Northern District of Illinois
Press releases recorded for this federal judicial district.
Indiana Man Indicted on Bank Robbery and Firearms Charges After Robbing Bank in LisleRead the Press Release
CHICAGO — A federal grand jury has indicted an Indianapolis man on one count of bank robbery and one count of using a firearm in furtherance of a crime of violence after robbing a suburban Illinois bank in February.
As noted within the indictment and the now unsealed criminal complaint, on February 16, 2023, ANTONIO MOORE, 25, of Indianapolis, IN robbed by force, violence, and intimidation a BMO Harris Bank located at 1050 Maple Avenue in Lisle, Illinois. Moore is alleged to have brandished a firearm, pointing it at a bank employee and demanding the employee and another remove money from the bank’s vault. Law enforcement tracked Moore’s location to a Chicago warehouse where he was arrested. Moore has been in custody since.
The indictment is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois and Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. Valuable assistance was provided by the Lisle Police Department, the Chicago Police Department, and the Villa Park Police Department. The government is represented by Assistant U.S. Attorneys Sushma Raju.
The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The bank robbery charge carries a possible sentence of up to 20 years in federal prison, the firearms charge carries a possible sentence of up to life in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
U.S. Postal Employee Sentenced to Nine Months for Mail TheftRead the Press Release
CHICAGO — A federal judge has sentenced a former U.S. Postal Service employee to nine months in federal prison for stealing mail that he was entrusted with.
DIAMANTE WILLIAMS, 25, of Chicago was indicted by a federal grand jury on three counts of mail theft by a U.S. Postal employee in March 2022 for events which occurred in March and April 2018. In September, 2022 Williams plead guilty to one count of mail theft. As stated in William’s plea agreement, on or about March 28, he stole mail and contents of mail from individuals residing on his route in Morgan Park, including financial instruments. Williams admitted to stealing a check intended for Company A in the amount of $1,274.
U.S. District Court Judge Martha M. Pacold sentenced Williams to nine months in federal prison on March 9, 2023.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Scott Pierce, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Central Area Field Office; and Ruth M. Mendonça, Inspector-in-Charge of the Chicago Office of the U.S. Postal Inspection Service. The government is represented by Assistant U.S. Attorney Malgorzata Tracz Kozaka.
Six Charged with Drug Trafficking Operation, Shipping Methamphetamine from California to ChicagoRead the Press Release
CHICAGO — A federal grand jury has indicted five Chicago area residents and one California resident with a drug trafficking conspiracy for both shipping methamphetamine through the mail and distributing methamphetamine in and around Chicago.
Charged in the indictment under count one are STEPHEN R. JENKINS, 44, of Chicago, KEITH R. MCCORMICK, also known as “Keith Lopez”, 51, of Sacramento, CA, DANIEL HEISE, 40, of Chicago, DONALD W. GRENIER, JR., 61, of Chicago, JOSE HERNANDEZ, 45, of Chicago, and WILLIAM F. KOCH, 36, of Chicago. Jenkins, Heise, Koch, and Greiner, Jr. are also charged with additional drug trafficking counts, which occur on different dates, within the indictment. Heise is also charged with possession of a firearm in furtherance of a drug trafficking offense.
As alleged in the indictment and the criminal complaint filed in February 2023, from February 2022 to February 2023, Jenkins and Heise directed McCormick to ship parcels containing methamphetamine via U.S. Mail from Sacramento, California to Chicago. During their investigation, law enforcement identified more than 200 parcels suspected of containing methamphetamine, and recovered methamphetamine from at least ten parcels, including parcels addressed to Grenier, McCormick, Koch, Hernandez, and Heise. Jenkins and Heise, along with other members of the drug trafficking organization, are alleged to have shipped narcotics proceeds back to McCormick via private shipping companies, including FedEx and UPS.
The indictment is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Ruth M. Mendonça, Inspector-in-Charge of the U.S. Postal Inspection Service (USPIS) in Chicago; Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the United States Attorney’s Office for the Eastern District of California, the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Forces located in Chicago and Sacramento, the USPIS’s High Intensity Drug Trafficking Area Task Force (HIDTA) Parcel Interdiction Regional Enforcement Team located in Chicago, USPIS’s Narcotics and Economic Crimes Investigations Task Force located in Sacramento, Homeland Security Investigations in Sacramento, and North Riverside Police Department, Illinois. The government is represented by Assistant U.S. Attorney Elly Peirson.
The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The drug trafficking counts carry penalties driven by the amount of methamphetamine each defendant is responsible for trafficking; they range from no less than 5 years up to life in federal prison. For the firearms charge, Heise faces an additional penalty of five years in federal prison consecutive to the drug charges. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
This case is part of an OCDETF investigation. OCDETF identifies, disrupts, and dismantles drug traffickers and other alleged criminal offenders 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.
Physician Indicted on Thirteen Counts of Healthcare FraudRead the Press Release
CHICAGO — A suburban Chicago physician has been indicted by a federal grand jury in Chicago on thirteen counts of health care fraud for submitting fraudulent requests for reimbursement.
As alleged in the indictment, from February 2018 to April 2022, MONA GHOSH, 50, of Inverness, a licensed physician who owned and operated Progressive Women’s Healthcare, S.C. (Progressive) in Hoffman Estates, participated in a scheme to defraud the government programs of TRICARE and Medicaid, along with several private insurance companies. The indictment alleges that Ghosh knowingly submitted fraudulent claims for reimbursement for services that were not provided and for services that were not medically necessary. These included claims for purported telemedicine visits when Ghosh did not speak to the patient, claims for office visits and procedures when Ghosh did not see the patient, claims for procedures predicated on false diagnosis, and claims for medically unnecessary procedures and tests, including endometrial ablations and laboratory testing. Ghosh fraudulently obtained, and caused Progressive to obtain, approximately $796,000 in fraudulent payments from multiple health care benefit programs for services that were not provided as billed.
The indictment is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Darrin K. Jones, Special Agent in Charge of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office; Mario Pinto, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General; and the Illinois Medicaid Fraud Control Unit. The government is represented by Assistant U.S. Attorney Misty Wright and Kavitha Babu.
“Targeting government and private healthcare programs relied on by the public to maintain their well-being is a serious crime,” said Acting U.S. Attorney Pasqual. “In addition to submitting false claims, the allegation that defendant performed medically unnecessary procedures to enrich herself is particularly disturbing. This office will continue to work closely with our law enforcement partners to prosecute those who steal from healthcare programs and who needlessly put patients at risk.”
“When healthcare providers illegally manipulate our healthcare system, it diminishes the trust Americans have in vital programs. The FBI is proud to stand with our law enforcement partners and ensure justice is served” said Special Agent in Charge Wheeler.
“Health care providers who submit fraudulent claims for unnecessary and non-rendered services not only waste valuable taxpayer dollars, but also undermine the trust and confidence of their patients,” said Special Agent in Charge Pinto. “We will continue to work together with our law enforcement partners to ensure that individuals who commit fraud against our federal health care programs are held accountable.”
“Those who place profit before patient care, impacting the welfare of our service members and their families, must be held accountable,” said Special Agent in Charge Jones. “DCIS proudly stands together with our law enforcement partners and the Department of Justice to root out fraud, waste, and abuse in the healthcare industry.”
The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of health care fraud is punishable by up to 10 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you or someone you know is a victim of Dr. Mona Ghosh or if you have any information, please contact the FBI at [email protected].
Suburban Chicago Man Indicted for COVID-19 Testing Fraud SchemeRead the Press Release
CHICAGO — A suburban Chicago man has been indicted by a federal grand jury on ten counts of wire fraud and one count of theft of government funds for purportedly submitting fraudulent claims for reimbursement on tests which were never performed, were performed improperly, or were already paid for by the client.
ZISHAN ALVI, 44, of Inverness co-owned and operated Laboratory A, a laboratory located in Chicago, Illinois. Laboratory A purported to perform testing to detect for SARS-CoV-2 and offered two types of COVID-19 testing: PCR tests and antigen tests that delivered results within approximately 15 minutes (“rapid tests”). Laboratory A also offered a service where individuals and companies could pay a fee to receive COVID-19 PCR test results in an expedited fashion.
The Health Resources and Services Administration (“HRSA”) was an agency of the U.S. Department of Health and Human Services that oversaw and administered the funds appropriated through federal legislation to cover the costs of COVID-19 testing for individuals without health insurance coverage (“the HRSA Uninsured Program”). As indicated in the indictment, Laboratory A enrolled in the HRSA Uninsured Program in or around December 2020.
From approximately February 2021 through February 2022, Alvi along with others, are alleged to have knowingly devised, intended to devise, and participated in a scheme to defraud the government by causing Laboratory A to submit fraudulent claims and delivering inaccurate and unreliable test results to the public. The fraudulent claims sought reimbursement for purported tests when Alvi knew that (a) Laboratory A had not performed a test for COVID-19; (b) Laboratory A had modified a test for COVID-19 such that the results were unreliable; and (c) Laboratory A already had collected payment from the individuals who purportedly had been tested.
The indictment further alleges that Alvi caused Laboratory A to provide negative test results to be released to individuals who had provided a specimen for testing, but for whom a COVID-19 test had not been performed. It is alleged that Alvi directed Laboratory A employees to falsely indicate in Laboratory A’s records that COVID-19 tests had been performed for these individuals, when Alvi knew that the test specimens had been discarded at his own direction and had not been tested. It is further part of the scheme that, in order to conceal the fact that tests were not performed, Laboratory A did not release positive COVID-19 results on specimens where tests were eventually performed, because a purported negative result had already been released.
It was further part of the scheme that, to reduce costs and increase Laboratory A’s profits, Alvi directed Laboratory A employees to alter Laboratory A’s PCR testing method by using less of the materials necessary to process the PCR test, including the reagents, knowing that this made the test results unreliable.
During its operation, Laboratory A obtained over $83 million from the HRSA Uninsured Program as payment for COVID-19 tests purportedly performed by Laboratory A. Alvi is alleged to have transferred some of the fraudulently obtained HRSA funds from Laboratory A’s accounts to a personal account, and to have used the funds for personal expenditures, including for vehicle purchases and investments in stocks and cryptocurrency. The indictment seeks forfeiture from the defendant of at least $6.8 million in alleged ill-gotten gains, in addition to five luxury vehicles and funds from other trade and investment accounts.
The indictment is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Mario Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; and Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. Substantial assistance was provided by the Illinois Attorney General’s Office. The government is represented by Assistant U.S. Attorneys Jared Hasten, Misty Wright, and Trial Attorney Claire Sobczak from the Department of Justice’s Health Care Fraud Unit.
“The charges in this case allege that the defendant disregarded public health concerns in favor of personal financial gain. Doing so by compromising taxpayer-funded programs intended to fight the spread of coronavirus was particularly reprehensible” said Acting U.S. Attorney Pasqual. “I commend the work of our law enforcement partners who investigated this complex fraud scheme. Our office will relentlessly continue to bring to justice those who defrauded the government’s pandemic relief initiatives.”
"The defendant defrauded the American people at a time when we were most vulnerable, in the midst of a global pandemic. This indictment shows that the FBI along with our law enforcement partners is continually working to keep Americans safe and uphold the Constitution as our mission demands of us," said Special Agent in Charge Wheeler.
“The defendant’s alleged conduct resulted in money unjustly obtained from Federal programs established during the COVID-19 pandemic to keep Americans safe, and also placed patients at risk through his role in the release of false COVID-19 test results,” said Special Agent-in-Charge Pinto. “Our agency is committed to working with our law enforcement partners to ensure that those who defraud our federal health care programs and place patients at risk of harm are held accountable.”
“It is absolutely reprehensible that the defendant would use a public health crisis to allegedly defraud taxpayers and further put public health at risk by providing fraudulent COVID-19 test results,” Attorney General Kwame Raoul said. “I want to thank the United States Attorney for the Northern District of Illinois, the Chicago Office of the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of the Inspector General, and all of the law enforcement partners working to hold those who perpetrated this scheme accountable.”
The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison, and the count of theft of government funds is punishable by up to 10 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Illinois Attorney Found Guilty of Embezzlement, Bankruptcy Fraud, and Tax FraudRead the Press Release
CHICAGO — A federal jury has found a former Illinois attorney and real estate developer guilty on two counts of embezzlement, six counts of bankruptcy fraud, and eight counts of tax fraud following a nearly four week-long trial in Chicago.
Evidence at trial revealed that ROBERT KOWALSKI, 61, of Chicago was a close associate of John Gembara, the former President of Washington Federal Bank for Savings (“WFBS”), a small bank in Chicago’s Bridgeport neighborhood which 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. Kowalski served a key role in the embezzlement scheme, specifically diverting from the bank more than $8 million, plus property which was rightly the collateral of the bank for other loans. The embezzled funds that Kowalski received from WFBS were concealed by entering them on the bank’s records as loan disbursements. However, WFBS never required Kowalski to repay these fraudulent loans. Along with his co-conspirators, Kowalski was involved in the falsification of bank records and the recording of false financial transactions to shift real estate interests into his own name for financial benefit. After the collapse of WFBS, the Federal Deposit Insurance Corporation attempted to collect on the money and properties that Kowalski obtained as part of the embezzlement scheme. To avoid losing the assets, Kowalski filed a fraudulent bankruptcy case, in which he attempted to concealed numerous assets. To substantiate the financial claims made within his bankruptcy filings, and avoid paying taxes, Kowalski filed false corporate returns in 2014 and 2015, and false personal returns in 2015, 2016, and 2017. Kowalski failed to file returns in 2013 and 2014.
Sentencing has been set for June 2, 2023 before U.S. District Court Judge Virginia M. Kendall. Kowalski could face a sentence of up to 82 years in federal prison.
The verdict was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Kathy A. Enstrom, 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. Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Andrea Peacock, Special Agent in Charge of the of the Department of the Treasury, Office of Inspector General; Deborah Witzburg, City of Chicago Inspector General; and Kathryn 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 Jeremy Daniel, Kristin Pinkston, and Brian Netols, along with Special Assistant U.S. Attorney Jeffrey Snell.
Man Indicted on Multiple Kidnapping, Carjacking, and Firearms OffensesRead the Press Release
CHICAGO — A federal grand jury has indicted a Chicago man on three counts of kidnapping, two counts of carjacking, and one firearms charge for offenses he committed while on pre-trial release for a previously charged federal gun offense. Those convicted of committing a criminal offense while on pretrial release are subject to an enhanced criminal penalty.
The superseding indictment alleges that on February 27, March 8, and March 10, 2021 ANDREW ANANIA, 28, of Chicago, kidnapped the drivers of three vehicles, one on each date. On two of the occasions, Anania also stole the victims’ motor vehicle with intent to cause death and serious bodily harm. In October 2021, Anania was previously indicted on a kidnapping charge for the incident that occurred on March 8 during which he also sexually abused his victim. Anania was arrested for this offense on March 13, 2021 and has been in custody since that time.
Prior to the conduct described in the superseding indictment, on February 15, 2019, while driving in the neighborhood of Little Village, Anania was stopped by Chicago Police Officers. When officers attempted to approach Anania, he fled on foot through a residential neighborhood. During the pursuit, officers observed Anania throw a firearm into a residential yard. Officers arrested Anania and recovered the firearm a short time later. Anania was indicted by a federal grand jury for being a felon in possession of a firearm on June 26, 2019, and a court later granted his request for pre-trial release. On October 14, 2021, Anania pleaded guilty to this firearms offense, and he was sentenced to 40 months’ imprisonment for that offense on February 14, 2022.
The indictment is announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and David Brown, Superintendent of the Chicago Police Department. Substantial assistance was provided by the Darien Police Department, Cicero Police Department, Summit Police Department, and Stickney Police Department. The government is represented by Assistant U.S. Attorney Cornelius Vandenberg.
The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of kidnapping is punishable by up to life imprisonment, and each count of carjacking is punishable by up to 25 years in federal prison. The charge of using, carrying, and brandishing a firearm during and relation to a crime of violence carries a maximum sentence of life imprisonment, as well as a mandatory sentence of at least 7 years’ imprisonment if the government proves that the firearm was brandished, which sentence must be served consecutive to any other sentence imposed. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Eleven Charged with Drug Trafficking for Chicago Street GangRead the Press Release
CHICAGO — A federal drug trafficking investigation has resulted in charges against 11 individuals for allegedly conspiring to distribute crack cocaine for the La Familia Stones street gang in the Chicago area, primarily in the Albany Park neighborhood on Chicago’s North Side. As part of the investigation, law enforcement shut down a telephone drug hotline, according to a criminal complaint recently unsealed in U.S. District Court in Chicago.
Charged in the criminal complaint, which was unsealed on March 2, 2023, is EDUART HOXHA, 35, of Chicago, also known as “Finn” and “White Boy,” ALEXIS DEL TORO, 24, of Elmwood Park, also known as “Tony,” FREDDY DEL TORO, 27, of Elmwood Park, also known as “Fredo” and “Ricky,” BRYAN DEL TORO, 22, of Elmwood Park, ALEX HERNANDEZ, 24, of Chicago, also known as “Joey” and “Biggie,” HADER GARCIA, 19, of Chicago, also known as “Luis,” RUBEN VALENCIA, 22, of Chicago, KARINA JIMENEZ, 35, of Chicago, also known as “Kay Kay” and “Rina,” KEVIN RAMIREZ, 27, of Evanston, JONAS CASTILLO, 26, of Chicago, also known as “Guero,” and JESENIA CALLE, 20, of Chicago, also known as “J-Dog.” As described in the complaint, two of the defendants have also been charged with murder in the Circuit Court of Cook County and are currently being held in state custody.
The defendants charged in the complaint are alleged to have conspired to distribute crack cocaine between December 2021 and November 2022, primarily using a telephone hotline that customers used to order crack cocaine, which was then delivered by one of the defendants. During the investigation, law enforcement officials seized hundreds of grams of crack cocaine and numerous firearms from various defendants. All but one of the defendants were arrested by federal agents last week or are in State custody and have begun making initial appearances in U.S. District Court in Chicago. One defendant remains at large, and a warrant has been issued for his arrest.
The arrests are announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Christopher C. Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department. Substantial assistance was provided by the Chicago Police Department’s Narcotics Division, which began a narcotics investigation to assist Chicago Police Department’s Detectives Bureau, and later worked with the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Additional assistance was provided by the Internal Revenue Service Criminal Investigation Division, U.S. Marshals Service, U.S. Customs and Border Protection, Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, Chicago High Intensity Drug Trafficking Area (HIDTA) Investigative Support Center, Illinois National Guard, Skokie Police Department, and Elmwood Park Police Department. The government is represented by Assistant U.S. Attorneys Ramon Villalpando, Ann Marie Ursini, and Adam Rosenbloom.
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. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
This case is part of an Organized Crime Drug Enforcement Task Forces investigation. OCDETF identifies, disrupts, and dismantles drug traffickers and other alleged criminal offenders 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.
Man Sentenced to Life in Federal Prison for Committing Murder to Maintain and Increase Position in Chicago Street GangRead the Press Release
CHICAGO — A federal judge has sentenced a Chicago man to life in prison for committing murder to maintain and increase his position in a violent Chicago street gang.
PIERRE ROBINSON, 29, of Chicago, was found guilty of committing murder in aid of racketeering by a federal jury in August, 2022. The jury returned its verdict after a four-day trial in U.S. District Court in Chicago. On March 6, 2023, U.S. District Judge John J. Tharp, Jr., sentenced Robinson to life in prison.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Christopher C. Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and David Brown, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorneys Albert Berry III and Margaret Steindorf.
Evidence at trial revealed that Robinson murdered Glenn Houston, Jr., on Dec. 23, 2014, for the purpose of maintaining and increasing Robinson’s position in the Evans Mob street gang. Robinson shot Houston, 23, multiple times inside a store in the 400 block of East 79th Street in the Chatham neighborhood on Chicago’s South Side. The Evans Mob, also known as “GuttaGang” and “Hitz Squad,” is a criminal organization whose members and associates engaged in narcotics trafficking and committed acts of violence, including murder, attempted murder, and assault, to acquire and preserve the gang’s territory on the South Side of Chicago. Members of the Evans Mob used social media to publicly claim responsibility for their acts of violence, taunt rival gang members, and took steps to prevent law enforcement’s detection of its criminal activities.
During the sentencing hearing, U.S. District Judge Tharp determined that Robinson was also involved in the murder and attempted murder of two other individuals, Hammood Dawoudi and DeShawn Danzler, on June 18, 2015.
Two Charged in Robbery Spree in Chicago and Oak ParkRead the Press Release
CHICAGO — A federal grand jury has indicted two Chicago residents on a total of five counts of robbery affecting interstate commerce.
EQUISHA BUTLER, 29, of Chicago has been charged with five counts of robbery and KISHAWN BROWNLEE, 26, of Chicago has been charged alongside Butler on two of those counts. The indictment, which was unsealed on March 6, alleges that between April 13 and July 29, 2022, Butler robbed five 7-11 convenience stores and that Brownlee participated in two of those robberies. The five robberies occurred at 7-11 stores located at:
- 661 South Blvd, Oak Park
- 3800 N Kedzie Ave, Chicago
- 2366 N Damen, Chicago
- 4771 N Elston, Chicago
- 4346 N Kimball, Chicago
Both Butler and Brownlee were arraigned before U.S. Magistrate Judge Jeffrey Cole on March 1, 2023.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and David Brown, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Irene Hickey Sullivan.
The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of robbery 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.
Representative of Chicago Area Red-Light Camera Company Sentenced to Five Years in Federal PrisonRead the Press Release
CHICAGO —A sales agent for a Chicago-area red-light camera company, Company A, has been sentenced to more than five years in federal prison for conspiring to pay bribes to a public official and for filing a false tax return.
In July 2022, PATRICK J. DOHERTY, 67, of Palos Heights, pleaded guilty to one count of corruptly offering something of value to influence and reward a public official (Count Five), and one count of filing a false tax return (Count Eight). Earlier this week, U.S. District Judge Ronald A. Guzman sentenced Doherty to 64 months’ imprisonment on the bribery charge, and 34 months on the false tax return charge, which sentences are to run concurrently.
According to his plea agreement, Doherty offered and agreed to give things of value, namely money, with the intent to influence State Senator A, an agent of the State of Illinois. As Chairman of the Senate Transportation Committee, State Senator A was in a position to assist Company A by opposing legislation adverse to the interests of the red-light-camera industry and obtaining Illinois Department of Transportation (“IDOT”) approvals for Company A’s red-light cameras. Doherty also admitted other acts of bribery in the plea agreement, including acts that involved abusing his position as Chief of Staff for Public Official A, a Cook County Commissioner, in efforts to benefit individuals who paid money to Doherty and his associates. In total, Doherty participated in corrupt activities that involved offering and obtaining bribes totaling approximately $148,000.
In addition, in 2016, Doherty caused an accountant to file his tax return with the Internal Revenue Service, knowing that this tax return contained false information. The false return caused losses to the IRS of at least $14,732 and losses to the Illinois Department of Revenue of at least $1,268. Doherty also acknowledged that his tax returns for tax years 2012 through 2015 and 2017 through 2018 underreported his income, and thereby caused additional losses to (1) the IRS of at least $58,430; and (2) the Illinois Department of Revenue of at least $6,512.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr, Special Agent-in-Charge of the Chicago office of the FBI; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government was represented by Assistant U.S. Attorney Tiffany A. Ardam.
Two Suburban Chicago Residents Charged with $742,000 COVID-Relief FraudRead the Press Release
CHICAGO — A federal grand jury in Chicago, Illinois, returned an indictment in February, which was unsealed on March 1, charging two suburban Chicago residents with a total of 15 counts of wire fraud for allegedly fraudulently obtaining at least $742,000 in small business loans and grants under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to the indictment, beginning around March 2020, and continuing until around March 2021, TE DORA BROWN, 43, of Palos Park, Illinois, and CHRISTOPHER SCOTT, 43, of Hazel Crest, Illinois, participated in a scheme to defraud the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP). Brown is charged with 13 counts of wire fraud, and Scott is charged with 9 counts.
As part of the scheme, the indictment alleges the defendants submitted to the SBA numerous applications for loans on behalf of businesses and entities purportedly owned by the defendants. The applications are alleged to have contained materially false statements and misrepresentations concerning, among other things, the purported entities’ number of employees, gross revenues, payroll, operating expenses, type of business, and existence as companies with ongoing operations. The indictment alleges that Brown and Scott knew at the time that the fictitious entities through which they applied had no employees or payroll, and that they intended to use the loan funds for their personal use and benefit.
Brown and Scott were arraigned in federal court in Chicago on March 1, 2023, before Magistrate Judge Jeffrey Cole.
The indictment is announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Douglas Zloto, Special Agent-in-Charge of the Chicago Field Office of the United States Secret Service. Substantial assistance was provided by the SBA-Office of Inspector General. The government is represented by Assistant U.S. Attorney Alejandro G. Ortega.
The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. 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 fraud involving COVID-19 is encouraged to report it to the Department of Justice by calling the National Center for Disaster Fraud Hotline at 866-720-5721 or filing an online complaint at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Three Plead Guilty to Healthcare Fraud in Schemes That Totaled $6.5 Million Dollars in Fraudulent ClaimsRead the Press Release
CHICAGO — A Chicago-area physical therapist, health care professional, and a personal trainer have pleaded guilty to one count of healthcare fraud each for scheming to defraud private insurers for payment of physical therapy and other services that were never rendered.
INESSA KATSNELSON, 55, of Glenview, also known as “Inessa Blinov,” “Inessa Danuchevsky” and “Inna,” a personal trainer and singer who worked out of a gym in Northbrook, participated in a scheme to defraud private health and auto insurers through multiple entities from 2006 to October 2018. Katsnelson provided names and insurance information for purported patients to those entities, knowing the entities would submit fraudulent claims to insurance companies for services never provided. In exchange for the use of their information, Katsnelson provided to some of the individuals she referred certain benefits, including free personal training sessions, massages, and the exhaustion of their annual health insurance deductibles, at no cost to them, through the fraudulent billing practices.
MAYA YAKUBOVICH, 56, of Arlington Heights, who worked as a medical claims biller for various health care facilities in Buffalo Grove, Northfield, Prospect Heights, Wheeling, Des Plaines, and Glenview, participated in the scheme with Katsnelson and others. From approximately 2006 to October 2018, Yakubovich knowingly prepared and submitted fraudulent claims, and at times created false medical records to support the claims. Yakubovich also provided names and insurance information for purported patients to one of the entities, and then submitted fraudulent claims to insurance companies for services never provided to the purported patients.
BEATTA KABBANI, 55, of Glenview, who was a licensed physical therapist, president, and secretary of a medical group located in Northfield and Glenview, pleaded guilty in a separate case based on her involvement in a related scheme. Between September 2011 and November 2016, Kabbani fraudulently submitted, and caused to be submitted, fraudulent claims to insurance companies. The claims falsely represented that certain healthcare services were provided to patients, when Kabbani knew that those services were not actually provided. The fraudulent claims identified Kabbani, a medical doctor, and another therapist as the service providers on dates when these three providers were not present at the healthcare facility. To substantiate the fraudulent claims Kabbani created, and caused the creation of, false medical records.
Katsnelson, Yakubovich, and Kabbani, along with their co-schemers, received a portion of the fraudulently obtained funds. In total, the indictment against Katsnelson, Yakubovich, and others alleges that nine insurance companies were defrauded out of approximately $6.5 million. Co-schemers whose charges are still pending are TETYANA VORONKINA, a medical claims biller, also known as “Tanya Voronkina,” 60, of Mundelein, and massage therapist VIKTOR DANCHUK, 62, of Roselle.
Sentencing for Katsnelson is scheduled for May 26, 2023 before U.S. District Judge Sharon Johnson Coleman. Yakubovich’s sentencing is scheduled for May 24, 2023 before U.S. District Judge Sharon Johnson Coleman. Kabbani’s sentencing has not yet been scheduled.
The plea agreements are announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Ruth M. Mendonça, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Irene Lindow, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor, Office of Inspector General; and Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The government is represented by Assistant U.S. Attorneys Heidi Manschreck and Chester Choi.
Federal Judge Sentences Rockford Man to More Than Five Years in Prison for Illegally Possessing Firearm in RockfordRead the Press Release
ROCKFORD — A federal judge has sentenced a Rockford man to five years and four months in federal prison for illegally possessing a firearm in Rockford, to be followed by three years of supervised release.
U.S. District Judge Iain D. Johnston sentenced JAVIN MASON, 32, to more than five years in prison today. Mason pleaded guilty in November 2022 to a charge of illegal firearms possession. As a previously convicted felon, Mason was prohibited by federal law from possessing firearms. Mason admitted in a plea agreement to possessing firearms that he knew were stolen, and selling them to another individual.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Christopher C. Amon, Acting 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. The government was represented by Assistant U.S. Attorney Jessica Maveus.
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, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
United States Attorney John R. Lausch, Jr., Announces ResignationRead the Press Release
CHICAGO — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois since 2017, today announced his resignation, which will become effective on March 11, 2023. First Assistant U.S. Attorney Morris “Sonny” Pasqual will assume the position of United States Attorney on an acting basis.
Mr. Lausch was sworn in as United States Attorney on November 22, 2017, following his appointment by President Donald J. Trump. Under Mr. Lausch’s leadership, the U.S. Attorney’s Office achieved significant convictions in the areas of violent crime, public corruption, national security, financial fraud, drug trafficking, and many other areas of importance. Mr. Lausch also oversaw substantial achievements in civil cases, including procuring millions of dollars in settlements and judgments against individuals and companies for civil rights violations, health care fraud, and environmental harms.
“It has been the privilege of a lifetime to lead the U.S. Attorney’s Office in Chicago,” said Mr. Lausch. “I want to thank all of my talented colleagues in the office, as well as our federal, state, and local law enforcement partners, for their hard work and dedicated public service during my tenure. It was my honor each and every day to help carry out the office’s mission to uphold the rule of law, keep our country safe, and protect our civil rights.”
“John Lausch has served the citizens of the Northern District of Illinois and the United States with magnificent distinction,” said Mr. Pasqual. “I want to thank John for his tremendous stewardship of the office, and I wish him well in his future endeavors.”
During Mr. Lausch’s tenure, the office focused on battling the stubborn violent crime problem in Chicago and throughout the Northern District, overseeing multiple racketeering prosecutions of members of organized criminal street gangs and gang factions, as well as the prosecutions of illegal gun offenders in Chicago and throughout northern Illinois. Among other strategies, the office launched a Gun Crimes Prosecution Team to disrupt the cycle of violence in the Chicago neighborhoods most in need, as well as a Gun Trafficking Strike Force to address the illegal transfer of firearms to felons and other prohibited persons. Mr. Lausch in 2020 oversaw federal law enforcement’s collaboration with state and local law enforcement partners to respond to civil unrest and rising rates of violent crime in the Chicago area.
Mr. Lausch led the U.S. Attorney’s Office’s response to the Covid-19 pandemic. The office remained open during the pandemic, and Mr. Lausch oversaw criminal charges against numerous individuals for allegedly using the crisis to commit fraud during a vulnerable time in our nation’s history. In addition, the office maintained its strong tradition of prosecuting individuals for public corruption offenses during Mr. Lausch’s tenure.
From 2018 to 2020, Mr. Lausch served on the Attorney General’s Advisory Committee (AGAC), which consists of a select number of U.S. Attorneys who advise the Attorney General on policy, management, and operational issues impacting federal prosecutors’ offices across the country. Mr. Lausch also served on several AGAC subcommittees, including as Chair of the Violent and Organized Crime Subcommittee, and as a member of the White Collar Fraud, Controlled Substances, and Child Exploitation and Human Trafficking subcommittees. Mr. Lausch was also tasked by three Attorneys General to perform significant assignments related to sensitive matters of national importance.
Mr. Lausch earned his law degree in 1996 from Northwestern University School of Law, and his bachelor’s degree in 1992 from Harvard University. He previously served in the U.S. Attorney’s Office as an Assistant U.S. Attorney from 1999 to 2010.
Before taking over as First Assistant U.S. Attorney in 2022, Mr. Pasqual spent nearly 33 years in the office as an Assistant U.S. Attorney, including in several supervisory roles. Mr. Pasqual will assume the role of U.S. Attorney on an acting basis until a presidentially appointed candidate is confirmed by the U.S. Senate.
Former City of Harvey Employee Found Guilty on Five Counts of Facilitating BriberyRead the Press Release
CHICAGO — A federal jury in Chicago has found a former building inspector for the City of Harvey guilty on five counts of using a facility of interstate commerce (a cell phone) to facilitate violations of the Illinois state bribery statute.
Evidence at trial revealed that between February to April of 2018, Lester Crowder, 73, of Ohio met nine times with an individual who said he was looking to open a nightclub in Harvey. In those meetings, Crowder communicated that the individual would need to pay up to $50,000 in cash bribes in order to obtain the nightclub property and obtain the necessary permits. Crowder collected approximately $13,000 in bribe payments from the individual, who was cooperating with the FBI and recording their conversations. During the same time, Crowder was captured on court-authorized recordings communicating with another individual confirming their intent to take bribes.
Sentencing has not yet been scheduled before the Honorable Martha Pacold. Each count could carry a sentence of up to five years in federal prison.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Machelle L. Jindra, Special Agent in Charge of the Housing and Urban Development Office of the Inspector General. The government is represented by Assistant U.S. Attorneys Sean Franzblau and Megan DeMarco.
Man Sentenced to Four Years for Committing COVID-19 Relief Fraud While on Home Confinement for Similar Financial CrimesRead the Press Release
CHICAGO — A suburban Chicago businessman has been sentenced to four years in federal prison for re-offending while still serving a federal sentence stemming from an earlier financial fraud conviction.
Shortly after being released from prison and while on home confinement near the end of his 60-month sentence for theft of government funds and aggravated identity theft, CARLOS SMITH, 58, of Park Forest began submitting fraudulent applications for government-backed loans intended to support businesses suffering economic effects from the Covid-19 pandemic. Smith first submitted a fraudulent application for the Economic Injury Disaster Loan (“EIDL”) Program, run by the Small Business Administration (SBA), in April 2020, while he was on home confinement. Shortly after obtaining the EIDL funds, and while serving the supervised release portion of this prior sentence, he fraudulently sought and obtained a second loan, this time through the Paycheck Protection Program (“PPP”). In both applications, Smith lied about the condition and performance of his purported business, CLS Financial Services, Inc., which did not operate during the year prior to the pandemic, when defendant was incarcerated. In the PPP application, Smith also lied about his criminal history and submitted fake tax documents. Between the two loans, Smith received approximately $421,900. Smith pleaded guilty to one count of wire fraud and one count of money laundering on June 22, 2022.
The sentence was imposed by U.S. District Court Judge Manish S. Shah on February 23, 2023.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Hannibal Ware, Inspector General of the U.S. Small Business Administration. The government is represented by Assistant U.S. Attorney Heidi Manschreck.
Anyone with information about attempted fraud involving COVID-19 can report it to the Department of Justice by calling the National Center for Disaster Fraud Hotline at 866-720-5721, or filing an online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Chief Financial Officer Sentenced to Three Years for Embezzling More Than $1.3 MillionRead the Press Release
CHICAGO — The former chief financial officer of a suburban IT consulting firm has been sentenced to three years in federal prison after embezzling over $1.3 million from his former company, of which he was a partner, CFO, and Managing Member.
ANTHONY FREMAREK, 49, of Plainfield fraudulently caused funds from two of the Schaumburg-based company’s bank accounts to be used to pay his personal credit cards, from 2013 to 2019. Fremarek attempted to conceal the embezzlement by falsifying entries in the company’s accounting system to disguise the payments as seemingly legitimate business expenses and submitting falsified financial information to the company’s banks. Fremarek pleaded guilty to one count of wire fraud in November 2022.
The sentence was imposed by U.S. District Court Judge Robert Gettleman on February 23, 2023.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Douglas Zloto, Special Agent-in-Charge of the U.S. Secret Service Chicago Field Office. The government is represented by Assistant U.S. Attorney Ashley A. Chung.
“[A]s soon as [defendant] had access to the company’s accounts and financial records, he began abusing his position out of pure greed,” Assistant U.S. Attorney Ashley A. Chung argued in the government’s sentencing memorandum. “Defendant . . . unrepentantly betray[ed] the trust of his former partners and employees and stopped only when he was caught and terminated.”
Robert Kelly Sentenced to 20 YearsRead the Press Release
CHICAGO — Recording artist ROBERT SYLVESTER KELLY, also known as “R. Kelly,” was sentenced earlier today by United States District Judge Harry D. Leinenweber to 20 years in federal prison, with one year to run consecutive to the 30-year sentence previously imposed in the Eastern District of New York.
On September 14, 2022 after a four-week trial a federal jury in Chicago convicted Kelly on three counts of producing child pornography and three counts of enticing a minor to engage in sexual activity. The trial revealed that Kelly enticed multiple underage girls to engage in sexual activity, and that he continued to abuse his victims for years, at times recording some of the abuse on videotape. Kelly met the victims in the late 1990s and engaged in sex acts with them beginning when they were as young as 14, 15, and 16 years old.
On multiple occasions over several years Kelly took steps to cover up his abuse and silence his victims.
The sentence is announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; R. Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. Substantial assistance was provided by the Cook County State’s Attorney’s Office and the Chicago Police Department. Assistant U.S. Attorneys Jeannice W. Appenteng, Elizabeth R. Pozolo, Jason A. Julien, and Brian F. Williamson represented the government.
“With today’s sentence, a sexual predator is being held accountable for the years of abuse he inflicted on minor victims,” said U.S. Attorney John R. Lausch. “Kelly used his celebrity and wealth to attract and victimize young girls, and to obstruct prior criminal proceedings intended to end his despicable conduct. We commend the courage and the strength of the victims who came forward in this case to expose Kelly’s crimes. Our office will never cease seeking justice for victims of child sexual abuse, and the public can take comfort knowing that Kelly will never again be in a position to exploit young girls.”
“Robert Kelly used his power and fame for evil when he exploited children for his own gratification,” said Sean Fitzgerald, special agent in charge of HSI Chicago. “We are confident that Kelly’s sentence will empower victims who are facing similar circumstances to come forward knowing they will be supported. HSI, alongside its partners from the U.S. Attorney’s Office, the Chicago Police Department, and IRS Criminal Investigation, will do everything in our power to ensure perpetrators like Kelly face justice.”
If you believe you are a victim of sexual exploitation, you are encouraged to contact HSI’s confidential tip line by calling 1-866-DHS-2-ICE (1-866-347-2423) or by logging on to https://www.ice.gov/webform/hsi-tip-form. The service is available 24 hours a day, seven days a week.
Owner of Suburban Manufacturing Company Sentenced to 9 Months and Ordered to Pay $3.3 Million on Tax FraudRead the Press Release
CHICAGO — The owner of a suburban Chicago manufacturing company has been sentenced to 9 months in federal prison and ordered to pay $3,329,701 in restitution to the U.S. Treasury and the Illinois Department of Revenue following his conviction for payroll tax fraud.
In June 2022, EDWARD T. ARNIERI, 71, of St. Charles pleaded guilty to a federal tax offense for withholding approximately $3.9 million dollars in employee payroll taxes and failing to remit the money to the Internal Revenue Service. Arnieri was the president and sole owner of Lane Tool & Manufacturing Company Inc., located in South Elgin. Payroll taxes are made up of both contributions by the employer and employee for Social Security and Medicare that are collected and remitted on a quarterly basis; as well as Federal Unemployment Taxes (FUTA) that are paid by the employer annually. Additionally, as an employer, Arnieri was required to withhold federal income tax from employees’ wages and send those amounts to the U.S. Treasury on a quarterly basis. For approximately eight years, Arnieri caused his company to issue Forms W-2 and paychecks to its employees which falsely reflected that the company had withheld income and payroll taxes from their wages. Arnieri’s conduct also resulted in the filing of inaccurate individual tax returns for himself, resulting in additional tax loss of approximately $450,000.
The sentence was imposed by U.S. District Court Judge Jorge L. Alonso on September 15, 2023.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorney Patrick J. King, Jr.
Ogle County Man Sentenced to Fourteen Years in Federal Prison for Transporting Child PornographyRead the Press Release
ROCKFORD — A Byron, Ill. man was sentenced today to fourteen years in federal prison for transportation of child pornography.
OSCAR FLORES-VAZQUEZ, 51, pleaded guilty earlier this year to one count of knowingly transporting child pornography. U.S. District Judge John Robert Blakey imposed the sentence. Flores-Vazquez was also ordered to pay $8,750.00 in restitution to certain victims.
The sentence was announced by John R. Lausch, Jr., 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.
Flores-Vazquez admitted in a plea agreement that he used a peer-to-peer application on his computer to knowingly allow others, including an undercover law enforcement agent, to access files on his computer that Flores-Vazquez knew contained child pornography. In June 2018, Flores-Vazquez knowingly transported child pornography, including a file depicting a minor engaged in sexually explicit conduct. Flores-Vazquez further admitted in the plea agreement that he possessed a laptop that contained more than 600 images of child pornography.
Former VP and Chief Operating Officer of Chicago Area Hospital Indicted for FraudRead the Press Release
CHICAGO — A federal grand jury in Chicago, Illinois, returned an indictment on February 15, charging the former Vice President and Chief Operating Officer of a Chicago area hospital with three counts of mail fraud and three counts of money laundering.
According to the indictment, beginning in or around December 2013 and continuing until in or around July 2021, ROBERT SPADONI, 58, of Darien defrauded the Chicago area hospital out of approximately $622,500. Despite being required to comply with the hospital’s conflict of interest policy, which prohibited, among other things, employees and their family members from having a financial interest in an organization doing and seeking to do business with the hospital, Spadoni caused the hospital to enter into a professional services agreement with Medical Education Solutions (MES), a company established by Spadoni. The contract between the hospital system and MES was for MES to provide administrative support and compliance services to the hospital’s podiatry residency program.
The indictment alleges that, under the terms of the MES agreement, the hospital agreed to pay $6,500 per month for the purported services Spadoni knew would not be provided by MES. Spadoni concealed, and attempted to conceal, his and a family member’s financial interest in MES, providing a direct report with a $1,500 monthly cash payment in order to perform the administrative support and compliance services that were covered by the MES agreement. Spadoni and the family member are alleged to have used the remaining funds obtained from the hospital for their own personal benefit and the personal benefit of others.
Arraignment in federal court has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr, Special Agent-in-Charge of the Chicago Field Office of the FBI; and Kwame Raoul, Illinois Attorney General. The government is represented by Assistant U.S. Attorney Chester Choi.
The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of mail fraud is punishable by up to 20 years in federal prison and each count of money laundering is punishable by up to 10 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Federal Inmate Sentenced to More Than Seven Years in Prison for Assaulting Federal Correctional OfficerRead the Press Release
ROCKFORD — A former inmate of the United States Penitentiary in Thomson, Ill. was sentenced today to more than seven years in federal prison for assaulting a federal correctional officer.
JOSEPH VAN SACH, 50, was found guilty of the offense on March 15, 2022, following a seven-day jury trial in federal court in Rockford.
According to evidence at trial, on April 2, 2019, while in custody at USP Thomson, Van Sach forcibly assaulted a correctional officer who was engaged in the performance of his official duties. Van Sach made physical contact and inflicted bodily injury to the officer.
U.S. District Judge John Robert Blakey imposed the sentence after a hearing in federal court in Rockford.
The sentence was announced by John R. Lausch, Jr., 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. Attorneys Jessica Maveus and Vincenza L. Tomlinson.
Chicago Man Sentenced to Eight Years for Setting Fire to Cell Phone StoreRead the Press Release
CHICAGO — A Chicago resident has been sentenced to eight years in federal prison for setting fire to the Boost Mobile Store located at 809 E. 79th Street in 2019.
In the early morning hours of September 10, 2019, OTHO HARRIS, 63, of Chicago broke the front door of the store, poured gasoline into the building, and set it on fire because he was upset with the store’s response to his broken cellphone. The day before, on September 9, Harris got into a confrontation with a store employee about the broken cellphone and slammed the phone down onto the ground and exited the store after the employee said the phone could not be repaired. Harris, who plead guilty to one count of arson in September of 2022, has a lengthy criminal history involving multiple prison sentences for other violent crimes.
On February 9, 2023, U.S. District Judge John J. Tharp, Jr., imposed the 96-month prison sentence. The court also ordered Harris to pay $195,701 in restitution for the extensive damage the fire caused to the Boost Mobile store.
The sentence is announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffery L. Matthews, Acting Special Agent-in-Charge of the Chicago office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department. Assistant U.S. Attorney Prashant Kolluri represented the government.
Whiteside County Man Pleads Guilty to Embezzlement from a Labor OrganizationRead the Press Release
ROCKFORD — A Morrison, Ill. man pleaded guilty in federal court before U.S. District Judge Iain D. Johnston to embezzling from a labor organization.
BRENT TOPPERT, 42, was the elected Financial Secretary-Treasurer of Local 238 of the Security, Police, and Fire Professionals of America (SPFPA). The SPFPA represented members engaged in providing security at a nuclear plant in Cordova, Ill. Toppert admitted in a plea agreement that in 2018 he made an unauthorized withdrawal of $500 from a bank account owned by the SPFPA, and that the withdrawal was not for any business purpose. Toppert admitted that he converted this money to his personal use.
The government alleged in the plea agreement that Toppert converted a total of $63,713.14 of the SPFPA’s assets to his personal use.
Toppert faces a maximum sentence of five years’ imprisonment. The actual sentence will be determined by the U.S. District Court, guided by the Sentencing Guidelines. Sentencing is set for June 6, 2023 at 1:30 p.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Thomas Murray, District Director of the U.S. Department of Labor – Office of Labor Management Standards. The government is represented by Assistant U.S. Attorney Michael D. Love.
Chicago Resident Sentenced to Seven Years in Connection to International “Romance Scam”Read the Press Release
CHICAGO — A man who helped lead a multi-year fraud scheme carried out by individuals in the United States and Nigeria has been sentenced to more than seven years in federal prison.
OLANIYI NASIRU OJIKUTU, a 39-year-old legal permanent resident of the U.S., who was born in Nigeria and was residing in Chicago at the time of the crimes, was one of ten individuals indicted as the result of “Operation Gold Phish,” a Chicago-based investigation which identified a variety of cyber-enabled scams primarily targeting elderly victims. The schemers built trust with victims through a purported online romance before convincing the victims to send money. The victims were contacted via websites such as Match.com, Facebook, and Instagram.
After being notified of the charges against him in May of 2019, Ojikutu fled via bus to Canada but was apprehended seven months later. He was turned over to United States authorities in January 2020 and pled guilty to one count of wire fraud in July 2022.
Over the course of approximately three years, Ojikutu opened approximately 25 bank accounts in his own name, a fake name, and a shell company name through which approximately $3.4 million in fraudulently obtained proceeds were transferred. Ojikutu used the fraudulently obtained funds for his own personal benefit, including to purchase vehicles in the United States and ship them to Nigeria for resale. As the result of Ojikutu’s actions, some victims lost hundreds of thousands of dollars.
On February 8, 2023, U.S. District Judge John Robert Blakey imposed an 88-month prison sentence for Ojikutu. All but one of the nine defendants in U.S. custody have pled guilty in this case. The alleged leader, DANIEL SAMUEL ETA, also known as “Captain” and “Etaoko,” 35, of Skokie has plead not guilty and his case is still pending.
The sentence is announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Kai Pickens, Acting Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. Valuable assistance was provided by the Nigerian Economic and Financial Crimes Commission. Assistant U.S. Attorney Charles W. Mulaney represented the government.
The FBI estimates that approximately 24,000 people lost more than $956 million in romance scams in 2021 alone. For tips on how to protect yourselves and your loved ones, visit the Federal Trade Commission’s romance scam webpage. To report a suspected romance fraud, file a report via the FBI’s Internet Crime Complaint Center at www.ic3.gov.
Chicago Investment Advisor Indicted on Fraud Charges for Allegedly Swindling Clients Out of $683,000Read the Press Release
CHICAGO — A Chicago investment advisor has been indicted on federal fraud charges for allegedly swindling three clients out of approximately $683,000.
DAVID SHELDON WELLS, 32, of Chicago, was charged with three counts of wire fraud in an indictment returned Wednesday in U.S. District Court in Chicago. Arraignment is set for today at 2:00 p.m. before U.S. Magistrate Judge Heather K. McShain.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Douglas Zloto, Special Agent-in-Charge of the U.S. Secret Service Chicago Field Office. Valuable assistance was provided by the U.S. Securities and Exchange Commission. The government is represented by Assistant U.S. Attorney Brian Havey.
According to the indictment, Wells worked as an investment advisor in the Chicago branch of a subsidiary of a Midwestern bank. In 2020 and 2021, Wells falsely represented to three clients, including two elderly men suffering from dementia, that he would invest their money in publicly traded companies. Based on the false representations, the clients sent him checks made payable to “Wayne and Stark,” which Wells claimed was a publicly traded company. In reality, Wayne and Stark was a shell company set up and solely controlled by Wells, the indictment states.
Wells used the clients’ funds for his personal use, including rent and unauthorized trading in high-risk options contracts, the indictment states. Wells lost or otherwise spent all of the clients’ funds, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Man Sentenced to Eight Years in Prison for Illegally Possessing Gun and Drugs in Chicago SuburbRead the Press Release
CHICAGO — A man has been sentenced to eight years in federal prison for illegally possessing a loaded semiautomatic handgun, cocaine, and heroin in a Chicago suburb.
QUINCY J. ARNOLD illegally possessed the gun and drugs on Oct. 17, 2020, in Bellwood, Ill. Bellwood Police officers pulled over Arnold’s vehicle for a traffic infraction near a mall parking lot. The officers discovered the loaded gun concealed under the floor mat of the driver’s seat, within reaching distance of Arnold. Officers further discovered in Arnold’s possession the cocaine and heroin, which were packaged for sale in more than 360 individual baggies. Arnold admitted in a plea agreement that he intended to distribute the narcotics to others.
Arnold had previously been convicted of multiple felonies in state court and was not legally allowed to possess a firearm.
Arnold, 49, of Bellwood, Ill., pleaded guilty last year to federal firearm and drug charges. U.S. District Judge Jorge L. Alonso imposed the sentence Tuesday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., 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 Jiminez Allen, Chief of the Bellwood Police Department. Assistant U.S. Attorney Charles W. Mulaney represented the government.
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. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm and drug offenses.
Justice Department Reaches $800,000 Settlement in Housing Discrimination Lawsuit Against the Village of Hinsdale, IllinoisRead the Press Release
The Justice Department announced today that the village of Hinsdale, Ill., has agreed to pay $800,000 to settle a lawsuit alleging that the village violated the Fair Housing Act when it refused to allow the operation of a sober living home for persons in recovery from drug and alcohol addiction in a residential neighborhood.
The settlement, which still must be approved by the U.S. District Court for the Northern District of Illinois, resolves a lawsuit that the Department filed in November 2020. This settlement also resolves a related suit brought by the sober living home’s owner and operator, Trinity Sober Living LLC.
“Individuals with disabilities, including those recovering from drug and alcohol addiction, should not be excluded from living in residential neighborhoods,” said John R. Lausch Jr., United States Attorney for the Northern District of Illinois. “Such discrimination by local governments is forbidden under the Fair Housing Act.”
“Local governments do not have the right to use zoning laws and restrictions as a vehicle to discriminate against people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Department of Justice is committed to vigorous enforcement of federal law to ensure that individuals in recovery have access to the housing and support they need to maintain their sobriety and lead productive lives.”
The Department’s lawsuit alleged that the village of Hinsdale violated the Fair Housing Act after it denied a reasonable accommodation request by Trinity Sober Living LLC to operate a sober living home with ten residents and a house manager in a residential neighborhood. The complaint alleged that, one day after Trinity requested an accommodation, the village sued Trinity in state court for violations of the zoning code, including that the home was a “commercial use” and would have more than three unrelated adults.
Under the settlement, the village will amend its zoning ordinance to comply with federal anti-discrimination laws, including permitting homes for persons with disabilities in residential districts, with the same size limitations applied to families of similar size, and implementing a reasonable accommodation policy. The village will also pay $790,000 in monetary damages to Trinity as well as a civil penalty of $10,000 to the United States. The village also agreed to take a number of other actions to guard against housing discrimination, including training village officials and employees about their obligations under federal law, designating a fair housing compliance officer and reporting periodically to the Justice Department.
The government is represented by Assistant U.S. Attorneys Kathleen Flannery and Patrick Johnson of the Northern District of Illinois, as well as attorneys from the Department of Justice’s Civil Rights Division.
The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-833-591-0291 or submit a report online at civilrights.justice.gov. Individuals may also contact HUD at 1-800-669-9777 or https://www.hud.gov/program_offices/fair_housing_equal_opp. Individuals may also report housing discrimination, and other forms of discrimination against persons with disabilities, to the U.S. Attorney’s Office in Chicago at (312) 353-5300.
California Attorneys Charged with Misappropriating Settlement Funds Intended for Relatives of Victims of Lion Air Flight 610Read the Press Release
CHICAGO — Two California attorneys were indicted today on federal fraud charges for allegedly misappropriating more than $3 million in settlement funds intended for relatives of victims killed in the crash of Lion Air Flight 610.
An indictment returned in U.S. District Court in Chicago charges attorneys THOMAS V. GIRARDI, 83, of Pasadena, Calif., and DAVID R. LIRA, 62, of Pasadena, Calif., both of whom worked for the California law firm Girardi Keese, with eight counts of wire fraud and four counts of criminal contempt of court. The indictment also charges a third defendant, CHRISTOPHER K. KAMON, 49, of Palos Verdes, Calif., and Encino, Calif., who worked as Girardi Keese’s head of accounting and finance, with the same offenses. Arraignments in federal court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., 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 Corey B. Rubenstein and Emily Vermylen.
“The substantial misappropriation alleged in this indictment compounded the grief and anguish of the clients who lost loved ones in the Lion Air crash,” said U.S. Attorney Lausch. “Attorneys who violate the trust of their clients and breach a fiduciary duty that is paramount to the practice of law must be held accountable.”
“The victims of this crime placed their faith in their attorneys during a time of great vulnerability,” said FBI SAC Wheeler. “Taking advantage of victims of tragedy is a despicable act, and we will continue to seek justice for anyone who takes advantage of innocent Americans in their hour of need.”
According to the indictment, Girardi and Lira, through Girardi Keese, represented five clients who were relatives of passengers killed in the 2018 crash in the Java Sea. Girardi Keese filed lawsuits in federal court in Chicago against the plane’s manufacturer, Boeing Co., and settled the suits in 2020. Boeing’s counsel wired the settlement funds to Girardi Keese’s trust account, with most of the money intended for the clients. The charges allege that Girardi, Lira, and Kamon misappropriated more than $3 million of the settlement funds by diverting the money for improper purposes, including paying the firm’s payroll and operating expenses, and funding settlements to other Girardi Keese clients, whose own settlement funds had been misappropriated by the firm.
Girardi, Lira, and Kamon fraudulently attempted to conceal their misappropriation from the clients, the indictment states. At one point they falsely told the clients that the Covid‑19 pandemic prevented the firm from distributing the settlement funds, while at other times they falsely claimed that “serious issues” had arisen with Boeing that delayed the distributions, the indictment states. The defendants made the false claims knowing Girardi Keese had already received the settlement funds from Boeing, the indictment states.
The indictment seeks forfeiture from the defendants in the amount of $3,069,500.
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. Each count of wire fraud is punishable by up to 20 years in federal prison, while the maximum penalty for each contempt count is determined by the Court.
Justice Department Announces Settlement with Logan Square Aluminum Supply over Lead ViolationsRead the Press Release
WASHINGTON – Today, the Justice Department and U.S. Environmental Protection Agency (EPA) announced a settlement with Logan Square Aluminum Supply Inc., resolving alleged violations of the federal Lead Renovation, Repair and Painting regulations, known as the RRP rule, at renovation projects Logan Square and its contractors performed in Chicago and Chicago suburbs.
Under the court settlement, Logan Square will implement a comprehensive program to ensure that its contractors are certified and trained to use lead-safe work practices to avoid creating lead dust during home renovation activities. Under a parallel administrative settlement agreement, Logan Square will also pay a $400,000 penalty, and perform $2 million of lead-based paint abatement work in lower-income properties located in Chicago and Chicago suburbs in communities with a higher incidence of childhood lead poisoning.
“Companies that renovate homes built before 1978 must ensure that they hire EPA-certified contractors and follow other EPA rules requiring lead safe work practices,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will take aggressive action against companies that do not take these important steps.”
“Lead exposure from lead-based paint continues to be a hazard for American families living in older homes, and children in those homes are particularly vulnerable,” said Larry Starfield, EPA Acting Assistant Administrator for the Office of Enforcement and Compliance Assurance. “This settlement requires Logan Square Aluminum Supply, Inc. to take necessary steps to ensure that it meets appropriate safety requirements in future renovation projects that may disturb lead-based paint.”
Renovation is any activity that disturbs painted surfaces and includes most repair, remodeling, and maintenance activities, such as electrical work, plumbing, carpentry and window replacement. Both Logan Square and its contractors are responsible for compliance with the RRP rule to protect the health and safety of families, especially children under the age of six who are most susceptible to lead hazards. For these projects, Logan Square must contract with only EPA-certified firms and renovators, ensure they maintain certification, use lead-safe work practices, and document their work with checklists during renovations.
Logan Square will add a link on its website to EPA’s content on lead-safe work practices. In addition, Logan Square will take action to respond to situations where a contractor is not operating in compliance with the RRP rule; investigate all reports of potential noncompliance; and ensure that any violations are corrected and reported to EPA.
EPA first discovered the alleged violations through customer complaints about a project performed in Evanston, Illinois. EPA learned that Logan Square frequently subcontracted work to uncertified firms and did not use lead-safe work practices, perform required post-renovation cleaning, provide the EPA-required lead-based paint pamphlets to occupants, or establish records of compliance. Logan Square also conducts business under other names, including Climate Guard Thermal Products Co. and Studio 41.
The consent decree was lodged in the U.S. District Court for the Northern District of Illinois. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. View the consent decree here.
Further information is available from the National Lead Information Center (800-424-LEAD) and online at www.epa.gov/lead. Available resources include additional information about the RRP program; information for contractors and property managers about program requirements; and downloadable lead-safety education materials.
To report a possible violation of the RRP Rule requirements, please visit EPA’s website.
Federal Indictment Accuses Suburban Chicago Man of Producing Child PornographyRead the Press Release
CHICAGO — A suburban Chicago man has been arrested on federal child pornography charges for allegedly enticing a minor to produce sexually explicit images.
TERCALO E. THOMAS, 32, of Park Forest, Ill., is charged with two counts of production of child pornography and one count of possession of an electronic device containing child pornography, according to an indictment returned in U.S. District Court in Chicago. Thomas is currently detained in law enforcement custody. He pleaded not guilty to the charges during his arraignment today before U.S. Magistrate Judge Gabriel A. Fuentes.
According to the indictment, Thomas produced the child pornography after inducing and enticing the minor to engage in sexually explicit conduct. He also possessed a cell phone that contained images of a prepubescent minor who had not attained 12 years of age, the indictment states.
The indictment was announced by John R. Lausch, Jr., 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 Peirson.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each production count is punishable by a minimum sentence of 15 years in federal prison and a maximum of 30 years. The possession count carries a maximum sentence of ten years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Chinese National Sentenced to Eight Years in Prison for Acting Within the U.S. as an Unregistered Agent of the People’s Republic of ChinaRead the Press Release
CHICAGO — A Chinese national was sentenced today to eight years in federal prison for acting illegally within the United States as an agent of the People’s Republic of China.
A jury in the Northern District of Illinois last year convicted JI CHAOQUN, 31, on one count of conspiracy to act as an agent of a foreign government, specifically the People’s Republic of China, without first notifying the Attorney General; one count of acting as an agent of the People’s Republic of China without first notifying the Attorney General; and one count of making a material false statement to the U.S. Army. U.S. District Judge Ronald A. Guzman imposed the sentence.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Matthew G. Olsen, Assistant Attorney General for National Security at the U.S. Department of Justice; and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Army 902nd Military Intelligence Group provided valuable assistance. The government was represented by Assistant U.S. Attorneys Vikas Didwania and Barry Jonas of the Northern District of Illinois, and Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Control Section.
Evidence presented at trial revealed that Ji worked at the direction of high-level intelligence officers in the Jiangsu Province Ministry of State Security, a provincial department of the Ministry of State Security for the People’s Republic of China. Ji, a Chinese citizen residing in Chicago, was tasked by Xu Yanjun, a Deputy Division Director within the Ministry of State Security, with providing biographical information on certain individuals for possible recruitment by the JSSD. The individuals included Chinese nationals who were working as engineers and scientists in the United States, some of whom worked for U.S. defense contractors. This tasking was part of an effort by the Jiangsu provincial department to obtain access to advanced aerospace and satellite technologies being developed by companies within the U.S. Xu was sentenced last year to 20 years in federal prison after being convicted in the Southern District of Ohio of conspiracy and attempting to commit economic espionage and theft of trade secrets.
In 2016, Ji enlisted in the U.S. Army Reserves under the Military Accessions Vital to the National Interest program, which authorized the U.S. Armed Forces to recruit certain legal aliens whose skills are considered vital to the national interest. In his application to participate in the MAVNI program, Ji falsely stated that he had not had contact with a foreign government within the past seven years. In a subsequent interview with a U.S. Army officer, Ji again failed to disclose his relationship and contacts with a foreign intelligence officer.
Evidence at trial further revealed that in 2018 Ji had several meetings with an undercover law enforcement agent who was posing as a representative of the Ministry of State Security. During these meetings, Ji explained that with his military identification, he could visit and take photos of “Roosevelt-class” aircraft carriers. Ji also explained that once he obtained his U.S. citizenship and security clearance through the MAVNI program, he would seek a job at the CIA, FBI, or NASA. Ji intended to perform cybersecurity work at one of those agencies so that he would have access to their databases, including databases that contained scientific research.
Chinese National Sentenced to Eight Years for Acting within the United States as an Unregistered Agent of the People’s Republic of ChinaRead the Press Release
A Chinese national was sentenced today to eight years in prison for acting illegally within the United States as an agent of the People’s Republic of China.
A jury in the Northern District of Illinois last year convicted Ji Chaoqun, 31, on one count of conspiracy to act as an agent of a foreign government, specifically the People’s Republic of China, without first notifying the Attorney General; one count of acting as an agent of the People’s Republic of China without first notifying the Attorney General; and one count of making a material false statement to the U.S. Army. U.S. District Judge Ronald A. Guzman imposed the sentence.
Evidence presented at trial revealed that Ji worked at the direction of high-level intelligence officers in the Jiangsu Province Ministry of State Security, a provincial department of the Ministry of State Security for the People’s Republic of China. Ji, a Chinese citizen residing in Chicago, was tasked by Xu Yanjun, a Deputy Division Director within the Ministry of State Security, with providing an intelligence officer with biographical information on certain individuals for possible recruitment by the JSSD. The individuals included Chinese nationals who were working as engineers and scientists in the United States, some of whom worked for U.S. defense contractors. This tasking was part of an effort by the Jiangsu provincial department to obtain access to advanced aerospace and satellite technologies being developed by companies within the U.S. Xu was sentenced last year to 20 years in federal prison after being convicted in the Southern District of Ohio of conspiracy and attempting to commit economic espionage and theft of trade secrets.
In 2016, Ji enlisted in the U.S. Army Reserves under the Military Accessions Vital to the National Interest program, which authorized the U.S. Armed Forces to recruit certain legal aliens whose skills are considered vital to the national interest. In his application to participate in the MAVNI program, Ji falsely stated that he had not had contact with a foreign government within the past seven years. In a subsequent interview with a U.S. Army officer, Ji again failed to disclose his relationship and contacts with a foreign intelligence officer.
Evidence at trial further revealed that in 2018 Ji had several meetings with an undercover law enforcement agent who was posing as a representative of the Ministry of State Security. During these meetings, Ji explained that with his military identification, he could visit and take photos of “Roosevelt-class” aircraft carriers. Ji also explained that once he obtained his U.S. citizenship and security clearance through the MAVNI program, he would seek a job at the CIA, FBI or NASA. Ji intended to perform cybersecurity work at one of those agencies so that he would have access to all their databases, including databases that contained scientific research.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney John R. Lausch Jr. 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.
The FBI investigated the case, with valuable assistance provided by the U.S. Army 902nd Military Intelligence Group.
Assistant U.S. Attorneys Vikas Didwania and Barry Jonas for the Northern District of Illinois, and Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Federal Judge Sentences Man to Nearly Eight Years in Prison for Illegally Possessing Loaded Handgun in ChicagoRead the Press Release
CHICAGO — A man has been sentenced to nearly eight years in federal prison for illegally possessing a loaded semiautomatic handgun and resisting police during a traffic stop in Chicago.
DEONTA CARSON, 26, of Chicago, illegally possessed the gun on the afternoon of March 2, 2020, in the Englewood neighborhood on Chicago’s South Side. Chicago Police officers pulled over Carson’s vehicle for having a broken taillight near the intersection of West 71st Street and South Morgan Street. Carson resisted officers’ commands to get out of the car, and then struggled with the officers when they tried to remove him. As one of the officers pulled Carson from the vehicle, the gun fell to the ground.
Carson had previously been convicted in state court of multiple felonies and was not legally allowed to possess a gun. He was on parole for a vehicular hijacking conviction at the time of the federal offense.
Carson pleaded guilty in the federal case to a charge of illegal firearm possession. U.S. District Judge Ronald A. Guzman imposed a prison sentence of seven years and eleven months after a hearing Jan. 19, 2023, in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., 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 David Brown, Superintendent of the Chicago Police Department.
“It is not acceptable for felons to carry guns under any circumstances,” Assistant U.S. Attorney Charles W. Mulaney argued in the government’s sentencing memorandum. “Had the officers not been so experienced or skilled, the struggle could have resulted in much greater harm to themselves or defendant.”
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Rockford Man Sentenced to Nearly Six Years in Prison for Illegal Firearm PossessionRead the Press Release
ROCKFORD — A Rockford man has been sentenced to nearly six years in federal prison for illegally possessing a firearm as a previously convicted felon.
U.S. District Judge Iain D. Johnston on Thursday sentenced BRANDON L. DISHMAN, 33, to 70 months in prison. Dishman pleaded guilty last year to a federal charge of illegal possession of a firearm.
On Dec. 21, 2020, Dishman possessed a loaded .45-caliber pistol while riding in a vehicle. The Rockford Police Department attempted to conduct a traffic stop of the vehicle. As it slowed down and stopped, Dishman exited the vehicle and fled on foot in a residential neighborhood. Dishman, ignoring officers’ commands to stop, dropped the gun as he ran. After a brief chase, Dishman was apprehended by the police and taken into custody. The loaded pistol was recovered in the front yard of a residence in the neighborhood.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; and Carla Redd, Chief of the Rockford Police Department. The government was represented by Assistant U.S. Attorney Michael Beckman.
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, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Man Sentenced to Nearly Six Years in Prison for Illegally Possessing Gun During Civil Unrest in ChicagoRead the Press Release
CHICAGO — A man has been sentenced to nearly six years in federal prison for illegally possessing a loaded semiautomatic handgun during a period of civil unrest in Chicago in 2020.
RICKY GREEN, 28, of Chicago, illegally possessed the gun on the night of May 31, 2020, in the Lake View neighborhood on Chicago’s North Side. Green and other individuals attempted to break into a Target store in the 3300 block of North Ashland Avenue. When Chicago Police officers arrived at the scene, Green and the others fled in vehicles. After a brief chase on Lincoln Avenue, the vehicle in which Green was riding became disabled. Green ran off on foot and placed a bag containing the gun behind a broom and dustpan in a residential gangway. He then jumped a fence and tried to hide under the stairs of a residence in the 1300 block of West Wellington Avenue, but was apprehended by police officers, who then discovered the bag with the gun in it.
Green had previously been convicted in state court of multiple felonies, including a firearm offense, and was not legally allowed to possess the gun. He was on parole for his most recent felony conviction at the time of the federal offense.
A jury last year convicted Green on a federal charge of illegal firearm possession. U.S. District Judge Manish S. Shah on Thursday imposed a prison sentence of five years and nine months.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and David Brown, Superintendent of the Chicago Police Department.
“The defendant made a calculated decision to carry the gun while committing another serious crime, attempted burglary,” Assistant U.S. Attorneys Corey B. Rubenstein and Sushma Raju argued in the government’s sentencing memorandum. “He brought that gun into the chaos accompanying the pervasive looting and vandalism. The defendant’s deliberate decision to use the cover of that historic crisis to engage in his armed offense is particularly reprehensible.”
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Two Suburban Chicago Police Officers Indicted on Federal Corruption ChargesRead the Press Release
CHICAGO — Two police officers in Phoenix, Ill., conspired to steal cash and drugs from occupants of vehicles during traffic stops in exchange for offering to withhold criminal charges or take other official actions, according to a federal indictment.
Patrol Officer ANTOINE LARRY and Sergeant JARRETT SNOWDEN served on the Phoenix Police Department. An indictment returned Thursday in U.S. District Court in Chicago alleges that Larry and Snowden engaged in a criminal conspiracy from 2020 to 2022. The pair conspired to steal cash, drugs, and other items from vehicle occupants by offering to reduce or withhold criminal charges, decline to tow the vehicles, or release the cars from impoundment, the indictment states. In some instances, Larry and Snowden agreed to sell stolen drugs to a dealer and then split the proceeds amongst themselves, the indictment states. To conceal their thefts, Larry and Snowden falsified police reports so that the reports did not reflect the seized items, the charges allege.
The indictment charges Larry, 46, of Bolingbrook, Ill., with conspiracy, extortion, and attempted extortion. Snowden, 34, of Lansing, Ill., is charged with conspiracy and attempted extortion. Arraignments in federal court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., 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 Sean J.B. Franzblau and Alexandra Morgan.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The conspiracy charge is punishable by a maximum sentence of five years in federal prison, while extortion and attempted extortion are each punishable by up to 20 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Chicago-Area Businesswoman Charged with COVID-Relief FraudRead the Press Release
CHICAGO – A Chicago-area businesswoman has been indicted on federal charges for allegedly fraudulently obtaining more than $440,000 in small business loans and grants under the federal Coronavirus Aid, Relief, and Economic Security Act and a State of Illinois pandemic-relief program.
KIMBERLY RAY-DUNCAN, 54, of South Holland, Ill., allegedly engaged in fraud related to the federal Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL), and the Illinois Back to Business Grant Program. An indictment returned in the Northern District of Illinois alleges that Ray-Duncan used the fraud proceeds to purchase, among other things, a Regal 35 Sport Coupe yacht, purses by Prada, Gucci, and Saint Laurent, red leather dog collars by Gucci, sunglasses by Burberry, Gucci, Giorgio Armani, and Prada, and scarves by MCM, Louis Vuitton, Saint Laurent, Gucci, and Prada.
The indictment charges Ray-Duncan with six counts of wire fraud, three counts of money laundering, and two counts of engaging in monetary transactions involving criminally derived property. Arraignment is set for Jan. 19, 2023, at 1:00 p.m., before U.S. Magistrate Judge Heather K. McShain.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The U.S. Small Business Administration participated in the investigation. The government is represented by Assistant U.S. Attorneys Maureen Merin and Anne L. Yonover.
Pursuant to the CARES Act, a PPP loan allows the interest and principal to be forgiven if businesses spend a certain amount of the proceeds on essential expenses, such as payroll and rent, while the EIDL Program provides loan assistance or grants to cover working capital and other operating expenses. Under the Illinois Department of Commerce and Economic Opportunity’s Back to Business Grant Program, small businesses could apply for grants to cover lost revenue due to economic disruptions related to the Covid-19 pandemic.
According to the indictment, Ray-Duncan applied for and obtained loans and grants for numerous companies that she purportedly operated, including the K Ray-Duncan Assembly Company and An AlKymAri Production LLC. Ray-Duncan made various false representations in her applications regarding the companies’ operations, number of employees, or revenue figures, the indictment states. Some of the purported businesses did not actually exist, the charges allege. Ray-Duncan attempted to substantiate the fraudulent representations by falsely preparing IRS forms and bank statements, the indictment states.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud and money laundering is punishable by up to 20 years in federal prison, while the maximum sentence for each monetary transaction count is ten years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Anyone with information about attempted fraud involving Covid-19 can report it to the Department of Justice by calling the National Center for Disaster Fraud at (866) 720-5721, or by filing an online complaint at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Man Indicted on Federal Racketeering Charge for Allegedly Murdering Teenage Girl to Increase Position in Violent Street GangRead the Press Release
CHICAGO — A man has been indicted on a federal racketeering charge for allegedly murdering a teenage girl to maintain and increase his position in a violent Chicago street gang.
PATRICK JOHNSON, 27, of Chicago, is charged with one count of murder in aid of racketeering. An indictment returned Thursday in U.S. District Court in Chicago accuses Johnson of murdering Veronica Lopez on May 28, 2016, for the purpose of maintaining and increasing Johnson’s position in the Milwaukee Kings street gang. Lopez, 15, was fatally shot while riding in a sport-utility vehicle on DuSable Lake Shore Drive in Chicago.
Johnson was arrested this morning and remains detained in federal custody.
The indictment and arrest were announced by John R. Lausch, Jr., 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 David Brown, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorneys Prashant Kolluri and Caitlin Walgamuth.
The indictment alleges that the Milwaukee Kings is a criminal organization whose members and associates engaged in narcotics trafficking and committed acts of violence, including murder and assault, to acquire and preserve the gang’s territory on the North Side of Chicago. Members of the gang intimidated rival gang members and others through acts and threats of violence, according to the indictment.
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. Murder in aid of racketeering is punishable by a mandatory sentence of life in prison, and the death penalty is also possible. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Former Payroll Manager for Chicago Museum Charged with Misappropriating More Than $2 MillionRead the Press Release
CHICAGO — The former payroll manager for a Chicago museum has been indicted on federal fraud charges for allegedly misappropriating more than $2 million in museum funds.
An indictment returned Thursday in U.S. District Court in Chicago accuses MICHAEL MAURELLO of fraudulently obtaining the museum funds from 2007 to 2020. Maurello caused the museum to deposit money into his personal bank accounts by designating the payments in the payroll system as having been made to other employees or former employees, the indictment states. When the museum’s assistant controller asked Maurello in January 2020 about one of the payments, Maurello falsely stated that the transaction had been a test of the payroll system, the indictment states. Maurello then edited and altered a report from the museum’s payroll system to conceal information about the misappropriated funds, including by falsely changing the employees’ names and the dates and dollar amounts of the payments, the indictment states.
The indictment charges Maurello, 56, of Beach Park, Ill., with two counts of wire fraud and two counts of bank fraud. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Corey B. Rubenstein.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of bank fraud is punishable by up to 30 years in federal prison, while each count of wire fraud carries a maximum of 20 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Federal Judge Sentences Man to More Than Five Years in Prison for Illegally Possessing Firearm in RockfordRead the Press Release
ROCKFORD — A federal judge has sentenced a Rockford man to more than five years in federal prison for illegally possessing a firearm in Rockford.
U.S. District Judge Iain D. Johnston on Friday sentenced MARCUS CLAY, 23, to five years and two months in prison. Clay pleaded guilty in September 2022 to a charge of illegal firearm possession. As a previously convicted felon, Clay was prohibited by federal law from possessing firearms. Clay admitted in a plea agreement that while in Rockford on Oct. 27, 2021, he possessed a loaded handgun with an extended magazine. The magazine was loaded with an additional 29 rounds of ammunition.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey L. Matthews, Acting 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. The government was represented by Special Assistant U.S. Attorney Theodora Anderson, a prosecutor with the Winnebago County State’s Attorney’s Office who is working with the U.S. Attorney’s Office under a federal grant to prosecute certain firearm offenses in federal court.
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, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Chicago Gang Member Sentenced to Nearly 5 Years in Federal Prison for Illegally Possessing Machine Gun and Shooting at Rival Gang MembersRead the Press Release
CHICAGO — A member of a Chicago street gang has been sentenced to nearly five years in federal prison for illegally possessing a machine gun and participating in a shootout with rival gang members on a city sidewalk.
WILLIE GLENN, 25, of Chicago, illegally possessed the firearm on June 21, 2021, while sitting in the driver’s seat of a stolen Infiniti sedan in the Auburn Gresham neighborhood on Chicago’s South Side. The .40-caliber handgun was equipped with a conversion device known as a “Glock switch” or “auto sear,” making it capable of automatically firing more than one shot with a single pull of the trigger. Glenn had previously been convicted in state court of a felony firearm offense and was prohibited by federal law from possessing the gun.
U.S. District Judge John Robert Blakey on Dec. 20, 2022, sentenced Glenn to 57 months in federal prison. In addition to the illegal firearm possession, Judge Blakey found that Glenn fired a shot during a shootout with rival gang members on Dec. 22, 2018. A man in the defendant’s group was wounded in the shootout, which occurred on a sidewalk in the East Beverly neighborhood on Chicago’s South Side.
The sentence was announced by John R. Lausch, Jr., 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 David Brown, Superintendent of the Chicago Police Department. The government was represented by Assistant U.S. Attorney Charles W. Mulaney.
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
U.S. Attorney’s Office Provides Update on Federal Prosecutions and Ongoing Strategies to Combat Violent Crime in ChicagoRead the Press Release
CHICAGO — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today provided an update on federal prosecutions and strategies to combat violent crime in Chicago and the surrounding area.
“A fundamental duty of our government is to keep people safe, and the U.S. Attorney’s Office is using every available law enforcement tool to do that,” said U.S. Attorney Lausch. “We are committed to investigating and prosecuting violent offenders and bringing quality, impactful cases to disrupt the cycle of violent crime in Chicago.”
The centerpiece of the Department of Justice’s violent crime reduction efforts continues to be Project Safe Neighborhoods (PSN). Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems and develop comprehensive solutions to address them. PSN is an evidence-based program that focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs to pursue lasting reductions in crime.
The U.S. Attorney’s Office in Chicago leads the Chicago Firearms Trafficking Strike Force, one of five Department of Justice cross-jurisdictional strike forces designed to disrupt illegal firearms trafficking and reduce gun violence. The U.S. Attorney’s Office collaborates with the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to stem the supply of illegally trafficked firearms and to identify patterns, leads, and potential suspects in violent gun crimes. The Chicago strike force’s efforts have been substantially enhanced by the Chicago Police Department’s (CPD’s) Gun Investigations Team.
“Firearms traffickers and straw purchasers enable violence,” said U.S. Attorney John R. Lausch, Jr. “The Chicago Firearms Trafficking Strike Force has strengthened collaboration between our federal, state, and local law enforcement partners and enhanced our longstanding efforts to hold accountable individuals or groups who illegally traffic firearms into Chicago.”
In addition to a sustained focus on prosecutions of federal firearm offenses, the U.S. Attorney’s Office endeavors to disrupt violent crime by seeking pre-trial detention for defendants who pose a danger to the community and pursuing appropriate prison sentences to deter dangerous individuals from continuing to cause violence in their communities.
Following up on activities most recently reported in May of this year, the U.S. Attorney’s Office remains active in fighting violent crime through enforcement actions, prosecutions, and community partnerships, as illustrated by the below examples from the past six months.
Enforcement Actions and Prosecutions
The U.S. Attorney’s Office works closely with U.S. law enforcement agencies, including ATF, Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), Postal Inspection Service (USPIS), Internal Revenue Service Criminal Investigation Division (IRS-CI), and U.S. Marshals Service (USMS), to investigate and prosecute a variety of violent crimes. State and local partners in this effort include CPD, Illinois State Police (ISP), Illinois Department of Corrections (IDOC), Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, Rockford Police Department (RPD), Winnebago County State’s Attorney’s Office, and other police departments and prosecutors’ offices throughout northern Illinois. The U.S. Attorney’s Office and many of these law enforcement agencies participate in the Organized Crime Drug Enforcement Task Forces Program (OCDETF), which identifies, disrupts, and dismantles the highest-level criminal networks by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies.
The primary focus of these collaborative law enforcement efforts is to investigate and prosecute gangs and other groups of individuals who work in concert to commit violent crimes, including murders, attempted murders, robberies, carjackings, drug trafficking, and firearms trafficking. In addition, enforcement efforts also identify for potential federal prosecution individual offenders who drive violence.
Firearm and violent crime investigations in Chicago have been bolstered by an important tool from ATF – the National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. Federal, state, and local law enforcement in Chicago have used NIBIN to help solve violent crimes and prosecute trigger-pullers and other gun offenders.
Racketeering and Gang-Related Prosecutions
“Combating the unacceptable level of gang violence in Chicago has been and will continue to be a top priority in our office,” said U.S. Attorney Lausch.
- After a two-month trial, a jury convicted the leader of the Wicked Town faction of the Traveling Vice Lords street gang and another member of the gang on racketeering conspiracy and firearm charges. The jury found that gang leader DONALD LEE, of Chicago, committed three murders and supplied the firearms used in three other killings, while TORANCE BENSON, of Chicago, committed a murder and three attempted murders. Lee faces a mandatory sentence of life in prison. Lee and Benson were among 13 defendants charged as part of a multi-year investigation. The other eleven defendants pleaded guilty prior to trial, with one being sentenced to 50 years in prison. The others are awaiting sentencing. ATF and CPD led the probe, with assistance from the FBI, IRS-CI, ISP, DEA, Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, and the Chicago High Intensity Drug Trafficking Area program (HIDTA), which addresses narcotics-related issues by collaborating with law enforcement and treatment and prevention partners.
- PIERRE ROBINSON, of Chicago, was convicted of committing murder in aid of racketeering. Robinson fatally shot a man in a convenience store on the South Side of Chicago to maintain and increase Robinson’s position in the “Evans Mob,” a violent street gang. Robinson faces a mandatory sentence of life in prison. ATF and CPD led the investigation.
- A member of the Four Corner Hustlers street gang was sentenced to 35 years in federal prison for engaging in a pattern of racketeering activity that included multiple murders, armed robberies, drug trafficking, and extortion. TREMAYNE THOMPSON, of Chicago, admitted that he fatally shot two victims after receiving instructions from a gang leader. Thompson was one of nine defendants convicted as part of an investigation led by ATF, HSI, and CPD.
Firearms Trafficking Prosecutions
“We are using every available federal law enforcement tool to continue to bring impactful cases that hold firearm traffickers accountable and reduce violent crime in Chicago,” said U.S. Attorney Lausch.
- JAMEL DANZY, of Hammond, Ind., was sentenced to two and a half years in prison for conspiring to “straw purchase” a handgun that was used to fatally shoot Chicago Police Officer Ella French and seriously wound her partner. Danzy bought the gun from a licensed dealer in Indiana on behalf of a convicted felon whom Danzy knew resided in Illinois and was not lawfully allowed to purchase a gun. The handgun was discovered by law enforcement at the scene of the shooting of the two officers. ATF and CPD investigated.
- A Freeport, Ill., woman pleaded guilty to firearm charges for “straw purchasing” multiple guns for a convicted felon whom she knew could not legally purchase the guns. FELICYA KNOX faces a maximum sentence of ten years in prison. ATF investigated the case, with assistance from the Stephenson County Sheriff’s Office and Freeport Police Department.
- ROBERTO PRIETO, of Chicago, was sentenced to ten years in prison for trafficking at least five firearms and illegally possessing guns as a previously convicted felon. ATF investigated.
- SCOTT TREECE, of Rockford, was sentenced to seven and a half years in prison for illegally trafficking at least ten firearms from Georgia to Chicago. Because Treece was a felon during this time, he used straw purchasers to purchase the guns, including co-defendant KYLE HALL, of Algonquin, Ill. Hall pleaded guilty and is awaiting sentencing. ATF led the probe.
- A federal indictment charged RICARDO LARREA, of Whiting, Ind., with conspiring to “straw purchase” 27 firearms in Indiana on behalf of a Chicago resident. Larrea falsely certified on federal forms that he was the actual buyer of the guns, knowing that the Chicago resident had identified which firearms he wanted and paid Larrea to buy them. ATF investigated.
- JAVAUGHN A. HIXSON, of Rockford, was sentenced to five and a half years in prison for illegally possessing four firearm “switch” devices. The device, also known as a “Glock switch,” is designed to convert a firearm into a machine gun capable of automatically firing more than one shot with a single pull of the trigger. The investigation was conducted by ATF, RPD, and the Winnebago County Sheriff’s Office.
- Machine gun dealer LEONARD D. JOHNSON, of Robbins, Ill., was sentenced to ten years in prison for unlawfully dealing handguns and “switch” devices in the Chicago area. A court-authorized search of Johnson’s residence turned up 117 “switch” devices and three handguns that had been converted into machine guns, as well as another handgun, a silencer, three extended magazines, and ammunition. ATF led the probe, with assistance from the Lansing, Ill., Police Department and Midlothian, Ill., Police Department.
- ARSHAD ZAYED, of Orland Hills, Ill., was charged with illegally selling 36 firearms, including personally manufactured “ghost guns” and machine guns. Many of the transactions occurred in a car wash that Zayed managed in the Chicago suburb of Matteson, Ill. The investigation was conducted by FBI, ATF, CPD, ISP, and IRS-CI.
- Two Indianapolis men – DEVANTE T. BROWN and COREY SARTIN – were charged with firearm violations for allegedly trafficking ten guns, including four semiautomatic rifles and two “ghost guns,” from Indianapolis to Chicago. The probe was led by ATF and CPD, with assistance from the Dolton, Ill., Police Department.
- Chicago resident ANTHONY PEREZ-FLORES was charged with trafficking more than a dozen guns, including a “ghost gun” and a machine gun, in Chicago. Perez-Flores was on parole for a state firearm conviction when he allegedly sold the guns to an undercover officer. ATF, CPD, and the Cook County Sheriff’s Office investigated.
Carjacking Prosecutions
“Our message to would-be carjackers is simple: Committing a senseless act of violence like carjacking will earn you a home in federal prison for a long time,” said U.S. Attorney John R. Lausch, Jr. “We are working closely with our law enforcement partners to pursue, prosecute, and detain violent carjackers.”
- MONTE HANDLEY, of Chicago, was charged with stealing a Nissan Sentra in the Archer Heights neighborhood on Chicago’s Southwest Side. A woman and a one-year-old child were passengers in the vehicle at the time of the alleged carjacking. FBI and CPD led the probe, with assistance from ISP.
- Two Chicago men – EDSON RESENDEZ and MAVERICK CELA – were charged with carjacking vehicles in the Chicago suburbs of Morton Grove, Ill., and Skokie, Ill. Resendez allegedly brandished a firearm during the carjackings. The probe was led by FBI, with assistance from the Morton Grove Police Department and Skokie Police Department.
- KEWAN A. TILLMAN, of Calumet City, Ill., was charged with carjacking a vehicle at gunpoint while two children were in the car. ATF investigated, with assistance from the Posen, Ill., Police Department.
- A federal grand jury indicted NOAH RANSOM, of Chicago, on carjacking and firearm charges for allegedly carjacking a rideshare driver at gunpoint in downtown Chicago. FBI led the probe, with assistance from the ISP and CPD.
- Chicago resident ELIAS QUINONES-FIGUEROA was sentenced to more than 12 years in prison for stealing a vehicle at gunpoint and striking a bicyclist while fleeing from police. FBI and CPD investigated, with assistance from the Cook County State’s Attorney’s Office.
- TRIMANE O. KIMBROUGH, of Chicago, was charged with brandishing a semiautomatic handgun and stealing a Mazda 6 from a victim in Chicago. The investigation was conducted by the FBI-led Violent Crimes Task Force, which includes the Cook County Sheriff’s Office, ISP, and CPD. The Northwestern University Police Department assisted the task force.
- Federal charges allege ALLEN CLAY, of Chicago, brandished a semiautomatic handgun and NARONN CAIN, of Chicago, brandished a semiautomatic rifle when the pair stole a Kia Optima from a victim in Chicago. The investigation was conducted by the FBI-led Violent Crimes Task Force and CPD.
Illegal Possession of Firearms Prosecutions
“Any felon thinking about picking up a gun in Chicago should expect to be prosecuted to the fullest extent of the law and face the possibility of going to federal prison for a long time,” said U.S. Attorney Lausch.
- KEJUAN CARR, of Chicago, was sentenced to more than four years in prison for illegally possessing a loaded handgun in Chicago’s Humboldt Park directly across the street from a children’s playground. Carr was on parole for a recent firearm conviction when he possessed the gun. FBI and CPD investigated, with assistance from IDOC.
- Heroin and fentanyl dealer LONDON GROVER, of Chicago, was sentenced to 14 years in prison for possessing a firearm to protect his drug dealing operation. ATF and CPD investigated. The case was prosecuted by the U.S. Attorney’s Office’s Gun Crimes Prosecution Team, which works collaboratively with federal and local law enforcement to enhance the prosecution of illegal firearm possession in certain police districts in Chicago.
- Rockford resident THOMAS BROOKS II was sentenced to eight years in prison for illegally possessing a machine gun loaded with 17 rounds of ammunition. ATF and RPD conducted the investigation. The case was prosecuted by Special Assistant U.S. Attorney Theodora Anderson, a prosecutor with the Winnebago County State’s Attorney’s Office who is working with the U.S. Attorney’s Office under a federal grant to prosecute certain firearm offenses in federal court.
- A Chicago man was charged with firearm and drug offenses for allegedly possessing a loaded handgun, cocaine, and fentanyl on a Chicago Transit Authority train. CPD officers boarded a CTA Green Line train in the city’s downtown Loop neighborhood and arrested TERRELL WEATHERS. FBI and CPD investigated.
- Convicted felon SHAZARIYAH F. HIBBETT, of Rockford, was sentenced to seven and a half years in prison for illegally possessing a loaded semiautomatic handgun after a traffic stop in Rockford. ATF and RPD led the probe.
- TYJUAN LIGHTHALL was sentenced to more than five years in prison for illegally possessing a loaded handgun in Chicago and fraudulently obtaining a small business loan under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The gun, which Lighthall unlawfully purchased from an individual in Indiana for $400, was equipped with an extended magazine capable of holding more than fifteen rounds of ammunition. ATF and the Evanston Police Department investigated the case.
- A Grundy County man was sentenced to 12 and a half years in prison for illegally possessing two handguns, three explosives, multiple magazines of ammunition, and drug paraphernalia. During a dispute a day earlier, JOHN FEENEY, of Minooka, Ill., used one of the firearms to shoot at an individual, striking the individual’s vehicle. The case was investigated by ATF and the Grundy County Sheriff’s Office.
- JULIAN ALMANZA, of Chicago, was sentenced to nearly four years in prison for illegally possessing a loaded handgun in Chicago’s Humboldt Park neighborhood. Almanza stood in the middle of a street and pointed the gun at multiple individuals during an altercation. ATF and CPD investigated, with assistance from the Cook County State’s Attorney’s Office.
- A man who was previously convicted of a 1993 kidnapping and murder was sentenced to nearly six years in prison for illegally possessing a loaded handgun during a traffic stop in Maywood, Ill. DARNELL LUCKETT, of Berwyn, Ill., also possessed ammunition, heroin, marijuana, a digital scale, and counterfeit cash. FBI investigated, with assistance from ISP.
- BRIAN STAFFORD, of Bellwood, Ill., was sentenced to more than 13 years in prison for illegally possessing two handguns and three assault rifles and dealing heroin and crack cocaine. The firearms had been stolen from a cargo train in Chicago in 2016. FBI led the probe, with assistance from ATF, Cook County Sheriff’s Office, Evergreen Park, Ill., Police Department, and Bolingbrook, Ill., Police Department.
- A man who illegally possessed a semiautomatic handgun in Evanston, Ill., and tried to flee from police was sentenced to nearly eight years in prison. DARIUS MORALES, of Evanston, was a passenger in a Jeep that led police on a high-speed chase through downtown Evanston until it crashed into a fence in the backyard of a residence. DEA led the probe, with assistance from ATF, Evanston Police Department, and Cook County State’s Attorney’s Office.
Other Significant Violent Crime Prosecutions
- A Chicago man was sentenced to nearly eight years in prison for using a machine gun to rob a law enforcement officer during an undercover firearms deal. With the assistance of aerial support, law enforcement after the transaction followed CORTEZ PRICE to a nearby residence and arrested him. ATF and CPD led the probe. U.S. Customs and Border Protection provided the aerial support.
- JOSEPH HAMMOND, of Chicago, was sentenced to nine and a half years in prison for attempting to fire a loaded gun at federal agents and task force officers while holding a toddler. Hammond pulled the trigger, but it misfired. ATF and CPD investigated.
- A federal judge sentenced FLOYD E. BROWN, of Springfield, Ill., to 55 years in prison for killing Special Deputy U.S. Marshal Jacob Keltner. Special Deputy Keltner was fatally wounded in 2019 when members of the U.S. Marshals Service Great Lakes Regional Fugitive Task Force and other law enforcement officers attempted to execute a warrant for Brown’s arrest at a Rockford hotel. Special Deputy Keltner served as a McHenry County Sheriff’s deputy and was a sworn member of the task force. FBI led the federal investigation, with assistance from ATF, USMS, RPD, McHenry County Sheriff’s Office, Winnebago County Sheriff’s Office, Bloomington, Ill., Police Department, Loves Park, Ill., Police Department, Lincoln, Ill., Police Department, Logan County Sheriff’s Office, and ISP.
- TIMOTHY O’DONNELL, of Chicago, was sentenced to nearly three years in prison for setting fire to a CPD vehicle during a period of civil unrest in downtown Chicago in 2020. O’Donnell set the fire while wearing a “Joker” mask that partially covered his face. FBI investigated, with assistance from CPD.
- A Chicago man was charged with shooting a Senior Inspector U.S. Marshal and his K9 partner during the execution of an arrest warrant. The Senior Inspector U.S. Marshal and K9 partner suffered non-life threatening injuries. The case was investigated by FBI and CPD, with assistance from USMS.
Drug Trafficking Prosecutions
The U.S. Attorney’s Office targets traffickers who bring illegal drugs into Illinois from other states or countries, with a focus on organizations or individuals who use guns, violence, and threats of violence to protect and promote their illegal businesses. The U.S. Attorney’s Office works directly with state’s attorney’s offices throughout the district to ensure that individuals trafficking drugs are charged with appropriate offenses in either federal or state court.
Public safety is also being threatened by unprecedented levels of opioid poisoning, misuse, and overdose. Opioids are a class of highly addictive drugs that includes heroin, fentanyl, and prescription painkillers such as oxycodone and hydrocodone. U.S. Attorney Lausch in 2019 created an Opioid Task Force for the purpose of combatting the growing number of unlawful distributions of controlled substances fueling the nation’s opioid crisis. This effort includes prosecuting the leaders of traditional drug trafficking organizations, as well as rogue health care providers and others who contribute to the misuse of opioids.
“We are actively attacking the opioid crisis from all investigative and prosecutorial angles,” said U.S. Attorney John R. Lausch, Jr.
- International drug trafficker LUIS EDUARDO GONZALEZ GARCIA was sentenced to 30 years in prison for partnering with Mexican drug cartels to purchase and transport thousands of kilograms of cocaine to Chicago and other parts of the U.S. DEA led the probe as part of an OCDETF operation.
- A multi-year drug trafficking investigation resulted in charges against ten individuals for allegedly conspiring to distribute at least 35 kilograms of fentanyl-laced heroin and crack cocaine on the West Side of Chicago. Law enforcement during the probe seized more than a kilogram of narcotics, as well as 13 firearms and more than $40,000 in suspected illicit proceeds. FBI, IRS-CI, and CPD conducted the investigation.
- RICHARD A. HUSBAND and WAYNE TOWNSEND, both of Chicago, were charged with selling fentanyl-laced heroin to individuals at the Jesse Brown VA Medical Center in Chicago. The U.S. Department of Veterans Affairs is leading this ongoing investigation.
- A suburban Chicago man was sentenced to seven years in prison for laundering illegal narcotics proceeds on behalf of drug traffickers in Mexico. HUAZHI HAN, of North Riverside, Ill., picked up approximately $1.5 million in drug money from others in the Chicago area, used the cash to purchase and re-sell electronic devices, and then sent the laundered money back to drug traffickers in Mexico. DEA investigated, with assistance from IRS-CI, CPD, HSI, and the U.S. Treasury Department’s Financial Crimes Enforcement Network.
- ROSEMARY MAYS, an office manager for a Chicago medical practice, was sentenced to a year in prison for using a doctor’s prescription pad to write more than 3,000 fraudulent prescriptions for hydrocodone, oxycodone, and other controlled substances. The case was investigated by DEA, FBI, and the U.S. Department of Health and Human Services, Office of Inspector General.
- RAYLOE JACKSON, of Maywood, Ill., was sentenced to more than ten years in prison for working with a Rockford-based narcotics supplier to traffic fentanyl and heroin. The investigation was conducted by a DEA-led task force, which included officers from the Crystal Lake, Ill., Police Department, Belvidere, Ill., Police Department, and Boone County, Ill., Sheriff’s Office. RPD assisted the task force.
- A man who failed to appear in federal court in Chicago before his 2009 drug trial was arrested in Panama and returned to the U.S. COSME CHACON was among four defendants indicted in 2007 for allegedly participating in a drug trafficking organization that transported heroin to Chicago from New York, Florida, and Texas. HSI and IRS-CI investigated the drug case. USMS, U.S. Department of State’s Diplomatic Security Service, and the Justice Department’s Office of International Affairs assisted in Chacon’s return to the U.S.
- A federal jury convicted two suburban Chicago men on conspiracy charges as part of a federal probe that disrupted a Mexico-to-Chicago drug pipeline. SHELDON MORALES, of Morton Grove, Ill., and EDUARDO SANTANA, of Skokie, Ill., conspired with a supplier in Mexico and two inmates in a Texas prison to traffic methamphetamine, fentanyl, and cocaine from Mexico to the Chicago suburbs. DEA and IRS-CI led the probe, with assistance from the Evanston Police Department.
- Suburban Chicago physician ELIZA DIACONESCU was charged with health care fraud for allegedly prescribing opioids to patients without a medical exam and fraudulently billing Medicare for the nonexistent treatment. The case was investigated by DEA, FBI, U.S. Department of Health and Human Services’ Office of Inspector General, and U.S. Department of Labor’s Office of Inspector General.
Community Partnerships
The PSN program continues to invest resources in violence-prevention initiatives. The PSN Chicago Task Force, which includes members from the U.S. Attorney’s Office, CPD, ATF, IDOC, Cook County State’s Attorney’s Office, and academic researchers, is designed to address gun violence in certain neighborhoods in Chicago with the highest violent crime rates through aggressive prosecution of violent offenders. The task force, which in 2018 expanded to include the city of Rockford, strengthens the relationship between the U.S. Attorney’s Office, CPD, Cook County State’s Attorney’s Office, RPD, and Winnebago County State’s Attorney’s Office.
The PSN Task Force dedicates federal grant funds to support crime prevention programs that are aligned with law enforcement’s strategy to address gun violence. Currently, PSN grant funds support Camp Hope, a crime prevention program in Rockford for at-risk juveniles who have experienced or witnessed domestic violence; Choose to Change, a program created by Children’s Home & Aid and Youth Advocate Programs in Chicago to engage youth who are heavily impacted by violence and trauma by connecting them with intensive advocate and wraparound support services and trauma-informed therapy; and Readi Chicago’s Reentry Program, a pilot program in Chicago jointly developed by Heartland Alliance and IDOC to provide pre-release and post-release support for individuals returning home from prison.
Members of the U.S. Attorney’s Office have also participated in offender notification meetings and youth outreach forums. These meetings and forums are still being held during the Covid-19 pandemic, including in a virtual environment, to maintain critical outreach to former offenders. Offender notification meetings provide an opportunity for individuals who have been convicted of a state or federal offense to make an informed choice not to engage in further criminal activity.
Researchers at Arizona State University found that youth outreach forums in Chicago have a positive influence on the offenders’ perception of police and help create an understanding that criminal activity results in a higher risk to return to prison. Researchers at Yale University found that ex-offenders who attend an offender notification meeting in Chicago are 30% less likely to commit a new offense than those who did not attend a meeting.
The youth forums assist teenagers to identify a path beyond criminal activity. They are conducted in partnership with CPD, the Cook County Juvenile Temporary Detention Center, and local social service agencies.
Businessman Sentenced to Nearly Five Years in Prison for Swindling Hospital in Connection with Attempted Purchases of Personal Protective EquipmentRead the Press Release
CHICAGO — A suburban Chicago businessman has been sentenced to nearly five years in federal prison for swindling millions from a hospital that paid him for scarce personal protective equipment in the early weeks of the Covid-19 pandemic.
DENNIS W. HAGGERTY, JR., 46, of Burr Ridge, Ill., pleaded guilty earlier this year to federal wire fraud and money laundering charges. U.S. District Judge John F. Kness on Monday imposed a 57-month sentence and ordered Haggerty to pay more than $1.9 million in restitution.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI. The government was represented by Assistant U.S. Attorney L. Heidi Manschreck.
Haggerty and two business partners in March 2020 formed a company called At Diagnostics Inc. to sell personal protective equipment. The company agreed to sell 500,000 N95 respirator masks to a hospital in Iowa for $2.495 million. Haggerty created an invoice to reflect the agreement and to instruct the hospital on where to wire the payment. Based on the invoice, the hospital on March 31, 2020, wired the money to a bank account that Haggerty falsely claimed was an At Diagnostics account, but which was actually the account of a different business solely controlled by Haggerty.
Haggerty spent part of the money for his personal benefit, including purchasing three luxury automobiles, paying nearly $189,000 to credit card companies, withdrawing more than $147,000 in cash, and paying $20,000 to a personal friend. At Diagnostics never delivered the masks, and when questioned about it by the hospital he falsely claimed that the bank had no record of the hospital’s payment being received. When his business partners questioned Haggerty about the whereabouts of the money, Haggerty altered a bank statement to make it appear as if the hospital’s funds had not been received.
Haggerty also engaged in similar conduct with a hospital in Illinois. After agreeing to sell one million N95 masks for nearly $4.5 million, the hospital requested that an initial payment be sent to an escrow account instead of the account Haggerty provided. When At Diagnostics failed to fulfill the hospital’s order, the money in escrow was returned. The hospital, however, later inadvertently wired more than $933,000 to Haggerty’s account in connection with a second order for 500,000 N95 masks that was never fulfilled. Haggerty spent some of this money for his personal use and did not return any of it.
Haggerty’s sentence included an enhancement for obstruction of justice. In his initial court filings in advance of sentencing, Haggerty claimed that he had relied on a bill of lading purportedly sent by a supplier of the N95 masks, and that he began spending the money from the first hospital believing it was owed to him from his business partners. Haggerty later withdrew those claims and admitted that he had created a fake bill of lading. He acknowledged that his conduct warranted the enhancement.
Man Sentenced to More Than 12 Years in Federal Prison for Illegally Possessing Gun and Drugs in ChicagoRead the Press Release
CHICAGO — A man has been sentenced to more than 12 years in federal prison for illegally possessing a loaded semiautomatic handgun and cocaine at a Chicago gas station.
JEREMY INGRAM, 30, of Chicago, illegally possessed the gun and drugs on July 11, 2019, in the Austin neighborhood on Chicago’s West Side. The firearm had a 16-round magazine attached to it, while the cocaine was packaged in multiple clear baggies. When Chicago Police officers approached Ingram, he attempted to flee in his car. Ingram continued to physically resist the officers as they apprehended and arrested him.
Ingram had previously been convicted of multiple felonies in state court and was not legally allowed to possess a firearm. He was on parole for his most recent felony conviction at the time of the federal offenses.
Ingram pleaded guilty earlier this year to federal firearm and drug charges. U.S. District Judge Robert W. Gettleman on Dec. 14, 2022, imposed a prison sentence of 12 years and seven months.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department. Assistant U.S. Attorney Jasmina Vajzovic represented the government.
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Former CEO of Subprime Auto Lender Indicted in $54.5 Million Bank Fraud SchemeRead the Press Release
CHICAGO — The former chief executive officer of a suburban Chicago subprime auto lending company has been charged in federal court with orchestrating a scheme that defrauded a bank of approximately $54.5 million.
JAMES COLLINS was the CEO of Evanston, Ill.-based Honor Finance LLC. From 2015 to 2018, Collins schemed with another top Honor executive to submit false information to the bank about a portfolio of loans made to subprime borrowers, in an effort to maintain a certain level of funding from a line of credit provided to Honor by the bank, according to an indictment returned in U.S. District Court in Chicago. The false information also allowed Collins and his co-schemer to increase the amount of funding they received from a trust established by Honor and the bank to securitize thousands of loans in Honor’s portfolio and sell them as bonds to investors, the indictment states. The indictment alleges that Collins selected delinquent vehicle loans for the trust that he knew were not eligible to be included in the portfolio because Honor and its affiliates had previously advanced money to the borrowers through the use of improper accounting entries. Collins hid the ineligibility of these loans from the bank, bond investors, and rating agencies, the indictment states.
As a result of Collins’s false representations and material omissions regarding the line of credit and the trust, the bank lost approximately $54.5 million, the indictment states.
The indictment charges Collins, 53, of Evanston, Ill., with 15 counts of bank fraud and two counts of securities fraud. Arraignment is scheduled for Dec. 19, 2022, at 10:00 a.m., before U.S. Magistrate Judge Beth W. Jantz.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Securities and Exchange Commission. The government is represented by Assistant U.S. Attorneys Matthew Getter and Paige Nutini.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of bank fraud is punishable by up to 30 years in federal prison, while each securities fraud count carries a maximum of 20 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Drug Trafficker Sentenced to Seven Years in Prison for Operating Cocaine Delivery Service in Chicago AreaRead the Press Release
CHICAGO — A drug trafficker who conspired with his father and several others to operate a cocaine delivery service in the Chicago area has been sentenced to seven years in federal prison.
TONY J. CAYUELA, also known as “Tone Kapone,” 43, of Chicago, operated a drug trafficking organization that in 2018 distributed cocaine to hundreds of customers in the Chicago area. Tony J. Cayuela packaged wholesale quantities of cocaine into one-gram bags for retail sale and dispatched drivers to complete deliveries to customers. One of the drivers was Tony Cayuela’s father, TONY F. CAYUELA, 68, of Chicago.
Federal law enforcement shut down the drug trafficking organization during a multi-year investigation known as “Operation Flawed Deal.” During the probe, authorities seized multiple bank accounts, more than a kilogram of cocaine, a Mercedes G63 sport-utility vehicle, and two handguns. All 18 defendants charged in the investigation, including the Cayuelas, pleaded guilty and admitted their roles in the trafficking operation. In addition to the drug conspiracy, Tony J. Cayuela also pleaded guilty to a money laundering charge.
U.S. District Judge Jorge L. Alonso sentenced Tony J. Cayuela on Dec. 6, 2022. The other 17 defendants were previously sentenced, including ANEES USMANI, also known as “Ace,” of Chicago, who received eight years in prison.
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 by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. Valuable assistance was provided by the Chicago Police Department, Evanston, Ill., Police Department, Skokie, Ill., Police Department, Lincolnwood, Ill., Police Department, Palatine, Ill., Police Department, and Des Plaines, Ill., Police Department. Assistant U.S. Attorney Charles W. Mulaney represented the government.
“The convictions and federal prison sentences in this operation should serve as a warning to those who distribute poison in our communities: We will prosecute you to the fullest extent of the law,” said U.S. Attorney Lausch. “Our federal and local law enforcement partners in this operation performed exemplary work to dismantle a significant drug trafficking organization.”
“Operation Flawed Deal should serve as a beacon of hope to our community, a message that we won't tolerate drugs in our neighborhoods, and those who disobey the law will be brought to justice,” said FBI Acting SAC Morales. “The FBI is honored to work with our state, local, and federal partners to protect the American people every day.”
“This sentencing signals an important victory for the American public,” said IRS-CI SAC Campbell. “The role of IRS Criminal Investigation in narcotics investigations is to follow the money and financially disrupt and dismantle major drug trafficking organizations. One of the government's most powerful weapons is the ability to seize the assets associated with narcotics-related crime. We are proud to work hand-in-hand with our law enforcement partners to bring these criminals to justice.”
U.S. Navy Veteran Indicted for Allegedly Swindling Navy Members in Investment Fraud SchemeRead the Press Release
CHICAGO — A United States Navy veteran has been indicted on federal criminal charges for allegedly swindling retired and active-duty Navy members in an investment fraud scheme.
ROBERT L. MURRAY, JR, 43, of Chicago, was charged with four counts of wire fraud in an indictment returned Monday in U.S. District Court in Chicago. Arraignment is set for Dec. 16, 2022, at 11:30 a.m. before U.S. District Judge Manish S. Shah.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Securities and Exchange Commission. The government is represented by Assistant U.S. Attorney Brian Havey.
The indictment alleges that after retiring from the Navy, Murray occasionally traded securities online from his residence. He later founded an investment fund called Deep Dive Strategies LLC, which purported to invest in publicly traded securities. Murray solicited investors, including retired and active-duty Navy members, by portraying himself on social media as a skilled and successful options trader with an effective algorithm for trading securities, the indictment states.
The indictment alleges that Murray failed to invest or trade with all of the money provided to him by investors, instead using a portion of their funds to pay his personal expenses, including shopping, restaurant, and travel expenses. With the investor funds that Murray did use to conduct trades, he lost most of those funds by placing a highly risky bet on the “meme stock” GameStop, the indictment alleges. When investors later requested an accounting of their funds, Murray disregarded or refused their requests, the indictment states.
As a result of the scheme, investors lost all of the funds they entrusted to Murray to invest on their behalf, an amount totaling more than $342,000, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Man Sentenced to More Than 8 Years in Prison for Illegal Firearm Possession and Attempted MurderRead the Press Release
CHICAGO — A man has been sentenced to more than eight years in federal prison for illegally possessing a firearm and using it to shoot at individuals on Christmas morning in 2019.
Shortly after 11:15 a.m. on Dec. 25, 2019, RASHID JACKSON fired three shots from a semiautomatic handgun at individuals in the middle of a residential street in Chicago’s South Shore neighborhood. CPD officers patrolling the area after the shooting arrested Jackson approximately half a block from the shooting scene.
Jackson, 27, of Chicago, pleaded guilty earlier this year to a charge of illegal possession of a firearm by a convicted felon. Jackson had previously been convicted of multiple felony offenses in state court and was prohibited by federal law from possessing a firearm. U.S. District Judge Virginia M. Kendall on Monday imposed a 100-month prison sentence after finding that Jackson’s actions in the Christmas shooting constituted attempted second-degree murder.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI, and David Brown, Superintendent of the Chicago Police Department. The government was represented by Assistant U.S. Attorney Cornelius A. Vandenberg.