornography. Judge McCuskey further ordered that Hoult remain on supervised release for the rest of his life following his release from prison. Hoult will also be required to register as a sex offender.
Hoult, previously of the 2900 block of Shelby Ave., has remained in the custody of the U.S. Marshals Service since his arrest in June 2012 in Alaska. A federal criminal complaint was filed against Hoult in July 2012, and a grand jury returned a 13-count indictment in August charging Hoult with six counts of receiving and six counts of distribution of child pornography, as well as one count of possession of child pornography, on various dates in 2012. On June 21, 2013, Hoult pled guilty to all the charges against him as charged in the indictment.
The charges were investigated by the Mattoon Police Department; U.S. Immigration and Customs Enforcement Homeland Security Investigations; and the East Central Illinois Cyber Crimes Working Group.
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.
Jury Convicts Normal Illinois Man for Crack Cocaine and Marijuana Distribution ConspiracyRead the Press Release
Peoria, Ill. – A Normal, Ill., man, Richard George Martin, 34, faces mandatory life in prison following his conviction today in federal court in Peoria. Trial in the case began on Monday, Dec. 2, 2013. The jury deliberated for approximately three hours before finding Martin guilty of conspiracy to distribute and possess with the intent to distribute at least five kilograms of cocaine and 50 kilograms of marijuana from 1999 to 2011.
Martin’s conviction is the latest 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, and was joined at trial by Assistant U.S. Attorney John H. Campbell. 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.
Martin is scheduled to be sentenced on Apr. 7, 2014, before U.S. District Judge Michael M. Mihm. Martin remains detained in the custody of the U.S. Marshals Service.
Menard County Man Arrested, Charged with Drug and Gun OffensesRead the Press Release
Springfield, Ill. - A Menard county man, Charles Brackhan, 40, of Greenview, Ill., made his initial appearance in federal court this morning following his arrest last night on federal drug and gun charges. Brackhan appeared before U.S. District Sue E. Myerscough, and was ordered to remain in the custody of the U.S. Marshals Service pending a detention hearing scheduled on Dec. 10, 2013. A trial date has been set for February 4, 2014. The four-count indictment against Brackhan was returned by a grand jury last month, but had remained sealed pending Brackhan’s arrest and initial court appearance.
The indictment alleges that on Mar. 19, 2013, Brackhan was manufacturing 50 or more marijuana plants at a home on Sweetwater Avenue in rural Greenview, Ill. Further, the indictment alleges that Brackhan discharged a firearm, a Keltec 9mm handgun, in furtherance of a drug trafficking crime, and that he was a controlled substance user in possession of a handgun.
If convicted, for the offense of manufacture of 50 or more marijuana plants (one count) and for using or maintaining a building for the purpose of manufacturing marijuana (one count), the penalty is up to 20 years in prison. For discharging a firearm in furtherance of a drug trafficking crime, the penalty is a mandatory minimum 10 years in prison and up to life in prison which must be served consecutive to any other penalty. For possession of a firearm by a controlled substance user, the penalty is up to 10 years in prison.
The charges are the result of an ongoing investigation by the Illinois State Police; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and, the Menard County Sheriff’s Office, with the assistance of the Greenview Police Department and the Athens Police Department. Assistant U.S. Attorney Bryan D. Freres is prosecuting the case in the Central District of Illinois, in coordination with the Menard County State’s Attorney’s Office.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Federal Grand Jury Charges Christian County Man with Sexual Exploitation of A MinorRead the Press Release
Springfield, Ill. – A federal grand jury has returned an indictment charging a former Taylorville school bus driver, James Marshall Owens, 43, of Owaneco, Ill., with two counts of sexual exploitation of a minor and one count of receiving child pornography. The indictment, returned yesterday, also seeks criminal forfeiture of various computers and a telephone belonging to Owens.
The indictment alleges that for each of the two counts of sexual exploitation of a minor, Owens enticed individuals under the age of 18 to engage in sexual activity for which a person could be charged with a criminal offense. The indictment alleges that Owens committed the offenses from about Aug. 16, 2012, to May 23, 2013, and from about December 2012 to February 2013. Further, the indictment alleges that Owens received child pornography on or about May 27, 2013.
If convicted, the statutory penalty for each count of sexual exploitation of a minor is a mandatory minimum of 10 years in prison and up to life in prison. For receiving child pornography, the penalty is five to 20 years in prison. The defendant may also be ordered to remain under supervised release for life following any term of imprisonment.
The charges are being investigated by the Federal Bureau of Investigation, the Illinois State Police, and the Christian County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Gregory K. Harris with the cooperation of the Christian County State’s Attorney’s Office.Owens was previously charged in state court following his arrest in May 2013, and has remained in the custody of law enforcement since his arrest. A date for Owens to make his initial appearance in federal court will 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.
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.
Mahomet Man Sentenced to 15 Years in Prison for Child PornographyRead the Press Release
Urbana, Ill. – A Mahomet, Ill., man, Michael L. Denight, 59, has been ordered to serve 15 years in federal prison for photographing minor-aged victims and possession of child pornography. U.S. District Judge Michael P. McCuskey sentenced Denight on Nov. 25, 2013. Denight was also ordered to remain on supervised release for the remainder of his life following completion of his prison sentence. Denight has been detained in the custody of the U.S. Marshals Service since his arrest on federal charges in early 2012.
On May 17, 2013, Denight pled guilty to six counts of sexual exploitation of a minor and one count of possession of child pornography. Denight admitted that he had video-recorded minors in the bathrooms of his home beginning in 2000 and continuing through 2007.
According to court documents, the investigation began after a customer at a Champaign coffee shop reported to an employee that she believed there was a video recording device mounted in the ladies’ restroom. A man, later identified as Denight, was observed approaching the ladies’ restroom and then quickly leaving the coffee shop. When the customer and employee entered the restroom, the device was gone, and the man had left behind several personal items, including a cell phone, at the coffee shop. The cell phone was provided to the Champaign Police Department. At the time of his arrest, on Feb. 17, 2012, Denight was employed by the U.S. Army Corps of Engineers, Construction Engineering Research Laboratory, in Champaign.
The charges were investigated by the Champaign Police Department and the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI). The case was prosecuted by the U.S. Attorney’s Office, Central District of Illinois, Urbana Division, with the cooperation of the Champaign County State’s Attorney’s Office.
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.
Kankakee Man to Serve More Than 15 Years in Federal Prison for Attempted Bank Robbery and Possession of A Firearm by A FelonRead the Press Release
URBANA, Ill. -- A Kankakee man who admitted that he attempted to rob two Kankakee banks in the fall of 2012 has been sentenced. On Nov. 14, 2013, U.S. District Judge Michael P. McCuskey ordered Nevin L. Lenton, 26, to serve 188 months in federal prison (15 years, 8 months). On Jul. 9, 2013, Lenton entered pleas of guilty to the three counts against him: attempted bank robbery, attempted aggravated bank robbery, and possession of a firearm by a felon. Lenton has been in the custody of the U.S. Marshals Service since his arrest in October 2012.
According to court documents, Lenton admitted that he entered Peoples Bank in Kankakee, with a bandana around his face, on Sept. 17, 2012, and appeared to be brandishing a firearm. Lenton slipped and fell when he entered the bank, and when a bank security guard appeared and drew his service weapon, Lenton dropped the firearm and fled. The firearm was later determined to be a pellet gun.
A month later, on Oct. 22, 2012, Lenton told an unnamed individual that he planned to rob a bank in Kankakee. The next day, Lenton drove the individual to the residence of a Kankakee police officer and said that he had gone to the home earlier to break in and steal a firearm; however, because a light was on inside the house, he believed someone was home and he did not break in. Lenton then drove to Mainsource Bank in Kankakee and told the individual in detail how he planned to rob the bank.
When the individual reported Lenton’s plans to law enforcement, officers were able to introduce an undercover officer to Lenton. At Lenton’s request, the undercover officer met Lenton in Chicago on Oct. 25, 2012, and provided Lenton with two firearms. The undercover officer then agreed to accompany Lenton to Kankakee to assist with the robbery of Mainsource Bank. Once Lenton and the undercover officer arrived and parked within one block of the bank, officers arrested Lenton. At the time Lenton possessed the firearms, he had at least three prior felony convictions, including two burglary convictions and a robbery conviction.
The case was investigated by the Kankakee Area Project Safe Neighborhoods Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Kankakee Police Department. The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Springfield Man Sentenced to 14 Years in Prison for Receiving Child PornographyRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Ill., man, Kievan R. Walters, III, 24, was taken into the custody of the U.S. Marshals Service today immediately following his sentencing hearing for receiving child pornography. U.S. District Judge Sue E. Myerscough sentenced Walters, of the 900 block of North Indiana Avenue, Springfield, Ill., to 14 years in federal prison to be followed by 25 years of supervised release following completion of the prison sentence.
Walters pled guilty on Jul. 23, 2013, to one count of receiving child pornography in the fall of 2012.
The case was investigated by the U.S. Immigration and Customs Enforcement Homeland Security Investigations. Assistant U.S. Attorney Gregory K. Harris prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Peoria Real Estate Developer to Serve Two Years in Prison for Fraud SchemeRead the Press Release
Springfield, Ill. – Former Peoria, Ill., real estate developer Shara Andrews, now of Mobile, Ala., was sentenced today in Springfield. Andrews, 40, formerly known as Shara Manning, was ordered to serve 24 months in prison and pay restitution in the amount of $598,536 to various real estate buyers and the bank. Andrews was ordered to report to the federal Bureau of Prisons on Jan. 1, 2014, to begin serving her prison sentence. Andrews was also ordered to remain on supervised release for five years following completion of her prison term.
On Feb. 13, 2013, Andrews entered pleas of guilty to a single count each of bank fraud and money laundering. At the time of the fraud, Andrews was the owner and operator of Shara Manning Properties (SMP), a real estate development and construction company based in Peoria.In court documents and statements, Andrews admitted that in November 2004, she purchased, on behalf of her company, a residential development property in Peoria known as the Wyndhill Estates subdivision. To finance the purchase, Andrews obtained a bank loan of $895,000. In March 2005, Andrews obtained a second loan from the bank for $670,000 for development of the subdivision. The two loans were later consolidated into a single loan of approximately $1,453,000, which was secured by the Wyndhill Estates Project real estate.
Andrews’ firm was the developer and general contractor for the project. From August 2006 to January 2009, Andrews sold lots, ranging in price from $80,000 to $300,000, to various real estate buyers and then served as the general contractor for construction of the buyers’ homes. As part of the bank’s loan agreement and to obtain a release of the mortgage from the bank, Andrews was required to make payment to the bank when an individual lot was sold. The release of the mortgage from the bank was also necessary to fulfill Andrew’s obligation to provide clear title to the real estate buyers.
Andrews admitted that she converted money to her personal use and that of her company, rather than repaying the bank as required and ensuring clear title to the buyers. As part of the fraud scheme, Andrews wrote a check, which she knew would bounce due to insufficient funds, to the bank for release of a mortgage, and then converted the proceeds from the lot’s sale to her and her company’s use. Andrews submitted fraudulent lien waivers from subcontractors and suppliers to real estate buyers to cause the buyers to release funds to her. Those funds were then converted to her personal use and to the use of SMP.
The charges were investigated by the Internal Revenue Service Criminal Investigation Division and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Timothy A. Bass.
# # # #Alleged “Zone 4” Gang Members Charged in Peoria’s “Don’t Shoot” Anti-Violence InitiativeRead the Press Release
Peoria, Ill. – This afternoon, 12 more alleged members of a rival Peoria street gang, known as “Zone 4,” are to appear in court on federal charges in the second round-up under the “Don’t Shoot” anti-violence strategy. One year ago, 12 members of the “Bomb Squad” were the first to face similar federal charges in Peoria’s “Don’t Shoot” anti violence strategy.
U.S. Attorney Jim Lewis, Central District of Illinois, and Peoria Mayor Jim Ardis were joined by representatives of local and federal law enforcement agencies, along with others working in support of the ‘Don’t Shoot’ initiative, to announce the indictment. The ongoing investigation is being conducted by the Peoria Police Department and the FBI Safe Streets Task Force. The case is being prosecuted in the Peoria Division of the U.S. Attorney’s Office by Assistant U.S. Attorney K. Tate Chambers.
The indictment was returned by the grand jury last week and sealed pending the arrest of several defendants this past weekend. Those charged are: Alan Fitzpatrick, 34; Aeiral Yarbrough, 25; Daryl McGee, 24; Sam Carpenter, 24; Willie Breedlove, 22; Michael Costic, 24; Shawn Joiner, 28; Jermaine Jones, 30; Deonta White, 24; Tyrell Logan, 26; Robert Nathan, 25; and, Tristan Shelton, 23, all of Peoria, Ill.
The indictment alleges that the 12 men are members and associates of a drug trafficking and violent criminal street gang, as defined by federal criminal statute; that the defendants engaged in a conspiracy to use, carry and possess firearms in relation to and to further a drug conspiracy; and, that they conspired to possess with intent to distribute and to distribute controlled substances, including cocaine, crack cocaine, heroin and marijuana, from about 2005 to the present.
The indictment alleges that “Zone 4,” and its associated subgroups, the “P-Stones” and “4 Corner Hustlers,” operated as a criminal street gang, an ongoing group or association of five or more that has as one of its primary purposes the commission of one or more criminal offenses, including conspiracy to distribute controlled substances, whose members were engaged within the past five years in a continuing series of offenses and the activities affected interstate commerce.
According to the indictment, from 2005 to the present, “Zone 4” and its subgroups, functioned as a continuing unit for a common purpose to achieve the gang’s objectives: acquiring money and other things of value through the trafficking and distribution of drugs, including cocaine, crack cocaine, heroin and marijuana, and committing acts of violence, including murder, attempted murder, armed robbery, carrying and using firearms, and possession of firearms.
Violent acts were allegedly committed, among other purposes: to protect the gang’s territory from encroachment by other gangs to allow associates and members to freely engage in criminal activities, including distribution of controlled substances; to enrich its members by acquiring cash, guns, drugs, and other property; to enforce discipline and loyalty among the gang; to protect the gang from retaliation by others as well as detection, apprehension and prosecution by law enforcement; and to promote and enhance the reputation and standing of the gang, its members and associates.
If convicted, for conspiracy to use, carry, and possess firearms in relation to and in furtherance of a drug conspiracy, the statutory penalty is up to 20 years in prison. For the offense of conspiracy to possess with intent to distribute and to distribute controlled substances, the penalty is five to 40 years in prison; if a defendant has one or more prior felony drug convictions, the enhanced statutory penalty is 10 years to life in prison.
If convicted as a member of a criminal street gang, defendants Fitzpatrick, Yarbrough, Carpenter, Joiner, White, Nathan, and Shelton, face enhanced sentencing penalties of up to 10 years in prison in addition to any other prison term, because, according to the indictment, each has been convicted within the past five years of requisite offenses to be subject to the penalty provision of this federal statute.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent until proven guilty.
Indianapolis Attorney to Serve 10 Years in Prison for Defrauding ClientsRead the Press Release
INDIANAPOLIS – Chief U.S. District Judge Richard L. Young today sentenced Indianapolis attorney William F. Conour to 120 months (10 years) in federal prison for defrauding his clients of more than $4.5 million over more than a decade. Conour was ordered to pay over 6.7 million dollars in restitution to his victims.
On July 15, 2013, Conour entered an open plea of guilty to the scheme as charged. He has been in the custody of the U.S. Marshals Service since his bond was revoked on June 27, 2013. At that time, Judge Young granted the government’s motion to revoke bond after finding that Conour had breached the conditions of his bond when he dissipated assets without prior consent by the government.
Today’s sentence was announced by Jim Lewis, U.S. Attorney for the Central District of Illinois, and Robert A. Jones, Special Agent in Charge, FBI, Indianapolis Division.
According to court documents and statements made in court, from 1999 and continuing through April 2012, Conour kept a majority of his clients’ settlement proceeds for his own use and benefit. Most of Conour’s law practice was devoted to representing clients who had suffered serious injuries or death caused by construction site accidents, automobile collisions, and accidents resulting in traumatic brain injury. Instead of depositing the full amount of client settlements into client ‘trust’ accounts, Conour provided funds only sufficient to enable the client to receive monthly payments for a year. Further, Conour used newly obtained settlement funds to pay old settlements and debts.
The U.S. Attorney’s Office for the Southern District of Indiana has been recused in this matter. The U.S. Attorney General appointed the Central District of Illinois to handle the case prosecution. The government was represented by Assistant U.S. Attorney Jason M. Bohm, Central District of Illinois, Urbana Division.
The Federal Bureau of Investigation, with assistance provided by the Indiana State Police, conducted the investigation.
Former Director and Treasurer of Chicago Black Nurses Association Sentenced for Fraud SchemeRead the Press Release
Springfield, Ill. – Both a former program director and treasurer of the Chicago Chapter of the National Black Nurses Association have been sentenced to prison terms for their respective roles in a scheme that defrauded state grant programs of at least $377,573, from 2005 to 2009. On Oct. 8, 2013, U.S. District Judge Sue E. Myerscough sentenced Margaret A. Davis, former association director, to 41 months (3 years, 5 months) in prison and ordered that Davis pay restitution in the amount of $377,573. On Oct. 15, 2013, Tonja Cook, former treasurer, was sentenced to 19 months (1 year, 7 months) in prison and to pay restitution in the amount of $137,111. Both women were ordered to report to the federal Bureau of Prisons on Jan. 2, 2014.
Davis, 62, pled guilty on Feb. 27, 2013, to mail fraud and money laundering in the scheme that defrauded state grant programs from 2005 to 2009. Cook, 46, pled guilty on Nov. 26, 2012, to one count of mail fraud for her role in assisting Davis in the scheme.
In court documents and during Davis’s sentencing hearing, the government presented evidence that established that Davis, with Cook’s assistance, commingled and converted a substantial amount of grant funds to her personal use, to the use and benefit of her family and friends, and to the use and benefit of public officials and political organizations. Davis also used grant funds to support a not-for-profit healthcare advocacy organization known as the African American Aids Network, which Davis controlled. Cook also received some funds which she used for her personal expenses and benefit.From December 2005 to June 2009, Davis solicited and received 15 different grants and contracts totaling $1,062,000 on behalf of the Chicago Chapter of the Black Nurses Association from Illinois state agencies including the Department of Commerce and Economic Opportunity; Department of Public Health; Department of Human Services; and the State Board of Education. The grants were purportedly to provide funds for numerous healthcare advocacy-related and nursing student assistance programs, including recruitment of 200 students from one Illinois senatorial district to participate in the “Young Enough to Make a Difference Project;” educational activities to promote public awareness of HIV/AIDS, breast and cervical cancer, prostate cancer, and pandemic flu; and, implementation of two nursing student internship programs.
Davis converted more than $200,000 in grant funds to cash at a currency exchange located near her residence. More than $100,000 in grant funds were made payable to her organization, the African American Aids Network, although Davis failed to disclose her interest in the organization to the State of Illinois, concealed the amount of grant and contract funds to be disbursed, and forged the name of a co-signatory on the organization’s bank account checks.
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.
Former State Corrections Accountant SentencedRead the Press Release
Springfield, Ill. – U.S. District Judge Sue E. Myerscough today sentenced Mary Ann Bohlen, 47, a former Illinois Department of Corrections employee, to serve 21 months in federal prison for embezzlement. Bohlen was also ordered to pay restitution of $27,174 to the Illinois Department of Corrections and $23,540 to the Illinois Correctional Employees Memorial Association. Bohlen was ordered to self-report to the federal Bureau of Prisons to begin serving her sentence on a date to be determined by the Bureau of Prisons.
Bohlen, of Edinburg, Ill., pled guilty in February 2013 to embezzlement from various department funds over a period of four years, from 2007 to 2011. Bohlen waived indictment and pleaded guilty to two counts of mail fraud and two counts of embezzlement of government funds as charged in an information filed by the U.S. Attorney’s Office for the Central District of Illinois.
According to court documents, Bohlen was employed from February 2004 until Feb. 15, 2012, as Assistant Deputy Director and Supervisor of Central Accounting for the Division of Fiscal Accounting Compliance. In her position, Bohlen had access to various financial accounts and funds including the Inmate Benefit Fund, Inmate Commissary Fund, and the Reimbursement and Education Fund. In April 2006, Bohlen became treasurer of the Illinois Correctional Employees Memorial Association, an organization of IDOC employees formed to recognize and memorialize IDOC employees who were killed or suffered permanent disability in the line of duty. Bohlen actively solicited employees to become members of the association, which was funded by membership fees, fundraisers and donations.
Bohlen admitted that from June 2007 to July 2011, she embezzled more than $50,000 from the Illinois Correctional Employees Memorial Association. From March 2008 to April 2011, Bohlen embezzled more than $27,000 from other various funds, including the Inmate Benefit Fund, Inmate Commissary Fund, and the Reimbursement and Education Fund, to conceal and replace the funds she had embezzled from the Memorial Association.
Bohlen admitted that she wrote more than $50,000 worth of checks drawn on the Memorial Associations’ bank account which were payable to herself, to cash, and to a business in Owaneco, Ill., where she was an employee, partner or accountant.
The charges were investigated by the Illinois State Police and the U.S. Postal Inspection Service. Assistant U.S. Attorney Gregory K. Harris prosecuted the case.
Marshall County Man Charged with Sexual Exploitation of A MinorRead the Press Release
Peoria, Ill. — A federal grand jury has returned an indictment that charges Brian A. Miller, 35, of Varna, Ill., with 25 counts of sexual exploitation of a minor. The indictment, returned late yesterday, also seeks the criminal forfeiture of Miller’s cell phone and data storage device, alleging that said items were used in the commission of the alleged offenses and that the equipment was manufactured and transported in interstate and foreign commerce.
Miller was previously arrested and charged with one count of the same offense in a criminal complaint filed Aug. 29, 2013. At a hearing on Sept. 9, before U.S. Magistrate Judge John A. Gorman, Miller waived his detention hearing and was ordered to remain detained in the custody of the U.S. Marshals Service.
The affidavit filed in support of the criminal complaint alleges that Miller used a cell phone to take images of minors from a hole in the wall of his home while the minors were using a shower. The indictment returned today alleges that from about Jan. 1, 2010 through June 16, 2012, on 25 occasions, Miller used minors to produce images of child pornography.
If convicted, the statutory penalty for sexual exploitation of a minor in the production of child pornography is not less than 15 years in prison and up to 30 years in prison. The offense also carries a term of supervised release of up to life following any term of imprisonment.
The charge is the result of an investigation by the U.S. Secret Service; the Marshall County Sheriff’s Office, the Peoria County Sheriff’s Office and the Bloomington Police Department. Assistant U.S. Attorney Kirk D. Schoenbein is prosecuting the case.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
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.
Local Chiropractor Pleads Guilty to Fraudulent Billing ClaimsRead the Press Release
Springfield, Ill. –Christopher Leone, owner of Leone Family Chiropractic, 1019 S. 6th Street, Springfield, Ill., today waived indictment and pleaded guilty to submitting fraudulent bills for services to private insurance companies and the Medicare program. Leone appeared today before U.S. Magistrate Judge Byron G. Cudmore. Sentencing is scheduled on Feb. 3, 2014, before U.S. District Judge Sue E. Myerscough. Leone has agreed to pay restitution in the amount of $48,624 on or before the sentencing hearing.
Leone, 41, is the owner of C.D. Leone Chiropractic, P.C., doing business as Leone Family Chiropractic. Leone was directly responsible and in control of the practice’s business aspects, including billing patients and the submission of claims for services to insurance companies, when the fraudulent claims were submitted. The business specializes in chiropractic treatment for the spine and nervous system and also offers other wellness treatments, including physical therapy.
Beginning in about 2005 to February 2011, Leone admitted he billed private insurance companies for a total of approximately $48,624 and the Medicare program for services specifically coded for physical therapy that required the physician or therapist have direct (one-on-one) patient contact. Leone admitted that neither he nor a therapist had direct patient contact, and in fact, the patients performed all physical therapy treatment on their own without any supervision by Leone or any other employee.
The Illinois State Police, Medicaid Fraud Control Bureau, and the Federal Bureau of Investigation conducted the investigation. The government is represented by Assistant U.S. Attorney Patrick D. Hansen.
For the offense of submitting false demands for payment against the United States of less than $1,000, the penalty is up to one year in prison and a fine of up to $100,000. The defendant may also be required to pay restitution to victims of the offense.
Former Logan County Bank President Sentenced to Prison for Bank EmbezzlementRead the Press Release
Ordered To Pay $562,293 Restitution to Bank
Springfield, Ill. – U.S. District Judge Richard Mills today ordered the former president of a Logan County bank, Bryson John Russell, 66, of Lincoln, Ill., to serve 30 months (2 ½ years) in federal prison for embezzling more than $500,000 from the Hartsburg State Bank. Russell was ordered to pay restitution to the bank in the amount of $562,293, and was ordered to self-report on a date to be determined by the federal Bureau of Prisons to begin serving his prison sentence. Russell was also ordered to remain on supervised for three years following his release from prison.
On Feb. 27, 2013, Russell waived indictment and entered a plea of guilty to a single count of embezzlement as charged in an information filed by the U.S. Attorney’s Office for the Central District of Illinois. Russell admitted that in 1992, he began taking cash from the bank to pay for personal items and obligations. Russell became bank president in 1989 and was a career employee, having begun work in 1966 at Hartsburg State Bank, Hartsburg, Ill.
At some point, to conceal his activity, Russell began creating bank loans in the names of various bank customers, including relatives. When the various loans were due, Russell created different, larger loans in relatives’ names and other bank customers’ names to pay off the loans, as well as to embezzle additional money. In addition, Russell admitted cashing a customer’s $15,000 certificate of deposit and applying the proceeds to a loan he had created in the customer’s name.
The charges were investigated by the Federal Bureau of Investigation in coordination with the Hartsburg State Bank. Assistant U.S. Attorney Patrick D. Hansen prosecuted the case.
Kankakee Businessman Enters Guilty Pleas to Filing False Tax Returns and StructuringRead the Press Release
Urbana, Ill. – The owner of ABC Disposal Inc., a Kankakee waste management company, has entered pleas of guilty to six counts of filing false income tax returns and one count of structuring cash withdrawals to avoid detection by the Internal Revenue Service. Joseph S. Deno appeared in federal court in Urbana on Friday, Sept. 6, 2013, and pled guilty before U.S. Magistrate Judge David G. Bernthal. Sentencing has been scheduled for Jan. 9, 2014.
During court proceedings and in documents filed with the court, Deno, the sole shareholder, owner and operator of ABC Disposal, Inc., admitted that from 2005 through 2010, in order to lower his individual gross income, he withheld financial records from his tax preparer. This resulted in under-reporting his company’s gross receipts by approximately $1.7 million for the tax years from 2005 through 2010, and underpayment of his federal income taxes.
Deno also pled guilty to one count of structuring cash withdrawals from three bank accounts on 22 occasions over a one-year period, from March 2010 to March 2011. In 2010, Deno decided to retire and wanted to access the funds he had hidden from his accountant and the IRS. To avoid a Currency Transaction Report from being prepared by his bank and sent to federal authorities, he withdrew cash from his accounts in amounts just under the $10,000 threshold, for a total of $190,700. Financial institutions are required to complete and file CTRs with the IRS for any currency transactions in excess of $10,000.
According to court documents, Deno has already paid full restitution to the IRS in the amount of $905,261, for unpaid income taxes, plus interest and penalties.
Each count of filing a false income tax return carries a penalty of up to three years in prison and fines of up to $100,000. For unlawful money structuring, the penalty is up to 10 years in prison. The government is also seeking a money judgment against Deno in the amount of $190,700.
The Internal Revenue Service, Criminal Investigation Division conducted the case investigation. Assistant U.S. Attorney Eugene L. Miller is representing the government in the prosecution of the case.Brother of Former Country Club Hills Police Chief Pleads Guilty to 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., appeared in federal court in Springfield today to enter pleas of guilty to one count each of money laundering and obstruction of justice in the federal investigation of a grant fraud scheme involving his sister. McCoy appeared this afternoon before U.S. District Judge Sue E. Myerscough in Springfield. Sentencing for McCoy is scheduled on Jan. 4, 2014.
McCoy was charged in March 2013, along with his sister, Regina Evans, 50. Regina Evans pled guilty last week, on Aug. 19, 2013, to obstruction of justice, witness tampering and conspiracy to obstruct justice and witness tampering. In addition, 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 also pleaded guilty to the fraud scheme and is scheduled to be sentenced on Dec. 2, 2013. Regina Evans is scheduled to be sentenced in both cases on Oct. 15, 2013.
McCoy, who assisted the Evanses in the management of We Are Our Brother’s Keeper, admitted that he engaged in money laundering related to the grant funds in November 2009. McCoy admitted that 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, and $17,888 of the check proceeds were deposited to a bank account controlled by the Evanses.
McCoy further admitted that he participated with his sister Regina, and others to have a person identified as Individual A 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, Individual A performed no such work and the checks issued to Individual A were merely a means to conceal grant funds converted to cash and returned to the benefit of the Evanses. The false story created for Individual A falsely represented that Individual A worked as a teacher under the grant, and instructed students on “soft skills,” to include manners, how to dress for an interview, how to groom themselves, how to behave in interviews and how to write a resume, when in fact, the story was false and intended to obstruct the investigation of the grant fraud.
At sentencing, the maximum statutory penalty for obstruction of justice and for money laundering is up to 20 years in prison.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.
Beardstown Man to Serve 12 ½ Years in Federal Prison for Methamphetamine Manufacturing ConspiracyRead the Press Release
Springfield, Ill. – Senior U.S. District Judge Richard Mills last week sentenced Clay Lewis, 38, of Beardstown, Ill., to 151 months (12 years, 7 months) in prison for conspiracy to manufacture methamphetamine, to be followed by eight years of supervised release. At the time of the offense, September 2012, Lewis was on probation for a prior state felony drug charge.
Lewis pled guilty on Apr. 23, 2013, to a single count of conspiracy to manufacture 50 grams or more of methamphetamine. In court documents and court hearings, Lewis admitted that on Sept. 14, 2012, when Illinois probation officers administered a drug test at his home, in the 200 block of Clay Street, there was an active meth lab in his garage along with various remnants of prior meth manufacturing activity as well as items commonly used to manufacture meth. Lewis admitted that he had frequently manufactured methamphetamine in his garage for a year, and that he used and sold the meth he cooked.
Lewis was arrested on Sept. 14, 2012, and has remained detained in the custody of the U.S. Marshals Service. Lewis was sentenced on Aug. 22, 2013.
On Sept. 19, 2013, Lewis’s co-defendant, Kyle Hogan, 30, also of the 200 block of Clay Street, Beardstown, Ill., is scheduled to be sentenced. On May 31, 2013, Hogan entered a plea of guilty to conspiracy to manufacture methamphetamine. Hogan has remained in the custody of the U.S. Marshals Service since his arrest, on Sept. 14, 2012.
The investigation was conducted by the Illinois State Police, the Beardstown Police Department, and the Drug Enforcement Administration with assistance from the Illinois Department of Corrections’ Probation Division. The case was prosecuted by Assistant U.S. Attorney Bryan D. Freres in cooperation with the Cass County State’s Attorney’s Office.
Former State Prison Guard to Serve 43 Years in Prison for Child Exploitation, PornographyRead the Press Release
Springfield, Ill. – U.S. District Judge Richard Mills this afternoon sentenced former Illinois correctional officer Steven L. Carson, of Hillsboro, Ill., to serve 520 months (43 years, 4 months) in federal prison, to be followed by a lifetime term of supervised release. Carson pleaded guilty in February 2013, to charges that he sexually exploited a minor, and that he distributed and possessed images of child pornography.
Carson has remained in the custody of the U.S. Marshals Service since his arrest in August 2012, when he was charged with distribution of child pornography in a federal criminal complaint. According to the affidavit filed in support of the complaint, the Sacramento, Ca. division of the FBI’s Cyber Crime Unit was conducting an undercover investigation of peer-to-peer file-sharing accounts in April 2012, when an undercover agent conducted a file sharing session with Carson. At the time, Carson was employed as a prison guard at Graham Correctional Center.
Carson was indicted by a grand jury, and on Feb. 21, 2013, pled guilty to three counts: sexual exploitation of a minor; distribution of child pornography; and possession of child pornography. Carson admitted that he used a child to perform sexually explicit conduct which he videotaped. Further, Carson admitted that he engaged in peer-to-peer file sharing of child pornography, including prepubescent boys; and that he possessed images of child pornography, including more than 2,300 images and 40 videos which agents recovered from Carson’s computers.
The charges were investigated by the FBI. The case was prosecuted by Assistant U.S. Attorney Gregory K. Harris.
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.
First of Two Bank Robbers Sentenced for Central Illinois Bank RobberiesRead the Press Release
Springfield, Ill. – A Logan County, Ill., man, Robert D. McKissic, 33, of Lake Fork, Ill., will serve nearly 12 years in prison for the armed robberies of two rural central Illinois banks. U.S. District Judge Sue E. Myerscough yesterday ordered that McKissic serve a total of 140 months (11 years, 8 months) in prison. McKissic was ordered to serve 119 months (9 years, 11 months) plus an additional, consecutive 21 months, because McKissic was under federal supervised release when the bank robberies were committed in September and October 2012. McKissic was further ordered to pay restitution in the amount of $46,977 to the banks.
McKissic pled guilty on Apr. 30, 2013, to committing armed bank robberies of the Bank of Chestnut, in Chestnut, Ill., on Sept. 17, 2012, and Kenney Bank and Trust, Kenney, Ill., on Oct. 24, 2012. McKissic’s co-defendant, Robert D. Allspach, 26, also of Lake Fork, Ill., pled guilty on Apr. 30, 2013, and is scheduled to be sentenced on Sept. 16, 2013.
The two men were charged in a federal criminal complaint in December 2012, and have remained in the custody of the U.S. Marshals Service since their arrest.
The investigation was conducted by the Federal Bureau of Investigation; Illinois State Police; the Logan County Sheriff’s Office; DeWitt County Sheriff’s Office; Sangamon County Sheriff’s Office; the Buffalo / Mechanicsburg Police Department; and the Office of the Illinois Secretary of State. Assistant U.S. Attorney Gregory K. Harris prosecuted the case.10 Years in Federal Prison for Bourbonnais Man for Distribution of Crack Cocaine in Kankakee CountyRead the Press Release
Urbana, Ill. – U.S. District Judge Michael P. McCuskey today sentenced Damos S. Rosenthal, 39, of Bourbonnais, Ill., to a term of 121 months in federal prison for distribution of crack cocaine.
On Apr. 8, 2013, Rosenthal pleaded guilty to distribution of 28 grams or more of crack cocaine in Kankakee on various occasions in October 2012. Rosenthal was arrested on Jan. 17, 2013, and has remained in the custody of the U.S. Marshals Service since his arrest.
A factor in Rosenthal’s sentence, who faced a mandatory minimum sentence of 10 years and up to life in prison, was two prior convictions for manufacture/delivery of cocaine: in 2002, Rosenthal was convicted in Kankakee County Circuit Court and sentenced to probation; in 2003, Rosenthal was again convicted for manufacture/delivery of cocaine, and was sentenced to serve five years in the Illinois Department of Corrections.
The case resulted from an investigation by the Kankakee Area Metropolitan Enforcement Group (KAMEG), with assistance from the Kankakee County State’s Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Ronda H. Coleman.
Jacksonville, Il Man Charged with Methamphetamine OffensesRead the Press Release
Springfield, Ill. – A Jacksonville, Ill., man, James Trotter, 27, no street address available, arrested yesterday, made his initial appearance this afternoon in federal court in Springfield before U.S. Magistrate Judge Byron G. Cudmore. Trotter was ordered to remain detained in the custody of the U.S. Marshals Service. A trial date of Oct. 1, 2013, has been scheduled before U.S. District Judge Sue E. Myerscough.
The indictment, returned on Aug. 7, 2013, but sealed pending Trotter’s arrest and initial court appearance, alleges that from about Feb. 7, 2013, to May 31, 2013, Trotter conspired with others to manufacture and distribute methamphetamine. Trotter is also charged with two counts of possession of methamphetamine with the intent to distribute; one count of possession of pseudoephedrine with intent to manufacture meth; and three counts of using or maintaining a building to manufacture meth: at 760 W. Douglas Ave.; 1033 E. Morton Ave., Lot 26; and 102 S. Marnico Lane, Jacksonville, Ill.
If convicted, the statutory penalty for conspiracy to manufacture methamphetamine is five to 40 years in prison; for each count of the offenses of possession of methamphetamine with intent to distribute; possession of pseudoephedrine with intent to manufacture meth; and for maintaining a building for the purpose of manufacturing methamphetamine, the statutory penalty is up to 20 years in prison.
The charge is the result of an investigation by the Illinois State Police, Jacksonville Police Department, and the Morgan County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Bryan D. Freres in cooperation with the office of Morgan County State’s Attorney Robert V. Bonjean III.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Grand Jury Indictments Charge Defendants with Child Pornography in Unrelated CasesRead the Press Release
Peoria, Ill. – A federal grand jury yesterday afternoon returned three separate, unrelated indictments that charge defendants in the Central District of Illinois with child pornography offenses:
Johnathan W. Pierce, 29, of the 1000 block of Armstrong Ave., Peoria, Ill., charged with eight counts of receiving child pornography and one count of possession of child pornography. Pierce was previously arrested on Aug. 8, 2013, and charged by complaint. U.S. Magistrate Judge John A. Gorman ordered that Pierce remain detained in the custody of the U.S. Marshals Service.
The investigation was conducted by the U.S. Secret Service; Washington Police Department; the Tazewell County Sheriff’s Office; and, the Peoria Police Department. Assistant U.S. Attorney Kirk D. Schoenbein is prosecuting the case.Michael E. Ontiveros, 50, of the 2000 block of North Evandale, Decatur, Ill., charged with one count of possession of child pornography. Ontiveros was arrested and charged by complaint on Aug. 7, 2013. U.S. Magistrate judge David G. Bernthal ordered that Ontiveros remain detained in the custody of the U.S. Marshals Service.
The investigation was conducted by U.S. Immigration and Customs Enforcement Homeland Security Investigations; the Decatur Police Department; and, the Illinois Secretary of State. Assistant U.S. Attorney Elly Peirson is prosecuting the case.Jorge Muhedano-Hernandez, 29, of Elmond Drove, Bloomington, Ill., charged with one count each of production of child pornography, illegal re-entry after removal from the United States, allegedly in Tucson, Ariz., about Nov. 4, 2012; and possession of fraudulent identification documents. The indictment also charges two other defendants, Jorge Muhedano-Martinez, 54, and Maria Ignacia Antonio-Cruz, both also of Elmond Drive, Bloomington, Ill., with one count each of possession of fraudulent identification documents.
The investigation was conducted by U.S. Immigration and Customs Enforcement Homeland Security Investigations; the Bloomington Police Department; and, the Illinois Department of Children and Family Services. Assistant U.S. Attorney Kirk D. Schoenbein is prosecuting the case.If convicted, the statutory penalty for receipt of child pornography is five to 10 years in prison; for possession of child pornography, the penalty is up to 10 years in prison. If convicted for the offense production of child pornography, the penalty is not less than 15 years to 30 years in prison. For possession of fraudulent identification documents and for illegal reentry after deportation, the penalty is up to ten years in prison.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
The cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Chicago Brothers to Serve Significant Prison Terms for Trafficking Crack Cocaine in QuincyRead the Press Release
Springfield, Ill. – Chicago brothers who organized a large-scale cocaine trafficking operation in Quincy, Ill., were sentenced in federal court today. U.S. District Judge Sue E. Myerscough ordered Sylvester Purham, 24, and Howard Purham, 21, to serve 30-year and 20-year prison terms, respectively, for conspiring to distribute crack cocaine in the Quincy area for more than a year. In May 2012, both entered pleas of guilty to conspiracy to distribute at least 280 grams of crack cocaine from August 2010 to mid-November 2011. The brothers have remained in the custody of the U.S. Marshals Service since they were arrested in January 2012.
According to court documents and during today’s hearing, the government presented evidence and Judge Myerscough found that the Purham brothers organized and controlled a group that since August 2010 had brought crack cocaine from Chicago to Quincy, Ill., to sell. The court found that Sylvester was responsible for 1.9 kilograms of crack cocaine and that Howard was responsible for 840 grams of crack cocaine. One way of transporting the drugs was via Amtrak. The brothers were associated with the Black P-Stone Nation street gang. In addition, Judge Myerscough found that the brothers orchestrated threats of government witnesses and failed to accept responsibility for their crimes.
The charges were investigated by the Illinois State Police West Central Illinois Task Force, the Quincy Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Agencies providing assistance include the U.S. Marshals’ Violent Fugitive Task Force, the Adams County Sheriff’s Office and the Illinois Department of Corrections. The case was prosecuted by Assistant U.S. Attorney Jason M. Bohm in cooperation with Adams County State’s Attorney Jon Barnard.
Former Country Club Hills Police Chief Pleads Guilty to Obstruction of JusticeRead the Press Release
SPRINGFIELD, Ill. – Regina R. Evans, former police chief for Country Club Hills., Ill., appeared in federal court in Springfield again today to enter pleas of guilty to obstruction of justice, witness tampering, and conspiracy to obstruct justice and witness tampering in the federal investigation of her role in a grant fraud scheme. Evans, 50, previously 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 also pleaded guilty to the fraud scheme and is scheduled to be sentenced on Dec. 2, 2013.
Regina Evans appeared this morning before U.S. District Judge Sue E. Myerscough and entered an open plea of guilty to one count each of obstruction of justice, witness tampering, and conspiracy to obstruct justice and witness tampering. Sentencing in this case is scheduled on Oct. 15, 2013, the same date of sentencing in Regina Evans’ fraud case. Regina Evans remains in the custody of the U.S. Marshals Service.
Regina Evans was charged in this case in March 2013, along with her brother, Ricky McCoy, 52, of Chicago. The next court date for the case against McCoy is scheduled for status conference on Aug. 28, 2013. In addition to the charges with his sister, McCoy is also charged with three counts of money laundering. According to the indictment, McCoy assisted the Evanses in the management of We Are Our Brother’s Keeper.
In today’s court hearing and according to court documents, Regina Evans conspired with others to have a person identified as Individual A 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, Individual A performed no such work and the checks issued to Individual A were merely a means to conceal grant funds converted to cash and returned to the benefit of the Evanses. The false story created for Individual A falsely represented that Individual A worked as a teacher under the grant, and instructed students on “soft skills,” to include manners, how to dress for an interview, how to groom themselves, how to behave in interviews and how to write a resume, when in fact, Regina Evans knew the story was false and intended to obstruct the investigation of the grant fraud.
Members of the public are reminded that the indictment charging McCoy remains as merely an accusation; the defendant is presumed innocent unless proven guilty.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.
The maximum statutory penalty for each count of the offenses charged is as follows: obstruction of justice – up to 10 years in prison; witness tampering – up to 20 years in prison; conspiracy to obstruct justice and witness tampering – up to five years in prison; and for money laundering - up to 20 years in prison. Regina Evans faces additional penalties of up to 10 years in prison to be served consecutive to any sentence ordered for the underlying offenses because the offenses were committed while the defendant was on pre-trial release.