Northern District of Illinois

CHICAGO — The owner of a suburban Chicago manufacturing company has been sentenced to 9 months in federal prison and ordered to pay $3,329,701 in restitution to the U.S. Treasury and the Illinois Department of Revenue following his conviction for payroll tax fraud.

In June 2022, EDWARD T. ARNIERI, 71, of St. Charles pleaded guilty to a federal tax offense for withholding approximately $3.9 million dollars in employee payroll taxes and failing to remit the money to the Internal Revenue Service.  Arnieri was the president and sole owner of Lane Tool & Manufacturing Company Inc., located in South Elgin.   Payroll taxes are made up of both contributions by the employer and employee for Social Security and Medicare that are collected and remitted on a quarterly basis; as well as Federal Unemployment Taxes (FUTA) that are paid by the employer annually.  Additionally, as an employer, Arnieri was required to withhold federal income tax from employees’ wages and send those amounts to the U.S. Treasury on a quarterly basis.   For approximately eight years, Arnieri caused his company to issue Forms W-2 and paychecks to its employees which falsely reflected that the company had withheld income and payroll taxes from their wages.  Arnieri’s conduct also resulted in the filing of inaccurate individual tax returns for himself, resulting in additional tax loss of approximately $450,000. 

The sentence was imposed by U.S. District Court Judge Jorge L. Alonso on September 15, 2023.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorney Patrick J. King, Jr.

ROCKFORD — A Byron, Ill. man was sentenced today to fourteen years in federal prison for transportation of child pornography.

OSCAR FLORES-VAZQUEZ, 51, pleaded guilty earlier this year to one count of knowingly transporting child pornography.   U.S. District Judge John Robert Blakey imposed the sentence. Flores-Vazquez was also ordered to pay $8,750.00 in restitution to certain victims.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government was represented by Assistant U.S. Attorney Jessica S. Maveus.

Flores-Vazquez admitted in a plea agreement that he used a peer-to-peer application on his computer to knowingly allow others, including an undercover law enforcement agent, to access files on his computer that Flores-Vazquez knew contained child pornography. In June 2018, Flores-Vazquez knowingly transported child pornography, including a file depicting a minor engaged in sexually explicit conduct. Flores-Vazquez further admitted in the plea agreement that he possessed a laptop that contained more than 600 images of child pornography.

CHICAGO — A federal grand jury in Chicago, Illinois, returned an indictment on February 15, charging the former Vice President and Chief Operating Officer of a Chicago area hospital with three counts of mail fraud and three counts of money laundering.

According to the indictment, beginning in or around December 2013 and continuing until in or around July 2021, ROBERT SPADONI, 58, of Darien defrauded the Chicago area hospital out of approximately $622,500.  Despite being required to comply with the hospital’s conflict of interest policy, which prohibited, among other things, employees and their family members from having a financial interest in an organization doing and seeking to do business with the hospital, Spadoni caused the hospital to enter into a professional services agreement with Medical Education Solutions (MES), a company established by Spadoni.  The contract between the hospital system and MES was for MES to provide administrative support and compliance services to the hospital’s podiatry residency program.

The indictment alleges that, under the terms of the MES agreement, the hospital agreed to pay $6,500 per month for the purported services Spadoni knew would not be provided by MES.  Spadoni concealed, and attempted to conceal, his and a family member’s financial interest in MES, providing a direct report with a $1,500 monthly cash payment in order to perform the administrative support and compliance services that were covered by the MES agreement.  Spadoni and the family member are alleged to have used the remaining funds obtained from the hospital for their own personal benefit and the personal benefit of others.

Arraignment in federal court has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr, Special Agent-in-Charge of the Chicago Field Office of the FBI; and Kwame Raoul, Illinois Attorney General.  The government is represented by Assistant U.S. Attorney Chester Choi.

The public is reminded that an indictment contains only a charge and is not evidence of guilt.  The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each count of mail fraud is punishable by up to 20 years in federal prison and each count of money laundering is punishable by up to 10 years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

ROCKFORD — A former inmate of the United States Penitentiary in Thomson, Ill. was sentenced today to more than seven years in federal prison for assaulting a federal correctional officer.

JOSEPH VAN SACH, 50, was found guilty of the offense on March 15, 2022, following a seven-day jury trial in federal court in Rockford.  

According to evidence at trial, on April 2, 2019, while in custody at USP Thomson, Van Sach forcibly assaulted a correctional officer who was engaged in the performance of his official duties.  Van Sach made physical contact and inflicted bodily injury to the officer.  

U.S. District Judge John Robert Blakey imposed the sentence after a hearing in federal court in Rockford.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government was represented by Assistant U.S. Attorneys Jessica Maveus and Vincenza L. Tomlinson.

CHICAGO — A Chicago resident has been sentenced to eight years in federal prison for setting fire to the Boost Mobile Store located at 809 E. 79th Street in 2019.

In the early morning hours of September 10, 2019, OTHO HARRIS, 63, of Chicago broke the front door of the store, poured gasoline into the building, and set it on fire because he was upset with the store’s response to his broken cellphone.  The day before, on September 9, Harris got into a confrontation with a store employee about the broken cellphone and slammed the phone down onto the ground and exited the store after the employee said the phone could not be repaired.  Harris, who plead guilty to one count of arson in September of 2022, has a lengthy criminal history involving multiple prison sentences for other violent crimes.

On February 9, 2023, U.S. District Judge John J. Tharp, Jr., imposed the 96-month prison sentence.  The court also ordered Harris to pay $195,701 in restitution for the extensive damage the fire caused to the Boost Mobile store.

The sentence is announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffery L. Matthews, Acting Special Agent-in-Charge of the Chicago office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department.  Assistant U.S. Attorney Prashant Kolluri represented the government.

ROCKFORD — A Morrison, Ill. man pleaded guilty in federal court before U.S. District Judge Iain D. Johnston to embezzling from a labor organization. 

BRENT TOPPERT, 42, was the elected Financial Secretary-Treasurer of Local 238 of the Security, Police, and Fire Professionals of America (SPFPA).  The SPFPA represented members engaged in providing security at a nuclear plant in Cordova, Ill.  Toppert admitted in a plea agreement that in 2018 he made an unauthorized withdrawal of $500 from a bank account owned by the SPFPA, and that the withdrawal was not for any business purpose.  Toppert admitted that he converted this money to his personal use.

The government alleged in the plea agreement that Toppert converted a total of $63,713.14 of the SPFPA’s assets to his personal use.

Toppert faces a maximum sentence of five years’ imprisonment.  The actual sentence will be determined by the U.S. District Court, guided by the Sentencing Guidelines.  Sentencing is set for June 6, 2023 at 1:30 p.m. 

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Thomas Murray, District Director of the U.S. Department of Labor – Office of Labor Management Standards.  The government is represented by Assistant U.S. Attorney Michael D. Love.

CHICAGO — A man who helped lead a multi-year fraud scheme carried out by individuals in the United States and Nigeria has been sentenced to more than seven years in federal prison. 

OLANIYI NASIRU OJIKUTU, a 39-year-old legal permanent resident of the U.S., who was born in Nigeria and was residing in Chicago at the time of the crimes, was one of ten individuals indicted as the result of “Operation Gold Phish,” a Chicago-based investigation which identified a variety of cyber-enabled scams primarily targeting elderly victims.  The schemers built trust with victims through a purported online romance before convincing the victims to send money.  The victims were contacted via websites such as Match.com, Facebook, and Instagram.

After being notified of the charges against him in May of 2019, Ojikutu fled via bus to Canada but was apprehended seven months later.  He was turned over to United States authorities in January 2020 and pled guilty to one count of wire fraud in July 2022.

Over the course of approximately three years, Ojikutu opened approximately 25 bank accounts in his own name, a fake name, and a shell company name through which approximately $3.4 million in fraudulently obtained proceeds were transferred.  Ojikutu used the fraudulently obtained funds for his own personal benefit, including to purchase vehicles in the United States and ship them to Nigeria for resale.  As the result of Ojikutu’s actions, some victims lost hundreds of thousands of dollars.

On February 8, 2023, U.S. District Judge John Robert Blakey imposed an 88-month prison sentence for Ojikutu.  All but one of the nine defendants in U.S. custody have pled guilty in this case.  The alleged leader, DANIEL SAMUEL ETA, also known as “Captain” and “Etaoko,” 35, of Skokie has plead not guilty and his case is still pending.

The sentence is announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Kai Pickens, Acting Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.  Valuable assistance was provided by the Nigerian Economic and Financial Crimes Commission.  Assistant U.S. Attorney Charles W. Mulaney represented the government.

The FBI estimates that approximately 24,000 people lost more than $956 million in romance scams in 2021 alone. For tips on how to protect yourselves and your loved ones, visit the Federal Trade Commission’s romance scam webpage. To report a suspected romance fraud, file a report via the FBI’s Internet Crime Complaint Center at www.ic3.gov.

CHICAGO — A Chicago investment advisor has been indicted on federal fraud charges for allegedly swindling three clients out of approximately $683,000.

DAVID SHELDON WELLS, 32, of Chicago, was charged with three counts of wire fraud in an indictment returned Wednesday in U.S. District Court in Chicago.  Arraignment is set for today at 2:00 p.m. before U.S. Magistrate Judge Heather K. McShain.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Douglas Zloto, Special Agent-in-Charge of the U.S. Secret Service Chicago Field Office.  Valuable assistance was provided by the U.S. Securities and Exchange Commission.  The government is represented by Assistant U.S. Attorney Brian Havey.

According to the indictment, Wells worked as an investment advisor in the Chicago branch of a subsidiary of a Midwestern bank.  In 2020 and 2021, Wells falsely represented to three clients, including two elderly men suffering from dementia, that he would invest their money in publicly traded companies.  Based on the false representations, the clients sent him checks made payable to “Wayne and Stark,” which Wells claimed was a publicly traded company.  In reality, Wayne and Stark was a shell company set up and solely controlled by Wells, the indictment states. 

Wells used the clients’ funds for his personal use, including rent and unauthorized trading in high-risk options contracts, the indictment states.  Wells lost or otherwise spent all of the clients’ funds, the indictment states.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each count of wire fraud is punishable by up to 20 years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A man has been sentenced to eight years in federal prison for illegally possessing a loaded semiautomatic handgun, cocaine, and heroin in a Chicago suburb.

QUINCY J. ARNOLD illegally possessed the gun and drugs on Oct. 17, 2020, in Bellwood, Ill.  Bellwood Police officers pulled over Arnold’s vehicle for a traffic infraction near a mall parking lot.  The officers discovered the loaded gun concealed under the floor mat of the driver’s seat, within reaching distance of Arnold.  Officers further discovered in Arnold’s possession the cocaine and heroin, which were packaged for sale in more than 360 individual baggies.  Arnold admitted in a plea agreement that he intended to distribute the narcotics to others. 

Arnold had previously been convicted of multiple felonies in state court and was not legally allowed to possess a firearm.

Arnold, 49, of Bellwood, Ill., pleaded guilty last year to federal firearm and drug charges.  U.S. District Judge Jorge L. Alonso imposed the sentence Tuesday after a hearing in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Jiminez Allen, Chief of the Bellwood Police Department.  Assistant U.S. Attorney Charles W. Mulaney represented the government.

Holding illegal firearm possessors and drug traffickers accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy.  In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm and drug offenses.

The Justice Department announced today that the village of Hinsdale, Ill., has agreed to pay $800,000 to settle a lawsuit alleging that the village violated the Fair Housing Act when it refused to allow the operation of a sober living home for persons in recovery from drug and alcohol addiction in a residential neighborhood.

The settlement, which still must be approved by the U.S. District Court for the Northern District of Illinois, resolves a lawsuit that the Department filed in November 2020. This settlement also resolves a related suit brought by the sober living home’s owner and operator, Trinity Sober Living LLC. 

“Individuals with disabilities, including those recovering from drug and alcohol addiction, should not be excluded from living in residential neighborhoods,” said John R. Lausch Jr., United States Attorney for the Northern District of Illinois. “Such discrimination by local governments is forbidden under the Fair Housing Act.”

“Local governments do not have the right to use zoning laws and restrictions as a vehicle to discriminate against people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Department of Justice is committed to vigorous enforcement of federal law to ensure that individuals in recovery have access to the housing and support they need to maintain their sobriety and lead productive lives.”

The Department’s lawsuit alleged that the village of Hinsdale violated the Fair Housing Act after it denied a reasonable accommodation request by Trinity Sober Living LLC to operate a sober living home with ten residents and a house manager in a residential neighborhood. The complaint alleged that, one day after Trinity requested an accommodation, the village sued Trinity in state court for violations of the zoning code, including that the home was a “commercial use” and would have more than three unrelated adults.

Under the settlement, the village will amend its zoning ordinance to comply with federal anti-discrimination laws, including permitting homes for persons with disabilities in residential districts, with the same size limitations applied to families of similar size, and implementing a reasonable accommodation policy. The village will also pay $790,000 in monetary damages to Trinity as well as a civil penalty of $10,000 to the United States. The village also agreed to take a number of other actions to guard against housing discrimination, including training village officials and employees about their obligations under federal law, designating a fair housing compliance officer and reporting periodically to the Justice Department.

The government is represented by Assistant U.S. Attorneys Kathleen Flannery and Patrick Johnson of the Northern District of Illinois, as well as attorneys from the Department of Justice’s Civil Rights Division. 

The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-833-591-0291 or submit a report online at civilrights.justice.gov. Individuals may also contact HUD at 1-800-669-9777 or  https://www.hud.gov/program_offices/fair_housing_equal_opp. Individuals may also report housing discrimination, and other forms of discrimination against persons with disabilities, to the U.S. Attorney’s Office in Chicago at (312) 353-5300.

CHICAGO — Two California attorneys were indicted today on federal fraud charges for allegedly misappropriating more than $3 million in settlement funds intended for relatives of victims killed in the crash of Lion Air Flight 610.

An indictment returned in U.S. District Court in Chicago charges attorneys THOMAS V. GIRARDI, 83, of Pasadena, Calif., and DAVID R. LIRA, 62, of Pasadena, Calif., both of whom worked for the California law firm Girardi Keese, with eight counts of wire fraud and four counts of criminal contempt of court.  The indictment also charges a third defendant, CHRISTOPHER K. KAMON, 49, of Palos Verdes, Calif., and Encino, Calif., who worked as Girardi Keese’s head of accounting and finance, with the same offenses.  Arraignments in federal court in Chicago have not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorneys Corey B. Rubenstein and Emily Vermylen.

“The substantial misappropriation alleged in this indictment compounded the grief and anguish of the clients who lost loved ones in the Lion Air crash,” said U.S. Attorney Lausch.  “Attorneys who violate the trust of their clients and breach a fiduciary duty that is paramount to the practice of law must be held accountable.” 

“The victims of this crime placed their faith in their attorneys during a time of great vulnerability,” said FBI SAC Wheeler.  “Taking advantage of victims of tragedy is a despicable act, and we will continue to seek justice for anyone who takes advantage of innocent Americans in their hour of need.”

According to the indictment, Girardi and Lira, through Girardi Keese, represented five clients who were relatives of passengers killed in the 2018 crash in the Java Sea.  Girardi Keese filed lawsuits in federal court in Chicago against the plane’s manufacturer, Boeing Co., and settled the suits in 2020.  Boeing’s counsel wired the settlement funds to Girardi Keese’s trust account, with most of the money intended for the clients.  The charges allege that Girardi, Lira, and Kamon misappropriated more than $3 million of the settlement funds by diverting the money for improper purposes, including paying the firm’s payroll and operating expenses, and funding settlements to other Girardi Keese clients, whose own settlement funds had been misappropriated by the firm.

Girardi, Lira, and Kamon fraudulently attempted to conceal their misappropriation from the clients, the indictment states.  At one point they falsely told the clients that the Covid‑19 pandemic prevented the firm from distributing the settlement funds, while at other times they falsely claimed that “serious issues” had arisen with Boeing that delayed the distributions, the indictment states.  The defendants made the false claims knowing Girardi Keese had already received the settlement funds from Boeing, the indictment states.

The indictment seeks forfeiture from the defendants in the amount of $3,069,500.

The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.  Each count of wire fraud is punishable by up to 20 years in federal prison, while the maximum penalty for each contempt count is determined by the Court.

WASHINGTON – Today, the Justice Department and U.S. Environmental Protection Agency (EPA) announced a settlement with Logan Square Aluminum Supply Inc., resolving alleged violations of the federal Lead Renovation, Repair and Painting regulations, known as the RRP rule, at renovation projects Logan Square and its contractors performed in Chicago and Chicago suburbs.

Under the court settlement, Logan Square will implement a comprehensive program to ensure that its contractors are certified and trained to use lead-safe work practices to avoid creating lead dust during home renovation activities. Under a parallel administrative settlement agreement, Logan Square will also pay a $400,000 penalty, and perform $2 million of lead-based paint abatement work in lower-income properties located in Chicago and Chicago suburbs in communities with a higher incidence of childhood lead poisoning.

“Companies that renovate homes built before 1978 must ensure that they hire EPA-certified contractors and follow other EPA rules requiring lead safe work practices,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will take aggressive action against companies that do not take these important steps.”

“Lead exposure from lead-based paint continues to be a hazard for American families living in older homes, and children in those homes are particularly vulnerable,” said Larry Starfield, EPA Acting Assistant Administrator for the Office of Enforcement and Compliance Assurance. “This settlement requires Logan Square Aluminum Supply, Inc. to take necessary steps to ensure that it meets appropriate safety requirements in future renovation projects that may disturb lead-based paint.”

Renovation is any activity that disturbs painted surfaces and includes most repair, remodeling, and maintenance activities, such as electrical work, plumbing, carpentry and window replacement. Both Logan Square and its contractors are responsible for compliance with the RRP rule to protect the health and safety of families, especially children under the age of six who are most susceptible to lead hazards. For these projects, Logan Square must contract with only EPA-certified firms and renovators, ensure they maintain certification, use lead-safe work practices, and document their work with checklists during renovations.

Logan Square will add a link on its website to EPA’s content on lead-safe work practices. In addition, Logan Square will take action to respond to situations where a contractor is not operating in compliance with the RRP rule; investigate all reports of potential noncompliance; and ensure that any violations are corrected and reported to EPA.

EPA first discovered the alleged violations through customer complaints about a project performed in Evanston, Illinois. EPA learned that Logan Square frequently subcontracted work to uncertified firms and did not use lead-safe work practices, perform required post-renovation cleaning, provide the EPA-required lead-based paint pamphlets to occupants, or establish records of compliance. Logan Square also conducts business under other names, including Climate Guard Thermal Products Co. and Studio 41.

The consent decree was lodged in the U.S. District Court for the Northern District of Illinois. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. View the consent decree here. 

Further information is available from the National Lead Information Center (800-424-LEAD) and online at www.epa.gov/lead. Available resources include additional information about the RRP program; information for contractors and property managers about program requirements; and downloadable lead-safety education materials.

To report a possible violation of the RRP Rule requirements, please visit EPA’s website.

CHICAGO — A suburban Chicago man has been arrested on federal child pornography charges for allegedly enticing a minor to produce sexually explicit images.

TERCALO E. THOMAS, 32, of Park Forest, Ill., is charged with two counts of production of child pornography and one count of possession of an electronic device containing child pornography, according to an indictment returned in U.S. District Court in Chicago.  Thomas is currently detained in law enforcement custody.  He pleaded not guilty to the charges during his arraignment today before U.S. Magistrate Judge Gabriel A. Fuentes.

According to the indictment, Thomas produced the child pornography after inducing and enticing the minor to engage in sexually explicit conduct.  He also possessed a cell phone that contained images of a prepubescent minor who had not attained 12 years of age, the indictment states.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorney Elly Peirson.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each production count is punishable by a minimum sentence of 15 years in federal prison and a maximum of 30 years.  The possession count carries a maximum sentence of ten years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678.  The service is available 24 hours a day, seven days a week.

CHICAGO — A Chinese national was sentenced today to eight years in federal prison for acting illegally within the United States as an agent of the People’s Republic of China.

A jury in the Northern District of Illinois last year convicted JI CHAOQUN, 31, on one count of conspiracy to act as an agent of a foreign government, specifically the People’s Republic of China, without first notifying the Attorney General; one count of acting as an agent of the People’s Republic of China without first notifying the Attorney General; and one count of making a material false statement to the U.S. Army.  U.S. District Judge Ronald A. Guzman imposed the sentence.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Matthew G. Olsen, Assistant Attorney General for National Security at the U.S. Department of Justice; and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The U.S. Army 902nd Military Intelligence Group provided valuable assistance.  The government was represented by Assistant U.S. Attorneys Vikas Didwania and Barry Jonas of the Northern District of Illinois, and Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Control Section.

Evidence presented at trial revealed that Ji worked at the direction of high-level intelligence officers in the Jiangsu Province Ministry of State Security, a provincial department of the Ministry of State Security for the People’s Republic of China.  Ji, a Chinese citizen residing in Chicago, was tasked by Xu Yanjun, a Deputy Division Director within the Ministry of State Security, with providing biographical information on certain individuals for possible recruitment by the JSSD.  The individuals included Chinese nationals who were working as engineers and scientists in the United States, some of whom worked for U.S. defense contractors.  This tasking was part of an effort by the Jiangsu provincial department to obtain access to advanced aerospace and satellite technologies being developed by companies within the U.S.  Xu was sentenced last year to 20 years in federal prison after being convicted in the Southern District of Ohio of conspiracy and attempting to commit economic espionage and theft of trade secrets.

In 2016, Ji enlisted in the U.S. Army Reserves under the Military Accessions Vital to the National Interest program, which authorized the U.S. Armed Forces to recruit certain legal aliens whose skills are considered vital to the national interest.  In his application to participate in the MAVNI program, Ji falsely stated that he had not had contact with a foreign government within the past seven years.  In a subsequent interview with a U.S. Army officer, Ji again failed to disclose his relationship and contacts with a foreign intelligence officer. 

Evidence at trial further revealed that in 2018 Ji had several meetings with an undercover law enforcement agent who was posing as a representative of the Ministry of State Security.  During these meetings, Ji explained that with his military identification, he could visit and take photos of “Roosevelt-class” aircraft carriers.  Ji also explained that once he obtained his U.S. citizenship and security clearance through the MAVNI program, he would seek a job at the CIA, FBI, or NASA.  Ji intended to perform cybersecurity work at one of those agencies so that he would have access to their databases, including databases that contained scientific research.

A Chinese national was sentenced today to eight years in prison for acting illegally within the United States as an agent of the People’s Republic of China.

A jury in the Northern District of Illinois last year convicted Ji Chaoqun, 31, on one count of conspiracy to act as an agent of a foreign government, specifically the People’s Republic of China, without first notifying the Attorney General; one count of acting as an agent of the People’s Republic of China without first notifying the Attorney General; and one count of making a material false statement to the U.S. Army. U.S. District Judge Ronald A. Guzman imposed the sentence.

Evidence presented at trial revealed that Ji worked at the direction of high-level intelligence officers in the Jiangsu Province Ministry of State Security, a provincial department of the Ministry of State Security for the People’s Republic of China. Ji, a Chinese citizen residing in Chicago, was tasked by Xu Yanjun, a Deputy Division Director within the Ministry of State Security, with providing an intelligence officer with biographical information on certain individuals for possible recruitment by the JSSD. The individuals included Chinese nationals who were working as engineers and scientists in the United States, some of whom worked for U.S. defense contractors. This tasking was part of an effort by the Jiangsu provincial department to obtain access to advanced aerospace and satellite technologies being developed by companies within the U.S. Xu was sentenced last year to 20 years in federal prison after being convicted in the Southern District of Ohio of conspiracy and attempting to commit economic espionage and theft of trade secrets.

In 2016, Ji enlisted in the U.S. Army Reserves under the Military Accessions Vital to the National Interest program, which authorized the U.S. Armed Forces to recruit certain legal aliens whose skills are considered vital to the national interest. In his application to participate in the MAVNI program, Ji falsely stated that he had not had contact with a foreign government within the past seven years. In a subsequent interview with a U.S. Army officer, Ji again failed to disclose his relationship and contacts with a foreign intelligence officer.

Evidence at trial further revealed that in 2018 Ji had several meetings with an undercover law enforcement agent who was posing as a representative of the Ministry of State Security. During these meetings, Ji explained that with his military identification, he could visit and take photos of “Roosevelt-class” aircraft carriers. Ji also explained that once he obtained his U.S. citizenship and security clearance through the MAVNI program, he would seek a job at the CIA, FBI or NASA. Ji intended to perform cybersecurity work at one of those agencies so that he would have access to all their databases, including databases that contained scientific research.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois and Special Agent in Charge Robert W. “Wes” Wheeler Jr. of the FBI Chicago Field Office made the announcement.

The FBI investigated the case, with valuable assistance provided by the U.S. Army 902nd Military Intelligence Group.

Assistant U.S. Attorneys Vikas Didwania and Barry Jonas for the Northern District of Illinois, and Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.

CHICAGO — A man has been sentenced to nearly eight years in federal prison for illegally possessing a loaded semiautomatic handgun and resisting police during a traffic stop in Chicago.

DEONTA CARSON, 26, of Chicago, illegally possessed the gun on the afternoon of March 2, 2020, in the Englewood neighborhood on Chicago’s South Side.  Chicago Police officers pulled over Carson’s vehicle for having a broken taillight near the intersection of West 71st Street and South Morgan Street.  Carson resisted officers’ commands to get out of the car, and then struggled with the officers when they tried to remove him.  As one of the officers pulled Carson from the vehicle, the gun fell to the ground.

Carson had previously been convicted in state court of multiple felonies and was not legally allowed to possess a gun.  He was on parole for a vehicular hijacking conviction at the time of the federal offense.

Carson pleaded guilty in the federal case to a charge of illegal firearm possession.  U.S. District Judge Ronald A. Guzman imposed a prison sentence of seven years and eleven months after a hearing Jan. 19, 2023, in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department.

“It is not acceptable for felons to carry guns under any circumstances,” Assistant U.S. Attorney Charles W. Mulaney argued in the government’s sentencing memorandum.  “Had the officers not been so experienced or skilled, the struggle could have resulted in much greater harm to themselves or defendant.”

Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy.  In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.

ROCKFORD — A Rockford man has been sentenced to nearly six years in federal prison for illegally possessing a firearm as a previously convicted felon. 

U.S. District Judge Iain D. Johnston on Thursday sentenced BRANDON L. DISHMAN, 33, to 70 months in prison.  Dishman pleaded guilty last year to a federal charge of illegal possession of a firearm.

On Dec. 21, 2020, Dishman possessed a loaded .45-caliber pistol while riding in a vehicle.  The Rockford Police Department attempted to conduct a traffic stop of the vehicle.  As it slowed down and stopped, Dishman exited the vehicle and fled on foot in a residential neighborhood.  Dishman, ignoring officers’ commands to stop, dropped the gun as he ran.  After a brief chase, Dishman was apprehended by the police and taken into custody.  The loaded pistol was recovered in the front yard of a residence in the neighborhood.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; and Carla Redd, Chief of the Rockford Police Department.  The government was represented by Assistant U.S. Attorney Michael Beckman.

Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy.  In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.

CHICAGO — A man has been sentenced to nearly six years in federal prison for illegally possessing a loaded semiautomatic handgun during a period of civil unrest in Chicago in 2020.

RICKY GREEN, 28, of Chicago, illegally possessed the gun on the night of May 31, 2020, in the Lake View neighborhood on Chicago’s North Side.  Green and other individuals attempted to break into a Target store in the 3300 block of North Ashland Avenue.  When Chicago Police officers arrived at the scene, Green and the others fled in vehicles.  After a brief chase on Lincoln Avenue, the vehicle in which Green was riding became disabled.  Green ran off on foot and placed a bag containing the gun behind a broom and dustpan in a residential gangway.  He then jumped a fence and tried to hide under the stairs of a residence in the 1300 block of West Wellington Avenue, but was apprehended by police officers, who then discovered the bag with the gun in it.

Green had previously been convicted in state court of multiple felonies, including a firearm offense, and was not legally allowed to possess the gun.  He was on parole for his most recent felony conviction at the time of the federal offense.

A jury last year convicted Green on a federal charge of illegal firearm possession.  U.S. District Judge Manish S. Shah on Thursday imposed a prison sentence of five years and nine months.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and David Brown, Superintendent of the Chicago Police Department.

“The defendant made a calculated decision to carry the gun while committing another serious crime, attempted burglary,” Assistant U.S. Attorneys Corey B. Rubenstein and Sushma Raju argued in the government’s sentencing memorandum.  “He brought that gun into the chaos accompanying the pervasive looting and vandalism.  The defendant’s deliberate decision to use the cover of that historic crisis to engage in his armed offense is particularly reprehensible.”

Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy.  In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.

CHICAGO — Two police officers in Phoenix, Ill., conspired to steal cash and drugs from occupants of vehicles during traffic stops in exchange for offering to withhold criminal charges or take other official actions, according to a federal indictment.

Patrol Officer ANTOINE LARRY and Sergeant JARRETT SNOWDEN served on the Phoenix Police Department.  An indictment returned Thursday in U.S. District Court in Chicago alleges that Larry and Snowden engaged in a criminal conspiracy from 2020 to 2022.  The pair conspired to steal cash, drugs, and other items from vehicle occupants by offering to reduce or withhold criminal charges, decline to tow the vehicles, or release the cars from impoundment, the indictment states.  In some instances, Larry and Snowden agreed to sell stolen drugs to a dealer and then split the proceeds amongst themselves, the indictment states.  To conceal their thefts, Larry and Snowden falsified police reports so that the reports did not reflect the seized items, the charges allege.

The indictment charges Larry, 46, of Bolingbrook, Ill., with conspiracy, extortion, and attempted extortion.  Snowden, 34, of Lansing, Ill., is charged with conspiracy and attempted extortion.  Arraignments in federal court in Chicago have not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorneys Sean J.B. Franzblau and Alexandra Morgan.

The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

The conspiracy charge is punishable by a maximum sentence of five years in federal prison, while extortion and attempted extortion are each punishable by up to 20 years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines. 

CHICAGO – A Chicago-area businesswoman has been indicted on federal charges for allegedly fraudulently obtaining more than $440,000 in small business loans and grants under the federal Coronavirus Aid, Relief, and Economic Security Act and a State of Illinois pandemic-relief program.

KIMBERLY RAY-DUNCAN, 54, of South Holland, Ill., allegedly engaged in fraud related to the federal Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL), and the Illinois Back to Business Grant Program.  An indictment returned in the Northern District of Illinois alleges that Ray-Duncan used the fraud proceeds to purchase, among other things, a Regal 35 Sport Coupe yacht, purses by Prada, Gucci, and Saint Laurent, red leather dog collars by Gucci, sunglasses by Burberry, Gucci, Giorgio Armani, and Prada, and scarves by MCM, Louis Vuitton, Saint Laurent, Gucci, and Prada.

The indictment charges Ray-Duncan with six counts of wire fraud, three counts of money laundering, and two counts of engaging in monetary transactions involving criminally derived property.  Arraignment is set for Jan. 19, 2023, at 1:00 p.m., before U.S. Magistrate Judge Heather K. McShain.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The U.S. Small Business Administration participated in the investigation.  The government is represented by Assistant U.S. Attorneys Maureen Merin and Anne L. Yonover.

Pursuant to the CARES Act, a PPP loan allows the interest and principal to be forgiven if businesses spend a certain amount of the proceeds on essential expenses, such as payroll and rent, while the EIDL Program provides loan assistance or grants to cover working capital and other operating expenses.  Under the Illinois Department of Commerce and Economic Opportunity’s Back to Business Grant Program, small businesses could apply for grants to cover lost revenue due to economic disruptions related to the Covid-19 pandemic.

According to the indictment, Ray-Duncan applied for and obtained loans and grants for numerous companies that she purportedly operated, including the K Ray-Duncan Assembly Company and An AlKymAri Production LLC.  Ray-Duncan made various false representations in her applications regarding the companies’ operations, number of employees, or revenue figures, the indictment states.  Some of the purported businesses did not actually exist, the charges allege.  Ray-Duncan attempted to substantiate the fraudulent representations by falsely preparing IRS forms and bank statements, the indictment states.

The public is reminded that an indictment contains only charges and is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each count of wire fraud and money laundering is punishable by up to 20 years in federal prison, while the maximum sentence for each monetary transaction count is ten years.   If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

Anyone with information about attempted fraud involving Covid-19 can report it to the Department of Justice by calling the National Center for Disaster Fraud at (866) 720-5721, or by filing an online complaint at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

CHICAGO — A man has been indicted on a federal racketeering charge for allegedly murdering a teenage girl to maintain and increase his position in a violent Chicago street gang.

PATRICK JOHNSON, 27, of Chicago, is charged with one count of murder in aid of racketeering.  An indictment returned Thursday in U.S. District Court in Chicago accuses Johnson of murdering Veronica Lopez on May 28, 2016, for the purpose of maintaining and increasing Johnson’s position in the Milwaukee Kings street gang.  Lopez, 15, was fatally shot while riding in a sport-utility vehicle on DuSable Lake Shore Drive in Chicago.

Johnson was arrested this morning and remains detained in federal custody.

The indictment and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorneys Prashant Kolluri and Caitlin Walgamuth.

The indictment alleges that the Milwaukee Kings is a criminal organization whose members and associates engaged in narcotics trafficking and committed acts of violence, including murder and assault, to acquire and preserve the gang’s territory on the North Side of Chicago.  Members of the gang intimidated rival gang members and others through acts and threats of violence, according to the indictment.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Murder in aid of racketeering is punishable by a mandatory sentence of life in prison, and the death penalty is also possible.   If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — The former payroll manager for a Chicago museum has been indicted on federal fraud charges for allegedly misappropriating more than $2 million in museum funds.

An indictment returned Thursday in U.S. District Court in Chicago accuses MICHAEL MAURELLO of fraudulently obtaining the museum funds from 2007 to 2020.  Maurello caused the museum to deposit money into his personal bank accounts by designating the payments in the payroll system as having been made to other employees or former employees, the indictment states.  When the museum’s assistant controller asked Maurello in January 2020 about one of the payments, Maurello falsely stated that the transaction had been a test of the payroll system, the indictment states.  Maurello then edited and altered a report from the museum’s payroll system to conceal information about the misappropriated funds, including by falsely changing the employees’ names and the dates and dollar amounts of the payments, the indictment states.

The indictment charges Maurello, 56, of Beach Park, Ill., with two counts of wire fraud and two counts of bank fraud.  Arraignment in federal court in Chicago has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorney Corey B. Rubenstein.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each count of bank fraud is punishable by up to 30 years in federal prison, while each count of wire fraud carries a maximum of 20 years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

ROCKFORD — A federal judge has sentenced a Rockford man to more than five years in federal prison for illegally possessing a firearm in Rockford.

U.S. District Judge Iain D. Johnston on Friday sentenced MARCUS CLAY, 23, to five years and two months in prison.  Clay pleaded guilty in September 2022 to a charge of illegal firearm possession.  As a previously convicted felon, Clay was prohibited by federal law from possessing firearms.  Clay admitted in a plea agreement that while in Rockford on Oct. 27, 2021, he possessed a loaded handgun with an extended magazine.  The magazine was loaded with an additional 29 rounds of ammunition.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, and Carla Redd, Chief of the Rockford Police Department.  The government was represented by Special Assistant U.S. Attorney Theodora Anderson, a prosecutor with the Winnebago County State’s Attorney’s Office who is working with the U.S. Attorney’s Office under a federal grant to prosecute certain firearm offenses in federal court.

Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy.  In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.

CHICAGO — A member of a Chicago street gang has been sentenced to nearly five years in federal prison for illegally possessing a machine gun and participating in a shootout with rival gang members on a city sidewalk.

WILLIE GLENN, 25, of Chicago, illegally possessed the firearm on June 21, 2021, while sitting in the driver’s seat of a stolen Infiniti sedan in the Auburn Gresham neighborhood on Chicago’s South Side.  The .40-caliber handgun was equipped with a conversion device known as a “Glock switch” or “auto sear,” making it capable of automatically firing more than one shot with a single pull of the trigger.  Glenn had previously been convicted in state court of a felony firearm offense and was prohibited by federal law from possessing the gun.

U.S. District Judge John Robert Blakey on Dec. 20, 2022, sentenced Glenn to 57 months in federal prison.  In addition to the illegal firearm possession, Judge Blakey found that Glenn fired a shot during a shootout with rival gang members on Dec. 22, 2018.  A man in the defendant’s group was wounded in the shootout, which occurred on a sidewalk in the East Beverly neighborhood on Chicago’s South Side.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and David Brown, Superintendent of the Chicago Police Department.  The government was represented by Assistant U.S. Attorney Charles W. Mulaney.

Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy.  In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.

CHICAGO — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today provided an update on federal prosecutions and strategies to combat violent crime in Chicago and the surrounding area.

“A fundamental duty of our government is to keep people safe, and the U.S. Attorney’s Office is using every available law enforcement tool to do that,” said U.S. Attorney Lausch.  “We are committed to investigating and prosecuting violent offenders and bringing quality, impactful cases to disrupt the cycle of violent crime in Chicago.” 

The centerpiece of the Department of Justice’s violent crime reduction efforts continues to be Project Safe Neighborhoods (PSN).  Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems and develop comprehensive solutions to address them.  PSN is an evidence-based program that focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs to pursue lasting reductions in crime.

The U.S. Attorney’s Office in Chicago leads the Chicago Firearms Trafficking Strike Force, one of five Department of Justice cross-jurisdictional strike forces designed to disrupt illegal firearms trafficking and reduce gun violence.  The U.S. Attorney’s Office collaborates with the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to stem the supply of illegally trafficked firearms and to identify patterns, leads, and potential suspects in violent gun crimes.  The Chicago strike force’s efforts have been substantially enhanced by the Chicago Police Department’s (CPD’s) Gun Investigations Team.

“Firearms traffickers and straw purchasers enable violence,” said U.S. Attorney John R. Lausch, Jr.  “The Chicago Firearms Trafficking Strike Force has strengthened collaboration between our federal, state, and local law enforcement partners and enhanced our longstanding efforts to hold accountable individuals or groups who illegally traffic firearms into Chicago.”

In addition to a sustained focus on prosecutions of federal firearm offenses, the U.S. Attorney’s Office endeavors to disrupt violent crime by seeking pre-trial detention for defendants who pose a danger to the community and pursuing appropriate prison sentences to deter dangerous individuals from continuing to cause violence in their communities. 

Following up on activities most recently reported in May of this year, the U.S. Attorney’s Office remains active in fighting violent crime through enforcement actions, prosecutions, and community partnerships, as illustrated by the below examples from the past six months.

Enforcement Actions and Prosecutions

The U.S. Attorney’s Office works closely with U.S. law enforcement agencies, including ATF, Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), Postal Inspection Service (USPIS), Internal Revenue Service Criminal Investigation Division (IRS-CI), and U.S. Marshals Service (USMS), to investigate and prosecute a variety of violent crimes.  State and local partners in this effort include CPD, Illinois State Police (ISP), Illinois Department of Corrections (IDOC), Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, Rockford Police Department (RPD), Winnebago County State’s Attorney’s Office, and other police departments and prosecutors’ offices throughout northern Illinois.  The U.S. Attorney’s Office and many of these law enforcement agencies participate in the Organized Crime Drug Enforcement Task Forces Program (OCDETF), which identifies, disrupts, and dismantles the highest-level criminal networks by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies. 

The primary focus of these collaborative law enforcement efforts is to investigate and prosecute gangs and other groups of individuals who work in concert to commit violent crimes, including murders, attempted murders, robberies, carjackings, drug trafficking, and firearms trafficking.  In addition, enforcement efforts also identify for potential federal prosecution individual offenders who drive violence.

Firearm and violent crime investigations in Chicago have been bolstered by an important tool from ATF – the National Integrated Ballistic Information Network (NIBIN).  NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms.  NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles.  Federal, state, and local law enforcement in Chicago have used NIBIN to help solve violent crimes and prosecute trigger-pullers and other gun offenders. 

Racketeering and Gang-Related Prosecutions

“Combating the unacceptable level of gang violence in Chicago has been and will continue to be a top priority in our office,” said U.S. Attorney Lausch.

• After a two-month trial, a jury convicted the leader of the Wicked Town faction of the Traveling Vice Lords street gang and another member of the gang on racketeering conspiracy and firearm charges.  The jury found that gang leader DONALD LEE, of Chicago, committed three murders and supplied the firearms used in three other killings, while TORANCE BENSON, of Chicago, committed a murder and three attempted murders.  Lee faces a mandatory sentence of life in prison.  Lee and Benson were among 13 defendants charged as part of a multi-year investigation.  The other eleven defendants pleaded guilty prior to trial, with one being sentenced to 50 years in prison.  The others are awaiting sentencing.  ATF and CPD led the probe, with assistance from the FBI, IRS-CI, ISP, DEA, Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, and the Chicago High Intensity Drug Trafficking Area program (HIDTA), which addresses narcotics-related issues by collaborating with law enforcement and treatment and prevention partners.
• PIERRE ROBINSON, of Chicago, was convicted of committing murder in aid of racketeering.  Robinson fatally shot a man in a convenience store on the South Side of Chicago to maintain and increase Robinson’s position in the “Evans Mob,” a violent street gang.  Robinson faces a mandatory sentence of life in prison.  ATF and CPD led the investigation.
• A member of the Four Corner Hustlers street gang was sentenced to 35 years in federal prison for engaging in a pattern of racketeering activity that included multiple murders, armed robberies, drug trafficking, and extortion. TREMAYNE THOMPSON, of Chicago, admitted that he fatally shot two victims after receiving instructions from a gang leader.  Thompson was one of nine defendants convicted as part of an investigation led by ATF, HSI, and CPD.

Firearms Trafficking Prosecutions

“We are using every available federal law enforcement tool to continue to bring impactful cases that hold firearm traffickers accountable and reduce violent crime in Chicago,” said U.S. Attorney Lausch.

• JAMEL DANZY, of Hammond, Ind., was sentenced to two and a half years in prison for conspiring to “straw purchase” a handgun that was used to fatally shoot Chicago Police Officer Ella French and seriously wound her partner.  Danzy bought the gun from a licensed dealer in Indiana on behalf of a convicted felon whom Danzy knew resided in Illinois and was not lawfully allowed to purchase a gun.  The handgun was discovered by law enforcement at the scene of the shooting of the two officers.  ATF and CPD investigated.
• A Freeport, Ill., woman pleaded guilty to firearm charges for “straw purchasing” multiple guns for a convicted felon whom she knew could not legally purchase the guns.  FELICYA KNOX faces a maximum sentence of ten years in prison.  ATF investigated the case, with assistance from the Stephenson County Sheriff’s Office and Freeport Police Department.
• ROBERTO PRIETO, of Chicago, was sentenced to ten years in prison for trafficking at least five firearms and illegally possessing guns as a previously convicted felon.  ATF investigated.
• SCOTT TREECE, of Rockford, was sentenced to seven and a half years in prison for illegally trafficking at least ten firearms from Georgia to Chicago.  Because Treece was a felon during this time, he used straw purchasers to purchase the guns, including co-defendant KYLE HALL, of Algonquin, Ill.  Hall pleaded guilty and is awaiting sentencing.  ATF led the probe.
• A federal indictment charged RICARDO LARREA, of Whiting, Ind., with conspiring to “straw purchase” 27 firearms in Indiana on behalf of a Chicago resident.  Larrea falsely certified on federal forms that he was the actual buyer of the guns, knowing that the Chicago resident had identified which firearms he wanted and paid Larrea to buy them.  ATF investigated.
• JAVAUGHN A. HIXSON, of Rockford, was sentenced to five and a half years in prison for illegally possessing four firearm “switch” devices.  The device, also known as a “Glock switch,” is designed to convert a firearm into a machine gun capable of automatically firing more than one shot with a single pull of the trigger.  The investigation was conducted by ATF, RPD, and the Winnebago County Sheriff’s Office.
• Machine gun dealer LEONARD D. JOHNSON, of Robbins, Ill., was sentenced to ten years in prison for unlawfully dealing handguns and “switch” devices in the Chicago area.  A court-authorized search of Johnson’s residence turned up 117 “switch” devices and three handguns that had been converted into machine guns, as well as another handgun, a silencer, three extended magazines, and ammunition.  ATF led the probe, with assistance from the Lansing, Ill., Police Department and Midlothian, Ill., Police Department.
• ARSHAD ZAYED, of Orland Hills, Ill., was charged with illegally selling 36 firearms, including personally manufactured “ghost guns” and machine guns.  Many of the transactions occurred in a car wash that Zayed managed in the Chicago suburb of Matteson, Ill.  The investigation was conducted by FBI, ATF, CPD, ISP, and IRS-CI.
• Two Indianapolis men – DEVANTE T. BROWN and COREY SARTIN – were charged with firearm violations for allegedly trafficking ten guns, including four semiautomatic rifles and two “ghost guns,” from Indianapolis to Chicago.  The probe was led by ATF and CPD, with assistance from the Dolton, Ill., Police Department.
• Chicago resident ANTHONY PEREZ-FLORES was charged with trafficking more than a dozen guns, including a “ghost gun” and a machine gun, in Chicago.  Perez-Flores was on parole for a state firearm conviction when he allegedly sold the guns to an undercover officer.  ATF, CPD, and the Cook County Sheriff’s Office investigated.

Carjacking Prosecutions

“Our message to would-be carjackers is simple: Committing a senseless act of violence like carjacking will earn you a home in federal prison for a long time,” said U.S. Attorney John R. Lausch, Jr.  “We are working closely with our law enforcement partners to pursue, prosecute, and detain violent carjackers.”

• MONTE HANDLEY, of Chicago, was charged with stealing a Nissan Sentra in the Archer Heights neighborhood on Chicago’s Southwest Side.  A woman and a one-year-old child were passengers in the vehicle at the time of the alleged carjacking.  FBI and CPD led the probe, with assistance from ISP. 
• Two Chicago men – EDSON RESENDEZ and MAVERICK CELA – were charged with carjacking vehicles in the Chicago suburbs of Morton Grove, Ill., and Skokie, Ill.  Resendez allegedly brandished a firearm during the carjackings.  The probe was led by FBI, with assistance from the Morton Grove Police Department and Skokie Police Department.
• KEWAN A. TILLMAN, of Calumet City, Ill., was charged with carjacking a vehicle at gunpoint while two children were in the car.  ATF investigated, with assistance from the Posen, Ill., Police Department.
• A federal grand jury indicted NOAH RANSOM, of Chicago, on carjacking and firearm charges for allegedly carjacking a rideshare driver at gunpoint in downtown Chicago.  FBI led the probe, with assistance from the ISP and CPD.
• Chicago resident ELIAS QUINONES-FIGUEROA was sentenced to more than 12 years in prison for stealing a vehicle at gunpoint and striking a bicyclist while fleeing from police.  FBI and CPD investigated, with assistance from the Cook County State’s Attorney’s Office.
• TRIMANE O. KIMBROUGH, of Chicago, was charged with brandishing a semiautomatic handgun and stealing a Mazda 6 from a victim in Chicago.  The investigation was conducted by the FBI-led Violent Crimes Task Force, which includes the Cook County Sheriff’s Office, ISP, and CPD.  The Northwestern University Police Department assisted the task force.
• Federal charges allege ALLEN CLAY, of Chicago, brandished a semiautomatic handgun and NARONN CAIN, of Chicago, brandished a semiautomatic rifle when the pair stole a Kia Optima from a victim in Chicago.  The investigation was conducted by the FBI-led Violent Crimes Task Force and CPD.

Illegal Possession of Firearms Prosecutions

“Any felon thinking about picking up a gun in Chicago should expect to be prosecuted to the fullest extent of the law and face the possibility of going to federal prison for a long time,” said U.S. Attorney Lausch.

• KEJUAN CARR, of Chicago, was sentenced to more than four years in prison for illegally possessing a loaded handgun in Chicago’s Humboldt Park directly across the street from a children’s playground.  Carr was on parole for a recent firearm conviction when he possessed the gun.  FBI and CPD investigated, with assistance from IDOC.
• Heroin and fentanyl dealer LONDON GROVER, of Chicago, was sentenced to 14 years in prison for possessing a firearm to protect his drug dealing operation.  ATF and CPD investigated.  The case was prosecuted by the U.S. Attorney’s Office’s Gun Crimes Prosecution Team, which works collaboratively with federal and local law enforcement to enhance the prosecution of illegal firearm possession in certain police districts in Chicago.
• Rockford resident THOMAS BROOKS II was sentenced to eight years in prison for illegally possessing a machine gun loaded with 17 rounds of ammunition.  ATF and RPD conducted the investigation.  The case was prosecuted by Special Assistant U.S. Attorney Theodora Anderson, a prosecutor with the Winnebago County State’s Attorney’s Office who is working with the U.S. Attorney’s Office under a federal grant to prosecute certain firearm offenses in federal court.
• A Chicago man was charged with firearm and drug offenses for allegedly possessing a loaded handgun, cocaine, and fentanyl on a Chicago Transit Authority train.  CPD officers boarded a CTA Green Line train in the city’s downtown Loop neighborhood and arrested TERRELL WEATHERS.  FBI and CPD investigated.
• Convicted felon SHAZARIYAH F. HIBBETT, of Rockford, was sentenced to seven and a half years in prison for illegally possessing a loaded semiautomatic handgun after a traffic stop in Rockford.  ATF and RPD led the probe.
• TYJUAN LIGHTHALL was sentenced to more than five years in prison for illegally possessing a loaded handgun in Chicago and fraudulently obtaining a small business loan under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.  The gun, which Lighthall unlawfully purchased from an individual in Indiana for $400, was equipped with an extended magazine capable of holding more than fifteen rounds of ammunition.   ATF and the Evanston Police Department investigated the case.
• A Grundy County man was sentenced to 12 and a half years in prison for illegally possessing two handguns, three explosives, multiple magazines of ammunition, and drug paraphernalia.  During a dispute a day earlier, JOHN FEENEY, of Minooka, Ill., used one of the firearms to shoot at an individual, striking the individual’s vehicle.  The case was investigated by ATF and the Grundy County Sheriff’s Office.
• JULIAN ALMANZA, of Chicago, was sentenced to nearly four years in prison for illegally possessing a loaded handgun in Chicago’s Humboldt Park neighborhood.  Almanza stood in the middle of a street and pointed the gun at multiple individuals during an altercation.  ATF and CPD investigated, with assistance from the Cook County State’s Attorney’s Office.
• A man who was previously convicted of a 1993 kidnapping and murder was sentenced to nearly six years in prison for illegally possessing a loaded handgun during a traffic stop in Maywood, Ill.  DARNELL LUCKETT, of Berwyn, Ill., also possessed ammunition, heroin, marijuana, a digital scale, and counterfeit cash.  FBI investigated, with assistance from ISP.
• BRIAN STAFFORD, of Bellwood, Ill., was sentenced to more than 13 years in prison for illegally possessing two handguns and three assault rifles and dealing heroin and crack cocaine.  The firearms had been stolen from a cargo train in Chicago in 2016.  FBI led the probe, with assistance from ATF, Cook County Sheriff’s Office, Evergreen Park, Ill., Police Department, and Bolingbrook, Ill., Police Department.
• A man who illegally possessed a semiautomatic handgun in Evanston, Ill., and tried to flee from police was sentenced to nearly eight years in prison.  DARIUS MORALES, of Evanston, was a passenger in a Jeep that led police on a high-speed chase through downtown Evanston until it crashed into a fence in the backyard of a residence.  DEA led the probe, with assistance from ATF, Evanston Police Department, and Cook County State’s Attorney’s Office.

Other Significant Violent Crime Prosecutions

• A Chicago man was sentenced to nearly eight years in prison for using a machine gun to rob a law enforcement officer during an undercover firearms deal.  With the assistance of aerial support, law enforcement after the transaction followed CORTEZ PRICE to a nearby residence and arrested him.  ATF and CPD led the probe.  U.S. Customs and Border Protection provided the aerial support.
• JOSEPH HAMMOND, of Chicago, was sentenced to nine and a half years in prison for attempting to fire a loaded gun at federal agents and task force officers while holding a toddler.  Hammond pulled the trigger, but it misfired.  ATF and CPD investigated.
• A federal judge sentenced FLOYD E. BROWN, of Springfield, Ill., to 55 years in prison for killing Special Deputy U.S. Marshal Jacob Keltner.  Special Deputy Keltner was fatally wounded in 2019 when members of the U.S. Marshals Service Great Lakes Regional Fugitive Task Force and other law enforcement officers attempted to execute a warrant for Brown’s arrest at a Rockford hotel.  Special Deputy Keltner served as a McHenry County Sheriff’s deputy and was a sworn member of the task force.  FBI led the federal investigation, with assistance from ATF, USMS, RPD, McHenry County Sheriff’s Office, Winnebago County Sheriff’s Office, Bloomington, Ill., Police Department, Loves Park, Ill., Police Department, Lincoln, Ill., Police Department, Logan County Sheriff’s Office, and ISP.
• TIMOTHY O’DONNELL, of Chicago, was sentenced to nearly three years in prison for setting fire to a CPD vehicle during a period of civil unrest in downtown Chicago in 2020.  O’Donnell set the fire while wearing a “Joker” mask that partially covered his face.  FBI investigated, with assistance from CPD.
• A Chicago man was charged with shooting a Senior Inspector U.S. Marshal and his K9 partner during the execution of an arrest warrant.  The Senior Inspector U.S. Marshal and K9 partner suffered non-life threatening injuries.  The case was investigated by FBI and CPD, with assistance from USMS.

Drug Trafficking Prosecutions

The U.S. Attorney’s Office targets traffickers who bring illegal drugs into Illinois from other states or countries, with a focus on organizations or individuals who use guns, violence, and threats of violence to protect and promote their illegal businesses.  The U.S. Attorney’s Office works directly with state’s attorney’s offices throughout the district to ensure that individuals trafficking drugs are charged with appropriate offenses in either federal or state court.

Public safety is also being threatened by unprecedented levels of opioid poisoning, misuse, and overdose.  Opioids are a class of highly addictive drugs that includes heroin, fentanyl, and prescription painkillers such as oxycodone and hydrocodone.  U.S. Attorney Lausch in 2019 created an Opioid Task Force for the purpose of combatting the growing number of unlawful distributions of controlled substances fueling the nation’s opioid crisis.  This effort includes prosecuting the leaders of traditional drug trafficking organizations, as well as rogue health care providers and others who contribute to the misuse of opioids. 

“We are actively attacking the opioid crisis from all investigative and prosecutorial angles,” said U.S. Attorney John R. Lausch, Jr.

• International drug trafficker LUIS EDUARDO GONZALEZ GARCIA was sentenced to 30 years in prison for partnering with Mexican drug cartels to purchase and transport thousands of kilograms of cocaine to Chicago and other parts of the U.S.  DEA led the probe as part of an OCDETF operation.
• A multi-year drug trafficking investigation resulted in charges against ten individuals for allegedly conspiring to distribute at least 35 kilograms of fentanyl-laced heroin and crack cocaine on the West Side of Chicago.  Law enforcement during the probe seized more than a kilogram of narcotics, as well as 13 firearms and more than $40,000 in suspected illicit proceeds.  FBI, IRS-CI, and CPD conducted the investigation.
• RICHARD A. HUSBAND and WAYNE TOWNSEND, both of Chicago, were charged with selling fentanyl-laced heroin to individuals at the Jesse Brown VA Medical Center in Chicago.  The U.S. Department of Veterans Affairs is leading this ongoing investigation.
• A suburban Chicago man was sentenced to seven years in prison for laundering illegal narcotics proceeds on behalf of drug traffickers in Mexico.  HUAZHI HAN, of North Riverside, Ill., picked up approximately $1.5 million in drug money from others in the Chicago area, used the cash to purchase and re-sell electronic devices, and then sent the laundered money back to drug traffickers in Mexico.  DEA investigated, with assistance from IRS-CI, CPD, HSI, and the U.S. Treasury Department’s Financial Crimes Enforcement Network.
• ROSEMARY MAYS, an office manager for a Chicago medical practice, was sentenced to a year in prison for using a doctor’s prescription pad to write more than 3,000 fraudulent prescriptions for hydrocodone, oxycodone, and other controlled substances.  The case was investigated by DEA, FBI, and the U.S. Department of Health and Human Services, Office of Inspector General.
• RAYLOE JACKSON, of Maywood, Ill., was sentenced to more than ten years in prison for working with a Rockford-based narcotics supplier to traffic fentanyl and heroin.  The investigation was conducted by a DEA-led task force, which included officers from the Crystal Lake, Ill., Police Department, Belvidere, Ill., Police Department, and Boone County, Ill., Sheriff’s Office.  RPD assisted the task force.
• A man who failed to appear in federal court in Chicago before his 2009 drug trial was arrested in Panama and returned to the U.S.  COSME CHACON was among four defendants indicted in 2007 for allegedly participating in a drug trafficking organization that transported heroin to Chicago from New York, Florida, and Texas.  HSI and IRS-CI investigated the drug case.  USMS, U.S. Department of State’s Diplomatic Security Service, and the Justice Department’s Office of International Affairs assisted in Chacon’s return to the U.S.
• A federal jury convicted two suburban Chicago men on conspiracy charges as part of a federal probe that disrupted a Mexico-to-Chicago drug pipeline.  SHELDON MORALES, of Morton Grove, Ill., and EDUARDO SANTANA, of Skokie, Ill., conspired with a supplier in Mexico and two inmates in a Texas prison to traffic methamphetamine, fentanyl, and cocaine from Mexico to the Chicago suburbs.  DEA and IRS-CI led the probe, with assistance from the Evanston Police Department.
• Suburban Chicago physician ELIZA DIACONESCU was charged with health care fraud for allegedly prescribing opioids to patients without a medical exam and fraudulently billing Medicare for the nonexistent treatment.  The case was investigated by DEA, FBI, U.S. Department of Health and Human Services’ Office of Inspector General, and U.S. Department of Labor’s Office of Inspector General.

Community Partnerships

The PSN program continues to invest resources in violence-prevention initiatives.  The PSN Chicago Task Force, which includes members from the U.S. Attorney’s Office, CPD, ATF, IDOC, Cook County State’s Attorney’s Office, and academic researchers, is designed to address gun violence in certain neighborhoods in Chicago with the highest violent crime rates through aggressive prosecution of violent offenders.  The task force, which in 2018 expanded to include the city of Rockford, strengthens the relationship between the U.S. Attorney’s Office, CPD, Cook County State’s Attorney’s Office, RPD, and Winnebago County State’s Attorney’s Office. 

The PSN Task Force dedicates federal grant funds to support crime prevention programs that are aligned with law enforcement’s strategy to address gun violence.  Currently, PSN grant funds support Camp Hope, a crime prevention program in Rockford for at-risk juveniles who have experienced or witnessed domestic violence; Choose to Change, a program created by Children’s Home & Aid and Youth Advocate Programs in Chicago to engage youth who are heavily impacted by violence and trauma by connecting them with intensive advocate and wraparound support services and trauma-informed therapy; and Readi Chicago’s Reentry Program, a pilot program in Chicago jointly developed by Heartland Alliance and IDOC to provide pre-release and post-release support for individuals returning home from prison.

Members of the U.S. Attorney’s Office have also participated in offender notification meetings and youth outreach forums.  These meetings and forums are still being held during the Covid-19 pandemic, including in a virtual environment, to maintain critical outreach to former offenders.  Offender notification meetings provide an opportunity for individuals who have been convicted of a state or federal offense to make an informed choice not to engage in further criminal activity. 

Researchers at Arizona State University found that youth outreach forums in Chicago have a positive influence on the offenders’ perception of police and help create an understanding that criminal activity results in a higher risk to return to prison.  Researchers at Yale University found that ex-offenders who attend an offender notification meeting in Chicago are 30% less likely to commit a new offense than those who did not attend a meeting. 

The youth forums assist teenagers to identify a path beyond criminal activity.  They are conducted in partnership with CPD, the Cook County Juvenile Temporary Detention Center, and local social service agencies.

CHICAGO — A suburban Chicago businessman has been sentenced to nearly five years in federal prison for swindling millions from a hospital that paid him for scarce personal protective equipment in the early weeks of the Covid-19 pandemic.

DENNIS W. HAGGERTY, JR., 46, of Burr Ridge, Ill., pleaded guilty earlier this year to federal wire fraud and money laundering charges.  U.S. District Judge John F. Kness on Monday imposed a 57-month sentence and ordered Haggerty to pay more than $1.9 million in restitution.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government was represented by Assistant U.S. Attorney L. Heidi Manschreck.

Haggerty and two business partners in March 2020 formed a company called At Diagnostics Inc. to sell personal protective equipment.  The company agreed to sell 500,000 N95 respirator masks to a hospital in Iowa for $2.495 million.  Haggerty created an invoice to reflect the agreement and to instruct the hospital on where to wire the payment.  Based on the invoice, the hospital on March 31, 2020, wired the money to a bank account that Haggerty falsely claimed was an At Diagnostics account, but which was actually the account of a different business solely controlled by Haggerty. 

Haggerty spent part of the money for his personal benefit, including purchasing three luxury automobiles, paying nearly $189,000 to credit card companies, withdrawing more than $147,000 in cash, and paying $20,000 to a personal friend.  At Diagnostics never delivered the masks, and when questioned about it by the hospital he falsely claimed that the bank had no record of the hospital’s payment being received.  When his business partners questioned Haggerty about the whereabouts of the money, Haggerty altered a bank statement to make it appear as if the hospital’s funds had not been received.

Haggerty also engaged in similar conduct with a hospital in Illinois.  After agreeing to sell one million N95 masks for nearly $4.5 million, the hospital requested that an initial payment be sent to an escrow account instead of the account Haggerty provided.  When At Diagnostics failed to fulfill the hospital’s order, the money in escrow was returned.  The hospital, however, later inadvertently wired more than $933,000 to Haggerty’s account in connection with a second order for 500,000 N95 masks that was never fulfilled.  Haggerty spent some of this money for his personal use and did not return any of it.

Haggerty’s sentence included an enhancement for obstruction of justice.  In his initial court filings in advance of sentencing, Haggerty claimed that he had relied on a bill of lading purportedly sent by a supplier of the N95 masks, and that he began spending the money from the first hospital believing it was owed to him from his business partners.  Haggerty later withdrew those claims and admitted that he had created a fake bill of lading.  He acknowledged that his conduct warranted the enhancement.

CHICAGO — A man has been sentenced to more than 12 years in federal prison for illegally possessing a loaded semiautomatic handgun and cocaine at a Chicago gas station.

JEREMY INGRAM, 30, of Chicago, illegally possessed the gun and drugs on July 11, 2019, in the Austin neighborhood on Chicago’s West Side.  The firearm had a 16-round magazine attached to it, while the cocaine was packaged in multiple clear baggies.  When Chicago Police officers approached Ingram, he attempted to flee in his car.  Ingram continued to physically resist the officers as they apprehended and arrested him.

Ingram had previously been convicted of multiple felonies in state court and was not legally allowed to possess a firearm.  He was on parole for his most recent felony conviction at the time of the federal offenses.

Ingram pleaded guilty earlier this year to federal firearm and drug charges.  U.S. District Judge Robert W. Gettleman on Dec. 14, 2022, imposed a prison sentence of 12 years and seven months.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department.  Assistant U.S. Attorney Jasmina Vajzovic represented the government.

Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy.  In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.

CHICAGO — The former chief executive officer of a suburban Chicago subprime auto lending company has been charged in federal court with orchestrating a scheme that defrauded a bank of approximately $54.5 million.

JAMES COLLINS was the CEO of Evanston, Ill.-based Honor Finance LLC.  From 2015 to 2018, Collins schemed with another top Honor executive to submit false information to the bank about a portfolio of loans made to subprime borrowers, in an effort to maintain a certain level of funding from a line of credit provided to Honor by the bank, according to an indictment returned in U.S. District Court in Chicago.  The false information also allowed Collins and his co-schemer to increase the amount of funding they received from a trust established by Honor and the bank to securitize thousands of loans in Honor’s portfolio and sell them as bonds to investors, the indictment states.  The indictment alleges that Collins selected delinquent vehicle loans for the trust that he knew were not eligible to be included in the portfolio because Honor and its affiliates had previously advanced money to the borrowers through the use of improper accounting entries.  Collins hid the ineligibility of these loans from the bank, bond investors, and rating agencies, the indictment states.

As a result of Collins’s false representations and material omissions regarding the line of credit and the trust, the bank lost approximately $54.5 million, the indictment states.

The indictment charges Collins, 53, of Evanston, Ill., with 15 counts of bank fraud and two counts of securities fraud.  Arraignment is scheduled for Dec. 19, 2022, at 10:00 a.m., before U.S. Magistrate Judge Beth W. Jantz.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the U.S. Securities and Exchange Commission.  The government is represented by Assistant U.S. Attorneys Matthew Getter and Paige Nutini.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each count of bank fraud is punishable by up to 30 years in federal prison, while each securities fraud count carries a maximum of 20 years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A drug trafficker who conspired with his father and several others to operate a cocaine delivery service in the Chicago area has been sentenced to seven years in federal prison.

TONY J. CAYUELA, also known as “Tone Kapone,” 43, of Chicago, operated a drug trafficking organization that in 2018 distributed cocaine to hundreds of customers in the Chicago area.  Tony J. Cayuela packaged wholesale quantities of cocaine into one-gram bags for retail sale and dispatched drivers to complete deliveries to customers.  One of the drivers was Tony Cayuela’s father, TONY F. CAYUELA, 68, of Chicago.

Federal law enforcement shut down the drug trafficking organization during a multi-year investigation known as “Operation Flawed Deal.”  During the probe, authorities seized multiple bank accounts, more than a kilogram of cocaine, a Mercedes G63 sport-utility vehicle, and two handguns.  All 18 defendants charged in the investigation, including the Cayuelas, pleaded guilty and admitted their roles in the trafficking operation.  In addition to the drug conspiracy, Tony J. Cayuela also pleaded guilty to a money laundering charge.

U.S. District Judge Jorge L. Alonso sentenced Tony J. Cayuela on Dec. 6, 2022.  The other 17 defendants were previously sentenced, including ANEES USMANI, also known as “Ace,” of Chicago, who received eight years in prison.

The case was part of an Organized Crime Drug Enforcement Task Force operation.  OCDETF identifies, disrupts, and dismantles the highest-level drug trafficking organizations and other criminal networks that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  Valuable assistance was provided by the Chicago Police Department, Evanston, Ill., Police Department, Skokie, Ill., Police Department, Lincolnwood, Ill., Police Department, Palatine, Ill., Police Department, and Des Plaines, Ill., Police Department.  Assistant U.S. Attorney Charles W. Mulaney represented the government.

“The convictions and federal prison sentences in this operation should serve as a warning to those who distribute poison in our communities: We will prosecute you to the fullest extent of the law,” said U.S. Attorney Lausch.  “Our federal and local law enforcement partners in this operation performed exemplary work to dismantle a significant drug trafficking organization.”

“Operation Flawed Deal should serve as a beacon of hope to our community, a message that we won't tolerate drugs in our neighborhoods, and those who disobey the law will be brought to justice,” said FBI Acting SAC Morales.  “The FBI is honored to work with our state, local, and federal partners to protect the American people every day.”

“This sentencing signals an important victory for the American public,” said IRS-CI SAC Campbell.  “The role of IRS Criminal Investigation in narcotics investigations is to follow the money and financially disrupt and dismantle major drug trafficking organizations.  One of the government's most powerful weapons is the ability to seize the assets associated with narcotics-related crime.  We are proud to work hand-in-hand with our law enforcement partners to bring these criminals to justice.”

CHICAGO — A United States Navy veteran has been indicted on federal criminal charges for allegedly swindling retired and active-duty Navy members in an investment fraud scheme.

ROBERT L. MURRAY, JR, 43, of Chicago, was charged with four counts of wire fraud in an indictment returned Monday in U.S. District Court in Chicago.  Arraignment is set for Dec. 16, 2022, at 11:30 a.m. before U.S. District Judge Manish S. Shah.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the U.S. Securities and Exchange Commission.  The government is represented by Assistant U.S. Attorney Brian Havey.

The indictment alleges that after retiring from the Navy, Murray occasionally traded securities online from his residence.  He later founded an investment fund called Deep Dive Strategies LLC, which purported to invest in publicly traded securities.  Murray solicited investors, including retired and active-duty Navy members, by portraying himself on social media as a skilled and successful options trader with an effective algorithm for trading securities, the indictment states.

The indictment alleges that Murray failed to invest or trade with all of the money provided to him by investors, instead using a portion of their funds to pay his personal expenses, including shopping, restaurant, and travel expenses.  With the investor funds that Murray did use to conduct trades, he lost most of those funds by placing a highly risky bet on the “meme stock” GameStop, the indictment alleges.  When investors later requested an accounting of their funds, Murray disregarded or refused their requests, the indictment states.

As a result of the scheme, investors lost all of the funds they entrusted to Murray to invest on their behalf, an amount totaling more than $342,000, the indictment states.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each count of wire fraud is punishable by up to 20 years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A man has been sentenced to more than eight years in federal prison for illegally possessing a firearm and using it to shoot at individuals on Christmas morning in 2019.

Shortly after 11:15 a.m. on Dec. 25, 2019, RASHID JACKSON fired three shots from a semiautomatic handgun at individuals in the middle of a residential street in Chicago’s South Shore neighborhood.  CPD officers patrolling the area after the shooting arrested Jackson approximately half a block from the shooting scene.

Jackson, 27, of Chicago, pleaded guilty earlier this year to a charge of illegal possession of a firearm by a convicted felon.  Jackson had previously been convicted of multiple felony offenses in state court and was prohibited by federal law from possessing a firearm.  U.S. District Judge Virginia M. Kendall on Monday imposed a 100-month prison sentence after finding that Jackson’s actions in the Christmas shooting constituted attempted second-degree murder.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI, and David Brown, Superintendent of the Chicago Police Department.  The government was represented by Assistant U.S. Attorney Cornelius A. Vandenberg.

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.

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.

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.

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.

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.

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 — 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.

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.

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 — 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.

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.”

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 — 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.

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.

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.

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 — 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.”

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.

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.