Northern District of Illinois
Press releases recorded for this federal judicial district.
Former Illinois Department of Agriculture Investigator Sentenced to a Year in Prison for Obstructing JusticeRead the Press Release
CHICAGO — A former investigator for the Illinois Department of Agriculture has been sentenced to a year in federal prison for groping several women while on duty and then lying under oath about it during an official proceeding.
JOSE GUILLEN inappropriately touched and groped female operators of animal care facilities that he inspected for the State of Illinois. In his official capacity as a state investigator, Guillen had the power to influence whether an animal care facility received a license to operate and whether it could continue in operation after receiving the license.
When one of the victims filed a civil lawsuit against Guillen, he repeatedly lied under oath during a deposition in the case. In the deposition, Guillen stated that he touched the victim’s buttocks by accident. In a plea agreement with the U.S. Attorney’s Office to resolve the federal criminal case, Guillen admitted that he “intentionally touched [the victim’s] buttocks for purposes of his own sexual gratification.” Guillen also admitted in the plea agreement that he lied in his deposition when he denied having inappropriately touched four other animal care facility operators.
Guillen, 43, of Melrose Park, Ill., pleaded guilty last year to obstruction of justice. U.S. District Judge Joan Humphrey Lefkow imposed the year-and-a-day sentence during a hearing Wednesday in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.
“None of these women consented to the defendant’s lecherous advances,” Assistant U.S. Attorneys Amarjeet S. Bhachu and Diane MacArthur argued in the government’s sentencing memorandum. “It was only when confronted by a series of accusers who were brave enough to step forward to put a stop to his misconduct that the defendant capitulated and accepted responsibility for his serial wrongdoing by pleading guilty.”
Chicago Consultant Convicted of Federal Tax OffensesRead the Press Release
CHICAGO — A Chicago consultant has been convicted on federal tax offenses for underreporting and failing to file federal income taxes.
The jury in U.S. District Court in Chicago on Monday convicted ANNAZETTE COLLINS, 61, of Chicago, on four tax counts, including two counts of willfully filing a false individual income tax return, one count of willfully failing to file a corporate income tax return, and one count of willfully failing to file an individual income tax return. The jury acquitted Collins on two other tax counts.
U.S. District Judge Jorge L. Alonso set sentencing for June 21, 2024. Each felony count of filing a false individual income tax return is punishable by up to three years in federal prison. The misdemeanor counts of willfully failing to file individual or corporate income tax returns each carry a maximum sentence of one year in federal prison.
Evidence presented at trial revealed that Collins willfully filed a false individual tax return for the calendar years 2014 and 2015, and willfully failed to file an individual income tax return for the calendar year 2016. Collins also willfully failed to file a corporate income tax return for the calendar year 2016 on behalf of her consulting and lobbying business, Chicago-based Kourtnie Nicole Corp. Prior to operating her consulting business, Collins served in the Illinois General Assembly as a Representative and Senator.
The conduct for which Collins was convicted resulted in a federal tax loss of approximately $86,000.
The conviction was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorneys Michelle Parthum and Amarjeet S. Bhachu.
Suburban Chicago Accountant Guilty of Evading $3.4 Million in Federal and State Income TaxesRead the Press Release
CHICAGO — A suburban Chicago accountant has pleaded guilty to a federal tax offense for willfully evading more than $3.4 million in federal and state income taxes.
IMRAN MAHMOOD, 56, of South Barrington, Ill., pleaded guilty Thursday to a tax evasion charge before U.S. District Judge Sara L. Ellis. The conviction is punishable by a maximum sentence of five years in federal prison. Judge Ellis set sentencing for June 11, 2024, at 10:30 a.m.
The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. Valuable assistance was provided by the FBI Chicago Field Office. The government is represented by Assistant U.S. Attorney Patrick J. King, Jr.
Mahmood was a certified public accountant who provided accounting services for an Illinois not-for-profit organization and a related company. From 2011 to 2014, Mahmood obtained from the two entities approximately $9,084,984 – the majority of which came from the not-for-profit organization’s payroll accounts – and directed that the money be deposited with an entity Mahmood controlled. Mahmood then used the deposited funds to make personal expenditures.
Mahmood attempted to conceal the scheme by mischaracterizing payments in the books and records of the entities from which he obtained the money. Although Mahmood hired a tax professional to assist in filing Mahmood’s income tax returns, he failed to disclose to the professional all of the funds that he received and his ownership of the entity into which he deposited those funds. This conduct caused the filing of false tax returns for the years 2011 to 2014.
Mahmood admitted in a plea agreement that his conduct resulted in a total federal and state tax loss of approximately $3,468,523.
Mahmood plea agreementFormer Chief of Staff to Speaker of the Illinois House Sentenced to Two and a Half Years in Federal Prison for Lying Under Oath to Grand JuryRead the Press Release
CHICAGO — The former Chief of Staff to the Speaker of the Illinois House of Representatives was sentenced today to two and a half years in federal prison for providing false material testimony under oath to a federal grand jury and attempting to obstruct its investigation into allegations of public corruption.
U.S. District Judge John F. Kness imposed the sentence on TIMOTHY MAPES, 69, of Springfield, Ill. A jury in U.S. District Court in Chicago last year convicted Mapes of making false declarations before a grand jury and attempted obstruction of justice.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government was represented by Assistant U.S. Attorneys Julia Schwartz and Diane MacArthur.
Evidence presented at trial revealed that the grand jury was investigating possible violations of federal criminal law, including efforts by the Speaker of the House and a consultant acting on the Speaker’s behalf to obtain for others private jobs, contracts, and monetary payments, including from Commonwealth Edison (“ComEd”), the largest electric utility in Illinois, to influence and reward the Speaker in the Speaker’s official capacity. Mapes was granted immunity prior to his testimony before the grand jury. The immunity order provided that testimony or evidence provided by Mapes could not be used against him in a criminal case, except for perjury, giving a false statement, or otherwise failing to comply with the immunity order.
When Mapes appeared before the grand jury on March 31, 2021, he knowingly made false material declarations in response to several questions about the consultant’s relationship with the Speaker from 2017 to 2019. Mapes denied knowing that the consultant acted as an agent or performed work for the Speaker during those years, when, in fact, Mapes knew that the consultant carried out work and assignments on behalf of the Speaker and communicated messages on the Speaker’s behalf.
Federal Judge Sentences Man to 20 Years in Prison for Detonating Pipe Bomb at Suburban Chicago Train StationRead the Press Release
CHICAGO — A federal judge today sentenced a man to 20 years in prison for detonating a pipe bomb at a suburban Chicago train station.
On Sept. 1, 2006, THOMAS JAMES ZAJAC placed a pipe bomb in a trash can at the BNSF Railway station in Hinsdale, Ill. The device exploded during the morning commute, injuring a station agent.
U.S. District Judge Matthew F. Kennelly imposed the sentence during a hearing in federal court in Chicago. Judge Kennelly ordered that the sentence must be served after the completion of a federal sentence that Zajac is currently serving for bombing a public library in Salt Lake City, Utah, in 2006.
Today’s sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. Valuable assistance was provided by the Hinsdale Police Department, DuPage County, Ill., Sheriff’s Office, U.S. Secret Service, U.S. Postal Inspection Service, and the BNSF Police Department. The government was represented by Assistant U.S. Attorneys G. David Rojas, Brian Kerwin, and Andréa L. Campbell.
Evidence at Zajac’s federal trial in Chicago last year revealed that Zajac felt disrespected when a family member was arrested by Hinsdale Police in the year before the bombing. About a month after the bombing, Zajac sent an anonymous letter to the Hinsdale Police Department, stating that the police had “[expletive] with” the wrong person and that the writer had “fired a warning shot” last month. The letter indicated that police actions would “likely eventually lead to the death” of at least one person in Hinsdale, and that the writer wanted to see whether the department was “bright enough or possess[ed] the character to stop this death.”
Zajac, 70, formerly of Oakbrook Terrace, Ill., was convicted on all three counts against him, including one count of attempting to damage property with an explosive, one count of possessing an unregistered destructive device, and one count of willfully making a threat through the mail to kill or injure a person with an explosive.
Federal Jury Convicts Chicago Trader of Engaging in Unauthorized Trading That Caused $30 Million in LossesRead the Press Release
CHICAGO — A Chicago trader has been convicted of fraud for engaging in unauthorized speculative bond trading that cost his employer and others more than $30 million.
A jury in U.S. District Court in Chicago on Wednesday convicted KEITH WAKEFIELD, 50, of Chicago, on one count of securities fraud and three counts of wire fraud. Each count is punishable by a maximum sentence of 20 years in federal prison. U.S. District Judge Steven C. Seeger did not immediately set a sentencing date.
The conviction was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Securities and Exchange Commission, which filed a civil enforcement action against Wakefield, provided valuable assistance. Assistant U.S. Attorneys Sean Franzblau and Bradley A. Tucker are prosecuting the criminal case.
According to evidence presented at trial, Wakefield worked as the head of fixed income trading for IFS Securities, Inc., a broker-dealer in Chicago. In 2019, Wakefield knowingly and fraudulently engaged in unauthorized speculative trading in U.S. Treasury bonds using his employer’s trading accounts, causing more than $30 million in losses to the employer and its counterparties. Wakefield attempted to conceal the unauthorized trades and losses by entering fake off-setting trades into a clearing broker’s order system, creating the false impression that he had profitably traded through a different clearing broker.
In addition to the fraudulent trading scheme, Wakefield from 2017 to 2019 embezzled hundreds of thousands of dollars from IFS Securities by falsifying the company’s books and records to create fake commissions that Wakefield knew were not actually owed to him.
Chicago Man Sentenced to 24 Years in Prison for Sex Trafficking ChildrenRead the Press Release
CHICAGO — A Chicago man has been sentenced to 24 years in federal prison for recruiting four children to engage in sex acts for money.
On multiple occasions in 2017, DARYL S. ARNOLD arranged for the four victims, all of whom were under 18 years old, to meet with individuals to engage in commercial sex acts in the Chicago area. Arnold used websites such as Backpage to advertise the commercial sex acts and find customers. Afterward, Arnold kept half of the proceeds.
Arnold, 48, pleaded guilty in 2022 to four counts of sex trafficking of a minor. In addition to the prison sentence, U.S. District Judge Jorge L. Alonso on Friday ordered Arnold to pay $136,700 in restitution to the victims. The prison term will be followed by ten years of court-supervised release.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Chicago Police Department provided valuable assistance.
Arnold’s arrest was part of Operation Cross Country XI, a nationwide law enforcement effort to combat underage human trafficking.
“Defendant’s tactic of grooming minors is extremely dangerous because of the ease with which it can be implemented,” Assistant U.S. Attorney Charles W. Mulaney argued in the government’s sentencing memorandum. “He ‘sold the dream’ with a false promise of independence and love.”
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by calling 1-800-843-5678 or logging on to www.cybertipline.com.
Federal Indictment Accuses Three Chicago Residents of Committing Carjackings and MurdersRead the Press Release
CHICAGO — A federal superseding indictment charges three Chicago residents with conspiring to commit multiple carjackings in the city and suburbs. The indictment also accuses them of committing a murder during an attempted carjacking and a second murder using a carjacked vehicle.
According to the indictment returned Thursday in U.S. District Court in Chicago, EDSON RESENDEZ, MAVERICK CELA, and PREZILA APREZA murdered Nabil Mahouar during an attempted carjacking in Chicago’s Dunning neighborhood on Sept. 21, 2020, and later that day used a car taken in another carjacking to fatally shoot Eduardo Triano in the city’s North Park neighborhood.
The superseding indictment renews firearm and carjacking charges filed in 2022 against Resendez and Cela for allegedly violently committing carjackings in Morton Grove, Ill., and Skokie, Ill. The new indictment adds Apreza as a defendant and charges her, Resendez, and Cela with conspiracy and firearm offenses, as well as two other carjackings in Skokie, Ill. and Berwyn, Ill.
The superseding indictment contains a notice of special findings that would make the defendants eligible for the death penalty if convicted of the new charges.
Resendez, 22, Cela, 22, and Apreza, 23, all of Chicago, are in law enforcement custody. Arraignments on the superseding charges have not yet been scheduled.
The superseding indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Skokie, Ill. Police Department, Chicago Police Department, Morton Grove, Ill. Police Department, and Berwyn, Ill. Police Department. The government is represented by Assistant U.S. Attorneys Cornelius A. Vandenberg and Simar Khera.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Resendez et al superseding indictmentChicago Man Sentenced to Nearly 24 Years in Prison for Sex Trafficking ChildrenRead the Press Release
CHICAGO — A Chicago man has been sentenced to nearly 24 years in federal prison for recruiting two children to travel to Chicago from Indiana to engage in sex acts for money.
A jury in 2022 convicted KENNEDY SPENCER, 55, of Chicago, on sex trafficking and conspiracy charges. U.S. District Judge John Robert Blakey imposed the sentence on Jan. 25, 2024, during a hearing in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance in the investigation was provided by the Tinley Park, Ill. Police Department and the FBI Resident Agency in South Bend, Ind. The government was represented by Assistant U.S. Attorneys Andrew C. Erskine and Erika L. Csicsila.
According to evidence presented at trial, the victims were under the age of 18 when Spencer induced them to travel to Chicago in the spring of 2018. Once in the city, Spencer on multiple occasions arranged for the victims to meet with individuals to engage in commercial sex acts. A co-conspirator – RONALD WILLIAMS, 65, of Lynwood, Ill. – drove the victims to some of the meetings. Afterward, Spencer and Williams kept the bulk of the proceeds.
Both victims testified at trial about having been sex trafficked by Spencer and Williams.
Williams was also convicted on trafficking and conspiracy charges. He was sentenced in 2023 to 15 years in federal prison.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by calling 1-800-843-5678 or logging on to www.cybertipline.com.
Former Board Member of Failed Washington Federal Bank in Chicago Sentenced to Prison for Falsifying Records and Obstructing RegulatorsRead the Press Release
CHICAGO — A former board member of the failed Washington Federal Bank for Savings in Chicago was sentenced today to 18 months in federal prison for conspiring to falsify bank records to deceive the Office of the Comptroller of the Currency and for filing false tax returns.
WILLIAM M. MAHON, 57, of Chicago, pleaded guilty last year to conspiracy and tax charges. In addition to the prison term, U.S. District Judge Virginia M. Kendall ordered Mahon to pay a fine of $75,000.
Washington Federal, which was based in Chicago’s Bridgeport neighborhood, was shut down in 2017 after the Office of the Comptroller of the Currency determined that the bank was insolvent and had at least $66 million in nonperforming loans. When the OCC was evaluating Washington Federal’s loan portfolio prior to its failure, Mahon and other board members made and caused to be made false entries in bank records and provided them to the OCC with the intent to deceive the agency and obstruct its examination. They also falsified records to make it appear that Washington Federal was operating in compliance with banking rules and internal policies and controls.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Vincent R. Zehme, Special Agent-in-Charge of the Chicago Region of the FDIC’s Office of Inspector General; Machelle L. Jindra, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Andrea Peacock, Special Agent-in-Charge of the Department of the Treasury, Office of Inspector General; Deborah Witzburg, City of Chicago Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General. Valuable assistance was provided by the U.S. Trustee Program. The government is represented by Assistant U.S. Attorneys Michelle Petersen, Kristin Pinkston, and Jeffrey Snell, and Special Assistant U.S. Attorney Brian Netols.
The federal criminal investigation into the bank’s collapse led to criminal charges against 16 defendants, including the bank’s Chief Financial Officer, Treasurer, and other high-ranking employees, for conspiring to embezzle at least $31 million in bank funds. Four defendants were convicted after jury trials, while ten defendants pleaded guilty and two entered into deferred prosecution agreements.
Much of the money was transferred to Chicago attorney ROBERT M. KOWALSKI and real estate developers MIROSLAW KREJZA and MAREK MATCZUK without all of the required documentation and often without any documentation whatsoever. Juries last year convicted Robert Kowalski, Krejza, and Matczuk on embezzlement and fraud charges. They are awaiting sentencing. Robert Kowalski’s sister, JAN R. KOWALSKI, also an attorney, pleaded guilty and was sentenced in 2023 to more than three years in prison for fraudulently enabling her brother to conceal more than $357,000 from creditors and the trustee in his bankruptcy case.
Chicago attorney PATRICK D. THOMPSON was convicted by a jury in 2022 of making false statements to the Federal Deposit Insurance Corp. regarding the amount of money he received from Washington Federal via a purported loan and other unsecured payments. He was also convicted of filing tax returns in which he falsely deducted interest that he had not actually paid to Washington Federal. Daley was sentenced to four months in federal prison.
U.S. Attorney’s Office Observes National Human Trafficking Prevention MonthRead the Press Release
CHICAGO – The United States Attorney’s Office for the Northern District of Illinois today commemorated National Human Trafficking Prevention Month and renewed its commitment to prosecuting human traffickers, protecting victims, and empowering survivors.
Every year since 2010, the President of the United States has proclaimed January as “National Human Trafficking Prevention Month,” reaffirming our nation’s commitment to combatting human trafficking in all its forms. The U.S. Attorney’s Office joins in this commitment and continues to prioritize combatting forced labor, domestic servitude, and sex trafficking of children and adults throughout northern Illinois. As part of these efforts, the office works in partnership with the Cook County Human Trafficking Task Force and the Lake County Human Trafficking Task Force, taking a multidisciplinary approach to prevention and prosecution.
“Human trafficking is a brutal crime and its impact on victims is immeasurable. Our office will continue to work closely with federal, state, and local law enforcement, as well as the remarkable men and women who work with victims, to bring traffickers to justice. Those who exploit other human beings for personal gain must be held accountable.”
-Morris Pasqual, Acting United States Attorney for the Northern District of Illinois.
“The Department of Justice launched our National Strategy to Combat Human Trafficking to bring the full force of the Department to the fight against human trafficking,” said Attorney General Merrick B. Garland. “Since then, we’ve taken sustained steps forward to make our anti-trafficking efforts stronger than ever. We have brought human traffickers to justice, dismantled trafficking enterprises, and empowered survivors to rebuild their lives. I am proud of the progress the Department has made, but there is still much more work left to do.”
Human trafficking includes sex trafficking, labor trafficking, and indentured servitude. As with many crimes of exploitation and abuse, human traffickers often prey upon members of marginalized communities and other vulnerable individuals. Traffickers often manipulate the vulnerabilities of victims on multiple levels, first offering protection and opportunity, and then coercing victims to provide labor, services, or commercial sex through a combination of physical and sexual violence, threats of physical or psychological harm, financial or debt-related threats, threats of deportation or arrest, manipulation of substance use disorder, or withdrawal of housing security or other support.
Anyone with information about a potential human trafficking situation or a person who may be experiencing human trafficking should contact the National Human Trafficking Hotline by calling 1-888-373-7888 or texting 233733. More information about the Justice Department’s work to combat human trafficking can be found here.
Federal Indictment Charges Man with Assaulting and Robbing Two Postal Carriers in Chicago SuburbRead the Press Release
CHICAGO — A federal grand jury has indicted a man for allegedly assaulting and robbing two postal carriers in the Chicago suburb of Evanston, Ill.
EVERETT G. PULLETT, 33, of Evanston, Ill., assaulted and robbed a postal carrier on Sept. 26, 2022, and another on Sept. 27, 2022, according to an indictment unsealed Monday in U.S. District Court in Chicago. In the second robbery, Pullett displayed a firearm while assaulting and injuring the postal carrier, the indictment states. Law enforcement later recovered from Pullett a U.S. Postal Service key, the indictment states.
Pullett is currently detained in law enforcement custody. He was arraigned Monday in federal court in Chicago and pleaded not guilty to charges of assaulting and robbing the postal carriers and illegally possessing the key. The most serious offense – the second assault that injured and jeopardized the life of the postal carrier – carries a maximum sentence of 25 years in federal prison, while the first assault and the key possession are each punishable by up to ten years.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Ruth Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service. Valuable assistance was provided by the Evanston Police Department. The government is represented by Assistant U.S. Attorney Stephanie C. Stern.
“U.S. Postal Service employees delivering mail to the American people must be allowed to do so safely and securely,” said Acting U.S. Attorney Pasqual. “Individuals who use violence against postal carriers to gain access to the public's mail must be held accountable.”
“This indictment is another example of the roles postal inspectors and our law enforcement partners play in protecting Postal Service employees and customers,” said Inspector-in-Charge Mendonça. “As Postal Service employees continue to play an integral role in our communities, we are clear in our resolve to aggressively investigate anyone who brings harm to these invaluable public servants.”
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Pullett indictmentOwner of Suburban Chicago Construction Company Pleads Guilty to Federal Bribery ChargesRead the Press Release
CHICAGO — The owner of a suburban Chicago construction company has pleaded guilty to federal bribery charges for conspiring to bribe an employee of the Cook County Assessor’s Office in return for favorable property assessments.
ALEX NITCHOFF, 56, of Lemont, Ill., pleaded guilty Wednesday to one count of conspiring to corruptly give something of value to influence and reward a public official, and one count of using an interstate facility to facilitate bribery. Each count is punishable by up to five years in federal prison. U.S. District Judge John F. Kness set sentencing for May 8, 2024.
Nitchoff admitted in a plea agreement that from 2016 to 2019 he conspired with others to corruptly provide home improvement services and materials to Cook County Assessor’s Office employee LAVDIM MEMISOVSKI, who assessed property values and reviewed property tax appeals for Cook County commercial properties. Nitchoff and others provided free home improvement services and materials at Memisovski’s personal residence, including a concrete pad, decking materials, dumpster usage, fascias and soffits, a fence, a gas line, heads for a sprinkler system, tile, and windows, the plea agreement states. In return for the benefits, Memisovski took official action to reduce the property taxes owed for Nitchoff’s properties by at least $550,000, the plea agreement states.
One of Nitchoff’s employees, JOHN BODENDORFER, 56, of Chicago, has pleaded not guilty to participating in the bribery scheme and is awaiting trial. Memisovski, 45, of Burbank, Ill., pleaded guilty last year to a conspiracy charge and is awaiting sentencing.
Nitchoff’s guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the IRS Criminal Investigation Division and the City of Chicago Inspector General’s Office. The government is represented by Assistant U.S. Attorneys Vikas Didwania and Thomas Peabody.
Nitchoff, Bodendorfer, and Memisovski were among seven people charged in connection with the federal investigation. Two other Cook County Assessor’s Office employees, BASILIO CLAUSEN, 51, of Crown Point, Ind., and LUMNI LIKOVSKI, 47, of Burbank, Ill., have pleaded not guilty to bribery charges and are awaiting trial in connection with a scheme in which they allegedly accepted bribes from the owner of a fence installation company in return for reducing property assessments. The fence company owner, ROBERT MITZIGA, 65, of Dyer, Ind., also pleaded not guilty to bribery charges and is awaiting trial. The seventh defendant, former City of Chicago building inspector JOSEPH E. GARCIA, was sentenced to probation for falsely claiming to have inspected home repair projects for low-income Chicago homeowners, allowing the city to pay a contractor for work that at the time had not been performed.
The public is reminded that the defendants who have pleaded not guilty are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Woman and Her Two Daughters Convicted in Child Labor Trafficking Conspiracy in Chicago SuburbsRead the Press Release
CHICAGO — A federal jury today convicted a woman and her two daughters on child labor trafficking charges for forcing two undocumented West African children to work in the Chicago suburbs.
NAWOMI AWOGA, 75, of Hazel Crest, Ill., and her two daughters, MARINA OKE, also known as Marina Fandohan, 38, of Country Club Hills, Ill., and ASSIBA LEA FANDOHAN, 35, of Hazel Crest, Ill., were each found guilty of one count of conspiracy to conceal, harbor, and shield from detection two children from the West African country of Benin, one count of concealment of an undocumented immigrant, and one count of forcing labor through threats of serious harm to a victim or another person.
The jury returned its verdicts this afternoon after a two-week trial in U.S. District Court in Chicago. U.S. District Judge John Robert Blakey did not immediately set sentencing dates.
According to evidence presented at trial, Awoga coached the victims, then age 14 and 12, in Benin to lie to U.S. immigration authorities about their family relationships in order to obtain tourist visas, and then accompanied them into the United States. Once in the U.S., the defendants harbored the victims in residences in the Chicago suburbs of Country Club Hills and Hazel Crest while the victims were forced to provide labor and services for the defendants’ financial gain. The defendants used violence against the victims to force them to work both inside the residences and at a hair salon.
The convictions were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Sean Fitzgerald, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations; Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago; and Mark Woods-Hawkins, Special Agent-in-Charge of the U.S. Department of State’s Diplomatic Security Service (DSS). Substantial assistance in the investigation was provided by the Cook County Sheriff’s Office, Chicago Police Department, Department of Homeland Security’s Center for Countering Human Trafficking, and the Regional Security Office at the U.S. Embassy in Cotonou, Benin. The government is represented by Assistant U.S. Attorneys Barry Jonas and Tiffany Ardam, and Special Assistant U.S. Attorney Kristin M. Linsley.
Anyone with information about a potential human trafficking situation or a person who may be experiencing human trafficking should contact the National Human Trafficking Hotline by calling 1-888-373-7888 or texting 233733. More information about the Justice Department’s work to combat human trafficking can be found here.
Former Chief Operating Officer of Illinois Hospital Pleads Guilty to Federal Fraud ChargeRead the Press Release
CHICAGO — The former Chief Operating Officer of an Illinois hospital pleaded guilty today to a federal fraud charge for illegally pocketing more than $620,000 in hospital funds.
ROBERT SPADONI was an attorney who worked as a Vice President and COO of the hospital. Spadoni admitted in a plea agreement that from 2013 to 2021, he orchestrated a scheme in which he approved the hospital’s payment of invoices to a vendor company that purportedly provided administrative support and compliance services. In reality, the vendor company – Medical Education Solutions, Inc. – had been established by Spadoni for the purpose of executing the scheme. Spadoni opened a bank account for the company in a relative's name and steered the hospital’s payments into it. Spadoni concealed the fraud scheme by paying $1,500 a month in cash to another hospital employee to actually provide the administrative and compliance services.
As a result of the fraud scheme, Spadoni obtained approximately $622,500 in payments from the hospital, the plea agreement states. Spadoni admitted in the plea agreement that he used the money for his own benefit, including restaurant meals and hotel stays, as well as transferring $225,805 into his 401(k) account.
Spadoni, 59, of Darien, Ill., pleaded guilty to a mail fraud charge. The conviction is punishable by up to 20 years in federal prison. U.S. District Judge Matthew F. Kennelly set sentencing for April 30, 2024.
The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Kwame Raoul, Illinois Attorney General. The government is represented by Assistant U.S. Attorney Chester Choi.
Spadoni plea agreementWoman Sentenced for Conspiracy to Murder Her MotherRead the Press Release
An Illinois woman was sentenced yesterday to 26 years in prison for her role in a conspiracy to murder her mother while they vacationed in Bali, Indonesia, in August 2014.
According to court documents, Heather L. Mack, 28, originally from Chicago, admitted in a plea agreement that she and her boyfriend, Tommy Schaefer, conspired to kill Mack’s mother while Mack and her mother vacationed in Bali. Mack arranged for Schaefer to travel to Bali using her mother’s credit card. After Schaefer arrived, Mack and Schaefer exchanged a series of text messages about how and when to kill Mack’s mother, which included a discussion about suffocating or beating the victim. Shortly after these text messages were exchanged, on Aug. 12, 2014, Schaefer entered the victim’s hotel room and, while Mack was present, brutally beat and killed the victim. Mack and Schaefer then placed the victim’s body into a suitcase and tried to leave the hotel in a taxi. When the driver of the taxi refused to accept their fare, Mack and Schaefer fled the hotel and abandoned the suitcase containing the victim’s body in the taxicab. Mack and Schaefer were arrested by Indonesian police the day after the murder at another hotel in Bali.
“Heather Mack planned to violently murder her own mother while on vacation in Bali,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “In Bali, Mack stood by while her mother was savagely beaten to death and then callously and unsuccessfully tried to dispose of her mother’s body. This significant sentence holds the defendant to account for this heinous crime. The department will continue to pursue justice for Americans, both at home and abroad.”
“The successful prosecution of the defendant’s heinous crime was the result of exhaustive investigative work by law enforcement in the United States and Indonesia,” said Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois. “The sentence imposed sends a message that the U.S. justice system remains a powerful tool to hold accountable those who harm American citizens abroad.”
“The FBI works diligently with its international law enforcement partners to bring perpetrators of violent crime to justice and closure to victims’ families,” said Assistant Director Michael Nordwall of the FBI's Criminal Investigative Division. “The sentencing demonstrates the FBI’s commitment to investigating violent crime—no matter how long or how far it takes us.”
“This case is the result of the FBI’s unwavering commitment to seeking justice for all Americans throughout the world,” said Special Agent in Charge Robert W. “Wes” Wheeler Jr. of the FBI Chicago Field Office. “We will never stop working with our partners to hold violent offenders accountable, no matter where in the world they commit their crimes.”
In 2015, Mack and Schaefer were convicted in Indonesia of local criminal charges related to the murder. Mack was sentenced to 10 years in prison and released after serving seven years. Schaefer was sentenced to 18 years in prison and currently remains imprisoned in Indonesia.
In November 2021, upon arrival in the United States, Mack was arrested on U.S. federal charges relating to the murder. Schaefer was also charged in the U.S. indictment, and those charges remain pending against him. Mack pleaded guilty on June 16, 2023, to one count of conspiracy to kill a U.S. national.
The FBI Chicago Field Office investigated the case, with valuable assistance from the Justice Department’s Office of International Affairs and the FBI Legal Attaché Office in Jakarta, Indonesia.
Senior Trial Attorney Frank G. Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Ann Marie E. Ursini for the Northern District of Illinois prosecuted the case.
Six Members or Associates of Violent Street Gang Convicted of Federal Racketeering Offenses Including the Murder of Chicago RapperRead the Press Release
CHICAGO — A federal jury in Chicago today convicted six members or associates of a violent street gang on racketeering offenses that included the murder of Carlton Weekly, a Chicago rapper also known as “FBG Duck.”
The jury found that the defendants – all members or associates of the O-Block street gang – participated in a criminal organization that engaged in violence to protect the gang’s perceived territories on the South Side of Chicago. The O-Block gang publicly claimed responsibility for their violence and used social media and music to increase their criminal enterprise. The jury found that the defendants conspired to murder Weekly in order to maintain and increase their positions in the gang. Weekly was fatally shot on Aug. 4, 2020, while shopping in Chicago.
Convicted of committing murder in aid of racketeering are Chicago residents CHARLES LIGGINS, 32, KENNETH ROBERSON, 30, TACARLOS OFFERD, 32, CHRISTOPHER THOMAS, 24, MARCUS SMART, 25, and RALPH TURPIN, 34.
The jury returned its verdicts after a three-month trial in U.S. District Court in Chicago. The convictions carry mandatory sentences of life in federal prison. U.S. District Judge Martha M. Pacold set sentencings for Aug. 6, 2024, for Liggins; Aug. 8, 2024, for Roberson; Aug. 13, 2024, for Smart; Aug. 15, 2024, for Turpin; Sept. 4, 2024, for Offerd; and Sept. 17, 2024, for Thomas.
The convictions were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Larry Snelling, Superintendent of the Chicago Police Department. Substantial assistance in the investigation was provided by the Cook County State’s Attorney’s Office. The government is represented by Assistant U.S. Attorneys Jason Julien, Ann Marie Ursini, Caitlin Walgamuth, and Sean Hennessy.
“People have the right to go about their lives and walk the streets in safety – free from violence,” said Acting U.S. Attorney Pasqual. “The jury’s verdicts today hold the six defendants accountable for a brutal murder that took the life of Carlton Weekly. Working with our law enforcement partners, our office will continue to prioritize combatting the unacceptable level of gang violence in Chicago.”
“All too often, our residents are held hostage to violence and other dangerous activity on our city streets," said FBI SAC Wheeler. "These convictions show that there are very real consequences for murder in the city of Chicago today, tomorrow, and every day going forward.”
"The outcome of this case is a result of a shared commitment to public safety and longstanding partnerships at the federal, state, and local level," said CPD Supt. Snelling. "We will continue working side-by-side with our law enforcement partners to combat violence in every neighborhood because the safety of our communities and residents depends on it."
Chicago Financial Advisor Charged with Swindling Clients out of Nearly $1.5 MillionRead the Press Release
CHICAGO — A Chicago financial advisor has been charged in federal court with swindling clients out of nearly $1.5 million by soliciting them to invest in purported movie productions.
HELEN GRACE CALDWELL, 58, of Chicago, is charged with wire fraud in a criminal information filed Thursday in U.S. District Court in Chicago. Arraignment has not yet been scheduled.
According to the information, Caldwell worked for a bank as a senior financial advisor. She also established an entity called Canal Productions LLC for the purported purpose of producing movies. From 2014 to 2023, Caldwell solicited various bank clients, including elderly individuals, to invest in her alleged movie productions, knowing that those funds would actually be used for her own personal benefit, the information states. Caldwell persuaded the victims to liquidate their other assets in order to fund her purported movie investments, the information states.
As a result of the scheme, Caldwell defrauded three clients out of approximately $1,480,500, the information states.
The charge was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Corey B. Rubenstein.
The public is reminded that an information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Caldwell informationFifth Defendant to Be Arraigned for Allegedly Conspiring to Rob ATMs in Illinois, Indiana, and IowaRead the Press Release
CHICAGO — A fifth defendant will be arraigned today in Chicago on federal charges of conspiring with four others to rob automated teller machines in Illinois, Indiana, and Iowa.
The robbers often used chains connecting the ATMs to stolen pickup trucks to break into the machines and steal cash, according to an indictment returned in U.S. District Court in Chicago. After the heists, the robbers abandoned the trucks and fled in another vehicle, the indictment states. One of the pickup trucks was stolen from an auto dealership in Portage, Ind., and some of the chains and other materials used in the robberies were obtained from a hardware store in Burbank, Ill., according to the indictment.
The indictment identifies eight ATMs allegedly robbed as part of the conspiracy:
- March 12, 2022: First Source Bank ATM in Portage, Ind.
- March 23, 2022: Inland Bank ATM in Countryside, Ill.
- March 25, 2022: Parkway Bank ATM in Glen Ellyn, Ill.
- March 30, 2022: Grundy National Bank ATM in Conrad, Iowa.
- April 1, 2022: First State Bank ATM in Lynnville, Iowa.
- April 1, 2022: First Central State Bank ATM in LeClaire, Iowa.
- April 2, 2022: Solon State Bank ATM in Tiffin, Iowa.
- April 3, 2022: Resource Bank ATM in Hinckley, Iowa.
Charged with conspiracy to commit robbery are DANNY ROLAND, 27, of Missouri City, Texas, BRYCE JONES, 26, of Webster, Texas, CHANDLER WILLIAMS, 27, of Missouri City, Texas, DAQUAN BENS, 29, of Houston, Texas, and TRISTIAN MILLER, 27, of Stafford, Texas.
Miller was arrested last month in Houston, Texas. He is scheduled to be arraigned today at 2:00 p.m. before U.S. Magistrate Judge Sunil R. Harjani in Chicago. The four other defendants have pleaded not guilty and are awaiting trial.
The charges were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Douglas A. Williams, Jr., Special Agent-in-Charge of the Houston Field Office of the FBI. Substantial assistance in this investigation has been provided by the Countryside, Ill. Police Department, DuPage County, Ill. Sheriff’s Office, DeKalb County, Ill. Sheriff’s Office, Portage, Ind. Police Department, LeClaire, Iowa Police Department, Bettendorf, Iowa Police Department, Johnson County, Iowa Sheriff’s Office, Grundy County, Iowa Sheriff’s Office, Jasper County, Iowa Sheriff’s Office, and the Houston, Texas Police Department. The government is represented by Assistant U.S. Attorney Megan DeMarco.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Roland et al indictmentChicago Man Sentenced to Five and a Half Years in Federal Prison for $2.9 Million Covid-Relief FraudRead the Press Release
CHICAGO — A federal judge has sentenced a Chicago man to five and a half years in prison for fraudulently obtaining more than $2.9 million in small business loans and grants under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
From April to November of 2020, QUAMDEEN AMUWO, 41, participated in a scheme to defraud the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. The EIDL program was intended to provide loan assistance and grants to cover working capital and other operating expenses for legitimate businesses suffering the economic effects of the Covid-19 pandemic. As part of the scheme, Amuwo submitted to the SBA numerous applications for loans on behalf of businesses that he and others purportedly owned. The applications contained false statements and misrepresentations concerning the purported entities’ owners, employees, revenues, costs, and dates of establishment. In support of his applications, Amuwo provided false business registration forms and bogus personal identifying information of the purported owners.
Amuwo led and organized a sophisticated fraud scheme that caused the SBA to disburse at least $2.9 million in EIDL loans and grants into bank accounts that he and others controlled. He used the money to make cash withdrawals, transfers, and purchases for his personal benefit.
A federal jury in June convicted Amuwo on all twelve wire fraud counts against him. In addition to the prison sentence, U.S. District Judge Edmond E. Chang on Wednesday ordered Amuwo to pay more than $2.9 million in restitution.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Substantial assistance was provided by the SBA’s Office of Inspector General. The government was represented by Assistant U.S. Attorneys Heidi Manschreck and Matthew Moyer.
Anyone with information about attempted fraud involving Covid-19 can report it to the Department of Justice by calling the National Center for Disaster Fraud at (866) 720-5721, or by filing a complaint online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Man Charged with Sex Trafficking of a Minor in Chicago SuburbRead the Press Release
CHICAGO — A federal grand jury has indicted a man on sex trafficking charges for allegedly enticing a minor to engage in a commercial sex act in a Chicago suburb.
The two-count federal indictment charges KENNARD CAMERON, 38, of Chicago, with sex trafficking of a minor and conspiracy to engage in sex trafficking of a minor. According to the indictment, Cameron recruited and enticed the minor to engage in a commercial sex act in Lansing, Ill., on March 17, 2023.
Cameron was arrested last week. U.S. Magistrate Judge Beth W. Jantz on Wednesday ordered Cameron to remain detained pending trial.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Jennifer Chang.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each charge in the indictment is punishable by a maximum sentence of life in federal prison. The charge of sex trafficking of a minor also includes a mandatory minimum sentence of ten years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Cameron indictmentMan Sentenced to Seven Years in Federal Prison for Trafficking Heroin and Cocaine in Chicago AreaRead the Press Release
CHICAGO — A man has been sentenced to seven years in federal prison for trafficking heroin and cocaine in the Chicago area.
From 2015 to 2022, ALFONSO HIDALGO-GOMEZ obtained heroin and cocaine from Mexico and distributed the narcotics in the Chicago area. During his trafficking activities in the Chicago area, Hidalgo-Gomez was accountable for distributing at least 13.4 kilograms of narcotics. At least two other individuals worked for Hidalgo-Gomez, distributing drugs at his direction.
Hidalgo-Gomez, 37, of Chicago, pleaded guilty earlier this year to a drug conspiracy charge. U.S. District Judge Jorge L. Alonso imposed the sentence on Dec. 13, 2023, after a hearing in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the DEA, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the FBI Chicago Field Office, and Ruth M. Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.
The case was part of an Organized Crime Drug Enforcement Task Force operation. OCDETF identifies, disrupts, and dismantles drug trafficking organizations and other criminal networks that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local enforcement agencies.
“The streets of Chicago are made immeasurably more dangerous because of the drug trade,” Assistant U.S. Attorney Misty N. Wright argued in the government’s sentencing memorandum. “People like defendant perpetuate the drug trafficking crisis in Chicago and all that goes with it, including addiction, crime, and violence. This type of activity endangers our communities.”
Illinois Nurse Charged with Tampering with Morphine Prescribed to PatientRead the Press Release
CHICAGO — An Illinois nurse removed liquid morphine prescribed to a patient and diluted it with another liquid, knowing the diluted substance would be dispensed to the patient, according to a federal indictment unsealed today in U.S. District Court in Chicago.
NICKOLE BUTLER was employed as a registered nurse at a skilled nursing facility. The indictment alleges that Butler tampered with the liquid morphine on May 16, 2021, with reckless disregard and extreme indifference for the risk that the patient would be placed in danger of bodily injury.
Butler, 40, of Byron, Ill., is charged with one count of tampering with a consumer product. She pleaded not guilty today during her arraignment in federal court in Chicago.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Ronne Malham, Special Agent-in-Charge of the Chicago Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations. Substantial assistance was provided by the Illinois State Police and the U.S. Department of Health and Human Services, Office of Inspector General. The government is represented by Assistant U.S. Attorney Misty N. Wright.
“Patients deserve to have confidence that they are receiving the legitimately prescribed medication and not a diluted substance,” said Acting U.S. Attorney Pasqual. “Health care practitioners who illicitly tamper with prescription drugs will be prosecuted to the fullest extent of the law.”
“U.S. consumers rely on the FDA to oversee the prescription drug supply chain and ensure that their medicines are safe and effective,” said FDA SAC Malham. “When that supply chain is breached, the public’s health is put at risk. We will continue to pursue and bring to justice those who jeopardize consumers’ trust in their medications.”
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charge in the indictment carries a maximum sentence of ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Butler indictmentFormer City of Chicago Alderman Convicted on Federal Racketeering, Bribery, and Extortion ChargesRead the Press Release
CHICAGO — A federal jury today convicted former City of Chicago Alderman EDWARD M. BURKE on racketeering, bribery, and extortion charges for abusing his position while an alderman to solicit and extort private legal work and other benefits from companies and individuals with business before the city.
Burke, 79, of Chicago, was found guilty on 13 counts: racketeering; corruptly soliciting, demanding, accepting, or agreeing to accept things of value; using an interstate facility to promote unlawful activity; and attempted extortion. A co-defendant, real estate developer CHARLES CUI, 52, of Lake Forest, Ill., was found guilty on five counts: corruptly offering or agreeing to give things of value; using an interstate facility to promote unlawful activity; and knowingly making a false statement to the FBI. A third defendant, PETER J. ANDREWS, 74, of Chicago, an aide in Burke’s 14th Ward office, was acquitted of all charges against him.
U.S. District Judge Virginia M. Kendall set sentencing for June 17, 2024, for Cui, and June 19, 2024, for Burke. The racketeering and extortion counts are punishable by up to 20 years in federal prison. The counts for corruptly soliciting and accepting things of value are punishable by up to ten years, while the maximum for both using an interstate facility to promote unlawful activity and making a false statement to the FBI is five years.
The verdicts were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The City of Chicago Inspector General’s Office and the Amtrak Office of Inspector General provided valuable assistance. The government is represented by Assistant U.S. Attorneys Sarah Streicker, Diane MacArthur, Timothy Chapman, and Sushma Raju, as well as Amarjeet Bhachu, Chief of the U.S. Attorney’s Office’s Public Corruption Section.
Evidence at the six-week trial in U.S. District Court in Chicago revealed that Burke corruptly solicited work for his private law firm from companies involved in redevelopment projects at the Old Main Post Office in downtown Chicago and a Burger King restaurant on the city’s Southwest Side. Burke also corruptly attempted to assist Cui with a development on the city’s Northwest Side shortly after Cui told Burke that he would hire Burke’s private law firm, Klafter & Burke, for legal work. Klafter & Burke specialized in seeking property tax reductions for corporate clients.
The evidence further revealed that Burke threatened to oppose an admission fee increase at the Field Museum in Chicago because the museum failed to respond to Burke’s inquiry about obtaining an internship at the museum for a child of Burke’s friend.
Cui was convicted of steering the private legal work to Burke in an effort to influence and reward him in connection with permitting and tax increment financing for Cui’s development.
The corruption schemes occurred in 2016, 2017, and 2018, while Burke was Alderman of the 14th Ward and Chairman of the Chicago City Council’s Finance Committee. Burke served in the City Council from 1969 until earlier this year.
Two Suburban Chicago Physicians Sentenced to Federal Prison for Health Care FraudRead the Press Release
CHICAGO — Two suburban Chicago physicians have been sentenced to federal prison for prescribing opioids to individuals who lacked a legitimate medical need for the drugs.
STANLEY DAVID DEMOREST managed Demorest Consultants LLC, a medical practice in Melrose Park, Ill. NICHOLAS RECCHIA was employed there as a physician. From 2015 to 2020, Demorest and Recchia agreed to dispense hydrocodone, oxycodone, fentanyl, and other controlled substances to individuals who visited Demorest Consultants but whom Demorest and Recchia knew had no legitimate medical need for the drugs. In some instances, Demorest, who voluntarily surrendered his DEA Registration Number in 2015 and lost his ability to lawfully prescribe controlled substances, used Recchia’s name and DEA Registration Number to issue prescriptions for controlled substances to patients. Demorest and Recchia caused pharmacies to submit numerous claims to Medicare and Medicaid seeking payment for the improper prescriptions.
Demorest, 67, of Bloomingdale, Ill., pleaded guilty earlier this year to one count of health care fraud and one count of unlawfully using another person’s DEA registration number to dispense controlled substances. Recchia, 64, of River Grove, Ill., pleaded guilty earlier this year to one count of health care fraud. Both defendants admitted in plea agreements that they dispensed controlled substances outside the usual course of medical practice and without a legitimate medical purpose. On Dec. 14, 2023, U.S. District Judge John F. Kness sentenced Demorest to two years in federal prison and Recchia to six months in prison.
The sentences were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sheila G. Lyons, Special Agent-in-Charge of the Chicago Division of the DEA, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, Mario Pinto, Special Agent-in-Charge of the Chicago Division of the U.S. Department of Health and Human Services, Office of Inspector General, and Irene Lindow, Special Agent-in-Charge of the Chicago Division of the U.S. Department of Labor, Office of Inspector General.
“During a time of epidemic prescription opioid abuse, a trained physician is the last person that the public should expect to knowingly and intentionally issue unauthorized prescriptions for opioids,” Assistant U.S. Attorney Brian Hayes argued in the government’s sentencing memorandum. “Knowing and intentional violations of controlled substances laws by medical professionals during this time must be met with serious sanctions.”
Former Chief Operating Officer of Suburban Chicago Covid-19 Testing Kit Company Charged with Embezzling at Least $1.8 Million in Company FundsRead the Press Release
CHICAGO — The former Chief Operating Officer of a suburban Chicago company that sold Covid-19 testing kits has been indicted on federal fraud charges for allegedly embezzling at least $1.8 million in company funds.
DENNIS W. HAGGERTY, JR. issued fraudulent payments from the Willowbrook, Ill.-based company’s bank account for services and goods purportedly provided by himself or the company’s main vendor, a manufacturer from whom the company purchased Covid-19 testing kits, according to an indictment returned Dec. 14, 2023, in U.S. District Court in Chicago. In reality, the services and goods had not been provided, the indictment states. The money purportedly sent to the testing-kit supplier was wired to a bank account that Haggerty controlled, and he spent the funds for his personal benefit, the indictment states.
In addition to the wire transfers, Haggerty allegedly issued checks drawn from the company’s bank account to himself, knowing that he would spend the money for his personal benefit and not the company’s benefit. Haggerty concealed his fraud by making false and misleading statements on the checks and to the company’s president, the indictment states.
In 2021 and 2022, Haggerty embezzled and fraudulently misappropriated at least approximately $1.8 million from the company, the indictment alleges.
The indictment charges Haggerty, 47, of Burr Ridge, Ill., with five counts of wire fraud. Arraignment in U.S. District Court in Chicago has not yet been scheduled. The indictment states that Haggerty committed the embezzlement while free on court-ordered release while another federal fraud case against him was pending. He was eventually convicted in that case and sentenced in December 2022 to a term of 57 months’ imprisonment.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General. The government is represented by Assistant U.S. Attorney L. Heidi Manschreck.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison, to be followed by a consecutive term of up to ten years for each offense committed while under court-ordered release. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Haggerty indictmentFormer Paralegal for Chicago Law Firm Admits Embezzling Bankruptcy Estate FundsRead the Press Release
CHICAGO — A former paralegal for a Chicago law firm has pleaded guilty to a federal fraud charge for embezzling more than $600,000 from bankruptcy estate accounts.
BECKY LOUISE SUTTON fraudulently embezzled the funds from 2009 to 2018 while working on bankruptcy matters for the law firm. Sutton admitted in a plea agreement that she embezzled money from more than 40 bankruptcy estate accounts and several liquidating trust accounts in Chapter 7 and Chapter 11 matters on which she worked. Sutton orchestrated fraudulent transfers of bankruptcy funds from fiduciary bank accounts intended for creditors to accounts she controlled, including her personal bank account, credit card account, student loan account, and mortgage account. In one instance, Sutton used a company with a name similar to a true creditor to disguise her fraudulent diversion of the funds. Sutton admitted in the plea agreement that her conduct victimized not only the creditors, but also her law firm, a partner at the firm for whom she worked, and the U.S. Trustee Program, among others.
Sutton, 67, of Austin, Texas, and formerly of Park Forest, Ill., pleaded guilty on Dec. 14, 2023, to a charge of wire fraud. The conviction is punishable by up to 20 years in federal prison. U.S. District Judge Mary M. Rowland set sentencing for April 2, 2024, at 11:00 a.m.
The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Trustee Program. The government is represented by Assistant U.S. Attorney Kartik K. Raman.
Sutton plea agreementChicago Businessman Convicted of Defrauding Financial Institutions out of $4 MillionRead the Press Release
CHICAGO — A federal jury has convicted a Chicago businessman of scheming to defraud multiple financial institutions out of $4 million.
DAVID IZSAK, 48, of Chicago, was a licensed real estate professional and the sole proprietor of Skokie, Ill.-based Premier Assets Inc. and Premier Properties Enterprises, Inc. From 2005 to 2018, Izsak engaged in a scheme to defraud financial institutions by obtaining residential loans through false statements, concealing the existence of unpaid loans, and falsely obtaining credit. As part of the scheme, Izsak submitted or caused to be submitted to the Cook County Recorder of Deeds fictitious lien releases. In reality, the releases were not from the lender and the loans were not paid in full. In one instance, after causing a lien to be released, Izsak sold the property to an unsuspecting buyer. In another instance, he obtained six mortgages on a single property, obtaining a new loan after fictitiously releasing the prior loan without repaying it. Izsak also obtained a loan to buy a 57-foot yacht known as the “Flying Lady” by submitting fraudulent tax returns and financial information to the lender. The yacht was seized in 2019 by federal authorities.
After a week-long trial in U.S. District Court in Chicago, the jury on Friday convicted Izsak on ten counts of financial institution fraud, each of which is punishable by up to 30 years in federal prison. U.S. District Judge Manish S. Shah set sentencing for July 9, 2024. The government at sentencing will seek forfeiture from Izsak of approximately $4 million.
The verdict was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the FBI Chicago Field Office, and Ruth M. Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service. The government is represented by Assistant U.S. Attorneys Patrick J. King, Jr., and Elly M. Peirson.
Two Men Indicted on Federal Racketeering Charge for Allegedly Murdering Man to Increase Positions in Chicago Street GangRead the Press Release
CHICAGO — Two men have been indicted on a federal racketeering charge for allegedly murdering a man to maintain and increase their positions in a violent Chicago street gang.
DIONTAE HARPER, 24, and AMONTI MCCLURE, 21, both of Chicago, are charged with one count of murder in aid of racketeering, according to an indictment returned in U.S. District Court in Chicago. It accuses the pair of murdering Paul Harris on May 13, 2020, for the purpose of maintaining and increasing their positions in the Faceworld street gang, a criminal organization based on the South Side of Chicago whose members engaged in violence and trafficked narcotics. Harris was fatally shot while sitting in a vehicle in the 8600 block of South Halsted Street in Chicago’s Auburn Gresham neighborhood.
The defendants are in law enforcement custody. Arraignment for Harper is scheduled for Tuesday at 1:00 p.m. before U.S. Magistrate Judge Heather K. McShain. Arraignment for McClure is scheduled for Wednesday at 9:00 a.m. before Judge McShain. The U.S. Attorney’s Office will be seeking to have the defendants remain detained pending trial.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Larry Snelling, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorneys John Cooke, Brian Kerwin, and Julia Schwartz.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Murder in aid of racketeering is punishable by a mandatory sentence of life in federal prison, and the death penalty is also possible. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Harper et al indictmentFormer Cook County Land Bank Authority Employee Sentenced to a Year in Federal Prison for Scheming to Fraudulently Purchase and Resell PropertiesRead the Press Release
CHICAGO — A former employee of the Cook County Land Bank Authority (CCLBA) has been sentenced to a year in federal prison for using “straw buyers” to fraudulently purchase and resell properties from the agency on his behalf.
MUSTAFAA SALEH, 37, of Chicago, pleaded guilty earlier this year to a wire fraud charge. U.S. District Judge Andrea R. Wood imposed the year-and-a-day prison sentence during a hearing Friday in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Machelle L. Jindra, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Office of Special Inspector General for Troubled Asset Relief Program, IRS Criminal Investigation Division, Cook County Office of Independent Inspector General, and the Federal Housing Finance Agency’s Office of Inspector General. The government was represented by Assistant U.S. Attorneys Sean Franzblau and Kirsten Moran, and Special Assistant U.S. Attorney Brian Netols.
Saleh worked as an asset manager for the CCLBA, a governmental entity that promoted the redevelopment and reuse of vacant, foreclosed, abandoned, and tax delinquent real estate by acquiring and transferring the property to private ownership. The CCLBA sold the real estate at below-market rates and prohibited the buyers from selling or renting a property until the CCLBA was satisfied that the buyer had adequately improved it. CCLBA employees were prohibited from purchasing a property from the agency unless it would be used for the employee’s primary residence.
From 2016 to 2021, Saleh used nominee or “straw” buyers to fraudulently purchase six properties from the CCLBA on Saleh’s behalf and thereafter redeveloped, resold, and otherwise used the properties for Saleh’s financial benefit. In some instances, Saleh’s duties at the CCLBA allowed him oversight over the same properties he owned and resold. The properties were located in Chicago and the nearby suburbs of Oak Lawn and Midlothian.
In addition to the property fraud scheme, Saleh fraudulently obtained maintenance work from the CCLBA. In 2016, Saleh formed a property maintenance company called Evergreen Property Services and directed another individual to pose as its owner. Over the next three years, Saleh caused the CCLBA to contract with Evergreen and pay it more than $1 million for property maintenance services, even though CCLBA employees were prohibited from having a financial interest in property maintenance companies contracting with the agency.
Federal Jury in Chicago Convicts Indiana Man on Kidnapping and Interstate Domestic Violence ChargesRead the Press Release
CHICAGO — An Indiana man has been convicted on federal charges for kidnapping and assaulting two former girlfriends.
ROBERT SPEED, 40, of Gary, Ind., held the victims against their will and repeatedly assaulted them with various dangerous weapons in May and July of 2019. During the assaults, which occurred at residences and hotels in Gary, Ind., Chicago, and the Chicago suburbs, Speed repeatedly punched, hit, and choked the victims. The victims, who had previous romantic relationships with Speed, testified at trial about their ordeals with Speed and the serious injuries he caused them.
The jury on Tuesday convicted Speed on all nine counts against him, including two counts of kidnapping and seven counts of interstate domestic violence. Each kidnapping count is punishable by a maximum sentence of life in federal prison, while each domestic violence count carries a maximum sentence of ten years. U.S. District Judge Jorge L. Alonso set sentencing for March 26, 2024.
Robert Speed’s niece, SHIRLEY SPEED, 27, of Chicago, pleaded guilty prior to trial to an interstate domestic violence charge. Shirley Speed admitted in a plea agreement that she and Robert Speed transported one of the victims from Gary, Ind., to Shirley Speed’s residence in Chicago, and then to a hotel room in South Holland, Ill. Shirley Speed further admitted that her uncle held the victim against her will and assaulted her at both locations. Shirley Speed was sentenced last month to two and a half years in federal prison.
The convictions were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Chicago Police Department and Gary, Ind. Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorneys Sivashree Sundaram and Prashant Kolluri.
Man Convicted of Obtaining Money by Threat from Strip Club in Chicago SuburbRead the Press Release
CHICAGO — A man has been convicted in federal court of obtaining money by threat from a strip club in a Chicago suburb.
ROMMELL KELLOGG, 71, of Harvey, Ill., was convicted Monday on all five counts against him, including conspiracy to commit theft and intimidation and causing the use of facilities in interstate commerce to promote theft and intimidation. The jury returned its verdicts after a week-long trial in U.S. District Court in Chicago.
Each count of conviction is punishable by up to five years in federal prison. U.S. District Judge Sharon Johnson Coleman did not immediately set a sentencing date.
Evidence presented at trial revealed that Kellogg and a co-conspirator, COREY JOHNSON, 68, of Dolton, Ill., are cousins whose relatives served in high-ranking positions in Harvey government. From 2003 to 2018, Kellogg and Johnson conspired to regularly demand and collect payments from a Harvey strip club based on threats that the city of Harvey would potentially interfere with the club’s operations if the payments were not made. In exchange for the payments, the business was allowed to continue to operate, even though the conspirators and others knew that acts of prostitution were occurring onsite.
Johnson served as a bagman in the conspiracy, receiving bi-weekly $3,000 payments from the business and delivering the money to Kellogg. Johnson pleaded guilty to a theft charge prior to trial. He is awaiting sentencing.
The convictions were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Machelle L. Jindra, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; and Thomas J. Dart, Cook County Sheriff. The government is represented by Assistant U.S. Attorneys Sean Franzblau and Megan DeMarco.
Man on Supervised Release for a Federal Drug Trafficking Crime Convicted of Distributing Crack Cocaine in Rock Falls, Ill.Read the Press Release
ROCKFORD — A Chicago man has been convicted by a federal jury in Rockford of one count of conspiracy to distribute cocaine base and seven counts of distribution of cocaine base.
The jury returned its verdicts against JULIAN WYRE, 46, on Thursday in U.S. District Court in Rockford. A sentencing date has not yet been scheduled.
According to evidence presented at trial, Wyre and two other individuals were involved in the conspiracy and distribution of cocaine base in Rock Falls, Ill. between June 2019 and November 1, 2019. During this time period, Wyre sold cocaine base seven times to a confidential informant and two other individuals who were used as “runners.”
In 2008, Wyre was sentenced to 17 years’ imprisonment for illegally possessing with intent to distribute cocaine base. He was on federal supervised release at the time of the 2019 conspiracy and distribution charges for which he was convicted Thursday.
The conviction was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois. The investigation was conducted by the Illinois State Police, Illinois State Police Blackhawk Area Task Force, and the Rockford Resident Agency of the FBI Chicago Field Office.
The case was prosecuted by Assistant U.S. Attorneys Robert S. Ladd and Jonathan S. Kim.
Man Sentenced to Eleven Years for Illegally Possessing Firearm While Trafficking Fentanyl in ChicagoRead the Press Release
CHICAGO — A man has been sentenced to eleven years in federal prison for illegally possessing a loaded handgun while trafficking fentanyl and cocaine in Chicago.
THOMAS L. GATES illegally possessed the gun and drugs on the evening of Nov. 16, 2021, in the Old Town neighborhood on Chicago’s North Side. Chicago Police officers detained Gates in the 1500 block of North Sedgwick Avenue after observing him display the firearm to another individual. The officers then discovered approximately 45 small, packaged baggies of fentanyl and cocaine in Gates’s jacket pocket.
Gates had previously been convicted of multiple felonies and was not lawfully allowed to possess a firearm.
Gates, 43, of Chicago, pleaded guilty earlier this year to federal drug and firearm charges. U.S. District Judge Edmond E. Chang imposed the sentence Tuesday after a hearing in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and Larry Snelling, Superintendent of the Chicago Police Department. Valuable assistance was provided by the FBI, DEA, and Illinois State Police.
“Possession with the intent to distribute controlled substances and possession of a firearm in furtherance of drug trafficking are extremely serious offenses,” Assistant U.S. Attorney Beth E. Palmer argued in the government’s sentencing memorandum. “Defendant posed a severe threat to the community, which is already plagued by gun violence, when he carried a loaded semi-automatic weapon on a public street to protect his drug distributions.”
Joliet Man Sentenced to More Than Two Years in Federal Prison for Illegally Possessing Firearm While on Court-Supervised ReleaseRead the Press Release
CHICAGO — A federal judge has sentenced a Joliet man to more than two years in prison for illegally possessing a loaded handgun while on court-supervised release for a drug conviction.
GARY MCDONALD, 50, illegally possessed the gun on Oct. 8, 2023, in a vehicle parked in the 1000 block of Sherman Street in Joliet. McDonald had been released from federal prison in 2020 after serving time for a drug conspiracy conviction. He was to remain on court-supervised release until 2025, during which time he was not allowed to, among other things, possess a firearm or commit another federal or state crime.
After a hearing in federal court on Nov. 30, 2023, U.S. District Judge John Robert Blakey found that McDonald violated the conditions of supervised release. Judge Blakey revoked McDonald’s release and sentenced him to an additional two years and three months in federal prison.
The government was represented at the hearing by Assistant U.S. Attorney Misty N. Wright. Valuable assistance with the supervised release prosecution was provided by the Joliet Police Department and the FBI.
“Violating supervised release by possessing a loaded firearm is a serious offense that carries with it serious consequences,” said Morris Pasqual, Acting United States Attorney for the Northern District of Illinois. “We will continue to work with our law enforcement partners to prosecute serious violations of supervised release as appropriate.”
Two Men Indicted in Federal Court in Connection with the Robbery and Murder of a Man in ChicagoRead the Press Release
CHICAGO — Two men have been indicted in federal court in connection with the robbery and murder of a man in Chicago last year.
JAYLAN WILLIAMS and BRANDON CUNNINGHAM conspired to rob Anthony Oliver in Chicago’s North Lawndale neighborhood on Sept. 13, 2022, according to a superseding indictment returned Tuesday in U.S. District Court in Chicago. During the robbery, Williams and Cunningham murdered Oliver, the indictment states.
The superseding indictment charges Williams, 23, and Cunningham, 21, both of Chicago, with robbery conspiracy, robbery, and firearm counts. Williams and Cunningham have been ordered detained in law enforcement custody pending trial.
The superseding indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and Larry Snelling, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Elly M. Peirson.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charges against Williams and Cunningham carry a maximum penalty of death. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory United States Sentencing Guidelines.
Williams and Cunningham indictmentSuburban Chicago Man Admits Trafficking Fentanyl and Attempting to Support ISISRead the Press Release
A suburban Chicago man admitted in federal court today that he trafficked fentanyl and other drugs and attempted to provide material support to the Islamic State of Iraq and al-Sham, aka ISIS.
According to court documents, Jason Brown, 41, of Lombard, Illinois, pleaded guilty to one count of attempting to provide material support to ISIS, one count of distributing fentanyl and one count of possessing a firearm in furtherance of a drug trafficking crime.
Brown admitted in a plea agreement that on three occasions in 2019 he provided $500 in cash to an individual with the understanding that the money would be wired to an ISIS soldier engaged in terrorist activity in Syria. Unbeknownst to Brown, the individual to whom he provided the money was confidentially working with law enforcement, and the purported ISIS fighter was actually an undercover law enforcement officer.
Brown further admitted that in 2019 he trafficked fentanyl from California to the Chicago suburbs and illegally possessed several loaded handguns in furtherance of his drug trafficking activities.
Brown faces a mandatory minimum penalty of five years in prison and a maximum penalty of life in prison for the firearms charge; a mandatory minimum penalty of five years in prison and a maximum penalty of 40 years in prison for the drug charge; and a maximum penalty of 20 years in prison for the terrorism charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Brown has been in law enforcement custody since his arrest in 2019. U.S. District Judge Mary M. Rowland set sentencing for May 28, 2024.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois and Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. Special Agent in Charge Robert W. “Wes” Wheeler Jr. of the FBI Chicago Field Office, Special Agent in Charge Justin Campbell of the IRS Criminal Investigation in Chicago and Superintendent Larry Snelling of the Chicago Police Department made the announcement.
Substantial assistance was provided by the Illinois State Police, U.S. Postal Inspection Service, U.S. Customs and Border Protection, Homeland Security Investigations, Lombard (Illinois) Police Department and Addison (Illinois) Police Department.
Assistant U.S. Attorney Shawn McCarthy for the Northern District of Illinois and Trial Attorney S. Elisa Poteat of the National Security Division’s Counterterrorism Section are prosecuting the case.
Suburban Chicago Man Admits Trafficking Fentanyl and Attempting to Support ISISRead the Press Release
CHICAGO — A suburban Chicago man admitted in federal court today that he trafficked fentanyl and other drugs and attempted to provide material support to the Islamic State of Iraq and al-Sham, also known as ISIS.
JASON BROWN, 41, of Lombard, Ill., pleaded guilty to one count of attempting to provide material support to ISIS, one count of distributing fentanyl, and one count of possessing a firearm in furtherance of a drug trafficking crime. The firearm charge is punishable by a mandatory minimum sentence of five years in federal prison and a maximum of life. The drug charge is punishable by a mandatory minimum sentence of five years and a maximum of 40 years, and the terrorism charge is punishable by a maximum of 20 years. Brown has been in law enforcement custody since his arrest in 2019. U.S. District Judge Mary M. Rowland set sentencing for May 28, 2024, at 11:00 a.m.
Brown admitted in a plea agreement that on three occasions in 2019 he provided $500 in cash to an individual with the understanding that the money would be wired to an ISIS soldier engaged in terrorist activity in Syria. Unbeknownst to Brown, the individual to whom he provided the money was confidentially working with law enforcement, and the purported ISIS fighter was actually an undercover law enforcement officer.
Brown further admitted that in 2019 he trafficked fentanyl from California to the Chicago suburbs and illegally possessed several loaded handguns in furtherance of his drug trafficking activities.
The plea agreement was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Matthew G. Olsen, Assistant Attorney General for National Security at the U.S. Department of Justice; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Larry Snelling, Superintendent of the Chicago Police Department. Substantial assistance was provided by the Illinois State Police, U.S. Postal Inspection Service, U.S. Customs and Border Protection, Homeland Security Investigations, Lombard (Ill.) Police Department, Addison (Ill.) Police Department, and FBI Field Offices in Atlanta, Los Angeles, and San Diego. The government is represented by Assistant U.S. Attorney Shawn McCarthy of the Northern District of Illinois and S. Elisa Poteat, Trial Attorney from the National Security Division, Counterterrorism Section.
Brown plea agreementMan Pleads Guilty to Shooting Federal Agents in ChicagoRead the Press Release
CHICAGO — A man has pleaded guilty in federal court to shooting two federal agents and a task force officer who were conducting a covert investigation in Chicago.
EUGENE MCLAURIN, 31, of Chicago, pleaded guilty Tuesday to three counts of assaulting a federal officer and two counts of using a firearm during a crime of violence. Each firearm count is punishable by a mandatory minimum sentence of ten years in federal prison and a maximum of life. Each assault count is punishable by up to 20 years. McLaurin has been detained in federal custody since his arrest in 2021. U.S. District Judge Manish S. Shah set sentencing for March 13, 2024, at 1:30 p.m.
The shootings occurred on the morning of July 7, 2021, when two agents from the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives and an ATF Task Force officer were driving in an unmarked law enforcement vehicle while conducting a covert federal investigation on the South Side of Chicago. McLaurin admitted in a plea agreement that he had mistakenly suspected the officers were members of an opposing gang. After following the officers’ vehicle, McLaurin pulled alongside it as the vehicle reached an on-ramp to the I-57 expressway and fired several shots at the officers. The two agents and task force officer were wounded and suffered serious injuries.
Shortly after the shooting, McLaurin disposed of his handgun in a sewer drain and hid the key to his vehicle in the basement of his residence in order to conceal evidence of his involvement in the shootings.
The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of ATF, and Larry Snelling, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Illinois State Police. The government is represented by Assistant U.S. Attorneys Jared Jodrey, Jasmina Vajzovic, and Elizabeth Pozolo.
Man Charged in Federal Court with Conspiring to Rob Armored Trucks and ATMs in Chicago SuburbsRead the Press Release
CHICAGO — A man was charged in federal court today with conspiring to rob armored trucks and ATMs in Chicago suburbs this year.
BRIAN SNYDER, 24, of Chicago, is charged with conspiracy to commit robbery in a criminal complaint filed today in U.S. District Court in Chicago. Snyder is currently detained in law enforcement custody.
According to the complaint, Snyder conspired with others to rob two armored trucks in the Chicago suburbs of Country Club Hills and Chicago Heights, and three ATMs in the Chicago suburbs of Lansing, Blue Island, and Homewood. The conspirators also later attempted to rob a second armored truck in Country Club Hills but did not obtain any money.
In the armored truck robberies, two to five robbers armed with handguns took cash from the truck drivers as they were servicing ATMs or stores, the complaint states. The conspirators often drove stolen vehicles to the robbery locations and abandoned the vehicles afterward, the complaint states.
The complaint was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and Larry Snelling, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorneys Elie Zenner, Simar Khera, and Kirsten Moran.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The robbery conspiracy charge is punishable by a maximum sentence of 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Snyder complaintTwo Men Charged in Murder-for-Hire Plot That Resulted in Fatal Shooting in ChicagoRead the Press Release
CHICAGO — Two men have been indicted in federal court in an alleged murder-for-hire conspiracy that resulted in a fatal shooting in Chicago’s Roseland neighborhood.
ANTHONY MONTGOMERY-WILSON, 24, and PRESTON POWELL, 23, both of Chicago, are charged with conspiracy to use an interstate facility in the commission of a murder for hire, according to an indictment unsealed Wednesday in U.S. District Court in Chicago. The pair is also charged with an individual murder-for-hire count, while Montgomery-Wilson also faces a firearm charge.
According to the indictment and a search warrant filed in the case, Montgomery-Wilson and Powell conspired with each other and others to murder Stephon Mack in exchange for money. On the afternoon of Jan. 27, 2022, Mack, 24, was fatally wounded when two gunmen emerged from a vehicle and fired several shots as Mack exited the Youth Peace Center of Roseland in the 400 block of West 111th Street. A security guard from the Center was also wounded in the shooting but survived.
Montgomery-Wilson is in law enforcement custody. He pleaded not guilty Wednesday during his arraignment before Chief U.S. Magistrate Judge Young B. Kim in Chicago. A status hearing for Montgomery-Wilson was scheduled for Jan. 16, 2024.
Powell is considered a fugitive and a warrant has been issued for his arrest.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the FBI Chicago Field Office, and Larry Snelling, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Illinois Department of Corrections Northern Region Intelligence Unit. The government is represented by Assistant U.S. Attorneys Jared C. Jodrey, Jason A. Julien, and Brian F. Williamson.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The murder-for-hire charges each carry a mandatory sentence of life in federal prison, while a sentence of death is also possible. The firearm charge against Montgomery-Wilson is punishable by up to ten years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Montgomery-Wilson et al indictmentSinaloa Cartel Associate Sentenced to More Than Eleven Years in Prison for Conspiring to Traffic Cocaine in Chicago AreaRead the Press Release
CHICAGO — An associate of the Sinaloa drug cartel has been sentenced to more than eleven years in federal prison for conspiring to traffic at least 40 kilograms of cocaine in the Chicago area.
ROBERTO VELAZQUEZ MARTINEZ, 39, of Santiago Papasquiaro, Mexico, conspired with several individuals to import and distribute the cocaine into the United States on behalf of drug traffickers in Mexico. Velazquez traveled to Chicago in the fall of 2018 to arrange a multi-kilogram cocaine shipment with co-conspirators and two other individuals posing as Columbian drug traffickers who were actually working confidentially with U.S. law enforcement. Velazquez fled the U.S. after a failed cocaine deal in Stickney, Ill., on Dec. 4, 2018. He was arrested in 2019 in Peru and extradited to the U.S. in 2020.
Velazquez pleaded guilty earlier this year to a drug conspiracy charge. U.S. District Judge Joan Humphrey Lefkow imposed the 136-month prison sentence Tuesday after a hearing in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; and Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration. Valuable assistance was provided by the Justice Department’s Office of International Affairs, U.S. Customs and Border Protection, U.S. Marshals Service, and INTERPOL. The government was represented by Assistant U.S. Attorney Aaron R. Bond.
The investigation was conducted with the support of the Chicago HIDTA and OCDETF Task Forces, which are comprised of federal, state, and local law enforcement agencies working together to identify, disrupt, and dismantle the most serious drug trafficking organizations.
Velazquez was originally charged with four alleged co-conspirators. Three of the alleged co-conspirators are considered fugitives and warrants have been issued for their arrests, while the fourth, LOUIS REYES VELEZ, of Stickney, Ill., has pleaded not guilty to the charges and is awaiting trial.
Chicago Man Convicted of Threatening Violence at Women’s Reproductive ClinicRead the Press Release
CHICAGO — A Chicago man has been convicted in federal court of threatening to commit violence at a women’s reproductive health clinic.
A jury in U.S. District in Chicago on Wednesday convicted FARHAN SHEIKH, 23, of transmitting a threat in interstate commerce. The conviction is punishable by a maximum sentence of five years in federal prison. U.S. District Judge Mary M. Rowland did not immediately set a sentencing date.
The conviction was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Marshals Service and the Chicago Police Department. The government is represented by Assistant U.S. Attorneys Aaron R. Bond and Melody Wells.
Evidence at trial revealed that Sheikh posted the threatening communications on Aug. 13, 2019, on the social media platform iFunny. In one of his posts, Sheikh stated, “I am done with my state and thier (sic) [expletive] abortion laws and allowing innocrnt (sic) kids to be slaughtered for the so called ‘womans right’ [expletive].” Sheikh later wrote that he would visit a clinic in Chicago and “proceed to slaughter and murder any doctor, patient, or visitor I see in the area and I will not back down.”
In posts that immediately followed the threats, Sheikh described his anger at law enforcement and his frustration over the arrest of another individual for making threats online. Sheikh referred to the other arrest as “surpressing [sic] our freedoms,” and he vowed to “do the same” to “whores.”
Former Clerk for Chicago Transit Authority Retirement Plan Sentenced to a Year in Prison for Fraudulently Obtaining $356,000 in Plan FundsRead the Press Release
CHICAGO — A former clerk for the Retirement Plan for Chicago Transit Authority Employees has been sentenced to a year in federal prison for fraudulently obtaining more than $356,000 in Plan funds.
AYANNA NESBITT created and obtained approval for approximately 43 fraudulent requests for the Plan to issue various benefits to CTA employees or their beneficiaries, including pension and death benefit payments, and refunds of pension contributions. The fraudulent requests contained false representations about the purported recipients’ identities and entitlement to the payments. Nesbitt had the payments sent to financial accounts she controlled or else had the money paid to others and then transferred to Nesbitt. From 2019 to 2021, Nesbitt defrauded the Plan of approximately $356,934.
Nesbitt, 51, of Chicago, pleaded guilty earlier this year to a wire fraud charge. U.S. District Judge Matthew F. Kennelly imposed the year-and-a-day sentence Tuesday after a hearing in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Retirement Plan for CTA Employees provided valuable assistance.
“Defendant was a public employee who abused her position to benefit herself and those close to her,” Assistant U.S. Attorney Christopher K. Veatch argued in the government’s sentencing memorandum.
Federal Grand Jury Indicts Two Men in Connection with Robberies of Suburban Chicago Financial InstitutionsRead the Press Release
CHICAGO — A federal grand jury has returned a superseding indictment against two men for allegedly robbing several banks and a credit union in the Chicago suburbs.
CHARLES LAWLER and TARANDLE LEE committed the robberies in 2021 and 2022, according to a superseding indictment returned in U.S. District Court in Chicago. The charges allege that the pair together robbed four financial institutions and that Lawler robbed another bank by himself. The indictment seeks forfeiture of $29,944 from the defendants.
The indictment identifies the robberies as follows:
- Sept. 22, 2021: Lawler robbed BMO Harris Bank in Naperville, Ill.
- Sept. 28, 2021: Lawler and Lee robbed Old Second Bank in Lisle, Ill.
- Oct. 6, 2021: Lawler and Lee robbed Bank Financial in Westmont, Ill.
- Jan. 3, 2022: Lawler and Lee robbed BMO Harris Bank in Woodridge, Ill.
- April 14, 2022: Lawler and Lee robbed DuPage Credit Union in Downers Grove, Ill.
Lawler, 53, of Villa Park, Ill., and Lee, 44, of Bolingbrook, Ill., are currently detained in law enforcement custody. Arraignments are set for Tuesday at 9:30 a.m. before U.S. District Judge Robert W. Gettleman.
The superseding indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Substantial assistance was provided by the Naperville, Ill. Police Department, Lisle, Ill. Police Department, Westmont, Ill. Police Department, Woodridge, Ill. Police Department, Downers Grove, Ill. Police Department, Skokie, Ill. Police Department, and Evanston, Ill. Police Department. The government is represented by Assistant U.S. Attorney Alejandro G. Ortega.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Lawler and Lee superseding indictmentThree Men Indicted on Federal Racketeering Charge for Allegedly Murdering Man to Increase Positions in Chicago Street GangRead the Press Release
CHICAGO — Three men have been indicted on a federal racketeering charge for allegedly murdering a man to maintain and increase their positions in a violent Chicago street gang.
CAMERON CALLISON, 24, JUAN ALCARAZ, 23, and VICTOR RAMIREZ, 24, all of Chicago, are charged with one count of murder in aid of racketeering. Callison, a previously convicted felon, is also charged with illegally possessing a handgun.
The indictment was unsealed today in U.S. District Court in Chicago. It accuses the trio of murdering Victor Ochoa on June 17, 2019, for the purpose of maintaining and increasing their positions in the Ambrose street gang, a criminal organization based on the South Side of Chicago whose members engaged in violence and trafficked narcotics. Ochoa was fatally shot while riding in a vehicle in the 2900 block of North Broadway in Chicago’s Lakeview neighborhood.
The defendants were arrested this morning and will make initial appearances in federal court in Chicago this afternoon. The U.S. Attorney’s Office will be seeking to have the defendants detained pending trial.
The indictment and arrests were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the FBI Chicago Field Office, and Larry Snelling, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorneys Paige Nutini and Maureen McCurry.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Murder in aid of racketeering is punishable by a mandatory sentence of life in federal prison, and the death penalty is also possible. The firearm charge against Callison is punishable by up to ten years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Callison et al indictmentMayor of Riverdale, Ill. Indicted on Perjury and Obstruction ChargesRead the Press Release
CHICAGO — A federal grand jury in Chicago has indicted the mayor of Riverdale, Ill. for allegedly lying under oath in a civil deposition and corruptly obstructing a lawsuit that claimed the mayor retaliated against a former city vendor.
LAWRENCE JACKSON, 49, of Riverdale, Ill, is charged with one count of perjury and one count of obstruction of justice, according to the indictment returned Wednesday in U.S. District Court in Chicago. Arraignment has not yet been scheduled.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, Machelle L. Jindra, Special Agent-in-Charge of the Chicago office of the U.S. Department of Housing and Urban Development’s Office of Inspector General, Ruth M. Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service, and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. Substantial assistance was provided by the Illinois State Police. The government is represented by Assistant U.S. Attorneys Sean Franzblau and Kirsten Moran, and Special Assistant U.S. Attorney Brian Netols.
According to the indictment, Tri-State Disposal Inc., a waste management company in Riverdale, filed a civil lawsuit against Riverdale and Jackson in 2018, alleging that Jackson retaliated against Tri-State by refusing to renew its garbage collection contract with the city. The owners of Tri-State had spoken out publicly against the city’s issuance of a zoning permit that allowed a recycling and waste transfer business to operate in Riverdale. The recycling business was owned by an individual aligned with Jackson who had allegedly assisted the mayor in replacing Tri-State with a different garbage collection company.
Tri-State’s lawsuit alleged that Jackson caused the city to give preferential treatment to the recycling business at the expense of Tri-State. Jackson participated in a deposition in the suit on Feb. 25, 2021, and answered questions under oath by an attorney for Tri-State. Jackson’s answers were intended to conceal his relationship with the recycling company’s owner, including the owner’s extensive involvement in the operations of Centennial Holdings, a trucking company that Jackson and his wife owned on paper, but which was effectively operated by the recycling company’s owner for Jackson and his wife’s benefit, the indictment states. In the deposition, Jackson falsely testified that a Riverdale village administrator introduced him to the other garbage collection company and recommended that it replace Tri-State, even though he knew that the recycling company’s owner made the introduction and recommendation, the indictment states. During the deposition, Jackson exchanged text messages with the recycling company’s owner regarding the topics being discussed, the indictment states.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The obstruction charge is punishable by up to 20 years in federal prison, while the perjury charge carries a maximum sentence of five years.
Jackson indictmentFormer HSI Special Agent Sentenced to More Than Six Years in Prison on Tax, Structuring, and Concealment ChargesRead the Press Release
CHICAGO — A former special agent with Homeland Security Investigations (HSI) has been sentenced to more than six years in federal prison for tax, structuring, and concealment offenses.
A jury in May convicted ANTHONY SABAINI, 41, of Naperville, Ill., of illegally structuring financial transactions, concealing material facts from the U.S. Department of Homeland Security, and filing false federal tax returns. In addition to the 74-month prison sentence, U.S. District Judge Andrea R. Wood on Thursday ordered Sabaini to pay $93,422 in restitution to the IRS.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago, Joseph V. Cuffari, Inspector General for DHS, and Michael K. Finerty, Resident Agent-in-Charge of the Office of Professional Responsibility at DHS. Valuable assistance was provided by the DEA.
“Corrupt law enforcement strikes at the heart of our system of government,” Assistant U.S. Attorneys Jared Hasten and Jonathan Shih argued in the prosecution’s sentencing memorandum. “When individuals in law enforcement break the law, it makes the job of legitimate law enforcement that much harder because it erodes public trust.”
Sabaini was assigned to the Oakbrook Terrace, Ill. field office of HSI, a criminal investigative unit within DHS. Evidence at trial revealed that Sabaini maintained a corrupt relationship with an HSI confidential informant and tipped off the informant to sensitive investigations conducted by other law enforcement agencies, including the FBI and DEA. In exchange for Sabaini’s protection, the informant paid Sabaini at least $50,000. Sabaini also stole cash from drug dealers and pocketed money from HSI that had been earmarked for investigative activity.
Sabaini deposited more than $250,000 into a bank account for which he was the sole signatory. He made the deposits in more than 160 transactions, with the amount of each deposit being less than $10,000. The deposits were structured in an effort to evade federal reporting rules, which require financial institutions to notify the U.S. Department of the Treasury about transactions of more than $10,000.
The evidence also showed that Sabaini lied on official HSI memoranda in 2017 and 2018 to protect his corrupt relationship with the informant. In the memoranda, Sabaini knowingly concealed material facts, including that the informant was a target of ongoing criminal investigations conducted by other law enforcement agencies, and that the informant had recently engaged in unauthorized criminal conduct that Sabaini knew would have affected his suitability as a paid HSI informant.
Sabaini also underreported income in federal tax returns from 2014 to 2018.
A separate federal jury in 2021 convicted Sabaini’s partner, FERNANDO ZAMBRANO, of lying to investigators during the Sabaini probe. Zambrano was a Palos Heights Police Officer assigned to an HSI task force. Zambrano was sentenced to three months in federal prison.
Chicago Attorney Indicted on Immigration Fraud ChargesRead the Press Release
CHICAGO — A Chicago attorney has been indicted on federal fraud charges for allegedly providing false and fraudulent information to U.S. authorities to obtain immigration benefits for his foreign national clients.
MOHAMMAD REZA BANIASSADI owned and operated The Law Offices of Reza Baniassadi, which had offices in Chicago. From 2013 to 2020, Baniassadi conspired with two employees of his firm and others to knowingly provide false and fraudulent information to U.S. Citizenship and Immigration Services on behalf of his foreign national clients who were seeking U.S. immigration benefits, according to an indictment unsealed Thursday in U.S. District Court in Chicago. Baniassadi advised clients to enter into sham marriages with U.S. citizens or lawful permanent U.S. residents in order to obtain benefits, the indictment states. Among other schemes charged in the indictment, Baniassadi allegedly helped clients cheat on oral civics exams, falsified claims of spousal abuse purportedly suffered by clients, and fabricated job offers from U.S. companies that would purportedly sponsor clients for residency.
The indictment charges Baniassadi, 65, of Chicago, with one count of conspiracy to commit immigration fraud and five individual counts of falsifying applications for immigration benefits. Baniassadi is considered a fugitive. A warrant for his arrest has been issued.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Joseph V. Cuffari, Inspector General for the Department of Homeland Security. The government is represented by Assistant U.S. Attorney Corey B. Rubenstein.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of visa fraud is punishable by up to ten years in federal prison, while the conspiracy count carries a maximum sentence of five years.
Baniassadi indictmentPresident of Suburban Chicago Environmental Company Indicted for Allegedly Obstructing Federal Probe into Grant Funding of Hotel Demolition ProjectRead the Press Release
CHICAGO — A federal grand jury has indicted the president of an environmental services company for allegedly obstructing an investigation into the grant funding of a hotel demolition project in the Chicago suburb of Harvey, Ill.
CARL FIORAVANTI, 55, of Lansing, Ill., is charged with one count of obstruction of justice, according to an indictment returned Wednesday in U.S. District Court in Chicago. The charge is punishable by up to 20 years in federal prison. Arraignment in federal court has not yet been scheduled.
According to the indictment, Fioravanti was the president of Alliance Environmental Control, Inc., a Lansing, Ill.-based company that performed asbestos testing and removal services. In 2017, Alliance was hired by the Cook County Land Bank Authority to conduct an asbestos survey in advance of the demolition of the Chicago Park Hotel, commonly known as the “Harvey Hotel,” in Harvey, Ill. The Land Bank Authority had acquired the hotel and intended to use a Community Development Block Grant from the U.S. Department of Housing and Urban Development to demolish and repurpose the property.
Fioravanti submitted the asbestos survey to the Land Bank Authority in the fall of 2017, stating that asbestos was present on the Harvey Hotel site, the indictment states. Alliance was later hired as a subcontractor on the project by a Chicago-area demolition company that was chosen by the Land Bank Authority to demolish the hotel.
In September 2018, a federal investigation led by HUD’s Office of Inspector General, the Environmental Protection Agency’s Criminal Investigation Division, and the FBI, probed whether Alliance accurately described the amount of asbestos on the property in its survey to the Land Bank Authority and the amount of asbestos removed from the property in an asbestos waste manifest that Alliance provided to a landfill operator, as well as whether Alliance and the demolition company had received Community Development Block Grant funds to which they were not entitled in connection with the hotel demolition. The indictment alleges that Fioravanti intended to impede, obstruct, and influence the investigation when he responded to a subpoena from HUD-OIG by providing asbestos waste manifests that had been altered to reflect that a different quantity of asbestos was removed from the hotel site and delivered to the landfill.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Machelle L. Jindra, Special Agent-in-Charge of HUD-OIG in Chicago, Robert W. “Wes” Wheeler, Jr., Special Agent in Charge of the Chicago Field Office of the FBI, Lisa Matovic, Acting Special Agent-in-Charge of EPA-CID, Nic Evans, Special Agent-in Charge of EPA’s Office of Inspector General, Justin Campbell, Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division, and Ruth M. Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service. The government is represented by Assistant U.S. Attorneys Sean Franzblau, Kirsten Moran, and Brian Netols.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Fioravanti indictment