Northern District of Illinois
Press releases recorded for this federal judicial district.
Suburban Chicago Businessman Sentenced to Eleven Years in Federal Prison for Participating in Multi-Million Dollar Ponzi SchemeRead the Press Release
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 Street Gang Member Sentenced to 30 Years in Federal Prison on Murder and Racketeering OffensesRead the Press Release
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.”
Five Alleged Street Gang Members Charged with Federal Racketeering Offenses Including Murder of Chicago RapperRead the Press Release
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.
Owner of Debt Collection Company Pleads Guilty to Corruptly Providing Benefits to Public OfficialRead the Press Release
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.
Winnebago County Man Arrested on Federal Firearm and Drug Trafficking ChargesRead the Press Release
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.
Ticket Broker Convicted in Scheme to Fraudulently Sell Chicago White Sox TicketsRead the Press Release
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.
Man Sentenced to More Than 8 Years in Federal Prison for Trafficking Dozens of Firearms from Kentucky to ChicagoRead the Press Release
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.
Loves Park Investment Advisor Pleads Guilty to Fraud Charge for Misappropriating More Than $950,000 in Customer FundsRead the Press Release
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 Man Arrested on Child Pornography ChargeRead the Press Release
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 Man Charged in Federal Court with Engaging in Unauthorized Trading That Caused $30 Million in LossesRead the Press Release
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.
Two Men Charged with Fraud Involving More Than $1 Million in Unemployment Compensation and the CARES ActRead the Press Release
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.
Seven Former Postal Service Employees Charged in Federal Probe of Credit Cards Stolen from the MailRead the Press Release
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 Man Sentenced to Ten Years in Federal Prison on Child Pornography ChargesRead the Press Release
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 Man Charged with Illegal Possession of FirearmsRead the Press Release
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.
Loves Park Investment Advisor Charged with Fraudulently Obtaining More Than $950,000 from CustomersRead the Press Release
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.
Federal Indictment in Chicago Charges Turkish National with Directing Cyber Attack on Multinational Hospitality CompanyRead the Press Release
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 Woman Charged with Filing False Income Tax Returns to Fraudulently Obtain Refunds and Stimulus PaymentsRead the Press Release
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.
Lakewood Man Pleads Guilty to Wire FraudRead the Press Release
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.
Federal Jury Convicts Chicago Man in Connection with Violent Carjacking in ChicagoRead the Press Release
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.
Chicago Man Sentenced to More Than 12 Years for Carjacking and Weapons OffensesRead the Press Release
CHICAGO — A Chicago man who carjacked a vehicle at gunpoint and discharged the firearm in the city’s Uptown neighborhood was sentenced yesterday to 150 months in federal prison.
On the afternoon of July 28, 2020, MICHAEL C. PEARSON, 19, forcibly took a 2006 Buick Lucerne from two victims in the Uptown neighborhood of Chicago. During the carjacking, Pearson fired a pistol in the direction of a passenger of the vehicle.
Pearson pleaded guilty earlier this year to carjacking and weapons offenses. U.S. District Judge John F. Kness on Monday imposed the prison sentence in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Cook County State’s Attorney’s Office.
“Carjackers have terrorized the city of Chicago and its surrounding suburbs for the past few years,” Assistant U.S. Attorney Albert Berry III argued in the government’s sentencing memorandum. “The community as a whole – victims, witnesses, society, and perpetrators – need to know that the federal system takes the crime of carjacking seriously and will justly punish those that commit the heinous offense.”
According to evidence in the case, Pearson and his associate pointed a firearm at the owner of the Buick and took her keys. Pearson’s associate got into the driver’s seat and drove away, with Pearson in the front seat and a victim in the back seat. Pearson fired the pistol in the direction of the victim. The bullet missed the victim and struck the roof of the Buick. Pearson’s associate crashed the vehicle and Pearson ran from the vehicle.
Man Sentenced to More Than Six Years in Federal Prison for Unlawfully Dealing Shotguns and Other Firearms in ChicagoRead the Press Release
CHICAGO — A federal judge has sentenced a man to more than six years in prison for unlawfully dealing shotguns and other firearms in Chicago.
PARIS STEELE illegally sold five firearms in Chicago in 2016 and 2017 to an individual who, unbeknownst to Steele, was cooperating with law enforcement. The firearms included two shotguns, two handguns, and a rifle. The serial number on one of the handguns had been obliterated to prevent tracing by law enforcement. In addition to the unlawful gun deals, Steele also sold to the cooperating individual more than 30 grams of crack cocaine.
In 2017, while Steele was on bond and awaiting trial in this case, he appeared in videos on social media holding a firearm and threatening violence against others.
Steele, 23, of Chicago, pleaded guilty to federal firearm and drug charges. U.S. District Judge Ronald A. Guzman on Tuesday sentenced Steele to six years and eight months in federal prison.
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. Assistant U.S. Attorney Christopher V. Parente represented the government.
Man Sentenced to Six Years in Federal Prison for Illegally Possessing Stolen Gun in Chicago ParkRead the Press Release
CHICAGO — A man has been sentenced to six years in federal prison for illegally possessing a stolen semi-automatic handgun in Douglas Park on Chicago’s West Side.
TERRY LEE illegally possessed the loaded gun in the 1200 block of South Farrar Drive on the evening of Aug. 12, 2020. Chicago Police officers responding to a call of a person with a gun observed Lee sitting in the driver’s seat of a van. As the officers approached him, Lee exited the van and ran toward a grassy area before being apprehended. Officers discovered the firearm in the center console of the van.
Lee, 30, of Chicago, pleaded guilty earlier this year to a federal charge of illegal possession of a firearm. He had previously been convicted of felonies in state court and was prohibited by federal law from possessing the gun.
U.S. District Judge John J. Tharp, Jr., imposed the prison sentence Aug. 26, 2021, after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and David Brown, Superintendent of the Chicago Police Department.
“City residents often fear for their safety and for the safety of their loved ones while simply trying to go about their daily lives due to the possession and use of guns by people who are not permitted to have them,” Assistant U.S. Attorney Matthew Getter argued in the government’s sentencing memorandum. “The law that defendant broke is one that is designed to prevent people who previously have broken serious laws from possessing these dangerous weapons.”
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 Man Charged in Federal Court with Making False Statements While Acquiring FirearmsRead the Press Release
CHICAGO — A Chicago man has been charged in federal court with making materially false statements in the acquisition of more than 20 firearms.
In 2019 and 2020 STOVALL BUCHANAN acquired 23 handguns and a rifle from suburban Chicago firearms dealers, falsely certifying on federal forms that he resided at a certain address in Chicago and, in connection with some of the purchases, that he was the actual buyer of the guns, according to a criminal complaint unsealed today in U.S. District Court in Chicago. In reality, Buchanan resided at a different Chicago address at the time of the purchases, and within months of the sales all but one of the 23 guns were no longer in his possession, the complaint states. Four of the firearms were later discovered in the possession of other individuals, including one felon who was prohibited by federal law from possessing a gun, the complaint states.
Buchanan, 23, of Chicago, is charged with making a false statement in connection with the acquisition of a firearm. The charge is punishable by a maximum sentence of ten years in federal prison. Buchanan made an initial court appearance today before U.S. Magistrate Judge Maria Valdez in Chicago.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The Chicago Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorney Shy Jackson.
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 convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Federal Judge Sentences Chicago Man to Eight Years in Prison for Illegally Possessing Loaded Gun on City’s West SideRead the Press Release
CHICAGO — A Chicago man has been sentenced to eight years in federal prison for illegally possessing a loaded handgun in the city’s Humboldt Park neighborhood.
EDDIE JONES, 28, illegally possessed the gun in the 800 block of North Homan Avenue on June 5, 2020. Chicago Police officers responding to the sound of gunfire observed Jones running along the street and tossing the gun into a vacant lot. The firearm was equipped with a laser scope and loaded with multiple rounds of ammunition. Further investigation revealed that three victims were wounded by gunfire moments before the officers encountered Jones.
Jones pleaded guilty earlier this year to a federal charge of illegal possession of a firearm. He had previously been convicted of felonies in state court, including firearm-related offenses, and was prohibited by federal law from possessing the gun.
In imposing the prison sentence Wednesday, U.S. District Judge Manish S. Shah found that Jones used the handgun in the attempted murders of the three wounded victims.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and David Brown, Superintendent of the Chicago Police Department. The government was represented by Assistant U.S. Attorney Cornelius A. Vandenberg.
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.
Man Indicted for Allegedly Straw Purchasing Handguns in Suburban Chicago StoreRead the Press Release
CHICAGO — A man has been indicted on federal firearm charges for allegedly straw purchasing handguns in a suburban Chicago store on behalf of another individual.
JUSTIN GARCIA purchased a handgun in 2019 and another in 2020 from a licensed firearms dealer in Crete, Ill., and falsely certified on federal forms that he was the actual buyer, according to an indictment unsealed Tuesday in U.S. District Court in Chicago. In reality, Garcia purchased the guns on behalf of another individual, the charges allege.
Garcia, 24, of Chicago, is charged with two counts of making a false statement in connection with the acquisition of a firearm. He pleaded not guilty Tuesday during his arraignment in federal court in Chicago. A status hearing is set for Sept. 30, 2021, at 10:00 a.m., before U.S. District Judge Franklin U. Valderrama.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The Chicago Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorney Megan DeMarco.
Each charge in the indictment is punishable by a maximum sentence of ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
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.
Suburban Chicago Prescription Drug Wholesaler Indicted for Allegedly Re-Selling Diverted Drugs to PharmaciesRead the Press Release
CHICAGO — The owner of a suburban Chicago prescription drug wholesale distribution company purchased more than $57 million worth of diverted, unregulated prescription drugs and re-sold them to unsuspecting pharmacies and other wholesalers, according to a federal indictment returned in U.S. District Court in Chicago.
GURUCHARAN DUA used his Plainfield, Ill.-based distribution company to knowingly obtain wholesale amounts of the diverted prescription drugs at discounted prices from unlicensed suppliers, the indictment states. Upon receipt of the diverted drugs, Dua directed his employees to clean the bottles to fraudulently make the drugs appear to be from a regulated prescription drug distribution chain, the indictment states. Dua then knowingly sold the diverted prescription drugs to unsuspecting pharmacies and other wholesalers, falsely representing to them that his company had acquired the prescription drugs from a licensed source in a regulated supply chain, the indictment states.
The charges allege that from 2011 to 2017, Dua purchased approximately $57.2 million worth of diverted prescription drugs that he later re-sold to the pharmacies and wholesalers. Some of the pharmacies were located in Chicago, Joliet, Ill., and Springfield, Mass., the indictment states.
The indictment charges Dua, 50, of Naperville, Ill., with six counts of mail fraud, four counts of wire fraud, and three counts of money laundering. Arraignment is scheduled for Aug. 31, 2021, at 11:00 a.m., before U.S. Magistrate Judge Jeffrey I. Cummings.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Lynda M. Burdelik, Special Agent-in-Charge of the Chicago Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations. The Office of the Chief Counsel at the FDA provided valuable assistance. The government is represented by Assistant U.S. Attorney Christopher V. Parente.
“Patients deserve to have confidence that they are receiving the legitimately prescribed medication and not an unregulated, diverted drug,” said U.S. Attorney Lausch. “Individuals who take advantage of their positions and seek to profit from diverted prescription drugs will be prosecuted to the fullest extent of the law.”
“Prescription drugs that are not in the legitimate supply chain can present a serious health risk to those who buy and use these diverted drugs,” said FDA SAC Burdelik. “FDA will continue to protect consumers by investigating and bringing to justice those who attempt to traffic in diverted prescription drugs.”
The public is reminded that charges are 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 mail fraud and wire fraud carries a maximum sentence of 20 years in federal prison, while each money laundering count is punishable by up to ten years. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Evanston Woman Charged with Insider TradingRead the Press Release
CHICAGO — An Evanston woman used insider information obtained from her husband to purchase shares of a company ahead of its acquisition by her husband’s employer, according to a federal criminal charge filed today by the U.S. Attorney’s Office in Chicago.
In August and September 2019, DENISE GREVAS made $286,960 in illegal profits from the purchase and sale of securities in a Washington state-based pharmaceutical company that 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, according to a criminal information filed in U.S. District Court in Chicago. 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, the charge alleges. After the announcement, the Washington company’s stock price increased and Grevas sold her shares for the profit, the charge alleges.
The information charges Grevas, 60, with one count of securities fraud. The charge, which was filed by the Securities and Commodities Fraud Section of the U.S. Attorney’s Office in Chicago, is punishable by up to 20 years in federal prison. Arraignment in federal court in Chicago has not yet been scheduled.
The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Securities and Exchange Commission, 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.
The public is reminded that an information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Chicago Man Sentenced to Five and a Half Years in Federal Prison for Illegally Possessing Loaded Gun on City’s Near North SideRead the Press Release
CHICAGO — A Chicago man has been sentenced to five and a half years in federal prison for illegally possessing a loaded handgun on the city’s Near North Side.
NICHOLAS WILLIAMS, 33, illegally possessed the loaded gun while walking on the sidewalk in the 900 block of North Cambridge Avenue on Dec. 8, 2018. Williams fled on foot when he saw Chicago Police officers approach in a vehicle. Williams scaled two fences before the officers safely brought him into custody. The firearm was equipped with an extended magazine and loaded with 22 rounds of ammunition. Williams also had in his possession 22 individually wrapped bags containing crack cocaine.
Williams had previously been convicted of felonies in state court, including aggravated discharge of a firearm and manufacturing and delivering cocaine, and was not legally allowed to possess the gun. He was on parole for the state firearm offense at the time of the federal charge.
Williams pleaded guilty earlier this year to a charge of illegal possession of a firearm. U.S. District Judge Edmond E. Chang imposed the 66-month 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; 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 was represented by Assistant U.S. Attorney Christopher V. Parente.
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Suburban Chicago Nursing Facility to Pay $360,000 to Resolve False Claims Act AllegationsRead the Press Release
CHICAGO — The U.S. Attorney’s Office in Chicago today announced that a suburban Chicago nursing facility has agreed to pay $360,000 to resolve civil allegations that it violated the False Claims Act by providing unnecessary and “upcoded” physical, occupational, and speech therapy services to increase Medicare payments.
A consent judgment and settlement agreement resolve allegations that, from 2008 to 2016, skilled nursing facility NORRIDGE GARDENS, of Norridge, Ill., provided medically unnecessary services to Medicare beneficiaries, first through a third-party skilled therapy vendor, Quality Therapy & Consultation Inc., formerly of Orland Park, Ill., and then through its own skilled therapy affiliate, REX THERAPEUTICS LLC, of Skokie, Ill. The allegations contend that Norridge Gardens pressured others to meet quotas for the proportion of Medicare Part A beneficiaries utilizing the highest-possible reimbursement level, known as the Resource Utilization Group (“RUG”) score, in an effort to increase Medicare payments. Norridge Gardens also allegedly claimed payment for therapy services without a physician order and other times reported that skilled therapy had been provided, when, in fact, the patients were not participating in therapy or were unable to undergo or benefit from it.
The consent judgment and settlement agreement resolve claims in two civil lawsuits filed in U.S. District Court in Chicago by a former employee of Quality Therapy and Rex Therapeutics under the qui tam, or whistleblower, provisions of the False Claims Act. The Act permits private citizens to bring lawsuits on behalf of the United States for false claims, and to share in any recovery. The United States intervened in both lawsuits prior to entry of the consent judgment and settlement agreement.
The settlement and consent judgment with Norridge Gardens and Rex Therapeutics were entered Friday in U.S. District Court in Chicago. The United States in 2019 reached a settlement with Quality Therapy and its owner, requiring them to pay $1.09 million to resolve alleged False Claims Act violations.
The civil resolutions were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General; 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 Sarah J. North.
The public is reminded that civil allegations are accusations only, and there was no determination of liability as part of the settlement and consent judgment.
Illinois Attorney Found Guilty of Bankruptcy FraudRead the Press Release
ROCKFORD — An Illinois attorney whose practice included bankruptcy law has been found guilty of bankruptcy fraud charges following a two-week jury trial in federal court in Rockford.
KEVIN O. JOHNSON, also known as “K.O. Johnson,” 55, of Sycamore, Ill., was convicted Friday on four counts of bankruptcy fraud, one count of making a false entry in a document in a bankruptcy proceeding, one count of withholding records from the Bankruptcy Trustee, and one count of concealment of property consisting of account receivables belonging to the bankruptcy estate. The charges related to Johnson’s Chapter 7 bankruptcy proceeding initiated on Dec. 31, 2011.
Sentencing is set for Nov. 22, 2021, at 11:00 a.m. Each charge carries a maximum sentence of five years in federal prison and a fine of up to $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater. The actual sentence will be determined by the U.S. District Court, guided by the U.S. sentencing guidelines.
The guilty verdict 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, Michael Love, and Michael Beckman.
Suburban Chicago Man Sentenced to Three Years in Prison for Scheming to Defraud the IRS Out of $815,000Read the Press Release
CHICAGO — A suburban Chicago man has been sentenced to three years in federal prison for causing the IRS to issue more than $815,000 in fraudulent tax returns.
SHAWN P. STEWART filed eight fraudulent returns seeking more than $3.1 million in refunds, causing the IRS to issue him more than $815,000. Stewart created construction and other companies that barely did any business, and he used those businesses to create false W-2 forms that falsely listed him as earning hundreds of thousands or millions of dollars in wages. The large wages allowed him to list correspondingly large federal income tax withholdings, and he used purported Schedule E losses from the businesses to greatly reduce the purported wage income and then claim entitlement to the large tax refunds.
After fraudulently receiving the money from the IRS, Stewart used it to fund a luxurious lifestyle. He purchased several BMW vehicles, a trailer for a truck, expensive dinners, and items at luxury retail stores.
Stewart, 50, of Matteson, Ill., pleaded guilty to a charge of presenting a false claim upon the United States. U.S. District Chief Judge Rebecca R. Pallmeyer imposed the 36-month sentence Wednesday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Justin Campbell, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.
“Stewart’s tax fraud was brazen,” Assistant U.S. Attorney Vikas Didwania argued in the government’s sentencing memorandum. “He was stealing from funds that go to schools, soldiers, veterans, senior citizens, and others for vital services provided by our government.”
Financial Adviser Sentenced to Three and a Half Years in Prison for Swindling Millions from ClientsRead the Press Release
CHICAGO — A Chicago financial adviser has been sentenced to three and a half years in federal prison for swindling more than $3 million from clients, including a man who received compensation from the State of Illinois in a wrongful conviction settlement.
MARCUS E. BOGGS represented to clients and his employer, an investment advisory firm, that he would use client funds to buy and sell securities. In reality, Boggs spent more than $3 million of his clients’ funds over a ten-year period to pay his personal credit cards and the mortgage on his residence. His credit card purchases included international vacations, expensive dinners at restaurants, and rent for multiple apartments that Boggs leased in Chicago.
One of the defrauded clients was wrongfully imprisoned for several years after being convicted of a 1991 sexual assault, kidnapping, and murder of a teenage girl. After DNA testing exonerated the client and led to his release from prison, he received approximately $5 million from the State of Illinois and retained Boggs to manage and invest some of the money. Boggs instead stole approximately $800,000 of the client’s funds.
Boggs, 51, of Chicago, pleaded guilty earlier this year to a charge of wire fraud. In addition to the 36-month prison sentence, U.S. District Judge Mary M. Rowland on Thursday ordered Boggs to pay more than $3.08 million in restitution to the victims.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Chicago Regional Office of the U.S. Securities and Exchange Commission, which filed a civil enforcement action against Boggs.
“Defendant had a personal relationship with his clients and knew what they hoped to achieve with their life savings and retirement,” Assistant U.S. Attorney John D. Mitchell argued in the government’s sentencing memorandum. “But that didn’t stop him from stealing their hard-earned money.”
Federal Jury Convicts Man of Illegally Possessing Handgun on Evanston StreetRead the Press Release
CHICAGO — A federal jury in Chicago convicted a man of illegally possessing a semi-automatic handgun in Evanston after he tried to flee from police in a car and on foot.
DARIUS MORALES illegally possessed the firearm in Evanston on May 8, 2019. Evanston Police responded to gun shots fired in an alley and saw a silver Jeep Commander pull out and speed away. An officer pursued the vehicle at a high rate of speed until the Jeep crashed into a fence in the backyard of a residence. Morales, who was a passenger in the Jeep, left the gun on the fence and fled on foot. He was arrested a few blocks away.
After a three-day trial in federal court in Chicago, the jury on Thursday convicted Morales, 31, of Evanston, of illegally possessing the firearm. Morales had previously been convicted of multiple felonies and was not legally allowed to possess a gun.
Judge Amy J. St. Eve of the U.S. Court of Appeals for the Seventh Circuit, sitting by designation in the U.S. District Court, heard the trial and scheduled sentencing for Nov. 29, 2021, at 1:00 p.m.
The conviction is punishable by a sentence of up to ten years in federal prison.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Division of the U.S. Drug Enforcement Administration. Substantial assistance was provided by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Evanston Police Department, and Cook County State’s Attorney’s Office. The government was represented by Assistant U.S. Attorneys Jeannice Appenteng and Charles W. Mulaney.
Will County Man Arrested on Federal Charges for Allegedly Transporting a Minor from Iowa to Engage in Criminal Sexual ActivityRead the Press Release
CHICAGO — A Will County man has been arrested on federal charges for allegedly transporting a minor to Illinois from Iowa to engage in criminal sexual activity.
RYAN ZELEK, 28, of Wilmington, Ill., is charged with one count of production of child pornography and one count of transportation of a minor with intent to engage in criminal sexual activity. The FBI on Tuesday arrested Zelek and conducted a court-authorized search of his residence. A detention hearing in federal court in Chicago is set for Friday at 1:00 p.m. before U.S. Magistrate Judge Gabriel A. Fuentes.
The arrest and charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Wilmington, Ill., Police Department. The government is represented by Assistant U.S. Attorney Kate McClelland.
According to a criminal complaint filed in federal court, Zelek communicated with the 13-year-old girl on the social media application Snapchat. On July 30, 2021, Zelek drove to Iowa, picked up the girl outside of a movie theatre, and drove her to his home in Illinois, where he sexually abused her, the complaint states. Zelek allegedly used his cell phone to record part of the sexual encounter. Zelek then drove the victim back to Iowa, the complaint states.
If convicted on the count of producing child pornography, Zelek faces a mandatory minimum sentence of 15 years in federal prison and a maximum of 30 years. If convicted on the transportation count, Zelek faces a mandatory minimum sentence of ten years and a maximum of life.
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 calling 1-800-843-5678 or logging on to www.cybertipline.com.
Indiana Man Charged with Scheming to Straw Purchase Firearm Allegedly Used to Shoot Two Chicago Police Officers, One FatallyRead the Press Release
CHICAGO — The U.S. Attorney’s Office in Chicago today charged an Indiana man with federal firearm violations for allegedly conspiring to straw purchase a semi-automatic handgun that the charges allege was used to shoot two Chicago Police officers last weekend, including the fatal wounding of Officer Ella French.
JAMEL DANZY purchased the firearm at a federal firearms dealer in Hammond, Ind., on March 18, 2021, and falsely certified on the required forms that he was the actual buyer, according to a criminal complaint filed in U.S. District Court in Chicago. In reality, Danzy was a straw purchaser who bought the gun at the request of someone whom Danzy knew resided in Chicago, Ill., and was not lawfully allowed to purchase a firearm due to a felony criminal conviction, the complaint states. Danzy gave the firearm to the Illinois resident shortly after the purchase, the complaint states.
Officer French was shot and killed and another CPD officer was critically wounded Saturday night during a traffic stop of a vehicle on the South Side of Chicago. The handgun was used in the shooting, the complaint states. The Illinois resident to whom Danzy gave the gun was one of the vehicle’s occupants and was arrested by responding officers, the complaint states. At the time of his arrest, the Illinois resident was in possession of the handgun purchased by Danzy, according to the complaint.
Danzy, 29, of Hammond, Ind., is charged with conspiracy to violate federal firearm laws, including knowingly transferring and giving a firearm to an out-of-state resident, knowingly making a false written statement to acquire a firearm, and knowingly disposing of a firearm to a convicted felon. Danzy made an initial appearance this afternoon in federal court in Chicago and was ordered to remain detained in federal custody. U.S. Magistrate Judge Jeffrey T. Gilbert scheduled a detention hearing for Wednesday at 2:00 p.m.
“Straw purchasers and firearm traffickers enable violence with deadly consequences,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “Fighting violent crime is a top priority in our office, and we are committed to holding accountable those who engage in illicit firearm transactions.”
U.S. Attorney Lausch announced the charges along with Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and David Brown, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Prashant Kolluri.
“Tragedies like this happen when people straw purchase firearms on behalf of those who are prohibited from purchasing and possessing firearms themselves,” said ATF SAC de Tineo. “ATF remains committed to working with our law enforcement partners and the U.S. Attorney’s Office to investigate these firearms trafficking schemes and prosecute those responsible.”
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.
The federal conspiracy charge against Danzy is punishable by a maximum sentence of five years in federal prison. 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.
Law enforcement continues to investigate the murder of Officer French and the wounding of the other CPD officer.
Four Defendants Charged with Federal Drug or Firearm Violations in Probe Centered on North Suburbs of ChicagoRead the Press Release
CHICAGO — A joint federal and local criminal investigation in the far north suburbs of Chicago has resulted in federal drug or firearm charges against four individuals.
The alleged drug trafficking and illegal firearm possession occurred last winter in Waukegan and Beach Park, according to indictments unsealed this week in U.S. District Court in Chicago. According to the charges, ROBERT SPURLOCK, 36, of Beach Park, distributed cocaine and illegally possessed a loaded handgun with an obliterated serial number; KURT NASH, JR., 34, of Milwaukee, Wisc., distributed cocaine on two occasions; RAFAEL ALVAREZ-MURILLO, 27, of Waukegan, distributed methamphetamine and illegally possessed a handgun; and JASON NAJERA-PRADO, 31, of Waukegan, illegally possessed two handguns. Spurlock, Alvarez-Murillo, and Najera-Prado were previously convicted of felonies and were not lawfully allowed to possess firearms.
Spurlock, Nash, and Najera-Prado pleaded not guilty during arraignments Wednesday in federal court in Chicago. Arraignment for Alvarez-Murillo will be scheduled at a later date. Six other individuals were charged in state court as part of this investigation.
The federal indictments 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 John Idleburg, Lake County Sheriff. Assistant U.S. Attorneys Shawn McCarthy and Alejandro Ortega represent the government in the federal cases.
This 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 public is reminded that indictments 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.
Ten Chicago-Area Residents Charged in Bank Fraud Schemes Involving Counterfeit Postal Service Money OrdersRead the Press Release
CHICAGO — Ten Chicago-area residents have been indicted on federal fraud charges for allegedly scheming to cash counterfeit U.S. Postal Service money orders.
The defendants deposited the counterfeit USPS money orders into various bank accounts to which they had access and then quickly withdrew the funds before the banks learned of the fraudulent nature of the deposits, according to indictments returned July 28, 2021, in U.S. District Court in Chicago. The defendants had purchased or caused to be purchased the money orders from post offices in amounts less than $10, so that the orders could then be altered to higher amounts – typically between $800 and $1,000 – before the deposits, the charges allege.
Charged with bank fraud are NATHAN R. CHAVIS, 29, of Chicago, Ill.; MARVIN L. COLE, 29, of Chicago Heights, Ill.; REGINALD RUSSELL, 29, of Glenwood, Ill.; DARIUS D. GOODWIN, 26, of Country Club Hills, Ill.; VICTOR J. JOHNSON, 27, of Oak Forest, Ill.; LANCE BRANDON COLE, 27, of Richton Park, Ill.; MUNANG O. EKOI, 26, of Lisle, Ill.; SERNARD D. GILL, JR., 26, of Matteson, Ill.; ARMANI M. SPENCER-SPRATTLIN, 32, of Park Forest, Ill.; and ALEXANDER S. COCROFT, 28, of Country Club Hills, Ill.. Most of the defendants have made initial appearances in federal court in Chicago.
The indictments were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and William Hedrick, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service. The Elmhurst, Ill., Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorneys L. Heidi Manschreck and Ramon Villalpando.
According to the indictments, Chavis caused at least $158,610 in altered and counterfeit money orders to be deposited into third-party bank accounts; Marvin Cole and Russell were responsible for at least $132,593; Goodwin, Johnson, Lance Cole, Ekoi, Gill, and Spencer-Sprattlin were responsible for at least $895,000; and Cocroft was responsible for at least $207,985.
Bank fraud is punishable by up to 30 years in federal prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory United States Sentencing Guidelines.
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.
Man Sentenced to a Year and a Half in Federal Prison for Illegally Possessing Loaded Gun During Looting in Downtown ChicagoRead the Press Release
CHICAGO — A man who illegally possessed a loaded handgun during widespread looting in downtown Chicago last summer was sentenced today to 18 months in federal prison.
Chicago Police officers attempted to detain JAVONTE T. WILLIAMS for suspected looting near North State Street and East Lake Street in downtown Chicago at 5:00 a.m. on Aug. 10, 2020. As officers pursued and arrested Williams, a semi-automatic handgun fell from his body to the ground. The gun was loaded with multiple rounds of ammunition in the magazine and one in the chamber.
During the investigation, law enforcement uncovered multiple social media postings by Williams in which he boasted about looting in Chicago in the summer of 2020.
Williams, 28, of Chicago, pleaded guilty earlier this year to illegal possession of a firearm by a convicted felon. He was prohibited from possessing a gun after previously being convicted of a felony firearm offense in the Circuit Court of Cook County, for which he was sentenced to probation.
U.S. District Judge Virginia M. Kendall imposed the 18-month federal sentence 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. Valuable assistance was provided by the Cook County State’s Attorney’s Office in bringing the charge.
“During a night of complete lawlessness in the city of Chicago, the defendant put himself at ground zero and endangered the lives of law enforcement, the general public, and himself by carrying a loaded firearm in his waistband,” Assistant U.S. Attorney Christopher V. Parente argued in the government’s sentencing memorandum. “The illegal possession of a firearm by a felon is always a dangerous and serious offense.”
Williams’s sentencing was the second sentencing this week in federal court for illegal firearm possession during looting incidents in downtown Chicago last summer. Judge Kendall on Tuesday sentenced BRANDON PEGUES, of Riverdale, to a year in federal prison for illegally possessing a semiautomatic handgun on the Near South Side on May 31, 2020.
Two Suburban Chicago Physicians Indicted on Narcotics and Health Care Fraud ChargesRead the Press Release
CHICAGO — Two suburban Chicago physicians have been indicted on federal criminal charges for allegedly prescribing opioids to individuals who lacked a legitimate medical need for the drugs.
STANLEY DAVID DEMOREST managed Demorest Consultants LLC, a medical practice in Melrose Park, Ill. NICHOLAS RECCHIA was employed there as a physician. From 2015 to 2020, Demorest and Recchia agreed to dispense hydrocodone, oxycodone, fentanyl, and other controlled substances to various individuals who visited Demorest Consultants but received no meaningful physical examination or medical tests, and whom Demorest and Recchia knew had no legitimate medical need for the drugs, according to an indictment returned Monday in U.S. District Court in Chicago. Demorest, who in 2015 voluntarily surrendered his DEA Registration Number and lost his ability to lawfully prescribe controlled substances, used Recchia’s name and DEA Registration Number to issue prescriptions for controlled substances to patients, the charges allege.
Demorest and Recchia also caused pharmacies to submit numerous claims to Medicare and Medicaid seeking payment for the improper prescriptions, the indictment states.
The indictment charges Demorest, 65, of Bloomingdale, Ill., and Recchia, 62, of River Grove, Ill., with conspiracy to dispense controlled substances outside the usual course of professional practice and without a legitimate medical purpose. The pair also face individual counts of health care fraud and unlawful dispensing of controlled substances. Arraignments in federal court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert J. Bell, Special Agent-in-Charge of the Chicago Division of the DEA; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Lamont Pugh III, Special Agent-in-Charge of the Chicago Division of the U.S. Department of Health and Human Services, Office of Inspector General; and Irene Lindow, Special Agent-in-Charge of the Chicago Division of the U.S. Department of Labor, Office of Inspector General. The government is represented by Assistant U.S. Attorneys Kaitlin G. Klamann and Valerie R. Raedy.
The charges were brought by the U.S. Attorney’s Office’s Opioid Task Force, which was formed in November 2019 for the purpose of combatting the growing number of unlawful distributions of controlled substances fueling the nation’s opioid crisis.
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.
Man Arrested on Federal Arson Charge for Allegedly Setting Fire to Chicago BuildingRead the Press Release
CHICAGO — A man has been arrested on a federal arson charge for allegedly setting fire to a building in Chicago last year.
An indictment returned in U.S. District Court in Chicago accuses JOSE VALDOVINOS, 32, of Cicero, Ill., of maliciously damaging and destroying a building at 4000 West 59th Street in Chicago on June 1, 2020.
Valdovinos was arrested Monday. A detention hearing in federal court is set for Wednesday at 2:00 p.m. before U.S. Magistrate Judge Gabriel A. Fuentes.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives in Chicago; and David Brown, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Kavitha J. Babu.
“Anyone committing crimes during the course of civil unrest should know that federal law enforcement will use every available tool to hold them accountable,” said U.S. Attorney Lausch. “The U.S. Attorney’s Office will continue to work with ATF, CPD, and our other federal, state, and local partners to apprehend and charge arsonists and others engaging in violent crime.”
“ATF Special Agents will continue to work with our law enforcement partners to follow every lead related to destructive behavior during civil unrest,” said ATF SAC de Tineo. “I appreciate the commitment from our colleagues and the U.S. Attorney in charging this case.”
The arson charge is punishable by a minimum sentence of five years in federal prison and a maximum of 20 years. The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Accountant Sentenced to More Than Eight Years in Prison for Misappropriating $1.1 Million from Employers and LendersRead the Press Release
CHICAGO — A suburban Chicago accountant has been sentenced to more than eight years in federal prison for misappropriating more than $1.1 million from four employers and three lending institutions.
PAUL ERIC COLLINS, 55, of Naperville, Ill., pleaded guilty last year to wire fraud. U.S. District Judge Elaine E. Bucklo imposed a 98-month prison sentence Wednesday after a hearing in federal court in Chicago. Judge Bucklo also ordered Collins to pay $1,159,414 in restitution to the victims.
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.
“Collins stole funds from his employers, even though he knew that they desperately needed those funds to operate their businesses,” Assistant U.S. Attorney Jacqueline Stern argued in the government’s sentencing memorandum. “Collins stole from the victims for his own wholly selfish ends.”
Collins was an accountant who handled the finances for four employers from 2013 to 2018. During that time, Collins stole more than $1 million from the companies by writing corporate checks to himself, his wife, and phony companies he created. Collins also fraudulently withdrew money from ATMs and charged personal expenses on company credit cards. He attempted to conceal the thefts by making Ponzi-type payments to certain victims.
Collins also stole more than $70,000 from three lenders by obtaining loans based on false representations. Collins fraudulently used the identity of one of his employer’s owners and falsely represented that the owner personally guaranteed the loans. When Collins failed to repay the full amount of the loans and the lenders sought repayment, the owner was left having to dispute the fraudulent guarantee.
U.S. Attorney’s Office in Chicago to Participate in Cross-Jurisdictional Firearms Trafficking Strike ForceRead the Press Release
WASHINGTON - The U.S. Department of Justice today launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region, and Washington, D.C.
Each strike force region will be led by designated United States Attorneys, who will collaborate with the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and with federal, state, and local law enforcement partners within their own jurisdiction (where firearms are used in crimes) as well as law enforcement partners in areas where illegally trafficked guns originate. These officials will use the latest data, evidence, and intelligence from crime scenes to identify patterns, leads, and potential suspects in violent gun crimes.
“All too often, guns found at crime scenes come from hundreds or even thousands of miles away," said Attorney General Merrick B. Garland. "We are redoubling our efforts as ATF works with law enforcement to track the movement of illegal firearms used in violent crimes. These strike forces enable sustained coordination across multiple jurisdictions to help disrupt the worst gun trafficking corridors. The Department of Justice will use all of its tools – enforcement, prevention, intervention, and investment – to help ensure the safety of our communities – the department’s highest priority.”
“Straw purchasers and unlicensed gun sellers enable violence,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “The cross-jurisdictional strike force will increase collaboration with our federal, state, and local law enforcement partners, and enhance our longstanding efforts to hold accountable individuals or groups who illegally traffic firearms into Chicago.”
According to gun trace data, a significant number of firearms recovered in Chicago originate outside Chicago and are illegally trafficked into the city. The new strike force, led by U.S. Attorney Lausch, will help ensure sustained and focused coordination between law enforcement and prosecutors in Chicago with counterparts in the locations where many of the firearms originate.
The strike forces represent one important, concrete step in implementing the Department of Justice’s Comprehensive Violent Crime Reduction Strategy, which was announced on May 26, 2021. The comprehensive strategy supports local communities in preventing, investigating, and prosecuting gun violence and other violent crime - and requires U.S. Attorneys’ offices to work with federal, state, local and tribal law enforcement, as well as the communities they serve, to address the most significant drivers of violence in their districts. In guidance to federal agents and prosecutors as part of that comprehensive strategy, the Deputy Attorney General made clear that firearms traffickers providing weapons to violent offenders are an enforcement priority across the country.
Chicago Man Sentenced to More Than a Year in Prison for Participating in Illegal Sports Gambling BusinessRead the Press Release
CHICAGO — A Chicago man was sentenced today to more than a year in federal prison for participating in an illegal gambling business that involved wagers on professional and collegiate sporting events.
NICHOLAS STELLA, 43, pleaded guilty earlier this year to a charge of conspiring to conduct an illegal gambling business. U.S. District Judge Virginia M. Kendall today sentenced Stella to 15 months in federal prison.
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 Donald "Trey" Eakins, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government was represented by Assistant U.S. Attorneys Terry Kinney and Ankur Srivastava.
The FBI’s Integrity in Sport and Gaming Initiative (ISG) is designed to tackle illegal sports gambling and combat threats of influence from criminal enterprises.
Stella stated in a plea agreement that from 2016 to 2019 he conspired with bookmaker VINCENT DELGIUDICE, also known as “Uncle Mick,” and others to accept wagers on the outcome of professional and collegiate sporting events. Stella admitted in the plea agreement that he recruited gamblers for Delgiudice’s operation and regularly met with them to pay out winnings or collect on losses. During the conspiracy, Stella communicated with Delgiudice via text messaging and phone calls, the plea agreement states. In a text exchange in December 2018, Stella stated to Delgiudice, “Between my two big losers in Minnesota, they’ve dumped 73k,” according to the plea agreement. In another text exchange cited in the plea agreement, Stella asked DelGiudice shortly before the 2019 Super Bowl to contact the gamblers directly in order to “settle up” after the game.
Delgiudice pleaded guilty earlier this year to a money laundering charge and is awaiting sentencing.
Chicago Man Arraigned on Federal Carjacking and Firearm ChargesRead the Press Release
CHICAGO — A Chicago man who allegedly carjacked a vehicle at gunpoint on the city’s West Side and fired a handgun while attempting to carjack another vehicle has been arraigned in federal court.
KIAR EVANS, 22, was indicted earlier this month by a federal grand jury on one count of carjacking, one count of attempted carjacking, one count of discharging a firearm during a crime of violence, one count of brandishing a firearm during a crime of violence, and one count of illegal possession of a firearm by a previously convicted felon. Evans was arraigned in federal court on July 16, 2021, and pleaded not guilty to the charges. U.S. District Judge Martha M. Pacold ordered the parties to file a joint status report on Sept. 7, 2021.
The indictment and arraignment 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; and David Brown, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Caitlin Walgamuth.
According to the indictment and a criminal complaint previously filed in the case, the carjacking and attempted carjacking occurred within minutes of each other on the afternoon of May 20, 2021. In the attempted carjacking, Evans approached a Chevrolet Impala near the intersection of Independence Boulevard and Congress Parkway in Chicago and fired two shots into the passenger-side window while attempting to get inside, the charges allege. The driver of the Impala was able to drive away from the scene.
Evans then approached the driver-side window of a Nissan Altima, pointed a firearm at the driver and demanded that the driver exit the vehicle, the charges allege. The victim complied and Evans drove off in the Nissan, the charges allege. A short time later, Evans was allegedly driving the stolen vehicle when he was involved in a multi-vehicle crash at the intersection of Harrison Street and Ogden Avenue in Chicago. Chicago Police officers arrested Evans and discovered a loaded semi-automatic handgun in the Nissan, the charges allege.
As a previously convicted felon, Evans was not lawfully allowed to possess a firearm.
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 firearm discharge count is punishable by a mandatory minimum sentence of ten years in federal prison and a maximum of life, and the firearm brandishing count is punishable by a mandatory minimum of seven years and a maximum of life. The carjacking and attempted carjacking counts are each punishable by a maximum sentence of 15 years, while the illegal firearm possession charge carries a maximum sentence of ten years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Former Chicago Public Schools Principal Charged in Scheme to Fraudulently Obtain Overtime PayRead the Press Release
CHICAGO — A federal grand jury has indicted a former Chicago Public Schools principal on fraud charges for allegedly scheming to fraudulently obtain overtime pay.
A ten-count indictment returned Tuesday in U.S. District Court in Chicago alleges that SARAH JACKSON ABEDELAL carried out the fraud scheme from 2012 to 2019 while serving as Principal of Brennemann Elementary School on the North Side of Chicago. Abedelal told certain school employees that she would authorize overtime pay for hours the employees would not be required to work, and she directed them to then deliver the proceeds of the unearned overtime to Abedelal or another individual, the indictment states. Abedelal told the employees who received the overtime that the money would be used to pay legitimate school expenses incurred by Brennemann Elementary, when, in fact, Abedelal intended to convert the money to her own personal use, the indictment states. The charges allege that Abedelal fraudulently obtained at least $200,000 in CPS money through the scheme.
Abedelal, 57, of Chicago, is charged with ten counts of wire fraud. She was arrested this morning and is scheduled to make an initial appearance in federal court today at 2:30 p.m. before U.S. Magistrate Judge Heather K. McShain.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Will Fletcher, Inspector General of the Chicago Board of Education, Office of Inspector General. The government is represented by Assistant U.S. Attorneys Terry M. Kinney and Patrick Mott.
According to the indictment, Abedelal directed the school employees to withdraw the unearned overtime money in cash on the day the paychecks were deposited into their bank accounts. Abedelal would then meet with the employees individually in her office or classrooms to collect the cash from them, the indictment states. To conceal and prevent detection of the scheme, Abedelal used the fraudulently obtained money to purchase money orders at a currency exchange and then pay her personal expenses, including the mortgage on her home, 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.
Federal Indictment Accuses Chicago Man of Producing Child PornographyRead the Press Release
CHICAGO — A Chicago man who allegedly used and attempted to use several minors to engage in sexually explicit conduct and surreptitiously recorded it has been indicted on federal child pornography charges.
MICHAEL PORTER, 55, is charged with seven counts of production and attempted production of child pornography, two counts of receipt of child pornography, and one count of possession of electronic devices containing child pornography, according to an indictment returned Tuesday in U.S. District Court in Chicago. Arraignment is set for July 22, 2021, at 11:00 a.m., before U.S. Magistrate Judge Jeffrey T. Gilbert.
According to the charges, Porter produced the child pornography after using, persuading, inducing, and enticing several minors to engage in sexually explicit conduct. He also possessed four hard drives, a cell phone, and a laptop computer that contained pornographic images of a prepubescent minor and a minor who had not attained 12 years of age, the indictment states.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Kristen Totten.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each production count is punishable by a minimum sentence of 15 years in federal prison and a maximum of 30 years. Each receipt count is punishable by a minimum sentence of five years and a maximum of 20 years. The possession count carries a maximum sentence of ten years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation by Michael Porter, you are encouraged to contact the FBI Chicago Field Office by calling 1-312-421-6700.
Woman Arrested on Federal Drug Charge After Allegedly Selling Cocaine While on Vacation in ChicagoRead the Press Release
CHICAGO — A woman has been arrested on a federal drug charge after allegedly selling two kilograms of cocaine while vacationing in Chicago this week.
MARINA RIVERA, 33, sold the cocaine Wednesday evening in the 3200 block of South Komensky Avenue in the Little Village neighborhood of Chicago, according to a criminal complaint filed in U.S. District Court in Chicago. Unbeknownst to Rivera, the buyer was cooperating with law enforcement, who conducted surveillance on the transaction, the complaint states. Rivera was arrested shortly thereafter.
Rivera was staying in a nearby residence this week while on vacation in Chicago from Mexico, the complaint states. Law enforcement searched the residence and discovered approximately eight kilograms of cocaine inside a suitcase in the bedroom where Rivera was staying, the complaint states.
The complaint charges Rivera with one count of possession of a controlled substance with intent to distribute. She made an initial appearance in federal court Thursday and was ordered to remain detained in federal custody. A detention hearing is set for July 14, 2021, at 1:30 p.m., before U.S. Magistrate Judge Heather K. McShain.
The arrest and complaint were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Division of the U.S. Drug Enforcement Administration. The government is represented by Assistant U.S. Attorneys Andrew J. Dixon and Megan DeMarco.
The drug charge is punishable by a maximum sentence of life in federal prison. 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.
Man Charged in Connection with Shooting of Federal Agents in ChicagoRead the Press Release
CHICAGO — A criminal complaint filed today in federal court accuses a man of forcibly assaulting two federal agents and a task force officer in Chicago yesterday morning.
EUGENE MCLAURIN, 28, of Chicago, is charged with one count of using a dangerous and deadly weapon to assault a special agent from the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. The charge is punishable by a maximum sentence of 20 years in federal prison.
McLaurin is scheduled to make an initial appearance in federal court today at 1:30 p.m. before U.S. Magistrate Judge Heather K. McShain. The hearing will be conducted telephonically.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of ATF; and David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Illinois State Police. The government is represented by Assistant U.S. Attorneys Elizabeth Pozolo and Jared Jodrey.
According to the complaint, two ATF agents and an ATF Task Force officer were driving in an unmarked law enforcement vehicle early Wednesday morning while participating in a federal investigation on the South Side of Chicago. The officers noticed that a white Chevrolet Malibu sedan was following their vehicle, and they took note of the license plate number, the complaint states. The driver of the Malibu pulled alongside the officers’ vehicle, and the officers observed the driver’s side window roll down, the complaint states. A man later identified as McLaurin began shooting at the officers’ vehicle, wounding all three officers, the complaint states.
After the shooting, law enforcement located the Malibu parked on a street in Chicago, the complaint states. McLaurin was taken into law enforcement custody later Wednesday morning.
The investigation into the shooting remains ongoing.
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 convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Federal Indictment Accuses Three Men of Unlawfully Dealing or Possessing Firearms in ChicagoRead the Press Release
CHICAGO — Three men have been charged in a federal indictment with unlawfully dealing or possessing firearms in Chicago.
JOHNATHAN BURGOS, 28, of Chicago, illegally dealt firearms in Chicago from January to March of last year, according to an indictment returned in U.S. District Court in Chicago. Burgos also illegally possessed handguns and a semiautomatic rifle on seven occasions last year and this year, the indictment states. As a previously convicted felon, Burgos was not lawfully allowed to possess the firearms.
Two other convicted felons – ALEJANDRO DAVIS, 29, of Chicago, and DAMIAN REYES, 23, of Chicago – are also charged in the indictment with illegally possessing firearms in the city.
All three defendants were arrested Wednesday and have made initial appearances 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; and David Brown, Superintendent of the Chicago Police Department. Assistant U.S. Attorney Paul Mower represents the government.
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.
Illegal possession of a firearm by a convicted felon is punishable by a maximum sentence of ten years in federal prison, while dealing firearms without a license is punishable by up to five years. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Federal Gun Trafficking and Drug Dealing Charges Filed Against Chicago ManRead the Press Release
CHICAGO — A Chicago man has been charged in federal court with trafficking a loaded submachine gun and dealing cocaine in the city.
JOSUE CANALES, 28, knowingly transferred a loaded Israeli Military Industries Model submachine gun to another individual on Dec. 15, 2020, according to an indictment returned in U.S. District Court in Chicago. The indictment also accuses Canales of distributing cocaine in Chicago on four occasions in 2019.
Canales was arrested Wednesday and has made an initial appearance 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; and David Brown, Superintendent of the Chicago Police Department. Assistant U.S. Attorney Paul Mower represents the government.
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.
One of the four drug counts against Canales carries a mandatory minimum sentence of five years in federal prison and a maximum of 40 years. The three other drug counts are each punishable by a maximum sentence of 20 years, while the firearm count carries a maximum sentence of ten years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.