Northern District of Illinois
Press releases recorded for this federal judicial district.
Suburban Chicago Man Charged with Insider TradingRead the Press Release
CHICAGO — A suburban Chicago man used insider information obtained from his spouse to purchase options in a biotech company’s stock before it was acquired by a large pharmaceutical company, according to a federal criminal charge filed by the U.S. Attorney’s Office in Chicago.
In the spring of 2019, BRIAN RUBIN made $90,450 in illegal profits from the purchase and sale of stock options in the Colorado-based biotech company that employed Rubin’s spouse, according to the criminal information filed Tuesday in U.S. District Court in Chicago. Unbeknownst to his spouse, Rubin used material, non-public information obtained from her about the biotech company’s successful development of certain products and its expected acquisition by the New York-based pharmaceutical company to purchase the options ahead of a public announcement of the acquisition in June 2019, the charge alleges. After the announcement, the biotech company’s stock price increased and Rubin exercised the options for the profit, the charge alleges. Rubin’s spouse had learned the information through her position as an account director for the biotech company’s Midwest operations, the charge alleges.
Rubin, 51, of Deerfield, Ill., is charged with one count of securities fraud. The charge is punishable by up to 20 years in federal prison. Arraignment in federal court in Chicago has not yet been scheduled.
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 U.S. Securities and Exchange Commission, which filed a civil enforcement action against Rubin, provided valuable assistance. Assistant U.S. Attorneys Jared Hasten and Adam Rosenbloom represent the government in the criminal case.
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.
Rubin informationBusinessman Sentenced to Five and a Half Years in Prison for Participating in Bribery Scheme with Former Illinois State LawmakerRead the Press Release
CHICAGO — A federal judge in Chicago has sentenced the manager of a sweepstakes gaming company to five and a half years in prison for participating in a bribery scheme with an Illinois state lawmaker.
In 2018 and 2019, JAMES T. WEISS paid thousands of dollars in bribes to then-Illinois State Representative Luis Arroyo. The bribes were paid from Weiss’s gaming company, Collage LLC, in the form of checks made payable to Spartacus 3 LLC, Arroyo’s private lobbying firm in Chicago. In exchange for those bribes, Arroyo promoted legislation in the Illinois General Assembly related to the sweepstakes industry and advised other state lawmakers to support the legislation.
In August 2019, Arroyo offered to have bribe payments made to an Illinois State Senator in return for the Senator’s support of sweepstakes-related legislation. As part of the scheme, Weiss agreed to conceal the bribe payments by making them appear as if they were for legitimate consulting work. Thereafter, in furtherance of this effort to conceal the bribes intended for the Senator, Weiss caused two checks totaling $5,000 to be delivered to the Senator. Each check was made payable to a fictitious third party and labeled as a consulting payment. Weiss later falsely told law enforcement that he had personally spoken to the fictitious third party.
Arroyo, who represented the 3rd District in the Illinois House of Representatives from 2006 to 2019, pleaded guilty to his role in the bribery scheme and was sentenced in 2022 to nearly five years in federal prison.
A federal jury in June convicted Weiss, 44, of River Grove, Ill., on fraud and false statement charges. U.S. District Judge Steven C. Seeger imposed the sentence Wednesday 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; 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 Chicago office of the IRS Criminal Investigation Division. The government was represented by Assistant U.S. Attorneys Christine M. O’Neill and Sean Franzblau.
Federal Jury in Chicago Convicts Man of Sexually Exploiting Child He Met OnlineRead the Press Release
CHICAGO — A federal jury in Chicago has convicted an Ohio man of enticing a 16-year-old Illinois girl into sending him sexually explicit images of herself.
ANDREW BOLTZ, 25, of Kenton, Ohio, was convicted Tuesday on all five counts against him, including four counts of sexual exploitation of a child and one count of receipt of child pornography. Each exploitation conviction is punishable by a mandatory minimum sentence of 15 years in federal prison and a maximum of 30 years. The child pornography conviction is punishable by a mandatory minimum sentence of five years in federal prison and a maximum of 20 years. U.S. District Judge John Robert Blakey did not immediately set a sentencing date.
Boltz began communicating with the then-16-year-old girl in January 2020 on the social media application Omegle. Boltz continued communicating with her via text messaging and the social media application Snapchat. During these communications, Boltz enticed the victim into sending him sexually explicit images of herself. Boltz instructed the girl on what type of sexually explicit conduct should be portrayed in the images.
Boltz was convicted after a six-day trial in U.S. District Court in Chicago. The victim bravely testified at trial about being manipulated and degraded by Boltz.
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. Valuable assistance was provided by the Peru, Ill. Police Department, the LaSalle County, Ill. State’s Attorney’s Office, the Wilmington, Ill. Police Department, the Will County, Ill. State’s Attorney’s Office, the Will County, Ill. Children's Advocacy Center, the Norwalk, Ohio Police Department, and the Cleveland, Ohio Field Office of the FBI. Assistant U.S. Attorneys Elly M. Peirson, Edward A. Liva, Jr., and Kavitha Babu represent the government.
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 https://www.missingkids.org/ or calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Federal Judge Sentences Rockford Man to More Than Six Years in Prison for Illegally Possessing FirearmRead the Press Release
ROCKFORD — A federal judge has sentenced a Rockford man to more than six years in federal prison for illegally possessing a firearm in Rockford.
U.S. District Judge Philip G. Reinhard on Tuesday sentenced WILLIE EVANS, 35, to eighty months in prison. Evans pleaded guilty earlier this year to a charge of illegal firearm possession. As a previously convicted felon, Evans was prohibited by federal law from possessing a firearm.
Evans admitted in a plea agreement that while in Rockford on Feb. 23, 2022, he possessed a handgun that had been loaded with 13 rounds of ammunition, including one in the chamber. Evans also admitted that he possessed several small baggies containing cocaine and ecstasy that he intended to sell to others.
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 & Explosives, and Carla Redd, Chief of the Rockford Police Department.
“Defendant’s offense endangered the community because he was not only illegally in possession of a firearm but was engaged in drug trafficking,” Assistant U.S. Attorney Theodora Anderson argued in the government’s sentencing memorandum. “Drug trafficking and gun violence go hand-in-hand and pose a real threat to the community.”
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Cook County Man Sentenced in Rockford to More Than Five Years in Prison for Mail Fraud and Aggravated Identity TheftRead the Press Release
ROCKFORD — A Cook County man has been sentenced to more than five years in federal prison after pleading guilty to mail fraud and aggravated identity theft.
ROBERT CARTER, 29, of Homewood, Ill., was sentenced Wednesday by U.S. District Judge Philip G. Reinhard to 64 months in prison and ordered to pay more than $1 million in restitution.
According to his plea agreement, from June 2020 through March 2021, Carter and others schemed to submit fraudulent unemployment insurance claims to the California Employment Development Department, the Maryland Division of Unemployment Insurance, and the Virginia Employment Commission. Carter used Social Security numbers and dates of birth of others without their knowledge or consent to submit unemployment claims. Carter opted to have the unemployment benefits paid via debit cards mailed to residences connected to Carter and others involved in the scheme, then withdrew funds from the debit cards at financial institutions and ATMs in Illinois.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Irene Lindow, Special Agent-in-Charge of the Chicago Region of the Department of Labor – Office of Inspector General, and Ruth M. Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service. The government was represented by Assistant U.S. Attorney Robert S. Ladd.
“Robert Carter engaged in a scheme to fraudulently obtain more than $1 million in unemployment insurance funds by applying for benefits in the names of identity theft victims,” said SAC Lindow. “Carter stole benefits set aside by the federal government to assist American workers struggling during the COVID-19 pandemic. We are grateful to the U.S. Attorney’s Office and the U.S. Postal Inspection Service for their strong partnership and collaboration on these types of investigations.”
Leader of Chicago Drug Trafficking Organization Sentenced to 12 and a Half Years in PrisonRead the Press Release
CHICAGO — A leader of a drug trafficking organization that sold heroin, fentanyl-laced heroin, and fentanyl-analogue laced heroin on the Northwest Side of Chicago has been sentenced to twelve and a half years in federal prison.
KELVIN FRANKLIN conspired with more than 15 others to traffic narcotics in Chicago’s Humboldt Park neighborhood in 2019. A lengthy investigation, led by the U.S. Drug Enforcement Administration and Chicago Police Department, shut down an open-air drug market utilized by the conspirators in the 1000 block of North Monticello Avenue in Chicago. During the probe, agents and officers made approximately eighty undercover purchases of heroin, fentanyl-laced heroin, and fentanyl-analogue laced heroin from various members of the crew. The dealers occasionally held “pass outs” of free drugs to entice customers to buy additional drugs from them.
Franklin supervised other traffickers and also personally sold some of the drugs. He and other managers coordinated with street-level dealers to ensure that they had sufficient quantities of narcotics to distribute to customers. In addition to the drug sales, Franklin also attempted to procure a loaded handgun for a member of the crew at the open-air market. Law enforcement intervened and the gun was seized.
Franklin, 32, of Chicago, pleaded guilty earlier this year to a federal drug conspiracy charge. U.S. District Judge John J. Tharp, Jr. imposed the sentence Monday after a hearing in federal court in Chicago.
Franklin’s 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, and Larry Snelling, Superintendent of CPD. Substantial assistance was provided by the Cook County State’s Attorney’s Office and the IRS Criminal Investigation Division in Chicago. Assistant U.S. Attorneys Richard M. Rothblatt and Jason A. Julien represented the government.
The investigation was conducted with the support of the Chicago High Intensity Drug Trafficking Task Force (HIDTA). The task force is comprised of federal, state, and local law enforcement agencies who work together to identify, disrupt, and dismantle the most serious drug trafficking organizations.
Franklin was one of 18 individuals charged in federal court in 2020 as part of the investigation. To date, 16 federal defendants have pleaded guilty.
Carjacking at Suburban Chicago Gas Station Leads to Ten-Year Federal Prison SentenceRead the Press Release
CHICAGO — A suburban Chicago man has been sentenced to ten years in federal prison for carjacking a vehicle at gunpoint while a woman and her two children were inside.
The carjacking occurred on the afternoon of July 27, 2022, at Thorntons gas station in Posen, Ill. The woman was entering the driver’s seat of her Kia Optima when KEWAN TILLMAN approached, pointed a loaded handgun at her, and demanded the key. The victim was able to get the two children out of the vehicle before Tillman stole the car and drove off. Tillman quickly lost control of the vehicle, got out, and ran back toward the gas station, where he unsuccessfully attempted to force entry into an occupied semi-truck. Tillman then placed the handgun in a sewer and tried to force his way into another vehicle that was parked at a gas pump. After a physical altercation with the driver of that vehicle, Posen Police officers arrested Tillman.
The officers discovered the handgun in the sewer. The gun was equipped with a “Glock switch,” also known as an “auto sear,” and at the time was only capable of firing in fully automatic mode.
Tillman had arrived at the gas station in a Kia Soul that had been reported stolen in Chicago.
Tillman, 20, of Calumet City, Ill., pleaded guilty earlier this year to federal carjacking and firearm charges. U.S. District Judge Elaine E. Bucklo imposed the sentence Friday 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 Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. Substantial assistance was provided by the Posen Police Department. The government was represented by Assistant U.S. Attorney Caitlin Walgamuth.
Two Real Estate Developers Convicted of Conspiring to Embezzle Millions from the Failed Washington Federal Bank in ChicagoRead the Press Release
CHICAGO — A federal jury in Chicago has convicted two real estate developers of participating in a conspiracy that embezzled millions of dollars from the failed Washington Federal Bank for Savings in Chicago.
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. For more than a decade, developers MIROSLAW KREJZA and MAREK MATCZUK were part of a conspiracy that embezzled millions of dollars in bank funds. The embezzled funds were disguised as purported real estate development loan disbursements to Krejza, Matczuk, and others. The conspirators were not required to repay these purported loans, and they never did.
Krejza, 65, of Chicago, and Matczuk, 60, of Park Ridge, Ill., were convicted Friday of conspiring to commit embezzlement and falsify bank records, as well as aiding and abetting embezzlement by bank employees. The jury returned the verdicts after a three-week trial in federal court in Chicago. U.S. District Judge Virginia M. Kendall did not immediately set sentencing dates.
The convictions were 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 and U.S. Customs and Border Protection. The government is represented by Assistant U.S. Attorneys Michelle Petersen, Kristin Pinkston, and Brian Netols, and Special Assistant U.S. Attorney Jeffrey Snell.
The federal investigation into the collapse of Washington Federal 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. Krejza, Matczuk, and two others were convicted after jury trials, while ten defendants pleaded guilty and two entered into deferred prosecution agreements.
Much of the embezzled money was transferred to Chicago attorney ROBERT M. KOWALSKI and other individuals outside the bank without all of the required documentation and often without any documentation whatsoever. A jury earlier this year convicted Robert Kowalski on bankruptcy fraud, bank embezzlement, and false statement charges. His sentencing is set for Jan. 23, 2024. Robert Kowalski’s sister, JAN R. KOWALSKI, also an attorney, pleaded guilty and was sentenced in June 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.
Last month, three former members of Washington Federal’s Board of Directors pleaded guilty to conspiring to falsify bank records to deceive the OCC. WILLIAM M. MAHON, GEORGE F. KOZDEMBA, and JANICE M. WESTON will be sentenced in December.
Last year, Chicago attorney PATRICK D. THOMPSON was convicted 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. Thompson was also convicted of filing tax returns in which he falsely deducted interest that he had not actually paid to Washington Federal.
Former Railroad Employee Sentenced to Two and a Half Years in Federal Prison for Fraudulently Obtaining Disability BenefitsRead the Press Release
CHICAGO – A former railroad engineer has been sentenced to two and a half years in federal prison for fraudulently obtaining disability benefits.
SCOTT CARLBERG operated and managed a tanning salon in Wisconsin for six years while simultaneously receiving occupational disability benefits from the U.S. Railroad Retirement Board. In his application for benefits, Carlberg asserted that he could no longer perform any type of work due to numerous daily limitations, including short-term-memory loss, poor concentration, irritability, frequent loss of temper, and information-processing difficulties. After the benefits were approved, Carlberg misrepresented the nature of his work at the salon and lied about the income he received from it.
A federal jury in Chicago earlier this year convicted Carlberg, 53, of Menomonie, Wisc., on four counts of wire fraud. In addition to the prison term, U.S. District Judge Edmond E. Chang on Tuesday ordered Carlberg to immediately pay more than $279,000 in restitution to the Railroad Retirement Board.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas Williams, Deputy Assistant Inspector General for Investigations at the RRB, 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 was represented by Assistant U.S. Attorneys Richard M. Rothblatt and Michelle Parthum.
Carlberg was one of six defendants charged in Chicago as part of an investigation into fraud perpetrated against benefit programs administered by the RRB to rail workers and their families. The five other defendants pleaded guilty and admitted fraudulently receiving benefits while simultaneously performing various types of work, including construction, landscaping, managing a donut shop, and captaining a charter fishing boat.
If you believe someone you know is receiving fraudulent disability benefits from the U.S. Railroad Retirement Board, you can contact the RRB OIG anonymously by calling 1-800-772-4528 or by sending an email to [email protected].
Chicago Carjacker Sentenced to Six and a Half Years in Federal PrisonRead the Press Release
CHICAGO — A man has been sentenced to six and a half years in federal prison for carjacking a rideshare driver’s vehicle at gunpoint in downtown Chicago.
NOAH RANSOM forcibly stole a Lexus RX350 from a Lyft driver on April 9, 2022. The Lyft driver picked up Ransom and four other men at a downtown Chicago hotel around 4:00 a.m., and shortly thereafter Ransom pointed a gun at the driver and ordered him to stop the car and get out. The victim complied and Ransom drove off with the other men in the victim’s car.
About 90 minutes later, Illinois State Police identified the vehicle on the South Side of Chicago and ordered it to stop, but Ransom continued driving. After a high-speed chase on multiple expressways for nearly 30 minutes, ISP forced the vehicle to a stop in Chicago’s West Loop neighborhood. Ransom was arrested and the handgun was seized.
Ransom, 19, of Chicago, pleaded guilty earlier this year to federal carjacking and firearm charges. U.S. District Judge Matthew F. Kennelly 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; and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by ISP and the Chicago Police Department. The government was represented by Assistant U.S. Attorneys Jared C. Jodrey and Bradley A. Tucker.
“Committing a senseless act of violence like carjacking is a serious crime that will earn you a substantial federal prison sentence,” said Acting U.S. Attorney Pasqual. “We are working tirelessly with our federal, state, and local law enforcement partners to pursue, prosecute, and detain violent carjackers.”
Two Illinois Businessmen Charged in $7.8 Million Covid-Relief FraudRead the Press Release
CHICAGO – Two Illinois businessmen have been indicted on federal charges for allegedly fraudulently obtaining more than $7.8 million in small business loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
SHARHABEEL SHREITEH, an accountant in Palos Hills, Ill., and TRACY MITCHELL, the owner of a business in Joliet, Ill., allegedly engaged in fraud related to the federal Paycheck Protection Program (PPP), which was created by the CARES Act to cover lost revenue due to economic disruptions from the Covid-19 pandemic. A PPP loan allowed the interest and principal to be forgiven if businesses spent a certain amount of the loan proceeds on essential expenses, such as payroll and rent.
An indictment unsealed Tuesday in the Northern District of Illinois alleges that Shreiteh and Mitchell recruited purported sole proprietors, self-employed individuals, and businesses to provide personal identifying information, bank statements, and other documents, and then submitted fraudulent PPP loan applications on their behalf. The applications contained numerous misrepresentations and false statements that inflated the applicants’ payroll, income, and other expenses, the indictment states. In exchange for preparing and submitting the fraudulent applications, Shreiteh and Mitchell received at least $1,000 to $4,000 per successful loan, the indictment states.
The indictment charges 13 counts of wire fraud against Shreiteh, 43, of Crete, Ill., and ten counts against Mitchell, 49, of Plainfield, Ill. Mitchell pleaded not guilty during his arraignment Tuesday in federal court in Chicago. Shreiteh’s arraignment has not yet been scheduled.
The indictment 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 FBI Chicago Field Office. The government is represented by Assistant U.S. Attorney Elie Zenner.
The public is reminded that an indictment contains only charges and 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. Each count of 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.
Anyone with information about attempted Covid-19 fraud can report it to the Department of Justice by calling the National Center for Disaster Fraud at (866) 720-5721, or by filing an online complaint at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Shreiteh et al indictmentFederal Jury Convicts Man of Detonating Pipe Bomb at Suburban Chicago Train StationRead the Press Release
CHICAGO — A federal jury in Chicago has convicted a man of 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, causing damage inside the station and injuring a station agent. About a month later, 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.” Evidence at trial revealed that Zajac felt disrespected when a family member was arrested by Hinsdale Police the prior year.
Zajac, 70, formerly of Oakbrook Terrace, Ill., was convicted Monday of all three counts against him, including one count of attempting to destroy property with an explosive device, 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 device.
The property destruction count carries a mandatory minimum sentence of five years in federal prison and a maximum of 20 years. Each of the other two counts are punishable by a maximum sentence of ten years. U.S. District Judge Matthew F. Kennelly set sentencing for Dec. 13, 2023.
The verdicts were 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, and the U.S. Secret Service. The government is represented by Assistant U.S. Attorneys Brian Kerwin, G. David Rojas, and Andréa L. Campbell.
Former U.S. Postal Service Employee in Chicago Admits Stealing Stimulus Checks from the MailRead the Press Release
CHICAGO — A former U.S. Postal Service employee in Chicago has pleaded guilty in federal court to stealing government stimulus checks from the mail.
OLIVIA L. BRYANT admitted in a plea agreement that in 2020 and 2021 she stole hundreds of pieces of mail from her route in Chicago’s Logan Square neighborhood. Some of the stolen mail contained government stimulus checks that were issued by the U.S. Treasury during the Covid-19 pandemic, the plea agreement states. Bryant admitted that five of the stimulus-check thefts occurred on St. Patrick’s Day 2021 when she removed the checks from her postal satchel and transferred them to her purse.
Bryant, 35, of Chicago, pleaded guilty Thursday to a charge of theft from the U.S. mail. The conviction is punishable by a maximum sentence of five years in federal prison. U.S. District Judge John Robert Blakey set sentencing for Dec. 7, 2023.
The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Scott Pierce, Special Agent-in-Charge of the Chicago Great Lakes Area Field Office of the U.S. Postal Service Office of Inspector General; and J. Russell George, Inspector General of the Treasury Department Inspector General for Tax Administration (TIGTA). The government is represented by Special Assistant U.S. Attorney Malgorzata Tracz Kozaka.
Bryant plea agreementAlleged High-Ranking Member of Sinaloa Cartel Arraigned on Federal Charges Following Extradition from Mexico to the U.S.Read the Press Release
CHICAGO – OVIDIO GUZMAN LOPEZ, 33, of Culiacan, Mexico, was arraigned in federal court in Chicago today after his extradition last week from Mexico to the United States. Guzman Lopez was arrested in Mexico earlier this year pursuant to a U.S. request for his provisional arrest with a view toward extradition.
Guzman Lopez, also known as "El Raton" and "Raton Nuevo," is charged in the Northern District of Illinois with five-counts in a nine-count superseding indictment alleging that from 2008 to 2021, he engaged in a drug trafficking Continuing Criminal Enterprise (CCE), along with additional drug, money laundering, and firearm offenses. Guzman Lopez is charged with conspiring to distribute narcotics from Mexico and elsewhere for importation into the U.S. He pleaded not guilty to the charges during his arraignment today before U.S. District Judge Sharon Johnson Coleman in Chicago. He waived his right to a detention hearing and was ordered to remain detained without bond.
The charges stem from a decades-long collaboration between the Justice Department's Narcotic and Dangerous Drug Section and prosecutors from the Northern District of Illinois and Southern District of California, as well as their law enforcement partners. Guzman Lopez is one of the sons of Joaquin Guzman Loera, also known as "El Chapo," who was convicted by a jury in the Eastern District of New York for his role as the leader of the Sinaloa Cartel. Following Guzman Loera’s arrest in January 2016 and his subsequent extradition to the United States, Guzman Lopez and his three brothers and co-defendants - IVAN ARCHIVALDO GUZMAN SALAZAR, JESUS ALFREDO GUZMAN SALAZAR, and JOAQUIN GUZMAN LOPEZ, collectively known as “the Chapitos” - allegedly assumed their father’s role as leaders of the Sinaloa Cartel. The Chapitos subsequently amassed greater control over the Sinaloa Cartel by allegedly threatening and causing violence, the indictment alleges.
Under the terms of the U.S.-Mexico extradition treaty, the United States had up to 60 days to present a fully supported request, one in compliance with the terms of the treaty. The United States submitted that request in February 2023. A Mexican court reviewed the U.S. request and last month favorably recommended his extradition. The Foreign Ministry reviewed the decision and similarly concluded that Guzman Lopez should be extradited to the United States. The three co-defendants remain at large.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Nicole M. Argentieri, Acting Assistant Attorney General of the Justice Department’s Criminal Division, Luis Quesada, Assistant Director of the FBI’s Criminal Investigative Division, Katrina W. Berger, Executive Associate Director of Homeland Security Investigations, and Anne Milgram, Administrator of the U.S. Drug Enforcement Administration. Substantial assistance in the investigation was provided by IRS Criminal Investigation, the Justice Department’s Office of International Affairs and Office of Enforcement Operations, and the U.S. Marshals Service. The government is represented by Assistant U.S. Attorneys Andrew Erskine and Erika Csicsila of the Northern District of Illinois, Assistant U.S. Attorney Matthew Sutton of the Southern District of California, and Trial Attorney Kirk Handrich of NDDS.
The case is 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 Justice Department thanks the Government of Mexico, including the Mexican Foreign Ministry and the Mexican Attorney General’s Office, for the extradition of Ovidio Guzman Lopez. Earlier today, U.S. Attorney General Merrick B. Garland spoke by phone with Mexico’s Attorney General, Alejandro Gertz Manero, to personally express his gratitude.
The public is reminded that an indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Guzman Lopez et al indictment
Suburban Chicago Man Sentenced to Six and a Half Years in Federal Prison for Dealing Drugs and Illegally Possessing FirearmRead the Press Release
CHICAGO — A suburban Chicago man has been sentenced to six and a half years in federal prison for dealing crack cocaine and illegally possessing a loaded handgun.
In 2020 and 2021, LARRY DENNIS conducted a drug-dealing operation from his residence in Markham, Ill. When a customer arrived outside of the home, Dennis would typically approach the customer or their vehicle to deliver baggies of narcotics in exchange for cash. In December 2020, Dennis pointed a gun at a man during a drug-debt dispute in the driveway of Dennis’s home.
Law enforcement in January 2021 conducted a court-authorized search of Dennis’s residence and discovered cocaine, marijuana, drug packaging materials, and a loaded handgun. Dennis had previously been convicted of multiple state felonies, including firearm offenses, and was not lawfully allowed to possess the gun.
Dennis, 39, pleaded guilty earlier this year to a federal drug charge. U.S. District Judge Sharon Johnson Coleman imposed the sentence Monday 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 Daniel Delaney, Chief of the Midlothian, Ill., Police Department. Valuable assistance in the investigation was provided by the Markham Police Department, Dolton, Ill., Police Department, and Orland Park, Ill., Police Department. The government was represented by Assistant U.S. Attorney Saurish Appleby-Bhattacharjee.
Chicago Gang Member Sentenced to Six Years in Federal Prison for Retaliating Against Witnesses in Criminal InvestigationRead the Press Release
CHICAGO — A member of a Chicago street gang has been sentenced to six years in federal prison for retaliating against two witnesses who were cooperating with the government in a criminal investigation into the gang’s activities.
JAVION BUSH, 23, pleaded guilty earlier this year to an obstruction of justice charge. Bush admitted in a plea agreement that in 2021 he posted an image on Facebook that named the two cooperating individuals and contained a note stating, “All rats must di (sic).” Bush tagged the Facebook accounts of the cooperators in his posting. Bush also threatened one of the cooperators in a direct communication to him on Facebook Messenger, stating, “All rats must die.”
The two cooperators had previously testified before a federal grand jury that was investigating a Chicago street gang faction known as the Goonie Boss/Goonie Gang, of which Bush was a member. Bush learned the identities of the cooperators after viewing a law enforcement report that had been provided to another Goonie member who was being prosecuted by the State of Illinois for murder.
The federal investigation of the Goonie gang spanned several years and resulted in the convictions of numerous members and associates, including three Goonie leaders who were convicted this summer of racketeering conspiracy. The jury in that trial found that members of the gang were liable for six murders while terrorizing the Englewood neighborhood on Chicago’s South Side.
U.S. District Judge John Robert Blakey sentenced Bush on Aug. 30, 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, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Fred Waller, Interim Superintendent of the Chicago Police Department.
“Without witnesses, the truth about an incident will never be found,” Assistant U.S. Attorney Albert Berry III argued in the government’s sentencing memorandum. “Witnesses should be protected at all costs and threatening them should be sanctioned swiftly and severely.”
Suburban Chicago Chiropractor Charged with Fraudulently Billing for Nonexistent ServicesRead the Press Release
CHICAGO — A suburban Chicago chiropractor has been indicted on federal fraud charges for allegedly billing a private insurer for nonexistent services.
SEUNG HAN LIM owned and operated Movement Health and Rehab, also known as Motu Chiropractic and Motu Chiromassage, in Libertyville, Ill. From 2016 to 2019, Lim submitted fraudulent claims to Blue Cross Blue Shield of Illinois for purported health care services that Lim knew were not actually provided, according to an indictment unsealed today in U.S. District Court in Chicago. Some of the fraudulent claims were for services purportedly provided on dates when either Lim or the patient were not in Illinois, the indictment states. Other claims submitted by Lim were for services purportedly rendered by another chiropractor to Lim and Lim’s family members, even though Lim knew that those services were not actually provided by the other chiropractor and that BCBS would have denied the claims had Lim been identified as the rendering provider because the insurer prohibited claims from providers for services rendered to the provider or their immediate family members, the indictment states.
When BCBS attempted to audit Lim’s claims, he prepared false patient medical records and other documents and submitted them to BCBS, the indictment states.
As a result of the scheme, Lim and his clinic fraudulently obtained at least $430,000 from BCBS, the indictment states.
The indictment charges Lim, 40, of Lincolnshire, Ill., with 14 counts of health care fraud. Each count is punishable by up to ten years in federal prison. Lim was scheduled to make an initial court appearance this afternoon before U.S. Magistrate Judge Gabriel A. Fuentes.
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 Irene Lindow, Special Agent-in-Charge of the Great Lakes Region of the U.S. Department of Labor, Office of the Inspector General. The government is represented by Assistant U.S. Attorneys Paige Nutini and Jasmina Vajzovic.
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.
Lim indictmentFormer Chief of Staff to Speaker of the Illinois House Convicted of Lying Under Oath to Federal Grand JuryRead the Press Release
CHICAGO — The former Chief of Staff to the Speaker of the Illinois House of Representatives was convicted today of providing false material testimony under oath to a federal grand jury and attempting to obstruct its investigation into allegations of public corruption.
A jury in U.S. District Court in Chicago found TIMOTHY MAPES, 68, of Springfield, Ill., guilty of one count of making false declarations before a grand jury and one count of attempted obstruction of justice. U.S. District Judge John F. Kness set sentencing for Jan. 10, 2024. The obstruction of justice conviction is punishable by up to 20 years in federal prison, while the false declaration conviction carries a maximum sentence of five years.
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 Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Julia Schwartz and Diane MacArthur.
“Perjury and obstruction of justice are serious offenses that strike at the heart of the truth-seeking mission of the grand jury,” said Acting U.S. Attorney Pasqual. “This conviction should stand as a clear message to witnesses who choose to violate their oath to tell the truth before a grand jury that they will be held accountable.”
"There is no justice without truth,” said FBI SAC Wheeler. “Attempts to undermine the prosecutorial process chip away at trust in our institutions, and this conviction shows that we continue to work with our partners to ensure the integrity of our judicial system."
“Citizens should expect that former public officials will maintain their integrity and be truthful even when it is inconvenient,” said IRS-CI SAC Campbell. “The investigation that resulted in this conviction is a testament to IRS-CI’s and our law enforcement partners’ commitment to ensuring that individuals who do not testify truthfully in the grand jury will be brought to justice.”
Evidence presented at the nearly three-week 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.
U.S. Attorney’s Office Charges Ten Defendants in Drug Trafficking ProbeRead the Press Release
CHICAGO — A federal drug trafficking investigation has resulted in charges against ten individuals for allegedly trafficking fentanyl-laced heroin and other drugs on the South Side of Chicago.
The multi-year investigation, led by the DEA Chicago Field Division and the Chicago High Intensity Drug Trafficking Area program, utilized undercover and controlled narcotics purchases, covert surveillance operations, and wiretapped communications to shut down a drug trafficking operation. Criminal complaints filed in federal court in Chicago allege that the defendants were affiliated with the Gangsters Disciples, a Chicago street gang. The traffickers allegedly used a designated cellular telephone to receive and service narcotics orders, with various defendants taking shifts working the phone to distribute narcotics.
Most of the defendants were arrested Tuesday and have begun making initial appearances in U.S. District Court in Chicago. Law enforcement on Tuesday also executed court-authorized searches of multiple locations in Chicago.
The charges and arrests 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 Field Division of the DEA, Nicholas J. Roti, Executive Director of Chicago HIDTA, and Fred Waller, Interim Superintendent of the Chicago Police Department. Valuable assistance was provided by the U.S. Marshals Service. The government is represented by Assistant U.S. Attorneys Alejandro G. Ortega and Edward Liva.
The case is 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.
Three complaints charge ten individuals with federal narcotics violations:
U.S. v. Ware, et al, 23 CR 409
Charged in this federal drug conspiracy are KEVIN WARE, 49, of Chicago, CHRISTOPHER WARE, 45, of Chicago, BRANDAN ALLEN, 31, of Chicago, RICKY WILLIAMS, 37, of Chicago, DARREL BROOKS, 51, of Chicago, LEROY PRESLEY, 49, of Riverdale, Ill., and ERNEST ROWLETTE, 49, of Chicago.
The charges allege that Kevin Ware led a trafficking organization and oversaw its operation, including managing the potency and supply of the narcotics it sold. He allegedly held discussions with dealers regarding best practices for interacting with customers and what types of deals to offer them. Kevin Ware also allegedly obtained information from his dealers about their interactions with law enforcement. Soon after two law enforcement seizures of suspected narcotics last year, Williams and other dealers reported the incidents to Kevin Ware, the complaint states.
The conspirators allegedly utilized a residence in Chicago’s West Pullman neighborhood as a “stash house” to store narcotics and cash. In 2021 and 2022, undercover law enforcement officers and cooperating sources made approximately 44 controlled purchases of narcotics from members of Kevin Ware’s organization, the charges allege.
U.S. v. Pearson, et al, 23 CR 422
Kevin Ware is also charged in a second federal drug case, along with MICHAEL PEARSON, 49, and JAMIE PEARSON, 46, both of Chicago.
According to the charges, the defendants distributed fentanyl and fentanyl-laced heroin. Michael Pearson allegedly conducted several drug deals in Chicago’s Pullman and West Roseland neighborhoods. One of the alleged deals occurred in May 2021 in a delicatessen in the 10700 block of South Michigan Avenue, where Michael Pearson arranged for the sale of heroin mixed with fentanyl and methamphetamine, the complaint states. Unbeknownst to Michael Pearson, the buyer was cooperating with law enforcement, the complaint states.
U.S. v. Allen, 23 CR 408
Charged with distributing fentanyl and fentanyl-laced heroin is REGINALD ALLEN, 22, of Chicago. Reginald Allen allegedly sold the drugs on the South Side of Chicago on several occasions in 2021 and 2022.
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The public is reminded that complaints contain only charges and are 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.
Allen complaint Pearson et al complaint Ware et al complaintFormer Illinois Department of Children and Family Services Employee and 14 Others Charged in $3.2 Million Fraud SchemeRead the Press Release
CHICAGO — A former Illinois Department of Children and Family Services social worker and 14 others have been indicted on federal charges for allegedly participating in a scheme to fraudulently obtain $3.2 million in state funds intended for childcare services.
A 41-count indictment unsealed Wednesday in U.S. District Court in Chicago alleges that SHAUNTELE Y. PRIDGEON orchestrated the fraud scheme from 2016 to 2022 while serving as a Community Social Service Planner for DCFS in Chicago. Pridgeon fraudulently entered the information of several of her co-defendants into the DCFS computer system and approved them to be paid as providers caring for foster children, the indictment states. Pridgeon directed at least $3.2 million in State of Illinois funds to the co-defendants and others, each of whom agreed to receive the money even though they knew that no foster children were actually in their care, the indictment states. The co-defendants and others then paid bribes and kickbacks to Pridgeon totaling approximately $1.6 million, the indictment states. Pridgeon allegedly used the bribe money to pay personal expenses, including gambling losses at a casino in Hammond, Ind.
The indictment accuses each of Pridgeon’s co-defendants of accepting various amounts of state money for the nonexistent childcare services. For example, LATASHA THOMAS received more than $1.6 million and TRACEY JERVIER received more than $695,000, the indictment states. RONNIE WEBB received more than $228,000, which was paid via checks made payable to “Webb Feet Child Care Inc.,” a bogus company that listed its address as Webb’s residence, the indictment states.
Charged with honest services wire fraud are Pridgeon, 54, of Chicago; Thomas, 48, of Chicago; Jervier, 60, of Chicago; Webb, 57, of South Holland, Ill.; TAHNDREA N. HARPER, 50, of Chicago; JOI SANDERSON, 49, of Frankfort, Ill.; KELLI PAYNE, 49, of Hammond, Ind.; NIKKI GIOVANNI HOUSTON, 53, of Chicago; SHENITA MCGARY, 37, of Chicago; SHERRI BAINES, 45, of Chicago; KEICHA L. LACEY, 50, of Country Club Hills, Ill.; CHRISTINA A. DAVIS, 54, of Chicago; MARISSA TERRY, 36, of Frankfort, Ill.; ARAMIS COLLIER, 39, of Chicago; and AUNSHEREE NELSON, 44, of Chicago.
Most of the defendants were arrested Wednesday and have begun making initial appearances in federal court in Chicago.
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; Brendan F. Kelly, Director of the Illinois State Police; and Ann McIntyre, Inspector General of DCFS. The government is represented by Assistant U.S. Attorneys John D. Mitchell, Bradley A. Tucker, and Christine M. O’Neill.
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.
Pridgeon et al indictmentMan Sentenced to 8 Years in Federal Prison for Laundering Drug MoneyRead the Press Release
CHICAGO — A federal judge in Chicago has sentenced a man to eight years in prison for laundering illegal drug proceeds in the United States on behalf of traffickers in Mexico.
MIGUEL SALINAS SALCEDO served as a Mexico-based “peso broker” who arranged with drug traffickers to trade pesos that he controlled in Mexico for the cash proceeds in the U.S. Salinas Salcedo and others worked to pick up the cash in the U.S., deposit it into various bank accounts, and make corresponding quantities of pesos available to the traffickers in Mexico. Some of the cash pickups occurred in Chicago, Lansing, Ill., and Countryside, Ill.
Unbeknownst to Salinas Salcedo, two individuals to whom he subcontracted the work of picking up the cash were actually undercover law enforcement officers. From 2019 to 2021, the undercover officers accepted approximately 24 cash-pickup assignments set up by Salinas Salcedo for a total of approximately $2.9 million. Beyond the assignments the officers accepted, Salinas Salcedo offered them 103 other assignments that would have totaled approximately $17.9 million. Evidence in the case showed that Salinas Salcedo worked with other partners and did not rely exclusively on the undercover officers to pick up the cash.
Salinas Salcedo, 42, of Sinaloa, Mexico, pleaded guilty earlier this year to a money laundering conspiracy charge. U.S. District Judge Sharon Johnson Coleman imposed the sentence Monday 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, Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago, and Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago.
The case is 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.
“These weren’t just one-off transactions that defendant conducted; he was in the business of laundering funds,” Assistant U.S. Attorney Andrew C. Erskine argued in the government’s sentencing memorandum. “The drugs that were sold to generate the funds at issue undoubtedly caused harm to individuals within the United States both directly and indirectly.”
Three Board Members of Failed Washington Federal Bank in Chicago Guilty of Falsifying Records and Obstructing RegulatorsRead the Press Release
CHICAGO — Three former board members of the failed Washington Federal Bank for Savings in Chicago have pleaded guilty in federal court to conspiring to falsify bank records to deceive the Office of the Comptroller of the Currency.
WILLIAM M. MAHON, 56, of Chicago, and GEORGE F. KOZDEMBA, 73, of Fort Myers, Fla., pleaded guilty to the conspiracy charge during a hearing Monday before U.S. District Judge Virginia M. Kendall. Mahon’s guilty plea also included a tax offense for willfully filing false income tax returns. Last week, JANICE M. WESTON, 65, of Orland Park, Ill., pleaded guilty to the conspiracy charge. Judge Kendall set sentencings for Oct. 20, 2023, for Weston; Dec. 11, 2023, for Mahon; and Dec. 12, 2023, for Kozdemba. The conspiracy charge is punishable by up to five years in federal prison. The additional tax offense against Mahon is punishable by up to three years.
Mahon, Kozdemba, and Weston were members of Washington Federal’s Board of Directors. Weston also served as the bank’s Senior Vice President and Compliance Officer. Washington Federal was closed in 2017 after the OCC determined that the bank was insolvent and had at least $66 million in nonperforming loans. A federal investigation led to criminal charges against 16 defendants, including charges against the bank’s Chief Financial Officer, Treasurer, and other high-ranking employees, for conspiring to embezzle at least $31 million in bank funds. Eight defendants have pleaded guilty or entered into agreements to cooperate with the government.
Much of the money was transferred to Chicago attorney ROBERT M. KOWALSKI and other individuals outside the bank without all of the required documentation and often without any documentation whatsoever. A jury earlier this year convicted Robert Kowalski on embezzlement and fraud charges. He is awaiting sentencing.
Robert Kowalski’s sister, JAN R. KOWALSKI, also an attorney, pleaded guilty and was sentenced in June to more than three years in federal prison for fraudulently enabling her brother to conceal more than $357,000 from creditors and the trustee in his bankruptcy case.
Last year, Chicago attorney PATRICK D. THOMPSON was convicted by a jury 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. Thompson was sentenced to four months in federal prison.
When the OCC was evaluating Washington Federal’s loan portfolio prior to its failure, Mahon, Weston, Kozdemba, and others 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 guilty pleas were 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 Brian Netols, and Special Assistant U.S. Attorney Jeffrey Snell.
Suburban Chicago Man Charged in Federal Court with Trafficking Machine Gun Conversion DevicesRead the Press Release
CHICAGO — A suburban Chicago man has been indicted on federal firearm charges for allegedly trafficking 25 “Glock switches” that convert handguns into fully automatic machine guns.
The indictment charges ANTHONY PRISCO, 20, of Oak Forest, Ill., with illegally possessing and transferring machine guns and illegally possessing a firearm as a previously convicted felon. Prisco has been ordered detained in federal custody without bond. Arraignment is set for Aug. 7, 2023, at 12:00 p.m., before U.S. Magistrate Judge Heather K. McShain.
The charges were 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. The Joliet Metropolitan Area Narcotics Squad provided valuable assistance. The government is represented by Assistant U.S. Attorney Simar Khera.
According to the indictment and a criminal complaint filed in U.S. District Court in Chicago, Prisco in June of this year sold 25 machine gun conversion devices, a firearm with an obliterated serial number, and a 3D printer. Unbeknownst to Prisco, the buyer was an undercover law enforcement officer. The printer that Prisco sold to the officer had been used to print the machine gun conversion devices, the charges allege. A machine gun conversion device, commonly known as a “Glock switch” or “auto sear,” equips firearms to fire multiple rounds with a single pull of the trigger.
Prisco was on probation for a state firearm conviction when he allegedly sold the guns to the undercover officer. As a previously convicted felon, Prisco was prohibited by federal law from possessing a firearm.
Disrupting illegal firearms trafficking is a centerpiece of the Department of Justice’s cross-jurisdictional strike force aimed at reducing gun violence. As part of the Chicago firearms trafficking strike force, the U.S. Attorney’s Office collaborates with ATF and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.
Holding illegal firearm possessors accountable through federal prosecution is also a focus of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy. The U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district.
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 charge against Prisco is punishable by up to 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.
Prisco indictmentPhysician Assistant at Chicago Medical Practice Charged with Fraudulently Writing Opioid PrescriptionsRead the Press Release
CHICAGO — A physician assistant who formerly worked at a Chicago medical practice has been charged in federal court with fraudulently writing opioid prescriptions.
HARRY PRZEKOP allegedly used a deceased doctor’s name and prescription forms to write prescriptions for himself and a relative. An indictment returned in U.S. District Court in Chicago states that Przekop fraudulently obtained prescriptions of hydrocodone and codeine in 2021 and 2022 in Batavia, Ill., and North Aurora, Ill. Przekop was not a licensed physician and could not lawfully prescribe medications without the direction and approval of licensed doctors.
The indictment charges Przekop, 69, of Batavia, Ill., with five counts of fraudulently obtaining controlled substances. Each count is punishable by up to four years in federal prison. Przekop pleaded not guilty during his arraignment Wednesday in federal court. U.S. District Judge Andrea R. Wood scheduled a status hearing for Sept. 22, 2023.
The indictment 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. The government is represented by Special Assistant U.S. Attorney Benjamin J. Christenson.
Przekop indictmentTwelve Defendants Charged in Federal Drug Trafficking Probe Targeting Fentanyl-Laced Heroin and Cocaine Sales in ChicagoRead the Press Release
CHICAGO — A federal drug trafficking investigation has resulted in charges against a dozen individuals for allegedly trafficking fentanyl-laced heroin, cocaine, or other drugs on the South Side of Chicago.
The multi-year investigation, led by the FBI Chicago Field Office, utilized numerous controlled narcotics purchases, covert surveillance operations, and wiretapped communications to shut down two separate drug trafficking operations. Some of the defendants allegedly supplied or sought to supply drugs to customers in other states, including Wisconsin, Minnesota, and Ohio. One of the defendants allegedly possessed a loaded semiautomatic handgun while engaged in his drug trafficking activities.
During the investigation, law enforcement seized nearly $400,000 in suspected illicit cash proceeds, distribution quantities of cocaine, heroin, and marijuana, Bentley and Mercedes-Benz automobiles, and a custom-built motorcycle.
Most of the defendants were arrested Friday or early this week and have begun making initial appearances in U.S. District Court in Chicago. Law enforcement also recently executed court-authorized searches of multiple locations in Chicago.
The charges and arrests were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Kenneth A. Polite, Jr., Assistant Attorney General for the Justice Department’s Criminal Division, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Fred Waller, Interim Superintendent of the Chicago Police Department. Valuable assistance was provided by the Cook County State's Attorney's Office, Rock County (Wisc.) Sheriff's Office, and the Indiana State Police. The government is represented by Assistant U.S. Attorneys Saurish Appleby-Bhattacharjee and Thomas P. Peabody of the Northern District of Illinois, and Trial Attorney Gerald A.A. Collins of the Justice Department’s Organized Crime and Gang Section.
The case is 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.
Criminal complaints unsealed in federal court in Chicago charge two separate drug trafficking organizations, as well as an individual who allegedly distributed cocaine.
U.S. v. Johnson, et al, 23 CR 412
Charged in this federal drug conspiracy are RONALD JOHNSON, 57, of Darien, Ill., SULSTINE BROWN ROBINSON, 69, of Chicago, CHARLES LAWRENCE, 48, of Chicago, and DARRELL JONES, 58, of Chicago. Lawrence is also charged with possessing a firearm in furtherance of drug trafficking activities.
TROY BONAPARTE, 58, of Chicago, is charged with possessing cocaine and marijuana with the intent to distribute.
The charges allege that Johnson is a large-scale supplier of multiple narcotics, including cocaine and marijuana. Law enforcement observed Johnson making several cocaine sales in the summer and fall of 2022, the complaint states. The conspirators allegedly utilized an apartment in Chicago’s Oakland neighborhood as a “stash house” to store narcotics and cash. During a meeting outside the stash house in December 2022, Johnson allegedly provided a woman with approximately $300,500 in suspected drug proceeds. The cash was stuffed into a duffel bag that law enforcement later seized from the woman, the complaint states.
In January 2023, law enforcement in Rock County, Wisc., stopped a vehicle Robinson was driving and discovered that she had transported approximately seven kilograms of suspected cocaine from Chicago. Law enforcement seized the drugs, which were packaged in six individual bricks and wrapped in green cellophane, the complaint states.
U.S. v. Donley, et al, 23 CR 413
Charged in this federal drug conspiracy are DEREK DONLEY, 29, KENDALL BANKS, 31, NIGER GRAY, 25, JAMARI MC NEAL, 29, and APRIL THOMAS, 60, all of Chicago.
BYRON MURPHY, 39, of Chicago, is charged with distributing fentanyl-laced heroin.
According to the charges, the conspirators distributed and intended to distribute fentanyl-laced heroin, cocaine, and marijuana on the South Side of Chicago. Donley allegedly conducted several drug deals in the 7700 block of South Yates Boulevard in Chicago’s South Shore neighborhood. One of the alleged deals occurred in April 2022 and involved the distribution by Donley to Mc Neal of approximately 100 grams of substances that later tested positive for fentanyl, the complaint states.
U.S. v. Toney, 23 CR 424
Charged with distributing cocaine is CHANTELL TONEY, 37, of Chicago. Toney allegedly sold crack cocaine on the South Side of Chicago on several occasions in 2022 and 2023. One of the deals occurred last month in an apartment in Chicago’s South Shore neighborhood, the complaint states.
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The public is reminded that complaints contain only charges and are 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.
Johnson et al complaint Donley et al complaint Toney complaintTwelve Defendants Charged for Trafficking Fentanyl-Laced Heroin, Cocaine, and Other DrugsRead the Press Release
Twelve defendants were arrested on complaints in a multi-year, multi-state investigation for trafficking fentanyl-laced heroin, cocaine, and other drugs in Chicago, Illinois, and surrounding states.
Most of the defendants were arrested on July 28 and have begun making initial appearances in Chicago.
The FBI Chicago Field Office led the investigation, which utilized numerous controlled narcotics purchases, covert surveillance operations, and wiretapped communications to shut down two separate drug trafficking operations. Some of the defendants allegedly supplied or sought to supply drugs to customers in other states, including Wisconsin, Minnesota, and Ohio. One of the defendants allegedly possessed a loaded semiautomatic handgun while engaged in his drug trafficking activities. During the investigation, law enforcement seized nearly $400,000 in suspected illicit cash proceeds, cocaine, heroin, and marijuana, Bentley and Mercedes-Benz automobiles, and a custom-built motorcycle.
The criminal complaints charge two separate drug trafficking organizations, as well as an individual who allegedly distributed cocaine:
United States v. Johnson, et al.
The first complaint charges Ronald Johnson, 57, of Darien, Illinois; Sulstine Brown Robinson, 69, of Chicago; Charles Lawrence, 48, of Chicago; and Darrell Jones, 58, of Chicago, with federal drug conspiracy. Lawrence is also charged with possessing a firearm in furtherance of drug trafficking activities. Troy Bonaparte, 58, of Chicago, is charged with possessing cocaine and marijuana with the intent to distribute.
According to court documents, Johnson is allegedly a large-scale supplier of multiple narcotics, including cocaine and marijuana. His co-conspirators allegedly utilized an apartment in Chicago’s Oakland neighborhood as a “stash house” to store narcotics and cash. In December 2022, during a meeting outside the stash house, Johnson allegedly supplied a woman with a duffel bag that contained approximately $300,500 in suspected drug proceeds. Law enforcement later seized the cash and duffel bag from the woman.
In January 2023, law enforcement in Rock County, Wisconsin, stopped a vehicle Robinson was driving and discovered that she had transported approximately seven kilograms of cocaine from Chicago. Law enforcement seized the drugs, which were packaged in six individual bricks and wrapped in green cellophane.
United States v. Donley, et al.
The second complaint charges Derek Donley, 29; Kendall Banks, 31; Niger Gray, 25; Jamari Mc Neal, 29; and April Thomas, 60, all of Chicago, with federal drug conspiracy. The complaint also charges Byron Murphy, 39, also of Chicago, with distributing fentanyl-laced heroin.
According to court documents, the defendants distributed and intended to distribute fentanyl-laced heroin, cocaine, and marijuana in the South Side of Chicago. Donley allegedly conducted several drug deals in Chicago’s South Shore neighborhood. One of the alleged deals occurred in April 2022 and involved Donley’s distribution of approximately 100 grams of substances containing fentanyl to Mc Neal.
United States v. Toney
A third complaint charges Chantell Toney, 37, of Chicago, with distribution of cocaine on April 6. According to court documents, Toney allegedly sold crack cocaine on the South Side of Chicago on several occasions in 2022 and 2023. One of the deals allegedly occurred as recently as July in an apartment in Chicago’s South Shore neighborhood.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois, Special Agent in Charge Robert W. “Wes” Wheeler Jr. of the FBI Chicago Field Office, and Interim Superintendent Fred Waller of the Chicago Police Department made the announcement.
The FBI Chicago Field Office and Chicago Police Department are investigating the case, with valuable assistance provided by the Cook County State’s Attorney’s Office, Rock County (Wisconsin) Sheriff’s Office, and the Indiana State Police.
Trial Attorney Gerald A.A. Collins of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Saurish Appleby-Bhattacharjee and Thomas P. Peabody for the Northern District of Illinois are prosecuting the case.
The case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) 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.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Roscoe, Ill. Man Sentenced to Nearly 9 Years in Federal Prison on Firearm and Drug Trafficking ChargesRead the Press Release
ROCKFORD — A Roscoe, Ill. man has been sentenced to nearly nine years in federal prison for trafficking cocaine and fentanyl and possessing a firearm in furtherance of his drug trafficking activities.
XZAVIOR SMITH, 24, pleaded guilty earlier this year to knowingly and intentionally possessing the cocaine and fentanyl with the intent to distribute, and possessing a Glock 19 pistol in furtherance of a drug trafficking crime. U.S. District Judge Iain D. Johnston in Rockford sentenced Smith to eight years and ten months in federal prison.
On June 14, 2021, Freeport Police Department officers attempted to execute a traffic stop on Smith’s vehicle. Smith refused to pull over, then accelerated and ignored traffic signs while fleeing towards Durand, Ill. Shortly thereafter, the Stephenson County Sheriff’s Department attempted to stop Smith on Route 75. Smith did not stop and again accelerated, reaching speeds of up to 113 miles per hour. Eventually, Smith pulled into a private driveway and fled on foot, discarding bags containing cocaine and fentanyl and a loaded Glock pistol with an extended magazine loaded with 29 rounds of ammunition. Smith was located by pursuing members of law enforcement.
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 was provided by the Stephenson County Sheriff’s Office, the Freeport Police Department, the Roscoe Police Department, and the Beloit, Wisc., Police Department’s Crime Interdiction Team. The government was represented by Assistant U.S. Attorney Robert S. Ladd.
Member of Violent Chicago Street Gang Sentenced to 50 Years in Federal PrisonRead the Press Release
CHICAGO — A member of a violent Chicago street gang has been sentenced to 50 years in federal prison for participating in a criminal organization that murdered rivals and violently protected a drug-dealing operation on the West Side of Chicago.
As a member of the Wicked Town faction of the Traveling Vice Lords street gang, DAVID ARRINGTON murdered two people, shot and wounded two others, and served as the driver when fellow gang members murdered a man and attempted to murder another. Arrington, 33, of Chicago, pleaded guilty last year to a federal racketeering conspiracy charge. U.S. District Judge Thomas M. Durkin sentenced Arrington after a hearing Wednesday in federal court in Chicago.
Arrington was among 13 defendants convicted as part of a multi-year investigation into the gang’s criminal activities. The investigation resulted in the seizures of more than 45 firearms, approximately 1,000 rounds of ammunition, approximately 17 kilograms of cocaine, approximately seven kilograms of heroin, and approximately 100 grams of crack cocaine. The federal probe revealed that Wicked Town gang members engaged in numerous acts of violence, including Arrington’s two murders and at least 17 others, as well as numerous attempted murders, armed robberies, and assaults. Wicked Town members regularly promoted their violent enterprise on social media, where they taunted rivals and boasted about murders and other acts of violence.
The gang operated primarily in Chicago’s Austin neighborhood, where members maintained “trap houses” to store firearms and illegal narcotics, including cocaine and heroin.
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 Fred Waller, Interim Superintendent of the Chicago Police Department. Substantial assistance was provided by the FBI, IRS Criminal Investigation Division, Illinois State Police, U.S. Drug Enforcement Administration, Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, and the Chicago High Intensity Drug Trafficking Area program (HIDTA). The government is represented by Assistant U.S. Attorneys John D. Mitchell, Jimmy L. Arce, Meghan C. Morrissey, and Beth E. Palmer.
This case is part of an Organized Crime Drug Enforcement Task Force operation. OCDETF identifies, disrupts, and dismantles criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against alleged criminal networks.
Suburban Chicago Doctor and His Surgical Center to Pay More Than $750,000 to Settle False Claims Act SuitRead the Press Release
CHICAGO — A suburban Chicago doctor and his surgical center will pay more than $750,000 to the United States to settle a civil lawsuit accusing them of submitting fraudulent claims to Medicare and a federal employee health program.
The suit in U.S. District Court in Chicago alleged that JOHN A. GREAGER, II and CANCER THERAPY ASSOCIATES, S.C. violated the False Claims Act by performing multiple mole removal procedures on patients on a single date but submitting or causing the submission of claims to Medicare and the Federal Employees Health Benefits Program (FEHBP) that made it appear as though the procedures had been performed on multiple dates. Through this practice, known as “unbundling,” Greager and CTA caused Medicare and the FEHBP to pay more than they would have paid if the procedures had been billed as having occurred at the same visit.
As part of a settlement agreement approved this week by U.S. District Chief Judge Rebecca R. Pallmeyer, Greager and CTA agreed to pay $757,879.90 to the United States. The settlement resolves a civil lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The Act permits private citizens to bring lawsuits on behalf of the United States for false claims, and to share in any recovery. The United States intervened in the lawsuit prior to the settlement.
The settlement 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; Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago; and Conrad J. Quarles, Deputy Assistant Inspector General for Investigations of the U.S. Office of Personnel Management Office of the Inspector General. The government was represented by Assistant U.S. Attorney Virginia Hancock.
A separate criminal prosecution of Greager resulted in a 6-month prison sentence and a fine of $1 million.
U.S. v. Greager et al settlement agreementFirearms Trafficker from Chicago Suburb Sentenced to Four Years in Federal PrisonRead the Press Release
CHICAGO — A suburban Chicago man has been sentenced to four years in federal prison for assisting in the illegal sales of two firearms.
JEFFREY GREER, 57, of North Aurora, Ill., assisted a relative in selling a shotgun and a revolver to an individual in the fall of 2019. Unbeknownst to Greer, the buyer was cooperating with law enforcement. Greer helped negotiate the terms of the deal during a meeting in his relative’s home in North Aurora, Ill., and then transported the guns to the cooperating individual’s truck.
Greer pleaded guilty earlier this year to a federal charge of dealing firearms without a license. U.S. District Judge Sara L. Ellis imposed the sentence after a hearing July 13, 2023, 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 U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives and the Addison, Ill., Police Department provided valuable assistance. The government was represented by Assistant U.S. Attorney Patrick Mott.
Disrupting illegal firearms trafficking is a centerpiece of the Chicago Firearms Trafficking Strike Force, the Department of Justice’s cross-jurisdictional strike force aimed at reducing gun violence. As part of the Chicago Strike Force, the U.S. Attorney’s Office collaborates with FBI, ATF, and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.
Holding illegal firearm dealers accountable through federal prosecution is also a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, the U.S. Attorney’s Office has deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Suburban Chicago Physician Sentenced to Federal Prison for Prescribing Opioids Without a Medical ExamRead the Press Release
CHICAGO — A suburban Chicago physician has been sentenced to a federal prison term for prescribing opioids to patients without a medical examination and then billing Medicare for the purported treatment.
ELIZA DIACONESCU, 74, of Lake Forest, Ill., pleaded guilty earlier this year to a federal health care fraud charge. U.S. District Judge Steven C. Seeger on Wednesday sentenced Diaconescu to six months in federal prison and ordered her to pay $84,031 in restitution to Medicare.
Diaconescu admitted in a plea agreement that from 2016 to 2021, she pre-signed prescriptions for hydrocodone, oxycodone, and fentanyl for patients of her pain clinic in Gurnee, Ill., so that the prescriptions could be provided to patients when Diaconescu was not at the clinic. Diaconescu and others at the clinic created false paperwork indicating that Diaconescu had face-to-face exams with the patients, when, in fact, the patients had only come to pick up the pre-signed prescriptions and had not visited with Diaconescu. Diaconescu then knowingly submitted false claims seeking reimbursement from Medicare for the purported exams, knowing that such exams did not occur.
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, Sheila G. Lyons, Special Agent-in-Charge of the Chicago Division of the DEA, Mario Pinto, Special Agent-in-Charge 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.
The case was brought by the U.S. Attorney’s Office’s Opioid Task Force, which was formed in 2019 for the purpose of combatting the unlawful distributions of controlled substances.
“The defendant’s fraudulent conduct was a gross abuse of the trust that Medicare places on medical providers to accurately bill for the work they have done,” Assistant U.S. Attorney Jared Hasten argued in the government’s sentencing memorandum. “All of the money paid by Medicare should have gone towards providing medical services to beneficiaries.”
Iowa Man Sentenced to Nearly 11 Years in Federal Prison for Trafficking Heroin and Methamphetamine in Northwest IllinoisRead the Press Release
ROCKFORD — An Iowa man has been sentenced to nearly eleven years in federal prison for trafficking methamphetamine and heroin in northwest Illinois.
CORDERO DAVIS, 36, of Dubuque, Iowa, pleaded guilty earlier this year to knowingly and intentionally possessing nearly 900 grams of methamphetamine and more than 50 grams of heroin with the intent to distribute. U.S. District Judge Iain D. Johnston on Thursday sentenced Davis to 130 months in federal prison.
On June 28, 2022, an officer with the Jo Daviess County Sheriff’s Office stopped Davis’s vehicle. Davis failed to produce any identification and then provided a false name and date of birth to the officer. The officer confirmed Davis’s true identity and discovered that Davis’s driver’s license was suspended. The officer also discovered an arrest warrant pending against Davis from Cook County, Ill. The officer arrested Davis and discovered the controlled substances during a search of his vehicle.
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 U.S. Drug Enforcement Administration. The Jo Daviess County Sheriff’s Office assisted in the investigation. The government was represented by Assistant U.S. Attorney Jessica Maveus.
International Cyber Fraudster Sentenced to More Than 8 Years in Federal PrisonRead the Press Release
CHICAGO — A resident of the United Arab Emirates who orchestrated an $8 million cyber fraud scheme targeting several United States-based companies has been sentenced to more than eight years in a U.S. prison.
OLALEKAN JACOB PONLE, also known as “Mr. Woodbery,” and “Mark Kain,” 31, was living in the UAE in 2019 when he worked with co-schemers to engage in numerous business email compromise schemes. The co-schemers used phishing links to gain unauthorized access to email accounts and then created false instructions directing employees of the victim companies to wire money to bank accounts opened by money mules at Ponle’s direction. The fraudulent emails often claimed to be from the company or a known business contact and were nearly identical to prior legitimate emails sent over the company’s email account. After unwitting employees wired money, in some cases millions of dollars, to the bank accounts, Ponle instructed the money mules to convert the proceeds to Bitcoin and send them to him.
As a result of Ponle’s scheme, victim companies suffered more than $8.03 million in actual losses and more than $51.3 million in intended losses. One of the victim companies was based in Chicago, while others were located in Iowa, Kansas, Michigan, New York, California, and elsewhere.
Ponle is a Nigerian national who was arrested in June 2020 by law enforcement in the UAE. He was subsequently expelled from the UAE into the custody of the FBI and arrived in Chicago the following month. He pleaded guilty earlier this year to a federal wire fraud charge.
U.S. District Judge Robert W. Gettleman on July 11, 2023, sentenced Ponle to eight years and four months in federal prison. Ponle was ordered to pay more than $8.03 million in restitution to the victim companies and forfeit numerous luxury items purchased with proceeds traceable to the fraud scheme, including a Rolls Royce Cullinan, Lamborghini Urus, Mercedes-Benz G-Class AMG G55, and Rolex and Patek Philippe watches. Ponle previously forfeited to the government 151 bitcoin, which were also derived from proceeds traceable to the fraud scheme.
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 was provided by the Justice Department’s Office of International Affairs and the Dubai, UAE Police Department. Assistant U.S. Attorney Melody Wells of the Northern District of Illinois represented the government.
Chicago Man Sentenced to 30 Years in Federal Prison for Enticing Girls in the Philippines to Produce Sexually Explicit ImagesRead the Press Release
CHICAGO — A Chicago man has been sentenced to 30 years in federal prison for enticing at least nine girls in the Philippines to produce sexually explicit photos and videos of themselves and send them to him.
KARL QUILTER, 58, pleaded guilty last year to a federal charge of sexual exploitation of children. U.S. District Judge Virginia M. Kendall imposed the 30-year sentence after a hearing July 7, 2023, in federal court in Chicago.
Quilter admitted in a plea agreement that he communicated with the girls via Facebook, Viber, and Skype from 2017 to 2020. Quilter referred to the minor victims as his “girlfriends” to manipulate and pressure them into sending specific types of photos and videos that he demanded. Quilter also preyed on the victims’ financial difficulties, using money transfers to the victims’ families to entice the girls to take the sexually explicit images. In a message to one 16-year-old victim in 2020, Quilter promised to send money to her family for medicine and food if she complied with his demands. “If u do what I tell you… I will make sure u can buy food for 2 weeks and your medication,” Quilter said in the message. “Think of your little sister that she can e[a]t for 2 weeks everyday 3 meals a day and u get well.”
Quilter traveled to the Philippines in 2017 and 2018 and explicitly referenced his plans to have sex with several of the minors when he next visited the country in December 2020. Law enforcement arrested Quilter in Chicago in November 2020.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago. The Chicago Police Department provided valuable assistance.
“Victim by victim, and message by message, defendant used social media and the internet to target and groom young Filipino girls,” Assistant U.S. Attorney Ashley A. Chung argued in the government’s sentencing memorandum. “This was not a one-time aberration, but rather a years-long pattern of predatory abuse and exploitation of minors.”
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.
Chicago Man Sentenced to 15 Years in Federal Prison; Investigation Shut Down Missouri-to-Chicago Gun PipelineRead the Press Release
CHICAGO — A Chicago man has been sentenced to 15 years in federal prison as part of an investigation that shut down a Missouri-to-Chicago firearms pipeline.
DERRICK CLAIBORNE, 47, trafficked fentanyl-laced heroin and illegally possessed three handguns in 2018. Law enforcement searched Claiborne’s residence on Michigan Avenue in Chicago’s South Loop neighborhood and discovered the three guns and the drugs. U.S. District Judge Robert M. Dow, Jr. imposed the sentence after a hearing July 7, 2023, in federal court in Chicago.
Claiborne was one of four defendants convicted as part of an investigation led by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The probe revealed that Claiborne purchased three additional firearms from JAMES SAUNDERS after the guns had been transported from Missouri to Saunders’s residence in Chicago’s Woodlawn neighborhood. In addition to the three guns he sold to Claiborne, Saunders also sold multiple firearms to confidential informants who were cooperating with law enforcement.
Saunders pleaded guilty to federal firearm charges and was sentenced in 2019 to five years in federal prison.
Two Missouri residents who transported firearms to Saunders in Chicago were also convicted and sentenced as part of the investigation. JUMONTA MOORE, 25, of Sikeston, Mo., and MARCUS INGRAM, 30, of Charleston, Mo., were each sentenced in 2019 to three years in federal prison.
Claiborne’s sentence and the results of the investigation were 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 Fred Waller, Interim Superintendent of the Chicago Police Department. Substantial assistance was provided by the U.S. Drug Enforcement Administration and the IRS Criminal Investigation Division. The government was represented by Assistant U.S. Attorney Jared C. Jodrey and Special Assistant U.S. Attorney Niranjan Emani.
Disrupting illegal firearms trafficking is a centerpiece of the Chicago Firearms Trafficking Strike Force, the Department of Justice’s cross-jurisdictional strike force aimed at reducing gun violence. As part of the Chicago Strike Force, the U.S. Attorney’s Office collaborates with ATF and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.
Holding illegal firearm possessors accountable through federal prosecution is also a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, the U.S. Attorney’s Office has deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
“Firearms traffickers enable unlawful possession of guns and the violence that may follow,” said Acting U.S. Attorney Pasqual. “We will continue to work with our law enforcement partners to investigate and hold accountable individuals or groups who traffic firearms into Chicago.”
“This case is an excellent example of how the Firearms Trafficking Strike Force, working together with the Chicago Police Department and the U.S. Attorney’s Office, stops the flow of illegal guns into our neighborhoods,” said ATF SAC Amon. “Prosecuting those responsible for trafficking these firearms makes our community safer.”
Federal Jury Convicts Grundy County, Ill. Businessman of Investment FraudRead the Press Release
CHICAGO — A federal jury in Chicago has convicted a Grundy County, Ill. businessman of scheming to fraudulently raise at least $130 million from more than 500 investors.
KENNETH D. COURTRIGHT, 53, of Minooka, Ill., was convicted Friday on all seven wire fraud counts against him. Each count is punishable by up to 20 years in federal prison. U.S. District Judge Matthew F. Kennelly set sentencing for Oct. 4, 2023, at 1:15 p.m.
Evidence at the two-week trial in U.S. District Court in Chicago revealed that Courtright owned and operated Today’s Growth Consultant, Inc., a Minooka, Ill.-based company that did business under the name The Income Store. The company purported to build or acquire websites for investors. From 2015 to 2019, Courtright schemed to defraud investors by falsely promising to provide them with a guaranteed income stream of either 50% of the advertising revenue generated by the websites or the monthly equivalent of at least 15% of the investor’s upfront fee. Courtright backed these guarantees through fraudulent claims that his company was financially healthy. In reality, the payment of returns to investors was primarily funded through money raised from new investors.
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 government is represented by Assistant U.S. Attorneys Jason Yonan and Adam Rosenbloom.
The U.S. Securities and Exchange Commission provided valuable assistance.
Chicago Street Gang Leaders Convicted on Federal Racketeering ChargesRead the Press Release
CHICAGO — A federal jury has convicted three leaders of a Chicago street gang on federal racketeering charges for participating in a criminal organization that murdered rivals and violently protected its perceived territory on the city’s South Side.
Convicted of racketeering conspiracy were ROMEO BLACKMAN, 27, TERRANCE SMITH, 27, and JOLICIOUS TURMAN, 31, all of Chicago. Blackman and Smith were also convicted of multiple counts of violence in aid of racketeering. The jury returned its verdicts Wednesday after a seven-week trial in U.S. District Court in Chicago. Blackman and Smith each face mandatory sentences of life in federal prison, while Turman faces a maximum sentence of 20 years. U.S. District Judge John Robert Blakey has not yet set sentencing dates.
A fourth defendant, NATHANIEL MCELROY, of Chicago, pleaded guilty to a racketeering conspiracy charge prior to trial. McElroy is awaiting sentencing.
The defendants were indicted in 2018 after a joint federal and state investigation of a Chicago street gang faction known as the Goonie Boss/Goonie Gang. The defendants and other Goonie members stole firearms to arm themselves, violently prevented witnesses from cooperating with law enforcement, and publicly boasted about gang activities on social media. The jury found that members of the gang were liable for six murders while terrorizing the Englewood neighborhood on Chicago’s South Side, specifically:
- Blackman and Smith were liable for the murder of Stanley Bobo, 18, on Oct. 23, 2014, in the 1400 block of West 72nd Street.
- Blackman and Smith were liable for the murder of Krystal Jackson, 25, on Nov. 19, 2014, in the 6800 block of South Loomis Boulevard.
- Blackman was liable for the murder of Andre Donner, 26, on Dec. 13, 2015, in the 7200 block of South May Street.
- Blackman was liable for the murder of Davon Horace, 19, on Jan. 25, 2016, in the 7200 block of South May Street.
- Blackman was liable for the murder of Gerald Sias, 38, on May 26, 2016, inside a barber shop in the 1100 block of West 63rd Street.
- Turman was liable for the murder of Kenneth Whittaker, 34, on July 1, 2016, near an elementary school in the 7400 block of South Morgan Street.
The jury also found that Smith was liable for two attempted murders.
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 Fred Waller, Interim Superintendent of the Chicago Police Department. The government was represented by Assistant U.S. Attorneys Albert Berry III, Maureen McCurry, and Paige Nutini.
“Combating violent street gangs is a top priority in our office,” said Acting U.S. Attorney Pasqual. “We will use all lawful tools and resources at our disposal to dismantle those street gangs and disrupt the cycle of violence in Chicago and the surrounding areas.”
"Every Chicagoan deserves a safe place to live, and these convictions make it clear that serious crimes lead to serious consequences,” said FBI SAC Wheeler.
The investigation of the Goonie gang spanned several years and resulted in other charges against Blackman, McElroy, and numerous other alleged Goonie members or associates for various offenses, including:
- Blackman was charged along with RASHAD ANCHANDO, of Chicago, and KEITH GULLENS, of Streator, Ill., with stealing firearms from a licensed dealer in a smash-and-grab burglary. Anchando pleaded guilty and was sentenced to five years in federal prison, while Gullens pleaded guilty and was sentenced to four and a half years. Blackman pleaded not guilty and is awaiting trial.
- McElroy and four others were indicted on federal firearms violations for scheming to “straw purchase” handguns in Michigan and re-sell them in Chicago. All five defendants pleaded guilty. One defendant is awaiting sentence, while the four others were sentenced to federal prison terms ranging from 16 months to seven years.
- CHRISTIAN SIVELS, of Chicago, is charged in state court with first-degree murder in the killing of David Easley on May 21, 2016. Easley, 26, was shot and killed while walking in the 7000 block of South Carpenter Street in Chicago. Sivels pleaded not guilty and is awaiting trial in Cook County Criminal Court.
- TREVANTE REED, of Chicago, is charged in state court with first-degree murder in the killing of Gerald Sias on May 26, 2016. Sias was shot and killed while waiting inside a barbershop in the 1100 block of West 63rd Street in Chicago. Reed pleaded not guilty and is awaiting trial in Cook County Criminal Court.
- JAVION BUSH, of Chicago, pleaded guilty to being an accessory to the carjacking of an off-duty police officer on Oct. 18, 2018. Bush was sentenced to 15 months in prison. Upon his release from prison, Bush was charged with, and subsequently pleaded guilty to obstruction of justice by retaliating against a witness. Bush is currently awaiting sentencing in the obstruction case.
- Convicted felon JAVONTE N. STOKES, of Chicago, pleaded guilty in federal court to a charge of illegal firearm possession. Stokes was sentenced to six months in prison.
Chicago Man Convicted of $2.7 Million COVID-Relief FraudRead the Press Release
CHICAGO — A federal jury has convicted a Chicago man of fraudulently obtaining more than $2.7 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 an attempt to support his applications, Amuwo provided false business registration forms and bogus personal identifying information of the purported owners.
Amuwo caused the SBA to disburse at least $2.7 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.
After a trial in U.S. District Court in Chicago, Amuwo was convicted June 29, 2023, of all twelve wire fraud counts against him. The jury also found that approximately $120,000 seized from accounts held by Amuwo should be forfeited to the government.
Each count of wire fraud is punishable by up to 20 years in federal prison. U.S. District Judge Edmond E. Chang set sentencing for Oct. 10, 2023.
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. Substantial assistance was provided by the SBA’s Office of Inspector General. The government is represented by Assistant U.S. Attorneys Heidi Manschreck and Matthew Moyer.
13 Defendants Charged in Federal Drug Trafficking Probe Targeting Fentanyl-Laced Heroin and Cocaine Sales in ChicagoRead the Press Release
CHICAGO — A federal drug trafficking investigation has resulted in charges against 13 individuals for allegedly trafficking fentanyl-laced heroin and cocaine on the West Side of Chicago.
The multi-year investigation, led by Homeland Security Investigations, the Chicago Police Department, and the IRS Criminal Investigation Division, utilized covert surveillance operations, undercover narcotics purchases, and wiretapped communications to shut down an open-air drug market in Chicago’s Humboldt Park neighborhood. Many of the defendants, including the group’s suspected leader, are allegedly members of the Traveling Vice Lords street gang. In addition to federal drug charges, three of the defendants are charged with possessing firearms in furtherance of their drug trafficking activities. One of the defendants was recently arrested while illegally possessing a loaded handgun on the Chicago Transit Authority’s Green Line train.
Law enforcement on Wednesday executed court-authorized searches of multiple locations in Chicago and the suburbs. Law enforcement seized approximately ten firearms, two 50-round drum ammunition magazines, several extended ammunition magazines, more than a kilogram of cocaine, more than 250 grams of heroin containing fentanyl, and approximately nine vehicles that allegedly were used in furtherance of narcotics trafficking.
Charged with federal drug conspiracy are TERRANCE SANDERS, 40, of Aurora, Ill., SHAVELLE SIMS, 32, of Glendale Heights, Ill., TYRON PAULK, 36, of Bellwood, Ill., SAMUEL LOPEZ, 33, of Chicago, DEMECCO TARTT, 30, of Chicago, TARANCE BANKS, 30, of Calumet City, Ill., DEANDRE MADDOX, 34, of Chicago, DELAWRENCE ISON, 38, of Chicago, LAVELL GRIFFIN, 33, of Chicago, BRIAN WILLIAMS, 20, of Chicago, and RAHEEM SMITH, 30, of Bolingbrook, Ill. Sanders, Paulk, and Smith are also each charged with possessing a firearm in furtherance of the drug trafficking conspiracy.
Charged with possession of a controlled substance with intent to deliver are PARTGANAN BURCH, 36, of Chicago, and DEMORRIS HILL, 41, of South Holland, Ill.
According to a criminal complaint unsealed Wednesday in federal court, Sanders led a drug trafficking organization that operated the open-air market in the 3400 block of West Chicago Avenue in Chicago. Sanders and others utilized a “stash house” in the 1600 block of North Karlov Avenue in Chicago to store narcotics and prepare them for delivery to the open-air market, where they were then sold to customers, the complaint states. Sims supervised the collection of narcotics proceeds and met with Sanders to re-supply the drug spot as needed, the complaint states.
Most of the 13 federal defendants were arrested Wednesday and have begun making initial appearances in U.S. District Court in Chicago. In addition to the federal charges, 19 other individuals were charged in state court as a result of this investigation.
The federal charges were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Sean Fitzgerald, Special Agent-in-Charge of HSI in Chicago; Fred Waller, Interim Superintendent of CPD; and Justin Campbell, Special Agent-in-Charge of IRS-CI in Chicago. Valuable assistance was provided by the Chicago High Intensity Drug Trafficking Area program (HIDTA). Assistant U.S. Attorneys Patrick Mott and Chester Choi represent the government.
The case was part of an Organized Crime Drug Enforcement Task Force operation. OCDETF identifies, disrupts, and dismantles the highest-level 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 public is reminded that a complaint contains only charges and 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.
Sanders et al complaintSuburban Chicago Attorney Sentenced to More Than Three Years in Federal Prison for Bankruptcy FraudRead the Press Release
CHICAGO — A federal judge today sentenced a suburban Chicago attorney 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.
JAN R. KOWALSKI was a licensed attorney when she engaged in the fraud scheme in 2018 with her brother, co-defendant ROBERT M. KOWALSKI. When Robert Kowalski filed for bankruptcy, he possessed hundreds of thousands of dollars in cashier’s checks payable to himself but which were the property of his bankruptcy estate. Jan Kowalski helped her brother conceal the cashier’s checks, as well as money orders and other checks, by depositing them into her attorney trust account (IOLTA). She then withdrew a portion of the funds in cash or for use in, among other things, real estate transactions for her brother’s benefit.
When the bankruptcy trustee discovered the IOLTA account activity, Jan Kowalski attempted to conceal the scheme by fabricating documents and making materially false statements to the U.S. Bankruptcy Court. The funds concealed through the fraud scheme have yet to be recovered.
Jan Kowalski, 59, of LaGrange, Ill., pleaded guilty last year to a federal charge of concealing assets from a bankruptcy trustee. In addition to the 37-month prison term, U.S. District Judge Virginia M. Kendall ordered Jan Kowalski to pay $357,492 in restitution.
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 was represented by Assistant U.S. Attorneys Michelle Petersen, Brian Netols, and Kristin Pinkston, and Special Assistant U.S. Attorney Jeffrey Snell.
A jury earlier this year convicted Robert Kowalski for his role in the bankruptcy fraud scheme with his sister, as well as additional embezzlement and tax fraud offenses. Evidence at Robert Kowalski’s trial revealed that Robert Kowalski was a close associate of John Gembara, the former President of Washington Federal Bank for Savings, and that Robert Kowalski played a key role in an embezzlement scheme at the bank. Washington Federal was based in Chicago’s Bridgeport neighborhood until it was closed in December 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.
Robert Kowalski, of Chicago, is awaiting sentencing. Numerous other defendants, including several high-ranking former bank employees, were charged as part of the federal criminal investigation into the failure of Washington Federal.
Man Sentenced to Nearly Six Years in Federal Prison for Illegally Possessing Guns and Drugs in Chicago SuburbRead the Press Release
CHICAGO — A man has been sentenced to nearly six years in federal prison for illegally possessing two loaded handguns and fentanyl-laced heroin in a Chicago suburb.
JARIEN SMITH illegally possessed the guns and drugs on Jan. 2, 2019, in a home in Westchester, Ill. Smith resided in Wheaton, Ill., but used the Westchester residence as a “stash house” to store illegal narcotics that he supplied to other drug traffickers. Law enforcement searched the Westchester residence and discovered Smith in possession of the two guns, the fentanyl-laced heroin, and various items used to cut, weigh, and package narcotics. One of the guns was fully automatic and equipped with a 50-round, high-capacity drum magazine, while the other gun was equipped with laser sight and flashlight attachments to improve accuracy when firing at a target.
A law enforcement search of Smith’s primary residence in Wheaton, Ill., turned up nine cellphones, body armor, and a Rolex watch valued at $85,000.
Smith had previously been convicted of a felony in state court and was not legally allowed to possess a firearm.
Smith, 30, pleaded guilty earlier this year to federal firearm and drug charges. U.S. District Judge Robert W. Gettleman imposed a 70-month prison sentence Thursday 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. Substantial assistance was provided by the Chicago Police Department, U.S. Secret Service, Illinois State Police, IRS Criminal Investigation, and the Cook County State’s Attorney’s Office. Assistant U.S. Attorneys Misty N. Wright and Christine M. O’Neill represented the government.
The investigation was part of an Organized Crime Drug Enforcement Task Forces 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 Chicago High Intensity Drug Trafficking Area Task Force also participated in the investigation. HIDTA enhances and coordinates America's drug-control efforts among local, state, and federal law enforcement agencies in order to eliminate or reduce drug trafficking and its harmful consequences.
Holding illegal firearm possessors and drug traffickers accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. The U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues in the Northern District of Illinois, particularly firearm and drug offenses.
Woman Pleads Guilty to Murder ConspiracyRead the Press Release
An Illinois woman pleaded guilty today for her role in a conspiracy to murder her mother while they vacationed in Bali, Indonesia, in August 2014.
According to court documents, Heather Mack, 27, originally from Chicago, 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 her mother’s hotel room and, while Mack was present, brutally beat and killed Mack’s mother. 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 told hotel employees that she was going to go call her mother. Mack and Schaefer then fled the hotel and abandoned the suitcase containing the victim’s body in the taxicab. Mack and Schaefer were arrested by Indonesian police at another hotel in Bali the day after the murder.
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 to one count of conspiracy to kill a U.S. national. She is scheduled to be sentenced on Dec. 18 and faces a maximum penalty of 28 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois, and Special Agent in Charge Robert W. “Wes” Wheeler Jr. of the FBI Chicago Field Office made the announcement.
Senior Trial Attorney Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Ann Marie Ursini for the Northern District of Illinois are prosecuting the case.
Valuable assistance was provided by the Justice Department’s Office of International Affairs, as well as the FBI Legal Attaché Office in Jakarta, Indonesia.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Suburban Chicago Doctor Sentenced to Federal Prison and Fined $1 Million for Health Care FraudRead the Press Release
CHICAGO — A suburban Chicago doctor has been sentenced to a federal prison term and fined $1 million for submitting fraudulent claims to Medicare and a private insurer.
JOHN A. GREAGER II, 75, of Hinsdale, Ill., pleaded guilty earlier this year to a health care fraud charge. U.S. District Judge Robert W. Gettleman imposed the fine and a 6-month prison sentence after a hearing Tuesday in federal court in Chicago.
Greager owned and operated Cancer Therapy Associates S.C., in Lombard, Ill. From 2015 to 2021, Greager caused fraudulent claims to be submitted to Medicare and Blue Cross Blue Shield of Illinois falsely stating that mole-removal procedures had been provided to patients on multiple dates. In actuality, Greager knew that those services were not provided as billed. Greager had removed multiple moles on a single date, but the procedures were billed as though they were removed on separate dates to maximize reimbursement from Medicare and BCBS. Greager admitted that he knew insurers paid more for moles removed on separate dates than multiple moles on a single date. Medicare and Blue Cross Blue Shield ultimately paid Greager approximately $1.7 million as a result of his scheme.
To conceal his fraudulent conduct, Greager stored moles onsite at his office and delayed sending them for pathology testing. As a result, the pathology reports made it appear as though Greager had removed the moles on separate dates. Greager’s conduct delayed critical testing on moles that he removed for serious illnesses, including cancer. Greager also created fake patient charts, including pre-operative and post-operative notes that indicated he performed mole-removal procedures on dates when he was not in Illinois. Medicare conducted an audit of Greager’s patient charts, prompting Greager to instruct his staff to create false records to hide the fact that he committed health care fraud.
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; Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago; and Amy K. Parker, Special Agent-in-Charge of the U.S. Office of Personnel Management Office of the Inspector General. The government was represented by Assistant U.S. Attorneys Jared Hasten and Virginia Hancock.
Four Men Indicted in Connection with Violent Kidnapping and Ransom PlotRead the Press Release
CHICAGO — Four men have been indicted for allegedly abducting a suspected drug dealer in Chicago and holding him for ransom.
The four alleged kidnappers conspired in May 2018 to kidnap the suspected dealer, rob him of drugs and cash, and hold him for ransom, according to an indictment unsealed today in U.S. District Court in Chicago. The kidnappers, brandishing firearms, entered the suspected drug dealer’s residence and used restraints to bind him and others inside the home, the indictment states. One of the kidnappers allegedly burned a victim’s arm with a hot object. The kidnappers then searched the residence for drugs and cash and forced the suspected dealer to place calls to obtain ransom money, the indictment states.
Charged in the indictment with conspiracy, robbery, kidnapping, and firearm offenses are CALVERT WILLIAMS, 34, of Chicago, DERRIUS BURNS, 30, of Bellwood, Ill., AHZAMI XHAMILTON, 27, of Chicago, and CHRISTOPHER GREGORY, 35, of Chicago. The charges carry a maximum sentence of life in federal prison.
All four defendants are currently detained in law enforcement custody. Burns, Gregory, and Xhamilton pleaded not guilty at their arraignments this week in federal court. Williams will be arraigned at a later date.
The 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 Fred Waller, Interim Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorneys John D. Mitchell, Jimmy L. Arce, and Beth E. Palmer.
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 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. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory United States Sentencing Guidelines.
Federal Jury Convicts Businessman of Participating in Bribery Scheme with Former Illinois State LawmakerRead the Press Release
CHICAGO — A federal jury in Chicago today convicted the manager of a sweepstakes gaming company of participating in a bribery scheme with an Illinois state lawmaker.
JAMES T. WEISS, 44, of River Grove, Ill., was convicted on all counts against him: three counts of honest services wire fraud, two counts of bribery, one count of honest services mail fraud, and one count of making false statements to the FBI. The jury returned its verdicts after a trial in U.S. District Court in Chicago. U.S. District Judge Steven C. Seeger set sentencing for Oct. 11, 2023.
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 Justin Campbell, Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division. The government was represented by Assistant U.S. Attorneys Christine M. O’Neill and Sean Franzblau.
Evidence at trial revealed that in 2018 and 2019 Weiss paid thousands of dollars in bribes to then-Illinois State Rep. Luis Arroyo. The bribes were paid from Weiss’s gaming company, Collage LLC, in the form of checks made payable to Spartacus 3 LLC, Arroyo’s private lobbying firm in Chicago. In exchange for those bribes, Arroyo promoted legislation in the Illinois General Assembly related to the sweepstakes industry and advised other state lawmakers to support the legislation.
In August 2019, Arroyo offered to have payments made to an Illinois state senator in return for the senator’s support of sweepstakes-related legislation. On Aug. 22, 2019, Arroyo met with the senator at a restaurant in Skokie, Ill., and provided him with a $2,500 check from Collage as an initial bribe payment, with the expectation that the senator would receive similar payments for 12 months. Arroyo told the senator, “This is the jackpot,” and then wrote the name of the senator’s nominee on the company’s check. The nominee’s name was used for the purpose of concealing the illicit payment.
Arroyo, who represented the 3rd District in the Illinois House of Representatives from 2006 to 2019, pleaded guilty to his role in the bribery scheme and was sentenced in 2022 to nearly five years in federal prison.
Man Charged with Possessing Firearms While Trafficking Fentanyl in Chicago SuburbsRead the Press Release
CHICAGO — A federal grand jury has indicted a man on drug and firearm charges for allegedly possessing multiple guns while trafficking fentanyl and other narcotics in the Chicago suburbs.
An indictment returned in U.S. District Court in Chicago charges OMARI ANDREWS, JR., with possessing an AR-15 rifle and three handguns in furtherance of drug trafficking crimes. Andrews allegedly distributed fentanyl and heroin in Westmont, Ill., Villa Park, Ill., Des Plaines, Ill., and Hillside, Ill., the indictment states. In March, law enforcement searched his residence in Mt. Prospect, Ill., and discovered distribution quantities of fentanyl, heroin, cocaine, and marijuana, as well as the firearms, all of which were loaded.
Andrews, 23, is detained in federal custody without bond. His arraignment is scheduled for June 20, 2023, at 1:00 p.m., before U.S. District Judge Edmond E. Chang.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; and Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago. The Skokie, Ill., Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorney Alejandro G. Ortega.
Holding firearm and drug offenders accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district.
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.
andrews_jr._indictment.pdfRockford Man Sentenced to 15 Years in Federal Prison for the Sexual Exploitation of ChildrenRead the Press Release
ROCKFORD — A Rockford man has been sentenced to 15 years in federal prison for sexually exploiting children.
JAMES UMBAUGH, 57, admitted in a plea agreement that in 2018 he knowingly possessed, on his home computer, images of prepubescent minors, minors under the age of twelve, and toddlers engaged in sex acts. Umbaugh possessed more than 7,900 images and videos of child pornography, including children engaged in sexually explicit conduct that Umbaugh obtained online. Umbaugh further admitted that from 2016 to 2018 he acted as a moderator and administrator for chat rooms and websites that promoted the distribution of child abuse and child exploitation materials.
In addition to the prison term, U.S. District Court Judge Philip G. Reinhard on Friday ordered Umbaugh to pay $18,000 in restitution to his victims.
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 government was represented by Assistant U.S. Attorney Jessica S. Maveus. Assistant U.S. Attorney Michael D. Love and Attorney James Burke of the Department of Justice’s Child Exploitation and Obscenity Section assisted with the investigation and prosecution.
Whiteside County Man Sentenced to Federal Prison for Embezzling from Labor OrganizationRead the Press Release
ROCKFORD — A Whiteside County man has been sentenced to a federal prison term for embezzling from a labor organization.
BRENT TOPPERT, 43, of Morrison, Ill., was sentenced Tuesday by U.S. District Judge Iain D. Johnston to five months in federal prison, to be followed by six months of home detention. Toppert was also fined $5,000.
Toppert was the elected Financial Secretary-Treasurer of Local 238 of the Security, Police, and Fire Professionals of America, a labor organization that represents members who provide security at a nuclear plant in Cordova, Ill. Toppert pleaded guilty in federal court earlier this year and admitted that from 2013 to 2018 he made several unauthorized withdrawals from SPFPA’s bank account, totaling $55,140.98, which he converted to his personal use.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. The government was represented by Assistant U.S. Attorneys Michael D. Love and Vincenza Tomlinson.
“While the vast majority of union officials do their work diligently and without incident, unfortunately criminal violations do occur,” said District Director Murray. “When they do, it is the union and its members that are the victims. Brent Toppert embezzled over $55,000 from SPFPA Local 238 that should have been used for its members’ benefit. OLMS is committed to holding accountable anyone who unlawfully exploits their position for financial gain at the expense of their fellow union members.”
Airline Employee Indicted in Alleged Scheme to Fraudulently Create and Sell Travel VouchersRead the Press Release
CHICAGO — A customer service representative for Southwest Airlines fraudulently created and sold travel vouchers worth more than $1.87 million, according to an indictment returned in federal court in Chicago.
While working for Southwest at Midway Airport in Chicago, DAJUAN MARTIN used fictitious customer names to fraudulently generate the vouchers without the airline’s knowledge or approval, the indictment states. Martin then sold the vouchers at below market value to co-defendant NED BROOKS and others in exchange for cash, the indictment states. The vouchers, known as “Southwest Luv Vouchers,” were supposed to be used to compensate customers who had unfavorable travel experiences on the airline.
The indictment was returned Monday. It charges Martin, 36, of Bolingbrook, Ill., with 12 counts of wire fraud, and Brooks, 46, of Chicago, with four counts of wire fraud. Arraignments in federal court in Chicago have not yet been scheduled.
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 Elly M. Peirson.
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. Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Martin et al indictmentChicago Man Sentenced to 4 Years in Federal Prison for Two Retail Store Robberies in Illinois and IndianaRead the Press Release
ROCKFORD — A Chicago man has been sentenced to four years in federal prison in connection with a series of retail store robberies in Illinois and Indiana.
In 2016, YASHMINE ODOM and his co-conspirators carried out two violent robberies, using force and pepper spray to coerce store employees while stealing laptops, iPads, smart watches, and cell phones. During the robberies, Odom or his co-conspirators physically assaulted and restrained the employees.
On Dec. 10, 2016, Odom and his co-conspirators traveled to the Valparaiso Simply Mac store in Valparaiso, Ind., and forced store employees to the back of the store. Odom stayed in the car as the getaway driver while his co-conspirators carried out approximately $50,000 worth of stolen merchandise.
On Dec. 16, 2016, Odom traveled with eight co-conspirators to the Cherry Valley Simply Mac store in Cherry Valley, Ill. Odom and his co-conspirators forced employees to the back of the store, pepper sprayed one of them, and stole two computers.
Odom, 38, pleaded guilty last year to conspiracy and robbery charges. U.S. District Judge Philip G. Reinhard imposed the four-year sentence Wednesday after a hearing in federal court in Rockford.
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 Rockford Police Department assisted in the investigation. The government was represented by Assistant U.S. Attorney Robert S. Ladd.