Central District of Illinois
Press releases recorded for this federal judicial district.
Four Local Men Charged with Conspiracy to Distribute HeroinRead the Press Release
Urbana, Ill. – A September trial date has been set for four local men charged in federal court with conspiracy to distribute 100 grams or more of heroin in Champaign County. Three of the four charged in the indictment have been arrested: Clifford L. Brown, 34, of the 900 block of S. Lierman, Urbana, Ill.; Christopher N. Maze-Moore, 26, of the 300 block of Nelson Court, Champaign; and, Kavurante Derrez Pettigrew, 22, aka ‘Little D,’ of the 1300 block of N. Clock Street, Champaign. The fourth defendant, Daniel J. Hightower, 25, aka ‘Boogie,’ of the 1500 block of Kingsway, Champaign, remains a fugitive.
The indictment was unsealed last week following the arrest and initial appearances of the three defendants in custody before U.S. Magistrate Judge David G. Bernthal. Trial is scheduled on Sept. 23, 2013. Each has been ordered to remain detained in the custody of the U.S. Marshals Service.
The charges are the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation announced by U.S. Attorney Jim Lewis, Central District of Illinois. The DEA task force worked cooperatively with the Champaign Police Department and the Illinois State Police. Assistant U.S. Attorney Eugene L. Miller is prosecuting the case in the Central District of Illinois, Urbana Division.
The indictment, which charges the defendants with conspiracy to distribute heroin, alleges that from about September 2011 to February 2013, the four defendants conspired to possess with intent to distribute and to distribute more than 100 grams of heroin. Each defendant also faces an additional count of distribution of heroin.
If convicted, for the offense of conspiracy to distribute more than 100 grams of heroin, the statutory penalty is a mandatory minimum five years and up to 40 years in prison; if a defendant has one or more prior felony drug convictions, the penalty is 10 years to life in prison. For the distribution of heroin, the penalty is up to 20 years in prison if the defendant has no prior felony drug convictions; if the defendant has a prior felony drug conviction, the offense carries a penalty of up to 30 years in prison.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.In a separate, but related federal case, Mark M. Brown, 41, of Rantoul, Ill., was arrested and charged in February 2013, with possession of 100 grams or more of heroin with intent to distribute. On Jul. 8, 2013, Brown entered a plea of guilty to the charge, and sentencing is scheduled on Nov. 14, 2013. Brown remains in the custody of the U.S. Marshals Service.
Former Illinois Department of Public Health Chief of Staff Charged with Bribery and Taking Kickbacks, Mail Fraud, Obstruction of JusticeRead the Press Release
To Date: 13 Defendants Charged in Ongoing State Grant / Contract Fraud Investigation
SPRINGFIELD, Ill. – An indictment returned yesterday by a grand jury in Springfield charges Quinshaunta R. Golden, former Chief of Staff for the Illinois Department of Public Health, with bribery and taking kickbacks of approximately $433,000 in grant and contract funds, mail fraud, and obstructing justice in a federal investigation. The indictment alleges that from about July 2007 to October 2008, Golden received kickbacks related to $13 million in grant and contract funds awarded at Golden’s direction to various entities. Further, the indictment alleges that from about February to early April 2012, Golden engaged in conduct to obstruct and impede a grand jury investigation in the Central District of Illinois.
The U.S. Attorney for the Central District of Illinois, Jim Lewis, announced the indictment today, along with Assistant U.S. Attorney Timothy A. Bass, who is representing the government in the prosecution, and representatives of the investigative agencies that participate in the U.S. Attorney’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 Division, Chicago Field Office; and Jim Burns, Inspector General, Illinois Secretary of State Office of Inspector General.
Golden is the 13th defendant to be charged, to date, as a result of the ongoing task force investigation of state grant/contract fraud. Charges filed against these 13 defendants collectively allege the misuse of more than $16 million in taxpayers’ money intended to provide a wide range of healthcare, student assistance, and job training programs and services to disadvantaged citizens. These include programs to promote wellness and improve healthcare; to prepare for major health and natural disaster emergencies; to provide healthcare advocacy programs and student job training assistance; to provide skill training and apprenticeships; and to provide statewide HIV prevention plans and HIV/AIDS facilities to assist African Americans. See the attached summary table for the complete list of defendants charged and case status.
According to the indictment, Golden, 44, 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.
The indictment alleges that, as part of the scheme, Golden used her position at the Department of Public Health 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. Dingle, his wife, and two associates were indicted in October 2012; trial is scheduled for December 2013. Further, Golden allegedly caused approximately $2 million in contract funds to be paid by the Department of Public Health to an entity referred to in the indictment as Security Firm A for services related to the Identified Offender Program to conduct background checks and interviews of Illinois nursing home residents.
As part of the scheme, Golden allegedly caused a person, identified as Individual A in the indictment, 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 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 during a nine-month period from July 2007 to April 2008, including approximately $407,500 paid to Individual A in April 2008, at the end of Golden’s tenure at the Department of Public Health.
The indictment alleges that Golden required, as a condition of Individual A receiving grant funds, that Individual A pay Golden one-half of whatever Individual A received, less any funds to be withheld for payment of taxes, which were never paid. From about July 2007 to April 2008, Individual A made cash payments to Golden in amounts ranging from $5,000 to as much as $70,000, totaling approximately $323,500.
Under the Identified Offender Program, the indictment alleges that Golden required Individual A to pay Golden approximately $35 to $40 for each background investigation performed by Security Firm A. From 2006 to 2009, Individual A received approximately $485,000 in funds from Security Firm A’s contracts with DPH, and during 2007 and 2008, Individual A allegedly paid Golden approximately $109,500.
In addition to the charges of bribery and taking kickbacks and mail fraud (five counts), the indictment charges Golden with one count of obstruction of justice. Golden allegedly met with Individual A on multiple occasions and falsely denied receiving improper kickback payments from A. Further, the indictment alleges that Golden encouraged and instructed Individual A not to tell the truth concerning the kickback scheme and to conceal the truth from Individual 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.
The indictment includes one count of criminal forfeiture seeking forfeiture of property Golden derived from any proceeds obtained as a result of the alleged offenses, as well as a money judgment in an undetermined amount representing the net proceeds obtained as a result of the alleged offenses.
If convicted, for the offense of bribery and theft concerning programs receiving federal funds, the statutory penalty is up to 10 years in prison and a fine of up to $250,000. For each count of mail fraud (five counts) and for the single count of obstruction of justice, the statutory penalty is up to 20 years in prison and fines of up to $250,000 as to each count. The defendant may also be ordered to pay restitution to victims of the alleged offenses.
The U.S. Clerk of the Court will issue a summons to Golden for her initial appearance date, scheduled for Aug. 23, 2013, at 11:00 a.m., before U.S. Magistrate Judge Byron G. Cudmore in federal court in Springfield.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
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 Illinois State Representative Connie Howard Pleads Guilty to Fraud SchemeRead the Press Release
Springfield, Ill. – Former Illinois State Representative Constance ‘Connie’ Howard, today waived indictment and entered a plea of guilty to mail fraud related to her misuse of funds from 2003 to 2007, that she raised on behalf of a charity golf outing she sponsored, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. Howard, 70, appeared before U.S. Magistrate Judge Byron G. Cudmore. Sentencing has been scheduled for Nov. 21, 2013, before U.S. District Judge Richard Mills.
In court documents and during today’s hearing, Howard admitted that, as a result of the scheme, from 2003 to 2007, she solicited and obtained approximately $76,700, representing that such funds would be used to provide scholarships. Howard admitted that, in fact, no more than five scholarships of $2,500 each, totaling $12,500, were issued during the course of the scheme, and as much as approximately $28,000 of the funds raised were converted to her personal and political use. Misuse of the funds included expenses associated with the promotion of her campaign, and campaign events, and to the benefit of Individual A, identified in court documents as Howard’s legislative aide and employee / office manager.
At the time of the fraud, Howard was a member of the Illinois House of Representatives. She served as Chairwoman of the Computer Technology Committee for the House of Representatives and the Eliminate the Digital Divide Advisory Committee of the Illinois Department of Commerce and Economic Opportunity. Howard’s legislative and campaign offices were located in Chicago.
In 2003, Howard created an organization known as “Tee Off for Technology,” (TOFT), which was not a tax-exempt organization. Howard also established the “Constance A ‘Connie’ Howard Computer Technology Scholarship Fund. Howard represented that the purpose of the fund was to provide scholarships to persons in need who were seeking a degree in computer science and related fields.
In July 2003, Howard established an annual event known as the “Tee Off for Technology Celebrity Golf Outing.” Howard represented that the purpose of the organization and the annual golf outing was to serve as a fundraising mechanism for the scholarship fund. Because TOFT was not a tax-exempt organization, it partnered with tax-exempt organizations to serve as TOFT’s fiscal agent to ensure that donations to TOFT and the scholarship fund were tax deductible.
In the plea agreement between Howard and the government, at sentencing, the government agrees to recommend to the court a sentence of no more than 12 months to be served as six months in prison to be followed by a term of supervised release that includes a condition that six months of supervised release be served as home detention. The parties agree that the advisory sentencing guidelines for the offense would be 12 to 18 months in prison. Under terms of the plea agreement, if the court does not accept the plea agreement, the defendant has a right to withdraw her plea of guilty. Howard has not been detained and remains free on her own recognizance pending sentencing.
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 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.
Indianapolis Attorney Pleads Guilty to Defrauding Clients of More Than $4.5 MillionRead the Press Release
INDIANAPOLIS – Indianapolis attorney William F. Conour today entered an open plea of guilty to an information that alleged that he has defrauded more than 25 clients of more than $4.5 million since 1999. Conour, 66, pleaded guilty during a hearing before Chief U.S. District Judge Richard L. Young in Indianapolis. Sentencing has been scheduled for Oct. 17, 2013.
Conour 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.
The plea 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.
Conour was initially charged with fraud in a criminal complaint filed on Apr. 27, 2012. An information was filed on Aug. 14, 2012. According to the information, Conour devoted most of his law practice to representing clients who had suffered serious injuries or death caused by construction site accidents, automobile collisions, and accidents resulting in traumatic brain injury.
The information, to which Conour plead guilty, alleged that Conour engaged in a scheme to defraud his clients from 1999 through April 2012. As part of the scheme, Conour kept a majority of his clients’ settlement proceeds for his own use and benefit. Conour did not deposit the full amount of client settlements into client ‘trust’ accounts; instead, Conour funded the trusts on a yearly basis with 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’s case is being prosecuted 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, is conducting the investigation.
The offense of wire fraud carries a maximum statutory penalty of 20 years in prison and a fine of up to $250,000. The defendant may also be ordered to pay full restitution to victims of the offense.
Springfield Man Charged with Concealing Assets, Making False Statements in Bankruptcy CaseRead the Press Release
Springfield, Ill. – A Springfield, Ill., man, Michael A. Carr, 50, of St. James Court, has been charged with concealing assets and making false statements related to bankruptcy proceedings, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. The federal grand jury returned the 10-count indictment late yesterday afternoon. The U.S. Clerk of the Court will issue a summons to Carr to appear in federal court in Springfield for arraignment.
According to the indictment, on June 8, 2010, Carr filed a bankruptcy petition to discharge his debts under Chapter 7 of the U.S. Bankruptcy Code. The indictment alleges that, on various occasions, Carr fraudulently concealed property and made false statements in his filings and during bankruptcy proceedings while he was under oath. At the time Carr filed for bankruptcy and in subsequent hearings and filings, Carr allegedly concealed that he owned a motorcycle, a sport utility vehicle, four all-terrain vehicles, and a pending insurance claim arising from the theft of a 1995 Harley-Davidson Softail motorcycle. Further, on or about July 12, 2010, Carr allegedly gave false statements under oath when he testified that his wife’s bank account held $20,000, when he knew that approximately one week prior to the hearing date, his wife had withdrawn $18,000 of the $20,000 and given the cash to Carr.
The charges resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the Central District of Illinois Bankruptcy Fraud Working Group. The charges were investigated by the FBI and the U.S. Postal Inspection Service. Assistant U.S. Attorney Gregory K. Harris is prosecuting the case.
“Abuse of the bankruptcy system by concealing assets for personal gain threatens the integrity of the bankruptcy system and undermines public confidence in that system,” stated Nancy J. Gargula, U.S. Trustee for Central Illinois, Southern Illinois and Indiana (Region 10). “I am grateful to U.S. Attorney Lewis and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases.”
If convicted, the statutory penalty for each count of concealing assets (two counts); making false statements in a bankruptcy petition (one count); making false statements under oath (two counts), and, submitting false documents (one count) is up to five years in prison. Carr is also charged with one count of falsification of records in bankruptcy, an offense that carries a statutory penalty of up to 20 years in prison. Final sentences are determined by the court. In imposing sentence, the court may consider federal sentencing guidelines, which include a defendant’s criminal history, the amount of loss, and other applicable factors.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
Springfield Businessman Charged with Filing False Income Tax ReturnsRead the Press Release
Springfield, Ill. – A federal grand jury has charged a Springfield, Ill., man who does business as ‘The Granite Guy,’ George J. “Jerzy” Jaworski, with four counts of filing false income tax returns for the calendar years 2005 through 2008.
The indictment, returned late yesterday, alleges that Jaworski filed false income tax returns for himself and his wife that substantially understated receipts from ‘The Granite Guy,’ by at least $300,000 in 2005; at least $250,000 in 2006; more than $100,000 in 2007; and, at least $75,000 in 2008.
The charges are the result of an investigation by Internal Revenue Service-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Patrick D. Hansen.
The U.S. Clerk of the Court will issue a summons for Jaworski to appear in federal court in Springfield for arraignment.
If convicted, each count of filing a false tax return carries a statutory penalty of 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.
Silvis Man Sentenced to 25 Years in Prison for Production, Possession of Child PornographyRead the Press Release
ROCK ISLAND, Ill. – A Silvis, Ill., man, John J. Frazer, 32, was sentenced yesterday to serve a term of 25 years (300 months) in prison for producing and possessing child pornography. U.S. District Judge Sara Darrow further ordered that Frazer serve a life-time term of supervised release following his release from prison. Frazer’s sentence was the result of his indictment on Sept. 19, 2012, and subsequent guilty plea on Feb. 6, 2013.
The investigation into Frazer’s conduct began on Aug. 21, 2012, when the Danish National Police alerted the U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) Cyber Crime Center that an Internet Protocol (IP) address from inside the United States had posted photographs of child pornography onto a Russian website. Authorities thereafter linked the IP address to Frazer’s apartment in Silvis, and executed a search warrant at Frazer’s apartment and arrested Frazer on August 27, 2012.
Subsequent investigation revealed that the photographs of child pornography that had been posted to the Russian website involved photographs that Frazer had taken of a known minor female on or about Aug. 20, 2012. These photographs, and additional photographs and videos of child pornography involving unknown other minors, were also found on Frazer’s cell phone and laptop computer. Notably, the subsequent investigation also revealed that Frazer demonstrated an intent on Sunday, Aug. 26, 2012, to take a video of the known minor female engaging in sexual acts the next day after school. Because foreign, federal, and local authorities reacted quickly to the posting of the images onto the Russian website, however, authorities were able to arrest Frazer shortly after noon on Monday, Aug. 27, 2012.
The case was investigated by the U.S. Immigration and Customs Enforcement Homeland Security Investigations; the Moline Police Department; and the Silvis Police Department. Assistant U.S. Attorney Kirk W. Schuler prosecuted the case in cooperation with the Rock Island County State’s Attorney’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Former Illinois Legislative Aide Faces Fraud Charges Related to $1.2 Million GrantRead the Press Release
SPRINGFIELD, Ill. – A former legislative aide to an Illinois state representative, Lloyd Kelly, is scheduled to appear in federal court in Springfield next week for an initial pretrial conference related to an indictment that charges Kelly with a single count of mail fraud.
A federal grand jury returned a superseding indictment against Kelly, 52, in September 2012; the initial indictment was returned in July 2012. The indictment had remained sealed pending Kelly’s arrest and court appearance. Kelly was arrested on May 20, 2013, and appeared before Senior U.S. District Judge Richard Mills. At that time, Kelly was ordered released on bond, and trial was scheduled on Jul. 2, 2013.
The superseding indictment charges Kelly with one count of mail fraud related to the alleged fraudulent use of a $1.2 million grant awarded in 2007 by the Illinois Department of Public Health to the Let’s Talk Let’s Test Foundation, a non-profit organization founded by Kelly and a member of the Illinois House of Representatives, referred to in the indictment as Public Official A, in 2003. From June 2007 to February 2009, the indictment alleges that Kelly participated in a scheme to defraud the state of the grant funds.
According to the indictment, the African-American HIV/AIDS Response Act was enacted in Illinois in 2005, co-sponsored by Public Official A, to address the legislative finding that HIV/AIDS in the African-American community was a crisis separate and apart from the issue of HIV/AIDS in other communities. In 2006, the Act established a grant program to fund programs to prevent the transmission of HIV and to create a service delivery system to reduce the disparity between African Americans and other population groups in Illinois.
In or about January 2007, according to the indictment, Public Official A met with the Illinois Department of Public Health and others to determine grant recipients. The state transferred $3 million to the grant program, and the Department selected approximately 50 recipients to receive grants from $25,000 to $50,000. Only one recipient, the Let’s Talk Let’s Test Foundation, received two grant awards totaling $1.2 million, representing 40 percent of the total 2007 funding.
Under the terms of the grant agreements, signed by Kelly, the indictment alleges the Foundation agreed to provide a variety of services and programs, including development of a statewide African-American HIV Prevention Plan and a plan for creating and maintaining at least 17 one-stop shopping HIV/AIDS facilities statewide.
The indictment alleges that Kelly falsely represented that the Foundation would perform the requirements of the grant when he well knew the Foundation was neither capable of performing nor intended to perform the requirements, did not in fact perform a substantial number of the grant requirements, and diverted a substantial amount of the Foundation’s grant funds for other purposes, including Kelly’s personal benefit and that of Public Official A and their associates.
The indictment alleges that Kelly diverted grant funds to himself to pay personal expenses and a bonus payment to himself, toward purchase of his personal residence, and for personal expenses, as well as payments to others, including to an organization that paid wages to individuals for work performed for the Illinois representative, to pay rent for the representative’s legislative and campaign office; and $7,000 to purchase tickets, two skyboxes, food and alcohol for the 2007 Chicago Football Classic, which Kelly attended with the representative and others. The indictment further alleges that Kelly made false statements to Illinois Department of Public Health during its monitoring and auditing of the Foundation’s grants.
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. The Illinois Department of Public Health is also cooperating in the investigation. 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.
If convicted, the statutory penalty for the offense of mail fraud is up to 20 years in prison and fines of up to $250,000.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
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Danville Man to Serve 12 ½ Years in Prison for Bank RobberyRead the Press Release
URBANA, Ill. – This week, U.S. District Judge Michael P. McCuskey sentenced Frank P. Sutton, 26, of Danville, Ill., to 151 months (12years, 7 months) in prison for robbing a Danville bank last year. At sentencing, on Tuesday, June 18, Sutton was also ordered to pay restitution to the bank in the amount of $1,340.
On Feb. 11, 2013, Sutton pled guilty to the Sept. 14, 2012, robbery of Old National Bank, at 2431 N. Vermilion Street. According to court documents and statements during court proceedings, this is Sutton’s third conviction for bank robbery.
Sutton admitted that on Sept. 14, he approached a bank teller and said, “I’m on a suicide mission,” and handed the teller a note that stated, “I need your money.” The teller handed the defendant $1,340 in U.S. currency and Sutton fled the bank. Several days later, Sutton was arrested in Chicago, where Sutton said he fled by taking a freight train, and used the robbery money to buy heroin.
Sutton has remained in the custody of the U.S. Marshals Service since he was indicted by a federal grand jury in November 2012.
The investigation was conducted by the Danville Police Department. The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller.
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Former Country Club Hills Police Chief Pleads Guilty to $1.25 Million Fraud SchemeRead the Press Release
SPRINGFIELD, Ill. – Former Country Club Hills, Ill., police chief Regina R. Evans, 50, today pled guilty 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.
A status hearing in the case against Ronald Evans, 46, former inspector general of the Country Club Hills police department, is scheduled tomorrow morning, in federal court in Springfield. Trial for Ronald Evans is currently scheduled to begin on Jul. 9, 2013.
Regina Evans appeared this afternoon before U.S. District Judge Sue E. Myerscough and entered an open plea of guilty to the following charges: conspiracy to commit wire fraud and money laundering (one count); wire fraud (three counts); and money laundering (seven counts.) There is no plea agreement between the government and Evans. Sentencing in this matter has been scheduled on Oct. 15, 2013.
In court documents and during today’s hearing, Regina Evans admitted that she and her husband owned various for-profit and not-for-profit entities, including the Prime Time Group, Inc., the Regal Theater, LLC., and We Are Our Brother’s Keeper (WAOBK.) In February 2009, on behalf of WAOBK, Evans and her husband applied for grant funding offered under the Employment Opportunities Grant Program and administered by the Illinois Department of Commerce and Economic Opportunity (DCEO.) In September 2009, DCEO disbursed the $1,250,000 award for the two-year period, beginning on June 1, 2009, and ending on May 31, 2011. The grant agreement provided for an estimated 40 participants to receive bricklaying and electrical pre-apprenticeship training and GED preparation, at the Regal Theater, another entity owned by the Evanses. In fact, Regina Evans admitted that little, if any, of the training proposed in the grant agreement, was ever completed.
Instead, Evans admitted that she concealed her true financial status and that of her various business interests from DCEO and her intent to use a substantial portion of the grant funds shortly after their disbursement for repayment of indebtedness, including delinquent mortgage indebtedness for the Regal Theater. Within six months of the grant disbursement, Evans admitted that the $1.25 million was deposited into six separate accounts at the same financial institution, including $500,000 or more which was converted to the personal use and benefit of Evans and businesses she owned, including The Prime Time Group, Inc. and The Regal Theater, LLC, and to the use and benefit of Evans’s family members, friends and associates.
In a separate but related case, trial is scheduled to begin on Sept. 3, 2013 for Regina Evans and her brother, Ricky McCoy. Evans and McCoy, 52, of Chicago, are charged with obstruction of justice, witness tampering, and conspiracy to obstruct justice and witness tampering, related to the ongoing investigation of the alleged fraudulent use of grant funds. In addition, McCoy is charged with three counts of money laundering. According to the indictment, McCoy served as the executive director of We Are Our Brother’s Keeper. The indictment alleges that on Nov. 12, 2009, a check in the amount of $16,249 was issued to McCoy, cashed, and the check’s proceeds deposited into a bank account controlled by the Evanses.
Following a hearing this morning, trial has been scheduled for Sept. 10, 2013, for Jeri L. Wright, 47, of Hazel Crest, Ill., charged with money laundering (two counts), making false statements to federal law enforcement officers (two counts), and giving false testimony before a grand jury (seven counts), related to the investigation of the alleged fraudulent use of grant funds.
Wright allegedly received three checks in November 2009, totaling approximately $28,000, purporting to be for work related to the grant; approximately $20,000 of the proceeds of the checks was allegedly deposited back into accounts controlled by the Evanses. The indictment further alleges that Wright made false statements to federal law enforcement officers when she was interviewed on various occasions in 2012, and that on Nov. 7, 2012, Wright made materially false statements to the grand jury.
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. The Illinois Department of Commerce and Economic Development is also cooperating in the investigation. 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 various offenses charged is as follows: conspiracy to commit wire fraud and money laundering – up to five years in prison; wire fraud - up to 20 years in prison; money laundering - up to 20 years in prison; 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; making a false statement to a federal law enforcement officer – up to five years in prison; providing false testimony before a grand jury – up to five years in prison.
If convicted in the obstruction case against her, 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 allegedly committed while the defendant was on pre-trial release.
On Mar. 29, 2013, U.S. Magistrate Judge Byron Cudmore ordered that Evans be detained pending trial and her bond was revoked. Following today’s hearing, Evans was remanded to the custody of the U.S. Marshals Service.
Members of the public are reminded that an indictment is merely an accusation; the defendants whose cases remain pending are presumed innocent unless proven guilty.
Five Charged with Heroin Trafficking Conspiracy Resulting in Death, Serious Bodily InjuryRead the Press Release
Peoria, Ill. – An indictment that charges five individuals with conspiracy to distribute heroin was unsealed this afternoon upon initial court appearances of three of the defendants in custody: Monta Y. Anderson, 35; Diondre P. Harris, 23; and, Walter Nealy IV, 36, made their initial appearance in federal court this afternoon. Harris, of Peoria, Ill., and Nealy previously of New Orleans, now residing in Peoria, were arrested on Sat., June 1; Anderson was already in the custody of the Illinois Department of Corrections. Two other defendants charged in the indictment, Leland D. Jones, 34; and Latanya R. Anderson, 37, both of Chicago, remain at large.
The charges are the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation announced today by U.S. Attorney Jim Lewis, Central District of Illinois. The DEA task force worked cooperatively with the Peoria Police Department, Illinois State Police, and members of the Tazewell County Major Crimes Task Force and the Peoria Metropolitan Enforcement Group to investigate the case. Assistant U.S. Attorney Tate Chambers is prosecuting the case in the Central District of Illinois, Peoria Division.
The indictment, which charges the defendants with a single count of conspiracy to distribute heroin, alleges that from about May 2010 to the present, the five defendants conspired to distribute more than 1,000 grams of heroin. Further, the indictment alleges that as a result of this conspiracy, death and serious bodily injury resulted from use of the heroin.
If convicted, for the offense of conspiracy to distribute more than 1,000 grams of heroin, the statutory penalty is 10 years to life in prison; if a defendant has one or more prior felony drug convictions, the penalty is 20 years to life in prison; with two or more prior felony drug convictions, the statutory penalty is life in prison. If it is found that death or serious bodily injury resulted from the use of the heroin, the penalty is a mandatory 20 years in prison to life sentence.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.29 Years in Prison for Springfield Man Serving Second Federal Sentence for Cocaine DistributionRead the Press Release
Springfield, Ill. – Senior U.S. District Judge Richard Mills last week sentenced Patrick B. Wallace, 44, of Springfield, Ill., to 288 months (24 years) in prison for dealing crack cocaine in late 2011, to be followed by a consecutive 60 months (5 years) sentence for revocation of supervised release. At the time of the 2011 offense, Wallace remained under supervised release for a prior federal conviction, in 1994, for conspiracy to distribute cocaine.
A jury convicted Wallace on Oct. 16, 2012, for possession with intent to distribute 28 or more grams of crack cocaine in Springfield, Ill., in December 2011. At trial, the government presented evidence that Wallace was responsible for distribution of substantial quantities of mostly crack cocaine in Springfield. Evidence was also presented that during execution of a search warrant at a home in the 700 block of N. 14th Street, officers found that the home was equipped with a large privacy fence and an alarm system with outside surveillance cameras. Inside the home, a 73” flat screen television screen monitored the surveillance cameras. Officers also recovered one-half kilogram (more than 500 grams) of cocaine and crack, and marijuana, as well as a handgun and $4,300.
In 1994, Wallace was sentenced to 200 months (16 years, 8 months) in federal prison, to be followed by 10 years of supervised release, after pleading guilty in the Central District of Illinois to conspiracy to distribute cocaine. Wallace was released from the Bureau of Prisons in July 2008, and remained under supervised release when he was charged in the second case.
The investigation was conducted by the Springfield Police Department and the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Timothy A. Bass.Adams County Drug Court Supervisor Charged with Maintaining Drug-Involved PremisesRead the Press Release
Springfield, Ill. – A supervisor of the Adams County, Ill., probation department’s drug court program, John Grotts, 59, of Ursa, Ill., has been charged in federal court by criminal complaint with maintaining a drug-involved premises.
Grotts appeared this afternoon in Springfield before U.S. Magistrate Judge Byron G. Cudmore. Grotts turned himself in to law enforcement officers this morning. The government did not seek Grotts’ detention and he was released on his own recognizance. Grotts’ next federal court appearance is scheduled on June 29, 2013.
The affidavit filed in support of the criminal complaint alleges that Grotts’ residence, in the 200 block of Walker Street, was made available for use or used to manufacture or use methamphetamine and marijuana. According to the affidavit, items recovered from Grotts’ home, which he shared with a May 2012 graduate of the Adams County drug court program, during execution of a state-authorized search warrant on Apr. 26, 2013, allegedly included items related to growing marijuana indoors and items used to manufacture or use methamphetamine and marijuana, and a number of firearms.
If convicted, the statutory penalty for maintaining a drug-involved premises is up to 20 years in prison.
The charge is the result of an investigation by the West Central Illinois Task Force; the Adams County Sheriff’s Office; the Quincy Police Department; and the Illinois State Police. The case is being prosecuted by Assistant U.S. Attorney Bryan D. Freres in cooperation with the office of Adams County State’s Attorney Jon Barnard.
Members of the public are reminded that a complaint is merely an accusation; the defendant is presumed innocent unless proven guilty.
Convicted ‘Operation Blue Bulldog’ Defendant Faces 10 Years to Life in PrisonRead the Press Release
Peoria, Ill. – Sentencing is scheduled in October 2013 for a Bloomington, Ill., man charged last summer with cocaine trafficking in the Bloomington-Normal area. Perry Harrington, 34, of the 300 block of Riley Drive, was one of the defendants arrested and charged as a result of the cooperative investigation known as “Operation Blue Bulldog” that targeted an alleged network of more than 15 defendants charged with distribution of cocaine and crack cocaine in the area.
A jury deliberated for more than one hour on Wed., Jun. 5, before finding Harrington guilty of the seven counts charged, including two counts of distribution of more than 28 grams of crack cocaine. The government presented evidence during the three days of trial that included video and audio surveillance of Harrington’s sales of cocaine and crack cocaine in 2011.
The charges were the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation known as “Operation Blue Bulldog.” The investigation began in 2010 by the FBI’s Peoria Area Safe Streets Task Force, the Normal Police Department; Bloomington Police Department and the Illinois State Police. Assistant U.S. Attorneys Greggory R. Walters and Bradley W. Murphy represented the government at trial before Chief U.S. District Judge James E. Shadid in Peoria.
At sentencing, scheduled on Oct. 10, 2013, Harrington faces a statutory mandatory minimum penalty of 10 years to life in prison.
Harrington has remained in the custody of the U.S. Marshals Service since his arrest in August 2012.Nearly 22 Years in Prison for Woman Who Produced Child Porn Images for Rent MoneyRead the Press Release
Springfield, Ill. – U.S. District Judge Sue E. Myerscough today sentenced Laura J. Sigler, 26, to serve 262 months (21 years, 10 months) in federal prison and to remain on supervised release for life following her release from prison. Sigler has been detained in the custody of the U.S. Marshals Service since her arrest in March 2012, along with co-defendant Anthony L. Ferguson, 25.
On Dec. 6, 2012, Sigler pled guilty to using a five-year-old child to produce child pornography in November 2011, when Sigler and Ferguson were living at the Budget Inn in Lincoln, Ill. According to court documents, Ferguson and Sigler used the images of child pornography to secure rent money. Ferguson pled guilty to the offense in July 2012, and was sentenced in January 2013, to a term of 235 months (19 years, 7 months) in prison.
Sigler and Ferguson were each ordered to remain on supervised release for life following completion of their respective prison terms.
The case was investigated by ICE’s Homeland Security Investigations and the Lincoln Police Department. Assistant U.S. Attorney Timothy A. Bass prosecuted the case on behalf of the government.
The case was prosecuted under Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Grand Jury Adds Tax Charges in Superseding Indictment of Former Bank Officer in Kanakee CountyRead the Press Release
Urbana, Ill. – A former loan officer and bank vice president, David Rabideau, 42, of Clifton, Ill., faces additional charges after a federal grand jury returned a superseding indictment yesterday that charges him with two counts of filing a false income tax return and a single count of making a false bank entry. The grand jury previously charged Rabideau in July 2012, with the illegal receipt of money for procuring a loan and money laundering.
The first indictment, filed in July 2012, alleged that in 2007, Rabideau corruptly received $75,000 as a kickback in connection with a real estate loan while he was employed as a loan officer and vice president of the State Bank of Herscher, in Kankakee county, Ill., and then used more than $10,000 of the proceeds in a financial transaction.
In addition to the original charges, the superseding indictment charges Rabideau with filing false income tax returns for the 2006 and 2007 tax years. Specifically, the indictment alleges that Rabideau omitted more than $50,000 he received as income in 2006, which should have resulted in an adjusted gross income of approximately $196,733 instead of the $143,988 reported in Rabideau’s 2006 return. As a result, the indictment alleges Rabideau should have paid additional tax of $16,334 for the 2006 tax return. For the 2007 income tax return, the indictment alleges that Rabideau omitted more than $120,000 in income, which should have resulted in an adjusted gross income of approximately $244,462 instead of the $156,860 reported in Rabideau’s 2007 return. As a result, Rabideau allegedly should have paid $39,854 additional tax for the 2007 return.
Rabideau is also charged with making a false bank entry in 2010, related to a $100,000 line of credit advance from the State Bank of Herscher to a friend’s business. Rabideau allegedly approached the friend to obtain a loan after Rabideau was instructed by the bank to repay the $75,000 he had allegedly received in connection with a loan in 2007. To hide the purpose of the draw from the line of credit, Rabideau instructed a bank employee to record that the loan was to “purchase golf car batteries.” According to the indictment, on Nov. 1, 2010, Rabideau’s friend wrote Rabideau a business check for $75,000, which Rabideau deposited into an account at another bank, and then allegedly wrote a check to the State Bank of Herscher to repay the bank $75,000.
The charges are the result of an investigation by the Internal Revenue Service Criminal Investigation Division; the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General; and, the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
A status hearing is currently scheduled for Rabideau to appear before U.S. District Judge Michael P. McCuskey in Urbana, Ill., on June 19, 2013. The U.S. Clerk of the Court will issue a summons for Rabideau to appear for arraignment on the additional charges.
If convicted, for the offense of accepting a kickback for procuring a loan, the maximum statutory penalty is up to 30 years in prison; for money laundering, the maximum statutory penalty is ten years in prison; for making a false bank entry, the penalty is up to 30 years in prison; and for each count of filing a false tax return, 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.
Grand Jury Indictments Broaden Alleged Fraud Charges Related to $1.25 Million GrantRead the Press Release
SPRINGFIELD, Ill. – Three indictments returned today by the grand jury in Springfield, Ill., collectively broaden allegations 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 owned by Regina R. Evans, former police chief for Country Club Hills, Ill., and her husband, Ronald W. Evans, Jr., also formerly employed with the Country Club Hills Police Department. The grant agreement provided for an estimated 40 participants to receive bricklaying and electrical pre-apprenticeship training and GED preparation, at the Regal Theater, another entity owned by the Evanses.
Regina, 50, and her husband, Ronald Evans, 45, are charged in a third superseding indictment with fraudulent use of grant funds, specifically wire fraud (three counts), money laundering (seven counts each), and conspiracy to commit wire fraud and money laundering (one count). According to the indictment, at the time of the alleged fraud, from February 2009 to June 2010, Regina and Ronald Evans owned various for-profit and not-for-profit entities, including the Prime Time Group, Inc., the Regal Theater, LLC., and We Are Our Brother’s Keeper (WAOBK.) In February 2009, on behalf of WAOBK, Evans and her husband applied for grant funding offered under the Employment Opportunities Grant Program and administered by the Illinois Department of Commerce and Economic Opportunity (DCEO.) In September 2009, DCEO disbursed the $1,250,000 award for the two-year period, beginning on June 1, 2009, and ending on May 31, 2011. In fact, the indictment alleges that little, if any, of the training provided in the grant agreement, was ever completed.
Following the return of a prior superseding indictment against the Evanses, in June 2012, the grand jury investigation continued relating to unindicted offenses and persons, including potential money laundering offenses. The investigation included a review of more than $100,000 in checks issued by the Evanses and Ricky McCoy, Regina Evans’ brother, involving grant funds and made payable to various associates of the Evanses, including McCoy and Jeri L. Wright, purportedly for work done by associates under the grant program. The indictment alleges that more than $60,000 from the proceeds of the checks was deposited back into accounts which the Evanses controlled.
Another indictment returned today charges Jeri L. Wright, 47, of Hazel Crest, Ill., with money laundering (two counts), making false statements to federal law enforcement officers (two counts), and giving false testimony before a grand jury (seven counts), related to the investigation of the alleged fraudulent use of grant funds.
According to the indictment, Wright, a close friend and associate of the Evanses, allegedly received three checks in November 2009, totaling approximately $28,000, purporting to be for work related to the grant, and approximately $20,000 of the proceeds of the checks was allegedly deposited back into accounts controlled by the Evanses. The indictment further alleges that Wright made false statements to federal law enforcement officers when she was interviewed on various occasions in 2012, and that on Nov. 7, 2012, Wright made materially false statements to the grand jury.
A third, related indictment returned today charges Regina Evans, and her brother, Ricky McCoy, 52, of Chicago, with obstruction of justice, witness tampering, and conspiracy to obstruct justice and witness tampering, related to the ongoing investigation of the alleged fraudulent use of grant funds. In addition, McCoy is charged with three counts of money laundering. According to the indictment, McCoy served as the executive director of We Are Our Brother’s Keeper. The indictment alleges that on Nov. 12, 2009, a check in the amount of $16,249 was issued to McCoy, cashed, and the check’s proceeds deposited into a bank account controlled by the Evanses. Regina Evans and McCoy were previously charged by complaint with the charges related to obstruction and witness tampering. As a result of the additional charges filed in the criminal complaint, on Mar. 29, 2013, U.S. Magistrate Judge Byron Cudmore ordered that Evans be detained pending trial and her bond was revoked.
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. The Illinois Department of Commerce and Economic Development is also cooperating in the investigation. 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.
If convicted, the maximum statutory penalty for each count of the various offenses charged is as follows: wire fraud - up to 20 years in prison; money laundering - up to 20 years in prison; 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; making a false statement to a federal law enforcement officer – up to five years in prison; providing false testimony before a grand jury – up to five years in prison. If convicted, 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 allegedly committed while the defendant was on pre-trial release.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Trial Date Set for Carbon Cliff Man Charged with Sexual Exploitation of A MinorRead the Press Release
Rock Island, Ill. — Daniel William Becker, Jr., 21, of Carbon Cliff, Ill., appeared in federal court today for arraignment on an indictment charging him with a single count of sexual exploitation of a minor on or about Sept. 13, 2012. The indictment, returned by the grand jury on Mar. 20, 2013, also seeks the criminal forfeiture of Becker’s computer, cell phone, and his residence in Carbon Cliff, alleging that said items were used in the commission of the alleged offense. Becker entered a plea of not guilty and the case was set for jury trial on May 20, 2013.
Becker was previously arrested and charged with the same offense in a criminal complaint on Mar. 4, 2013. At a hearing on Mar. 6, U.S. District Court Judge Sara Darrow ordered that Becker be detained in the custody of the U.S. Marshals Service pending trial.
The affidavit filed in support of the complaint alleges that Becker blackmailed minor females via online social networking websites into sending him photographs and videos of the girls engaged in sexually explicit acts. According to the affidavit, Becker threatened the girls by informing them that he would publicly post compromising photographs of the girls online unless the girls produced and sent additional photographs to him.
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’s Quad Cities Cyber-Crime Unit and the Moline Police Department. Assistant U.S. Attorney Kirk W. Schuler 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.
Bloomington Man Sentenced to 6 ½ Years in Prison for Failure to Register as Sex OffenderRead the Press Release
Defendant Repeatedly Failed to Register Despite Prior Convictions for Four Brutal Rapes
Peoria, Ill. – A Bloomington, Ill., man, convicted of four rapes in Cook County, Ill., who failed to register as a sex offender in Illinois, was sentenced this week to a sentence above the guideline range. Senior U.S. District Judge Michael M. Mihm sentenced Roy Anthony Baker, 51, on Monday, Mar. 18, 2013, to a term of 77 months (six years, five months) in federal prison for violation of the Sex Offender Registration and Notification Act (SORNA.) Baker was also ordered to remain on federal supervised release for the remainder of his life following completion of his prison sentence.
Baker pled guilty to the offense on May 31, 2012. While on bond in McLean County, Ill., from November 2011 to Feb. 13, 2012, Baker traveled from Illinois to Michigan to live with a single mother he met on the Internet. At the time, Baker was on bond pending sentencing for his second violation in McLean County for violation of the Sex Offender Registration requirement.
According to court documents, Baker was released from the Illinois Department of Corrections in November 2000, after serving two concurrent sentences of 28 years in prison for rapes committed in January and February 1987, less than three months after his release from prison for two rape convictions in 1983.
The government, represented by Assistant U.S. Attorney Kirk D. Schoenbein, sought and was granted a sentence greater than the guideline range of 33-41 months as determined by the U.S. Sentencing Commission, for the offense. Assistant U.S. Attorney Schoenbein argued that the sentencing guidelines used to determine Baker’s case criminal history calculation under-represented the seriousness of his criminal history and the likelihood of his continued criminal conduct.
The charge against Baker was investigated by the U.S. Marshals Service in the Central District of Illinois and the Bloomington Police Department.
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.
Former Suburban Chicago Police Chief ArrestedRead the Press Release
New Charges of Witness Tampering, Obstruction of Justice
SPRINGFIELD, Ill. – The former police chief for Country Club Hills, Ill., was arrested on Friday, Mar. 15, 2013, and was ordered to remain in custody pending a court hearing scheduled on Monday, Mar. 25, 2013, before U.S. Magistrate Judge Byron Cudmore. Regina R. Evans, 50, was charged by federal criminal complaint with conspiracy to commit witness tampering and obstruction of justice as well as one count each of witness tampering and obstruction of justice. Evans appeared before Judge Cudmore late Friday, Mar. 15.
Evans and her husband, Ronald W. Evans Jr., 45, were previously charged in a second superseding indictment returned by the grand jury on Feb. 2, 2013, in which both Regina and Ronald were charged with one count of conspiracy to commit wire fraud and three counts of wire fraud and two counts of money laundering. The indictment alleges the couple defrauded a grant program administered by the Illinois Department of Commerce and Economic Opportunity (DCEO.) The indictment alleges the couple fraudulently used the $1,250,000 awarded in 2009 under the Employment Opportunities Grant Program. The February 2013 indictment superseded an indictment returned in June 2012, which charged Ronald as well as his wife, who was initially indicted in April 2012, charged with mail fraud and two counts of money laundering.
The affidavit filed in support of the recent criminal complaint alleges that Evans directed a witness to give false testimony in the continuation of the investigation involving uncharged persons and offenses. According to the affidavit, as part of an ongoing grand jury investigation, and following the grand jury return of the superseding indictment in June 2012, investigators identified and obtained evidence of potential uncharged money laundering offenses related to bank and bank transaction records associated with an Evans bank account for We Are Our Brothers Keeper grant funds. Records revealed that between Nov. 1, 2009 and Dec. 31, 2009, a total of more than $90,000 in checks was allegedly issued to associates of the Evanses. More than $50,000 was allegedly cashed at the bank where a grant account was held and proceeds of a check to an associate were converted to cash and allegedly deposited back into an account controlled by the Evanses.
The affidavit details various testimony provided by a close associate of Regina Evans. The associate, identified as “Individual A” in the affidavit was interviewed by law enforcement at various times, beginning on Mar. 23, 2012, and testified before the grand jury in February 2013.
In early February 2013, “Individual A” was interviewed again and admitted that “A” did no training for the grant program and that at Regina Evans’ direction, checks were cashed and the money was returned to Evans. Further, the affidavit alleges that Regina instructed “Individual A” to tell investigators that “A” received the checks for teaching ‘soft skills’ classes and that “A” used the money to pay bills.
Assistant U.S. Attorney Timothy A. Bass is prosecuting the cases 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. The Illinois Department of Commerce and Economic Development is also cooperating in the investigation. 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.
According to the second superseding indictment, at the time of the alleged fraud, from February 2009 to June 2010, Regina and Ronald Evans owned various for-profit and not-for-profit entities, including the Prime Time Group, Inc., the Regal Theater, LLC. and We Are Our Brother’s Keeper (WAOBK.) In February 2009, on behalf of WAOBK, Evans and her husband applied for grant funding offered under the Employment Opportunities Grant Program. The grant agreement provided for an estimated 40 project participants to focus on bricklaying and electrical pre-apprenticeship training and GED preparation, and a project location at the Regal Theater. In September 2009, DCEO disbursed the $1,250,000 award for the two-year period, beginning on June 1, 2009, and ending on May 31, 2011.
In fact, according to the indictment, both Regina and Ronald Evans well knew that little, if any, of the EOGP training would be or was completed. Instead, the indictment alleges that the defendants concealed their true financial status and that of their various business interests from DCEO and their intent to use a substantial portion of the grant funds shortly after their disbursement for repayment of indebtedness, including delinquent mortgage indebtedness for the Regal Theater.
If convicted, the offense of conspiracy to commit witness tampering and obstruction of justice carries a statutory penalty of up to five years in prison; for witness tampering the penalty is up to 20 years in prison; and for obstruction of justice, the penalty is up to 10 years in prison. If convicted of any of these charged offenses, the penalty is served consecutive to any sentence ordered for the underlying offense.
Members of the public are reminded that a complaint and indictment are merely accusations; the defendants are presumed innocent unless proven guilty.
Note / Opinion / EditorialRead the Press Release
NOTE:
The attached opinion / editorial, personally prepared and written by Central District of Illinois U.S. Attorney Jim Lewis and Federal Public Defender Jonathan E. Hawley, commemorates the 50th anniversary on March 18, 2013, of the U.S. Supreme Court’s decision in Gideon v. Wainright, that secured the right to counsel for indigent criminal defendants.
Please consider using the remarks as a ‘Letter to the Editor,’ as a separate ‘Op-Ed’ item, or for follow up in any manner your entity determines is appropriate.
For further discussion of this issue, U.S. Attorney Lewis is available by contacting 217-492-4450; Federal Public Defender Jonathan E. Hawley may be reached at 309-671-7891.
Thank you,
Sharon J. Paul
Public Information Officer
U.S. Attorney’s Office
Central District of Illinois
217-492-4450OPINION / EDITORIAL
In March 1963, fifty years ago, the United States Supreme Court decided Gideon v. Wainwright, holding that every defendant who faces a serious criminal charge has the right to an attorney, and that this attorney will be at government expense if the defendant cannot afford one. This was a landmark decision for all of us who believe in fair trials, and we, as the United States Attorney and the Federal Public Defender for the Central District of Illinois, wish to acknowledge and celebrate this historic and memorable decision.
Before Gideon, people went to trial all too often without an attorney to stand with them. It wasn't fair. It wasn't just. It did not live up to our purposes and ideals.
Our Constitution's Preamble speaks truly, saying that we should establish justice. In the Gideon decision, the Supreme Court spoke truly, saying that "lawyers in criminal courts are necessities, not luxuries." In an earlier case, the Supreme Court spoke truly, saying that the prosecutor's goal “in a criminal prosecution is not that it shall win a case, but that justice shall be done." We believe that our justice system has to do its best to get it right the first time, because there is so much at stake for the individual and the community.
How are we doing, fifty years after Gideon? Our system is certainly much better, but we should not declare that the work is done. All too often, attorneys for indigent defendants do not have the funds and resources to handle the large caseloads. We need to fulfill our promise, and we can do so. We can establish model standards and expectations for public defense, we can look at our systems and see if there is fully effective representation, and we can strengthen our justice system whenever it does not fully serve its purpose: fair trials and just results.
Let us all celebrate this Supreme Court decision. And let us ensure that we meet its challenge, its promise and its purpose: equal justice under law.
James A. Lewis
U.S. Attorney, Central District of IllinoisJonathan E. Hawley
Federal Public Defender, Central District of IllinoisChicago Man to Serve Three Consecutive Life Sentences for Danville Murders Related to Drug-TraffickingRead the Press Release
Urbana, Ill. – U.S. District Judge Michael P. McCuskey today ordered a Chicago man to remain in prison for life. Freddell Bryant, 34, was convicted in December 2012 for using a firearm during a drug-trafficking crime that resulted in the deaths of three people in Danville, Ill., nearly six years ago. Bryant, also known as “Freddy Moe,” was ordered to serve three life prison sentences consecutive to each other and consecutive to the 25-year federal prison term he is currently serving for his role in the underlying cocaine and crack cocaine distribution conspiracy.
On Dec. 10, 2012, a jury convicted Bryant for causing the deaths on Mar. 27, 2007, of Rodney Pepper, 30; Madisen E. Leverenz, 19; and Tabreyan L. McCullough, 21. During the trial, the government presented evidence that on March 24, 2007, Bryant learned that multiple kilograms of cocaine that he had McCullough hold for him had been taken from her Danville home. On March 25, 2007, Bryant and others took McCullough to an apartment at 1707 East Main Street to confront Leverenz and Pepper, whom Bryant believed were involved in taking the cocaine. Further evidence was presented that during the ensuing confrontation, Bryant used and carried a firearm during and in relation to the drug conspiracy and that he used the firearm which resulted in the murder of Pepper, Leverenz and McCullough.
In March 2009, Bryant pled guilty to conspiracy to distribute crack cocaine and possession with intent to distribute crack cocaine in Vermilion County from October 2003 to March 2007. Bryant was sentenced on Apr. 29, 2010, to serve 300 months (25 years) in federal prison. Bryant has remained in federal law enforcement custody since his arrest in Chicago in May 2007.
The charges were investigated by the U.S. Drug Enforcement Administration, the Danville Police Department, the Vermilion County Metropolitan Enforcement Group, and the Illinois State Police. The government was represented by Assistant U.S. Attorneys Eugene L. Miller and Jason M. Bohm. The case was prosecuted by the U.S. Attorney’s Office for the Central District of Illinois, Urbana Division, in cooperation with the Vermilion County State’s Attorney’s office.
Four Face Federal Charges of Methamphetamine Manufacturing and DistributionRead the Press Release
Lead Defendant Considered Knox County’s ‘Most Wanted’
Galesburg, Ill. – A grand jury has charged a Galesburg, Ill., man, Steven M. Cramer, 49, and three others, with a single count of conspiracy to manufacture and distribute methamphetamine over the past four years. Cramer, of the 800 block of Abingdon Street, is charged, along with Amanda Jo Davis, 31, of the 100 block of Arthur Street; Lloyd L. Bell, 45, of the 1300 block of Rona Drive; and Jeremy N. Epperson, 38, of the 1000 block of Lyman Street, Galesburg, Ill.
The grand jury returned the indictment on Feb. 21; however, the indictment remained sealed pending the defendants’ arrests and initial appearances in federal court in Peoria. Cramer was previously arrested and charged in state court. Davis was taken into law enforcement custody on Mar. 3; Bell and Epperson were arrested on Mar. 1. The defendants appeared on Monday, before U.S. Magistrate Judge John A. Gorman. Cramer, Bell, and Epperson were ordered to remain detained in the custody of the U.S. Marshals Service; Davis was released on a recognizance bond. Trial is scheduled on Apr. 15, 2013, before Senior U.S. District Judge Michael M. Mihm.
Jim Lewis, U.S. Attorney for the Central District of Illinois, today joined Knox County Sheriff David Clague; Knox County State’s Attorney John Pepmeyer; Galesburg Police Chief David Christensen; Rene Sandoval, Director of the Multi-county Narcotic Enforcement Group, known as PMEG; and Illinois State Police, to announce the indictment. The case is being prosecuted in federal court by Assistant U.S. Attorney Tate Chambers.
The indictment alleges that Cramer, identified in January 2013 by Knox County law enforcement as its ‘most wanted’ violent offender, conspired with Davis, Bell and Epperson, and others, to manufacture and distribute methamphetamine in Knox County. The indictment charges the four with participating in the conspiracy over a four-year period, beginning in or about January 2009 and continuing to January 2013, and involving more than 500 grams of methamphetamine.
If convicted, the penalty for the offense carries a statutory mandatory minimum penalty of 10 years to life in prison. If a defendant has one prior felony drug conviction, the mandatory minimum penalty is enhanced to 20 years to life in prison. With two or more prior felony drug convictions, the statutory penalty is life in prison without parole.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Three Face Federal Charges in Armed Robbery of Convenience StoreRead the Press Release
Peoria, Ill. – Two local men and a woman face federal charges in the July 1, 2012, armed robbery of the Casey’s convenience store in Washington, Ill. Those charged with interference with commerce by robbery, known as the Hobbs Act, are: Todd Lawson, 23, no known address; Whitney Graham, 21, of Sun Valley Court, East Peoria; and Lucious Turntine, 24, of the 900 block of S. Sumner, Peoria, Ill.
The indictment alleges that Lawson, Graham and Turntine conspired and worked together to commit the armed robbery of Casey’s General Store in Washington, Ill., on July 1, 2012. Graham allegedly drove Lawson and Turntine to the area and provided them with the store’s safe combination. According to the indictment, Lawson and Turntine entered the store and while one held the clerk at gunpoint, the other opened the safe and took money. Graham then allegedly drove the two away from the store.
The charges were announced this afternoon by U.S. Attorney Jim Lewis, Central District of Illinois, and Tazewell County State’s Attorney Stewart J. Umholtz; Matthew Galecki, Acting Resident Agent in Charge for the Springfield Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Washington Police Chief James W. Kuchenbecker; Peoria Police Chief Steven M. Settingsgaard; Master Sergeant Kenneth Mullen, Illinois State Police; Tazewell County Sheriff Robert M. Huston; and Pekin Police Chief Greg Nelson. The case is being prosecuted in federal court by Assistant U.S. Attorney Tate Chambers.
The three-count indictment was returned by the grand jury last week, but remained sealed pending the defendants’ respective court appearances yesterday. The three are each charged with interference of commerce by robbery; using or carrying a firearm during a crime of violence; and conspiracy to use or carry a firearm in relation to a crime of violence. All were ordered to remain in the custody of the U.S. Marshals Service pending trial, scheduled for May 6, 2013, before Chief U.S. District Judge James E. Shadid.
If convicted, the Hobbs Act offense carries a maximum statutory penalty of up to 20 years in prison. Use or carrying a firearm during and in relation to a violent crime carries a mandatory minimum of 10 years in prison and up to life, to be served consecutive to any term of imprisonment ordered for the underlying crime of violence. For conspiracy to use or carry a firearm in relation to a crime of violence, the penalty is up to 20 years in prison.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Pekin Man Charged with Heroin Trafficking ConspiracyRead the Press Release
Charges Include Distribution of Heroin Resulting in Three Deaths
Peoria, Ill. – A Pekin, Ill., man faces federal charges of conspiracy to distribute heroin and distribution of heroin resulting in three deaths. Anthony Mansini, 22, of the 4400 block of Meadow Drive, made his initial appearance in federal court yesterday. Trial was scheduled for May 6, 2013, before Chief U.S. District Judge James E. Shadid, and Mansini was ordered to remain in the custody of the U.S. Marshals Service.
A federal grand jury returned the indictment against Mansini last week; however, the case had remained sealed pending his court appearance. The 11-count indictment charges Mansini with one count of conspiracy to distribute more than 1,000 grams of heroin, three counts of distribution of heroin resulting in death, and seven counts of distribution of heroin.
The charges were announced this afternoon by U.S. Attorney Jim Lewis, Central District of Illinois, and Tazewell County State’s Attorney Stewart J. Umholtz, with members of the Tazewell County Major Crimes Task Force and the Peoria Metropolitan Enforcement Group, Director Rene Sandoval; the Drug Enforcement Administration, Glenn Haas, Resident Agent in Charge, Springfield Field Office; Master Sergeant Kenneth Mullen, Illinois State Police; Tazewell County Sheriff Robert M. Huston; Pekin Police Chief Greg Nelson; East Peoria Chief Dick Ganschow; Morton Deputy Chief Jason Miller; and Washington Chief James W. Kuchenbecker. The case is being prosecuted in federal court by Assistant U.S. Attorney Tate Chambers.
The indictment alleges that from about 2008 to December 2012, Mansini conspired with others to distribute more than 1,000 grams of heroin and possession of more than 1,000 grams of heroin with intent to distribute. Mansini is also charged with distribution of heroin that resulted in death on Aug. 25, 2012; Nov. 12, 2012; and on Nov. 15, 2012. The indictment’s seven remaining counts allege distribution of heroin on various dates in December 2012.
If convicted, each count of conspiracy to distribute more than 1,000 grams of heroin and possession of more than 1,000 grams of heroin with intent to distribute, and for distribution of heroin, the statutory penalty is up to 20 years in prison; if a defendant has one or more prior felony drug convictions, the penalty is up to 30 years in prison. If it is found that death or serious bodily injury resulted from the use of the heroin, the penalty is a mandatory 20 years in prison to life sentence.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Former Logan County Bank President Pleads Guilty to Embezzling from BankRead the Press Release
Springfield, Ill. – The former president of a Logan County bank, Bryson John Russell, 65, of Lincoln, Ill., today admitted that he has embezzled funds from the Hartsburg State Bank. During his appearance before U.S. Magistrate Judge Byron Cudmore, Russell waived indictment and entered a plea of guilty to a single count of embezzlement as charged in an information filed on Feb. 20, 2013, by the U.S. Attorney’s Office for the Central District of Illinois.
According to court documents and statements made during today’s hearing, the government estimates the total loss to the bank to be between $376,000 and approximately $562,292. According to statements presented by the government during today’s hearing, Russell began working at Hartsburg State Bank, in Hartsburg, Ill., in 1966. He became bank president in 1989.
Russell admitted that he began taking cash from the bank to pay for personal items and obligations. At some point, 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. Further, 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.
Sentencing for Russell is scheduled on June 27, 2013, before U.S. District Judge Richard Mills. For the offense of embezzlement, the statutory penalty is up to 30 years in prison and a fine of up to $1,000,000. The defendant may also be ordered to pay restitution to the victim.
The charges were investigated by the Federal Bureau of Investigation in coordination with the Hartsburg State Bank. Assistant U.S. Attorney Patrick D. Hansen is prosecuting the case.
Former Director for Chicago Black Nurses Association Pleads Guilty to Fraud SchemeRead the Press Release
Springfield, Ill. – A former program director for the Chicago Chapter of the National Black Nurses Association, Margaret A. Davis, 62, entered pleas of guilty this afternoon to mail fraud and money laundering in a scheme that defrauded state grant programs from 2005 to 2009. Davis appeared before U.S. District Judge Sue E. Myerscough, who scheduled sentencing for July 22, 2013. According to terms of the conditional plea agreement, Davis faces a sentence of no more than 41 months in prison. Davis may also be ordered to pay restitution. Davis was allowed to remain on bond pending sentencing.
In court documents and during today’s hearing, Davis admitted that from December 2005 to June 2009, she 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. Davis represented that the grant funds and contracts would be used to conduct 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.
Instead, Davis admitted that she, with the assistance of former chapter treasurer Tonja Cook, 45, commingled and converted a substantial amount of funds to Davis’s personal use and to Davis’s family members, friends and associates; to a not-for-profit healthcare advocacy organization known as the African American Aids Network, which Davis controlled; and, for the personal use and benefit of Cook.
Davis admitted that more than $200,000 in grant funds was converted to cash by cashing numerous checks at a currency exchange located near Davis’s residence. Further, Davis admitted that she caused more than $100,000 in grant funds to be made payable to AAAN by failing to disclose her interest in the organization to the State of Illinois, concealed the amount of grant and contract funds to be disbursed to AAAN, and forged the name of a co-signatory on AAAN bank account checks. Davis admitted that she deposited $125,000 in grant proceeds, converted to cash, into her personal bank account and used the funds for payment of personal expenses, including payments for her mortgage, utility and credit card expenses.
Sentencing for Cook is currently scheduled for Mar. 25, 2013; however, a motion to continue the sentencing date is pending. On Nov. 26, 2012, Cook entered a plea of guilty to a single count of mail fraud related to the scheme to defraud. Cook remains on bond pending sentencing.
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 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.
Former State Corrections Officer Pleads Guilty to Child Pornography OffensesRead the Press Release
Springfield, Ill. – A former Illinois prison guard, Steven L. Carson, of Hillsboro, Ill., has entered pleas of guilty to charges that he sexually exploited a minor, and that he distributed and possessed images of child pornography. Carson, 46, appeared in federal court in Springfield on Feb. 21, 2013, before U.S. Magistrate Judge Byron Cudmore. Sentencing has been scheduled before U.S. District Judge Richard Mills on June 21, 2013.
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. In court documents and during the court hearing, Carson admitted that in January 2000, 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. Carson also agreed to forfeiture of computers and related electronic equipment.
The statutory penalty for sexual exploitation of a minor is a mandatory minimum of 10 years in prison to 20 years in prison. For distribution of child pornography, the penalty is a mandatory minimum of five years to 20 years in prison; for possession of child pornography, the penalty is up to 10 years in prison. The defendant may also be ordered to remain on supervised release for a term up to life.
The charges are the result of an investigation by the FBI. The case is being prosecuted by Assistant U.S. Attorneys Gregory K. Harris and Bryan D. Freres.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former State Corrections Officer Pleads Guilty to Child Pornography OffensesRead the Press Release
Springfield, Ill. – A former Illinois prison guard, Steven L. Carson, of Hillsboro, Ill., has entered pleas of guilty to charges that he sexually exploited a minor, and that he distributed and possessed images of child pornography. Carson, 46, appeared in federal court in Springfield on Feb. 21, 2013, before U.S. Magistrate Judge Byron Cudmore. Sentencing has been scheduled before U.S. District Judge Richard Mills on June 21, 2013.
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. In court documents and during the court hearing, Carson admitted that in January 2000, 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. Carson also agreed to forfeiture of computers and related electronic equipment.
The statutory penalty for sexual exploitation of a minor is a mandatory minimum of 10 years in prison to 20 years in prison. For distribution of child pornography, the penalty is a mandatory minimum of five years to 20 years in prison; for possession of child pornography, the penalty is up to 10 years in prison. The defendant may also be ordered to remain on supervised release for a term up to life.
The charges are the result of an investigation by the FBI. The case is being prosecuted by Assistant U.S. Attorneys Gregory K. Harris and Bryan D. Freres.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Grand Jury Indicts Henry County Man Charged with Production, Possession of Child PornograpyRead the Press Release
Rock Island, Ill. – A federal grand jury has returned an indictment charging a Henry county man, Steven D. Ford, 27, of Cambridge, Ill., with production and possession of child pornography. Ford was previously arrested and charged by federal criminal complaint in July 2012. Ford has remained in federal law enforcement custody since his arrest; the court granted Ford’s request for psychiatric evaluation at a federal Bureau of Prisons facility. During a court hearing on Jan. 29, 2013, before U.S. Magistrate Judge Thomas J. Shields, Ford was determined mentally competent and remanded to the custody of the U.S. Marshals Service.
The indictment charges Ford with two counts of production of child pornography and one count of possession of child pornography. The crimes allegedly occurred from June 2011 to July 2012. The indictment also seeks forfeiture of Ford’s computer, cell phone and related equipment allegedly used in the offenses.
The charges were investigated by the U.S. Secret Service, the Henry County Sheriff’s Office and the Davenport Police Department. The case is being prosecuted by Assistant U.S. Attorney Kirk W. Schuler.
If convicted, the statutory penalty for each count of production of child pornography is a mandatory minimum 15 years to 30 years in prison. For possession of child pornography, the penalty is up to 20 years in prison. Each of the child pornography offenses carry terms of supervised release of up to life following any term of imprisonment.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Grand Jury Indicts Henry County Man Charged with Production, Possession of Child PornographyRead the Press Release
Rock Island, Ill. – A federal grand jury has returned an indictment charging a Henry county man, Steven D. Ford, 27, of Cambridge, Ill., with production and possession of child pornography. Ford was previously arrested and charged by federal criminal complaint in July 2012. Ford has remained in federal law enforcement custody since his arrest; the court granted Ford’s request for psychiatric evaluation at a federal Bureau of Prisons facility. During a court hearing on Jan. 29, 2013, before U.S. Magistrate Judge Thomas J. Shields, Ford was determined mentally competent and remanded to the custody of the U.S. Marshals Service.
The indictment charges Ford with two counts of production of child pornography and one count of possession of child pornography. The crimes allegedly occurred from June 2011 to July 2012. The indictment also seeks forfeiture of Ford’s computer, cell phone and related equipment allegedly used in the offenses.
The charges were investigated by the U.S. Secret Service, the Henry County Sheriff’s Office and the Davenport Police Department. The case is being prosecuted by Assistant U.S. Attorney Kirk W. Schuler.
If convicted, the statutory penalty for each count of production of child pornography is a mandatory minimum 15 years to 30 years in prison. For possession of child pornography, the penalty is up to 20 years in prison. Each of the child pornography offenses carry terms of supervised release of up to life following any term of imprisonment.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Grand Jury Charges Peoria Teacher with Enticing A Minor for SexRead the Press Release
Peoria, Ill. – A federal grand jury today returned an indictment charging a Peoria, Ill., teacher with enticement of a minor. Amanda May Ludwig, 28, a teacher at Manual High School in Peoria, Ill., was previously arrested and charged with the offense in a federal criminal complaint filed on Feb. 4, 2013.
Following Ludwig’s arrest, she appeared on Feb. 11, 2013, before U.S. District Judge Michael M. Mihm in Peoria. Ludwig was released from custody to a third-party custodian under home incarceration.
The indictment alleges that from about Aug. 4, 2012, to Jan 31, 2013, Ludwig used a cellular telephone to entice a minor, under the age of 18, to engage in sexual activity.
The charges were investigated by the Peoria Police Department with assistance from officers of Peoria School District 150. The case is being prosecuted by Assistant U.S. Attorney Thomas A. Keith.
If convicted, the statutory penalty for the offense is 10 years to life in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
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.
Grand Jury Charges Peoria Teacher with Enticing A Minor for SexRead the Press Release
Peoria, Ill. – A federal grand jury today returned an indictment charging a Peoria, Ill., teacher with enticement of a minor. Amanda May Ludwig, 28, a teacher at Manual High School in Peoria, Ill., was previously arrested and charged with the offense in a federal criminal complaint filed on Feb. 4, 2013.
Following Ludwig’s arrest, she appeared on Feb. 11, 2013, before U.S. District Judge Michael M. Mihm in Peoria. Ludwig was released from custody to a third-party custodian under home incarceration.
The indictment alleges that from about Aug. 4, 2012, to Jan 31, 2013, Ludwig used a cellular telephone to entice a minor, under the age of 18, to engage in sexual activity.
The charges were investigated by the Peoria Police Department with assistance from officers of Peoria School District 150. The case is being prosecuted by Assistant U.S. Attorney Thomas A. Keith.
If convicted, the statutory penalty for the offense is 10 years to life in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
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.
Tuscola Woman Charged with Embezzling $340,000 from Former Employer, Filing False Tax ReturnsRead the Press Release
Urbana, Ill. – A grand jury today returned an indictment that charges Karyn E. Graham, 43, of Tuscola, Ill., with embezzling more than $340,000 from her former employer, a Champaign county, Ill., farm machinery and implement company, and filing false income tax returns. Graham will be issued a summons to appear in federal court in Urbana for arraignment on a date to be determined by the U.S. Clerk of the Court.
Graham is charged with one count of wire fraud and four counts of filing a false income tax return. The indictment alleges that from 2006 to early 2010, Graham used her position as the accounting manager at Shaff Implement and Shaff Machinery Company to divert approximately $340,000 from the business for her own use and personal benefit. Specifically, the indictment alleges that Graham used the company’s credit card to make personal purchases of approximately $147,000 as well as the company’s Sam’s Club card to make personal purchases totaling more than $51,000; wrote unauthorized checks payable to herself or various payees totaling approximately $69,000; paid approximately $16,000 to her personal credit cards; deposited more than $12,000 in her personal bank accounts; and paid more than $8,500 for her personal cell phone bill.
The indictment further alleges that Graham failed to report money she had fraudulently diverted from Shaff’s accounts when she filed her federal income tax returns for 2006, 2007, 2008, and 2009. Specifically, the indictment alleges that Graham omitted approximately $14,079 from her 2006 return; $25,318 from her 2007 return; $162,394 from her 2008 return; and $141,460 from her 2009 return. The indictment alleges the total estimated additional tax owed as approximately $103,201 for the four-year period.
The charges are the result of an investigation by the Internal Revenue Service Criminal Investigation Division and the Champaign County Sheriff’s Office, in cooperation with Shaff Implement and Shaff Machinery Company. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
If convicted, the offense of wire fraud carries a maximum statutory penalty of 20 years in prison and fines of up to $250,000. For each count of filing a false income tax return, the penalty is up to three years in prison and fine of up to $100,000. Final sentences are determined by the court. In imposing sentence, the court may consider federal sentencing guidelines, which include a defendant’s criminal history, the amount of loss, and other applicable factors.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Tuscola Woman Charged with Embezzling $340,000 from Former Employer, Filing False Tax ReturnsRead the Press Release
Urbana, Ill. – A grand jury today returned an indictment that charges Karyn E. Graham, 43, of Tuscola, Ill., with embezzling more than $340,000 from her former employer, a Champaign county, Ill., farm machinery and implement company, and filing false income tax returns. Graham will be issued a summons to appear in federal court in Urbana for arraignment on a date to be determined by the U.S. Clerk of the Court.
Graham is charged with one count of wire fraud and four counts of filing a false income tax return. The indictment alleges that from 2006 to early 2010, Graham used her position as the accounting manager at Shaff Implement and Shaff Machinery Company to divert approximately $340,000 from the business for her own use and personal benefit. Specifically, the indictment alleges that Graham used the company’s credit card to make personal purchases of approximately $147,000 as well as the company’s Sam’s Club card to make personal purchases totaling more than $51,000; wrote unauthorized checks payable to herself or various payees totaling approximately $69,000; paid approximately $16,000 to her personal credit cards; deposited more than $12,000 in her personal bank accounts; and paid more than $8,500 for her personal cell phone bill.
The indictment further alleges that Graham failed to report money she had fraudulently diverted from Shaff’s accounts when she filed her federal income tax returns for 2006, 2007, 2008, and 2009. Specifically, the indictment alleges that Graham omitted approximately $14,079 from her 2006 return; $25,318 from her 2007 return; $162,394 from her 2008 return; and $141,460 from her 2009 return. The indictment alleges the total estimated additional tax owed as approximately $103,201 for the four-year period.
The charges are the result of an investigation by the Internal Revenue Service Criminal Investigation Division and the Champaign County Sheriff’s Office, in cooperation with Shaff Implement and Shaff Machinery Company. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
If convicted, the offense of wire fraud carries a maximum statutory penalty of 20 years in prison and fines of up to $250,000. For each count of filing a false income tax return, the penalty is up to three years in prison and fine of up to $100,000. Final sentences are determined by the court. In imposing sentence, the court may consider federal sentencing guidelines, which include a defendant’s criminal history, the amount of loss, and other applicable factors.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Grand Jury Returns Indictment Charging Jacksonville Man with Conspiracy to Distribute Crack CocaineRead the Press Release
Springfield, Ill. – A grand jury has returned a seven-count indictment against a Jacksonville, Ill., man, Michael Smith, 36, of the 200-block of Howe Street, for distribution of crack cocaine and heroin. Smith was charged last week by criminal complaint with possession with intent to distribute 280 grams or more of crack cocaine on or about Jan. 16, 2013.
The indictment charges Smith with conspiracy to distribute 280 grams or more of crack cocaine (one count); possession of 280 grams or more of crack cocaine with intent to distribute (one count); possession of heroin with intent to distribute (one count); and four counts of distribution of crack cocaine in December 2012 and January 2013.
The affidavit filed in support of the criminal complaint alleges that in December 2012 and January 2013, law enforcement officers with DEA and the Central Illinois Enforcement Group made controlled purchases of crack cocaine from Smith. Agents also executed a federal search warrant at Smith’s residence on Jan. 16, 2013. Officers recovered suspected marijuana and a Highpoint 9mm semi-automatic pistol and ammunition, as well as approximately 564 grams of crack cocaine and approximately 80 grams of heroin from under the hood of a pickup truck.
U.S. Magistrate Judge Byron G. Cudmore has ordered that Smith remain detained in the custody of the U.S. Marshals Service.
If convicted, the statutory penalty for conspiracy to distribute 280 grams or more of crack cocaine and for possession with intent to distribute 280 grams or more of crack cocaine is a mandatory minimum 10 years to life in prison. If the defendant has a prior drug felony conviction, the mandatory minimum penalty is 20 years to life in prison. For possession of heroin with intent to distribute and for each count of distribution of crack cocaine, the statutory penalty is up to 20 years in prison.
The charges are the result of an investigation by the Drug Enforcement Administration; the Central Illinois Enforcement Group; the Jacksonville Police Department; the Morgan County Sheriff’s Office; and Illinois State Police District Nine. The case is being prosecuted by Assistant U.S. Attorney Bryan D. Freres.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Grand Jury Returns Indictment Charging Jacksonville Man with Conspiracy to Distribute Crack CocaineRead the Press Release
Springfield, Ill. – A grand jury has returned a seven-count indictment against a Jacksonville, Ill., man, Michael Smith, 36, of the 200-block of Howe Street, for distribution of crack cocaine and heroin. Smith was charged last week by criminal complaint with possession with intent to distribute 280 grams or more of crack cocaine on or about Jan. 16, 2013.
The indictment charges Smith with conspiracy to distribute 280 grams or more of crack cocaine (one count); possession of 280 grams or more of crack cocaine with intent to distribute (one count); possession of heroin with intent to distribute (one count); and four counts of distribution of crack cocaine in December 2012 and January 2013.
The affidavit filed in support of the criminal complaint alleges that in December 2012 and January 2013, law enforcement officers with DEA and the Central Illinois Enforcement Group made controlled purchases of crack cocaine from Smith. Agents also executed a federal search warrant at Smith’s residence on Jan. 16, 2013. Officers recovered suspected marijuana and a Highpoint 9mm semi-automatic pistol and ammunition, as well as approximately 564 grams of crack cocaine and approximately 80 grams of heroin from under the hood of a pickup truck.
U.S. Magistrate Judge Byron G. Cudmore has ordered that Smith remain detained in the custody of the U.S. Marshals Service.
If convicted, the statutory penalty for conspiracy to distribute 280 grams or more of crack cocaine and for possession with intent to distribute 280 grams or more of crack cocaine is a mandatory minimum 10 years to life in prison. If the defendant has a prior drug felony conviction, the mandatory minimum penalty is 20 years to life in prison. For possession of heroin with intent to distribute and for each count of distribution of crack cocaine, the statutory penalty is up to 20 years in prison.
The charges are the result of an investigation by the Drug Enforcement Administration; the Central Illinois Enforcement Group; the Jacksonville Police Department; the Morgan County Sheriff’s Office; and Illinois State Police District Nine. The case is being prosecuted by Assistant U.S. Attorney Bryan D. Freres.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Former State Corrections Accountant Pleads Guilty to Embezzling $77,000 from Various Department FundsRead the Press Release
Springfield, Ill. – A former employee of the Illinois Department of Corrections, Mary Ann Bohlen, 46, of Edinburg, Ill., admitted today that she embezzled approximately $77,000 from various department funds over a period of four years, from 2007 to 2011. During her appearance before U.S. Magistrate Judge Byron Cudmore, Bohlen waived indictment and entered pleas of guilty to two counts of mail fraud and two counts of embezzlement of government funds as charged in an information filed Feb. 1, 2013, 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 22, 2007, to July 19, 2011, she embezzled more than $50,000 from the Illinois Correctional Employees Memorial Association. As a further part of the scheme, Bohlen admitted that from about Mar. 6, 2008, to April 27, 2011, she 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 business sold various products including Illinois wine, cheese, pizza, elk products, soy candles and other items.
Sentencing for Bohlen is scheduled on Jun. 10, 2013, before U.S. District Judge Sue E. Myerscough. Each count of mail fraud carries a statutory penalty of up to 20 years in prison; each count of embezzlement carries penalties of up to 10 years in prison.
The charges were investigated by the Illinois State Police and the U.S. Postal Inspection Service. Assistant U.S. Attorney Gregory K. Harris is prosecuting the case.
Former State Corrections Accountant Pleads Guilty to Embezzling $77,000 from Various Department FundsRead the Press Release
Springfield, Ill. – A former employee of the Illinois Department of Corrections, Mary Ann Bohlen, 46, of Edinburg, Ill., admitted today that she embezzled approximately $77,000 from various department funds over a period of four years, from 2007 to 2011. During her appearance before U.S. Magistrate Judge Byron Cudmore, Bohlen waived indictment and entered pleas of guilty to two counts of mail fraud and two counts of embezzlement of government funds as charged in an information filed Feb. 1, 2013, 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 22, 2007, to July 19, 2011, she embezzled more than $50,000 from the Illinois Correctional Employees Memorial Association. As a further part of the scheme, Bohlen admitted that from about Mar. 6, 2008, to April 27, 2011, she 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 business sold various products including Illinois wine, cheese, pizza, elk products, soy candles and other items.
Sentencing for Bohlen is scheduled on Jun. 10, 2013, before U.S. District Judge Sue E. Myerscough. Each count of mail fraud carries a statutory penalty of up to 20 years in prison; each count of embezzlement carries penalties of up to 10 years in prison.
The charges were investigated by the Illinois State Police and the U.S. Postal Inspection Service. Assistant U.S. Attorney Gregory K. Harris is prosecuting the case.
Former Investment Advisor to Serve 12 ½ Years in Prison for $16 Million Mail Fraud, Money Laundering SchemeRead the Press Release
Peoria, Ill. – A former Urbana, Ill., investment advisor, Timothy J. Roth, 57, currently of Stonington, Ill., was sentenced this afternoon in federal court in Peoria, to serve 151 months (12 years, 7 months) in prison and ordered to pay restitution in the amount of $16,151,964 to victims of his fraud scheme. Senior U.S. District Judge Michael M. Mihm ordered that Roth report on Apr. 2, 2013, to the federal Bureau of Prisons to begin serving his prison term. Following completion of his prison sentence, Roth was ordered to remain on supervised release for a period of three years.
On Oct. 25, 2011, Roth waived indictment and entered guilty pleas to one count each of mail fraud and money laundering. Roth admitted that from May 2004 through March 2011, he defrauded eleven victims, including companies and individual victims, of approximately $16 million.
According to court documents and statements, Roth admitted that he fraudulently transferred, liquidated and removed mutual fund shares from clients’ accounts for his own personal and business use. Since June 2002, Roth had worked as a federally registered investment advisor for a capital management company in Champaign, Ill., and had also formed and operated several personal consulting companies. These companies provided software and tracking and management programs to various outside third party administrators for mutual fund option plans.
The investigation was conducted by the Internal Revenue Service, Criminal Investigations Division; the Federal Bureau of Investigation; the U.S. Postal Inspection Service; the Securities Department of the Illinois Secretary of State; and the Champaign Police Department. The case was prosecuted by Assistant U.S. Attorneys David H. Hoff and Eric I. Long.
Former Business Owner Sentenced to More Than Two Years in Prison for Defrauding IRSRead the Press Release
Urbana, Ill. – A Washington, Ill., man, Imad Ribhi Abdallah, has been sentenced to more than two years in federal prison. On Monday, Jan. 14, 2013, U.S. District Judge Michael P. McCuskey ordered that Abdallah, a former owner of Ayat 1, Inc., which operated as Price Rite Food & Liquor in Decatur, Ill., and Genan 1 Inc., which operated as Super Saver Liquor in Peoria, Ill., serve 27 months in federal prison for conspiracy to defraud the IRS, mail fraud, and making false statements concerning health care benefits. According to court documents, Abdallah was also ordered to pay restitution in the amounts of $638,894 to the IRS in unpaid taxes and $27,320 to the Illinois Department of Human Services related to fraudulently obtained benefits. Abdallah was ordered to report on Feb. 20, 2013, to the Federal Bureau of Prisons to begin serving his prison sentence.
On Jan. 21, 2011, Abdallah entered pleas of guilty to one count of conspiracy to defraud the IRS related to corporate income tax returns filed on behalf of Genan 1 Inc. and Ayat 1 Inc., which under-reported taxable income and tax due and owing. Abdallah also pled guilty to one count of mail fraud and one count of making false statements to obtain health care benefits.
The charges were investigated by the Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, and the Illinois Department of Revenue. The case was prosecuted by Assistant U.S. Attorney Elly M. Peirson.
Danville Man Sentenced to 14 ½ Years in Prison for Crack Cocaine, Weapons OffensesRead the Press Release
Urbana, Ill. – A Danville, Ill., man, Marquis D. Robinson, has been ordered to serve 175 months (14 years, 7 months) in federal prison for crack cocaine and weapons offenses. U.S. District Judge Michael P. McCuskey sentenced Robinson, last known address South Beard Street, Danville, Ill., on Monday, Jan. 14, 2013. Robinson was also ordered to remain on supervised release for a period of eight years following completion of his prison sentence.
Robinson has been in the custody of the U.S. Marshals Service since he was charged in federal court in October 2010. On Aug. 31, 2012, Robinson entered pleas of guilty to distribution of crack cocaine (one count); distribution of 28 grams or more of crack cocaine (one count); possession of 28 grams or more of crack cocaine with intent to distribute it (one count); and, possession of a firearm by a felon (one count.)
The charges were investigated by the Vermilion County Metropolitan Enforcement Group (VMEG) and the U.S. Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Final Defendant Sentenced in Kankakee Clean Air Act ProsecutionRead the Press Release
Urbana, Ill. – Michael Pinski, who previously pled guilty to violation of the Clean Air Act related to illegal and unsafe asbestos removal from a Kankakee, Ill., building he owned, has been sentenced. On Monday, Jan. 14, 2013, U.S. District Judge Michael P. McCuskey ordered that Pinski, 44, of Kankakee, Ill., serve six months in prison, followed by two years of supervised release including six months of home detention. Pinski was ordered to report to the federal Bureau of Prisons on Feb. 20, 2013. On Aug. 19, 2011, Pinski entered a plea of guilty to violating the Clean Air Act by failing to notify the Illinois EPA of an asbestos removal job that took place at a warehouse in Kankakee, Illinois that Pinski owned. Pinski was charged in June 2010, along with Duane “Butch” O’Malley, 60, of Bourbonnais, and James A. Mikrut, 50, of Manteno.
Mikrut, who pled guilty to five counts of violating the Clean Air Act, was sentenced on Sept. 20, 2012, to 12 months and one day in prison, followed by one year of supervised release under home detention. Mikrut was ordered to pay restitution of $47,085 to the Environmental Protection Agency along with co-defendant O’Malley. On July 25, 2012, O’Malley, convicted by a jury in September 2011, was sentenced to 10 years in prison, fined $15,000, and ordered to remain on supervised release for a period of three years following completion of his prison sentence.
Under provisions of the Clean Air Act, the EPA has promulgated rules, regulations and requirements to control the removal, handling and disposal of asbestos, a hazardous air pollutant. Any owner or operator of a renovation or demolition activity which involves removal of specified amounts of asbestos-containing material must comply with the EPA regulations.
Pinski pled guilty to violation of the Clean Air Act related to the illegal and unsafe removal of asbestos-containing insulation from pipes in a five-story building at 197 South West Ave., in Kankakee, that was owned by Pinski through his company, Dearborn Management, Inc. In August 2009, Pinski hired O’Malley, owner and operator of Origin Fire Protection. During O’Malley’s trial, the government presented evidence that neither O’Malley nor his company was trained to perform the asbestos removal work and that O’Malley agreed to remove the asbestos insulation for an amount that was substantially less than a trained asbestos abatement contractor would have charged to perform the work. Further, O’Malley arranged for Mikrut to recruit and oversee workers to remove the asbestos.
The government’s evidence showed that there was no notification of the planned asbestos removal work given to the Illinois EPA or the U.S. EPA, among other various violations of the Clean Air Act and EPA regulations.
The charges were investigated by the U.S. Environmental Protection Agency, Criminal Investigation Division, with assistance from the Illinois Environmental Protection Agency and the U.S. Environmental Protection Agency’s Superfund Division. Assistant U.S. Attorney Eugene L. Miller and Special Assistant U.S. Attorney James Cha prosecuted the case.
19 ½ Years in Prison for Man Who Produced Child Porn Images for Rent MoneyRead the Press Release
Springfield, Ill. – U.S. District Judge Sue E. Myerscough today sentenced Anthony L. Ferguson, 25, to serve 235 months (19 years, 7 months) in federal prison and to remain on supervised release for life following his release from prison. Ferguson has been detained in the custody of the U.S. Marshals Service since his arrest in March 2012, along with co-defendant Laura J. Sigler, 26.
In July 2012, Ferguson entered an open plea of guilty to using a five-year-old child to produce child pornography in November 2011, when Ferguson and Sigler were living at the Budget Inn in Lincoln, Ill. According to court documents, Ferguson and Sigler used the images of child pornography to secure rent money. On Dec. 6, 2012, Sigler pled guilty to the offense. Sentencing for Sigler is scheduled on Apr. 15, 2013.
The case was investigated by ICE’s Homeland Security Investigations and the Lincoln Police Department. Assistant U.S. Attorney Timothy A. Bass prosecuted the case on behalf of the government.
The case was prosecuted under 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.