Northern District of Illinois

CHICAGO — A man has been sentenced to 28 years in federal prison for violently robbing more than a dozen Chicago liquor and convenience stores.

In the summer and fall of 2016, ANGELO STANTON robbed 15 stores and attempted to rob two others.  Stanton carried out takeover-style heists in which he pointed a handgun at employees and demanded cash from the register or safe.  Stanton fired shots in five of the incidents, wounding two store employees. 

The robberies and attempted robberies occurred in various Chicago neighborhoods:

• Aug. 23, 2016: Castillo’s Super Market, 2732 W. 59th St.
• Aug. 26, 2016: Danny’s Liquors, 2222 N. Western Ave.
• Aug. 30, 2016: One Stop Western Market, 3456 S. Western Ave.
• Sept. 3, 2016: Granados Liquors, 1859 W. 47th St.
• Sept. 8, 2016: Buchanas Food & Liquor, 1834 W. 47th St.
• Sept. 13, 2016: El Yunque Liquor Store, 1900 N. California Ave.
• Sept. 20, 2016: West Town Wine and Spirits, 2501 W. North Ave.
• Sept. 21, 2016: Park Dollar and Food Store, 1101 N. California Ave.
• Sept. 22, 2016: Albany Food & Liquors, 3048 W. Fullerton Ave.
• Sept. 23, 2016: Value Most Liquors, 3236 N. Pulaski Rd.
• Sept. 25, 2016: Manha grocery store, 3751 W. Armitage Ave.
• Sept. 28, 2016: Evelyn Food Market, 2926 W. Pulaski Rd.
• Sept. 30, 2016: Don’s Grill, 1837 S. Western Ave.
• Oct. 2, 2016: One Stop Market, 3456 S. Western Ave.
• Oct. 4, 2016: Humboldt Haus, 2958 W. North Ave.
• Oct. 9, 2016: Bucktown Food & Liquors, 2422 W. Fullerton Ave.
• Oct. 11, 2016: Lucky One Food, 1854 N. Pulaski Rd.

Stanton, 32, of Chicago, pleaded guilty last year to robbery and firearm charges.  U.S. District Judge Robert M. Dow, Jr., imposed the prison sentence Monday.  A hearing to determine the amount of restitution that Stanton must pay to the victims is scheduled for May 3, 2022.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department.  Valuable assistance was provided by the Illinois State Police and Cook County Sheriff’s Office.  Assistant U.S. Attorney Ashley A. Chung represented the government.

CHICAGO — A suburban Chicago man has pleaded guilty to a federal child pornography charge for taking dozens of sexually explicit photographs of a three-year-old child.

MARCOS GERMAN MENDEZ, 34, of Rosemont, Ill., pleaded guilty Wednesday to one count of production of child pornography.  The conviction is punishable by a minimum sentence of 15 years in federal prison and a maximum of 30 years.  U.S. District Judge Mary M. Rowland set sentencing for June 21, 2022.

Mendez admitted in a plea agreement that on two occasions in 2015 he took a total of more than 60 sexually explicit photographs of the child while she was sleeping.  Mendez saved the images on his iPhone and iCloud account, and in 2016 he fled to Mexico.  He was later arrested and extradited to the United States.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Angie Salazar, 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, Ill., Sheriff’s Office; and U.S. Marshals Service.  The government is represented by Assistant U.S. Attorneys Misty N. Wright and Ashley A. Chung.

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 suburban Chicago man was sentenced today to a year and a half in federal prison for conducting an illegal sports gambling business and laundering the proceeds.

VINCENT DELGIUDICE, also known as “Uncle Mick,” 58, of Orland Park, Ill., directed an illegal bookmaking business in the Chicago area from 2016 to 2019.  Delgiudice retained a company in Costa Rica to operate a website, Unclemicksports.com, that gamblers used to place wagers on professional and collegiate sporting events.  Delgiudice worked with more than 20 agents and sub-agents who recruited gamblers and shared in the profits from the gamblers’ losses.  The agents and sub-agents managed more than 1,000 gamblers, meeting them as necessary to settle up and collect losses from them.  Delgiudice laundered the profits in a variety of ways, including making cash investments in businesses and having gamblers directly pay his personal expenses.

Delgiudice pleaded guilty last year to conspiracy and gambling charges.  In addition to the 18-month prison sentence, U.S. District Judge Virginia M. Kendall ordered Delgiudice to forfeit $3.6 million in criminally derived proceeds.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and Justin Campbell, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The FBI’s Integrity in Sport and Gaming Initiative (ISG) is designed to tackle illegal sports gambling and combat threats of influence from criminal enterprises.

“While cloaked with a professional veneer and flashy website, this was a sordid operation,” Assistant U.S. Attorney Terry M. Kinney argued in the government’s sentencing memorandum.  “He preyed upon individuals’ addictions to line his pockets.”

In a consent decree entered Monday, a federal court ordered a Waukegan, Illinois, company to stop distributing nutritional supplements that violate the Federal Food, Drug and Cosmetic Act (FDCA), the Department of Justice and the U.S. Attorney’s Office for the Northern District of Illinois announced.

The United States alleged in a complaint filed in the Northern District of Illinois on March 3 that Salud Natural Entrepreneur, Inc. (Salud), its owner, Hector Pablo Oliva, production manager Michel Monfort, and quality control manager Carolina L. Giral violated the FDCA by distributing adulterated and misbranded dietary supplements and unapproved new drugs that the company claimed would cure, mitigate, treat or prevent diseases such as cancer, diabetes, high blood pressure and heart disease. The United States also alleged that Salud did not comply with good manufacturing practice regulations designed to help ensure the safety of nutritional supplements, and that on one occasion Salud used ingredients that had tested positive for salmonella in manufacturing a product.

“Nutritional supplement makers must comply with laws and regulations meant to protect public health,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to working with its agency partners to take action against manufacturers who risk the safety of consumers by failing to adhere to the FDCA.”

“Nutritional supplements must be manufactured, labeled, and distributed in compliance with federal law,” said U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois. “The U.S. Attorney’s Office is committed to working with our colleagues at the Department of Justice’s Consumer Protection Branch to ensure that the public is not misled by unsubstantiated claims.”

“Current good manufacturing regulations are in place to protect consumers, and it is imperative that dietary supplement manufacturers comply to ensure this protection,” said Associate Commissioner Judy McMeekin, Pharm.D. for FDA Regulatory Affairs. “We also hold manufacturers responsible when their product is inappropriately labeled with claims to cure or prevent disease to protect consumers who are unknowingly scammed by false or misleading claims.”

The defendants agreed to settle the suit and be bound by a consent decree of permanent injunction filed along with the complaint. The order entered by the court permanently enjoins the defendants from violating the FDCA, and requires, among other things, that the defendants stop manufacturing, processing, labeling, holding or distributing any product that they claim can treat or cure disease, until they comply with federal law. The defendants also must bring their operations into compliance with current good manufacturing regulations. 

The government was represented in this matter by Special Assistant U.S. Attorney and Senior Litigation Counsel Don Lorenzen of the Justice Department’s Consumer Protection Branch, with the assistance of Leslie Cohen of the FDA’s Office of Chief Counsel.

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.

WASHINGTON – In a consent decree entered Monday, a federal court ordered a Waukegan, Ill. company to stop distributing nutritional supplements that violate the Federal Food, Drug, and Cosmetic Act (FDCA), the Department of Justice and the U.S. Attorney’s Office for the Northern District of Illinois announced today.

The United States alleged in a complaint filed in the Northern District of Illinois on March 3, 2022, that Salud Natural Entrepreneur Inc., its owner, Hector Pablo Oliva, production manager Michel Monfort, and quality control manager Carolina L. Giral violated the FDCA by distributing adulterated and misbranded dietary supplements and unapproved new drugs that the company claimed would cure, mitigate, treat or prevent diseases such as cancer, diabetes, high blood pressure, and heart disease. The United States also alleged that Salud did not comply with good manufacturing practice regulations designed to help ensure the safety of nutritional supplements, and that on one occasion Salud used ingredients that had tested positive for salmonella in manufacturing a product.

“Nutritional supplement makers must comply with laws and regulations meant to protect public health,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to working with its agency partners to take action against manufacturers who risk the safety of consumers by failing to adhere to the FDCA.”

“Nutritional supplements must be manufactured, labeled, and distributed in compliance with federal law,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “The U.S. Attorney’s Office is committed to working with our colleagues at the Department of Justice’s Consumer Protection Branch to ensure that the public is not misled by unsubstantiated claims.”

"Current good manufacturing regulations are in place to protect consumers, and it is imperative that dietary supplement manufacturers comply to ensure this protection,” said Associate Commissioner Judy McMeekin, Pharm.D. for FDA Regulatory Affairs. “We also hold manufacturers responsible when their product is inappropriately labeled with claims to cure or prevent disease to protect consumers who are unknowingly scammed by false or misleading claims.”

The defendants agreed to settle the suit and be bound by a consent decree of permanent injunction filed along with the complaint. The order entered by the court permanently enjoins the defendants from violating the FDCA, and requires, among other things, that the defendants stop manufacturing, processing, labeling, holding or distributing any product that they claim can treat or cure disease, until they comply with federal law. The defendants also must bring their operations into compliance with current good manufacturing regulations. 

The government was represented in this matter by Special Assistant U.S. Attorney and Senior Litigation Counsel Don Lorenzen of the Justice Department’s Consumer Protection Branch, with the assistance of Leslie Cohen of the FDA’s Office of Chief Counsel.

Additional information about the Consumer Protection Branch and its enforcement efforts may be found here.

CHICAGO — Former Illinois State Sen. THOMAS E. CULLERTON pleaded guilty today to a federal embezzlement charge and admitted fraudulently receiving salary and benefits from a labor union for which he did little to no work.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago.  The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu and Erika Csicsila.

Cullerton, 52, of Villa Park, Ill., was hired in 2013 by Teamsters Joint Council 25 as a purported union organizer and remained on the payroll until February 2016.  In addition to receiving a salary, monthly car and telephone allowances, and bonuses, Teamsters Joint Council 25 also funded Cullerton’s participation in Teamsters Local Union 734’s health and pension funds, which enabled Cullerton to receive health and welfare benefits.

Cullerton admitted in a plea agreement that he did little to no work as an organizer for the three years he was on the union payroll.  When his supervisors requested that he perform his job duties, Cullerton routinely ignored them, the plea agreement states.  For the last year he remained on the payroll, Cullerton admitted that he performed no work at all of value for Teamsters Joint Council 25.  From March 2013 to February 2016, Cullerton fraudulently obtained from Joint Council 25 and its members approximately $169,488 in salary, bonuses, and other benefits, approximately $57,662 in health and pension contributions, and approximately $21,678 in reimbursed medical claims.  Cullerton admitted that he used the money to pay personal expenses, such as his mortgage, utilities, and groceries.

The embezzlement charge is punishable by up to five years in federal prison.  U.S. District Judge Robert W. Gettleman set sentencing for June 21, 2022, at 10:30 a.m.

ROCKFORD — A Rockford man has been sentenced to nine and a half years in federal prison for bank robbery and attempted bank robbery.

LIONEL RUSSELL, 35, pleaded guilty last year to the attempted robbery of BMO Harris Bank, 228 S. Main St. in Rockford, and the robbery of Illinois Bank and Trust, 308 W. State St. in Rockford, both of which occurred on Jan. 27, 2020.

Russell admitted in a plea agreement that in the BMO Harris heist he presented a note to the teller demanding $20,000.  While the teller was complying with the note, Russell took the note back and left the bank without any money.  In the Illinois Bank and Trust robbery, Russell presented a note to the teller that stated, “I have a gun, I need everything out of the register.”  Russell received $14,625 from the teller and left the bank.

Russell was arrested by the Warren County (Ind.) Sheriff’s Office on Feb. 3, 2020, after a traffic stop.  At the time, Russell possessed in his car several bundles of cash that Russell admitted was stolen during the robbery of Illinois Bank and Trust.

U.S. District Judge Iain D. Johnston imposed the prison sentence Friday after a hearing in federal court in Rockford.  Russell was also ordered ordered to pay restitution totaling $14,625.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Substantial assistance was provided by the Rockford Police Department and the Warren County (Ind.) Sheriff’s Department.  The government was represented by Assistant U.S. Attorney Robert S. Ladd.

CHICAGO — A man has been sentenced to five years in federal prison for using an explosive device to damage a suburban Chicago restaurant.

On June 1, 2020, DIEGO VARGAS, 27, of Aurora, Ill., threw a lit explosive device through the window of Egg Harbor Cafe in Naperville, Ill., resulting in two explosions.  The restaurant was closed, and no injuries were reported.

In addition to the restaurant incident, Vargas on the previous night tried to steal cash from an ATM in Aurora.  Vargas struck the ATM with a baseball bat and a metal pole from a street sign in an unsuccessful attempt to pry it open.

U.S. District Judge Elaine E. Bucklo imposed the five-year prison sentence Thursday after a hearing in federal court in Chicago. 

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The Naperville Police Department and Aurora Police Department provided valuable assistance.  The government was represented by Assistant U.S. Attorneys Barry Jonas and Kate McClelland.

CHICAGO — A federal judge today sentenced two men to federal prison for stealing expensive watches and jewelry at gunpoint from a suburban Chicago store.

TOBIAS DIGGS, 28, of Chicago, and JOSHUA MCCLELLAN, 32, of Oak Lawn, Ill., robbed Razny Jewelers in Hinsdale, Ill., on the morning of March 17, 2017.  More than $400,000 in merchandise was stolen during the heist, including watches by luxury brands Frederique Constant, Patek Phillipe, and Tudor.  The defendants later sold, attempted to sell, or disposed of some of the stolen items in the Chicago area and Atlanta, Ga.

A federal jury in 2020 convicted Diggs and McClellan on robbery and firearm charges.  U.S. District Judge Gary S. Feinerman today sentenced Diggs to eleven years in federal prison, and McClellan to eight years. 

The sentences were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations.  Valuable assistance was provided by the Hinsdale Police Department, Oak Lawn Police Department, and the FBI Chicago Field Office’s Cellular Analysis Survey Team (CAST).  Additional support was provided by the Felony Investigation Assistance Team (FIAT), a multi-jurisdictional law enforcement task force in the western suburbs of Chicago.  The government was represented by Assistant U.S. Attorney Albert Berry III.

Two other individuals allegedly participated in the robbery.  MARVON HAMBERLIN, of Chicago, was indicted and is a fugitive.  A warrant has been issued for his arrest.  The fourth individual has not been identified.

According to evidence presented at trial, the robbers planned in advance to rob Razny Jewelers.  On the day of the heist, McClellan drove the getaway car – a Lexus sport-utility vehicle – while Diggs and the other robbers entered the store and pointed a gun at a female employee.  After the unidentified robber tackled a store security guard, Diggs hit the female employee with the gun and dragged her by her hair to a back room, while he and the others gained accessed to the store’s safe and stole the jewelry.

CHICAGO — A federal grand jury in Chicago today indicted former Speaker of the Illinois House of Representatives MICHAEL J. MADIGAN on racketeering and bribery charges for allegedly using his official position to corruptly solicit and receive personal financial rewards for himself and his associates.

The 22-count indictment accuses Madigan of leading for nearly a decade a criminal enterprise whose purpose was to enhance Madigan’s political power and financial well-being while also generating income for his political allies and associates.  The charges allege that Madigan, who served as Speaker and occupied a number of other roles, including Representative of Illinois’s 22nd District, Committeeman for Chicago’s 13th Ward, Chairman of both the Illinois Democratic Party and the 13th Ward Democratic Organization, and partner at the Chicago law firm of Madigan & Getzendanner, used these positions to further the goals of the criminal enterprise.  The indictment alleges that Madigan directed the activities of his close friend – co-defendant MICHAEL F. MCCLAIN – and that McClain carried out illegal activities at Madigan’s behest.  Madigan and McClain allegedly caused various businesses, including the utility company Commonwealth Edison, to make monetary payments to Madigan’s associates as a reward for their loyalty to Madigan, at times in return for performing little or no legitimate work for the businesses. 

Madigan, McClain, and other members of the enterprise allegedly unlawfully solicited benefits from businesses and other private parties.  The indictment accuses Madigan of engaging in multiple schemes to reap the benefits of private legal work unlawfully steered to his law firm, including legal work from those with business before the State of Illinois and City of Chicago.

Madigan, 79, of Chicago, is charged with racketeering conspiracy and individual counts of using interstate facilities in aid of bribery, wire fraud, and attempted extortion.  McClain, 74, of Quincy, Ill., is charged with racketeering conspiracy and individual counts of using interstate facilities in aid of bribery and wire fraud.

Arraignments in U.S. District 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; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Diane MacArthur, Timothy J. Chapman, Sarah E. Streicker, Michelle Kramer, and Julia Schwartz.

“Corruption by an elected official and his associates undermines the public’s confidence in our government,” said U.S. Attorney Lausch.  “The indictment alleges a long-term, multifaceted scheme to use public positions for unlawful private gain.  Rooting out and prosecuting the kind of corruption alleged in the indictment will always be a top priority for this office.”

“Our elected officials swear an oath to carry out the duties of their office,” said FBI SAC Buie.  “When they dishonor that oath, it erodes the trust we have in our officials to do the right thing for our communities, and the FBI and its partners stand ready to stamp out corruption at any level of government.”

“IRS Criminal Investigation provides financial investigative expertise in our work with our law enforcement partners,” said IRS-CI SAC Campbell.  “Our hallmark expertise in following the money trail in this type of case shows our agency is committed to rooting out public corruption.  Today’s indictment underscores our commitment to this work in a collaborative effort to promote honest and ethical government at all levels, and to prosecute those who allegedly violate the public’s trust.”

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 sentencing statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — Two executives of a Chicago-area non-profit organization have been indicted on federal fraud charges for allegedly misappropriating more than $1.8 million in funds intended to support the charity’s work with underprivileged youth.

TONY BELL served as executive director of the Center for Community Academic Success Partnerships, and BARBARA HARRIS was a CCASP project manager.  The non-profit organization received government grants and other funds to provide after-school programs to elementary and secondary schools in the Chicago area.  The government grants included funds from the 21st Century Community Learning Centers Program, a federal program offering financial support to community centers that provide academic enrichment opportunities.  The 21st Century program issued grants to its local administrator, the Illinois State Board of Education, which in turn disbursed the funds to CCASP.

An indictment returned Monday in U.S. District Court in Chicago alleges that Bell, Harris, and others from 2012 to 2017 fraudulently obtained and misappropriated at least $1.8 million in the federal funds.  Bell, Harris, and their associates allegedly transferred approximately $1.3 million of the fraud proceeds to bank accounts they controlled, and they used approximately $436,536 to pay down Bell’s credit card balances.  The pair and their associates also used approximately $130,372 of the fraud proceeds to write numerous checks made payable to Community Partners, an unincorporated entity which the defendants fraudulently claimed was a subcontractor to CCASP, the indictment states.  Bell and Harris subsequently negotiated the Community Partners checks for cash or used them to purchase money orders at a currency exchange in Dolton, Ill., according to the indictment.

The indictment charges Bell, 61, of Matteson, Ill., and Harris, 52, of South Holland, Ill., with conspiracy, money laundering, and wire fraud.  Arraignments in U.S. District 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; John F. Woolley, Special Agent-in-Charge of the U.S. Department of Education Office of Inspector General’s Midwestern Regional Office; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago.  The Illinois Office of Executive Inspector General provided valuable assistance.  The government is represented by Assistant U.S. Attorney Philip Fluhr.

The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A suburban Chicago businessman pleaded guilty today to a federal fraud charge for swindling $2.5 million from a hospital that paid him for scarce personal protective equipment in the early weeks of the COVID-19 pandemic.

DENNIS W. HAGGERTY, JR., 45, of Burr Ridge, Ill., pleaded guilty to one count of wire fraud, which is punishable by up to 20 years in federal prison, and one count of money laundering, which is punishable by up to ten years.  U.S. District Judge John F. Kness set sentencing for May 25, 2022.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is 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 reached an agreement with a hospital in Iowa to sell 500,000 N95 respirator masks 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 admitted in a plea agreement that he spent part of the money for his own personal benefit, including purchasing two Maserati automobiles and a Land Rover sport-utility vehicle, paying nearly $189,000 to credit card companies, withdrawing more than $147,000 in cash, and paying $20,000 to a personal friend.  Haggerty further admitted that 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 also 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 admitted in the plea agreement that he engaged in similar conduct with a hospital based in Illinois.  After reaching an agreement with that hospital 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 Illinois 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 were never delivered.  Haggerty admitted in the plea agreement that he spent some of this money for his own personal use and did not return any of it.

CHICAGO — A federal jury has convicted a Chicago woman on fraud and tax offenses for cashing her deceased grandmother’s pension checks and preparing false tax returns.

EUNICE SALLEY, also known as “Eunice Salley Dobyns,” “Oya Awanata-Bey,” and “Oya Awanata,” 37, was found guilty on all 29 counts against her, including pension fraud, embezzlement, mail fraud, and tax charges.  The jury returned the verdicts Friday after a four-day trial in U.S. District Court in Chicago.  U.S. District Judge Robert M. Dow, Jr., set sentencing for July 21, 2022.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorney Barry Jonas of the Northern District of Illinois, and Assistant Chief Andrew Kameros of the Justice Department’s Tax Division.

According to evidence presented at trial, Salley worked as a paid tax return preparer.  In 2016 and 2017, Salley prepared and filed with the IRS 22 false individual income tax returns on behalf of clients.  The returns, which sought more than $1 million in false refunds, contained fictitious wages and withholdings, as well as false medical, charitable, and employment-related expenses.  Salley demanded that many of her clients pay her up to 50% of the refund, in addition to her regular preparation fee.

Evidence regarding the pension fraud revealed that Salley’s grandmother died in 2009 after having worked for American Can Co.  After her death, the grandmother’s monthly pension checks continued to be delivered to the residence where Salley continued to reside.  From January 2013 to December 2017, 33 pension checks, totaling $14,131, were issued to the grandmother and deposited into one of six bank accounts opened and controlled by Salley.  On several occasions during that time Salley notarized and submitted to the pension plan administrator affidavits under her grandmother’s name, fraudulently affirming that the grandmother was alive.  Salley did not report approximately $5,000 in income she received in 2017 from the pension checks that she embezzled.

CHICAGO — An inmate in a state prison in Arizona has been charged with federal drug offenses for allegedly brokering the sale of fentanyl and methamphetamine in Illinois.

A criminal complaint filed today in U.S. District Court in Chicago charges MANUEL GARCIA, also known as “Chuy,” 42, with distribution of controlled substances. 

Garcia has been incarcerated since 2010 by the Arizona Department of Corrections, Rehabilitation, and Reentry.  In the summer of 2021, while residing at the Eyman Arizona State Prison Complex, Garcia allegedly coordinated with a buyer outside of the prison to purchase methamphetamine and fentanyl for delivery to Illinois.  Garcia negotiated the transaction, including sending photos of the methamphetamine via video chat, using a cell phone he had smuggled into the prison, the complaint states.  Garcia had approximately a pound of crystal methamphetamine and nearly 1,000 fentanyl pills sent to the buyer at an address in Joliet, Ill., the complaint states.  Unbeknownst to Garcia, the buyer was cooperating with law enforcement.  On July 8, 2021, law enforcement intercepted the package of narcotics upon arrival at a U.S. Postal facility in Forest Park, Ill.

In the days that followed, Garcia allegedly directed the buyer to meet a third party and pay him on Garcia’s behalf for the fentanyl and methamphetamine.  On July 14, 2021, with law enforcement covertly watching, the buyer met with Garcia’s representative in a parking lot at O’Hare International Airport in Chicago and provided $11,100 as payment to Garcia for the narcotics, the complaint states.

Garcia currently resides at the Florence Arizona State Prison Complex.  His initial appearance in federal court in Chicago has not yet been scheduled.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration.  The government is represented by Assistant U.S. Attorneys A.J. Dixon and Megan DeMarco. 

The public is reminded that a complaint is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  The charge in the complaint is punishable by a mandatory minimum sentence of ten years in federal prison and a maximum of life.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A man has been sentenced to 22 years in federal prison for participating in a violent robbery crew that targeted cell phone stores in the suburbs of Chicago.

AARON CLARK was part of a crew that conspired to rob cell phone stores in Calumet City, Ill., and Peotone, Ill., in 2017.  The crew conducted takeover-style heists in which the robbers pointed guns at employees and bound their hands and feet with duct tape or rope.  The robbers then stole cash and electronic devices and fled the stores.  Clark brandished a gun during the heists and threatened to shoot store employees.  In the Peotone robbery, Clark violently kicked a store employee in the face and knocked another employee off of a stool to the ground. 

Clark, 44, of Chicago, pleaded guilty last year to federal conspiracy, robbery, and firearm charges.  U.S. District Judge Edmond E. Chang imposed the prison sentence Wednesday 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; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department.  Valuable assistance was provided by the Calumet City Police Department, Peotone Police Department, Cook County State’s Attorney’s Office, and Will County State’s Attorney’s Office.

“The offenses in this case were violent and dangerous,” Assistant U.S. Attorneys Richard M. Rothblatt and Aaron R. Bond argued in the government’s sentencing memorandum.  “No one should have to experience the physical pain and psychological terror defendant imposed upon the employees at these stores who were simply doing their jobs.”

One other member of the crew was convicted of armed robbery offenses in the Circuit Court of Cook County and sentenced to 14 years in state prison.

CHICAGO — An ongoing federal investigation into an alleged fraud scheme at a Chicago elementary school has resulted in charges against two new defendants.

An eleven-count superseding indictment unsealed today in U.S. District Court in Chicago alleges that SARAH JACKSON ABEDELAL carried out a fraud scheme while serving as Principal of Brennemann Elementary School on the North Side of Chicago.  The first aspect of the scheme involved overtime fraud, for which Abedelal was initially charged last year.  The superseding indictment adds a second aspect to the alleged scheme – procurement fraud – and charges two new defendants: former Brennemann Assistant Principal JENNIFER MCBRIDE, also known as “Jennifer Ellen,” and former Brennemann Business Manager WILLIAM JACKSON.  McBride allegedly participated in the overtime aspect of the fraud scheme, while Jackson allegedly participated in both the overtime and procurement aspects.

The superseding indictment charges Abedelal, 58, of Chicago, with one count of wire fraud.  McBride, 40, of Northbrook, Ill., is charged with four counts of wire fraud.  Jackson, 37, of Chicago, is charged with five counts of wire fraud and one count of mail fraud.  Arraignments in U.S. District Court in Chicago have not yet been scheduled.

The superseding indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Will Fletcher, Inspector General of the Chicago Board of Education, Office of Inspector General.  The government is represented by Assistant U.S. Attorneys Terry M. Kinney and Patrick Mott.

According to the superseding indictment, the procurement aspect of the fraud scheme was carried out by Abedelal, Jackson, and a sales representative for a company that sold goods to Chicago Public Schools.  The trio allegedly submitted or caused to be submitted to CPS false purchase orders and invoices totaling more than $45,000, ostensibly for office and school supplies.  In reality, they knew that the false orders and invoices were actually meant to conceal the receipt of iPhones, iPads, and approximately $30,000 in gift cards intended for the personal use of Abedelal, the indictment alleges.

The overtime aspect of the fraud scheme was allegedly carried out by Abedelal and McBride, with assistance from Jackson, two other former employees at the school, and others. The charges allege that Abedelal authorized unearned overtime pay for certain employees and directed them to deliver the proceeds to Abedelal or McBride in the form of cash or gift cards.  Abedelal told the employees that the money would be used to fund legitimate school expenses, when, in fact, Abedelal intended to convert the money to her own personal use, the indictment alleges.  Abedelal, McBride, Jackson, and others prepared or caused to be prepared fraudulent overtime sheets to conceal the scheme, the indictment states.

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

CHICAGO — A federal grand jury has indicted four men on firearm offenses for allegedly trafficking guns from St. Louis to Chicago.

A superseding indictment returned Monday in U.S. District Court in Chicago charges JEROME BOYKIN, 31, of St. Louis, Mo., ROBERT NARUP, 71, of Washington, Mo., RODOLFO ORTEGA, 26, of Chicago, and ROGELIO MANCERA, 26, of Schaumburg, Ill., with willfully dealing firearms without a license.  The indictment charges Boykin and Mancera with possessing multiple firearms while trafficking marijuana in the Chicago area, and it charges Ortega with illegally possessing two firearms as a previously convicted felon.

Arraignments are set for Feb. 23, 2022, at 11:30 a.m., before U.S. District Judge Charles R. Norgle.

The superseding indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department.  Assistant U.S. Attorney Megan DeMarco represents the government. 

ATF investigated the case alongside CPD’s Gun Investigations Team.  Valuable assistance was provided by the U.S. Attorney’s Office in the Eastern District of Missouri, and the St. Louis Field Office of ATF’s Kansas City, Mo., Field Division.

Disrupting illegal firearms trafficking is a centerpiece of the Department of Justice’s cross-jurisdictional strike force aimed at reducing gun violence.  As part of the Chicago 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.

“Firearms traffickers enable unlawful possession of guns and the violence that may follow,” said U.S. Attorney Lausch.  “We will continue to work with our law enforcement partners in Chicago and across the country to bring impactful cases that hold firearms traffickers accountable and reduce violent crime in Chicago.”

“This case is an excellent example of how partnership and coordination among the Chicago Police Department, the U.S. Attorney’s Office and ATF addresses the root causes of gun trafficking,” said ATF SAC de Tineo.  “We will continue to focus on these investigations that have an impact on the gun violence in our community.”

According to criminal complaints previously filed in the case, Narup purchased firearms at gun shows throughout the United States and illegally sold them to Boykin in St. Louis.  Boykin allegedly brought the guns to Chicago and sold them to Mancera in exchange for marijuana.  Mancera then allegedly re-sold the guns to Ortega, who in turn allegedly sold them to buyers on the streets of Chicago.

The charges allege that 23 guns were possessed by Boykin and four guns were possessed by Mancera while they trafficked the marijuana. 

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

Dealing firearms without a license is punishable by up to five years in federal prison.  Possessing a firearm while trafficking marijuana is punishable by a mandatory minimum sentence of five years and a maximum of life.  The illegal firearm possession charge against Ortega is punishable by up to ten years.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A Chicago man has pleaded guilty to a federal charge accusing him of inciting rioting involving multiple incidents of property damage and looting in the city in the summer of 2020.

JAMES MASSEY, 23, pleaded guilty Tuesday to one count of inciting a riot, and participating in and carrying on a riot.  The conviction is punishable by a maximum sentence of five years in federal prison.  U.S. District Judge Matthew F. Kennelly set sentencing for May 10, 2022, at 1:30 p.m.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, 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. Attorney Sheri L. Wong.

“Anyone involved in destructive behavior in Chicago – such as rioting – should expect to be held accountable,” said U.S. Attorney Lausch.  “Our office will continue to work with the FBI, CPD, and our other law enforcement partners to prosecute rioters and others engaged in violent crime.”

“Inciting riots and other unlawful activity is both irresponsible and reckless, and the FBI will continue to work tirelessly with police and prosecutorial partners to ensure public safety is not compromised,” said FBI SAC Buie.

Massey admitted in a plea agreement that on Aug. 9, 2020, he posted multiple videos and messages on Facebook calling for people to travel to downtown Chicago to engage in property damage and looting.  In one of the videos, Massey stated, “Y’all ready? I sent everybody the location to link up at bro.  I trying to get something.  I need to hit a couple stores.”  In another video, Massey stated, “Fitting to go [expletive] them up.  I ain’t missing out.  I am ready to steal.”

Massey admitted in the plea agreement that he and at least three other individuals damaged four stores in the downtown or Near North Side areas of Chicago.

CHICAGO — A federal jury today convicted a Chicago attorney on false statement and tax offenses in connection with funds he received from the failed Washington Federal Bank for Savings.

PATRICK D. THOMPSON, 52, of Chicago, was found guilty on all seven counts against him, including five counts of willfully filing a false income tax return and two counts of knowingly making a false statement to the Federal Deposit Insurance Corp.  Each false statement count is punishable by a maximum sentence of 30 years in federal prison, while each tax count is punishable by up to three years.  U.S. District Judge Franklin U. Valderrama set sentencing for July 6, 2022.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jay N. Lerner, Inspector General of the FDIC’s Office of Inspector General; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Sally Luttrell, Assistant Inspector for Investigations of the Department of the Treasury, Office of Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General.  Valuable assistance was provided by the City of Chicago Inspector General’s Office.  The government is represented by Assistant U.S. Attorneys Michelle Petersen, Brian Netols, and Jeremy Daniel.

According to evidence presented at trial, Thompson from 2011 to 2014 received $219,000 from Chicago-based Washington Federal via a purported loan and other unsecured payments.  He made one re-payment on the loan but then stopped making payments, and he failed to pay interest on the funds he received.  Washington Federal was shut down in 2017 after the Office of the Comptroller of the Currency determined it was insolvent and had at least $66 million in nonperforming loans.  When the FDIC, as successor in interest to Washington Federal, attempted to obtain repayment from Thompson in 2018, he falsely stated that he owed only $110,000 and that those funds were for home improvement.  In reality, Thompson knew he had actually received $219,000 in three separate installments – none of which went towards home improvements – and that $110,000 of it was paid by the bank directly to Thompson’s law firm as Thompson’s capital contribution.

The tax charges stemmed from Thompson falsely representing on five years of income taxes that he was entitled to a mortgage interest deduction for interest payments made on money he received from Washington Federal, even though he knew the loan was not a mortgage loan and he did not make interest payments as reported on those returns.

CHICAGO — A man has been sentenced to more than seven years in federal prison for illegally possessing a loaded handgun on a Chicago street.

TERRANCE WEATHERSBY illegally possessed the gun on the afternoon of Oct. 6, 2018, in the 5800 block of West Fulton Street in Chicago’s Austin neighborhood.  Shortly after 1:00 p.m., Chicago Police officers responding to the sound of gunfire approached the area and observed a man subsequently identified as Weathersby firing a gun multiple times at unidentified individuals down the street, in the presence of bystanders.  Weathersby ran from the police and tossed the gun into a backyard before fleeing in a vehicle.  Other officers pulled over the vehicle a few blocks away and apprehended Weathersby.  Police then searched the area where Weathersby ran and discovered the gun, which was equipped with a high-capacity magazine.

Weathersby, 32, of Chicago, pleaded guilty to a federal charge of illegal possession of a firearm.  He had previously been convicted of felonies in state court, including a firearm offense, and was prohibited by federal law from possessing the gun. 

U.S. District Judge Thomas M. Durkin imposed an 87-month prison sentence Thursday 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; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and David Brown, Superintendent of the Chicago Police Department.

“A felon carrying a gun fitted with a large capacity magazine, walking down our residential streets and shooting, strikes fear into the hearts of ordinary people,” Assistant U.S. Attorney Sheri H. Mecklenburg argued in the government’s sentencing memorandum.  “Defendant’s offense conduct was brazen, dangerous, and adversely affected public safety.”

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 — A suburban Chicago man pleaded guilty in federal court today to charges of child pornography and traveling to engage in sexual conduct with a minor.

JEREMIAH HARRIS, 22, of Naperville, Ill., pleaded guilty to one count of receipt of child pornography and one count of traveling with the intent to engage in illicit sexual conduct.  The child pornography charge carries a mandatory minimum sentence of five years in federal prison and a maximum of 20 years, while the travel charge is punishable by up to 30 years.  U.S. District Judge Manish S. Shah set sentencing for June 28, 2022, at 10:30 a.m.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The investigation was conducted by the FBI Chicago Child Exploitation and Human Trafficking Task Force, which includes the Cook County Sheriff’s Office, Cook County State’s Attorney’s Office, and Chicago Police Department.  The Crystal Lake, Ill., Police Department and FBI Resident Agency in Waco, Texas, provided valuable assistance.  The government is represented by Assistant U.S. Attorney Kelly L. Guzman.

The child pornography charge involves sexually explicit photographs and videos that Harris repeatedly requested from a 17-year-old boy in 2020.  Harris admitted in a plea agreement that the boy sent the photos and videos of himself to Harris in exchange for $2,000.  Harris also admitted in the plea agreement that he requested and received other images of child pornography from two other minor boys, and he attempted to entice one of them to engage in sexual activity.

The travel charge pertains to Harris traveling in 2019 from Dallas, Texas, to Orlando, Fla., to engage in sexually explicit conduct with a 15-year-old boy.  Harris admitted in the plea agreement that he directed the boy to meet him in a public bathroom, where Harris sexually assaulted him.

CHICAGO — A man has been sentenced to seven years in federal prison for illegally possessing a loaded semiautomatic handgun at a block party on the South Side of Chicago.

ANTHONY CARR illegally possessed the gun on the night of July 8, 2020, in the 6100 block of South Normal Boulevard in Chicago’s Englewood neighborhood.  Shortly after 11:00 p.m., Chicago Police officers approached the block party crowd and observed Carr, who immediately attempted to run away while holding his waistband.  Ignoring police commands to stop, Carr tossed the gun into a large outdoor tent before officers were able to apprehend him.

Carr, 33, of Chicago, pleaded guilty last year to a federal charge of illegal possession of a firearm.  Carr had previously been convicted of felonies in state court, including multiple armed robberies, and was prohibited by federal law from possessing the gun. 

U.S. District Judge Charles R. Norgle imposed the federal prison sentence Monday after a hearing in U.S. District Court in Chicago.

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

“The illegal possession of guns by felons are very serious offenses that threaten the safety of the public,” Assistant U.S. Attorney Misty N. Wright argued in the government’s sentencing memorandum.  “Defendant and other felons who carry guns must understand that illegally possessing weapons on the streets of Chicago translates to real consequences and real punishment.”

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 — A man has been indicted on a federal arson charge for allegedly using a Molotov cocktail to set fire to a building in the Pilsen neighborhood of Chicago.

JUAN AGUILAR, 37, of Chicago, is charged with one count of maliciously damaging and destroying a building, and one count of unlawfully possessing an improvised incendiary bomb, according to an indictment returned in U.S. District Court in Chicago.  The indictment accuses Aguilar of setting fire to a building in the 1600 block of West Cullerton Street in Chicago on Sept. 24, 2019.

Aguilar was taken into federal custody on Monday.  He pleaded not guilty at his arraignment Monday afternoon in federal court in Chicago.  A detention hearing is set for today at 11:15 a.m. before U.S. Magistrate Judge Jeffrey T. Gilbert.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives in Chicago; and David Brown, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorney Jason A. Julien.

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

CHICAGO — A federal jury has convicted a man on a firearm charge for illegally selling a “ghost gun” to a convicted felon in a Chicago suburb.

The jury in U.S. District Court in Chicago on Thursday convicted JOSEPH GHANDOUR of illegally selling an AR-15 rifle to the felon during a meeting in a grocery store parking lot in Deerfield, Ill., on July 28, 2017.  The rifle was considered a “ghost gun” because it contained no identifiable serial number and had been manufactured by another individual from parts collected from various sources.  Unbeknownst to Ghandour, the felon to whom he sold the rifle was cooperating with law enforcement.

Ghandour, 31, of Glenview, Ill., was convicted of selling or disposing of a firearm to a convicted felon who could not lawfully possess a firearm.  The charge is punishable by a maximum sentence of ten years in federal prison.  U.S. District Judge Sara L. Ellis scheduled sentencing for June 22, 2022, at 10:30 a.m.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorneys Albert Berry III and Chester Choi.

Disrupting illegal firearms trafficking is a centerpiece of the Department of Justice’s cross-jurisdictional strike force aimed at reducing gun violence.  As part of the Chicago firearms trafficking strike force, the U.S. Attorney’s Office collaborates with 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 — A telecommunications company conspired with former employees of Chicago-based Motorola Solutions Inc. to steal digital mobile radio technology developed by Motorola, according to an indictment unsealed today in federal court in Chicago.

According to the indictment, Motorola Solutions developed the DMR technology through years of research and design.  Motorola Solutions marketed and sold the radios, which are sometimes referred to as “walkie-talkies,” in the United States and elsewhere.  The indictment alleges that China-based HYTERA COMMUNICATIONS CORP. LTD. recruited and hired Motorola Solutions employees and directed them to take proprietary and trade secret information from Motorola without authorization.  The charges allege that while still employed at Motorola, some of the employees allegedly accessed the trade secret information from Motorola’s internal database and sent multiple emails describing their intentions to use the technology at Hytera.

From 2007 to 2020, Hytera and the recruited employees used Motorola’s proprietary and trade secret information to accelerate the development of Hytera’s DMR products, train Hytera employees, and market and sell Hytera’s DMR products throughout the world, the indictment states.  According to the indictment, Hytera paid the recruited employees higher salaries and benefits than what they received at Motorola.

The 21-count indictment was partially unsealed today by court order in U.S. District Court in Chicago.  It charges Hytera with conspiracy to commit theft of trade secrets.  Hytera and others are also charged with individual counts of possession or attempted possession of stolen trade secrets.  The names of other defendants who have not appeared in U.S. District Court are redacted.

The indictment was announced by John C. Kocoras, First Assistant United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorneys Melody Wells, Steven Dollear, and Vikas Didwania.

Hytera’s arraignment in federal court in Chicago has not yet been scheduled.  If convicted, the company faces a potential criminal fine of three times the value of the stolen trade secret to the company, including expenses for research, design, and other costs that it allegedly avoided.

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.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

A federal indictment was unsealed today in the Northern District of Illinois, charging a telecommunications company with conspiracy to commit theft of trade secrets. The indictment alleges that a telecommunications company conspired with former employees of Chicago-based Motorola Solutions Inc. to steal digital mobile radio (DMR) technology developed by Motorola.

According to court documents, Motorola Solutions developed the DMR technology through years of research and design. Motorola Solutions marketed and sold the radios, which are sometimes referred to as “walkie-talkies,” in the United States and elsewhere. The indictment alleges that PRC-based Hytera Communications Corp. LTD recruited and hired Motorola Solutions employees and directed them to take proprietary and trade secret information from Motorola without authorization. The charges allege that, while still employed at Motorola, some of the employees allegedly accessed the trade secret information from Motorola’s internal database and sent multiple emails describing their intentions to use the technology at Hytera.

As alleged, from 2007 to 2020, Hytera and the recruited employees used Motorola’s proprietary and trade secret information to accelerate the development of Hytera’s DMR products, train Hytera employees, and market and sell Hytera’s DMR products throughout the world, the indictment states. According to the indictment, Hytera paid the recruited employees higher salaries and benefits than what they received at Motorola.

The 21-count indictment was partially unsealed today in U.S. District Court in Chicago by court order. It charges Hytera with conspiracy to commit theft of trade secrets. Hytera and others are also charged with individual counts of possession or attempted possession of stolen trade secrets. The names of other defendants who have not appeared in U.S. District Court are redacted.

If convicted, Hytera faces a potential criminal fine of three times the value of the stolen trade secret to the company, including expenses for research, design, and other costs that it avoided. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, First U.S. Attorney John C. Kocoras for the Northern District of Illinois and Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office made the announcement.

Assistant U.S. Attorneys Melody Wells, Steven Dollear and Vikas Didwania for the Northern District of Illinois are prosecuting the case, with valuable assistance provided by Trial Attorney Nic Hunter of the National Security Division’s Counterintelligence and Export Controls Section.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

CHICAGO — A Chicago man has been sentenced to more than four years in prison for cyberstalking his federal probation officer.

ISAAC MYLES partially exposed his genitals to an officer from the U.S. Probation Office during an official visit to Myles’s home in September 2018.  Myles at the time was on court-supervised release after recently completing a federal prison sentence.  After the incident in his home, Myles repeatedly called the officer, leaving sexually explicit voicemails on her phone and referring to the officer in obscene and degrading terms.

Myles, 52, pleaded guilty last year to a federal charge of cyberstalking.  U.S. District Judge Ronald A. Guzman on Wednesday sentenced Myles to four years and four months in federal prison, to be followed by three years of court-supervised release.

The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; David Gelement, Acting U.S. Marshal for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government was represented by Assistant U.S. Attorney Jared C. Jodrey.

CHICAGO — A suburban Chicago man has been charged in federal court with fraudulently obtaining unemployment benefits in the names of hundreds of individuals whose information was used without their knowledge.

DARRONTE REGGANS, 33, of Matteson, Ill., is charged with ten counts of wire fraud and two counts of aggravated identity theft.  Reggans pleaded not guilty during his arraignment Tuesday in U.S. District Court in Chicago.  A status hearing is scheduled for March 1, 2022, before U.S. District Judge Martha M. Pacold.

According to the indictment, Reggans obtained unemployment insurance benefits from the Illinois Department of Employment Security by falsely and fraudulently representing that the purported claimants had worked and been terminated without fault by various employers.  Reggans requested payment from IDES via debit card and directed the agency to mail the cards to various addresses he selected, the indictment states.  Reggans then allegedly used the cards to withdraw the fraudulently obtained benefits from automated teller machines.

The charges allege that Reggans filed and caused to be filed approximately 296 fraudulent claims in the names of other individuals, using their names, Social Security numbers, dates of birth, and other personal identifying information without their knowledge.  The fraudulent claims sought at least $3.6 million in benefits and caused IDES to issue benefits totaling approximately $174,000, the indictment states.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Irene Lindow, Special Agent-in-Charge of the Chicago Division of the U.S. Department of Labor, Office of Inspector General; and William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.  Substantial assistance was provided by the Matteson, Ill., Police Department, and the DuPage County State’s Attorney’s Office.  The government is represented by Assistant U.S. Attorney Matthew Schneider.

“Unemployment insurance benefits provide a lifeline to many Americans facing economic hardships and job losses,” said U.S. Attorney Lausch.  “We will continue to work with our federal and state partners to hold accountable those who seek to commit fraud in connection with this important program.”

“An important part of the mission of the Office of Inspector General is to investigate allegations involving unemployment insurance fraud,” said DOL-OIG SAC Lindow.  “We will continue to work with our law enforcement partners to investigate these types of allegations.”

“The U.S. Postal Inspection Service is dedicated to holding responsible those who attempt to compromise the integrity of the U.S. Mail in furtherance of criminal activity,” said USPIS Inspector-in-Charge Hedrick.  “Postal Inspectors will continue working with our law enforcement partners to pursue justice on behalf of Postal customers in our community.”

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, while each count of aggravated identity theft is punishable by a mandatory two-year sentence.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A man has been indicted on federal firearm charges for allegedly straw purchasing 27 handguns from stores in the Chicago suburbs.

MATTHEW JAMAAL JOHNSON purchased the handguns in 2020 and 2021 from licensed firearms dealers in Oak Forest, Ill., Mokena, Ill., Hodgkins, Ill., and Lansing, Ill., and falsely certified on federal forms that he was the actual buyer, according to an indictment unsealed Tuesday in U.S. District Court in Chicago.  In reality, Johnson purchased the guns on behalf of another individual, the charges allege.

Johnson, 34, of Dolton, Ill., is charged with 12 counts of making a false and fictitious statement in connection with the acquisition of a firearm.  Johnson was arrested Tuesday.  He pleaded not guilty during his arraignment Tuesday afternoon in federal court in Chicago.  A detention hearing is scheduled for Feb. 8, 2022, before U.S. Magistrate Judge Maria Valdez.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.  The Chicago Police Department provided valuable assistance.  The government is represented by Assistant U.S. Attorney Margaret Steindorf.

Disrupting illegal firearms trafficking is a centerpiece of the Department of Justice’s cross-jurisdictional strike force aimed at reducing gun violence.  As part of the Chicago firearms trafficking strike force, the U.S. Attorney’s Office collaborates with ATF, the Chicago Police Department, 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.

“Straw purchasers put guns in the wrong hands,” said U.S. Attorney Lausch.  “Our office will continue to use federal laws to prosecute straw purchasers and hold them accountable for trafficking illegally purchased firearms.”

“Straw purchasers play a grave role in enabling the unlawful possession of guns and the violence that follows,” said ATF SAC de Tineo.  “Our agents are committed to working with our law enforcement partners and prosecutors to stop the flow of guns to individuals who cannot legally purchase them.”

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 in the indictment is punishable by a maximum sentence of ten 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 arrested on a federal drug charge after law enforcement seized fentanyl and a “pill press” in his suburban Chicago residence.

A complaint filed in U.S. District Court in Chicago charges TROY CLARK, 51, of Calumet City, Ill., with possession of a controlled substance with intent to distribute.

Law enforcement this week conducted a court-authorized search of Clark’s residence in Calumet City and discovered distribution quantities of fentanyl, as well as equipment that can be used to manufacture counterfeit pills, including a pill press, funnel, metal press, and dye pieces, the complaint states.

Clark was arrested Tuesday.  A detention hearing in federal court is scheduled for Feb. 8, 2022, at 2:00 p.m. before U.S. Magistrate Judge Maria Valdez.

The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; and David Brown, Superintendent of the Chicago Police Department.  The Calumet City Police Department provided valuable assistance.  The government is represented by Assistant U.S. Attorney Beth E. Palmer. 

The public is reminded that a complaint 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.

ROCKFORD — An Iowa man has been indicted by a federal grand jury in Rockford on federal drug and firearm charges.

BRADLEY S. GODDARD, 33, of Clinton, Iowa, is charged with possession of a controlled substance with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a previously convicted felon, according to an indictment returned Jan. 25, 2022, in U.S. District Court in Rockford.  The drug charge involves 50 grams or more of methamphetamine, the indictment states.  The charges allege that Goddard possessed the drugs and firearm on Sept. 8, 2021, in Fulton, Ill.

Goddard pleaded not guilty Wednesday during arraignment in federal court.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert J. Bell, Special Agent-in-Charge of the Chicago Office of the U.S. Drug Enforcement Administration, and Nicholas Neblung, Chief of Police of the Fulton, Ill., Police Department.  The Whiteside County, Ill., Sheriff’s Office and the Morrison, Ill., Police Department assisted in the investigation.  The government is represented by Assistant U.S. Attorney Vincenza L. Tomlinson.

The public is reminded that an indictment contains only charges and is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.  

CHICAGO — A suburban Chicago dentist fraudulently obtained $1.2 million in medical care loans for purported dental work that was never performed, according to a federal fraud charge.

MICHAEL D. EGAN, 58, of Orland Park, Ill., is charged with one count of wire fraud in a criminal information filed Tuesday in U.S. District Court in Chicago.  The charge is punishable by up to 20 years in federal prison.  Arraignment is scheduled for Thursday at 1:30 p.m. before U.S. District Judge Edmond E. Chang.

The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorney Kartik K. Raman.

Egan owned and operated a dental practice in Tinley Park, Ill.  The fraud charge alleges that in 2015 and 2016, Egan submitted fraudulent applications to a lending company for medical care loans that would purportedly finance certain patients’ dental care.  In reality, Egan knew that he would not, and in fact did not, perform the dental work on those patients, the information states.  In some instances, after a loan was approved Egan caused the amount to be increased by falsely informing the lending company that additional dental work was needed, when, in fact, Egan knew that no additional treatment – or any treatment at all – would be performed, the information states.

The charge alleges that Egan fraudulently obtained approximately $1.2 million from the lending company.  After receiving the fraudulently obtained loan proceeds directly from the lending company, Egan allegedly paid a portion of the money to the purported dental patients as well as to recruiters who had identified the patients to apply for the loans. 

The public is reminded that an information is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines. 

CHICAGO — A convicted felon pleaded guilty today to a federal firearm violation for illegally possessing a semi-automatic rifle at the Jesse Brown VA Medical Center in Chicago.

BERNARD HARVEY, JR., 43, of Indianapolis, Ind., pleaded guilty to one count of illegal possession of a firearm by a convicted felon.  The charge is punishable by up to ten years in federal prison.  U.S. District Judge Robert M. Dow, Jr., set sentencing for May 5, 2022, at 10:30 a.m.

Harvey illegally possessed the rifle on Aug. 12, 2019, at the medical center, 820 S. Damen Ave. in Chicago.  Harvey had previously been convicted in the Circuit Court of Cook County of multiple felonies, including gun offenses, and was not lawfully allowed to possess the rifle.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department.  The Jesse Brown VA Police Department provided valuable assistance.  The government is represented by Assistant U.S. Attorney Corey B. Rubenstein.

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 — A federal grand jury has indicted a man for allegedly robbing cell phone stores in the Chicago suburbs.

OCIE BANKS, JR., brandished a firearm in three robberies and one attempted robbery in late 2020 and early 2021, according to an indictment unsealed Thursday in U.S. District Court in Chicago.  The heists and attempted heist occurred at Metro by T-Mobile stores in Cicero, Ill., and Berwyn, Ill.

The indictment charges Banks, 33, of Berwyn, Ill., with three counts of robbery, one count of attempted robbery, and four counts of using, carrying, and brandishing a firearm during a crime of violence.  Banks pleaded not guilty Thursday during his arraignment in federal court.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorney Alejandro G. Ortega.

The public is reminded that an indictment is not evidence of guilt.  The 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 robbery and attempted robbery is punishable by a maximum sentence of 20 years in federal prison, while each firearm count carries a mandatory seven-year sentence.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

ROCKFORD — An Illinois attorney has been sentenced to two years in federal prison for committing bankruptcy fraud.

U.S. District Judge Iain D. Johnston imposed the sentence Wednesday on KEVIN O. JOHNSON, also known as “K.O. Johnson,” 55, of Sycamore, Ill. 

A jury in August convicted Johnson on bankruptcy fraud and other charges after a two-week trial in federal court in Rockford.  The charges related to Johnson’s Chapter 7 bankruptcy proceeding initiated on Dec. 31, 2011.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The U.S. Trustee’s Madison, Wisc., and Chicago offices provided substantial assistance.  The government was represented by Assistant U.S. Attorneys Matthew Schneider, Michael Love, and Michael Beckman.

CHICAGO — An administrative assistant at a suburban Chicago medical practice has been sentenced to a year in federal prison for fraudulently writing opioid prescriptions to an acquaintance.

AMANDA BIESIADA worked as an administrative assistant at Hinsdale Orthopaedics, a medical practice in Westmont, Ill.  Biesiada was not a licensed physician and could not lawfully prescribe medications without the direction and approval of licensed doctors.

From 2017 to 2019, Biesiada fraudulently wrote 85 prescriptions to the acquaintance for hydrocodone, oxycodone, and other controlled substances.  Biesiada purported to write the prescriptions on behalf of six Hinsdale Orthopaedics health care providers.  In reality, the providers did not direct or approve the prescriptions.  Biesiada attempted to conceal the fraudulent prescriptions by marking them as having been “filed in error” in the Hinsdale Orthopaedics prescription system.

Biesiada, 39, of Alsip, Ill., pleaded guilty last year to one count of knowingly and intentionally dispensing controlled substances outside the usual course of professional practice and without a legitimate medical purpose.  U.S. District Judge John J. Tharp, Jr., on Thursday sentenced Biesiada to a year and a day in federal prison.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration.

“The opioid epidemic has devastated the lives of countless individuals through addiction and overdose,” Assistant U.S. Attorney G. David Rojas argued in the government’s sentencing memorandum.  “Defendant contributed to this national crisis by helping make opiates available to an individual who otherwise would not and should not have had access to them.”

CHICAGO — A suburban Chicago nurse removed morphine from bottles prescribed to two patients and replaced it with another liquid, knowing the diluted substance would be dispensed to the patients, according to a federal indictment returned in U.S. District Court in Chicago.

SARAH DIAMOND was employed as the Assistant Director of Nursing at a Chicago-area medical rehabilitation center.  The indictment alleges that Diamond tampered with the liquid morphine in August 2021 with reckless disregard and extreme indifference for the risk that the patients would be placed in danger of bodily injury.

Diamond, 29, of Woodstock, Ill., is charged with two counts of tampering with a consumer product.  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 Lynda M. Burdelik, Special Agent-in-Charge of the Chicago Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations.  Valuable assistance was provided by the Crystal Lake, Ill., Police Department.  The government is represented by Assistant U.S. Attorney Kelly Greening.

“Patients deserve to have confidence that they are receiving the legitimately prescribed medication and not a diluted substance,” said U.S. Attorney Lausch.  “Health care practitioners who illicitly tamper with prescription drugs will be prosecuted to the fullest extent of the law.”

“Patients should know they are receiving proper treatment from those entrusted with their medical care,” said FDA SAC Burdelik.  “We must hold medical personnel accountable when they take advantage of their unique position and tamper with medications their patients need, potentially exposing them to contaminated medical products.”

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 in the indictment carries a maximum sentence of ten years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A Chicago attorney used insider information obtained from a friend to purchase shares of an education-technology company before it publicly announced strong quarterly earnings, according to an indictment returned in federal court.

The indictment accuses attorney DAVID SARGENT of obtaining material, non-public information from CHRISTOPHER KLUNDT, a management-level employee of the company and a friend since college.  The information pertained to the company’s 2020 first-quarter earnings, which Klundt knew would be strong based on internal meetings he had attended, the indictment alleges.  After receiving the information from Klundt, Sargent purchased numerous shares and call options of the company’s stock ahead of the earnings announcement and then sold them shortly thereafter, the indictment states.  In the interim, the company’s stock price increased.  Sargent made approximately $110,000 from the trades, the charges allege.

The indictment was returned Monday in U.S. District Court in Chicago.  It charges Sargent, 37, of Chicago, and Klundt, 38, of San Francisco, Calif., with conspiracy, insider trading, and securities fraud.  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 Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Assistant U.S. Attorneys Matthew Getter and Vikas Didwania represent the government.

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.

CHICAGO — A man has been arrested for allegedly robbing two suburban Chicago banks in recent weeks.

ANTONIO E. COLLINS has been charged with robbing a Chase Bank branch in Bolingbrook, Ill., on Dec. 21, 2021, and a BMO Harris Bank branch in Homewood, Ill., on Jan. 3, 2022.  In each robbery, Collins handed the teller a handwritten note demanding money and stating that he would shoot people if the teller did not comply, according to a criminal complaint filed in U.S. District Court in Chicago.  Collins made off with approximately $2,868 from the Chase robbery, and approximately $21,836 from the BMO Harris heist, the complaint states.

Collins, 26, of North Riverside, Ill., was arrested on Jan. 6, 2022.  The complaint charges him with two counts of bank robbery.  A detention hearing in federal court in Chicago is scheduled for Tuesday at 3:00 p.m. before U.S. Magistrate Judge Sunil R. Harjani.

The arrest and charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Substantial investigative assistance was provided by the Cook County Sheriff’s Office, Illinois State Police, and Police Departments in Bolingbrook, Ill., Homewood, Ill., North Riverside, Ill., Evergreen Park, Ill., and Orland Park, Ill.  The government is represented by Assistant U.S. Attorney Andréa Campbell.

The public is reminded that a complaint 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 bank robbery charge 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 Chicago physician used insider information to purchase shares of a California-based biotechnology company before it publicly announced positive results from a clinical trial of an experimental cancer drug, according to a federal criminal charge filed by the U.S. Attorney’s Office in Chicago.

DANIEL V.T. CATENACCI, a gastrointestinal medical oncologist in Chicago, served as one of the lead physicians and primary field investigators on the biotechnology company’s clinical trial.  Dr. Catenacci through this position allegedly received confidential information about the company and its clinical trial results. 

In November 2020, Dr. Catenacci used material, non-public information about the trial results to make more than $134,000 in illegal profits from the purchase and sale of securities in the company, according to a criminal information filed Friday in U.S. District Court in Chicago.  Dr. Catenacci purchased more than 8,000 shares before the company announced positive results from the trial, and then sold those shares shortly after the announcement, the information states.  In the interim, the shares held by Dr. Catenacci tripled or quadrupled in value, the information states.

The information charges Dr. Catenacci, 45, of Chicago, with one count of securities fraud.  The charge is punishable by up to 20 years in federal prison.  Arraignment in federal court in Chicago has not yet been scheduled.

The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The U.S. Securities and Exchange Commission provided valuable assistance.  Assistant U.S. Attorney Brian Havey represents the government.

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

CHICAGO — A suburban Chicago man has been sentenced to 30 years in federal prison for violently sex trafficking multiple women over the course of a decade.

From 2007 to 2016, BENJAMIN BIANCOFIORI used false promises of assistance to entice women into performing commercial sex acts.  Biancofiori recruited multiple victims and arranged for them to travel to meet customers in the Chicago area and other locations in the United States.  He often beat and punched the women, and he kept almost all of the money they received.  On one occasion, Biancofiori arranged for a victim to be returned to him at gunpoint after she tried to leave him.

A jury in 2018 convicted Biancofiori, 41, of Naperville, Ill., on sex trafficking and obstruction charges.  U.S. District Judge Harry D. Leinenweber imposed the prison sentence Thursday 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; Emmerson Buie, Jr., Special Agent in Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  Substantial assistance was provided by the U.S. Attorney’s Office for the District of Colorado, the Denver Field Office of the FBI, the Carol Stream, Ill., Police Department, and the Naperville Police Department.  The government is represented by Assistant U.S. Attorneys Erika Csicsila and Diane MacArthur.

Two co-defendants of Biancofiori pleaded guilty and admitted conspiring with Biancofiori to engage in sex trafficking.  MARCUS WILLIS, of Wheaton, Ill., and NATHAN PEREZ, of West Chicago, Ill., are awaiting sentencing.

ROCKFORD — A Rockford man has been sentenced to four years in federal prison for illegally possessing a loaded handgun with an obliterated serial number. 

DONTREL U. BROWN, 24, illegally possessed the gun on May 13, 2020, in Rockford.  Brown at the time was on probation for previous felony convictions and was prohibited by federal law from possessing the firearm.

U.S. District Judge Iain D. Johnston imposed the sentence Monday 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 Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, & Explosives.  The Rockford Police Department provided valuable assistance in the investigation.  The government was represented by Assistant U.S. Attorney Jessica S. Maveus.

CHICAGO — A Chicago consultant pleaded guilty today to a federal tax offense for willfully attempting to evade and defeat the assessment of income taxes.

EDWARD ACEVEDO, 58, of Chicago, pleaded guilty to a tax evasion charge before U.S. District Judge Matthew F. Kennelly.  The conviction is punishable by a maximum sentence of five years in federal prison.  Judge Kennelly set sentencing for March 9, 2022.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Diane MacArthur, Sarah E. Streicker, Timothy J. Chapman, Michelle Kramer, and Julia Schwartz.

Acevedo worked as a self-employed consultant.  He admitted in a plea agreement that he willfully failed to file an individual income tax return for the calendar years 2015 through 2018, causing a loss to the IRS of at least approximately $37,380.  Acevedo further admitted that he attempted to evade taxes by handling his affairs in a manner so as to avoid the creation and maintenance of customary business and accounting records.

After discovering that he was under investigation by the IRS, Acevedo provided incomplete information to his accountant concerning the sources of Acevedo’s income and expenses for 2017 and 2018, causing the accountant to prepare incomplete federal tax returns for those years, the plea agreement states.

CHICAGO — A Will County woman has been sentenced to more than five years in federal prison for engaging in sexual conduct with an underage boy and directing him to send her sexually explicit images of himself.

DAYNA CHIDESTER engaged in sexual conduct with the boy on numerous occasions in November and December 2018.  Chidester knew at the time that the boy was 14 years old.  Chidester also directed the boy to take photos of himself while he was engaged in sexually explicit conduct, and to send the photos to Chidester’s cell phone.

Chidester, 53, of Manhattan, Ill., pleaded guilty earlier this year to a charge of receiving child pornography.  U.S. District Judge Jorge L Alonso on Wednesday sentenced Chidester to five years and four months in federal prison.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the Will County State’s Attorney’s Office, Illinois State Police, and the Manhattan, Ill., Police Department.

“Defendant’s offense was not a one-time lapse in judgment, but an ongoing pattern of criminal activity,” Assistant U.S. Attorney Ashley A. Chung argued in the government’s sentencing memorandum.  “Knowing full well that what she was doing was both reprehensible and criminal, defendant repeatedly victimized a child who trusted defendant.”

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 man has been arrested on a federal firearm charge for allegedly illegally possessing a loaded machine gun in Chicago.

An indictment unsealed today in U.S. District Court in Chicago charges KEYZOE WILLIAMS, 21, of Chicago, with one count of illegal possession of a machine gun.  The indictment accuses Williams of possessing a handgun equipped with a conversion device, also known as an “auto sear” or “Glock switch.”  The device transformed the firearm into a machine gun capable of automatically shooting more than one shot with a single pull of the trigger, the indictment alleges.  Williams allegedly possessed the machine gun in Chicago from February to August of this year.

Williams was arrested this morning and made an initial appearance in federal court this afternoon.  U.S. Magistrate Judge Susan E. Cox scheduled a detention hearing for Dec. 14, 2021, at 3:30 p.m.

The indictment and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives.  Valuable assistance was provided by the Willowbrook, Ill., Police Department, Illinois State Police, Chicago Police Department, DuPage County State’s Attorney’s Office, and the DuPage Metropolitan Emergency Response and Investigations Team.  The government is represented by Special Assistant U.S. Attorney Peter Madriñan.

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.

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

CHICAGO — An ongoing federal investigation into the failure of Washington Federal Bank for Savings in Chicago has resulted in criminal charges against three former members of the bank’s Board of Directors who allegedly conspired to obstruct regulators and falsify bank records.

Washington Federal was closed in December 2017 after the Office of the Comptroller of the Currency determined that the bank was insolvent and had at least $66 million in nonperforming loans.  Several former Washington Federal employees, including the bank’s Chief Financial Officer and Treasurer, were previously indicted for allegedly conspiring with an Illinois attorney – ROBERT M. KOWALSKI, of Chicago – and other individuals to embezzle money from the bank.   On Tuesday, a federal grand jury in Chicago returned a 37-count superseding indictment that added four new defendants, including the three former Board members, bringing the total number of charged defendants to fourteen.

The three former Board members charged in the superseding indictment are WILLIAM M. MAHON, 55, of Chicago, JANICE M. WESTON, 63, of Orland Park, Ill., and GEORGE F. KOZDEMBA, 71, of Fort Myers, Fla.  Mahon, Weston, and Kozdemba are charged with conspiracy to falsify bank records and to deceive and obstruct the OCC.  Mahon also faces tax charges for allegedly willfully filing false income tax returns. 

The fourth newly charged defendant is Robert Kowalski’s brother, real estate developer WILLIAM A. KOWALSKI, 56, of Chicago, who is charged with conspiracy to embezzle bank funds. 

Arraignments in U.S. District Court in Chicago have not yet been scheduled.

The superseding indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jay N. Lerner, Inspector General of the FDIC’s Office of Inspector General; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Michael Powell, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; Sally Luttrell, Assistant Inspector for Investigations of the Department of the Treasury, Office of Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General.  Valuable assistance was provided by the City of Chicago Inspector General’s Office and the U.S. Trustee Program.  The government is represented by Assistant U.S. Attorneys Brian Netols, Michelle Petersen, and Jeremy Daniel, and Special Assistant U.S. Attorney Jeffrey Snell.

The superseding indictment alleges that the bank’s former Vice President - JAMES R. CROTTY, of Tinley Park, Ill. – and two other employees made false entries and documents in Washington Federal’s records to support insider loans to Mahon and others.  The employees – former Corporate Secretary JANE V. IRIONDO, of Boise, Idaho, and former loan officer CATHY M. TORRES, of Chicago – allegedly altered and caused to be altered appraisals for two properties owned by Mahon that served as collateral for two mortgages at Washington Federal.  The false items on the altered appraisals include inflated appraisal values and inflated values for the listed comparable sales, the indictment states.  The superseding indictment also alleges that Mahon concealed a loan he received from Washington Federal’s president in applications for loans from Washington Federal.

The new charges allege that when the OCC was evaluating Washington Federal’s loan portfolio prior to its failure, Crotty, Mahon, Weston, and Kozdemba made and caused to be made false entries in bank records and provided them to the OCC with the intent to deceive the agency and obstruct its examination.  The defendants also falsified records to make it appear that Washington Federal was operating in compliance with banking rules and internal policies and controls, the indictment states.

In addition to the new defendants and charges, the superseding indictment renews the charges previously filed against the other defendants.  Those charges allege a conspiracy to embezzle at least $31 million in bank funds.  Crotty and other bank employees allegedly transferred bank funds to Robert Kowalski and other individuals outside the bank without all of the required documentation and often without any documentation whatsoever.  One of the individuals outside the bank – real estate developer BOGUSLAW KASPROWICZ, of Burbank, Calif. – allegedly embezzled $14.3 million, at least $1.6 million of which was used by Kasprowicz for the benefit of the bank’s former president, who has since died and is not charged in the indictment.  Kasprowicz allegedly paid credit card accounts in the name of the bank president or an entity associated with him, and also made payments to another bank for a loan on the purchase of a $450,000 Sea Ray powerboat called “Expelliarmus.”

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.

CHICAGO — A Chicago-area physician unlawfully used veterinary catheters to perform intrauterine inseminations on his patients, according to a federal criminal charge filed today.

A criminal information filed in U.S. District Court in Chicago accuses JOEL G. BRASCH of unlawfully using the veterinary catheter devices on his patients from 2016 to 2018.  The devices were considered adulterated in that they had not been approved by the U.S. Food and Drug Administration for use on human patients.

Dr. Brasch, 61, of Skokie, Ill., is charged with receipt in interstate commerce and delivery of an adulterated device.  The charge is punishable by a maximum sentence of a year in federal prison and a fine of up to $100,000.  Arraignment in federal court has not yet been scheduled.

The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Lynda M. Burdelik, Special Agent-in-Charge of the Chicago Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The U.S. Office of Personnel Management provided valuable assistance.  The government is represented by Assistant U.S. Attorneys Sarah E. Streicker and Corey B. Rubenstein.

“The use of a veterinary device in a medical procedure like IUI poses a danger to the health and safety of patients,” said U.S. Attorney Lausch.  “We will continue to work with our law enforcement partners to hold accountable those who endanger the public health through the use of adulterated medical devices.”

“In procedures such as IUI, every step should strictly follow protocols in order to protect the patient’s health and safety and ensure the efficacy of the procedure,” said FDA SAC Burdelik.  “Utilizing instruments designed for animal use in humans can put patients at risk.  We will continue to investigate and bring to justice those who use unapproved devices on their human patients.”

“Our citizens place an immense amount of trust in healthcare professionals and the public should feel confident in the knowledge that the FBI works tirelessly with our partners to ensure that that trust is not misplaced,” said FBI SAC Buie.

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

ROCKFORD — Two inmates at Thomson Penitentiary in Thompson, Ill., were indicted today by a federal grand jury on murder and hate crime charges relating to the beating death of a fellow inmate. 

BRANDON C. SIMONSON, 37, also known as “Whitey,” and KRISTOPHER S. MARTIN, 39, also known as “No Luck,” were each charged with conspiracy to commit murder, second-degree murder, hate crime, and assault resulting in serious bodily injury, according to an indictment returned in U.S. District Court in Rockford.  Arraignments have not yet been scheduled.

The four-count indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorney Vincenza L. Tomlinson.

“Hatred and violence on the basis of religion have no place in our society,” said U.S. Attorney Lausch.  “We will continue to work with our federal, state, and local law enforcement partners to protect the civil rights of all Americans.”

“All Americans have the right to live their lives without fear of race or religion-based violence, and FBI Chicago takes very seriously its responsibility to uphold the civil rights of Illinoisans,” said FBI SAC Buie.

According to the indictment, Martin and Simonson were members of a white supremacist group called the Valhalla Bound Skinheads.  On March 2, 2020, Martin and Simonson conspired to assault fellow inmate Matthew Phillips because of Phillips’s actual and perceived race and religion, namely Jewish, the indictment states.  Martin and Simonson continuously struck Phillips in the upper body, face, and head even after Phillips became defenseless, the charges allege.

Conspiracy to commit murder, second-degree murder, and hate crime each carry a maximum sentence of life imprisonment, while the maximum sentence for the assault charge is ten years.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

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.

ROCKFORD — A Loves Park woman has pleaded guilty to a federal charge accusing her of fraudulently obtaining more than $1 million from her employer.

TAMMY E. MOORE, 54, pleaded guilty Friday to wire fraud before U.S. District Judge Iain D. Johnston.  Sentencing is set for April 19, 2022, 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 Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The Loves Park Police Department assisted in the investigation.  The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.

Moore was an office manager for a company in Loves Park that made custom components for a variety of industries.  Moore admitted in a plea agreement that from 2012 to 2020, she fraudulently obtained more than $1 million from the company.  Moore issued company checks to herself and her husband’s business from the company’s account, forged the signature of the company’s owner on checks, deposited the checks into her personal bank account and her husband’s business account for her personal benefit, and then initiated online transfers to move the money.  Moore concealed these transactions by making it appear as though the checks were for legitimate business purposes and by deleting the company’s records of the forged checks.     

Moore is required to pay restitution to the company in the amount of $1,115,629.  The wire fraud charge carries a maximum sentence of 20 years in federal prison. 

CHICAGO — The owner of a cannabis company has been charged in federal court in Chicago with swindling investors out of more than $950,000.

GEOFFREY THOMPSON, 53, of Naples, Fla., and formerly of Frankfort, Ill., is charged with one count of wire fraud.  Arraignment is set for Dec. 9, 2021, at 11:30 a.m., before U.S. District Judge John F. Kness.

The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorney Matthew Getter.

Thompson owned and operated a Canadian-based cannabis company that did business in Colorado.  According to a criminal information filed Thursday in U.S. District Court in Chicago, Thompson in 2018 and 2019 solicited and obtained money from investors by falsely representing that their funds would be used for expanding the company’s business and holding an initial public offering of securities. 

In reality, the information alleges that Thompson knowingly misrepresented the company’s financial condition and that he knew the company was not in a position for an IPO at that time.  Thompson instead misappropriated investor funds for his and his family’s personal use and to make Ponzi-type payments to lull earlier investors, the information alleges.

As a result of the scheme, Thompson caused the victim investors to suffer at least $952,000 in losses, the charge alleges.

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