Northern District of Illinois
Press releases recorded for this federal judicial district.
Indiana Man Sentenced to Two and a Half Years in Federal Prison for Conspiring to “Straw Purchase” Firearm Used to Fatally Shoot Chicago Police Officer Ella FrenchRead the Press Release
CHICAGO — An Indiana man was sentenced today to two and a half years in federal prison for conspiring to “straw purchase” a handgun that was later used to fatally shoot Chicago Police Officer Ella French and seriously wound her partner.
JAMEL DANZY purchased the semiautomatic handgun at a federal firearms dealer in Hammond, Ind., on March 18, 2021, and falsely certified on the required forms that he was the actual buyer. Danzy bought the gun at the request of an individual whom Danzy knew resided in Illinois and was not lawfully allowed to purchase a firearm due to a felony criminal conviction. Danzy provided the firearm to the Illinois resident shortly after the purchase.
Officer French and her partner were shot on Aug. 7, 2021, during a traffic stop of a vehicle on the South Side of Chicago. The handgun purchased by Danzy was recovered by law enforcement at the scene of the shooting.
Danzy, 30, of Hammond, Ind., pleaded guilty earlier this year to a charge of conspiracy to violate federal firearm laws, including knowingly transferring and giving a firearm to an out-of-state resident, knowingly making a false written statement to acquire a firearm, and knowingly disposing of a firearm to a convicted felon.
U.S. District Judge Robert W. Gettleman imposed the 30-month sentence 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; 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. The government was represented by Assistant U.S. Attorney Prashant Kolluri.
“The tragic consequences of August 7, 2021, provide a vivid example of how putting guns into the wrong hands enables the violence that follows,” said U.S. Attorney Lausch. “The passionate and thoughtful victim impact statements presented at today’s sentencing hearing demonstrate the compelling need for stiff prison sentences to deter this conduct. Straw purchasing is not a victimless crime. Deterrence requires enforcement, and our office will continue to use every available federal tool to prosecute straw purchasers and hold them accountable.”
“This tragedy would have been avoided had the defendant not purchased a firearm on behalf of someone who cannot lawfully possess one,” said ATF Acting SAC Matthews. “Investigating trafficking schemes such as straw purchasing will remain a priority for our agents, who partner every day with the Chicago Police Department to ensure illegal firearms are removed from our community.”
Disrupting illegal firearms trafficking is a centerpiece of the Chicago Firearms Trafficking Strike Force, the Department of Justice’s cross-jurisdictional strike force aimed at reducing gun violence. As part of the Chicago Strike Force, the U.S. Attorney’s Office collaborates with ATF, CPD, and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.
Illinois Attorney Charged with Scheming to Take Control of Medical Device Company Through FraudRead the Press Release
CHICAGO — An Illinois attorney has been indicted on federal criminal charges for allegedly waging a multi-year campaign to take control of a medical device company through fraud.
MARK ALAN SCHWARTZ, 61, of Dorado, Puerto Rico, is charged with six counts of wire fraud and two counts of aggravated identity theft, according to an indictment returned in U.S. District Court in Chicago. Each count of wire fraud is punishable by up to 20 years in federal prison, while each count of aggravated identity theft is punishable by a mandatory two-year sentence. Schwartz pleaded not guilty Tuesday at his arraignment before U.S. Magistrate Judge Young B. Kim.
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. Substantial assistance was provided by the U.S. Trustee Program and the U.S. Secret Service. The government is represented by Assistant U.S. Attorney Brian Havey.
According to the charges, Schwartz in 2012 partnered with a doctor to form a company to develop, market, and sell a surgical product the doctor had invented. The doctor served as chairman of the company’s board of directors, while Schwartz was its chief executive officer and secretary. Schwartz and the doctor later split the company into two entities, incorporating them in Puerto Rico, and embarked on a funding drive that raised more than $10 million from outside investors, including family members, friends, and colleagues in Illinois.
According to the indictment, a dispute arose between Schwartz and the doctor, resulting in Schwartz’s termination. Schwartz refused to accept his termination and relinquish control of assets, records, and bank accounts to which he had access, the indictment states. Schwartz sought to take over the companies through various fraudulent methods, including making misrepresentations to banks, using the doctor’s identity to open bank accounts without his knowledge, fabricating company records, arbitrarily issuing valuable shares of stock to himself, filing false civil lawsuits, and intimidating the doctor and his family through belligerent and threatening confrontations.
The indictment alleges that after Schwartz’s termination, he transferred more than $3.9 million from a corporate bank account to accounts he controlled in an effort to coerce the doctor to reinstate Schwartz as CEO and surrender control of the company to Schwartz.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
Federal Judge Sentences South Beloit Man to 14 Years in Prison on Child Pornography ChargesRead the Press Release
ROCKFORD — A South Beloit, Ill., man was sentenced today to 14 years in federal prison for possessing and transporting child pornography.
DAVID WITTWER, 52, pleaded guilty earlier this year to possessing a computer and cell phone containing more than 600 images and videos of child pornography, including images of prepubescent minors engaged in sexually explicit conduct. Wittwer also posted images of child pornography to a website.
U.S. District Judge Iain D. Johnston imposed the sentence and ordered that it be followed by 15 years of court-supervised release.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and R. Sean Fitzgerald, Acting Special Agent-in-Charge of the Chicago office of Homeland Security Investigations. The South Beloit Police Department and the Winnebago County Sheriff’s Office provided valuable assistance. The government was represented by Assistant U.S. Attorney Michael D. Love.
Two Brothers Charged in Federal Court with Robbing Armored Truck at Gunpoint on HalloweenRead the Press Release
CHICAGO — Two brothers have been charged in federal court with robbing more than $1 million from an armored truck and automated teller machine in a Chicago suburb on Halloween.
CORRIE SINGLETON, 21, and DARRELL SINGLETON, 18, both of South Holland, Ill., are charged with robbery, bank larceny by assault, and firearm offenses, according to an indictment returned in U.S. District Court in Chicago. Corrie Singleton is in law enforcement custody. His arraignment is set for Dec. 15, 2022, at 3:15 p.m., before U.S. Magistrate Judge Jeffrey Cole. An arrest warrant has been issued for Darrell Singleton. A third alleged robber – a juvenile – was arrested and charged in state court.
The charges were 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 Lansing, Ill., Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives provided valuable assistance. The government is represented by Assistant U.S. Attorney Simar Khera.
According to the indictment and criminal complaints filed in the case, the robbery occurred shortly after 10:45 a.m. on Oct. 31, 2022, while a Brink’s security courier was refilling an ATM at a bank in the 16700 block of Torrence Avenue in Lansing. Robbers brandished handguns and stole a gun and a bag of money from the courier, as well as cash from the ATM, the charges allege. They then forcibly dragged the courier into the armored truck and ordered her to open inner compartments and hand over bags of money, the charges allege. The robbers stole approximately $121,824 from the courier and ATM, and approximately $904,132 from the armored truck.
After the heist, the robbers fled in a vehicle, with law enforcement in pursuit. The robbers’ vehicle crashed into another car near a ramp to Interstate 80 and the robbers fled on foot. Corrie Singleton and the juvenile were arrested, and much of the stolen money was recovered from their vehicle, the charges state.
The public is reminded that an indictment is not evidence of guilt. 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 charges in the indictment are punishable by a mandatory minimum sentence of seven years in federal prison and a maximum of 45 years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
If you have information as to the current whereabouts of Darrell Singleton, you are encouraged to contact the FBI Chicago Field Office at (312) 421-6700 or https://tips.fbi.gov.
Former Clerk for Chicago Transit Authority Retirement Plan Charged with Fraudulently Obtaining More Than $350,000 in Plan FundsRead the Press Release
CHICAGO — A former clerk for the Retirement Plan for Chicago Transit Authority Employees has been indicted on federal charges for allegedly fraudulently obtaining more than $350,000 in Plan funds.
AYANNA NESBITT created and obtained approval for fraudulent payment requests of various retirement benefits, including death benefits and pension contribution refunds, to purported CTA retirees or their beneficiaries, according to an indictment returned Thursday in U.S. District Court in Chicago. The payment requests contained false and fraudulent representations about the purported recipients’ identities and entitlement to the payments, the indictment states. Nesbitt either accepted the fraudulently obtained funds in accounts she controlled or else had the money paid to others and then transferred to Nesbitt, the charges allege.
From 2019 to 2021, Nesbitt fraudulently created approximately 43 false payment requests, defrauding the Plan of approximately $356,934, the indictment states.
The indictment charges Nesbitt, 50, of Chicago, with five counts of wire fraud. Arraignment is set for Dec. 8, 2022, at 1:30 p.m., before U.S. District Judge Matthew F. Kennelly.
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. The government is represented by Assistant U.S. Attorney Christopher K. Veatch.
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.
Suburban Chicago Man Sentenced to 25 Years in Prison for Producing Child PornographyRead the Press Release
CHICAGO — A suburban Chicago man has been sentenced to 25 years in federal prison for taking dozens of sexually explicit photographs of a three-year-old child.
MARCOS GERMAN MENDEZ, 35, of Rosemont, Ill., pleaded guilty earlier this year to a federal child pornography charge. U.S. District Judge Mary M. Rowland imposed the sentence Wednesday after a hearing in federal court in Chicago.
Mendez admitted in a plea agreement that on two occasions in 2015 he took more than 60 sexually explicit photographs of the child and molested her while she appeared to be sleeping. Mendez saved the images on his iPhone, and in 2016 he fled to Mexico. He was later arrested and extradited to the United States.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and R. Sean Fitzgerald, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations. Valuable assistance was provided by HSI’s Mexico City office; FBI Chicago Field Office; U.S. Customs and Border Protection; U.S. Postal Service; Cook County Sheriff’s Office; and U.S. Marshals Service. The government was represented by Assistant U.S. Attorney Misty N. Wright.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Chicago Man Sentenced to Nearly Eight Years in Federal Prison for Robbing Undercover Law Enforcement Officer During Gun DealRead the Press Release
CHICAGO — A Chicago man has been sentenced to nearly eight years in federal prison for using a machine gun to rob a law enforcement officer during an undercover firearms transaction.
CORTEZ PRICE arranged to sell a handgun equipped with a “switch” device to the undercover officer on May 2, 2022, in a drug store parking lot in the Greater Grand Crossing neighborhood on Chicago’s South Side. Upon arriving at the meeting, Price got into the front seat of the officer’s vehicle and accepted $1,900 in cash from the officer. Instead of handing over the firearm, Price inserted high-capacity ammunition into it and racked the slide. He then got out of the vehicle with the money and the loaded gun and fled the area. With the assistance of aerial support, law enforcement followed Price to a nearby residence and arrested him.
Price had previously sold three firearms to the undercover officer and stated in social media communications that he engaged in numerous other negotiations to buy, sell, or arrange the sale of firearms. The “switch” device on the gun Price possessed during the robbery converted the firearm into a fully automatic machine gun.
Price, 24, pleaded guilty earlier this year to federal firearm charges. U.S. District Judge Robert W. Gettleman imposed a 93-month prison sentence after a hearing Wednesday in federal court in Chicago.
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. Substantial assistance was provided by U.S. Customs and Border Protection.
“By individually participating in violent armed conduct and trafficking firearms to others, defendant became part of one of the district’s most pressing crime problems,” Assistant U.S. Attorney Brian Hayes argued in the government’s sentencing memorandum. “The toll that gun violence inflicts on individuals and neighborhoods in Chicago is inescapable to anyone residing in this district.”
Disrupting illegal firearms trafficking is the focus of the Department of Justice’s Chicago Firearms Trafficking Strike Force. As part of the strike force, the U.S. Attorney’s Office collaborates with ATF, CPD, and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.
Holding illegal firearm possessors accountable through federal prosecution is also a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, 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 Cook County Land Bank Authority Employee Charged in Scheme to Fraudulently Purchase and Resell PropertiesRead the Press Release
CHICAGO — A former employee of the Cook County Land Bank Authority used “straw buyers” to fraudulently purchase and resell properties from the agency on his behalf, according to a federal fraud charge filed by the U.S. Attorney’s Office in Chicago.
MUSTAFAA SALEH, 36, of Chicago, is charged with one count of wire fraud. The charge carries a maximum sentence of 20 years in federal prison. Arraignment in U.S. District Court in Chicago has not yet been scheduled.
The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Machelle L. Jindra, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; and John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Office of Special Inspector General for Troubled Asset Relief Program, IRS Criminal Investigation Division, Cook County Office of Independent Inspector General, and the Federal Housing Finance Agency’s Office of Inspector General. The government is represented by Assistant U.S. Attorneys Sean J.B. Franzblau, Brian Netols, and Kirsten Moran.
Saleh worked as an asset manager for the CCLBA, a governmental entity that promoted the redevelopment and reuse of vacant, foreclosed, abandoned, and tax delinquent real estate by acquiring and transferring the property to private ownership. The CCLBA sold the real estate at below-market rates and prohibited the buyers from selling or renting a property until the CCLBA was satisfied that the buyer had adequately improved it. CCLBA employees were prohibited from purchasing a property from the agency unless it would be used for the employee’s primary residence.
According to the criminal information, Saleh from 2016 to 2021 used nominee or “straw” buyers to fraudulently purchase six properties from the CCLBA on Saleh’s behalf and thereafter redeveloped, resold, and otherwise used the properties for Saleh’s financial benefit. The properties were located in Chicago and the nearby suburbs of Oak Lawn and Midlothian, the information states.
In addition to the alleged property fraud, the information also accuses Saleh of fraudulently obtaining maintenance work from the CCLBA. Saleh in 2016 formed a property maintenance company called Evergreen Property Services and directed another individual to pose as its owner, the information states. Over the next three years, Saleh caused the CCLBA to contract with Evergreen and pay it more than $1 million for property maintenance services. CCLBA employees were prohibited from having a financial interest in property maintenance companies contracting with the agency.
The public is reminded that a charge is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Freeport Woman Guilty of “Straw Purchasing” Firearms on Behalf of Convicted FelonRead the Press Release
ROCKFORD — A Freeport, Ill., woman admitted in federal court today that she “straw purchased” multiple firearms for a convicted felon whom she knew could not legally purchase the guns.
FELICYA KNOX, 31, pleaded guilty to making false statements in connection with the acquisition of firearms. Knox faces a maximum sentence of ten years in federal prison. Sentencing is set for May 10, 2023, at 9:00 a.m., before U.S. District Judge Philip G. Reinhard in Rockford.
Knox admitted in a plea agreement that on multiple dates she knowingly made false and fictitious written statements to a firearms dealer in connection with the acquisition of the firearms. She then transferred those guns to a known felon whom Knox knew could not legally purchase or possess them.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. The Stephenson County Sheriff’s Office and the Freeport Police Department assisted in the investigation. The government is represented by Assistant U.S. Attorney Jessica S. Maveus.
Disrupting illegal firearms trafficking is the focus of the Department of Justice’s Chicago Firearms Trafficking Strike Force. As part of the strike force, the U.S. Attorney’s Office collaborates with ATF and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.
Holding firearm offenders accountable through federal prosecution is also a centerpiece of Project Safe Neighborhoods. 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 Convicted of Robbing Banks in Rockford and BelvidereRead the Press Release
ROCKFORD — A federal jury has convicted a Rockford man of robbing banks in Rockford and Belvidere last year.
DEMONTRION DESHAN PHILLIPS, 28, stole $5,930 in a robbery of Midland States Bank, 1700 N. Alpine Rd. in Rockford, on Apr. 7, 2021, and $4,408 in a robbery of Midland States Bank, 600 S. State St. in Belvidere, on May 3, 2021.
After a four-day trial in federal court in Rockford, the jury on Thursday found Phillips guilty of both counts of bank robbery. Phillips faces a maximum sentence of 40 years in federal prison and a total fine of up to $500,000, plus restitution. U.S. District Judge Iain D. Johnston set sentencing for March 16, 2023, at 1:30 p.m.
The conviction 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; Carla Redd, Chief of the Rockford Police Department; and Shane Woody, Chief of the Belvidere Police Department. The government is represented by Assistant U.S. Attorneys Talia Bucci and Vincenza L. Tomlinson.
Evidence at trial showed that Phillips entered the banks posing as a legitimate customer. After handing a deposit slip to the teller, Phillips announced a robbery and demanded money. In the Belvidere robbery, Phillips threatened a teller by saying, “Don’t make me come over the counter,” after the teller did not give Phillips as much money as he demanded.
Three days after the Rockford robbery, law enforcement executed a search warrant at Phillips’s residence in Rockford and found $5,090 in cash hidden in a sock. The cash included numerous bills that were identified by serial numbers as having been stolen from the banks during the two heists.
Phillips committed the robberies while on court-supervised release following a prior federal conviction for robbing two banks in Rockford in 2017.
International Drug Trafficker Sentenced to 30 Years in Federal Prison for Transporting Thousands of Kilograms of Cocaine to United StatesRead the Press Release
CHICAGO — An international drug trafficker who partnered with Mexican drug cartels to purchase and transport thousands of kilograms of cocaine to Chicago and other parts of the United States has been sentenced to 30 years in federal prison.
LUIS EDUARDO GONZALEZ GARCIA established a sophisticated network of warehouses and front companies posing as legitimate businesses to distribute the cocaine and launder millions of dollars in proceeds. The warehouses were located in Chicago and the nearby suburbs of Naperville, Arlington Heights, and Plainfield, as well as in Texas and Georgia. At Gonzalez Garcia’s direction, the warehouse operators set up front companies and registered them with local governments as if they were legitimate businesses. The companies, which claimed to sell furniture, snack food, laundry detergent, or other items, often operated their own websites and hired employees to conceal the distribution of cocaine through the warehouses. The drugs and cash were primarily concealed in box pallets containing the types of goods the front companies purported to sell and then transported from Mexico on semi-trailer trucks driven by unwitting drivers. A “dirty” pallet in a typical shipment could contain up to 100 kilograms of cocaine or up to $1.5 million in cash.
From 2012 to 2017, Gonzalez Garcia was responsible for the distribution of thousands of kilograms of cocaine throughout the U.S. and the laundering of more than $50 million in narcotics proceeds.
Gonzalez Garcia, 55, of Monterey, Mexico, pleaded guilty earlier this year to federal drug conspiracy and money laundering charges. In addition to the prison sentence, U.S. District Judge Ronald A. Guzman on Nov. 16, 2022, fined Gonzalez Garcia $1.5 million.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Division of the U.S. Drug Enforcement Administration.
This 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.
“By successfully laundering tens of millions of drug proceeds back down to himself and his cartel partners in Mexico, defendant not only undoubtedly enriched himself but also enriched the Mexican drug cartels – some of the most dangerous criminal organizations in the world,” Assistant U.S. Attorney Sean J.B. Franzblau argued in the government’s sentencing memorandum. “Anyone who is considering partnering with the cartels to move their products from Mexico to the streets of this country must know that they will face the severest of consequences.”
Unlicensed Medical Assistant Convicted in $6 Million Fraud ConspiracyRead the Press Release
A federal jury convicted an Illinois woman yesterday for conspiring to defraud Medicare of over $6 million.
According to court documents and evidence presented at trial, Rhonda Sutton, 58, of Matteson, worked as an unlicensed medical assistant for a physician in Chicago and surrounding areas from at least 2009 until at least 2012. In this position, Sutton conspired with others, including the owners of two home health care companies, to fraudulently certify Medicare beneficiaries for home health services for which those beneficiaries did not qualify.
Specifically, Sutton forged her physician employer’s signature on certification forms and supporting documentation, which caused Medicare beneficiaries to be enrolled in over 2,000 episodes of home health care at A&Z and Dominion home health agencies, both located in Lansing, Illinois. Sutton provided the forged physician forms to A&Z and Dominion, which enabled A&Z and Dominion to submit claims to Medicare for services that the beneficiaries did not need and were not qualified to receive. The owners of A&Z and Dominion paid Sutton kickbacks in exchange for the forged physician forms. A&Z and Dominion received over $6 million from Medicare due to Sutton’s fraudulent conduct.
Sutton was convicted of conspiracy to commit health care fraud. She is scheduled to be sentenced on March 16, 2023 and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois; Assistant Director Luis Quesada of the FBI’s Criminal Division; Acting Special Agent in Charge John S. Morales of the FBI Chicago Field Office; and Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Chicago Regional Office made the announcement.
The FBI and HHS-OIG investigated the case, which was brought as part of the Chicago Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Northern District of Illinois.
Trial Attorneys Victor B. Yanz, Claire T. Sobczak, and Sarah W. Rocha of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Patrick Mott for the Northern District of Illinois prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Chicago Man Sentenced to Seven and a Half Years in Federal Prison for Attempting to Provide Material Support to ISISRead the Press Release
CHICAGO — A federal judge today sentenced a Chicago man to seven and a half years in federal prison for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS).
A jury last year convicted THOMAS OSADZINSKI, 23, after a trial in U.S. District Court in Chicago. U.S. District Judge Robert W. Gettleman ordered that the prison term be followed by ten years of court-supervised release.
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 John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI.
The case was investigated by the Chicago Joint Terrorism Task Force, which is comprised of federal, state and local law enforcement agencies. The government was represented by Assistant U.S. Attorneys Barry Jonas and Melody Wells of the Northern District of Illinois, and Alexandra Hughes, Trial Attorney of the National Security Division’s Counterterrorism Section.
Evidence presented at trial revealed that ISIS and its supporters disseminated the terror group’s propaganda materials on social media to recruit fighters and inspire violence against the United States and other countries. Many social media platforms removed ISIS media content due to the violent nature of the materials. Osadzinski, a U.S. citizen, designed, used, and taught a process using a computer script to make ISIS propaganda more conveniently disseminated online. The process would automatically copy and preserve ISIS media postings in an organized format, allowing social media users to continue to conveniently access and share the content.
Osadzinski in 2019 shared his script – and instructions for how to use it – with individuals whom he believed to be ISIS supporters and members of pro-ISIS media organizations. Unbeknownst to Osadzinski, the individuals were actually covert FBI employees and a person confidentially working with law enforcement.
U.S. Attorney’s Office Settles ADA Claim with Chicago Restaurant to Ensure Equal Access for Patrons with Service AnimalsRead the Press Release
CHICAGO – The United States Attorney’s Office for the Northern District of Illinois has reached a civil settlement with a Chicago restaurant to ensure equal access for patrons with service animals, as required under the Americans with Disabilities Act (ADA).
The U.S. Attorney’s Office found that Castaways Bar & Grill at North Avenue Beach in Chicago discriminated against a woman with a disability when restaurant staff on June 19, 2022, offered to seat the woman and her service dog only in the back of the restaurant, segregated from other patrons. The woman, who is legally blind and relies on the service dog for many daily life activities, attempted to explain to restaurant staff that such segregated seating due to the presence of a service animal violates the ADA, but the restaurant refused to accommodate her.
Under the terms of a settlement agreement and consistent with penalties available under the ADA, the restaurant’s operator – Lakefront Operations, Inc. – agreed to pay $15,000 to the victim of discrimination and $2,500 to the United States. In addition, all current and future restaurant staff will undergo training on the obligations of public accommodations to serve persons with disabilities, specifically with regard to service animal obligations. Castaways will also post a sign near its entrance stating, “This Restaurant Welcomes Customers with Disabilities Who Are Accompanied by Their Service Animals.”
“Service animals are trained to perform tasks that foster autonomy and independence for persons with a myriad of physical challenges,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “This settlement should send a clear message that individuals who rely on service animals are entitled to equal access and opportunity in all areas of community life, including dining at restaurants.”
Title III of the ADA prohibits public accommodations, such as restaurants, from excluding people with disabilities from enjoying goods, services, privileges, facilities, and advantages provided. For more information regarding the Department of Justice’s efforts to combat discrimination, please visit the official ADA government website. To learn more about the obligations of public accommodations under federal disability rights statutes, call the Department of Justice’s toll-free ADA information line at 800-514-0301, 800-514-0383 (TTY).
The settlement agreement was reached to avoid the costs and burdens of litigation and does not represent an admission of liability by Lakefront Operations. Assistant U.S. Attorney Patrick Johnson represented the government during the investigation and settlement.
Two Men Charged with Dealing Fentanyl-Laced Heroin at Veterans Affairs Hospital in ChicagoRead the Press Release
CHICAGO — Two men have been arrested on federal drug charges for allegedly selling fentanyl-laced heroin at the Jesse Brown VA Medical Center in Chicago.
RICHARD A. HUSBAND, 73, of Chicago, is charged with distribution of a controlled substance, specifically fentanyl-laced heroin, and WAYNE TOWNSEND, 71, of Chicago, is charged with possession of a controlled substance with intent to distribute, specifically a quantity of fentanyl-laced heroin. Criminal complaints filed in U.S. District Court in Chicago accuse Husband and Townsend of dealing and possessing fentanyl-laced heroin at the VA facility last summer.
Husband and Townsend were arrested Monday. The federal investigation remains ongoing.
The complaints and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Chief Timothy Jantz of the U.S. Department of Veterans Affairs. Assistant U.S. Attorney Richard M. Rothblatt represents the government.
The public is reminded that a complaint contains only a charge 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.
The charges against Husband and Townsend are each punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Leader of Violent Chicago Street Gang Convicted on Federal Racketeering ChargeRead the Press Release
CHICAGO — A federal jury today convicted the leader of a Chicago street gang on racketeering conspiracy, firearm, and drug charges for participating in a criminal organization that murdered rivals and violently protected a drug-dealing operation on the West Side of Chicago.
The jury convicted DONALD LEE, 40, of Chicago, after a two-month trial in U.S. District Court in Chicago. Lee was a leader of the Wicked Town faction of the Traveling Vice Lords street gang. The jury also convicted TORANCE BENSON, 30, of Chicago, a member of the gang, on racketeering conspiracy and firearm charges.
Lee faces a mandatory sentence of life in federal prison, while Benson’s convictions carry a maximum potential sentence of life. U.S. District Judge Thomas M. Durkin did not immediately set sentencing dates.
Lee and Benson were among 13 defendants charged as part of a multi-year investigation into the gang’s criminal activities. The other eleven defendants pleaded guilty prior to trial and are awaiting sentencing. The investigation resulted in the seizures of more than 45 firearms, approximately 1,000 rounds of ammunition, approximately 17 kilograms of cocaine, approximately seven kilograms of heroin, and approximately 100 grams of crack cocaine.
Evidence at trial revealed that the Wicked Town gang engaged in numerous acts of violence, including at least 19 murders, 19 attempted murders, several armed robberies, and assaults. The gang used threats and intimidation to prevent victims and witnesses from cooperating with law enforcement. Wicked Town members regularly promoted their violent enterprise on social media, posting comments, photos, and videos to proclaim membership in the gang, taunt rival gang members, and boast about murders and other acts of violence. The gang operated primarily in Chicago’s Austin neighborhood, where members maintained “trap houses” to store firearms and illegal narcotics, including cocaine and heroin.
The jury found that Lee committed three murders and supplied the firearms used in three other killings, while Benson committed one murder and three attempted murders.
The jury convictions were 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. Substantial assistance in the investigation was provided by the FBI, IRS Criminal Investigation Division, Illinois State Police, U.S. Drug Enforcement Administration, Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, and the Chicago High Intensity Drug Trafficking Area program (HIDTA).
This case is part of an Organized Crime Drug Enforcement Task Force operation. OCDETF identifies, disrupts, and dismantles criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against alleged criminal networks.
The government is represented by Assistant U.S. Attorneys John D. Mitchell, Jimmy L. Arce, Meghan C. Morrissey, and Beth E. Palmer.
Chicago Man Sentenced to Nine and a Half Years in Federal Prison for Attempting to Fire Loaded Gun at Federal AgentRead the Press Release
CHICAGO — A Chicago man was sentenced today to nine and a half years in federal prison for attempting to fire a loaded gun at federal agents and task force officers while holding a toddler.
JOSEPH HAMMOND, 35, of Chicago, pleaded guilty earlier this year to assaulting a federal officer and using a firearm during a crime of violence. U.S. District Judge Manish S. Shah imposed the sentence after a hearing in federal court in Chicago.
On June 3, 2020, agents from the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives approached Hammond near the 6800 block of South Sangamon Street in Chicago’s Englewood neighborhood while investigating a report of a man holding a gun and a toddler. As the agents and officers approached in a vehicle, Hammond pointed the gun at an agent and said, “move along.” Hammond pulled the trigger, but it misfired.
Hammond then ran from the area while holding the toddler. The agents pursued Hammond and arrested him nearby. Neither the toddler nor the agents were injured.
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.
“By running through Englewood at 1:00 a.m. and brandishing a loaded firearm at law enforcement, defendant threatened the lives of the law enforcement officers, the public, and his own family,” Assistant U.S. Attorney Misty N. Wright argued in the government’s sentencing memorandum. “It is this rush to threats and violence that is getting people killed in our communities.”
New Jersey Man Sentenced to Three Years in Federal Prison for Defrauding Investors Out of up to $1.5 MillionRead the Press Release
CHICAGO — An investment manager has been sentenced to three years in federal prison for swindling clients out of up to $1.5 million.
EUGENE Z. NOWAK, 57, of Jersey City, New Jersey, represented himself as the president of Global Funding Partners, a Nevada corporation that purported to be an investment firm with complex business dealings with large multinational banking and financial services institutions. Nowak pleaded guilty to one count of wire fraud in the United States District Court for the Northern District of Illinois on May 10, 2022. In his plea agreement, Nowak admitted that, between 2013 and 2016, he falsely represented to investors, including Chicago-based investors, that their funds would be used to provide “bridge funding,” or temporary funding, for Global Funding Partners to close a $33 million financial transaction involving a large international bank. Nowak admitted to falsely promising that investors would receive high-yield returns in a short amount of time, and that they could cancel their investment at any time for a full refund with interest.
In reality, Nowak and Global Funding Partners were not parties to a transaction with any large international bank. Nowak instead diverted investor funds to cover his personal expenses, including payments to a car dealership and pawn shop in Naples, Fla. Nowak further admitted that he thereby caused multiple investors to suffer losses up to $1,500,000.
On November 9, 2022, at Nowak’s sentencing hearing, U.S. District Judge Matthew F. Kennelly imposed a 36-month prison sentence, to be followed by 2 years’ supervised release, and ordered that Nowak pay restitution to the defrauded investors.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kai Pickens, Acting Inspector in Charge of the U.S. Postal Inspection Service Chicago Division; 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 Kartik K. Raman.
Firearms Trafficker Sentenced to Ten Years in Federal PrisonRead the Press Release
CHICAGO — A man who illegally trafficked at least five firearms has been sentenced to ten years in federal prison.
In June of 2020 and July of 2021, ROBERTO PRIETO, 34, of Chicago offered firearms for sale via text message to a confidential law enforcement source on at least five different occasions, executing three of those sales. On April 19, 2022, a grand jury in Chicago returned a superseding indictment charging Prieto with three counts of being a felon in possession of a firearm. On June 16, 2022, Prieto pleaded guilty to all three counts.
On November 8, 2022, U.S. District Judge Harry D. Leinenweber imposed a 120-month prison sentence.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives. The government was represented by Assistant U.S. Attorney Megan DeMarco.
Disrupting illegal firearms trafficking is the focus of the Department of Justice’s Chicago Firearms Trafficking Strike Force. As part of the strike force, the U.S. Attorney’s Office collaborates with ATF and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.
Holding firearm offenders accountable through federal prosecution is also a centerpiece of Project Safe Neighborhoods. 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 14 Years in Federal Prison for Possessing a Firearm in Furtherance of a Drug Trafficking OffenseRead the Press Release
CHICAGO — A man who possessed and brandished a loaded firearm to protect his heroin, fentanyl, and approximately $3,100 in cash has been sentenced to 14 years in federal prison.
On February 23, 2019, LONDON GROVER, 32, of Chicago pointed a firearm at someone attempting to steal the heroin and fentanyl that Grover held for sale. When Chicago Police Department officers responded to a call for shots fired, Grover drove away from the officers at a high rate of speed. After Grover crashed the vehicle, officers found him hiding underneath a nearby parked car. From the driver’s side floorboard of the crashed vehicle, officers recovered a loaded firearm and packages of mixed fentanyl and heroin. Grover pleaded guilty earlier this year to knowingly and intentionally possessing with the intent to distribute approximately 1.3 grams of packaged heroin and fentanyl and possession of a firearm in furtherance of a drug trafficking crime. At the time of the offense, GROVER had six prior felony convictions, and was on parole for an offense involving a firearm.
On November 7, 2022, U.S. District Judge Edmond E. Chang imposed a 14-year prison sentence.
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 government was represented by Assistant U.S. Attorney William Dunne, Deputy Chief of the U.S. Attorney’s Office’s Gun Crimes Prosecution Team. The team works collaboratively with federal and local law enforcement to enhance the prosecution of illegal firearm possession in certain police districts in Chicago.
Firearms Trafficker Sentenced to More Than Seven Years in Federal PrisonRead the Press Release
CHICAGO — A man who illegally trafficked at least ten firearms from Georgia to Chicago has been sentenced to seven and a half years in federal prison.
Between approximately September 2020 and January 2021, defendant SCOTT TREECE, 35, of Rockford, Illinois transported at least ten firearms from Georgia to Illinois to sell to others. Because Treece was a felon during this time, he used straw purchasers to purchase these firearms, including his co-defendant Kyle Hall, 23, of Algonquin, Illinois and two other individuals living in Georgia. After Treece was arrested in this case, he threatened Hall and instructed the other straw purchasers to refrain from talking with law enforcement. Treece was arrested after selling a firearm to a confidential informant. During Treece’s arrest, law enforcement recovered an additional firearm and several extended magazines.
Treece pleaded guilty earlier this year to unlawfully dealing in firearms and possession of a firearm and ammunition by a convicted felon. On November 7, 2022, U.S. District Judge Edmund E. Chang imposed a 90-month prison sentence.
Assistant U.S. Attorney Jasmina Vajzovic argued in the government’s sentencing memorandum that although Treece had not obtained any additional convictions since his last in 2009, “the instant offense indicates he has been engaged in violent conduct and unlawful conduct related to firearms.”
Co-defendant Hall pleaded guilty earlier this year to one count of knowingly transferring a firearm to a felon and is awaiting sentencing by U.S. District Judge Edmond. E. Chang.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives.
Disrupting illegal firearms trafficking is the focus of the Department of Justice’s Chicago Firearms Trafficking Strike Force. As part of the strike force, the U.S. Attorney’s Office collaborates with ATF and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.
Holding firearm offenders accountable through federal prosecution is also a centerpiece of Project Safe Neighborhoods. 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 Resident Charged with $2.7 Million COVID-Relief FraudRead the Press Release
CHICAGO — A federal grand jury in Chicago, Illinois, returned an indictment in October, which was unsealed today, charging a Chicago resident with 12 counts of wire fraud for allegedly fraudulently obtaining at least $2.7 million in small business loans and grants under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to the indictment, beginning around April 2020, and continuing until around November 2020, QUAMDEEN AMUWO, 40, of Chicago, participated in a scheme to defraud the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. The EIDL program provided loan assistance and grants to cover working capital and other operating expenses for businesses suffering economic effects caused by the COVID-19 pandemic.
As part of the scheme, the indictment alleges Amuwo submitted to the SBA numerous applications for loans on behalf of businesses and entities purportedly owned by Amuwo and others. The applications allegedly contained materially false statements and misrepresentations concerning the purported entities’ owners, employees, revenues, costs, and date of establishment. Further, as part of the scheme, Amuwo is alleged to have made false statements regarding the applying entities’ gross revenues, cost of goods sold, and number of employees for the 12 months prior to the onset of the pandemic, and provided false state registration and tax documents. Amuwo is also alleged to have submitted personal identifying information for purported business owners, including names, social security numbers, and fake state identification cards that he knew did not belong to a real person.
The indictment alleges that Amuwo caused the SBA to disburse at least $2.7 million in EIDL loans and grants into bank accounts controlled by him and others. Amuwo allegedly used the money to make cash withdrawals, transfers, and purchases for his personal benefit.
Amuwo is set for arraignment in federal court in Chicago on November 28, 2022, before 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. Substantial assistance was provided by the SBA-Office of Inspector General. The government is represented by Assistant U.S. Attorney Heidi Manschreck.
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.
Suburban Chicago Man Sentenced to Seven Years in Federal Prison for Laundering Drug Trafficking ProceedsRead the Press Release
CHICAGO — A federal judge has sentenced a suburban Chicago man to seven years in federal prison for laundering illegal narcotics proceeds on behalf of drug traffickers in Mexico.
In the summer and fall of 2017 and the spring of 2018, HUAZHI HAN, 43, of North Riverside, Ill., schemed with other individuals in the United States and Mexico to facilitate the receipt of approximately $1.5 million in narcotics proceeds in the United States. Han picked up the drug money from others in the Chicago area and used the cash to purchase and then re-sell electronic devices. Han and another individual then caused the laundered money to be sent back to drug traffickers in Mexico.
In November 2017, Han attempted to receive approximately $100,000 in narcotics money from a drug dealer. At the time, Han was in possession of approximately $200,000 in cash, a firearm, and two loaded magazines. Law enforcement then searched Han’s residence and discovered a money counter, multiple firearms, more than $1.1 million in cash concealed in cookie tins inside of a drop ceiling in the basement, and approximately $200,000 in cash in vacuum-sealed packaging in the basement closet. In June 2018, law enforcement arrested Han after he received approximately $192,000 in money that was represented to Han to be drug money. At that time, Han was again in possession of a loaded firearm and extra magazine.
After a two-week trial in March, 2022, a federal jury convicted Han on all four charges against him, including one count of conspiracy to commit money laundering, one count of attempted concealment money laundering, one count of conducting a financial transaction with funds represented to be drug proceeds, and one count of operating an unlicensed money transmitting business. In addition to the guilty verdicts, the jury returned a special verdict as to the forfeiture of criminally derived property, finding that Han should forfeit approximately $1.5 million in cash, four handguns, a 2016 Mercedes-Benz automobile, a 2015 Dodge Grand Caravan, and an iPhone.
U.S. District Judge Andrea R. Wood sentenced Han on November 4, 2022, to 84 months on Counts I-III, and 60 months on Count IV, to run concurrently. She also imposed a three-year term of supervised release.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration. Substantial assistance was provided by the IRS Criminal Investigation Division in Chicago, Chicago Police Department, Homeland Security Investigations, and the U.S. Department of Treasury, Financial Crimes Enforcement Network. The government is represented by Assistant U.S. Attorneys Richard M. Rothblatt and Alexandra Morgan.
Man Sentenced to Ten Years in Federal Prison for Illegally Possessing Two Loaded Firearms as a Convicted FelonRead the Press Release
CHICAGO — A man who illegally possessed two loaded firearms and an extended magazine as a convicted felon, fled from police, and then punched a police officer in the head has been sentenced to 10 years in federal prison.
On March 29, 2020, JONATHAN KNOX, 26, of Chicago, was a passenger in a vehicle engaged in a traffic stop with Chicago Police Department officers. Knox exited the vehicle and fled from law enforcement with one firearm in his hand and another concealed in the lining of his jacket. During the pursuit, Knox threw the firearm in his hand into the backyard of a nearby residence. Knox punched the officer multiple times in the back of the head while the officer was trying to detain Knox in the yard of that same residence. Officers recovered both firearms a short time later. Knox pleaded guilty earlier this year to a federal charge of illegal possession of a firearm.
On November 4, 2022, U.S. District Judge Ronald A. Guzman imposed a 120-month prison sentence.
“The unlawful possession of firearms has crippled communities across the Chicagoland region. The consequences of picking up an illegal firearm must be severe enough such that a convicted felon who decides to do so understands the serious consequences that this decision entails,” argued Assistant U.S. Attorney Julia Schwartz in the government’s sentencing memorandum.
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. Assistance was provided by the Cook County State’s Attorney’s Office.
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.
Federal Indictment Charges Rockford Man with ArsonRead the Press Release
ROCKFORD — A Rockford man was indicted today by a federal grand jury on charges of arson for allegedly setting fire to two buildings in Rockford, Ill.
Marzavious Thomas, 27, of Rockford, was charged with two counts of maliciously damaging and destroying, and attempting to damage and destroy, by means of fire, two churches, both located on East State Street in Rockford, on or about October 19, 2022.
According to the indictment, on October 19, 2022, Thomas ignited a fire at two different churches. Following an investigation by law enforcement, Thomas was taken into custody and subsequently charged.
The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives. The Rockford Police Department and Rockford Fire Department assisted in the investigation. The government is represented by Assistant U.S. Attorney Jessica S. Maveus.
The charge of maliciously damaging and destroying, and attempting to damage and destroy, by means of fire, real and personal property, carries a mandatory minimum penalty of 5 years in prison and a maximum penalty of up to 20 years in prison, in addition to a fine of up to $250,000. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
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.
Man Sentenced to More Than Five Years in Federal Prison for Illegally Possessing a Firearm with a “Switch” DeviceRead the Press Release
ROCKFORD — A man has been sentenced to more than five years in federal prison for illegally possessing a firearm with a “switch” device.
U.S. District Judge Iain D. Johnston on Friday sentenced JOSEPH SMITH, 26, of Rockford, to five years and five months in prison and three years of supervised release. Smith plead guilty earlier this year to a charge of illegal firearm possession. As a previously convicted felon, he was prohibited by federal law from possessing firearms. Smith admitted in a plea agreement that while in Rockford on September 15, 2021, he possessed a handgun loaded with 17 rounds of ammunition and a conversion device, also known as a “switch”, that converted the firearm from semiautomatic to fully automatic.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, 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 Robert Ladd.
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.
Former Rockford Man Sentenced to 33 Months in Federal Prison for Tax FraudRead the Press Release
ROCKFORD — A former Rockford man has been sentenced to 33 months in federal prison and ordered to pay $434,314 to the Internal Revenue Service and $80,647 to the Illinois Department of Revenue in restitution for tax fraud.
Michael Mendoza, 35, of Kinderhook, Ill., pleaded guilty earlier this year to making a false claim to the internal Revenue Service.
Mendoza admitted in a plea agreement that on Feb. 3, 2014, he prepared and electronically filed with the Internal Revenue Service a 2014 Internal Revenue Service Form 1040 in which he claimed a refund of $79,320. The Form 1040 included two fabricated Forms W-2 that claimed earnings on behalf of himself and a relative joint filer. On July 1, 2015, the Internal Revenue Service electronically deposited the refund of $79,320 into a bank account that was owned by Mendoza.
As part of his plea agreement, Mendoza also admitted that between 2009 and 2015, he made additional false claims to the Internal Revenue Service and the State of Illinois seeking tax refunds to which he and his two relatives were not entitled. Based upon the false and fraudulent claims for refund, the Internal Revenue Service issued additional refunds totaling an additional $354,530 and the Illinois Department of Revenue issued refunds totaling $80,647. To support his claims for refunds, Mendoza fabricated at least 48 false Forms W-2 and W-2C in the names of himself and two relatives claiming that wages had been paid to them.
U.S. District Judge Sara L. Ellis imposed the 33-month prison sentence and restitution after a hearing Thursday in federal court in Rockford.
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 Internal Revenue Service Criminal Investigation Division in Chicago.
The government was represented by Assistant U.S. Attorneys Michael D. Love and Talia Bucci.
Three Chicago Men Charged with Odometer and Title FraudRead the Press Release
CHICAGO — A federal grand jury in Chicago, Illinois, returned an indictment, which was unsealed yesterday, charging three Illinois men with operating an odometer and title fraud scheme that involved hundreds of used cars over the course of many years.
According to court documents, Laith Ghzo, 36, of Oak Lawn, Hussein Ghzo, 40, of Palos Heights, and Musab Sawai, 35, of Worth caused the mileage of hundreds of used vehicles to be rolled back and altered title documents to reflect the false, low mileage. Those used vehicles were then sold to unsuspecting wholesale buyers and ultimately consumers, who paid more for those vehicles than they would have paid if they had known the truth about the vehicles’ mileages.
Laith Ghzo and Hussein Ghzo are charged with conspiracy to make counterfeit securities and commit mail fraud, making counterfeit securities and mail fraud. Musab Sawai is charged with conspiracy to make counterfeit securities and mail fraud. The defendants made their initial court appearances yesterday before U.S. Magistrate Judge Jeffrey Cole of the U.S. District Court for the Northern District of Illinois. If convicted, Laith Ghzo and Hussein Ghzo face a maximum penalty of 20 years in prison for each mail fraud count, and Musab Sawai faces a maximum penalty of five years in prison for conspiracy. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois, Acting Inspector in Charge Kai Pickens of the U.S. Postal Inspection Service Chicago Division and Acting Administrator Ann Carlson of the National Highway Traffic Safety Administration (NHTSA) made the announcement.
The NHTSA Office of Odometer Fraud Investigations and the Postal Inspection Service are investigating the case.
Trial Attorneys Joshua D. Rothman and Thomas Rosso of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Kartik K. Raman for the Northern District of Illinois are prosecuting the case.
NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually and has established a special hotline to handle odometer fraud complaints. Individuals with information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.
More information on odometer fraud is available on the NHTSA website https://one.nhtsa.gov/Vehicle-Safety/Odometer-Fraud and tips on detecting and avoiding odometer fraud are available at this page: www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf.
Man Sentenced to Seven Years in Federal Prison for Illegally Possessing Loaded Gun on a Chicago StreetRead the Press Release
CHICAGO — A man who illegally possessed a loaded handgun on a Chicago street and tried to flee from police has been sentenced to seven years in federal prison.
BRANDON ELLIS, 30, of Chicago, illegally possessed the firearm in the early morning hours of August 15, 2021. Ellis was observed via a Chicago Police Department (CPD) surveillance camera lifting his shirt to brandish a weapon in his waistband to another individual. When CPD officers approached and directed defendant to stop, he ran from the officers. Officers recovered a semiautomatic pistol from defendant’s waistband. The pistol was previously reported stolen.
Ellis pleaded guilty earlier this year to a federal charge of illegal possession of a firearm. This is Ellis’s third conviction for illegally possessing a firearm in the last five years, having completed a term of imprisonment on federal charges less than four months prior.
U.S. District Judge Ronald A. Guzman on November 2, 2022, imposed an 84-month prison sentence.
“By carrying a gun as a convicted felon in a high-crime area—and then brandishing that gun—he affirmatively created a volatile and potentially deadly situation on a street filled with people” Assistant U.S. Attorney Vikas Didwania argued in the government’s sentencing memorandum. “The law must make clear—through the sentence this Court imposes—that Ellis cannot break the rules with impunity; that this Court will protect the public from him; and that he will be punished severely until he stops.”
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, 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.
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.
Suburban Chicago Dentist Sentenced to Two and a Half Years in Federal Prison for Orchestrating $1.2 Million Fraud SchemeRead the Press Release
CHICAGO — A suburban Chicago dentist has been sentenced to two and a half years in federal prison for fraudulently obtaining $1.2 million in medical care loans for purported dental work that was never performed.
MICHAEL D. EGAN, 57, of Orland Park, Ill., pleaded guilty earlier this year to a wire fraud charge. U.S. District Judge Edmond E. Chang imposed the sentence on 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; 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 Kartik K. Raman.
Egan owned and operated a dental practice in Tinley Park, Ill. In 2015 and 2016, Egan submitted fraudulent applications to a lending company for medical care loans that would purportedly finance certain patients’ dental care. In reality, Egan knew that he would not, and in fact did not, perform the dental work on those patients. In some instances, after a loan was approved, Egan caused the amount to be increased by falsely informing the lending company that additional dental work was needed, when, in fact, Egan knew that no additional treatment – or any treatment at all – would be performed.
Egan paid a portion of the fraudulently obtained loan proceeds to the purported dental patients as well as to recruiters who had identified the patients to apply for the loans.
Federal Juries Convict Two Men of Sex Trafficking ChildrenRead the Press Release
CHICAGO — Federal juries have convicted two men on sex trafficking charges for recruiting two children to travel to Chicago from Indiana and causing them to engage in sex acts for money.
The juries in U.S. District Court in Chicago on Tuesday convicted KENNEDY SPENCER, also known as “Kenny,” 53, of Chicago, and RONALD WILLIAMS, also known as “Slim,” 63, of Lynwood, Ill., on sex trafficking and conspiracy charges. Spencer and Williams were tried before separate juries in a trial that lasted more than two weeks.
The convictions carry a mandatory minimum sentence of 15 years in federal prison, and a maximum of life.
The convictions were 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 Tinley Park Police Department and the FBI out of South Bend, Ind., provided valuable assistance in the investigation. The government is represented by Assistant U.S. Attorneys Andrew C. Erskine and Erika L. Csicsila.
According to evidence presented at trial, the victims were under the age of 18 when Spencer induced them to travel to Chicago in the spring of 2018. Once in the city, Spencer on multiple occasions arranged for the victims to meet with individuals to engage in commercial sex acts. Williams drove the victims to some of the meetings. Afterward, Spencer and Williams kept the bulk of the proceeds.
Both victims testified at trial about their ordeals being sex trafficked by Spencer and Williams.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by calling 1-800-843-5678 or logging on to www.cybertipline.com.
U.S. Attorney’s Office in Chicago Announces Telephone Hotline to Report Voting Rights Complaints on Election DayRead the Press Release
CHICAGO — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today announced that the U.S. Attorney’s Office will operate a telephone hotline on Election Day (Nov. 8, 2022) to receive complaints related to the voting process.
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department’s longstanding Election Day Program furthers these goals and seeks to ensure public confidence in the electoral process by providing a local point of contact for the public to report possible federal election law violations.
“A crucial part of our democracy is the integrity of our electoral system,” said U.S. Attorney Lausch. “A citizen who is entitled to vote should not be hindered or prevented from doing so. Similarly, election officials and staff must not be subject to unlawful threats of violence. Our office stands ready to help ensure the sanctity of the voting process.”
Assistant U.S. Attorneys and other staff will monitor the hotline and respond to complaints, as needed. The hotline numbers, staffed on Election Day only, are (312) 469-6157 and (312) 469-6158.
Complaints can also be made directly to the Department of Justice’s Civil Rights Division in Washington, D.C. by phone at (800) 253-3931 or online at https://civilrights.justice.gov/.
In addition, the FBI Chicago Field Office will have special agents and other staff available on Election Day to receive allegations of election fraud or other election-related complaints. The phone number for the FBI Chicago Field Office is (312) 421-6700.
Federal laws protect the rights of voters to mark their own ballot or be assisted by a person of their choice. Federal laws protect against such crimes as threatening violence against election officials, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, and marking ballots for voters against their wishes. Violations of federal election laws could result in prison time and monetary fines. For information as to the location and hours of polling sites, Illinois residents are advised to contact the Illinois State Board of Elections by logging on to www.elections.il.gov or by calling (312) 814-6440.
Former Controller of Chicago Health Club Admits Embezzling More Than $4 MillionRead the Press Release
CHICAGO — The former controller of a Chicago health club has pleaded guilty to a federal fraud charge for embezzling more than $4 million from the club.
PETER CRAIG SAVELY, 58, of Chicago, pleaded guilty Thursday to one count of bank fraud. The conviction is punishable by a maximum sentence of 30 years in federal prison and a fine of up to $1 million, and restitution is mandatory. U.S. District Judge Ronald A. Guzman set sentencing for Feb. 2, 2023, at 2:00 p.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Douglas Zloto, Special Agent-in-Charge of the U.S. Secret Service Chicago Field Office; and David Brown, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Elly M. Peirson.
Savely admitted in a plea agreement that from 2013 to 2020 he issued purported payroll checks on the club’s bank account to four employees. Savely signed the checks as the club’s controller and, since the checks also required the signature of the club’s Chief Financial Officer, forged the CFO’s signature without the CFO’s knowledge, the plea agreement states. Savely then forged the payees’ signatures to fraudulently endorse the checks and deposited them into bank accounts that he controlled, the plea agreement states. As a result of the fraud scheme, Savely converted more than $4.1 million for his own personal use. Savely admitted that he attempted to conceal the embezzlement by regularly making false entries in the club’s financial ledgers and causing the losses associated with the checks to be spread across multiple departments, thereby making the losses harder to detect.
Office Manager for Chicago Medical Practice Sentenced to a Year in Federal Prison for Fraudulently Writing Opioid PrescriptionsRead the Press Release
CHICAGO — An office manager for a Chicago medical practice has been sentenced to a year in federal prison for fraudulently writing opioid prescriptions.
ROSEMARY MAYS worked for a medical practice on the South Side of Chicago. From 2009 to 2016, Mays conspired with another individual to write more than 3,000 fraudulent prescriptions for hydrocodone, oxycodone, and other controlled substances. Mays used a prescription pad belonging to a doctor in the practice and wrote the prescriptions in her own name and the names of dozens of unsuspecting friends and family members who had not been treated by the doctor and had no legitimate medical need for the controlled substances. Mays and her co-conspirator then caused friends and family members to fill the fraudulent prescriptions at pharmacies in the Chicago area and provide the opioids to Mays and the co-conspirator. After the fraudulent prescriptions were filled, some of the controlled substances were sold throughout the Chicago area for a profit.
Mays attempted to conceal the scheme by creating fake patient profiles for the individuals whose names she put on the fraudulent prescriptions to make it seem as if the individuals had been treated by the doctor and prescribed the opioids. In reality, they were not patients of the doctor and had not been prescribed any medications by the doctor.
Mays, 47, of South Holland, Ill., pleaded guilty to one count of conspiracy to dispense and distribute a controlled substance outside the usual course of professional practice and without a legitimate medical purpose or practitioner license. U.S. District Judge Mary M. Rowland imposed the year-and-a-day prison sentence Wednesday in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert J. Bell, Special Agent-in-Charge of the DEA Chicago Field Division; John Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; and Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Chicago Regional Office.
“Defendant was the key player in a multi-year criminal conspiracy,” Assistant U.S. Attorney Richard M. Rothblatt argued in the government’s sentencing memorandum. “Defendant abused the trust of a doctor with whom she worked to write thousands of fraudulent prescriptions for dangerous and addictive opioids.”
Former Union Official Sentenced to More Than a Year and a Half in Federal Prison for Receiving Unlawful Cash Payments from Chicago BusinessRead the Press Release
CHICAGO — A former high-ranking official in a labor union was sentenced today to more than a year and a half in federal prison for accepting $325,000 in unlawful cash payments from a Chicago business and failing to report the payments on his tax returns.
JOHN T. COLI SR., 63, of Putnam, Ill., pleaded guilty pursuant to a cooperation plea agreement in 2019 to one count of receiving a prohibited payment as a union officer and one count of making a false income tax return. The government recommended a sentence of 19 months in prison and U.S. District Chief Judge Rebecca R. Pallmeyer imposed that term 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; John Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government was represented by Assistant U.S. Attorney Amarjeet S. Bhachu.
Coli served from 2000 to 2017 as the Secretary-Treasurer of Teamsters Local Union 727. Coli admitted in a plea agreement that from 2014 to 2017, he received quarterly payments of $25,000 from a Chicago business that employed workers represented by Local 727. Coli acknowledged in the plea agreement that had law enforcement not intervened, he expected to receive four more quarterly payments from the company and then retire from the union.
The tax count pertained to Coli’s knowing and willful failure to report the secret payments as income for the calendar years 2014 through 2016. This conduct resulted in a federal tax loss of approximately $105,000 and a State of Illinois tax loss of approximately $12,500.
In addition, Coli acknowledged in the plea agreement that he received other income and benefits from representatives of businesses that dealt with Local 727 that were not properly disclosed to the U.S. Department of Labor. The benefits included meals in Las Vegas and other cities, free box seat tickets to National Football League and Major League Baseball games, use of a yacht in the U.S. and Italy, and periodic cash payments.
Two Thomson Penitentiary Inmates Sentenced to Additional Prison Terms for Assaulting Other InmatesRead the Press Release
ROCKFORD — Two inmates at the United States Penitentiary in Thomson, Ill., have been sentenced to additional prison terms for assaulting other inmates.
GEORGE RICHARD GAUNT, 34, was sentenced to 14 years in prison, to be served consecutively to the federal sentence he is currently serving for robbing multiple banks.
KELLY BRYAN SCHNEIDER, 29, was sentenced to 12 and a half years in prison, to be served consecutively to the sentences he is currently serving for murder and hate crime in the U.S. Bureau of Prisons and the State of Idaho.
Gaunt and Schneider each pleaded guilty to federal assault charges. U.S. District Judge Philip G. Reinhard imposed the additional sentences this week after hearings in federal court in Rockford.
The sentences were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Ashley T. Johnson, Special Agent-in-Charge of the Chicago Field Office of the FBI. The government was represented by Assistant U.S. Attorney Vincenza L. Tomlinson.
Gaunt and Schneider admitted in plea agreements that on Aug. 9, 2019, they punched, kicked, and stomped on an inmate’s body and head multiple times, causing serious injuries and loss of consciousness. The pair continued to strike the inmate while he was defenseless and in a protective posture. Schneider admitted that he attempted to bite off the inmate’s ear and continued to strike the inmate until correctional staff intervened.
Gaunt and Schneider assaulted another inmate on Aug. 23, 2019. In that attack, the pair punched, kicked, and stomped on the inmate’s body and head multiple times, causing serious injuries and loss of consciousness. Gaunt and Schneider continued to strike the inmate while he was defenseless.
Gaunt and Schneider admitted in their plea agreements that neither of the victims provoked the attacks in any way.
Psychologist Convicted of Health Care Fraud SchemeRead the Press Release
A federal jury convicted a licensed Illinois psychologist of defrauding Medicare over the course of several years by causing the submission of fraudulent claims for psychotherapy services he never provided.
According to court documents and evidence presented at trial, Renato F. Duarte, aka Ren Duarte, 63, of Chicago, caused the submission of fraudulent Medicare claims from July 2016 through June 2019 for psychotherapy services purportedly provided to nursing home patients in Chicago and surrounding areas. Duarte’s scheme included fraudulently billing for in person services on dates that Duarte was traveling outside of the country and fraudulently billing for psychotherapy purportedly provided to patients who were deceased.
Duarte was convicted of four counts of health care fraud. He is scheduled to be sentenced on April 18, 2023, and faces a maximum penalty of 10 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney John R. Lausch, Jr. for the Northern District of Illinois; Acting Special Agent in Charge Ashley T. Johnson of the FBI Chicago Field Office; and Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services Office of the Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
The FBI and HHS-OIG investigated the case, which was brought as part of the Chicago Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Northern District of Illinois.
Trial Attorneys Steven Scott and Thomas D. Campbell of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Ten Defendants Charged in Drug Trafficking Probe Targeting Fentanyl-Laced Heroin Sales in ChicagoRead the Press Release
CHICAGO — A federal drug trafficking investigation has 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.
During the multi-year probe, law enforcement seized more than a kilogram of narcotics, as well as 13 firearms and more than $40,000 in suspected illicit proceeds. The investigation, led by the FBI, IRS Criminal Investigation Division, and Chicago Police Department, utilized covert surveillance operations, controlled narcotics purchases, and wiretapped communications to shut down the defendants’ drug trafficking activities, which were centered mainly in Chicago’s North Austin neighborhood.
Many of the defendants were arrested this week and have begun making initial appearances in U.S. District Court in Chicago.
The federal charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and David Brown, Superintendent of CPD. Assistant U.S. Attorneys Erin Kelly and Simar Khera represent the government.
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.
Charged with a federal drug conspiracy are CARLOS JAMES, 46; SAMUEL BROOKS, 71; PAURICE ROSE, 46; DONALD WILLIAMS, 34; VASHON JAMES, 39; DAVID LAMB, 56; FELICIA SINGLETON, 57; THOMAS BIRT, 54; AVIS KNIGHT, 54; and HAYDEE CANO, 46; all of Chicago. Brooks is also charged with illegally possessing a handgun as a previously convicted felon.
According to a criminal complaint unsealed Wednesday in U.S. District Court in Chicago, Carlos James led a drug trafficking organization that distributed at least 35 kilograms of fentanyl-laced heroin and at least 1.1 kilograms of crack cocaine to street-level customers in Chicago from April 2021 to August 2022.
Carlos James allegedly worked with Rose and Williams to prepare and package the drugs for distribution on the street. The drug trafficking organization used multiple “stash houses” in Chicago, including residences in the 1700 block of North Mango Avenue and the 1600 and 1700 blocks of North Mayfield Avenue, to store the narcotics and the cash proceeds, the complaint alleges. Brooks served as a street-level manager of the organization, providing narcotics to Lamb, Singleton, Birt, Knight, and Cano to sell to customers on the street, the charges allege. Vashon James allegedly prepared crack cocaine and collected the proceeds after the sales.
During the probe, law enforcement executed court-authorized searches of the stash houses and other locations and worked with a cooperating source to make nine controlled purchases of narcotics from the defendants’ organization.
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.
Suburban Chicago Man Sentenced to More Than Ten Years in Federal Prison for Trafficking Fentanyl and HeroinRead the Press Release
ROCKFORD — A suburban Chicago man has been sentenced to more than ten years in federal prison for trafficking fentanyl and heroin.
RAYLOE JACKSON, 46, of Maywood, Ill., pleaded guilty earlier this year to possession of fentanyl and heroin with intent to distribute.
Jackson admitted in a plea agreement that on April 3, 2020, he met with a Rockford-based narcotics supplier in Maywood and obtained more than a kilogram of fentanyl and nearly 200 grams of heroin, which Jackson intended to distribute to another individual. When law enforcement attempted to stop Jackson after his meeting with the supplier, Jackson ran from the officers and threw a bag containing the fentanyl and heroin over a fence into a backyard of a residence on South 14th Avenue in Maywood. Officers ultimately caught and arrested him.
As part of his plea agreement, Jackson also admitted that in 2019 he possessed two kilograms of cocaine with intent to distribute. This case was Jackson’s fourth felony drug-trafficking conviction.
U.S. District Judge Phillip G. Reinhard imposed the 124-month prison sentence after a hearing Wednesday 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 J. Bell, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration. The investigation was conducted by a DEA task force, which includes officers from the Crystal Lake, Ill. Police Department, Belvidere, Ill. Police Department, and Boone County, Ill. Sheriff’s Office. The Rockford Police Department assisted in the investigation.
The government was represented by Assistant U.S. Attorneys Scott Paccagnini and Talia Bucci.
Seven Chicago-Area Residents Charged with $16 Million COVID-Relief FraudRead the Press Release
CHICAGO – Seven Chicago-area residents have been indicted on federal charges for allegedly fraudulently obtaining at least $16 million in small business loans and grants under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.
The defendants engaged in fraud related to the Economic Injury Disaster Loan Program (EIDL) – one of the sources of relief under the CARES Act, according to a 33-count indictment returned Wednesday in the Northern District of Illinois. Charged with wire fraud and money laundering are MAJA NIKOLIC, 34, of Brookfield, Ill., MARKO NIKOLIC, 34, of La Grange, Ill., NEBOJSA SIMEUNOVIC, 37, of Lyons, Ill., MIJAJLO STANISIC, 33, of Willowbrook, Ill., BRANKO ALEKSIC, 33, of Chicago, MILICA SUMAKOVIC, 31, of Chicago, and DORDE TODOROVIC, 32, of Chicago.
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; R. Sean Fitzgerald, Acting Special Agent-in-Charge of the Chicago Office of Homeland Security Investigations; J. Russell George, Inspector General of the Treasury Department Inspector General for Tax Administration (TIGTA); 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 Special Assistant U.S. Attorney Malgorzata Tracz Kozaka and Assistant U.S. Attorney Kavitha J. Babu.
The EIDL program provided loan assistance or grants to cover working capital and other operating expenses. According to the indictment, the defendants in the spring and summer of 2020 submitted to the SBA fraudulent applications in which they claimed to own and operate various businesses in Illinois and Florida. The applications and supporting documents contained materially false representations about the defendants’ companies, including the number of purported employees, revenue amounts, and other expenses, the indictment states.
The indictment alleges that the defendants caused the SBA to disburse at least $16 million in EIDL loans and grants into bank accounts controlled by the defendants and others. The defendants allegedly used the money to make cash withdrawals and transfers for their personal benefit.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent until proven guilty beyond a reasonable doubt. Each wire fraud and money laundering charge is punishable by up to 20 years in federal prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
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.
Federal Indictment Charges Man with Conspiring to “Straw Purchase” 27 Firearms in Indiana on Behalf of Chicago ResidentRead the Press Release
CHICAGO — A man has been charged in federal court with conspiring to “straw purchase” 27 firearms in Indiana on behalf of a Chicago resident.
From 2016 to 2019, RICARDO LARREA purchased 26 handguns and one shotgun from federally licensed dealers in Hammond, Ind., and falsely certified on required federal forms that he was the actual buyer of the guns, according to an indictment unsealed Wednesday in U.S. District Court in Chicago. Larrea purchased the guns on behalf of a Chicago resident who identified which firearms he wanted and paid Larrea to buy them, the indictment states. After falsely completing the forms and making the purchases, Larrea provided the firearms to the Chicago resident, the charges allege.
The indictment charges Larrea, 27, of Whiting, Ind., with one count of conspiracy to knowingly make false statements in connection with the acquisition of a firearm. Larrea pleaded not guilty Wednesday at his arraignment before U.S. District Judge John F. Kness. A status hearing was set for Nov. 18, 2022.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. The government is represented by Assistant U.S. Attorneys Kavitha J. Babu and Jonathan L. Shih.
Disrupting illegal firearms trafficking is the focus of the Department of Justice’s Chicago Firearms Trafficking Strike Force. As part of the strike force, the U.S. Attorney’s Office collaborates with ATF and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.
Holding firearm offenders accountable through federal prosecution is also a centerpiece of Project Safe Neighborhoods. 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.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The conspiracy charge is punishable by a maximum sentence of five years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
262 Month Sentence ImposedRead the Press Release
SOUTH BEND – Nahkomie Taylor, 31 years old, was sentenced by United States District Court Chief Judge Jon E. DeGuilio on his plea of guilty to two counts of bank robbery and one count of brandishing a firearm during a crime of violence, announced United States Attorney Clifford D. Johnson.
Taylor was sentenced to 262 months in prison, 2 years of supervised release and ordered to pay $12,155 in restitution.
According to documents in this case, Nahkomie Taylor was on parole for armed robbery for less than a month when he robbed a bank at gunpoint in South Bend on February 18, 2020. Three days later, Taylor robbed a different bank at gunpoint in South Bend. That same day, he traveled to Oak Park, Illinois, and robbed a third bank at gunpoint.
This case was investigated by the Federal Bureau of Investigation with the assistance of the South Bend Police Department, the Oak Park Police Department, and the Chicago Police Department. The case was prosecuted in coordination with the United States Attorney’s Office, Northern District of Illinois and handled by Assistant United States Attorney Joel Gabrielse.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Federal Indictment Charges Thomson Penitentiary Inmate with Murder in Connection with Death of Fellow InmateRead the Press Release
ROCKFORD — An inmate at the United States Penitentiary in Thomson, Ill., has been indicted by a federal grand jury on charges of second-degree murder and assault relating to the death of a fellow inmate.
On Dec. 15, 2021, DONTA MADDOX assaulted his cellmate, Bobby Everson, resulting in fatal injuries, according to an indictment returned Tuesday in U.S. District Court in Rockford.
Second-degree murder carries a maximum sentence of life in federal prison, while the maximum sentence for the assault charge is ten years. Arraignment for Maddox, 44, has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Robert S. Ladd.
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. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Five Individuals Charged in Federal Probe into Thefts of Postal Keys and MailRead the Press Release
CHICAGO — Five individuals in the Chicago area have been charged with unlawfully possessing U.S. Postal Service keys or stealing from the mail. The indictments were brought as part of “Operation Broken Arrow,” an ongoing federal investigation into the thefts of postal keys and mail.
Indictments recently unsealed in U.S. District Court in Chicago allege that the defendants unlawfully possessed the keys or stole from the mail in Chicago this year and last year. Charged with unlawfully possessing a U.S. Postal Service key are SAVANNAH S. SHANDOR, 29, of Chicago, JOSEPH T. SOLOMON, 37, of Norridge, Ill., THADDEUS J. HARPER, 42, of Chicago, SHAUN A. WHITE, 25, of Chicago, and JORDAN J. MCPHEARSON, 31, of Chicago. Shandor, Solomon, and Harper are also charged with stealing pieces of mail.
The indictments and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kai Pickens, Acting Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service; and David Brown, Superintendent of the Chicago Police Department. Substantial assistance was provided the Central Area Field Office of the U.S. Postal Service’s Office of Inspector General and the Cook County Sheriff’s Office. The government is represented by Special Assistant U.S. Attorney Peter Madriñan.
“It is illegal under federal law to possess a stolen or reproduced key suited to a U.S. Postal Service lock,” said U.S. Attorney Lausch. “We will continue to work with our federal and local law enforcement partners to hold accountable anyone who unlawfully possesses such a key or steals from the mail.”
“A critical mission of the U.S. Postal Inspection Service is to ensure the integrity of the U.S. Mail and to protect postal customers,” said USPIS Acting Inspector-in-Charge Pickens. “Strong collaboration with our law enforcement partners led to the successful investigations and arrests of these individuals who compromised the postal system. We will continue to build on these efforts to investigate alleged criminals who damage trust in the U.S. mail.”
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. Unlawfully possessing a Postal Service key is punishable by a maximum sentence of ten years in federal prison, while theft of mail carries a maximum sentence of five years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Superseding Federal Indictment Against Former Illinois Speaker of the House Adds Charge for Alleged Corruption Scheme Related to AT&T IllinoisRead the Press Release
CHICAGO — A federal grand jury in Chicago has charged former Speaker of the Illinois House of Representatives MICHAEL J. MADIGAN with corruptly arranging for payments to be made to a political ally as part of an alleged conspiracy involving Illinois Bell Telephone Company, which does business as AT&T Illinois.
Madigan was originally indicted earlier this year on racketeering and bribery charges for allegedly using his official position to corruptly solicit and receive personal financial rewards for himself and his associates. The initial indictment accused Madigan and his close friend – co-defendant MICHAEL F. MCCLAIN – of causing the utility company Commonwealth Edison to make monetary payments to Madigan’s allies as a reward for their loyalty to Madigan, at times in return for performing little or no actual work for the company. The initial indictment also charged Madigan with engaging in multiple schemes to reap the benefits of legal work unlawfully steered to his private law firm.
The superseding indictment unsealed today includes the prior charges and adds an additional conspiracy count against Madigan and McClain related to an alleged corruption scheme involving AT&T Illinois. The new indictment alleges that Madigan and McClain in 2017 conspired with AT&T Illinois’s then-president to corruptly arrange for $22,500 to be paid at the direction of the company to the Madigan ally. AT&T Illinois allegedly made the payments through an intermediary – a lobbying firm that performed services for AT&T Illinois – to conceal the true nature of the payments, which was to influence and reward Madigan’s efforts as Speaker to assist AT&T Illinois with respect to certain legislation in the Illinois General Assembly. Although the members of the conspiracy formulated a pretextual assignment for Madigan’s ally to disguise why the ally was being paid, the ally performed no actual work for AT&T Illinois and had no role in advancing the legislation, the charges allege.
Madigan, 80, of Chicago, and McClain, 75, of Quincy, Ill., will be arraigned on the superseding indictment on a future date to be set by the U.S. District Court in Chicago.
The former AT&T Illinois president – PAUL LA SCHIAZZA, 65 – was charged in a separate federal indictment unsealed today with participating in the conspiracy and committing other offenses, including using a facility in interstate commerce to promote unlawful activity. Also today, the U.S. Attorney’s Office filed a one-count criminal information charging AT&T Illinois with using an interstate facility to promote unlawful activity.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Diane MacArthur, Timothy J. Chapman, Sarah E. Streicker, Michelle Kramer, and Julia Schwartz.
The public is reminded that charges are not evidence of guilt. 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 sentencing statutes and the advisory U.S. Sentencing Guidelines.
Former President of AT&T Illinois Charged with Conspiracy to Unlawfully Influence Former Illinois Speaker of the HouseRead the Press Release
CHICAGO — The former president of Illinois Bell Telephone Company, which does business as AT&T Illinois, has been charged in federal court with participating in a conspiracy to unlawfully influence the former Illinois Speaker of the House of Representatives involving the company’s efforts to advance legislation in the Illinois General Assembly.
PAUL LA SCHIAZZA conspired in 2017 with former Speaker Michael J. Madigan, Madigan’s close friend, Michael McClain, and others, to corruptly arrange for $22,500 to be paid to a Madigan ally, according to a five-count indictment unsealed today in U.S. District Court in Chicago. AT&T Illinois caused the payments to be made through an intermediary – a lobbying firm that performed services for AT&T Illinois – to conceal the true nature of the payments, which was to influence and reward Madigan’s efforts as Speaker to assist the company with respect to certain legislation, the indictment alleges. Although the members of the conspiracy formulated a pretextual assignment for Madigan’s ally to disguise why the ally was being paid, the ally performed no actual work for AT&T Illinois and had no role in advancing the legislation, the indictment states.
La Schiazza, 65, is charged with one count of conspiracy, one count of corruptly giving something of value to reward a public official, and three counts of using a facility in interstate commerce to promote unlawful activity. 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; Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Diane MacArthur, Timothy J. Chapman, Sarah E. Streicker, Michelle Kramer, and Julia Schwartz.
Madigan, 80, of Chicago, and McClain, 75, of Quincy, Ill., were charged in a separate, superseding indictment unsealed today with participating in the AT&T Illinois conspiracy and committing other bribery and misconduct offenses. Also today, the U.S. Attorney’s Office filed a one-count criminal information charging AT&T Illinois with using an interstate facility to promote unlawful activity.
The public is reminded that charges are not evidence of guilt. 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 sentencing statutes and the advisory U.S. Sentencing Guidelines.
Defendant Who Failed to Appear in Court Before 2009 Drug Trial Arrested in Panama and Returned to United StatesRead the Press Release
CHICAGO — A man who failed to appear in federal court in Chicago before his 2009 drug trial has been arrested in Panama and returned to the United States.
COSME CHACON, 53, was arrested Tuesday after arriving in Panama City on a flight from Colombia. Chacon was removed to Chicago and appeared Thursday before U.S. Magistrate Judge Beth W. Jantz in the Northern District of Illinois. Chacon is currently detained in federal custody.
The arrest and return were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; R. Sean Fitzgerald, Acting Special Agent-in-Charge of the Chicago office of Homeland Security Investigations; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. IRS Criminal Investigation Panama City, the U.S. Department of State’s Diplomatic Security Service, the U.S. Marshals Service, and the Justice Department’s Office of International Affairs provided support in securing the defendant’s return to the United States. Assistant U.S. Attorney Brian F. Williamson represents the government.
This case is part of an Organized Crime Drug Enforcement Task Forces investigation. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, 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.
Chacon was among four defendants indicted in Chicago in 2007. The indictment accused the defendants of participating in a drug trafficking organization that transported heroin to Chicago from New York, Florida, and Texas. After the drugs were sold in the Chicago area, Chacon allegedly laundered the illicit proceeds through wire transfers to Colombia and other overseas locations. He was charged with drug conspiracy and money laundering.
Chacon was free on bond when he failed to appear for status hearings in the weeks leading up to a scheduled trial date of Sept. 21, 2009. A warrant was then issued for his arrest.
The public is reminded that an indictment contains only charges and is not evidence of guilt. Chacon is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The drug conspiracy charge against Chacon is punishable by a mandatory minimum sentence of ten years in federal prison and a maximum of life, while the money laundering charge is punishable by up to 20 years. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Chacon’s three co-defendants pleaded guilty and were sentenced to federal prison terms of 16 years, 12 years, and one year.
AT&T Illinois to Pay $23 Million to Resolve Federal Investigation into Efforts to Unlawfully Influence Former Illinois Speaker of the HouseRead the Press Release
CHICAGO — Illinois Bell Telephone Company, LLC, which does business as AT&T Illinois, today agreed to pay $23 million to resolve a federal criminal investigation into alleged misconduct involving the company’s efforts to unlawfully influence former Illinois Speaker of the House Michael J. Madigan.
The investigation of AT&T Illinois is being resolved with a deferred prosecution agreement under which the company admitted it arranged for payments to be made to an ally of Madigan to influence and reward Madigan’s efforts to assist AT&T Illinois with respect to legislation sought by the company. The U.S. Attorney’s Office today filed a one-count criminal information in U.S. District Court in Chicago charging AT&T Illinois with using an interstate facility to promote legislative misconduct. Under the agreement, the government will defer prosecution on the charge for two years and then seek to dismiss it if AT&T Illinois abides by certain conditions, including continuing to cooperate with any investigation related to the misconduct alleged in the information.
The deferred prosecution agreement requires AT&T Illinois to pay $23 million to the federal Crime Victims Fund. Arraignment in federal court in Chicago has not yet been scheduled.
The charge and the deferred prosecution agreement were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Diane MacArthur, Timothy J. Chapman, Sarah E. Streicker, Michelle Kramer, and Julia Schwartz.
AT&T Illinois’s admissions regarding the charged conduct are contained in a Statement of Facts attached to the deferred prosecution agreement. AT&T Illinois admitted that in 2017 it arranged for an ally of Madigan to indirectly receive $22,500 in payments from the company. The company paid the money through an intermediary – a lobbying firm that performed services for AT&T Illinois. Although AT&T Illinois employees formulated a pretextual assignment for Madigan’s ally to disguise why the ally was being paid, the ally performed no actual work for AT&T Illinois and the company made no effort to ensure any work was performed. AT&T Illinois acknowledged in the agreement that AT&T Illinois’s then-president used an interstate facility to facilitate Madigan’s indirect receipt of a thing of value, namely the payments made to his ally, in exchange for Madigan’s vote and influence over a bill.
In addition to the monetary penalty and its continued cooperation with the government, AT&T Illinois’s obligations under the agreement include implementing a new compliance and ethics program and providing annual reports to the government regarding remediation and implementation of the program. If AT&T Illinois fails to completely fulfill each of its obligations under the agreement during the two-year term, the U.S. Attorney’s Office can initiate prosecution of the charged offense.
Rockford Man Sentenced to 13 Years in Federal Prison for Conspiring to Traffic Heroin and CocaineRead the Press Release
ROCKFORD — A Rockford man has been sentenced to 13 years in federal prison for trafficking heroin and cocaine.
TERVARIE LOTTIE, 34, pleaded guilty earlier this year to conspiracy to distribute a kilogram or more of heroin, conspiracy to possess cocaine with intent to distribute, and possession of heroin and cocaine with intent to distribute.
U.S. District Judge John Robert Blakey imposed the prison sentence on Sept. 29, 2022, 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; Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Office of the ATF; Carla Redd, Chief of the Rockford Police Department; Gary Caruana, Winnebago County Sheriff; and J. Hanley, Winnebago County State’s Attorney. The federal investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, which includes the above law enforcement agencies and the Loves Park and Freeport Police Departments. The government was represented by Assistant U.S. Attorney Talia Bucci.
Lottie admitted in a plea agreement that he led a drug-trafficking organization that distributed heroin to other drug dealers and street-level customers in the Rockford area in 2017. Lottie and co-defendant TYSHON WATSON, of Rockford, shared a cell phone that the organization’s street-level customers contacted to arrange to buy heroin. On days when Watson had the phone, Watson sold heroin to those customers and provided proceeds to Lottie. On days when Lottie had the cell phone, Lottie personally sold heroin to the street-level customers. Lottie also personally sold larger quantities of heroin to other drug dealers in the Rockford area.
Another member of the drug-trafficking organization – co-defendant JOHNIA WILSON, of Rockford – recruited certain individuals to buy heroin from the organization, with Wilson brokering transactions between Lottie and the buyers. Wilson also helped Lottie collect drug-trafficking proceeds owed to the organization. As part of the conspiracy, Lottie maintained an apartment in Rockford that he used as a “trap house” to store and package heroin for sale, distribute to customers, and meet with Watson and Wilson.
Lottie separately conspired with another co-defendant – DEVONTE GORDON, of Rockford –to possess cocaine. As part of that conspiracy, Lottie arranged for Gordon to purchase two kilograms of cocaine from one of Lottie’s narcotics suppliers in 2017.
The three co-defendants were previously sentenced to federal prison terms. Gordon was sentenced to 87 months for conspiracy to distribute cocaine; Watson was sentenced to 57 months for conspiracy to distribute heroin; and Wilson was sentenced to 36 months for conspiracy to distribute heroin.
Four Years in Federal Prison for Chicago Man Who Illegally Possessed Loaded Gun While on Parole for Prior Gun OffenseRead the Press Release
CHICAGO — A federal judge has sentenced a man to more than four years in federal prison for illegally possessing a loaded handgun near a Chicago playground while on parole for a prior gun offense.
KEJUAN CARR, 26, of Chicago, illegally possessed the gun on March 22, 2021, inside Chicago’s Humboldt Park and directly across the street from a children’s playground. Chicago Police officers conducting remote surveillance observed Carr holding the firearm while standing among a group of people in the 1300 block of Luis Munoz Marin Drive. Officers arrested Carr as he left the park. The gun in his possession was loaded with 13 live rounds of ammunition.
Carr had previously been convicted of multiple felonies in state court and was prohibited by federal law from possessing a gun. He was on parole for a recent firearm conviction when he possessed the gun near the playground.
Carr pleaded guilty earlier this year to the federal charge of illegal possession of a firearm. U.S. District Judge Andrea R. Wood on Monday imposed a 51-month prison sentence.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Illinois Department of Corrections.
“There is a dangerous atmosphere of gun violence that pervades this city and this District,” Assistant U.S. Attorney James P. Durkin argued in the government’s sentencing memorandum. “But for the alert, swift, and professional actions of Chicago Police officers who observed the defendant possessing the gun on surveillance video and swiftly took him into custody, the defendant could have caused another all-too-common scene of senseless violence and tragedy.”
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.