Northern District of Illinois

CHICAGO — A suburban Chicago woman has been arrested after she allegedly arranged for a child to engage in commercial sex acts with customers at hotels.

JAMARI HODGE, also known as “Hypnotic” and “Miracle,” 26, of Calumet City, Ill., is charged with one count of producing child pornography.  Hodge was arrested Wednesday.  A detention hearing is scheduled for Dec. 6, 2021, at 12:30 p.m., before U.S. District Judge Beth W. Jantz.

The charge and arrest 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.  Valuable assistance was provided by the Lansing, Ill., Police Department, Calumet City, Ill., Police Department, and Richton Park, Ill., Police Department.  The government is represented by Assistant U.S. Attorney Shy Jackson.

According to a criminal complaint filed in U.S. District Court in Chicago, Hodge took sexually explicit photographs of the victim and posted them in online advertisements offering commercial sex, the complaint states.  Hodge then rented hotel rooms in Illinois that were used for encounters with individuals who responded to the advertisements, the complaint states.  Hodge allegedly set the prices and had the customers pay her in cash or electronic transfer after the encounters.

Production of child pornography is punishable by a statutory minimum sentence of 15 years in federal prison and a maximum sentence of 30 years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines. 

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. 

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

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

The Department of Justice this summer announced the formation of five cross-jurisdictional strike forces, one of which is based in Chicago and led by the U.S. Attorney Lausch, to help reduce gun violence by disrupting illegal firearms trafficking.   As part of the Chicago strike force, the U.S. Attorney’s Office collaborates with the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.  The Chicago strike force’s efforts have been substantially enhanced by the Chicago Police Department’s (CPD’s) recently created Gun Investigations Team.

“Straw purchasers and firearms traffickers enable violence,” said U.S. Attorney Lausch.  “The cross-jurisdictional strike force has increased collaboration with our federal, state, and local law enforcement partners, and enhanced our longstanding efforts to hold accountable individuals or groups who illegally traffic firearms into Chicago.”

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

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

Enforcement Actions and Prosecution Activity

The U.S. Attorney’s Office works closely with U.S. law enforcement agencies, including ATF, Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), Postal Inspection Service (USPIS), Internal Revenue Service Criminal Investigation Division (IRS-CI), and U.S. Marshals Service (USMS), to investigate and prosecute a variety of violent crimes.  State and local partners in this effort include CPD, Illinois State Police (ISP), Illinois Department of Corrections (IDOC), Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, Rockford Police Department, and other police departments throughout northern Illinois.

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

The U.S. Attorney’s Office’s Gun Crimes Prosecution Team continues to emphasize the prosecution of illegal firearm possession in the most violent police districts in Chicago.  Working collaboratively with federal and local law enforcement, the team focuses on charging Chicago’s most dangerous criminals quickly after arrest, endeavoring to disrupt the cycle of violence in the neighborhoods most in need.

“Our Gun Crimes Prosecution Team works tirelessly to investigate and prosecute firearms cases from the Chicago neighborhoods suffering from the most violent crimes,” said U.S. Attorney Lausch.  “Our partnerships with CPD and other state and local law enforcement continue to be very strong.”

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

Racketeering and Gang-Related Prosecutions

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

• A federal jury this month convicted LABAR SPANN, a leader of the Four Corner Hustlers street gang, on a racketeering conspiracy charge for participating in a criminal organization that committed murders and other acts of violence on the West and Southwest Sides of Chicago.  The jury found that Spann participated in four murders in a cold, calculated, and premeditated manner as part of the conspiracy.  Spann faces a mandatory term of life in prison when he is sentenced next year.  After Spann’s conviction, all nine defendants charged in the case have been convicted of racketeering conspiracy.  The investigation was conducted by FBI, ATF, CPD, DEA, IDOC, ISP, Illinois Secretary of State Police Department, Cook County Sheriff’s Office, and Cook County State’s Attorney’s Office, with the support of the Organized Crime Drug Enforcement Task Force (OCDETF) and the Chicago High Intensity Drug Trafficking Area Task Force (HIDTA).
• A racketeering conspiracy indictment unsealed this month charged 13 alleged leaders, members, and associates of the Wicked Town faction of the Traveling Vice Lords street gang with engaging in numerous acts of violence in Chicago, including at least 19 murders and 19 attempted murders.  The probe was conducted by ATF, CPD, IRS-CI, DEA, FBI, Cook County Sheriff’s Office, and Cook County State’s Attorney’s Office, with the support of OCDETF and HIDTA.
• WILLIAM HAYSLETTE, of Chicago, was sentenced last month to 30 years in prison for engaging in racketeering offenses as a “soldier” in the Latin Kings street gang.  In addition to committing numerous assaults on behalf of the gang, the sentencing judge also found that Hayslette participated in the murder of Sergio Hernandez in the South Chicago neighborhood of Chicago.  Hayslette was indicted in 2018 along with more than 30 other alleged members of the Latin Kings.  Nearly all of the charged defendants have pleaded guilty or been convicted at trial, including GERONIA FORD, of Chicago, who was sentenced in September to 29 years in prison for participating in Hernandez’s murder and committing acts of witness intimidation.  FBI and CPD led the investigation, with assistance from the Cook County Sheriff’s Office and the Hammond, Ind., Police Department, and the support of OCDETF.
• Five alleged members of the O-Block street gang were charged last month with committing murder in aid of racketeering for allegedly killing Carlton Weekly, a Chicago rapper also known as “FBG Duck,” on Aug. 4, 2020, in downtown Chicago.  The case was investigated by FBI and CPD, with assistance from the Cook County State’s Attorney’s Office.

Firearm Trafficking and Firearm Theft Prosecutions

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

• Chicago resident ISMAEL SENE was sentenced last month to a year in federal prison for straw purchasing handguns in the Chicago suburbs.  In one of the gun transactions, Sene falsely certified on federal forms that he was the actual buyer.  In reality, Sene purchased the gun on behalf of an individual whom Sene had reason to believe was a convicted felon who was prohibited by federal law from purchasing or possessing a firearm.  ATF led the probe, with assistance from CPD.
• Four men were charged last month with firearm offenses for allegedly trafficking guns from St. Louis to Chicago.  The charges accuse ROBERT NARUP, of Washington, Mo., of buying firearms at gun shows throughout the United States and illegally selling them to JEROME BOYKIN, of St. Louis, Mo.  Boykin then allegedly brought the guns to Chicago and sold them to ROGELIO MANCERA, of Schaumburg, Ill., in exchange for marijuana.  Mancera allegedly re-sold the guns to RODOLFO ORTEGA, of Chicago, who in turn would sell them on the streets of Chicago.  ATF and CPD’s recently created Gun Investigations Team led the probe, with assistance from ATF officials in Missouri and the U.S. Attorney’s Office for the Eastern District of Missouri.
• A suburban Chicago man was sentenced last month to eight and a half years in federal prison for trafficking dozens of guns from Kentucky to Chicago.  Many of the guns trafficked by JOHN PHILLIPS, of Lyons, Ill., were later discovered by law enforcement at crime scenes in Chicago.  The investigation was led by ATF’s Chicago office, with assistance from ATF agents in Louisville, Ky., and the support of HIDTA.
• Six individuals were charged in September in the Southern District of Indiana with straw purchasing 90 firearms, more than 20 of which were later discovered at crime scenes in Chicago.  ATF led the investigation, with assistance from law enforcement in Chicago.
• The U.S. Attorney’s Office in August successfully moved to revoke the bond that had been set for JAMES MASSEY, of Chicago.  Massey is awaiting trial on a charge of inciting rioting involving incidents of property damage and looting in Chicago in the summer of 2020.  The judge found that Massey violated the terms of his bond when he allegedly attempted to purchase a firearm in Indiana.  Massey is now in federal custody.  Trial on the rioting charge is set for Feb. 22, 2022.  FBI and CPD investigated the looting case, while ATF investigated the firearm matter.
• PARIS STEELE, of Chicago, was sentenced in August to more than six years in federal prison for unlawfully dealing shotguns and other firearms in Chicago.  While Steele was on bond and awaiting trial, he appeared in videos on social media holding a firearm and threatening violence against others.  ATF and CPD conducted the investigation.
• A Chicago man was charged in August with making materially false statements in the acquisition of more than 20 firearms.  STOVALL BUCHANAN acquired the guns from suburban Chicago firearms dealers and allegedly lied on federal forms about his home address and the actual buyer of the guns.  ATF investigated, with assistance from CPD.
• Chicago resident JUSTIN GARCIA was charged in August with straw purchasing handguns in a suburban Chicago store on behalf of another individual.  ATF investigated, with assistance from CPD.
• Two days after the fatal shooting of Chicago Police Officer Ella French, a Hammond, Ind., man was charged with conspiring to straw purchase the semi-automatic handgun used in the shooting.  JAMEL DANZY purchased the gun at a firearms dealer in Hammond and allegedly falsely certified on the required forms that he was the actual buyer.  The charges allege that Danzy was a straw purchaser who bought the gun at the request of a convicted felon who was found in possession of the gun after the shootings of Officer French and her partner.  ATF and CPD led the probe.
• JOSUE CANALES, of Chicago, was charged in June with trafficking a loaded submachine gun and dealing cocaine in the city.  FBI and the CPD led the investigation.
• Three Chicago men were charged this summer with unlawfully dealing or possessing firearms in the city.  JOHNATHAN BURGOS allegedly illegally dealt firearms in Chicago, while ALEJANDRO DAVIS and DAMIAN REYES were charged with illegally possessing firearms as previously convicted felons.  FBI and the CPD conducted the investigation.
• RONEAL NIGHTENGALE, Glendale Heights, Ill., and ERIC ROWE, of Bellwood, Ill., were charged in June with conspiring to steal a dozen handguns from a suburban Chicago firearms dealer.  ATF and the Naperville Police Department led the probe, with assistance from the DuPage County Sheriff’s Office.

Carjacking and Other Violent Crime Prosecutions

“The U.S. Attorney’s Office works closely with federal, state, and local law enforcement officers to prosecute violent crimes, such as carjacking, that violate federal law,” said U.S. Attorney Lausch.

• A Chicago man was indicted last month on charges he carjacked a rideshare vehicle and fatally shot the driver.  EDMOND HARRIS was also charged with an additional carjacking and attempted carjacking in connection with other incidents.  JOSHUA WALKER, of Chicago, was charged with participating with Harris in one of the carjackings.  The case was investigated by ATF, CPD, and the Oak Park Police Department.
• A Chicago man who carjacked a vehicle at gunpoint in the city’s Uptown neighborhood was sentenced in September to more than 12 years in prison on carjacking and firearm offenses.  During the carjacking, MICHAEL C. PEARSON fired a pistol in the direction of a passenger of the vehicle.  FBI and CPD investigated, with assistance from the Cook County State’s Attorney’s Office.
• A jury in September convicted JAMAR JARVIS, of Chicago, on carjacking and weapons offenses for carjacking a vehicle at gunpoint in the city’s Edgewater neighborhood.  Jarvis is set to be sentenced next month.  The probe was led by the FBI and CPD, with assistance from the Cook County State’s Attorney’s Office.
• KIAR EVANS, of Chicago, was arrested and charged this summer with firing a handgun while attempting to carjack a vehicle on the city’s West Side, and moments later carjacking another vehicle at gunpoint.  FBI and CPD investigated.
• A Chicago man was charged in July with forcibly assaulting two ATF agents and an ATF Task Force officer.  EUGENE MCLAURIN allegedly shot the officers as they were driving in an unmarked law enforcement vehicle while participating in a federal investigation on the South Side of Chicago.  ATF and CPD led the investigation into the shooting, with assistance from the Illinois State Police.

Illegal Possession of Firearms Prosecutions

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

• A federal jury this month convicted BRIAN STAFFORD, a felon from the Chicago suburb of Bellwood, on firearm and drug charges for illegally possessing two loaded handguns and dealing heroin and crack cocaine.  A separate jury in 2019 convicted Stafford of illegally possessing three assault rifles.  All of the handguns and rifles illegally possessed by Stafford were linked to thefts from a cargo train that passed through Chicago in September 2016.  Stafford is awaiting sentencing.  The case was investigated by FBI, with assistance from ATF, Cook County Sheriff’s Office, Evergreen Park, Ill., Police Department, and Bolingbrook, Ill., Police Department.
• DONTA BAKER, of Chicago, was sentenced this month to six years in federal prison for illegally possessing a loaded handgun on a street in the city’s West Englewood neighborhood.  Baker had previously been convicted of multiple firearm-related felonies in state court and was prohibited by federal law from possessing a firearm.  ATF and CPD conducted the investigation.
• TERRY LEE, of Chicago, was sentenced in August to six years in federal prison for illegally possessing a stolen semi-automatic handgun in Douglas Park on the city’s West Side.  ATF and CPD conducted the probe.
• Convicted felon EDDIE JONES, of Chicago, was sentenced in August to eight years in prison for illegally possessing a loaded handgun in the city’s Humboldt Park neighborhood.  The investigation revealed that three victims were wounded by gunfire moments before Chicago Police officers encountered and arrested Jones.  In imposing the sentence, the judge found that Jones used the gun in the attempted murders of the three wounded victims.  ATF and CPD investigated.
• In August, NICHOLAS WILLIAMS, of Chicago, was sentenced to five and a half years in prison for illegally possessing a loaded handgun on a sidewalk on the city’s Near North Side.  The firearm was equipped with an extended magazine and loaded with 22 rounds of ammunition.  Williams had previously been convicted of a firearm-related felony in state court.  FBI and CPD investigated the case, with assistance from the Cook County State’s Attorney’s Office.
• A federal jury in August convicted DARIUS MORALES of illegally possessing a semi-automatic handgun in north suburban Evanston after Morales tried to flee from police in a car and on foot.  He faces up to ten years in prison when he is sentenced later this month.  DEA led the investigation, with assistance from ATF, the Evanston Police Department, and the Cook County State’s Attorney’s Office.
• A convicted felon who illegally possessed a loaded handgun during looting in downtown Chicago in the summer of 2020 was sentenced in July to 18 months in prison.  During the investigation, law enforcement uncovered multiple social media postings by JAVONTE T. WILLIAMS, of Chicago, in which he boasted about looting stores in the city.  ATF and CPD led the probe, with assistance from the Cook County State’s Attorney’s Office.

Significant Drug Trafficking Prosecutions

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

Public safety is also being threatened by unprecedented levels of opioid misuse and overdose.  Opioids are a class of highly addictive drugs that includes heroin, fentanyl, and prescription painkillers such as oxycodone and hydrocodone.  U.S. Attorney Lausch in November 2019 created an Opioid Task Force for the purpose of combatting the growing number of unlawful distributions of controlled substances fueling the nation’s opioid crisis. 

This includes prosecuting the leaders of traditional drug trafficking organizations, as well as rogue healthcare providers, pharmacists, pharmacist technicians, and others who contribute to the misuse of opioids.  “We are actively attacking the opioid crisis from all investigative and prosecutorial angles,” said U.S. Attorney Lausch.

• The leader of a drug trafficking organization was sentenced this month to 20 years in federal prison for supplying heroin to an illegal open-air market on the West Side of Chicago.  LEVAUGHN COLLINS, of Chicago, obtained bulk quantities of heroin and provided it to numerous associates, who, at Collins’s direction, processed and packaged the drugs for street-level sales.  DEA and CPD led the probe, with support from HIDTA and assistance from IRS-CI and the Cook County State’s Attorney’s Office.
• Three individuals were arrested this month as part of a federal investigation that disrupted a suspected Mexico-to-Chicago drug pipeline and resulted in government seizures of a private plane and 100 kilograms of cocaine.  The cocaine had allegedly been transported to the Chicago area on the plane from Toluca, Mexico, via Houston, Texas.  DEA, HSI and IRS-CI are leading the probe, with assistance from CPD, U.S. Customs and Border Protection, and the U.S. Attorney's Office for the Southern District of Indiana.
• A joint federal and local investigation in the far north suburbs of Chicago resulted in drug or firearm charges in August against four individuals.  The alleged trafficking of cocaine and methamphetamines occurred in Waukegan and Beach Park.  ATF and the Lake County Sheriff’s Office investigated the case.
• A woman vacationing in Chicago from Mexico was arrested here in July for allegedly selling two kilograms of cocaine to a buyer who, unbeknownst to the woman, was cooperating with law enforcement.  According to the charges against MARINA RIVERA, law enforcement after the sale searched a home in the city’s Little Village neighborhood and discovered approximately eight kilograms of cocaine inside a suitcase in the bedroom where Rivera was staying.  DEA investigated.
• A federal indictment unsealed in June charged five defendants with conspiring to launder illicit drug proceeds in Chicago for more than a decade.  The defendants allegedly laundered drug trafficking proceeds generated by the husbands of two of the defendants after the husbands were incarcerated on separate federal charges in 2008.  The probe was led by DEA, IRS-CI and USPIS.

Community Partnerships

The PSN program continues to invest resources in violence-prevention initiatives.  Members of the U.S. Attorney’s Office have participated in offender notification meetings and youth outreach forums.  Even during the current COVID-19 pandemic, these meetings and forums are still being held, including in a virtual environment, to maintain the outreach to former offenders.

Offender notification meetings provide an opportunity for individuals who have been convicted of a state or federal offense to make an informed choice not to engage in further criminal activity.  Researchers at Arizona State University found that the forums in Chicago have a positive influence on the offenders’ perception of police and help create an understanding that criminal activity results in a higher risk to return to prison.  Researchers at Yale University found that ex-offenders who attend an offender notification meeting in Chicago are 30% less likely to commit a new offense than those who did not attend a meeting.

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

CHICAGO — A suburban Chicago tax preparer has been sentenced to two years in federal prison for orchestrating a variety of schemes that defrauded the IRS, U.S. Department of Education, and U.S. Social Security Administration.

LISA LLOYD TAYLOR, owner of Ebiz Accounting Services in Country Club Hills, Ill., willfully filed false personal or corporate tax returns from 2010 to 2013 that substantially underreported her own income or the income earned by her business.  From 2011 to 2015 Taylor also willfully prepared thousands of tax returns for her clients that claimed false deductions for purported charitable contributions and child-care expenses.  Taylor’s tax schemes resulted in a total federal and state tax loss of more than $1.02 million.

In addition to the tax offenses, Taylor underreported her income to fraudulently obtain more than $53,000 in financial aid benefits for her children.  Taylor’s children otherwise would not have qualified for the Department of Education grants.

Taylor also defrauded the Social Security Administration by applying for and collecting more than $134,000 in disability benefits to which she was not entitled.  From 2011 to 2017, Taylor concealed from the SSA the extent to which she was working and the amount of income she received from Ebiz.

Taylor, 57, of Country Club Hills, pleaded guilty to federal tax and theft charges.  U.S. District Judge Andrea R. Wood imposed the sentence Friday 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 Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  Substantial assistance was provided by the Social Security Administration's Office of the Inspector General, and the U.S. Department of Education’s Office of Inspector General.  The government is represented by Assistant U.S. Attorney Nicholas J. Eichenseer.

CHICAGO — A Joliet financial advisor has been indicted on federal fraud charges for allegedly swindling several clients out of nearly $800,000.

RONALD T. MOLO, 61, of Shorewood, Ill., is charged in an indictment unsealed today in U.S. District Court in Chicago with six counts of wire fraud.  Arraignment has 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.  Valuable assistance was provided by the Joliet Police Department, Illinois Securities Department, and the U.S. Securities and Exchange Commission.  The government is represented by Assistant U.S. Attorney Brian Havey.

According to the indictment, Molo worked as a licensed financial advisor in the Joliet branch of a national financial services firm.  From 2018 to earlier this year, Molo falsely represented to clients that their investments with him would be income-producing and tax-free, and that they would receive regular, periodic interest payments, the charges allege.  In reality, Molo did not intend to invest client funds and instead misappropriated their money to pay for personal expenses, including Cadillac XT5 and GMC Yukon sport-utility vehicles, mortgage payments for himself and family members, home remodeling and construction costs, lottery tickets, travel and shopping expenses, and cash payments to family members, the indictment states.

As a result of the scheme, Molo caused at least three clients to suffer losses totaling $778,000, the indictment states.

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

CHICAGO — A federal judge in Chicago has sentenced a man to a year in prison for manufacturing and selling a purported weight-loss product containing the unapproved additive 2,4-Dinitrophenol, known as DNP.

JONATHAN E. MCGRAW, 33, of Newberg, Oregon, obtained DNP from sources in China and used it as the primary ingredient in capsules that he manufactured in a makeshift lab in his garage and marketed online as a weight-loss product.  McGraw sold the capsules to customers throughout the United States via his website – ScorpionDNP.com – and through postings on other sites, including reddit.com.  In an effort to deceive regulatory and law enforcement agencies, McGraw falsely labeled his product as pesticide. 

DNP is an organic compound that has not been approved by the U.S. Food and Drug Administration or any other regulatory agency for human consumption in the U.S.  McGraw acknowledged in a plea agreement that he knew that the use of DNP by his customers created a risk of death or serious bodily injury.

McGraw pleaded guilty earlier this year to a federal charge of introducing a new drug into interstate commerce without approval.  U.S. District Judge John Z. Lee on Friday sentenced McGraw 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 Lynda M. Burdelik, Special Agent-in-Charge of the Chicago Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations.

“Defendant engaged in a course of conduct over a prolonged period of time that exposed hundreds of individuals to a significant risk of harm or death,” Assistant U.S. Attorney Rick D. Young argued in the government’s sentencing memorandum.  “Defendant was willing to subject hundreds of people to a risk of death in order to make money for himself.”

CHICAGO — A Chicago businessman who claimed to earn substantial profits from buying and selling heavy industrial equipment has been indicted on federal fraud charges for allegedly swindling customers and investors out of at least $350,000.

BRIAN BLALOCK, 37, of Chicago, is charged in an indictment returned Thursday in U.S. District Court in Chicago with nine counts of wire fraud.  Arraignment has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.  Valuable assistance was provided by the Illinois Securities Department.  The government is represented by Assistant U.S. Attorneys Jacqueline Stern, Brian Havey, and Matthew Getter.

According to the indictment, Blalock operated three Chicago-based businesses – PWC Holdings LLC, Brian Blalock LLC, and Parkwood Companies LLC – through which he purported to buy and sell trucks, trailers, road construction machines, oil field equipment, and generators.  Blalock solicited and obtained money from individual victims by falsely representing that he could either directly sell equipment to them or use their funds to purchase and sell equipment to others and then share in the substantial profits, the charges allege.

In reality, Blalock did not intend to deliver any equipment to the victim buyers, nor did he intend to use their investment funds to purchase and sell equipment, the indictment states.  Blalock instead used a substantial portion of the victims’ funds for his own personal benefit, including his rent payments, utility bills, meals at restaurants, and retail purchases, the charges allege. 

As a result of the scheme, Blalock from 2018 to 2021 caused the victims to suffer at least $350,000 in losses, the indictment states.

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

ROCKFORD — A Loves Park woman was charged with fraudulently obtaining more than $1 million from her employer, according to a criminal information filed today by the U.S. Attorney’s Office in Rockford. 

The information charges TAMMY E. MOORE, 54, with one count of wire fraud.  Moore will be arraigned in U.S. District Court in Rockford on a date to be determined.

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 Loves Park Police Department assisted in the investigation.  The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.

According to the information, Moore was an office manager for a company in Loves Park that made custom components for a variety of industries.  Between 2012 and 2020, Moore fraudulently obtained more than $1 million from the company.  Specifically, 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.       

Wire fraud carries a maximum sentence of up to 20 years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.  

The public is reminded that 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 federal jury has convicted a suburban Chicago man on firearm and drug charges for illegally possessing two loaded handguns and dealing heroin and crack cocaine.

BRIAN STAFFORD, 42, illegally possessed the guns and drugs in his vehicle and residence in Bellwood, Ill., on Nov. 2, 2016.  A day earlier, Stafford sold 101 grams of heroin to an individual who, unbeknownst to Stafford, was cooperating with law enforcement.

After a week-long trial in U.S. District Court in Chicago, the jury on Friday found Stafford guilty of one count of possessing heroin and crack cocaine with the intent to distribute, one count of illegal possession of firearms by a previously convicted felon, and one count of possessing firearms in furtherance of drug-trafficking activities.

A separate jury in 2019 convicted Stafford of illegally possessing three assault rifles.  All of the handguns and rifles illegally possessed by Stafford were linked to thefts from a cargo train that passed through Chicago in September 2016.

The convictions are punishable by a mandatory minimum sentence of ten years in federal prison, and a maximum of life.  U.S. District Judge Robert W. Gettleman did not immediately set a sentencing date.

The convictions 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 assistance was provided by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; Cook County Sheriff’s Office; Evergreen Park, Ill., Police Department; and Bolingbrook, Ill., Police Department.  The government is represented by Assistant U.S. Attorneys Saurish Appleby-Bhattacharjee and Alejandro Ortega.

CHICAGO — The former mayor of Crestwood, Ill., pleaded guilty today to a federal corruption charge and admitted improperly soliciting and receiving benefits from an individual with a financial interest in a red-light camera company that provided services to the southwest suburb.

LOUIS PRESTA, 71, of Crestwood, pleaded guilty to one count of using a facility in interstate commerce in aid of bribery and official misconduct, and one count of filing a false income tax return.  The bribery count is punishable by up to five years in federal prison, while the tax offense carries a maximum sentence of three years.   U.S. District Judge Thomas M. Durkin set sentencing for Feb. 23, 2022.

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 Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorneys Christopher J. Stetler and James P. Durkin.

According to Presta’s plea agreement with the government, the red-light camera company provided camera services to Crestwood that enabled the municipality to issue tickets to motorists for certain traffic violations.  While the company was attempting to provide additional such services to Crestwood, then-Mayor Presta asked for and accepted benefits from the individual with a financial interest in the company.  Presta told the individual that Presta would ensure that the percentage of red-light traffic violations that Presta approved would remain high or increase – in exchange for a cash payment to Presta from the individual, the plea agreement states. 

The plea agreement describes a Feb. 27, 2018, telephone call in which Presta updated the individual on the higher percentage of red-light traffic violations that Crestwood approved the previous week.  During the call, Presta stated, “We’re starting to get the numbers again… you got a new sheriff in town.”  Shortly after that call, Presta on March 7, 2018, received a $5,000 cash bribe from the individual.  When subsequently questioned by federal law enforcement about his receipt of the $5,000 bribe payment, Presta falsely stated that he neither asked for nor received the $5,000 bribe.

In addition to the bribery scheme, Presta admitted in the plea agreement that he willfully filed a false personal income tax return for the calendar year 2015.

CHICAGO — Two employees of the U.S. Department of Veterans Affairs pocketed cash from vendors in exchange for steering them orders for medical equipment, according to indictments returned in federal court in Chicago. 

ANDREW LEE and KIMBERLY A. DYSON worked as Prosthetic Clerks in the Veterans Health Administration Prosthetics Service in Chicago.  As part of their duties, Lee and Dyson selected vendors from which to order medical equipment for VA patients, and then paid the vendors using government purchase cards.  In exchange for their efforts with certain vendors, Lee and Dyson allegedly received cash payments from individuals at the vendor companies.

Lee, 66, of Chicago, is charged with one count of wire fraud.  Dyson, 49, of Chicago, is charged with one count of conspiracy to commit bribery and four counts of bribery. 

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Gavin McClaren, Acting Special Agent-in-Charge of the Department of Veterans Affairs Office of Inspector General’s Central Field Office.  The government is represented by Assistant U.S. Attorney Heidi Manschreck.

“Schemes to fraudulently corrupt the procurement process cheat the government and deserving bidders,” said U.S. Attorney Lausch.  “We will work aggressively with our law enforcement partners to safeguard our nation’s taxpayers.”

“The corruption of VA employees cannot be tolerated,” said Acting SAC McClaren.  “These alleged fraudulent activities erode public trust and undermine the value of fair market competition.  The VA OIG appreciates the US Attorney’s Office for its commitment in helping hold these defendants accountable.”

Lee and Dyson were charged in separate indictments returned Tuesday in U.S. District Court in Chicago.

United States v. Lee, et al, 21 CR 703

The charges allege that Lee schemed with DARREN A. SMITH, who operated a medical distribution company in Bolingbrook, Ill., to place orders for medical equipment from Smith’s company in exchange for cash kickbacks to Lee.  Lee allegedly placed orders with Smith’s company for unnecessary and more costly monthly rentals of certain medical equipment – instead of purchasing the equipment as VA physicians had ordered – so that the VA would pay more money to Smith’s company.  The scheme fraudulently caused the VA to overpay Smith’s company by more than $1.38 million from 2016 to 2020.  In exchange, Lee pocketed kickbacks from Smith of at least $220,000, the indictment states.

In addition to the wire fraud count against Lee, the indictment charges Smith, 57, of Hazel Crest, Ill., with seven counts of wire fraud.

United States v. Dyson, et al, 21 CR 705

The charges accuse Dyson of conspiring with IRVIN R. LUCAS, IV, who owned a medical supply company in Romeoville, Ill., to place orders for medical equipment from Lucas’s company in exchange for cash payments to Dyson.  The indictment describes several instances in which Dyson placed orders with Lucas’s company and then sent text messages to Lucas asking for certain amounts of cash.  Lucas allegedly paid Dyson by transferring money into her checking account or providing her with a debit card to withdraw the funds.  From 2018 to 2020, Dyson accepted at least $39,850 from Lucas for steering the orders to his company, the indictment states.

In addition to the conspiracy and bribery counts against Dyson, the indictment charges Lucas, 40, of North Hollywood, Calif., with one count of bribery conspiracy.

Arraignments in federal court in Chicago have not yet been scheduled.

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

CHICAGO — The owners of several Chicago-area convenience stores have been charged in federal court with scheming to defraud a low-income food program for women and children.

A 16-count indictment returned in U.S. District Court in Chicago alleges that from 2010 to 2019 the store owners and several workers schemed to fraudulently redeem checks from the Women, Infants, and Children (“WIC”) program, a federally funded initiative designed to provide a nutritious diet to moderate and low-income infants, children up to five years of age, and pregnant, breastfeeding, and post-partum women.  The charges allege that the defendants knowingly allowed customers to provide their WIC checks as payment for ineligible items at the stores, often at inflated prices.  Most of the nine stores identified in the indictment redeemed millions of dollars in WIC checks.

Charged with fraud are HASSAN ABDELLATIF, also known as “Eric,” 33, of Chicago, owner of El Milagro Mini Market and Harding Grocery in Chicago; HAMDAN HAMDAN, also known as “Tony,” 32, of Chicago, owner of La Villita Food Market in Chicago; EHAB KHRAIWISH, 27, of Tinley Park, Ill., owner of Mercado La Estrella in Elgin, Ill.; WALEED KHRAWISH, also known as “Wally,” 34, of Melrose Park, Ill., who worked at a convenience store in Melrose Park; ALAA HAMDAN, 35, of Chicago, who worked at Supermercado El Grande in Addison, Ill.; ERSELY ARITA-MEJIA, 39, of Arlington Heights, Ill., who worked at Star Mini Market in Mt. Prospect, Ill.; FORTINO HERNANDEZ, 38, of Addison, Ill., who worked at Supermercado El Grande in Addison; JEHAD KHRAWISH, 24, of Chicago, who worked at a convenience store in Melrose Park, Ill.; and MARISOL ZAVALA, 29, of McHenry, Ill., who worked at a convenience store in Elgin, Ill.

The indictment also charges Abdellatif with two tax offenses for allegedly willfully failing to file two years of corporate tax returns for Harding Grocery.

Most of the defendants made their initial appearances Wednesday in federal court in Chicago.

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; Anthony Mohatt, Special Agent-in-Charge of the Midwest Regional Office of the U.S. Department of Agriculture, Office of Inspector General; and Justin Campbell, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorney Sheri L. Wong.

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 federal jury has convicted a leader of the Four Corner Hustlers street gang of participating in a criminal organization that committed murders and other acts of violence while brutally protecting a drug-dealing operation on the West and Southwest Sides of Chicago.

LABAR SPANN, 43, of Chicago, was found guilty Monday on all four counts against him, including racketeering conspiracy, two counts of murder in aid of racketeering, and extortion.  The jury found that Spann committed four murders in a cold, calculated, and premeditated manner as part of the racketeering conspiracy, including the murders of Maximillion McDaniel on July 25, 2000, George King on April 8, 2003, Willie Woods on April 17, 2003, and Rudy Rangel on June 4, 2003.

The conviction is punishable by a mandatory minimum sentence of life in prison.  U.S. District Judge Thomas M. Durkin set sentencing for March 9, 2022.

The verdict 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; 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.  Substantial assistance was provided by the U.S. Drug Enforcement Administration, Illinois Secretary of State Police Department, Illinois Department of Corrections, Illinois State Police, Cook County Sheriff’s Office, and Cook County State’s Attorney’s Office.  The government is represented by Assistant U.S. Attorneys William Dunne, Timothy J. Storino, Kavitha J. Babu, and Megan DeMarco.

Authorities uncovered the racketeering activities of the Four Corner Hustlers through a lengthy investigation supported by the Organized Crime Drug Enforcement Task Force (OCDETF).  OCDETF identifies, disrupts, and dismantles criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies.   The Chicago FBI’s Safe Street Task Force, the High Intensity Drug Trafficking Area Task Force (HIDTA), and ATF’s Chicago Crime Gun Strike Force also supported the investigation.

The Four Corner Hustlers operated primarily in the Chicago neighborhoods of West Garfield Park and Humboldt Park on the West Side, and in the former LeClaire Courts public housing development on the Southwest Side.  According to evidence presented at the nearly eight-week trial in federal court in Chicago, the gang dealt drugs and robbed rival dealers, while using violence and intimidation to prevent victims and witnesses from cooperating with law enforcement.  The gang engaged in numerous acts of violence, including multiple murders and armed robberies. 

Spann was indicted in 2017 along with eight other members of the Four Corner Hustlers and two additional defendants.  The other defendants pleaded guilty, and several have been sentenced to federal prison terms.

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

DONTA BAKER illegally possessed the gun on the evening of July 24, 2020, in the 2100 block of West 68th Street in Chicago’s West Englewood neighborhood.  Chicago Police officers observed Baker standing on a sidewalk tugging at an object in his waistband and approached him to conduct an investigatory stop.  Baker ran from the officers and tossed the gun over a fence into a residential backyard.  The officers apprehended him a short time later.

Baker, 38, of Chicago, pleaded guilty in June to a federal charge of illegal possession of a firearm.  Baker had previously been convicted of multiple firearm-related felonies in state court and was prohibited by federal law from possessing the gun.  After pleading guilty and awaiting sentencing in the federal case, Baker violated the terms of his bond conditions when he removed his ankle monitor.  He was quickly re-arrested and the bond was revoked.

U.S. District Judge Steven C. Seeger imposed the federal prison sentence Nov. 2, 2021, 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.

“Defendant’s crime is not one of simple possession,” Assistant U.S. Attorney Saurish Appleby-Bhattacharjee argued in the government’s sentencing memorandum.  “Particularly within this federal district – encompassing a city besieged by routine shootings and homicides – there is no simple possession of a loaded pistol by a convicted felon.”

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 — Three individuals have been arrested on federal charges as part of an investigation that disrupted a suspected Mexico-to-Chicago drug pipeline and resulted in government seizures of a private plane and 100 kilograms of cocaine.

Federal agents on Wednesday discovered 80 kilograms of cocaine in a vehicle in Chicago’s River North neighborhood and another 20 kilograms of the drug in a hotel room in the city’s Gold Coast neighborhood, according to criminal complaints filed in U.S. District Court in Chicago.  The cocaine had allegedly been transported to the Chicago area earlier Wednesday via private plane from Toluca, Mexico, via Houston, Texas.  The plane arrived at Gary/Chicago International Airport in Gary, Ind., and the drugs were driven in suitcases to downtown Chicago, the charges allege.

Two of the defendants – SEBASTIAN VAZQUEZ-GAMEZ, 30, of Toluca de Lerdo, Mexico, and RODRIGO ALEXIS JIMENEZ-PEREZ, 25, of Columbus, Ind. – were arrested Wednesday in downtown Chicago, while the third defendant – SERGIO IVAN BLAS, 39, of Indianapolis, Ind. – was arrested Thursday in the Indianapolis area.  Federal agents today obtained a warrant to seize the private plane, a Bombardier Challenger 600.

A detention hearing for Jimenez-Perez is scheduled for Nov. 9, 2021, at 1:00 p.m. before U.S. Magistrate Judge Gabriel A. Fuentes in Chicago.  Vazquez-Gamez is set to appear for a detention hearing before Judge Fuentes on Nov. 10, 2021, at 3:00 p.m.  Blas is scheduled to make his initial court appearance on Nov. 9, 2021, in U.S. District Court in the Southern District of Indiana.

The charges and arrests 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; Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations; and Justin Campbell, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  Substantial assistance was provided by U.S. Customs and Border Protection, the U.S. Attorney's Office for the Southern District of Indiana, and the Chicago Police Department.  Assistant U.S. Attorneys Ashley Chung and Andrew Erskine represent the government.

According to the charges, Vazquez-Gamez arrived on the plane from Houston and loaded suitcases full of cocaine into a Lincoln Navigator sport-utility vehicle.  Vazquez-Gamez and others from the plane entered the Lincoln and were driven to the hotel in Chicago, the complaints state.  Outside the hotel, Vazquez-Gamez loaded some of the suitcases into a Toyota Highlander sport-utility vehicle driven by Jimenez-Perez, the charges allege.  Agents pulled over the Toyota a few blocks away, seized the suitcases containing 80 kilograms of cocaine, and arrested Jimenez-Perez.  Agents later arrested Vazquez-Gamez in his hotel room, where they seized the other 20 kilograms of cocaine, the charges allege.

The complaint against Blas accuses him of directing Jimenez-Perez on where to meet Vazquez-Gamez to pick up the cocaine.

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

CHICAGO — Two businessmen have been charged in federal court with running a fencing operation out of their suburban Chicago stores.

ZIAD I. ZAYED, also known as “Zee,” 46, and MOSAS I. ZAYED, 33, both of Frankfort, Ill., are charged with conspiracy to receive and dispose of stolen property across state lines.  The Zayeds, who are brothers, were arrested Tuesday.  They are scheduled to appear for detention hearings today at 2:30 p.m. before U.S. Magistrate Judge Gabriel A. Fuentes.

According to a criminal complaint filed in U.S. District Court in Chicago, the Zayeds used their store – Crestwood Electronics Inc. in Crestwood, Ill. – and other businesses to knowingly purchase stolen electronic devices and other merchandise, re-package the items, and then ship them to re-sellers out of state and overseas.  Some of the items fenced by the Zayeds included laptop computers, fitness tracking devices, and digital cameras that were stolen last year from railcars near Chicago, the charges allege.

The complaint and arrests 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.  The government is represented by Assistant U.S. Attorneys Ann Marie E. Ursini, Melody Wells, and Barry Jonas.

The public is reminded that a complaint 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 — The leader of a drug trafficking organization has been sentenced to 20 years in federal prison for supplying heroin to an illegal open-air market on the West Side of Chicago.

LEVAUGHN COLLINS obtained bulk quantities of heroin and provided it to numerous associates, who, at Collins’s direction, processed and packaged the drugs for street-level sales.  Many of the sales occurred at an illegal open-air market in the 3700 block of West Grenshaw Street in Chicago’s North Lawndale neighborhood.

Collins obtained significant profits from the sale of multiple kilograms of heroin.  During the investigation, law enforcement conducted a court-authorized search of his residence and discovered a Maserati automobile, $50,000 in cash, and more than $400,000 worth of jewelry.  A search of another location which Collins utilized to stash the heroin revealed ten firearms, many of which were loaded and equipped with extended magazines. 

Collins, 41, of Chicago, pleaded guilty in 2019 to federal drug and firearm charges.  U.S. District Judge Gary Feinerman imposed the prison sentence Tuesday after a hearing in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert J. Bell, Special Agent-in-Charge of the Chicago Division of the U.S. Drug Enforcement Administration; and David Brown, Superintendent of the Chicago Police Department.  The multi-agency investigation was supported by the High Intensity Drug Trafficking Area Task Force (HIDTA) Initiative.  Substantial assistance was provided by the Cook County State’s Attorney’s Office and IRS Criminal Investigation Division in Chicago.

“The defendant financed his lifestyle by taking advantage of those addicted to heroin,” Assistant U.S. Attorneys Scott M. Edenfield and Jared C. Jodrey argued in the government’s sentencing memorandum.  “Drug trafficking, at any level, is a serious offense that has well-documented deleterious effects not only on traffickers and users, but on the community at large.”

CHICAGO — A federal jury today convicted a Chicago man on sex trafficking charges for recruiting several children to engage in sex acts for money.

The jury in U.S. District Court in Chicago convicted LENNIE PERRY, 47, on all seven counts of sex trafficking.  The conviction carries a mandatory minimum sentence of 15 years in federal prison, and a maximum of life.  U.S. District Judge Harry D. Leinenweber did not immediately set a sentencing date.  A status hearing was scheduled for Jan. 12, 2022, at 9:30 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 case was investigated by the FBI Chicago Child Exploitation Task Force.  Valuable assistance was provided by the Chicago Police Department and U.S. Homeland Security Investigations.  The government is represented by Assistant U.S. Attorneys Charles Mulaney and Kelly Guzman.

According to evidence presented at the week-long trial, Perry trafficked seven minors under the age of 18.  One of his victims was under 14 years old when Perry caused her to engage in a commercial sex act.  Perry used websites such as Backpage and Facebook to advertise commercial sex acts and recruit the young victims to work for him.  Perry also required that each of his victims have sex with him before he would traffic them to others. 

Perry arranged for the victims to meet individuals for the commercial sex acts in hotels and the individuals’ homes in Illinois, Minnesota, and Mississippi.  Six of Perry’s victims testified at trial about their ordeals.

If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by calling 1-800-843-5678 or logging on to www.cybertipline.com.

An Illinois woman was arrested today when she arrived at O’Hare International Airport in Chicago, for allegedly murdering her mother on Aug. 12, 2014, while on vacation in Bali, Indonesia.

Heather Mack, 26, is alleged to have conspired with her boyfriend, Tommy Schaefer, 28, to kill her mother, Sheila Von Weise, while Mack and Von Weise were on vacation in Bali. According to court documents, Mack and Schaefer discussed how and when to kill Von Weise, arranged for Schaefer to travel to Bali, committed the murder, and then placed Von Weise’s body inside a suitcase which they loaded into the trunk of a taxi.

Before the murder, Schaefer received advice from his cousin, Ryan Bibbs, about how to kill Von Weise. Bibbs pleaded guilty in the Northern District of Illinois in December 2016 to one count of conspiracy to commit foreign murder of a U.S. national. Court documents reveal that Mack also asked Bibbs if he knew anyone who would kill her mother in exchange for money.

Mack and Schaefer were prosecuted and convicted in Indonesia in 2015 for Von Weise’s murder. Mack was sentenced to 10 years’ and Schaefer was sentenced to 18 years’ imprisonment. Mack was released on Oct. 29, and deported to the United States. Schaefer remains incarcerated by Indonesian authorities.

Mack and Schaefer were indicted in the Northern District of Illinois with one count of conspiracy to kill in a foreign country, one count of conspiracy to commit foreign murder of a U.S. national, and one count of obstruction. Mack will make her initial court appearance today. If convicted, she faces a maximum statutory penalty of life imprisonment for counts one and two, and 20 years’ imprisonment for count three as well as a fine up to $250,000.

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois, and Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office made the announcement. The FBI is investigating the case.

Trial Attorney Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Terry Kinney for the Northern District of Illinois are prosecuting the case.

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 man has been sentenced to a year in federal prison for straw purchasing handguns in the Chicago suburbs.

On four occasions in 2019 and 2020, ISMAEL SENE purchased a total of seven handguns from licensed firearms dealers in the Chicago suburbs of Oak Lawn and Merrionette Park.  In one of the transactions, Sene falsely certified on federal forms that he was the actual buyer.  In reality, Sene purchased at least one of those guns on behalf of an individual whom Sene had reason to believe was a convicted felon who was prohibited by federal law from purchasing or possessing a firearm.  In addition, Sene in each transaction falsely told the firearms dealer that he was not an unlawful drug user, when, in fact, Sene regularly used marijuana, which was a violation of federal law.

Sene, 25, of Chicago, pleaded guilty in June to making false statements in connection with the acquisition of a firearm.  U.S. District Judge Robert W. Gettleman on Oct. 29, 2021, sentenced Sene 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 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.

“Straw purchasers, like the defendant, perpetuate the cycle of violence that is terrorizing this city,” Assistant U.S. Attorney James P. Durkin argued in the government’s sentencing memorandum.  “The tools that drive that mayhem are firearms in the hands of dangerous people who are often legally prohibited from purchasing and possessing them.”

CHICAGO — A Chicago woman was arrested today on federal charges for allegedly conspiring with her boyfriend to murder her mother at an Indonesian resort in 2014.

An indictment returned in 2017 and unsealed today in U.S. District Court in Chicago charges HEATHER L. MACK, 26, and TOMMY E. SCHAEFER, 28, of Chicago, with conspiracy to commit murder and obstruction of justice.  The indictment accuses Mack and Schaefer of conspiring in Chicago and Indonesia to carry out the murder of Mack’s mother, Sheila A. Von Wiese, a U.S. citizen from Illinois.  The charges allege that Mack and Schaefer killed Von Wiese in a hotel room at the St. Regis Bali resort on Aug. 12, 2014, and then placed the body in a suitcase and loaded it into the trunk of a taxicab.

An Indonesian court in 2015 convicted and imprisoned Mack and Schaefer on local charges related to Von Wiese’s murder.  Mack was released last week from an Indonesian prison.  She was arrested today by U.S. authorities upon her return to the United States.  Her arraignment in federal court in Chicago has not yet been scheduled.  Schaefer remains imprisoned in Indonesia.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kenneth A. Polite, Acting Assistant Attorney General of the Justice Department’s Criminal Division; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Indonesian law enforcement and immigration authorities provided valuable assistance.  The government is represented by Assistant U.S. Attorney Terry M. Kinney of the Northern District of Illinois, and Frank Rangoussis, Trial Attorney of the U.S. Department of Justice’s Human Rights and Special Prosecutions Section.

The U.S. investigation previously resulted in charges against Schaefer’s cousin, ROBERT RYAN JUSTIN BIBBS, also known as “Ryan Bibbs,” of Chicago.  Bibbs pleaded guilty in 2016 to a murder conspiracy charge, stating in a plea agreement that he was aware of the couple’s plot to carry out Von Wiese’s murder and that he counseled Schaefer on how to get away with it.  Bibbs was sentenced in 2017 to nine years in federal prison.

CHICAGO — A federal indictment unsealed today charges 13 alleged leaders, members, and associates of the Wicked Town faction of the Traveling Vice Lords street gang with participating in a criminal organization that murdered rivals and violently protected a drug-dealing operation on the West Side of Chicago.

The indictment alleges that the Wicked Town faction engaged in numerous acts of violence, including at least 19 murders, 19 attempted murders, several armed robberies, and assaults.  The gang used threats and intimidation to prevent victims and witnesses from cooperating with law enforcement, the charges allege.  Wicked Town members regularly promoted their violent enterprise on social media, posting comments, photos, and videos to proclaim membership in the gang, taunt rival gang members, and boast about murders and other acts of violence, the indictment states.  The gang operated primarily in Chicago’s Austin neighborhood, where members allegedly maintained “trap houses” to store firearms and illegal narcotics, including cocaine and heroin.

During the course of the multi-year probe, law enforcement seized 46 firearms, approximately 1,000 rounds of ammunition, approximately 17 kilograms of cocaine, approximately seven kilograms of heroin, and approximately 100 grams of crack cocaine.

All 13 defendants are in law enforcement custody.  Arraignments will be scheduled in U.S. District Court in Chicago.

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 Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department.  Substantial assistance in the investigation was provided by the Chicago office of the IRS Criminal Investigation Division, Chicago Field Division of the U.S. Drug Enforcement Administration, Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, Chicago Field Office of the FBI, the Chicago High Intensity Drug Trafficking Area program (HIDTA), and the Organized Crime Drug Enforcement Task Force (OCDETF).  The government is represented by Assistant U.S. Attorneys John D. Mitchell and Jimmy L. Arce.

“In bringing this racketeering indictment, we are seeking to hold accountable those who played a central role in significant gang violence on the West Side of Chicago,” said U.S. Attorney Lausch.  “These RICO charges are the result of many federal, state, and local law enforcement partners working together to fulfill a common mission – reducing gun violence and keeping the people of Chicago safe.”

“ATF remains committed to investigating those responsible for gun violence in Chicago,” said ATF SAC de Tineo.  “The resulting indictment underscores the importance of collaboration among law enforcement in keeping the community safe from gun violence.”

Charged with racketeering conspiracy are Chicago residents DONALD LEE, 39; DESHAWN MORGAN, 39; MARQUEL RUSSELL, 44; DARIUS MURPHY, 22; TORANCE BENSON, 29; DAVION RUSSELL, 21; DESHON GEORGE, 28; NASHON JOHNSON, 42; DANTE DOCKETT, 43; DEMOND BROWN, 28; VICTOR TURNER, 30; WILLIE GARDLEY, 27; and DAVID ARRINGTON, 26.

The 21-count superseding indictment alleges that members and associates of the Wicked Town faction carried out the murders as part of the gang’s criminal enterprise, and that certain individual members committed some of the killings to maintain and increase their position in the gang.  The murders charged in the indictment are as follows:

• Arrington allegedly murdered Ronald Boyd on Aug. 22, 2020, in Chicago.
• Turner allegedly murdered Sammy Hodges on March 10, 2019, in Chicago.
• Morgan, Murphy, and Brown allegedly murdered Donald Holmes, Jr. and Diane Taylor, on Jan. 31, 2018, in Chicago.
• Murphy, Brown, Gardley, and Arrington allegedly murdered Uriah Hughes on Jan. 11, 2018, in Chicago.
• Murphy, Brown, Lee, and Gardley allegedly murdered Kishaun Mobley on Dec. 23, 2017, in Chicago.
• Murphy allegedly murdered Alfred Stovall on April 28, 2017, in Chicago.
• Dockett and Davion Russell allegedly murdered Derrick Jones and Stephen Tucker on Dec. 23, 2016, in Chicago.
• Benson allegedly murdered Martel Howard on Jan. 21, 2016, in Chicago.
• Murphy and Brown allegedly murdered Dan Rance on Sept. 2, 2015, in Chicago.
• Murphy, Brown, and Lee allegedly murdered James Douthard on Aug. 23, 2015, in Chicago.
• Turner and Lee allegedly murdered Malcolm Willie on July 15, 2015, in Chicago.
• Gardley and Lee allegedly murdered Charlie Weathers on May 23, 2015, in Chicago.
• Brown allegedly murdered Abraham Cooper on Dec. 23, 2014, in Chicago.
• Brown and Benson allegedly murdered Ron Hernandez on Dec. 21, 2014, in Chicago.
• Lee allegedly murdered John Johnson on June 15, 2003, in Chicago.  
• Lee and Johnson allegedly murdered Ernest Moore on Dec. 23, 2002, in Chicago.
• Lee allegedly murdered Lamont Ware on July 22, 2000, in Chicago.

The indictment also charges several of the defendants with federal firearm and drug trafficking violations.

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.

Racketeering conspiracy generally carries a maximum sentence of 20 years in federal prison, but a life sentence is possible for certain underlying charged activities.  Several of the defendants also face a maximum of the death penalty if convicted of certain murders charged in the indictment.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — The former Chief Executive Officer of an Illinois computer services company has been sentenced to 13 years in federal prison for orchestrating fraud schemes that bilked a global telecommunications provider and two financial companies out of a combined $9 million.

DAVID GODWIN, 59, of Germantown Hills, Ill., pleaded guilty in 2018 to a wire fraud charge.  U.S. District Judge Edmond E. Chang 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; 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.  The government is represented by Assistant U.S. Attorneys Steven J. Dollear and John D. Mitchell.

Godwin served as CEO of ContinuityX Solutions Inc., a computer-services company based in Metamora, Ill.  From 2011 to 2013, Godwin orchestrated fraud schemes that bilked the global telecommunications provider out of more than $3 million and two financial companies out of $6 million.

In the first phase of the scheme, Godwin and ContinuityX’s Chief Financial Officer, ANTHONY ROTH, created false documentation to fraudulently inflate the financial condition of companies they had approached to purchase services from the global telecommunications provider, causing the global firm to approve the sales and pay ContinuityX millions in commissions for having procured new customers.  To further the scheme, Godwin and a ContinuityX sales representative, JOHN COLETTI, arranged conference calls in which Coletti fraudulently posed as an employee of the global provider.

In the second phase of the scheme, Godwin worked with Coletti to fraudulently obtain $6 million from a factoring agreement with the two victim financing companies.  Godwin secured the agreement after submitting false documentation claiming that a China-based company owed ContinuityX $8 million per month in receivables.  Godwin and Coletti arranged conference calls in which Coletti fraudulently posed as an employee of the China-based company to falsely assure the two victim companies that the accounts receivables were legitimate and that payment of the receivables was forthcoming.

Roth, of Upton, Mass., pleaded guilty to wire fraud and is scheduled to be sentenced on Dec. 7, 2021, at 1:00 p.m.

Coletti, of Canyon Country, Calif., pleaded guilty to a false statement charge and was sentenced in 2019 to two and a half years in federal prison.

ROCKFORD — A man has been convicted of federal robbery and firearm charges in connection with a series of violent retail store robberies in Rockford.

After a seven-day trial in U.S. District Court in Rockford, the jury on Tuesday convicted RICKEY CLAYBRON, 35, of Rockford, on one count of conspiracy to commit robbery, three counts of robbery, one count of attempted robbery, two counts of brandishing a firearm during a crime of violence, and two counts of discharging a firearm during a crime of violence.  Claybron faces a maximum sentence of life in prison when he is sentenced next year.

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 investigation was conducted by the FBI-led Rockford Area Violent Crime Task Force, which includes law enforcement officers and agents from the FBI, Rockford Police Department, Loves Park Police Department and Winnebago County Sheriff’s Office.  The government is represented by Assistant U.S. Attorneys Jessica S. Maveus and Kaitlin Klamann.

According to evidence presented at trial, Claybron and his co-conspirators conducted four violent robberies in the fall of 2015:

• Oct. 28, 2015: H&A Tobacco, 1623 Broadway in Rockford.  Claybron entered the store, pointed his gun at a clerk, and ordered the clerk and a customer to get on the ground.  Cash and multiple cartons of cigarettes were stolen from the store, along with the clerk’s personal belongings.
• Nov. 2, 2015: Advance Auto, 3019 Auburn St. in Rockford.  During the robbery, a store employee was ordered at gunpoint to lay on the ground while another employee was ordered to open the cash registers.  One employee was struck in the side of the face with a gun and later shot at when he ran from the store.  The robbers stole cash from the store and from one of the employees.
• Nov. 5, 2015: Zake Convenience, 824 7th St. in Rockford.  In this attempted robbery, Claybron entered the store first, pointing a gun directly at store clerks and then reaching behind a partition waving his gun.  When Claybron was unable to gain access to the cash register, he and the other robbers fled the store.
• Nov. 13, 2015: Shell Express, 3003 11th St. in Rockford.  Claybron pointed a sawed-off shotgun at customers while a co-conspirator, DEANDRE R. HAYWOOD of Rockford, pointed a gun at store employees and grabbed cigarettes and cash from the registers.  Haywood then shot one of the employees in the back while Claybron struck an employee in the head with his shotgun.

Haywood and a third co-conspirator, DARNELL LEAVY of Rockford, pleaded guilty prior to trial.  Haywood was sentenced to 26 and a half years in federal prison, while Leavy was sentenced to eleven and a half years. 

CHICAGO —A Chicago technology executive pleaded guilty today to a federal criminal charge and admitted illegally exporting computer equipment from the United States to a nuclear research agency of the Pakistani government.

OBAIDULLAH SYED, 66, of Northbrook, Ill., pleaded guilty to conspiracy to export goods from the U.S. without a license from the Department of Commerce and to submit false export information.  The conviction is punishable by a maximum sentence of five years in federal prison and a maximum fine of $250,000.  U.S. District Judge Mary M. Rowland set sentencing for Feb. 23, 2021, at 12:30 p.m.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations; Aaron Tambrini, Special Agent-in-Charge of the U.S. Department of Commerce, Bureau of Industry and Security-Office of Export Enforcement, Chicago Field Office; and Cynthia A. Bruce, Special Agent-in-Charge of the U.S. Department of Defense, Defense Criminal Investigative Service, Southeast Field Office.  The government is represented by Assistant U.S. Attorney Peter M. Flanagan.

Syed owned Pakistan-based BUSINESS SYSTEM INTERNATIONAL PVT. LTD., and Chicago-based BSI USA.  The companies provided high-performance computing platforms, servers, and software application solutions.  Syed admitted in a plea agreement that from 2006 to 2015 he conspired with his company’s employees in Pakistan to violate the International Emergency Economic Powers Act by exporting computer equipment from the U.S. to the Pakistan Atomic Energy Commission without obtaining the required authorization from the U.S. Department of Commerce.  The PAEC is a Pakistani government agency responsible for, among other things, designing and testing explosives and nuclear weapons parts.  It was designated by the U.S. government as an entity which may pose an unusual or extraordinary threat to the national security, foreign policy, or economy of the United States.

Syed further admitted that he and the other conspirators falsely represented to U.S.-based computer manufacturers that the illegal shipments were intended for Pakistan-based universities or Syed’s businesses, when, in fact, the conspirators knew that the true end user of each shipment was either the PAEC or a research institute that trained the agency’s engineers and scientists.  In so doing, Syed and his company caused the U.S.-based computer manufacturers to submit to the U.S. government shipping documents that listed false end-users for the U.S.-origin goods, thereby undermining the U.S. government’s ability to stop the illegal shipments.

Business System International Pvt. Ltd. was charged in the conspiracy as a corporate defendant.  The company has yet to respond to the charges.

ROCKFORD — Two Thomson Penitentiary inmates have been sentenced to additional prison time for assaulting another inmate.

U.S. District Judge John J. Tharp, Jr. on Thursday sentenced JASON MACKENZIE, 40, to eight years in prison, and CHRISTOPHER D. BARROW, 39, to eight years and nine months.  These sentences must be served after their current sentences are completed.

The sentences 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.  The government is represented by Assistant U.S. Attorney Vincenza L. Tomlinson.

Barrow and Mackenzie admitted in plea agreements that on May 8, 2019, they punched, kicked, and stomped the head and body of another inmate multiple times, causing serious injuries.

A third defendant, BRADLEY SHELTON, also pleaded guity and admitted participating in the assault.  Shelton is scheduled to be sentenced by Judge Tharp on March 15, 2022.

CHICAGO — A newly filed federal indictment adds additional carjacking and firearm charges against a Chicago man accused of murdering a rideshare driver during a carjacking earlier this year. 

EDMOND HARRIS, 18, was initially charged with carjacking a Lexus GS sedan and fatally shooting the driver, rideshare worker Javier Ramos, on March 23, 2021, in the North Lawndale neighborhood of Chicago.  The superseding indictment renews that charge and adds additional carjacking and attempting carjacking charges against Harris. 

JOSHUA WALKER, 21, of Chicago, is also charged in the new indictment with carjacking and firearm offenses.

According to the new charges, Harris and Walker conspired to carjack a Mitsubishi Outlander sport-utility vehicle in the Loop neighborhood of Chicago, and together committed that carjacking on Jan. 20, 2021.  The new indictment alleges that Harris on the same day attempted to carjack another vehicle – a Nissan Altima sedan – in west suburban Oak Park.

In addition to the carjacking offenses, the new indictment charges Harris and Walker with federal firearm violations that, if convicted, carry mandatory minimum sentences in federal prison.

Harris and Walker are both in federal custody.  Walker was arraigned last week in federal court in Chicago and pleaded not guilty to the charges.  He is scheduled to appear for a detention hearing Thursday at 11:00 a.m. before U.S. Magistrate Judge Jeffrey T. Gilbert. 

Harris will be arraigned on the superseding indictment Friday at 9:30 a.m. before U.S. District Judge Mary M. Rowland.

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; David Brown, Superintendent of the Chicago Police Department; and LaDon Reynolds, Chief of the Oak Park Police Department.  The government is represented by Assistant U.S. Attorneys Michelle Kramer and Paige Nutini.

The charges against Harris carry a mandatory minimum sentence of 27 years in federal prison and a maximum of death.  The charges against Walker carry a mandatory minimum sentence of seven years in federal prison and a maximum of life.

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

CHICAGO — A suburban Chicago woman admitted in federal court today that she used insider information obtained from her husband to purchase shares of a company ahead of its acquisition by the husband’s employer.

DENISE GREVAS, 60, of Evanston, pleaded guilty to one count of securities fraud.  The charge is punishable by up to 20 years in federal prison.  U.S. District Judge Harry D. Leinenweber set sentencing for Feb. 23, 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 U.S. Securities and Exchange Commission, which filed a civil enforcement action against Grevas, provided valuable assistance.  Assistant U.S. Attorneys Jared Hasten and Jason Yonan represent the government in the criminal case.

Grevas admitted in a plea agreement that in 2019 she made $286,960 in illegal profits from the purchase and sale of securities in a Washington state-based pharmaceutical company, which was a target for acquisition and later acquired by an overseas-based pharmaceutical company that had an office in Deerfield, Ill., and employed Grevas’s husband.  Grevas used material, non-public information about the expected acquisition to purchase shares in the Washington company ahead of a public announcement of the acquisition on Sept. 16, 2019.  After the announcement, the Washington company’s stock price increased and Grevas sold her shares for the profit, the plea agreement states.

CHICAGO — Four men have been charged with federal firearm offenses for allegedly trafficking guns from St. Louis to Chicago.

Criminal complaints filed in U.S. District Court in Chicago accuse ROBERT NARUP of buying firearms at gun shows throughout the United States and illegally selling them to JEROME BOYKIN in St. Louis, Mo.  Boykin then brought the guns to Chicago and sold them to ROGELIO MANCERA in exchange for marijuana, the charges allege.  Mancera re-sold the guns to RODOLFO ORTEGA, who in turn would sell them to various buyers on the streets of Chicago, the charges allege.

Narup, 71, of Washington, Mo., is charged with willfully dealing firearms without a license.  He was arrested on Oct. 15, 2021, in the St. Louis area after allegedly selling 18 firearms and two silencers to an undercover law enforcement agent in a retail store parking lot.  Narup appeared Monday in U.S. District Court in the Eastern District of Missouri.  He will appear in federal court in Chicago on a date to be set.

Boykin, 30, of St. Louis, Mo., is charged with possessing a firearm during a drug trafficking crime.  He was arrested in the Chicago area on Oct. 8, 2021, after allegedly selling more than 20 firearms to Mancera in exchange for marijuana.  Boykin made an initial appearance Wednesday in federal court in Chicago.

Mancera, 27, of Schaumburg, Ill., is charged with willfully dealing firearms without a license.  He was arrested Tuesday after federal agents searched his storage locker in Schaumburg and discovered more than 25 firearms, including machine guns, the complaint states.  Mancera made an initial appearance this morning in federal court in Chicago.

Ortega, 26, of Chicago, is charged with illegally possessing two firearms that he allegedly sold to an individual in Chicago on Oct. 5, 2021.  As a previously convicted felon, Ortega was not lawfully allowed to possess a firearm.  He was arrested Monday and is scheduled to appear for a detention hearing this afternoon in federal court in Chicago.

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

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, 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.

The public is reminded that complaints contain only charges and are not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  The firearm charge against Boykin carries a mandatory minimum sentence of five years in federal prison and a maximum of life.  The charge against Ortega is punishable by up to ten years, while the charges against Narup and Mancera carry a maximum of five years.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A Chicago investment manager who swindled more than $10 million from clients and lenders has been sentenced to 17 years in federal prison.

SHAWN BALDWIN owned and controlled various investment firms in Chicago.  From 2006 to 2017, Baldwin exaggerated his financial success and professional connections to fraudulently obtain more than $11 million from at least 24 investors and lenders.  Baldwin falsely claimed that their funds would be invested in stocks and other investment products, when in reality he spent much of the money for his personal benefit, including jewelry, tuition, and international travel.

Baldwin also deceived investors and lenders by misrepresenting and minimizing the serious disciplinary actions taken against him by regulators.  The regulatory actions included the revocation of his certifications with the Financial Industry Regulatory Authority in 2009, and a permanent prohibition from offering securities sales or investment advice, which the State of Illinois imposed in 2013.

A jury in 2019 convicted Baldwin, 55, of Olympia Fields, Ill., on seven counts of wire fraud.  U.S. District Judge John Robert Blakey imposed the prison sentence Monday 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.

“Defendant inflated to his victims his credentials, his investment portfolio, and his connections,” Assistant U.S. Attorneys Matthew Getter, Heidi Manschreck, and Michelle Petersen argued in the government’s sentencing memorandum.  “He convinced friends, acquaintances, and even childhood friends to trust him with their money based on his representations that he would invest it on their behalves in certain equities or businesses of his own.  Defendant lied to his victims to get their money, making bold and untrue assertions about his plans for their money, about what he had done with their money, about the value of their investments, about the value of his businesses, about his efforts to refund their money, and about the reasons he could not give them back their money.  Defendant moved from one victim to another, using their money to continue traveling in style around the world to sustain a false image of a successful financier in order to help find new victims and enjoy an extravagant lifestyle.”

CHICAGO — A federal jury today convicted a Chicago man of attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS).

The jury convicted THOMAS OSADZINSKI, 22, after a two-week trial in U.S. District Court in Chicago.  The charge of attempting to provide material support and resources to a foreign terrorist organization is punishable by up to 20 years in federal prison. U.S. District Judge Robert W. Gettleman did not immediately set a sentencing date.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Mark Lesko, Acting Assistant Attorney General for National Security at the U.S. Department of Justice; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. 

The case was investigated by the Chicago Joint Terrorism Task Force, which is comprised of federal, state and local law enforcement agencies.  The government is represented by Assistant U.S. Attorneys Barry Jonas and Melody Wells of the Northern District of Illinois, and Alexandra Hughes, Trial Attorney of the National Security Division’s Counterterrorism Section.

Evidence presented at trial revealed that ISIS and its supporters disseminated the terror group’s propaganda materials on social media to recruit fighters and inspire violence against the United States and other countries.  Many social media platforms remove ISIS media content due to the violent nature of the materials.  Osadzinski, a U.S. citizen, designed a process using a computer script to make ISIS propaganda more conveniently disseminated online.  The process would automatically copy and preserve ISIS media postings in an organized format, allowing social media users to continue to conveniently access and share the content.

Osadzinski in 2019 shared his script – and instructions for how to use it – with individuals whom he believed to be ISIS supporters and members of pro-ISIS media organizations.  Unbeknownst to Osadzinski, the individuals were actually covert FBI employees and a person confidentially working with law enforcement.

CHICAGO — A suburban Chicago man has been sentenced to three and a half years in federal prison for fraudulently misappropriating hundreds of thousands of dollars from a non-profit organization for physically and psychologically challenged children.

From 2011 to 2016, STUART NITZKIN worked as Executive Director of an Illinois-based non-profit organization whose mission was the rehabilitation of physically and psychologically challenged children.  During that time, Nitzkin knowingly submitted to the organization invoices and receipts for payment and reimbursement of expenses that Nitzkin claimed were incurred on behalf of the organization.  In reality, Nitzkin knew the expenses were actually incurred by Nitzkin for his and others’ personal benefit.

The expenses included luxury vacations for Nitzkin and his family to Nevada, Florida, Ireland, and Puerto Rico, personal golfing expenses, tickets to professional sporting events, personal medical expenses, real estate taxes for his family residence, health club dues, and household goods.  Nitzkin also pocketed cash from the organization’s fundraising events and took money from the charity’s bank accounts through ATM and other withdrawals, all for his personal benefit.

Nitzkin, 45, of Deerfield, Ill., pleaded guilty earlier this year to a wire fraud charge.  In addition to the 42-month prison sentence, U.S. District Judge Sara L. Ellis on Thursday fined Nitzkin $150,000 and ordered him to pay the remaining restitution of $516,400.

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 government is represented by Assistant U.S. Attorney Sheri H. Mecklenburg.

CHICAGO — A suburban Chicago businessman who schemed with an attorney and two others to sell millions of dollars in phony mortgages has been sentenced to eleven years in federal prison.

ALBERT ROSSINI, the owner of Devon Street Investments in Lincolnwood, was sentenced Tuesday in U.S. District Court in Chicago.  A jury in 2018 convicted Rossini, 73, of Skokie, on multiple counts of mail fraud and wire fraud.

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; William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Michael Powell, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development Office of Inspector General in Chicago; and Thomas J. Dart, Cook County Sheriff.  The government is represented by Assistant U.S. Attorney John D. Mitchell.

Evidence at trial revealed that Rossini plotted with father-and-son co-defendants BABAJAN KHOSHABE, of Chicago, and ANTHONY KHOSHABE, of Skokie, to fraudulently induce more than a dozen victims into purchasing purported mortgage notes on apartment buildings in or near foreclosure.  The defendants fraudulently promised that investors would receive title to the properties at the conclusion of the foreclosure process.  In reality, the defendants did not own the mortgage notes, and instead the victims’ funds were misappropriated and used to make Ponzi-type payments to some of the investors. 

The victims provided a total of more than $7 million in investment money to the defendants, and Rossini fraudulently pocketed more than $2.5 million of it.

A separate federal jury in 2019 convicted the Khoshabes for their roles in the scheme.  They are awaiting sentencing.

A fourth defendant, Chicago attorney THOMAS MURPHY, claimed to validate the sale of the mortgage notes through a phony “Guaranty Agreement” that he prepared and gave to Rossini to present to the victims.  Murphy pleaded guilty and admitted his role in the scheme.  He is awaiting sentencing.

CHICAGO — A member of a violent Chicago street gang has been sentenced to 30 years in federal prison for engaging in racketeering activity that included murder.

WILLIAM HAYSLETTE, 27, of Chicago, conspired with leadership of the Latin Kings street gang to engage in racketeering activity that included using violence and intimidation to protect the gang’s territory on the Southeast Side of Chicago and punishing fellow gang members suspected of cooperating with law enforcement.  Hayslette admitted in a plea agreement that he served as a “soldier” in the Latin Kings for several years and that he committed assault in aid of the gang’s racketeering activities.

In imposing the 30-year prison sentence Oct. 6, 2021, U.S. District Judge Virginia M. Kendall found that Hayslette participated in the murder of Sergio Hernandez on May 15, 2012, in the South Chicago neighborhood of Chicago.  After the murder of Hernandez, Hayslette obtained a “teardrop” tattoo on his face, signifying that he had killed someone on behalf of the Latin Kings.  Judge Kendall also found that Hayslette attempted to prevent a fellow Latin King from cooperating with law enforcement by setting fire to a vehicle.

Hayslette was indicted in federal court in 2018 along with more than 30 other alleged members of the Latin Kings.  The indictment charged numerous acts of violence allegedly committed by the gang’s members, including the killing of Hernandez and several other slayings.  Nearly all of the charged defendants have pleaded guilty or were convicted at trial, including GERONIA FORD, of Chicago, who last month was sentenced to 29 years in federal prison for participating in Hernandez’s murder and committing acts of witness intimidation.

The investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation.  OCDETF identifies, disrupts, and dismantles criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; 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 Cook County Sheriff’s Office, and the Hammond, Ind., Police Department. 

“Acting according to a manifesto and constitution, Latin Kings have devastated neighborhoods with gun violence, drug dealing, and witness intimidation,” Assistant U.S. Attorneys John D. Cooke, Ashley A. Chung, and Brian J. Kerwin argued in the government’s sentencing memorandum.  “Hayslette’s acts typify the terroristic nature of the Latin Kings and the conspiracy in which he enthusiastically participated.”

CHICAGO — A federal indictment unsealed today charges five alleged members of the O-Block street gang with participating in a criminal organization that murdered a Chicago rapper and violently protected the gang and its territories on the South Side of Chicago.

The indictment alleges that the O-Block gang publicly claimed responsibility for acts of violence in Chicago and used social media and music to increase their criminal enterprise.  The O-Block gang allegedly engaged in numerous acts of violence, including the murder of Carlton Weekly, a Chicago rapper also known as “FBG Duck,” on Aug. 4, 2020.

Charged with committing murder in aid of racketeering are Chicago residents CHARLES LIGGINS, also known as “C Murda,” 30; KENNETH ROBERSON, also known as “Kenny” and “Kenny Mac,” 28; TACARLOS OFFERD, also known as “Los,” 30; CHRISTOPHER THOMAS, also known as “C Thang,” 22; and MARCUS SMART, also known as “Muwop,” 22.  The indictment also charges the defendants with federal firearm violations and assaults in aid of racketeering. 

Liggins, Offerd, Thomas, and Smart were arrested this morning.  They are scheduled to make initial court appearances today at 2:00 p.m. before U.S. Magistrate Judge M. David Weisman. Roberson is currently in the custody of the Cook County Department of Corrections.  His initial federal court appearance will be scheduled at a later date.

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 David Brown, Superintendent of the Chicago Police Department.  Substantial assistance in the investigation was provided by the Cook County State’s Attorney’s Office.

The government is represented by Assistant U.S. Attorneys Jason A. Julien, Albert Berry III, and Ann Marie Ursini.

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

The murder count in the indictment carries a mandatory minimum sentence of life in federal prison and a maximum potential sentence of the death penalty.  One of the firearm counts is also punishable by a maximum potential sentence of the death penalty, while the other firearm count is punishable by a mandatory minimum of ten years and a maximum of life.  The assault counts are each punishable by a maximum of twenty years.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — The former owner of a debt collection company pleaded guilty today to a federal criminal charge for corruptly agreeing to underwrite certain expenses for a special event hosted by the former Cook County Circuit Court Clerk.

DONALD DONAGHER, JR., 69, of Harrisburg, Pa., pleaded guilty to one count of corruptly giving something of value to reward a public official.  U.S. District Judge John Z. Lee set sentencing for Jan. 21, 2022.

Donagher was a former owner and Chief Executive Officer of Harrisburg, Pa.-based PENN CREDIT CORPORATION, which in 2014 had a non-exclusive contract with Cook County to perform debt collection work.  Donagher admitted in a plea agreement that in March 2014 he agreed to underwrite certain expenses for a Women’s History Month Celebration hosted by the Circuit Court of Cook County.  The expenses included the payment of plaques that were presented to judges honored at the event.  Donagher admitted that he underwrote the expenses in an effort to corruptly reward the Clerk of the Circuit Court for her perceived favorable treatment with respect to the awarding of debt collection work to Penn Credit.

Relatedly, the criminal investigation of Penn Credit was resolved today with a deferred prosecution agreement under which Penn Credit admitted to engaging in the Cook County corruption scheme at the direction of Donagher.  Under the agreement, the government will defer prosecution of Penn Credit for two years and then seek to dismiss a conspiracy charge against it if the company abides by certain conditions, to include taking remedial measures to enhance its ethics and compliance programs and continuing to cooperate with the government with respect to any matter relating to this conduct.  The deferred prosecution agreement, which was approved today by the U.S. District Court, also requires Penn Credit to pay a monetary penalty of $225,000. 

Donagher’s plea agreement and Penn Credit’s deferred prosecution agreement were 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; Justin Campbell, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Patrick M. Blanchard, Cook County Inspector General.  The government is represented by Assistant U.S. Attorney Christopher V. Parente.

ROCKFORD — A Winnebago County man has been indicted on federal firearm and drug trafficking charges.

XZAVIOR SMITH, 22, of Roscoe, Ill., is charged with possession of a firearm as a previously convicted felon, possession with intent to distribute fentanyl and cocaine, and possession of a firearm in furtherance of a drug trafficking crime.  Smith was arrested Thursday.

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 Stephenson County Sheriff’s Office, Freeport Police Department, Roscoe Police Department, and Beloit Police Department’s Crime Interdiction Team provided valuable assistance in the investigation.  The government is represented by Assistant U.S. Attorney Robert S. Ladd.

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

The drug possession charge carries a maximum sentence of 20 years in federal prison, while the illegal firearm possession charge carries a maximum sentence of ten years.  The charge of possession of a firearm in furtherance of a drug trafficking crime carries a mandatory minimum sentence of five years in prison.  If Smith is convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A federal jury has convicted a ticket broker on fraud charges for scheming to sell thousands of discounted Chicago White Sox tickets without the team’s authorization.

BRUCE LEE, who owned Chicago-based Great Tickets, provided more than $100,000 to two White Sox ticket sellers in exchange for receiving complimentary and discounted game tickets that Lee would then sell on the online marketplace StubHub.  The ticket sellers – JAMES COSTELLO and WILLIAM O’NEIL – fraudulently generated the tickets without the team’s authorization.

During the 2016 to 2019 baseball seasons, Lee earned approximately $868,369 by selling more than 34,000 tickets that he fraudulently obtained from Costello and O’Neil.  As a result of the scheme, the White Sox suffered a loss of approximately $1 million.

Evidence presented at the four-day trial in U.S. District Court in Chicago revealed that when questioned by the FBI, Lee stated that he considered the payments the “American way, take care of a guy, and you get taken care of.”

The jury on Wednesday convicted Lee, 35, of Chicago, on all eleven counts of wire fraud.  Each count carries a maximum sentence of 20 years in federal prison.  U.S. District Judge Matthew F. Kennelly set sentencing for Jan. 10, 2022.

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 Matthew Schneider and David Green.

Costello and O’Neil, both of New Lenox, Ill., previously pleaded guilty and admitted their roles in the scheme.  They are awaiting sentencing.

CHICAGO — A suburban Chicago man has been sentenced to eight and a half years in federal prison for trafficking dozens of guns from Kentucky to Chicago.

From 2016 to 2018, JOHN PHILLIPS schemed with others to purchase rifles and semi-automatic handguns from private sellers in Kentucky and re-sell them in the Chicago area.  Many of the guns were sold to convicted felons whom Phillips knew could not legally purchase or possess firearms.  Several of the guns trafficked by Phillips were later discovered by law enforcement at crime scenes in Chicago.

Phillips, 26, of Lyons, Ill., pleaded guilty earlier this year to charges of unlawfully dealing firearms in interstate commerce.  U.S. District Judge Edmond E. Chang imposed the 102-month prison sentence Tuesday after a hearing in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; 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 Louisville (Ky.) ATF Field Division, Chicago Police Department, Illinois State Police, and Chicago High Intensity Drug Trafficking Area (HIDTA) Task Force.

“The breadth and extent of defendant’s firearms trafficking operation is staggering,” Assistant U.S. Attorneys Elizabeth R. Pozolo and Kalia Coleman argued in the government’s sentencing memorandum.  “As a result of defendant and his co-conspirators illegally selling guns, violence ensued involving real victims and disrupting community safety.”

Two other defendants were charged and have pleaded guilty to federal firearm charges as part of this investigation.  CHRISTOPHER HENDERSON, 26, of Louisville, Ky., was sentenced in 2019 to five and a half years in federal prison.  JAIQAIL WRIGHT, 27, of Chicago, is set to be sentenced today by Judge Chang.

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.  While this investigation began prior to the launch of the strike force, the initiative is designed to enhance efforts to investigate and prosecute similar cases.

ROCKFORD — A Loves Park investment advisor pleaded guilty today before U.S. District Judge Iain D. Johnston to wire fraud. 

NASEEM SALAMAH, 40, was an investment advisor who fraudulently obtained more than $950,000 from the accounts of three of his customers between August 2017 and May 2021.  According to a written plea agreement, Salamah told the customers that he needed to move the money to diversify their assets, when, in fact, Salamah used the money for his own benefit and without the customers’ knowledge or consent.

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 U.S. Securities and Exchange Commission, which filed a civil enforcement action against Salamah, provided valuable assistance.  The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.

Sentencing is set for Jan. 28, 2022, at 10:00 a.m.  Salamah faces a maximum sentence of 20 years’ imprisonment.  He will also be required to pay restitution to the customers in the amount of $968,582.12.

ROCKFORD — A Rockford man has been arrested on a charge of possessing child pornography. 

GREGORIO JOSEPH BACINO, 24, was arrested Friday.  A federal indictment charged him with possessing child pornography in June 2021.

The indictment 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 U.S. Homeland Security Investigations.  The government is represented by Assistant U.S. Attorney Robert S. Ladd.

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

Possession of child pornography carries a maximum sentence of 20 years in federal prison, and a $250,000 maximum fine.  If Bacino is convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.  

CHICAGO — A Chicago trader was charged today with securities fraud for allegedly engaging in unauthorized speculative bond trading that cost his employer and others more than $30 million.

KEITH WAKEFIELD, 48, of Chicago, was charged in a criminal information with one count of securities fraud.  The charge is punishable by a maximum sentence of 20 years in federal prison.  Arraignment in U.S. District Court in Chicago has not yet been set.

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 John D. Mitchell.

The U.S. Securities and Exchange Commission, which filed a civil enforcement lawsuit against Wakefield, provided valuable assistance. 

According to the charge, Wakefield worked as the head of fixed income trading in the Chicago office of a broker-dealer.  From 2017 to 2019, Wakefield knowingly and fraudulently engaged in unauthorized speculative trading in U.S. Treasury bonds using his employer’s trading accounts, causing more than $30 million in losses to the employer and its counterparties, the information states.  Wakefield attempted to conceal the unauthorized trades and losses by entering fake off-setting trades into a clearing broker’s order system, creating the false impression that he had profitably traded through a different clearing broker, the charge alleges.

In addition to the trading scheme, Wakefield allegedly embezzled approximately $820,000 from the employer by falsifying the company’s books and records to create fake commissions that Wakefield knew were not actually owed to him.

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 U.S. Sentencing Guidelines.

ROCKFORD — A superseding indictment returned Tuesday by a federal grand jury in Rockford charged two individuals with wire fraud, mail fraud, and aggravated identity theft involving unemployment compensation claims and the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). 

As alleged in the indictment, from June 2020 through March 2021, ROBERT CARTER, SIRREGINALD MCGUIRE, and others schemed to submit fraudulent Pandemic Unemployment Assistance claims to the California Employment Development Department, the Maryland Division of Unemployment Insurance, and the Virginia Employment Commission, resulting in more than $1 million in unemployment benefits for claimants whom Carter and McGuire knew were not entitled to them. Carter, McGuire, and others also electronically filed unemployment insurance claims in their own names, the charges allege.  The pair opted to have the unemployment benefits paid via debit cards mailed to residences connected to Carter, McGuire, and others involved in the scheme, and then withdrew the money from financial institutions in Illinois.

Carter, 27, of Hampton, Ga., is charged with wire fraud and mail fraud involving unemployment compensation claims and the CARES Act, aggravated identity theft, and money laundering. McGuire, 26, of DeKalb, Ill., is charged with wire fraud and mail fraud involving unemployment compensation claims and the CARES Act, and aggravated identity theft.  

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 Region of the Department of Labor – Office of Inspector General; and William Hedrick, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.  The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.

Each count of wire fraud and mail fraud carries a maximum penalty of 20 years in federal prison, while money laundering carries a maximum sentence of ten years.  Aggravated identity theft carries a mandatory sentence of two years’ imprisonment.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.   Arraignments in U.S. District Court in Rockford have not yet been set.

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.

CHICAGO — Seven former U.S. Postal Service employees in the Chicago area have been charged with participating in schemes to steal credit cards and other financial instruments from the mail.  The indictments are the latest charges in “Operation Cash on Delivery,” a federal investigation that previously resulted in conspiracy charges against several other former USPS employees.

Indictments unsealed Tuesday in U.S. District Court in Chicago allege that credit cards and other financial instruments were stolen from the mail and provided to others in exchange for cash or other items.  Some of the defendants unlawfully obtained USPS customers’ personal identifying information, including dates of birth and Social Security numbers, which was then used to fraudulently activate the stolen cards, the charges allege.  The newly charged USPS employees delivered mail in Chicago or processed and sorted the mail at a USPS facility in suburban Palatine. 

Many of the new defendants were arrested Tuesday and have begun making initial appearances in federal court in Chicago.

The indictments and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Andre Martin, Special Agent-in-Charge of the Chicago Great Lakes Area Field Office of the U.S. Postal Service, Office of Inspector General; and Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations.  The government is represented by Assistant U.S. Attorneys Shy Jackson and Paige Nutini, and Special Assistant U.S. Attorney Peter Madriñan.

Charged with conspiring to steal mail are former USPS employees CHARLESE BENNETT, 31, of Chicago; SHUNTONESE RICHARDSON, 24, of Willowbrook, Ill.; LATIYAH DAVIDSON, 28, of Chicago; C’ORY VONPIER MCNEAL, 32, of Atlanta, Ga.; BRANDY WALKER, 33, of Chicago; and ZAKEYA BLAKE, 24, of Hammond, Ind.  Also charged in the conspiracy are DARAY ROSS HINES, 25, of Chicago; TRAMONT MILLER, 23, of Wheaton, Ill.; MAHLIK WASHINGTON, 30, of Chicago; and WILLIAM CRAWFORD, 33, of Chicago.  Former USPS employee KENNETHIA HOWLEIT, 27, of Chicago, is charged with knowingly receiving and possessing stolen mail.

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

ROCKFORD — A Rockford man was sentenced Tuesday to ten years in federal prison on child pornography charges. 

PIERRE D. HAYES, 32, admitted in a plea agreement that on May 4, 2015, he used a computer to send a video file over the internet.  The image in the file depicted a female child under the age of 18 engaged in sexually explicit conduct. 

In addition to the prison term, U.S. District Judge Harry D. Leinenweber ordered Hayes to pay $25,000 in restitution.

The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Angie Salazar, Special Agent-in-Charge of Homeland Security Investigations (HSI) in Chicago; and Carla Redd, Chief of the Rockford Police Department.  The government was represented by Assistant U.S. Attorney Monica V. Mallory.

ROCKFORD — A Rockford man was indicted Tuesday by a federal grand jury for allegedly illegally possessing multiple firearms earlier this year.

The first count of the indictment alleges that on April 30, 2021, JAMES PETERSON, 40, illegally possessed a loaded .380-caliber semi-automatic handgun and a .45-caliber handgun.  The second count alleges that on Aug. 18, 2021, Peterson illegally possessed a .45-caliber handgun.  As a previously convicted felon, Peterson was not lawfully allowed to possess a firearm.

Arraignment in U.S. District Court in Rockford has not yet been set.

The indictment 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 Field Office of Homeland Security Investigations (HSI).  The Illinois State Police’s State Line Area Narcotics Team (SLANT), the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, and the U.S. Drug Enforcement Administration assisted in the investigation.  The government is represented by Assistant U.S. Attorney Robert S. Ladd.

The public is reminded that an indictment is only a charge and 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.  

ROCKFORD — A Loves Park man has been charged with fraudulently obtaining more than $950,000 from three of his customers. 

A criminal information filed by the U.S. Attorney's Office in Rockford charges NASEEM SALAMAH, 40, with one count of wire fraud.

Salamah, who worked as an investment advisor in Loves Park, fraudulently obtained more than $950,000 from the accounts of three customers from August 2017 to May 2021, the information states.  Salamah told the customers that he needed to move the money to diversify their assets, when, in fact, Salamah deposited the money into a bank account that he controlled, the charge alleges.  Salamah allegedly used the money for his own benefit and without the customers’ knowledge or consent. 

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, which filed a civil enforcement action against Salamah, provided valuable assistance.  The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.

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.

Wire fraud carries a maximum penalty of 20 years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.  Arraignment in U.S. District Court in Rockford has not yet been set.

CHICAGO — An alleged cyber attacker from Turkey has been indicted in federal court in Chicago for allegedly orchestrating a distributed denial-of-service (DDoS) attack on a Chicago-based multinational hospitality company.

In August 2017, IZZET MERT OZEK used the WireX botnet, which consisted of compromised Google Android devices, to direct large amounts of network traffic to the hospitality company’s website, preventing legitimate users from completing hotel bookings, according to an indictment returned Tuesday in U.S. District Court in Chicago.  The hospitality company, which managed luxury hotels and resorts, was headquartered in Chicago and the servers for its website were located in northern Illinois.

The indictment charges Ozek, 32, with one count of intentionally causing damage to a protected computer.  Ozek is believed to be residing in Turkey, and a warrant for his arrest will be issued.

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 Vikas Didwania.

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 —A Chicago woman has been indicted on federal criminal charges for allegedly fraudulently obtaining the personal identifying information of deceased individuals and using it to file for tax refunds and stimulus payments from the U.S. Treasury.

An indictment returned Monday in federal court in Chicago charges KATRINA PIERCE, 50, with ten counts of wire fraud, six counts of aggravated identity theft, three counts of making false statements to the U.S. Small Business Administration, and one count of possessing identification documents to defraud the United States.  Arraignment is set for Oct. 5, 2021, at 9:30 a.m. before U.S. District Judge Virginia M. Kendall.

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

According to the indictment, Pierce fraudulently requested and obtained death certificates for individuals from Illinois and several other states.  Pierce then used personal identifying information of deceased individuals to file false income tax returns with the IRS so that she could fraudulently obtain tax refunds and stimulus payments under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the indictment states.  Pierce allegedly claimed a deceased boy as a dependent on her own tax return and attached to other false returns bogus birth certificates that falsely claimed deceased children as dependents. 

The indictment also accuses Pierce of fraudulently submitting applications to the SBA seeking loans under the COVID-19 Economic Injury Disaster Loan (EIDL) program, a financial assistance program for small businesses suffering from a temporary loss of revenue due to the Coronavirus pandemic.  Pierce submitted false applications under her own name and under the names of other persons, including farmers and small business owners in Illinois and other states, whose personal identity information was unlawfully taken and used without their knowledge, the charges allege.  The indictment describes applications submitted by Pierce in which she fraudulently claimed to be the owner of a manufacturing business with 106 employees and a retail electronics business with 14 employees, with both businesses purportedly located at the same address – an apartment where Pierce was then residing.

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.

ROCKFORD — A Lakewood, Ill., man pleaded guilty Thursday to a federal criminal charge of wire fraud.

From approximately January 2007 through April 2015, VALENTINO VALERIU AGIGNOAE, 55, participated in a scheme to defraud and obtain money from the United States, specifically Social Security Administration disability insurance benefits. In total, Agignoae fraudulently obtained and caused the U.S. government to suffer losses of approximately $157,503.

Agignoae faces a maximum term of imprisonment of twenty years.  As part of the guilty plea, Agignoae agreed to the entry of a personal money judgment in the amount of $157,303.

Sentencing is set for Jan. 13, 2022, at 1:30 p.m. before U.S. District Judge Joan Humphrey Lefkow.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Andrew Boockmeier, Special Agent-in-Charge of the Chicago Office of the Social Security Administration's Office of the Inspector General.  The government is represented by Assistant U.S. Attorneys Michael C. Beckman, Robert S. Ladd, and Michael D. Love, and Special Assistant U.S. Attorney Niranjan Emani.

Agignoae began receiving SSA disability insurance benefits in 1996.  In 2015, Agignoae’s benefits were terminated following a multi-year SSA-OIG investigation. The probe revealed that Agignoae failed to notify the SSA that he was able to work and was in fact working at a Chicago restaurant, which he also owned.  He also made false statements and representations regarding prior work and employment.

CHICAGO — A Chicago man who carjacked a vehicle at gunpoint in the city’s Edgewater neighborhood has been found guilty of federal carjacking and weapons offenses.

The jury in U.S. District Court in Chicago on Friday convicted JAMAR JARVIS, 21, of carjacking and brandishing a firearm in connection with a carjacking.  The firearm charge carries a mandatory minimum sentence of seven years in federal prison and a maximum of life, while carjacking is punishable by up to 15 years.  U.S. District Judge Matthew F. Kennelly scheduled sentencing for Dec. 13, 2021, at 1:30 p.m.

The verdict 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 Cook County State’s Attorney’s Office provided valuable assistance.  The government is represented by Assistant U.S. Attorneys Michelle Kramer and Albert Berry III.

On Oct. 18, 2018, Jarvis and two others – RAYNELL LANFORD, 21, and JAMAAL ASHSAHEED, 22, both of Chicago – forcibly took a Lexus sport-utility vehicle from a victim at gunpoint.  JAVION BUSH, 21, of Chicago, provided assistance to the others after the carjacking.  After taking the Lexus, Jarvis, Lanford, Ashsaheed, and Bush drove it to a gas station in the South Loop neighborhood of Chicago, where they purchased gas and a gas can.  CPD officers later arrested them.

Lanford and Ashsaheed have pleaded guilty to carjacking and weapons offenses, and Bush pleaded guilty to being an accessory after the fact.