Northern District of Illinois
Press releases recorded for this federal judicial district.
City of Chicago Alderman and Her Chief of Staff Indicted on Federal Bribery ChargesRead the Press Release
CHICAGO — A federal grand jury today indicted City of Chicago Alderman CARRIE M. AUSTIN and her Chief of Staff on bribery offenses for allegedly conspiring to receive home improvements from construction contractors seeking city assistance for a development project in Austin’s Far South Side ward.
Austin, 72, of Chicago, is charged with one count of conspiring to use interstate facilities to promote bribery, two counts of using interstate facilities to promote bribery, and one count of willfully making materially false statements to the FBI. Austin’s Chief of Staff, CHESTER WILSON JR., 55, of Chicago, is charged with one count of conspiring to use interstate facilities to promote bribery, two counts of using interstate facilities to promote bribery, and one count of theft of government funds.
The indictment was returned today in U.S. District Court in Chicago. Arraignments have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Anthony Mohatt, Special Agent-in-Charge of the U.S. Department of Agriculture, Office of Inspector General; Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Joseph M. Ferguson, Inspector General for the City of Chicago. The government is represented by Assistant U.S. Attorneys Andrianna Kastanek and Katie M. Durick.
According to the indictment, starting in 2014 a construction company planned to construct a residential development in Austin’s ward at a cost of approximately $49.6 million. Under an agreement with the city, the company was responsible for making infrastructure improvements within the project, including construction of new interior streets, street lighting, landscaping, and sidewalk improvements, and was eligible to receive more than $10 million in tax increment financing and other payments from the city.
The indictment alleges that, beginning in 2016, Austin and Wilson were provided with personal benefits by the owner of the construction company and other contractors in an effort to influence them in their official capacities. The benefits included home improvements, furniture, and appliances for Austin’s residence, and home improvement materials and services for rental properties owned by Wilson, the indictment states.
According to the charges, in June 2017 a contractor on the development project paid an invoice for $5,250 to cover a portion of the purchase price of kitchen cabinets at Austin’s residence by falsely representing that the cabinets were for an address within the development. In addition, in July 2017 Austin accepted from a contractor on the project an offer to pay for two “brand new” and “expensive” sump pumps, and to have the contractor’s family member buy and install a new dehumidifier, the indictment states. Wilson also solicited benefits from a contractor on the project for his rental property, including services for “heating and air,” the charges allege. In October 2017 the contractor told Wilson that he would pay for a portion of a new HVAC system at Wilson’s property because, “you help me a lot, and I’ll help you,” the indictment states.
The indictment alleges that Austin and Wilson authorized the expenditure of aldermanic menu funds to benefit the construction company for infrastructure within the development, and that on multiple occasions in 2017 and 2018 Austin coordinated with the construction company owner to seek the city’s release of TIF and other payments.
The theft charge against Wilson accuses him of engaging in a separate scheme to purchase Supplemental Nutrition Assistance Program (SNAP) benefits at a discount. Wilson, who was not eligible for SNAP benefits due to his city of Chicago salary, allegedly obtained a card containing SNAP benefits by paying cash to the recipient in an amount below the face value of the card, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The conspiracy, bribery, and false statement counts are each punishable by up to five years in federal prison, while the theft charge is punishable by up to one year. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Two Men Charged with Conspiring to Steal Guns from Suburban Chicago Firearms DealerRead the Press Release
CHICAGO — Two men have been charged in federal court with conspiring to steal a dozen handguns from a suburban Chicago firearms dealer.
RONEAL NIGHTENGALE and ERIC ROWE conspired to steal the guns from Shoot Point Blank, a firearms dealer and shooting range in Naperville, Ill., on June 1, 2020, according to an indictment returned in U.S. District Court in Chicago. The indictment alleges that Nightengale drove Rowe and an unindicted co-conspirator to Shoot Point Blank around 9:00 p.m., and that Rowe and the co-conspirator burglarized the facility and stole the guns.
In addition to the conspiracy charge, the indictment charges Nightengale and Rowe with stealing the firearms, possessing the stolen firearms, and illegally possessing the firearms as previously convicted felons.
Nightengale, 34, of Glendale Heights, Ill., was arrested earlier this month in Arizona. He pleaded not guilty Tuesday during his arraignment before U.S. Magistrate Judge Sunil R. Harjani in Chicago. A detention hearing is set for Thursday at 9:15 a.m.
Rowe, 36, of Bellwood, Ill., is not in custody and a warrant has been issued for his arrest.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Robert Marshall, Chief of the Naperville Police Department. Substantial assistance was provided by the DuPage County Sheriff’s Office. The government is represented by Assistant U.S. Attorney Jared C. Jodrey.
Each count of stealing firearms from a licensed firearms dealer, illegally possessing stolen firearms, and illegally possessing firearms as a convicted felon carries a maximum sentence of ten years in federal prison, while the conspiracy charge is punishable by up to five years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines. The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Chicago Man Sentenced to More Than 15 Years in Prison for Sharing Child PornographyRead the Press Release
CHICAGO — A Chicago man has been sentenced to more than 15 years in federal prison for sharing child pornography in an online chat room.
BENNY L. BUTLER, 36, possessed more than 2,800 videos and more than 7,600 images of child pornography on multiple electronic devices. Butler in 2017 shared several videos and images with users of Chatstep, an anonymous online chat room service.
Butler pleaded guilty earlier this year to one count of transportation of child pornography. U.S. District Judge Andrea R. Wood on Tuesday sentenced Butler to 15 years and eight months in federal prison, to be followed by 20 years of court-supervised release. Judge Wood also ordered Butler to pay $47,000 in restitution to the known victims depicted in the child pornography he shared.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations. The U.S. Coast Guard Investigative Service provided valuable assistance.
“It is impossible to overstate the seriousness of defendant’s conduct and the need for just punishment,” Assistant U.S. Attorney Ashley A. Chung argued in the government’s sentencing memorandum. “Defendant not only possessed a staggering amount of child pornography, but also distributed, downloaded, and traded child pornography with others online.”
Former City of Rochelle Employee Sentenced to Two Years in Prison for Fraudulently Obtaining $150,000 from Non-Profit Business AssociationRead the Press Release
ROCKFORD — A former employee of the city of Rochelle was sentenced today in federal court before U.S. District Judge Iain D. Johnston for wire fraud.
SCOTT KOTESKI, 58, of Rochelle, was sentenced to two years in federal prison and ordered to pay restitution in the amount of $150,332.17.
Koteski pleaded guilty to the wire fraud charge on March 9, 2021. According to a plea agreement, starting in 2011, Koteski was selected to sit on the board of directors of a non-profit business association and serve as the association's treasurer. As treasurer, Koteski handled the invoicing and billing of the member municipalities, and as of February 2012, Koteski had signatory authority on the association’s bank account. From September 2012 through April 2018, Koteski fraudulently obtained from the association at least $150,000, which he used for his own benefit without the association’s knowledge or consent. Koteski wrote numerous checks to himself from the association’s bank account, and he deposited the checks into his personal bank account for his personal benefit. Koteski concealed his acts by writing false information on the memo line of the checks to make it appear they were for reimbursement of personal monies Koteski spent for the association when, in fact, Koteski was not entitled to reimbursement.
Additionally, according to the plea agreement, in 2018 Koteski made online payments from the association’s bank account to pay for a personal credit card and a personal loan.
The sentencing 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 Illinois State Police assisted in the investigation. The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.
Man Charged in Federal Court with Carjacking and Murdering Chicago Rideshare DriverRead the Press Release
CHICAGO — A man has been charged in federal court with carjacking and murdering a rideshare driver in Chicago earlier this year.
EDMOND HARRIS, 18, of Chicago, carjacked a Lexus GS sedan from Javier Ramos on March 23, 2021, according to an indictment returned Thursday in U.S. District Court in Chicago. During the carjacking, Harris brandished a firearm and fatally shot Ramos, the indictment states.
The indictment charges Harris with one count of carjacking, one count of discharging a firearm during a crime of violence, and one count of causing death through the use of a firearm during a crime of violence. The charges in the indictment carry a mandatory minimum sentence of ten years in federal prison and a maximum sentence of death.
Harris was taken into federal custody this morning. An initial court appearance is scheduled for today at 3:15 p.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; Kristen deTineo, 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 Michelle Kramer.
“Senseless acts of violence like the ones charged in this indictment have no place in our society,” said U.S. Attorney Lausch. “The charges announced today are the direct result of a strong partnership between federal, state, and local law enforcement in Chicago. We will not hesitate to prosecute violent carjackers to the fullest extent of federal law.”
“Carjacking is a threat to the safety of the community,” said ATF SAC deTineo. “I pledge the continued full support of the men and women of the Chicago Field Division to work collaboratively with our law enforcement partners to investigate these crimes.”
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.
Owner of Chicago-Area Restaurant Franchises Sentenced to More Than a Year in Prison for Underreporting $2.5 Million in TaxesRead the Press Release
CHICAGO — The owner of five Chicago-area Pepe’s Mexican Restaurant franchises has been sentenced to more than a year in federal prison for filing false corporate tax returns that underreported $2.5 million in gross receipts and sales.
JUAN C. HURTADO, 45, of Joliet, pleaded guilty earlier this year to one count of making a false statement in a tax return. U.S. District Judge John F. Kness on Wednesday sentenced Hurtado to 15 months in federal prison and fined him $45,000.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.
“Defendant engaged in this conduct solely out of greed,” Assistant U.S. Attorney Rick D. Young argued in the government’s sentencing memorandum. “He wanted more money for himself at the expense of other taxpayers who pay their fair share of taxes.”
Hurtado owned Pepe’s franchises in Chicago, Tinley Park, Hickory Hills, Matteson, and Chicago Heights. Hurtado admitted in a plea agreement that from 2016 to 2018 he caused the filing of eleven materially false corporate tax returns with the IRS, as well as materially false sales and income tax returns with the State of Illinois, that underreported the gross receipts and sales of his restaurants by a combined total of approximately $2.5 million. Hurtado further admitted that he created false sales reports and gave them to his accountants, knowing the reports would be used as a basis for underreporting the receipts and sales.
Rockford Man Sentenced to Two and a Half Years in Prison for Threatening to Kill Deputy U.S. MarshalRead the Press Release
ROCKFORD — A Rockford man has been sentenced to two and a half years in federal prison for threatening to kill a deputy U.S. Marshal.
GIANNI GASPARE ANTHONY CARDENAS, 25, pleaded guilty earlier this year to a charge of transmitting a threat in interstate commerce. U.S. District Judge John J. Tharp, Jr., imposed the 30-month sentence Tuesday after a hearing in federal court in Rockford.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government was represented by Assistant U.S. Attorney Talia Bucci.
According to a written plea agreement, the deputy U.S. Marshal in February 2018 interviewed Cardenas at a county jail regarding the whereabouts of a federal fugitive. Cardenas told the deputy U.S. Marshal during the interview that Cardenas would “kick [the deputy's] [expletive]” when Cardenas got out of jail. The plea agreement stated further that, on or about Oct. 20, 2019, Cardenas sent two threatening emails to the deputy U.S. Marshal. The first email stated, among other things, “Hopefully we can meet again this time with me not being in handcuffs." The second email stated, “I’ll kill you.”
Federal Grand Jury Indicts Husband and Wife in Alleged Mortgage Fraud SchemeRead the Press Release
CHICAGO — A man and his wife have been charged in federal court in Chicago with participating in a mortgage fraud scheme that defrauded financial institutions out of at least $2.5 million.
MARCO LURIGIO, also known as “Demetrio Cardone,” and SANDY LURIGIO, also known as “Janette Chavez,” owned several Illinois-based companies, including S&G Technologies Inc., O.C. Management Group Inc., Riverview Financial Inc., and Toro Management, Inc. According to the indictment, the Lurigios recruited buyers to fraudulently obtain mortgage loans for properties on Chicago’s South Side by making and causing to be made materially false representations in documents submitted to financial institutions. The false representations included documents and statements regarding, among other things, the buyers’ employment, income, assets, source of down payment, and intention to occupy the property as a primary residence, the indictment states. In some instances, the Lurigios fraudulently claimed to lenders that the buyers were employed by one of the Lurigios’ companies, even though they knew that was untrue, the indictment states. The alleged fraud scheme lasted from 2011 to 2014, the indictment states.
The indictment was returned Tuesday in U.S. District Court in Chicago. It charges Marco Lurigio, 45, and Sandy Lurigio, 39, both of Downers Grove, Ill., with eight counts of financial institution fraud. Arraignments have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Michael Powell, Special Agent-in-Charge of the Chicago office of the U.S. Department of Housing and Urban Development, Office of Inspector General. The government is represented by Assistant U.S. Attorneys Jason Yonan and Alejandro Ortega.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of financial institution fraud is punishable by up to 30 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Five Defendants Charged in Conspiracy to Launder Illicit Drug ProceedsRead the Press Release
CHICAGO — An indictment unsealed today in federal court charges five defendants with conspiring to launder illicit drug proceeds in Chicago for more than a decade.
Charged in the money laundering conspiracy are VIVIANNA LOPEZ, also known as “Mia Flores,” 40; VALERIE GAYTAN, also known as “Olivia Flores,” 45; ARMANDO FLORES, 52, of Round Rock, Texas; LAURA LOPEZ, 58, of Chicago, Ill.; and BIANCA FINNIGAN, 32, of Sycamore, Ill.
The indictment was returned June 9, 2021, in U.S. District Court in Chicago, and ordered unsealed today. Initial court appearances for Laura Lopez and Finnigan are scheduled to occur telephonically today at 3:00 p.m. before U.S. Magistrate Judge Jeffrey T. Gilbert in Chicago. Vivianna Lopez, Gaytan, and Armando Flores were arrested today outside of the Northern District of Illinois. Their initial court appearances in other federal district courts will be held at times to be determined.
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 Field Division of the U.S. Drug Enforcement Administration; Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; 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. Attorneys Andrew C. Erskine and Erika L. Csicsila.
According to the indictment, the defendants laundered drug trafficking proceeds generated by the husbands of Vivianna Lopez and Gaytan. The husbands surrendered to federal authorities in December 2008 and were incarcerated by the U.S. Bureau of Prisons, the indictment states. For the next 12 years, the defendants maintained portions of the drug proceeds at multiple locations, including Laura Lopez’s residence in Chicago and Armando Flores’s residence in Texas, and used the money for the benefit of themselves, the incarcerated husbands, and others, the indictment states. The conspirators allegedly laundered the money through the use of currency exchanges, credit cards, money orders, gift cards, U.S. mail deliveries, and other means.
The charges allege that the money was spent on various items, including more than $165,000 in private school tuition for children of Vivianna Lopez and Gaytan, more than $99,000 in international and domestic travel by Vivianna Lopez and Gaytan, more than $80,000 for Vivianna Lopez’s residential rent, and approximately $11,000 in child support for a child of one of the incarcerated husbands.
The indictment seeks forfeiture from Vivianna Lopez and Gaytan in the amount of $504,858.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Man Pleads Guilty to Using Explosive Device in Attempt to Damage Suburban Chicago RestaurantRead the Press Release
CHICAGO — A man has pleaded guilty to a federal criminal charge for using an explosive device in an attempt to damage a suburban Chicago restaurant last year.
On June 1, 2021, DIEGO VARGAS threw a lit explosive device through the window of Egg Harbor Cafe in Naperville, Ill., resulting in two explosions. Vargas, 26, of Aurora, pleaded guilty Thursday to one count of maliciously attempting to damage and destroy a building by means of an explosive device. The charge is punishable by a minimum sentence of five years in federal prison and a maximum of 20 years. U.S. District Judge Elaine E. Bucklo set sentencing for Sept. 2, 2021.
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 Naperville Police Department and Aurora Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorneys Barry Jonas and Kate McClelland.
In addition to the restaurant incident, Vargas admitted in a plea agreement that a night earlier he tried to steal cash from an ATM in Aurora. Vargas admitted that he struck the ATM with a baseball bat and a metal pole from a street sign to try and pry it open. The ATM, located in the drive-through area of a First Midwest Bank branch in the first block of South Broadway, held more than $50,000 at the time of the attempted theft.
Chicago Man Sentenced to 30 Years in Prison for Kidnapping and Assaulting Women He Met OnlineRead the Press Release
CHICAGO — A Chicago man was sentenced today to 30 years in federal prison for kidnapping and assaulting three women he met online.
KEITH DEWITT DAVIS, 31, assaulted the women in vacant buildings in Calumet City, Ill., in the summer of 2016. Davis met the women online and used a pretext of engaging in consensual, commercial sex acts to lure them to the vacant buildings. Once there, he physically assaulted each of the women and raped two of them. Davis displayed a handgun and pointed it at one of the victims, and he displayed a wrench or pipe in the two other incidents.
Davis pleaded guilty in 2019 to three counts of kidnapping for sexual gratification. U.S. District Judge Harry D. Leinenweber imposed the sentence after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The case was investigated by the FBI and the Will County Safe Streets Task Force. Substantial assistance was provided by the Calumet City Police Department, Hazel Crest Police Department, Midlothian Police Department, South Bend, Ind., Police Department, and the St. Joseph County, Ind., Prosecutor’s Office.
“Defendant’s crime was vicious,” Assistant U.S. Attorney Abigail L. Peluso argued in the government’s sentencing memorandum. “Defendant showed a complete disregard for human life and respect for a person’s dignity.”
U.S. Attorney’s Office Provides Update on Federal Prosecutions and Ongoing Strategies to Combat Violent Crime in ChicagoRead the Press Release
CHICAGO — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today provided an update on federal prosecutions and strategies to combat violent crime in Chicago and the surrounding area.
The centerpiece of the Department of Justice’s violent crime reduction efforts continues to be Project Safe Neighborhoods (PSN). PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
“The number of violent crimes in Chicago remains stubbornly high, including homicides, shootings, and carjackings, and we have seen troubling increases in these areas since the pandemic began,” said U.S. Attorney Lausch. “We are using every available federal law enforcement tool to continue to bring quality, impactful cases that hold violent offenders accountable and reduce violent crime in Chicago.”
In addition to a sustained focus on prosecutions of federal firearm offenses, the U.S. Attorney’s Office endeavors to disrupt violent crime by seeking pre-trial detention for defendants who pose a danger to the community and pursuing appropriate prison sentences to deter dangerous individuals from continuing to wreak havoc in their communities. Through enforcement actions, prosecutions, and community partnerships, the U.S. Attorney’s Office works to lower violent crime and make neighborhoods safer.
Enforcement Actions and Prosecution Activity
The U.S. Attorney’s Office works closely with U.S. law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), Postal Inspection Service (USPIS), Internal Revenue Service Criminal Investigation Division (IRS-CI), and U.S. Marshals Service (USMS), to investigate and prosecute a variety of violent crimes. State and local partners in this effort include the Chicago Police Department (CPD), Illinois State Police (ISP), Illinois Department of Corrections (IDOC), Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, Rockford Police Department, and other police departments throughout northern Illinois.
The U.S. Attorney’s Office’s Gun Crimes Prosecution Team continues to enhance the prosecution of illegal firearm possession in the most violent police districts in Chicago. Working collaboratively with federal and local law enforcement, the team focuses on charging Chicago’s most dangerous criminals quickly after arrest, endeavoring to disrupt the cycle of violence in the neighborhoods most in need.
“Our Gun Crimes Prosecution Team works tirelessly to investigate and prosecute firearms cases from those Chicago neighborhoods suffering from the most violent crimes,” said U.S. Attorney Lausch. “Our partnerships with CPD and other state and local law enforcement have never been better.”
Firearm and violent crime investigations in Chicago have also been bolstered by an important tool from ATF: the National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. Federal, state, and local law enforcement in Chicago have used NIBIN extensively to help solve violent crimes and prosecute trigger-pullers and other gun offenders.
Following up on the activities our office reported in October of last year, the U.S. Attorney’s Office remains active in fighting violent crime through various enforcement actions, prosecutions, and sentencings, as illustrated by the examples below:
- Gang-Related Prosecutions
“Combating the unacceptable level of gang violence in Chicago has been and will continue to be a top priority in our office,” said U.S. Attorney Lausch.
- Last month, DAVID SANTIAGO, of Chicago, was sentenced to 12 years in federal prison for illegally selling guns to Chicago gang members. During the investigation law enforcement seized 16 firearms, including rifles and semi-automatic handguns. Santiago purportedly obtained many of the firearms in Kansas and boasted to the Chicago buyers that the guns were “clean” and “brand new.” The case was investigated by ATF and CPD.
- RONTRELL TURNIPSEED, of Matteson, Ill., was sentenced in March to ten years in federal prison for engaging in a pattern of racketeering activity that included attempted murder, drug trafficking, and obstruction of justice. Turnipseed conspired with leadership of the Four Corner Hustlers street gang to violently protect the gang’s drug dealing in Chicago. Eight co-defendants have pleaded guilty, while three have pleaded not guilty and are awaiting trial. The probe was led by FBI, ATF, and CPD. The effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the U.S. using a prosecutor-led, intelligence-driven, multi-agency approach.
- A superseding indictment in March accused JASON BROWN, the alleged leader of the AHK street gang, of illegally possessing four loaded handguns in furtherance of a drug trafficking crime that included distributing methamphetamines. The superseding indictment also renewed charges previously filed against Brown for allegedly providing material support to the terrorist organization ISIS. The case was investigated by FBI, CPD, IRS-CI, ISP, USPIS, U.S. Customs and Border Protection, HSI, Lombard, Ill., Police Department, and Addison, Ill., Police Department, with assistance from the National Security Division of the Department of Justice.
- Firearm Trafficking and Firearm Theft Prosecutions
“Straw purchasers and firearms traffickers enable unlawful possession of guns and the violence that may follow,” said U.S. Attorney Lausch. “We will continue to work with our law enforcement partners, including our colleagues in other U.S. Attorney’s Offices in the Midwest and across the country, to hold accountable individuals or groups who traffic firearms into Chicago.”
- KALIL WARNER, of Chicago, was charged earlier this month with five counts of illegal transfer and possession of a machine gun. The indictment accuses Warner of transferring and possessing “switch devices,” which are designed to convert handguns into machine guns. The investigation was led by ATF.
- Earlier this month, three U.S. Army soldiers at Fort Campbell were charged in the Middle District of Tennessee with illegally purchasing and transferring dozens of firearms to the streets of Chicago. During the probe, five firearms recovered from a shooting scene in Chicago were found to have been purchased at firearms dealers in Tennessee. Further investigation identified the soldiers as the alleged majority purchasers of the firearms. Law enforcement in Chicago, including CPD and ATF, assisted in the investigation.
- Last month, SCOTT TREECE, of Rockford, Ill., and KYLE HALL, of Skokie, Ill., were charged with trafficking firearms. In social media postings, Treece allegedly offered to purchase firearms in Georgia on behalf of others and distribute the guns in the Chicago area. The investigation was led by ATF.
- DARIUS BROWN, of Chicago, was indicted last month on a federal firearm charge for allegedly straw purchasing multiple handguns in a suburban store on behalf of another individual. ATF led the probe.
- BENITTA GROSS, of Springfield, Ill., was charged in March with providing a semi-automatic handgun to a convicted felon in the Chicago area whom she knew was not lawfully allowed to possess it. The investigation was led by ATF and CPD, with valuable assistance from the Cook County State’s Attorney’s Office, Sangamon County State’s Attorney’s Office, Sangamon County Sheriff's Office, USMS, and Springfield Police Department.
- Alleged straw-purchaser DIAMOND SMITH, of Chicago, was charged in March with making false statements in the acquisition of a firearm for allegedly buying handguns in a Chicago suburb on behalf of another individual. ATF conducted the investigation.
- LEONARD D. JOHNSON was charged in December after law enforcement seized machine guns and more than 100 “switch devices” from his home in the Chicago suburb of Robbins. Each “switch device” is capable of converting a semi-automatic handgun into a machine gun. ATF led the probe, with valuable assistance from the Lansing Police Department and Midlothian Police Department.
- BENJAMIN CORTEZ-GOMEZ and GUSTAVO URIEL GOMEZ-HIPOLITO were indicted in November for allegedly trafficking multiple handguns from Indiana to Chicago. ATF and CPD led the investigation, with assistance from the Cook County Sheriff’s Office and the U.S. Customs and Border Protection’s Air and Marine Operations.
- Carjacking and Robbery Prosecutions
“The U.S. Attorney’s Office works closely with federal, state, and local law enforcement officers to prosecute violent crimes, such as carjacking, that violate federal law,” said U.S. Attorney Lausch.
- A violent carjacking late last week in Chicago led to a federal charge against KIAR EVANS, of Chicago. Evans allegedly took a vehicle at gunpoint near Garfield Park. The U.S. Attorney’s Office filed the carjacking charge directly in federal court the day after the incident. FBI and CPD investigated the case.
- ANTONIO EDWARDS, of Chicago, was sentenced last month to more than 18 years in federal prison for participating in a violent robbery crew that targeted cell phone stores in the Chicago area and downstate. Two other members of the crew – ANDREW MCHANEY and JAMES BATES, both of Chicago – previously pleaded guilty and were sentenced to federal prison terms of 14 years and eight years, respectively. The probe was led by the FBI, with assistance from police departments in Chicago, Waukegan, Bradley, Mount Prospect, North Aurora, Skokie, and Homewood.
- Chicago residents FALANDIS RUSSELL and TERRANCE WILLIAMS were charged earlier this year with conspiring to violently rob pawn shops, currency exchanges, and retail stores in Chicago and the suburbs, netting the conspirators more than $22,000 in cash and more than $305,000 worth of jewelry. The case was investigated by the FBI, with valuable assistance from Police Departments in Chicago, Calumet City, Summit, Burbank, Bolingbrook, Round Lake Beach, Hammond (Ind.), Streamwood, and Arlington Heights.
- DAVID JOHNSON, of Chicago, was charged in February after he allegedly carjacked a vehicle in Orland Park and fired a shot at a police officer who was pursuing him. Johnson allegedly drove the stolen vehicle to Chicago, where he crashed into another car and fled on foot before being arrested. ATF, CPD, Oak Forest Police Department, and Orland Park Police Department participated in the probe.
- Carjacking charges were also filed against OMARION FRANKLIN, of Chicago, who allegedly violently took an Infiniti G35 sedan from a victim in Skokie last summer. FBI investigated, with valuable assistance from the Cook County State’s Attorney’s Office, Skokie Police Department, and CPD.
- An Uber Eats driver was the victim of a carjacking last summer allegedly carried out by JAHEIM HENYARD, of Chicago. Henyard was also charged with a carjacking in Cicero and an attempted carjacking in Oak Park. FBI, CPD, Oak Park Police Department, and Cicero Police Department participated in the investigation, with assistance from the Cook County State’s Attorney’s Office.
- Lake County resident ZAYVEON THOMAS was charged in January with attempted carjacking for allegedly trying to violently take a Lexus IS300 sedan from a victim in the parking lot of a north suburban golf course last summer. FBI led the probe, with assistance from the Cook County State’s Attorney’s Office.
- Illegal Possession of Firearms Prosecutions
“If you are a felon and thinking about picking up a gun in Chicago, you should expect to be prosecuted to the fullest extent of the law, and face the possibility of going to federal prison for a long time,” said U.S. Attorney Lausch.
- Earlier this month, RODNEY BURNETT, of Chicago, was sentenced to more than nine years in federal prison for illegally possessing ammunition near Garfield Park on the city’s West Side. As a convicted felon, Burnett was prohibited by federal law from possessing a firearm. The case was investigated by FBI and CPD.
- Last month, MARIO PRADO, of South Elgin, Ill., who had previously been convicted of a felony firearm offense, was sentenced to nine years in federal prison for illegally possessing a semi-automatic rifle and numerous semi-automatic handguns. ATF and ISP conducted the probe.
- Convicted felon RAMONE SHAFFERS, of Chicago, was sentenced in January to eleven years in federal prison for illegally possessing a loaded gun and offering to pay witnesses to lie on his behalf. ATF and CPD investigated.
- Eight-time convicted felon LARRY CARADINE, of Chicago, was sentenced in December to more than five years in federal prison for illegally possessing a loaded handgun in the city’s West Garfield Park neighborhood. The case was investigated by ATF and CPD, with assistance from the Cook County State’s Attorney’s Office.
- Opioid Prosecutions
Opioids are a class of highly addictive drugs that includes heroin, fentanyl, and prescription painkillers such as oxycodone and hydrocodone. Public safety is being threatened by unprecedented levels of opioid misuse and overdose. The Department of Justice is committed to using every available tool to enforce federal drug laws and combat the opioid epidemic. In the Northern District of Illinois, the U.S. Attorney’s Office has deployed a strategy of aggressive investigations and prosecutions of those who are most responsible for this epidemic. This includes prosecuting the leaders of traditional drug trafficking organizations, as well as rogue healthcare providers, pharmacists, pharmacist technicians, and others who contribute to the misuse of opioids.
“The current opioid epidemic is the deadliest drug crisis in American history,” said U.S. Attorney Lausch. “We are actively attacking this crisis from all investigative and prosecutorial angles.”
- Suburban Chicago resident DENNIS GERMAN was charged in February with allegedly trafficking fentanyl, cocaine, and heroin, and illegally possessing loaded handguns. The indictment also accuses German of conspiring with two others to traffic cocaine and heroin last year. ATF investigated, with assistance from the Midlothian Police Department, Orland Park Police Department, and Dolton Police Department.
- More than 26 individuals were charged with various narcotics trafficking or firearms offenses as part of an investigation into criminal activities on the West Side of Chicago. As part of the probe, law enforcement shut down a telephone drug hotline utilized by the defendants to sell narcotics. DEA, ATF and CPD participated in the investigation, with assistance from the Cook County State’s Attorney’s Office, USMS, Cook County Sheriff’s Office, and IRS-CI.
- Other Significant Drug Trafficking Prosecutions
The U.S. Attorney’s Office targets traffickers who bring illegal drugs into Illinois from other states or countries, with a focus on organizations or individuals who use guns, violence and threats of violence to protect and promote their illegal businesses. The U.S. Attorney’s Office works directly with the Cook County State’s Attorney’s Office to ensure that individuals trafficking drugs are charged with appropriate offenses in either federal or state court.
- This week, a drug trafficking investigation dubbed “Operation Tragic Blow” resulted in federal charges against 17 individuals for allegedly distributing or attempting to distribute heroin and cocaine in Chicago. Law enforcement during the multi-year probe seized multiple kilograms of the narcotics. HSI and CPD led the investigation, which was part of an OCDETF operation.
- Last month, Chinese national XIANBING GAN was sentenced to 14 years in federal prison for laundering illegal narcotics proceeds on behalf of drug traffickers in Mexico. Gan schemed in 2018 to have approximately $534,206 in narcotics proceeds picked up in Chicago and transferred to various bank accounts in China, with the money ultimately intended for drug traffickers in Mexico. The investigation was conducted by HSI and IRS-CI.
- In March, five suspected associates of the Sinaloa Cartel were indicted on drug trafficking charges for allegedly conspiring to distribute cocaine in the Chicago area. One defendant was recently extradited to the United States to face the charges. DEA conducted the probe, with valuable assistance from the Justice Department’s Office of International Affairs, U.S. Customs and Border Protection, USMS, and INTERPOL.
- Federal drug and gun charges were filed in February against LARRY DENNIS, of Markham, who allegedly sold suspected crack cocaine on three occasions. Dennis also allegedly illegally possessed a loaded handgun in his residence in January. ATF and the Midlothian Police Department investigated the case, with assistance from the Markham Police Department, Dolton Police Department, and Orland Park Police Department.
Community Partnerships
The PSN program continues to invest resources in violence-prevention initiatives. Members of the U.S. Attorney’s Office have participated in offender notification meetings and youth outreach forums. Even during the current COVID-19 pandemic, these meetings and forums are still being held, including in a virtual environment, to maintain the outreach to former offenders.
Offender notification meetings provide an opportunity for individuals who have been convicted of a state or federal offense to make an informed choice not to engage in further criminal activity. Researchers at Arizona State University found that the forums in Chicago have a positive influence on the offenders’ perception of police and help create an understanding that criminal activity results in a higher risk to return to prison. Researchers at Yale University found that ex-offenders who attend an offender notification meeting in Chicago are 30% less likely to commit a new offense than those who did not attend a meeting.
The quarterly youth forums assist children aged 13-17 to identify a path other than gang membership. The youth forums are conducted in partnership with CPD, the Cook County Juvenile Temporary Detention Center, and the University of Chicago Crime Lab, which tracks the progress of the children to assess results.
Rockford Man Charged in Federal Court with Robbing Two Banks in Past Two MonthsRead the Press Release
ROCKFORD — A superseding indictment returned Tuesday by a federal grand jury in Rockford adds an additional charge of bank robbery against DEMONTRION DESHAN PHILLIPS, 27, of Rockford.
Phillips was originally charged with one count of bank robbery for allegedly stealing $5,930 in a heist on Apr. 7, 2021, at Midland States Bank, 1700 N. Alpine Rd. in Rockford. The superseding indictment charges Phillips with an additional count of bank robbery for allegedly taking $4,408 from Midland States Bank, 600 S. State St. in Belvidere, on May 3, 2021.
Phillips has been ordered detained in federal custody pending trial. His arraignment on the superseding indictment is set for June 21, 2021, at 10:00 a.m., before U.S. District Judge Iain D. Johnston in Rockford.
The superseding indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Randy Berke, Interim Chief of the Rockford Police Department; and Shane Woody, Chief of the Belvidere Police Department. The government is represented by Assistant U.S. Attorney Talia Bucci.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of bank robbery carries a maximum sentence of 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
17 Defendants Charged in Drug Trafficking Probe Targeting Heroin and Cocaine Sales in ChicagoRead the Press Release
CHICAGO — A joint federal and local drug trafficking investigation has resulted in federal charges against 17 individuals for distributing or attempting to distribute heroin and cocaine in Chicago.
During the multi-year probe, dubbed “Operation Tragic Blow,” law enforcement seized multiple kilograms of heroin and cocaine, including a 14-kilogram cocaine seizure in Chicago’s Belmont Cragin neighborhood and a two-kilogram heroin seizure in a high-rise apartment building in Chicago’s Buena Park neighborhood. The joint federal and local investigation, led by U.S. Homeland Security Investigations and the Chicago Police Department, utilized extensive undercover and covert surveillance operations to shut down the defendants’ drug trafficking activities.
Many of the 17 federal defendants were arrested Wednesday and have begun making initial appearances in U.S. District Court in Chicago. In addition to the 17 federal defendants, two other individuals were charged in state court as part of this investigation.
The federal charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Angie Salazar, Special Agent-in-Charge of the Chicago office of HSI; and David Brown, Superintendent of CPD. Substantial assistance was provided by the IRS Criminal Investigation Division in Chicago and the Cook County State’s Attorney’s Office. Assistant U.S. Attorneys Aaron Bond, Erin Kelly, and Brian Kerwin represent the government.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Charged with a federal drug offense are: YARNELL ALLEN, 41, of Dolton, Ill.; ULISES AVINA, 32, of Chicago; OSCAR BALDERAMA, 42, of Chicago; CELESTINO BARAHONA-SERRANO, 38, of Chicago; DIEGO GALEANA-GONZAGA, 35, of Mexico; MARGARITO GALEANA-GOMEZ, 36, of Mexico; JOSE GONZAGA, 58, of Chicago; RAFAEL MEDELLIN, JR., 32, of Chicago; RICHARD C. RINCON, 39, of Oak Lawn, Ill.; JUAN ROSAS-CABRERA, 31, of Mexico; SERGIO SANCHEZ-CHAVEZ, 36, of Mexico; FRANCISCO SANCHEZ-YANEZ, 32, of Chicago; ANTONIO SEGURA, 39, of Oak Lawn, Ill.; JORGE A. VALDEZ, 40, of Chicago; VIRGINIA VAZQUEZ-PEREZ, 37, of Cicero, Ill.; DELVIN WILLIAMS, 42, of Chicago; and RAFAEL ZARCO-PICAZO, 33, of Chicago.
According to criminal complaints unsealed in U.S. District Court in Chicago, Zarco-Picazo sold distribution levels of cocaine to Jorge Valdez, who in turn re-sold it in smaller quantities to customers in Chicago. Law enforcement on Jan. 30, 2021, seized 14 kilograms of cocaine from Zarco-Picazo’s Nissan Z sedan, which was parked at a residence in the 2300 block of North Menard Avenue in Chicago, the charges allege. The cocaine was packed into several bricks and hidden behind a speaker console, the complaint states.
The complaint also describes the heroin seizure in the high-rise apartment building in the 4200 block of North Marine Drive in Chicago. Galeana-Gomez and Gonzaga had allegedly conspired to sell nearly two kilograms of heroin to an undercover law enforcement officer and an individual who was surreptitiously cooperating with law enforcement. On the afternoon of Sept. 17, 2020, Gonzaga attempted to sell the heroin, which was wrapped in two vacuum-sealed bricks, to the undercover officer and the cooperating individual in the building’s underground parking garage. Law enforcement arrested Gonzaga and then searched two apartments on the 27th-floor of the building, where they discovered supplies used to package narcotics, including a heat sealer, vacuum sealer rolls, and a digital scale, the complaint states.
Other alleged illicit transactions cited in the charges include a two-kilogram cocaine deal on April 30, 2020, involving Segura and Allen behind a residence in the 6100 block of South Talman Avenue in Chicago’s Chicago Lawn neighborhood, and a kilogram of heroin distributed by Galeana-Gonzaga in two separate deliveries – 720 grams to Williams at an apartment building in the Chicago suburb of Brookfield, and 280 grams to Vazquez-Perez in a vehicle in the 2900 block of North Cicero Avenue in Chicago’s Belmont Cragin neighborhood.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Six Former Railroad Employees Charged with Fraudulently Obtaining Federal Disability BenefitsRead the Press Release
CHICAGO – Six former railroad employees have been indicted on criminal charges for allegedly fraudulently obtaining federal disability benefits.
The indictments accuse the defendants of working other jobs while providing false information to the U.S. Railroad Retirement Board’s Disability Benefits Division. The defendants were charged as part of an ongoing, nationwide investigation into alleged fraud perpetrated against benefits programs administered by the RRB to rail workers and their families. The investigation is being jointly conducted by the RRB Office of Inspector General, FBI, and U.S. Department of Health and Human Services Office of Inspector General.
Charged in indictments returned in the Northern District of Illinois are SCOTT CARLBERG, 50, of Menomonie, Wisc., a former engineer at Soo Line Railroad; RONALD LEE CRIBBS, 49, of Hastings, Fla., a former employee of Chessie Seaboard Consolidated; ROBIE VONDERHAAR, 58, of Guttenberg, Iowa, a former foreman for Dakota, Minnesota & Eastern Railroad Corp.; RICHARD W. BROWNER, JR., 65, of Toms River, N.J., a former assistant line engineer at the New Jersey Transit Corp.; JAMES BONNER, 52, of Shalimar, Fla., a former engineer for Burlington North Santa Fe; and KING BRADLEY, JR., 48, of Medina, Tenn., a former conductor for Illinois Central Railroad.
The indictments were ordered unsealed this week. The defendants will be arraigned in federal court in Chicago on a date to be set by the Court.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Martin J. Dickman, Inspector General of the RRB; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Lamont Pugh, Special Agent-in-Charge of the Chicago Division of the HHS-OIG. Valuable assistance was provided by Brian Jeanfreau, Special Agent-in-Charge of the Coast Guard Investigative Service Gulf Region. The government is represented by Assistant U.S. Attorneys Richard Rothblatt and Terry Kinney.
“Disability payments from the Railroad Retirement Board are a critical benefit for those who truly need them,” said U.S. Attorney Lausch. “Individuals who seek to fraudulently obtain these benefits jeopardize the viability of the program and must be held accountable.”
“The fraud alleged in these indictments is appalling,” said RRB IG Dickman. “My office will continue to pursue individuals who attempt to defraud the USRRB and the actors who may help perpetuate the fraud, whether they be medical professionals, contractors, private employers, or government employees. I would also like to acknowledge the hardworking prosecutors and agents assigned to this ongoing, national investigation.”
“Disability benefits are a critical lifeline for injured workers,” said FBI SAC Buie. “Defrauding the U.S. Railroad Retirement Board means stealing resources from hardworking citizens, and we will continue to work with our partners to prevent future abuses.”
“Making false statements and concealing material facts in order to obtain benefits from federally funded programs is wrong and illegal,” said HHS-OIG SAC Pugh. “Those who receive disability benefits may be deemed eligible for other federal benefits such as Medicare before attaining age 65. Therefore, falsifying information to receive benefits that individuals are not entitled to wastes valuable taxpayer dollars across multiple federally funded programs. HHS-OIG will continue to work with our federal partners to identify instances where benefit programs are being defrauded and protect vital taxpayer dollars.”
According to the indictments, Carlberg operated and managed a tanning salon in Wisconsin for six years while simultaneously receiving occupational disability benefits; Cribbs worked in the construction and landscaping trades for various companies in Florida for six years while simultaneously receiving occupational disability benefits; Vonderhaar managed a construction company in Iowa for three years while simultaneously receiving occupational disability benefits; Browner co-owned and managed a donut shop in New Jersey for six years while simultaneously receiving occupational disability benefits; Bonner captained a chartered fishing boat in Florida for three years while simultaneously receiving occupational disability benefits; and Bradley worked for a construction company for six years while simultaneously receiving total and permanent disability benefits.
The charges seek cash forfeiture from the defendants in the following amounts: Carlberg $273,974; Cribbs $145,000; Vonderhaar $110,732; Browner $226,443; Bonner $10,180; and Bradley $211,650.
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. Carlberg, Cribbs, Vonderhaar, and Browner face multiple counts of wire fraud, each of which is punishable by up to 20 years in federal prison. Bonner and Bradley are charged with making materially false statements to the FBI and RRB, which is punishable by up to five years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe someone you know is receiving fraudulent disability benefits from the U.S. Railroad Retirement Board, you can anonymously contact the USRRB OIG by calling 1-800-772-4528 or by sending an email to [email protected].
Former Chief of Staff to Illinois Speaker of the House Indicted for Allegedly Lying Under Oath to Federal Grand JuryRead the Press Release
CHICAGO — The former Chief of Staff to the Illinois Speaker of the House of Representatives was indicted today for allegedly providing false material declarations under oath to a federal grand jury and attempting to obstruct its investigation into allegations of public corruption.
TIMOTHY MAPES, 66, of Springfield, Ill., is charged with one count of making false declarations before a grand jury and one count of attempted obstruction of justice, according to an indictment returned in U.S. District Court in Chicago. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Julia Schwartz, Amarjeet S. Bhachu, Diane MacArthur, Timothy J. Chapman, Sarah E. Streicker, Matthew L. Kutcher, and Michelle Kramer. The officials noted that the federal investigation into the allegations of public corruption remains ongoing.
According to the indictment, the federal grand jury was investigating possible violations of federal criminal law, including efforts by the Illinois Speaker of the House and an individual acting on the Speaker’s behalf, to obtain for others private jobs, contracts, and monetary payments, including from Commonwealth Edison (“ComEd”), the largest electric utility in Illinois, to influence and reward the Speaker in the Speaker’s official capacity. On March 24, 2021, Mapes was granted immunity to testify before the grand jury. The immunity order provided that no testimony or evidence provided by Mapes could be used against him in a criminal case, except for perjury, giving a false statement, or otherwise failing to comply with the immunity order.
On March 31, 2021, Mapes testified before the grand jury and knowingly made false material declarations in response to several questions about a consultant’s relationship with the Speaker from 2017 to 2019, the indictment states. Mapes in his testimony denied knowing that the consultant acted as an agent or performed work for the Speaker during those years, when, in fact, Mapes knew that the consultant carried out work and assignments on behalf of the Speaker and communicated messages on the Speaker’s behalf, the indictment states.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The obstruction charge is punishable by up to 20 years in federal prison, while the false declaration charge carries a maximum sentence of five years.
Federal Indictment Charges 22 Individuals with Purchasing and Using Payment Cards Stolen from National Retail ChainRead the Press Release
CHICAGO — Twenty-two individuals have been indicted on fraud and identity theft charges for allegedly purchasing and using credit, debit, and gift cards that were stolen in a cyber attack from a national retain chain.
According to an indictment unsealed in the Northern District of Illinois, the cyber attack occurred in 2016 and 2017 when an individual installed a malicious software program on multiple computers of the retail chain, which is headquartered in the Chicago area. The malware allowed the co-schemer to capture data from more than three million payment cards, including credit cards, debit cards, and gift cards, that had been used at more than 400 of the company’s retail stores. The co-schemer then sold the card data for $4 million in bitcoin to another individual, who in turn sold it online to thousands of others, including the 22 charged defendants, the indictment states.
The defendants used data from the cards to purchase items at businesses throughout the country, including restaurants, gas stations, and hotels, the charges allege. At least 80 people were victimized by the defendants’ conduct, the indictment states.
Twenty defendants were arrested this month and have begun making initial appearances in federal courts throughout the country. Two defendants remain at large and are believed to be residing overseas. The investigation remains ongoing.
The indictment and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorneys Peter M. Flanagan and Thomas P. Peabody.
Charged with wire fraud and aggravated identity theft are BARRY SHI, 35, of Rosemead, Calif.; ANDREW DARIEN MCLEOD, 26, of Brooklyn, N.Y.; JAMEL T. WILLIAMS, 30, of Raleigh, N.C.; SAAQUAN RAM, 33, of Grand Rapids, Mich.; JAMES B. GIBBS, 32, of South Carolina; YI LIU, 32, of Temple City, Calif.; CHRISTOPHER JOHNSON, 38, of Monroe Township, N.J.; DAJUAN GEE, 32, of Redmond, Mich.; YANG SONG, 34, of Rosemead, Calif.; JAYVON A. PUGH, 23, of Brooklyn, N.Y.; KADEEM DEAN, 28, of Brooklyn, N.Y.; ENPING QU, 26, of Calif.; CAN JIANG, 27, of San Gabriel, Calif.; ESRON A. MURRELL, 30, of Jamaica, N.Y.; ZANPENG CHEN, 27, of Los Angeles, Calif.; JEFF MURAT, 41, of Miami, Fla.; CHRISTOPHER T. THOMPSON, 32, of Woodland Hills, Calif.; JOHN LIU, 37, of West Covina, Calif.; SADIKIFU NAWAB SHABAZZ, 42, of Atlanta, Ga.; BYRON HICKMAN, 32, of New York, N.Y.; CLIVE BAKER, 26, of New York, N.Y.; and DAVIN SMART, 31, of Spotsylvania, Va.
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. Wire fraud is punishable by up to 20 years in federal prison, while aggravated identity theft carries a mandatory, consecutive prison sentence of two years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Alleged Chicago Carjacker Arrested on Federal ChargeRead the Press Release
CHICAGO — A man has been arrested and charged in federal court with carjacking after he allegedly took a vehicle at gunpoint near Garfield Park in Chicago late last week.
KIAR EVANS, 22, of Chicago, is charged with one count of carjacking in connection with the Thursday afternoon incident. Evans is scheduled to make an initial appearance in federal court today at 1:00 p.m. before U.S. Magistrate Judge Jeffrey I. Cummings.
The arrest and federal charge 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 a criminal complaint filed in U.S. District Court in Chicago, Evans approached the driver’s side window of a Nissan Altima at the intersection of West Congress Parkway and Independence Boulevard in Chicago. Evans pointed a firearm at the Nissan’s driver and demanded that the driver exit the vehicle, the complaint states. The victim complied and Evans drove off in the Nissan, the complaint states.
Shortly after the carjacking, Evans was driving the stolen Nissan when he was involved in a multi-vehicle crash at the intersection of Harrison Street and Ogden Avenue in Chicago, the complaint states. Chicago Police officers arrested Evans and discovered a loaded semi-automatic handgun in the Nissan, the complaint states.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The carjacking charge is punishable by a maximum sentence of 15 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
North Suburban Businessman Guilty of Evading More Than $2.4 Million in Federal and State Income TaxesRead the Press Release
CHICAGO — A north suburban businessman pleaded guilty today to willfully evading more than $2.4 million in income taxes.
ANTHONY D. PANICO, 68, of Libertyville, pleaded guilty to one count of tax evasion. The conviction is punishable by up to five years in federal prison. U.S. District Judge John Z. Lee set sentencing for Aug. 31, 2021.
Panico owned Libertyville-based AP Capital Management LLC, and he operated, controlled, or was otherwise associated with several other business entities. From 2010 to 2017, he received more than $9.2 million of income for which he was required to file returns and pay taxes. Panico admitted in a plea agreement that he willfully failed to file federal or state income tax returns for each of those years, resulting in a total federal and state tax loss of approximately $2,462,934.
Panico admitted that he attempted to conceal his receipt of income by the creation and use of multiple entities, the use of nominees, misidentifying the use of funds he obtained from banks, paying personal expenses from corporate entities he controlled, and using various trust and nominee entities to acquire real estate and other assets. Several of the entities used by Panico also failed to file tax returns, the plea agreement states.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Tamera D. Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Jay N. Lerner, Inspector General of the Federal Deposit Insurance Corp.’s Office of Inspector General. The government is represented by Assistant U.S. Attorney Patrick J. King, Jr.
Rockford Man Charged in Federal Court with Bank RobberyRead the Press Release
ROCKFORD — A Rockford man was indicted Tuesday by a federal grand jury for the robbery last month of a bank in Rockford.
DEMONTRION DESHAN PHILLIPS, 27, took approximately $5,930 from the Midland States Bank branch, 1700 N. Alpine Rd. in Rockford, on April 7, 2021.
Phillips is charged with one count of bank robbery, which is punishable by a maximum sentence of 20 years in federal prison. He pleaded not guilty Wednesday during his arraignment before U.S. District Judge Iain D. Johnston in Rockford. Judge Johnston ordered Phillips to remain in federal custody pending trial.
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; Randy Berke, Interim Chief of the Rockford Police Department; and Shane Woody, Chief of the Belvidere Police Department. The government is represented by Assistant U.S. Attorney Talia Bucci.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Georgia Man Indicted on Charges of Wire Fraud Involving the CARES ActRead the Press Release
ROCKFORD — A Georgia man was indicted Tuesday by a federal grand jury in Rockford on fraud charges involving unemployment compensation claims and the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).
ROBERT CARTER, 27, of Hampton, Ga., was charged with three counts of wire fraud. Arraignment is set for May 14, 2021, at 9:00 a.m., before U.S. Magistrate Judge Lisa A. Jensen in Rockford.
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.
As alleged in the indictment, from June through August 2020, Carter and others schemed to submit fraudulent unemployment insurance claims to the Maryland Division of Unemployment Insurance for claimants whom Carter knew did not work or live in Maryland and were not entitled to benefits. Carter caused the unemployment claims in his name and others to be sent from Homewood, Ill., and DeKalb, Ill., and he opted to have the benefits paid via debit cards and mailed to residences connected to Carter and others involved in the scheme. Funds were then withdrawn from the debit cards at financial institutions and ATMs in Illinois. The fraud scheme resulted in more than $506,000 paid in unemployment benefits, the indictment alleges.
The CARES Act expanded states’ ability to provide unemployment insurance for many workers impacted by the COVID-19 pandemic. The Act created several benefit programs, including the Federal Pandemic Unemployment Compensation Program, the Pandemic Emergency Unemployment Compensation Program, and the Pandemic Unemployment Assistance Program.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud carries a maximum sentence of 20 years in federal prison. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Suburban Chicago Man Pleads Guilty to Federal Fraud Charge for Misappropriating Hundreds of Thousands from Non-Profit OrganizationRead the Press Release
CHICAGO — A suburban Chicago man admitted in federal court today that he fraudulently misappropriated hundreds of thousands of dollars from a non-profit organization for physically and psychologically challenged children.
STUART NITZKIN, 45, of Deerfield, Ill., pleaded guilty to one count of wire fraud. U.S. District Judge Sara L. Ellis set sentencing for Aug. 3, 2021.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Sheri H. Mecklenburg.
According to a plea agreement, Nitzkin from 2011 to 2016 worked as the Executive Director of an Illinois-based non-profit organization whose mission was the rehabilitation of physically and psychologically challenged children. During that time, Nitzkin knowingly submitted to the organization invoices and receipts for payment and reimbursement of expenses that Nitzkin claimed were incurred on behalf of the organization. In reality, Nitzkin knew the expenses were not actually incurred by the organization but rather by Nitzkin for his and others’ personal benefit, the plea agreement states.
The expenses Nitzkin submitted for reimbursement included luxury vacations for Nitzkin and his family to Las Vegas, Florida, Ireland, and Puerto Rico, personal golfing expenses, tickets to Chicago Bulls basketball games and other professional sporting events, personal medical expenses, real estate taxes for his family residence, health club dues, household goods, meals, and car maintenance, the plea agreement states. Nitzkin also pocketed cash from fundraising events held on behalf of the organization and used the money for personal expenses, the plea agreement states.
Nitkin admitted in the plea agreement that as a result of the scheme he fraudulently misappropriated at least $550,000 from the organization. The government charged, and intends to prove at sentencing, that Nitzkin misappropriated approximately $831,400.
Wire fraud is punishable by up to 20 years in prison. The Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Suburban Chicago Man Sentenced to 27 Years in Prison on Child Pornography and Exploitation ChargesRead the Press Release
CHICAGO — A suburban Chicago man was sentenced today to 27 years in federal prison for threatening to publish sexually explicit images of an underage girl unless she sent him additional photos and videos of herself.
DAVID J. COTTRELL, 31, of Niles, Ill., enticed the underage victim into sending him sexually explicit photos of herself via online social messaging applications. After collecting the photos, Cottrell informed the girl that he knew her real name, the name of her school, and her parents’ jobs, and he threatened to post the images online and send them to her family unless the girl sent him additional, more explicit photos and videos, which she did. Cottrell contacted the victim on a regular basis until her parents discovered the messages and contacted law enforcement.
Cottrell pleaded guilty last year to one count of sexual exploitation of a child and one count of possession of child pornography. He admitted in a plea agreement that he similarly induced or attempted to induce four other minor victims into sending him sexually explicit images of themselves. While communicating with the victims online, Cottrell used the screennames “sevendollarcab,” “brightcitylights,” “b88785,” and “YouShallSubmitToMe Sir.”
U.S. District Judge Robert W. Gettleman imposed the sentence today 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 Angie Salazar, Special Agent-in-Charge of the Chicago office of U.S. Homeland Security Investigations. The government was represented by Assistant U.S. Attorney Charles W. Mulaney.
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.
Federal Indictment Charges Chicago Man with Illegally Possessing “Switch” Devices Capable of Turning Handguns into Machine GunsRead the Press Release
CHICAGO — A Chicago man has been indicted on federal firearm charges for allegedly illegally transferring and possessing “switch” devices that are capable of converting a semi-automatic pistol into a machine gun.
KALIL WARNER, 24, is charged with five counts of illegal transfer and possession of a machine gun. The indictment accuses Warner of transferring and possessing the switch devices in Chicago on five occasions earlier this year. Each switch component is solely and exclusively designed to convert weapons into machine guns, the indictment states. Switch devices, once properly installed, allow a handgun to expel more than one projectile by a single pull of the trigger.
Warner pleaded not guilty Monday during his arraignment in U.S. District Court in Chicago. U.S. District Judge Sharon Johnson Coleman scheduled a status hearing for June 15, 2021, at 10:30 a.m.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. The government is represented by Assistant U.S. Attorney Albert Berry III.
Holding illegal firearm offenders accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
“Switch devices pose a dangerous threat to public safety and have no place on the streets of Chicago,” said U.S. Attorney Lausch. “Federal law enforcement will act swiftly to neutralize the threat posed by illegal machine guns and keep our communities safe.”
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count in the indictment is punishable by 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.
U.S. Attorney John Lausch Recognizes the Contributions of Law Enforcement During National Police WeekRead the Press Release
CHICAGO – In honor of National Police Week, John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today recognized the service of federal, state, and local law enforcement officers, especially those who have made the ultimate sacrifice.
“All of us at the U.S. Attorney’s Office consider it a privilege to work with the brave men and women who serve our communities with honor and integrity,” said U.S. Attorney Lausch. “National Police Week presents a special opportunity to acknowledge their courage and sacrifice. To them, I say thank you for your valor and commitment to justice.”
“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said Attorney General Merrick B. Garland. “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”
While many National Police Week events have been postponed due to the COVID-19 pandemic, the National Law Enforcement Officers Memorial Fund will host a virtual Candlelight Vigil on Thursday, May 13, 2021, at 7:00 p.m. CDT. During the vigil, the names of fallen officers who are being added to the wall of the National Law Enforcement Memorial will be read aloud. The vigil can be viewed live on YouTube here.
According to 2020 statistics reported by the FBI, 46 on-duty law enforcement officers nationwide died as a result of felonious acts, and 47 died in accidents. One of the officers killed in an on-duty auto accident was Terrence Engle, Chief of the Hampton, Ill., Police Department.
Additionally, hundreds more law enforcement personnel succumbed to COVID-19 in 2020 while bravely protecting their communities. At least eight of those individuals served in the Northern District of Illinois:
- Marco DiFranco, Chicago Police Department
- Clifford Martin, Chicago Police Department
- Ronald Newman, Chicago Police Department
- Titus Moore, Chicago Police Department
- Sheila Rivera, Cook County Sheriff’s Office
- Richard O’Brien, Cook County Sheriff’s Office
- Antoine P. Jones, Cook County Sheriff’s Office
- Jose P. Marquez, Cook County Sheriff’s Office
“There is no higher calling than to be willing to die for the safety of others,” said U.S. Attorney Lausch. “We pay a special tribute to those officers who lost their lives in the line of duty. We will never forget their courage and sacrifice.”
In 1962, President John F. Kennedy signed a proclamation designating May 15 as the annual Peace Officers Memorial Day, and the week in which that date falls as National Police Week. To learn more about National Police Week, please visit www.policeweek.org.
Financial Advisor Sentenced to More Than 13 Years in Prison for Swindling Investors Out of $5.1 MillionRead the Press Release
CHICAGO — A financial advisor who told clients they were guaranteed to make money by investing with him has been sentenced to more than 13 years in federal prison for defrauding those clients out of $5.1 million.
DARAYL DAVIS falsely represented to clients that they would receive fixed annual interest payments and guaranteed protection against losses if they invested with his firms - Washington, D.C.-based Financial Assurance Corp. and Los Angeles, Calif.-based Affluent Advisory Group LLC. Davis claimed that some of the investments would be backed by a well-known multinational life insurance company. In reality, Davis did not invest the funds as promised, and none of the purported investments had any affiliation with the life insurance company.
Davis instead spent the money for his own personal benefit, including rent for an eight-bedroom mansion in Los Angeles, airline tickets, luxury hotels, car rentals, a club membership, theater tickets, and other items. Davis often attempted to conceal the scam by using funds from some investors to make Ponzi-type payments to other investors.
The alleged fraud scheme lasted from at least 2003 to 2018. In all, Davis defrauded more than 25 victims out of more than $5.1 million. Many of the victims were retirees who gave Davis all of their savings.
Davis, 48, of Chicago, and formerly of Bowie, Md., pleaded guilty earlier this year to one count of mail fraud. U.S. District Judge Robert W. Gettleman on Monday imposed a 160-month prison sentence.
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 U.S. Securities and Exchange Commission, which filed a civil complaint against Davis.
“Davis targeted his victims personally, seeking out fellow church members, individuals who had previously purchased legitimate investment products from him, or ‘friends’ to whom he offered the ‘favor’ of an inside investment opportunity,” Assistant U.S. Attorneys Christopher Catizone and Philip N. Fluhr argued in the government’s sentencing memorandum. “Davis knew these people trusted him and deliberately exploited that trust.”
Man Sentenced to More Than Nine Years in Prison for Illegally Possessing Ammunition in ChicagoRead the Press Release
CHICAGO — A man has been sentenced to more than nine years in federal prison for illegally possessing ammunition near Garfield Park on Chicago’s West Side.
RODNEY BURNETT, 25, of Chicago, illegally possessed four rounds of .40-caliber ammunition on May 15, 2018. Burnett, driving a stolen vehicle and fleeing the area where a shooting had recently occurred, led Chicago Police on a high-speed chase that ended when he crashed his car at the intersection of Hamlin and Jackson Boulevards near Garfield Park. Burnett and two passengers in his vehicle then fled on foot and discarded two firearms. CPD officers apprehended them a short time later.
Burnett pleaded guilty to a federal charge of illegal possession of ammunition by a convicted felon. He had previously been convicted in state court of a felony criminal offense and was not legally allowed to possess ammunition or a firearm.
U.S. District Judge John Z. Lee on April 27, 2021, imposed a 110-month federal prison sentence. Judge Lee found that, in addition to possessing the ammunition, the government met its burden in proving that Burnett possessed a firearm and was involved in the nearby shooting that preceded the vehicular chase.
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 government was represented by Assistant U.S. Attorney Katie M. Durick.
Holding illegal firearm possessors accountable through federal prosecution is also a centerpiece of Project Guardian and Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategies. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Two Men Indicted for Allegedly Trafficking Firearms in Chicago AreaRead the Press Release
CHICAGO — Two men have been indicted by a federal grand jury in Chicago for allegedly trafficking firearms.
SCOTT TREECE, 33, of Rockford, Ill., and KYLE HALL, 21, of Skokie, Ill., illegally dealt firearms in the Northern District of Illinois from November 2020 to January 2021, according to an indictment unsealed today in U.S. District Court in Chicago. In social media postings in January, Treece offered to purchase firearms in Georgia on behalf of others and distribute the guns in the Chicago area, according to a criminal complaint against Treece previously filed in the case. In one of his social media postings, Treece allegedly posted an image of ammunition and stated, “I’m tellin y’all no bread no poles so y’all better make your minds up I already got 2 [expletive] who sent bread so.”
Treece was arrested in February after he sold a loaded handgun for $550 to a buyer who, unbeknownst to Treece, was cooperating with law enforcement, the complaint states. The transaction allegedly occurred in a retail store parking lot in Addison, Ill.
Treece and Hall pleaded not guilty today during arraignments in federal court in Chicago. Treece remains detained in federal custody, while Hall was ordered released with bond conditions.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Jasmina Vajzovic represents the government.
The indictment charges Treece with one count of dealing firearms without a license, two counts of illegally possessing firearms as a previously convicted felon, and one count of witness tampering. The witness tampering charge alleges that while in custody following his arrest, Treece instructed an individual not to speak to law enforcement about Treece’s alleged trafficking offenses and to tell another person to do the same.
Hall is charged with one count of dealing firearms without a license, and one count of knowingly selling and disposing a firearm to a convicted felon, Treece.
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. Witness tampering is punishable by up to 20 years in federal prison. The counts for illegal possession and selling a firearm to a convicted felon each carry a maximum sentence of ten years. 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.
Former City of Chicago Alderman Charged with Using Money from Political Fund to Pay Personal ExpensesRead the Press Release
CHICAGO — A federal grand jury today indicted former City of Chicago Alderman RICARDO MUNOZ on fraud charges for allegedly using money from a political fund to pay personal expenses.
A 16-count indictment returned in U.S. District Court in Chicago alleges that while serving as Alderman of the 22nd Ward in Chicago, Munoz used money from a political action committee formed by the Chicago Progressive Reform Caucus (CPRC) to pay a relative’s college tuition and other personal expenses, including jewelry, clothing, cell phones, vacations, sports tickets, and airline tickets. Munoz obtained the money through cash withdrawals and debit card charges from the CPRC’s bank account or by transferring funds from CPRC to another political fund he controlled – Citizens for Munoz (CFM) – and then on to his personal checking account, the indictment states. Munoz attempted to conceal the fraud scheme by making materially false representations to the Illinois State Board of Elections and staff members and contractors of the CPRC, the indictment states.
CPRC was a political organization whose voting membership consisted of certain Aldermen in the Chicago City Council. Munoz, who was a member of the City Council from 1993 to 2019, served as chairman of the CPRC and performed the duties of its treasurer. Public officials were prohibited by law from receiving payments from the CPRC for personal expenditures.
Munoz, 56, of Chicago, is charged with 15 counts of wire fraud and one count of money laundering. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorneys Morris Pasqual and Jared Hasten.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of wire fraud is punishable by up to 20 years in federal prison, while the money laundering 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.
Federal Judge Sentences Suburban Chicago Man to Nine Years in Prison for Illegally Possessing Numerous FirearmsRead the Press Release
CHICAGO — A suburban Chicago man has been sentenced to nine years in federal prison for illegally possessing a semi-automatic rifle and numerous semi-automatic handguns.
MARIO PRADO, 28, illegally possessed the firearms on Feb. 14, 2019, in his residence in South Elgin, Ill. Law enforcement on that date conducted a court-authorized search of the residence and discovered the rifle and eight handguns. Prado had previously been convicted of a felony firearm offense in the Circuit Court of Kane County and was not legally allowed to possess a firearm.
Prado pleaded guilty on Nov. 20, 2020, to a federal charge of illegal possession of a firearm by a convicted felon. U.S. District Judge Sharon Johnson Coleman imposed the nine-year 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; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Brendan F. Kelly, Director of the Illinois State Police. The government was represented by Special Assistant U.S. Attorney Niranjan Emani.
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Chicago Attorney Charged with False Statement and Tax Offenses in Connection with Funds Received from Failed Chicago BankRead the Press Release
CHICAGO — A Chicago attorney was indicted today on false statement and tax charges in connection with funds he received from Washington Federal Bank for Savings.
PATRICK D. THOMPSON, 51, is charged with five counts of willfully filing a false income tax return and two counts of knowingly making a false statement to the Federal Deposit Insurance Corp., according to an indictment returned in U.S. District in Chicago. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jay N. Lerner, Inspector General of the FDIC’s Office of Inspector General; Tamera Cantu, Acting Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Sally Luttrell, Assistant Inspector for Investigations of the Department of the Treasury, Office of Inspector General; Joseph M. Ferguson, City of Chicago Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General. The government is represented by Assistant U.S. Attorneys Brian Netols, Michelle Petersen, Jeremy Daniel, and Nicholas Eichenseer.
According to the charges, Thompson from 2011 to 2014 received $219,000 from Chicago-based Washington Federal via a purported loan and other unsecured payments. He made one re-payment on the loan but then stopped making payments, and he failed to pay interest on the funds he received, the indictment states. Washington Federal was shut down in 2017 after the Office of the Comptroller of the Currency determined it was insolvent and had at least $66 million in nonperforming loans. When the FDIC, as successor in interest to Washington Federal, attempted to obtain repayment from Thompson in 2018, he falsely stated that he owed only $110,000 and that those funds were for home improvement, when Thompson knew he had actually received $219,000 and that $110,000 of it was paid by the bank to a law firm as Thompson’s capital contribution, the indictment states.
The tax charges accuse Thompson of falsely representing on five years of income taxes that he paid interest on money he received from Washington Federal, even though he knew he did not pay interest in the amounts reported on the returns.
Ten other defendants, including several high-ranking former bank employees, were previously charged as part of the ongoing federal criminal investigation into the failure of Washington Federal.
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 false statement count is punishable by a maximum sentence of 30 years in federal prison, while each tax count is punishable by up to three years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Suburban Chicago Chiropractor Sentenced to More Than a Year and a Half in Prison on Fraud ChargesRead the Press Release
CHICAGO — A suburban Chicago chiropractor has been sentenced to more than a year and a half in federal prison for fraudulently submitting reimbursement claims to private insurers and Medicare for nonexistent treatment.
JOHN KOSLOSKI operated Diagnostic & Therapeutic Rehab in Dolton, Ill. From 2010 to 2017, Kosloski billed the private insurers for services that he purportedly provided to Amtrak employees and their family members, knowing that he was not actively treating them or had never seen them as patients. Kosloski paid cash to the Amtrak employees in exchange for the ability to falsely bill using the employees’ and their family members’ personal information. During the course of his scheme, Kosloski submitted more than 18,000 claims to insurers for services that he knew he did not provide, and he received more than $500,000 in reimbursements for the false claims.
Kosloski, 57, of Beecher, Ill., pleaded guilty last year to one count of health care fraud. U.S. District Chief Judge Rebecca R. Pallmeyer on Monday imposed a 20-month prison term and ordered Kosloski to pay a $25,000 fine and more than $500,000 in restitution to the insurers.
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 Basil P. Demczak, Special Agent-in-Charge of the Central Region of Amtrak’s Office of Inspector General.
“In a world that has limited funds to pay for health care, insurance providers paid defendant for fraudulent claims that could have been used to pay for necessary medical services,” Assistant U.S. Attorney Kelly M. Greening argued in the government’s sentencing memorandum. “He made the choice to defraud insurers over and over again for eight years, stealing hundreds of thousands of dollars.”
Chinese National Sentenced to 14 Years in Prison for Laundering Drug Proceeds on Behalf of Traffickers in MexicoRead the Press Release
CHICAGO — A federal judge in Chicago today sentenced a Chinese national to 14 years in prison for laundering illegal narcotics proceeds on behalf of drug traffickers in Mexico.
XIANBING GAN schemed in 2018 to have approximately $534,206 in narcotics proceeds picked up in Chicago and transferred to various bank accounts in China, with the money ultimately intended for drug traffickers in Mexico. Unbeknownst to Gan, a purported money courier who picked up the drug proceeds in Chicago was an undercover law enforcement agent.
Gan, 51, is a Chinese national who facilitated the money transfers while residing in Guadalajara, Mexico. U.S. authorities arrested him in November 2018 at Los Angeles International Airport during a layover on a flight from Hong Kong to Mexico. He has remained in U.S. custody since then.
A federal jury in Chicago last year convicted Gan on three counts of money laundering and one count of operating an unlicensed money transmitting business. U.S. District Judge Thomas M. Durkin imposed the sentence today 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; Angie Salazar, Special Agent-in-Charge of Homeland Security Investigations in Chicago; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.
“The defendant was part of a recent phenomenon in which a relatively small network of Chinese money brokers based in Mexico have come to dominate international money laundering markets,” Assistant U.S. Attorneys Sean J.B. Franzblau and Richard M. Rothblatt argued in the government’s sentencing memorandum. “Like defendant, many of these brokers are also engaged in legitimate business, and use that business as cover for and to further money laundering activity. It does not matter that defendant never personally distributed narcotics – drug distribution and money laundering are two-sides of the same malignant coin.”
Member of Violent Robbery Crew Sentenced to More Than 18 Years in PrisonRead the Press Release
CHICAGO — A man has been sentenced to more than 18 years in federal prison for participating in a violent robbery crew that targeted cell phone stores in the Chicago area and downstate.
ANTONIO EDWARDS and two co-defendants engaged in a conspiracy to rob a series of cell phone stores in 2017. The crew conducted takeover-style robberies in which two or three robbers would enter a store and order employees to the back of the store at gunpoint. The robbers then loaded phones into bags and fled the store. Edwards personally participated in three of the heists – in Chicago, Waukegan, and Bradley – and he brandished a gun during the Waukegan and Bradley robberies.
Edwards, 26, of Chicago, pleaded guilty to conspiracy and robbery charges, and a jury convicted him after a trial on charges of brandishing a firearm during a crime of violence. U.S. District Judge Elaine E. Bucklo on Friday imposed a prison sentence of 18 years and eight months.
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 police departments in Chicago, Waukegan, Bradley, Mount Prospect, North Aurora, Skokie, and Homewood. The government was represented by Assistant U.S. Attorneys Aaron R. Bond and Kristen Totten.
Two other members of the robbery crew – ANDREW MCHANEY, 29, of Chicago, and JAMES BATES, 60, of Chicago – previously pleaded guilty and were sentenced to federal prison terms of more than 14 years and more than eight years, respectively.
Two Men Indicted in Rockford on Charges of Illegally Possessing Machine GunsRead the Press Release
ROCKFORD — A federal grand jury returned indictments in separate cases charging two men with illegally possessing machine guns.
The defendants are charged with possessing devices that were used to convert a conventional semi-automatic pistol into a fully automatic firearm. The devices are commonly referred to as “switches,” “auto-sears,” or “conversion devices,” among other names.
The indictments were returned Tuesday in U.S. District Court in Rockford.
In one case, JAVAUGHN A. HIXSON, 21, of Rockford, was charged with three counts of possessing a conversion device, and one count of illegal possession of a firearm as a convicted felon. Hixson pleaded not guilty to the charges during arraignment this afternoon before U.S. Magistrate Judge Lisa A. Jensen. Hixson was ordered to remain detained in federal custody pending trial. According to the indictment, Hixson knowingly possessed conversion devices on Oct. 22, 2020, Nov. 5, 2020, and Dec. 8, 2020. Hixson illegally possessed the firearm - a loaded Glock pistol - on Jan. 4, 2021, the indictment states.
In the other case, MARCUS D. WILLIAMS, 25, of Loves Park, was charged with one count of possessing a firearm that had been converted into a machine gun. According to the indictment, Williams on Jan. 7, 2021, knowingly possessed a loaded Glock .40-caliber firearm that had been converted into a machine gun by an aftermarket “switch” device. Williams is currently in the custody of the Illinois Department of Corrections. His arraignment in federal court has not yet been scheduled.
The indictments were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Gary Caruana, Winnebago County Sheriff; and Dan O’Shea, Chief of the Rockford Police Department. The government is represented in the Hixson case by Assistant U.S. Attorney Talia Bucci, and in the Williams case by Assistant U.S. Attorney Jessica Maveus.
Each of the counts charged in the indictments carry 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.
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.
Suburban Chicago Woman Sentenced to Six and a Half Years in Prison on Federal Labor Trafficking ChargeRead the Press Release
CHICAGO — A suburban Chicago woman who trafficked numerous undocumented immigrants from Guatemala was sentenced today to six and a half years in federal prison.
CONCEPCION MALINEK, 50, of Cicero, Ill., pleaded guilty last year to one count of labor trafficking. From 2009 to 2019, Malinek assisted at least ten undocumented Guatemalan immigrants with illegally entering the U.S. and forced them to work to pay off their debt to her. Malinek threatened the victims with deportation and separation from their children to force the victims to continue to work and pay Malinek the debt she demanded from them.
In addition to the 78-month prison sentence, U.S. District Judge Edmond E. Chang ordered Malinek to pay $112,545 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 U.S. Department of Homeland Security, U.S. Department of Labor, Cook County Sheriff’s Office, and Chicago Police Department.
“Malinek controlled her victims’ every move, knowing their whereabouts at all times, the exact amount of each paycheck she stole from them, and what levers to push and pull to keep them all in line,” Assistant U.S. Attorney Christopher V. Parente argued in the government’s sentencing memorandum. “Malinek knew her victims were scared of deportation and separation from their loved ones far more than they dreaded the abuse and exploitive actions she imposed on them.”
If you believe you are a victim of labor trafficking, you are encouraged to contact the National Human Trafficking Hotline by calling 1-888-373-7888, or logging on to https://humantraffickinghotline.org/.
Source of Firearms for Chicago Gang Members Sentenced to 12 Years in PrisonRead the Press Release
CHICAGO — A man who trafficked firearms and re-sold them to Chicago gang members has been sentenced to 12 years in federal prison.
DAVID SANTIAGO, 39, sold firearms and narcotics out of his residence in the Chicago Lawn neighborhood on Chicago’s Southwest Side. Many of the guns were sold to individuals whom Santiago knew were members of Chicago street gangs. During one sale that was surreptitiously recorded by an individual cooperating with law enforcement, the individual discussed how he intended to give a firearm to younger members of a gang, to which Santiago responded that he was going to provide one to the “guys” as well.
During the investigation law enforcement seized 16 firearms, including rifles and semi-automatic handguns, as well as more than 100 grams of heroin. Santiago purportedly obtained many of the firearms in Kansas and boasted to the Chicago buyers that the guns were “clean” and “brand new.”
Santiago pleaded guilty last year to two counts of illegal possession of firearms. Santiago had previously been convicted of multiple felonies, including four cases involving domestic violence, and was not lawfully allowed to possess a firearm.
U.S. District Judge Robert M. Dow, Jr., imposed the 12-year sentence Thursday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and David Brown, Superintendent of the Chicago Police Department.
“Santiago was running an illegal gun store from his bedroom,” Assistant U.S. Attorney Timothy J. Storino argued in the government’s sentencing memorandum. “The over-proliferation of firearms in this city and the easy access of firearms in the hands of persons who should not have them has a direct correlation to the cyclical gun violence epidemic in Chicago.”
Holding illegal firearm possessors accountable through federal prosecution is also a centerpiece of Project Guardian and Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategies. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Chicago Man Indicted for Allegedly Straw Purchasing Handguns in Suburban StoreRead the Press Release
CHICAGO — A Chicago man has been indicted on a federal firearm charge for allegedly straw purchasing handguns in a suburban store on behalf of another individual.
On July 15, 2020, DARIUS BROWN purchased three handguns from a licensed firearms dealer in Mokena, Ill., and falsely certified on federal forms that he was the actual buyer, according to an indictment unsealed today in U.S. District Court in Chicago. In reality, Brown purchased the guns on behalf of another individual, the charges allege.
Brown, 24, is charged with one count of making a false statement in connection with the acquisition of firearms. He pleaded not guilty today during his arraignment in federal court in Chicago. A status hearing was set for April 30, 2021, before U.S. District Judge John Z. Lee.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The government is represented by Assistant U.S. Attorney Ankur Srivastava.
“Straw purchasers too often play a grave role in enabling the unlawful possession of guns and the violence that can follow,” said U.S. Attorney Lausch. “Our office is committed to working with our law enforcement partners to stop the flow of guns to individuals who cannot legally purchase them.”
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The 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.
Chicago Man Sentenced to Three and a Half Years in Prison for Illegally Possessing Loaded Gun on City’s West SideRead the Press Release
CHICAGO — A Chicago man has been sentenced to three and a half years in federal prison for illegally possessing a loaded handgun in the city’s Austin neighborhood.
ALVIN WASHINGTON, 39, illegally possessed the firearm inside a restaurant in the 5100 block of West Chicago Avenue on May 12, 2020. A Chicago Police Department Police Observation Device (“POD camera”) captured Washington holding the gun between his legs while sitting near a window in the restaurant. CPD officers were dispatched to the restaurant, where they conducted a protective pat-down search of Washington and discovered the loaded gun in his waistband.
Washington had previously been convicted of multiple felonies, including a firearm-related offense, and was not legally allowed to possess the gun.
Washington pleaded guilty earlier this year to one count of illegal possession of a firearm. U.S. District Judge Gary S. Feinerman imposed the 42-month prison sentence Wednesday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, 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 Cook County State’s Attorney’s Office provided valuable assistance.
The government was represented by Assistant U.S. Attorney Saurish Appleby-Bhattacharjee of the U.S. Attorney’s Office’s Gun Crimes Prosecution Team. The team works collaboratively with federal and local law enforcement to enhance the prosecution of illegal firearm possession in certain police districts in Chicago.
Holding illegal firearm possessors accountable through federal prosecution is also a centerpiece of Project Guardian and Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategies. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Man Charged with Threatening Violence Against Federal Judge in ChicagoRead the Press Release
CHICAGO — A man has been indicted on criminal charges for allegedly threatening to assault and murder a federal judge in Chicago.
JOSHUA FARNER, 35, of Marion, Ill., is charged with two counts of mailing threatening communications, and one count of threatening to assault and murder a United States judge. The indictment was returned Monday in U.S. District Court in Chicago. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Marshals Service. The government is represented by Assistant U.S. Attorneys Misty N. Wright, Kartik K. Raman, and Vincenza Tomlinson.
According to the indictment, Farner on April 18, 2016, mailed a letter to the judge in Chicago threatening to assault and murder the judge. The indictment accuses Farner of sending the threatening letter to retaliate against the judge and impede, intimidate, and interfere with the judge’s official duties.
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.
Man Charged with Conducting Illegal Sports Gambling BusinessRead the Press Release
CHICAGO — A man has been charged in federal court with conducting an illegal sports gambling business in Chicago and the suburbs.
JOHN AMABILE, 33, of Melrose Park, Ill., is charged with one count of conducting an illegal gambling business, according to a criminal information filed today in U.S. District Court in Chicago. According to the charge, Amabile conducted an illegal sports bookmaking business in 2018 and 2019 in Chicago, Elmwood Park, and Melrose Park. The information seeks forfeiture from Amabile of $100,000 in alleged criminally derived proceeds.
Arraignment in federal court in Chicago has not yet been scheduled.
The information 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 Tamera Cantu, Acting Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division. The government is represented by Assistant U.S. Attorneys Terry M. Kinney and Ankur Srivastava.
The public is reminded that a charge is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The gambling charge carries a maximum sentence of five years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Suburban Chicago Man Sentenced to More Than 13 Years in Prison for Conspiring to Provide Material Support to ISISRead the Press Release
CHICAGO — A man from a north suburb of Chicago was sentenced today to more than 13 years in federal prison for conspiring to provide material support to the Islamic State of Iraq and al Sham, a foreign terrorist organization also known as ISIS.
U.S. District Judge Andrea R. Wood imposed the 162-month sentence on EDWARD SCHIMENTI, 39, of Zion, Ill. A jury in 2019 convicted Schimenti on one count of conspiring to provide material support and resources to ISIS, and one count of making false statements to the FBI.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; John C. Demers, Assistant Attorney General for National Security; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Zion, Ill., Police Department provided valuable assistance. The case was investigated by the Chicago Joint Terrorism Task Force, which is comprised of numerous federal, state, and local law enforcement agencies. The government was represented by Assistant U.S. Attorneys Barry Jonas and David Rojas of the Northern District of Illinois, and Trial Attorney Alexandra S. Hughes of the National Security Division’s Counterterrorism Section.
Evidence at trial revealed that Schimenti advocated on social media for violent extremism in support of the terrorist group. In 2015, Schimenti began meeting with undercover FBI employees and individuals who, unbeknownst to Schimenti, were cooperating with law enforcement. During the meetings, Schimenti discussed his devotion to ISIS and his commitment to ISIS principles.
In 2017, Schimenti furnished cellular phones to one of the cooperating individuals, believing the phones would be used to detonate explosive devices in ISIS attacks overseas. On April 7, 2017, Schimenti drove with the cooperating individual to O’Hare International Airport in Chicago, with the understanding that the cooperating individual would be traveling to Syria to fight with ISIS.
A co-defendant, JOSEPH D. JONES, 39, of Zion, Ill., was also convicted of the conspiracy charge. Judge Wood last month sentenced Jones to 12 years in federal prison.
Man Sentenced to 162 Months in Federal Prison for Conspiring to Provide Material Support to ISISRead the Press Release
WASHINGTON – An Illinois man was sentenced today to 162 months, the equivalent of 13 ½ years, in prison for conspiring to provide material support to the Islamic State of Iraq and al Sham (ISIS), a foreign terrorist organization.
Edward Schimenti, 39, of Zion was convicted by a federal jury in 2019 on one count of conspiring to provide material support and resources to ISIS, and one count of making false statements to the FBI. According to court documents, Schimenti advocated on social media for violent extremism in support of the terrorist group. In 2015, Schimenti began meeting with undercover FBI employees and individuals who, unbeknownst to Schimenti, were cooperating with law enforcement. During the meetings, Schimenti discussed his devotion to ISIS and his commitment to ISIS principles.
In 2017, Schimenti furnished cellular phones to one of the cooperating individuals, believing the phones would be used to detonate explosive devices in ISIS attacks overseas. On April 7, 2017, Schimenti drove with the cooperating individual to O’Hare International Airport in Chicago, with the understanding that the cooperating individual would be traveling to Syria to fight with ISIS.
Co-defendant, Joseph D. Jones, 39, of Zion was also convicted of a conspiracy charge and sentenced last month to 12 years in federal prison.
U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois, Assistant Attorney General John C. Demers for the Justice Department’s National Security Division, and Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office made the announcement.
The Chicago Joint Terrorism Task Force, which is comprised of numerous federal, state and local law enforcement agencies, investigated the case.
Assistant U.S. Attorneys Barry Jonas and David Rojas of the Northern District of Illinois and Trial Attorney Alexandra S. Hughes of the National Security Division’s Counterterrorism Section prosecuted the case.
Man Who Set Fire to Chicago Police Vehicle During Civil Unrest Pleads Guilty in Federal CourtRead the Press Release
CHICAGO — A man admitted in federal court today that he threw a lit firework into a Chicago Police vehicle during a period of civil unrest in downtown Chicago last May.
JACOB MICHAEL FAGUNDO, 23, of Chicago, pleaded guilty to one count of interfering with a law enforcement officer during the commission of a civil disorder. The charge is punishable by up to five years in federal prison. U.S. District Judge Robert W. Gettleman set sentencing for July 14, 2021, at 10:00 a.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and David Brown, Superintendent of the Chicago Police Department. The Chicago Fire Department provided valuable assistance. The government is represented by Assistant U.S. Attorney John D. Cooke.
Fagundo admitted in a plea agreement that on the evening of May 30, 2020, he and other individuals approached the unoccupied CPD vehicle in a garage at 30 E. Kinzie St. in the city’s River North neighborhood. After Fagundo and the other individuals shattered the vehicle’s rear windshield, Fagundo lit a firework and threw it through the open window, the plea agreement states. The vehicle became engulfed in flames and the Chicago Fire Department was called to extinguish the blaze.
CPD officers had parked the vehicle in the garage while engaged in their official duties during a period of civil disorder in the city. In addition to setting fire to the vehicle, Fagundo spray-painted another Chicago Police vehicle earlier in the day, the plea agreement states.
Fagundo admitted that he bought the fireworks, lighter fluid, and other products a day earlier at a department store in Chicago so that he could bring them to the planned protests downtown.
Justice Department Moves to Intervene in Disability Discrimination Suit Against City of Chicago Regarding Pedestrians with Visual DisabilitiesRead the Press Release
WASHINGTON – The Justice Department today moved to intervene in a disability discrimination lawsuit that private plaintiffs with visual disabilities brought against the City of Chicago under the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act (Section 504). The department’s proposed complaint alleges that the city fails to provide people who are blind, have low vision, or are deaf-blind with equal access to pedestrian signal information at intersections. Pedestrian signal information, such as a flashing “Walk/Don’t Walk” signal, indicates when it is safe to cross the street.
Accessible pedestrian signals (APSs) are devices that provide pedestrians with safe-crossing information in a non-visual format, such as through audible tones, speech messages, and vibrotactile surfaces. Since at least 2006, Chicago has recognized the need to install APSs for pedestrians with visual disabilities. Yet, while Chicago currently provides sighted pedestrians visual crossing signals at nearly 2,700 intersections, it has installed APSs at only 15 of those intersections. The proposed suit alleges that the lack of APSs at over 99 percent of Chicago’s signalized intersections subjects people who are blind, have low vision, or are deaf-blind to added risks and burdens not faced by sighted pedestrians, including fear of injury or death.
“The U.S. Attorney’s Office is taking this action to ensure that Chicagoans with disabilities are provided equal access to city services, particularly those services whose purpose is public safety,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “We are concerned about the serious lack of accessibility to safe intersection crossings for Chicagoans who are blind, have low vision, or are deaf-blind, and we are confident that our involvement in this important case will ultimately bring a meaningful resolution to the city and its millions of residents, daily commuters, and visitors.”
“The ADA and Section 504 require that individuals with disabilities have equal access to public services, including access to pedestrian crossing information that is critical for safety and for full participation in community life,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “Chicago has determined that safe-crossing information is necessary for sighted pedestrians to navigate throughout the city, and this suit seeks to ensure that the city provides the same benefit to people with visual disabilities.”
The motion and complaint seeking intervention were jointly filed by the Disability Rights Section of the department’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Illinois. The case is being handled by Assistant U.S. Attorneys Patrick Johnson and Sarah J. North, and Trial Attorney Matthew Faiella.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Suburban Chicago Man Sentenced to Two and a Half Years in Prison for Illegal Sports Gambling and Tax OffensesRead the Press Release
CHICAGO — A suburban Chicago man was sentenced today to two and a half years in federal prison for conducting an illegal sports gambling business and filing false tax returns.
GREGORY EMMETT PALOIAN conducted his illegal sports bookmaking business in Chicago, Melrose Park, and Elmwood Park. Paloian accepted wagers on the outcome of sporting events, including collegiate games and professional football, basketball, baseball, and hockey games. Paloian retained the services of a website where his bettors could view odds on sporting events, place bets, and track their winnings and losses. Paloian and his agents regularly met with the bettors to collect losses or pay out winnings.
From 2012 to 2018, Paloian caused an accountant to file false tax returns that Paloian knew substantially understated his income, including income derived from the operation of his illegal gambling business. The conduct caused a total loss to the IRS of $172,458, and the Illinois Department of Revenue of $25,238.
Paloian, 66, of Elmwood Park, pleaded guilty earlier this year to one count of conducting an illegal gambling business, and one count of filing a false tax return. U.S. District Judge Joan Humphrey Lefkow imposed the 30-month sentence after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Tamera Cantu, Acting Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division.
“This was a large, high stakes, predatory gambling organization,” Assistant U.S. Attorneys Terry M. Kinney and Ankur Srivastava argued in the government’s sentencing memorandum. “It was a highly lucrative illegal business which generated hundreds of thousands of dollars of revenue for Paloian and his agents during the many years it was in operation.”
Woman Sentenced to 12 Years in Prison for Coercing Members of Church Ministry into Forced LaborRead the Press Release
CHICAGO — The self-appointed bishop of a Pennsylvania ministry has been sentenced to 12 years in federal prison for forcing church members to work certain jobs, pocketing their earnings, and directing them to defraud various hotels.
A jury in 2019 convicted TRACIE DICKEY, also known as “Tracie Williams,” 57, of Pittsburgh, Pa., on wire fraud and labor trafficking charges.
Dickey was a self-appointed bishop of Deliverance Tabernacle Ministries, an organization she founded that proclaimed to offer faith-based services in Pennsylvania, North Carolina, and Florida. She also purported to operate a travel agency known as World Ambassador Travel. Evidence at trial revealed that Dickey recruited young women to become members of the ministry, and directed them to work multiple jobs, including as desk clerks at hotels. She instructed the members on how to have the hotels pay reservation-commission fees to Dickey’s travel agency, even though her agency never actually booked reservations on behalf of the hotel guests. The hotel scheme resulted in at least $66,525 in fraudulent proceeds.
Dickey also collected hundreds of thousands of dollars in wages earned by members of her ministry. Dickey emotionally and physically abused the members and coerced them into following her rules. Dickey’s tactics included starving and humiliating church members, forcing some of them into homelessness, and threatening that God would harm their families if they did not comply with Dickey’s rules. Several of Dickey’s victims testified at trial about their ordeals.
U.S. District Judge Sara L. Ellis imposed the 12-year sentence Monday in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by U.S. Attorney’s Offices in the Northern District of Texas and Middle District of Florida, and the FBI’s Pittsburgh Field Office. The government was represented by Assistant U.S. Attorney Maureen E. Merin.
Suburban Chicago Tax Preparer Charged with COVID-Relief FraudRead the Press Release
CHICAGO – A suburban Chicago tax preparer has been indicted on federal fraud charges for allegedly fraudulently assisting customers in obtaining millions of dollars in loans under the Coronavirus Aid, Relief, and Economic Security Act.
HADI ISBAIH, 39, of Palos Heights, Ill., was charged in an indictment returned Monday in the Northern District of Illinois with four counts of wire fraud. An initial court appearance is scheduled for today at 2:15 p.m. before U.S. Magistrate Judge Beth W. Jantz.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Sharon Johnson, Special Agent-in-Charge of the Central Region of the U.S. Small Business Administration Office of Inspector General. The government is represented by Assistant U.S. Attorney Nicholas J. Eichenseer.
“The relief programs provided by the CARES Act were designed to assist small businesses struggling to survive the COVID-19 pandemic,” said U.S. Attorney Lausch. “Our office is committed to working with our law enforcement partners to root out abuse of these important programs and hold accountable anyone who seeks to fraudulently profit from them.”
“These programs were developed to help out small business owners survive the devastation caused by the COVID-19 pandemic, it’s unfortunate someone thought to take advantage of these programs,” said FBI SAC Buie. “We are honored to work with our law enforcement partners to identify whom those perpetrators are and ensure they pay for their crimes.”
“This indictment is an important victory for America's taxpayers who play by the rules and have no tolerance for those who make up their own," said IRS-CI Acting SAC Cantu. "Those that use the CARES Act relief funds as a free money pot steal vital lifelines from those that need it the most during the COVID-19 crisis and could face criminal prosecution and lengthy prison sentences. IRS Criminal Investigation has committed our resources and provides our financial expertise to pursue COVID-19 fraud of all kinds, and those like Mr. Isbaih will be brought to justice.”
“Falsifying documents to fraudulently gain access to SBA program funds is unconscionable,” said SBA-OIG SAC Johnson. “SBA-OIG will aggressively pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
Two sources of relief established by the CARES Act, which was passed in March 2020, were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan program (EIDL). The programs allowed qualifying small businesses to receive low-interest, government-backed loans to cover a temporary loss of revenue.
According to the indictment, Isbaih owned and operated Flash Tax Service Inc., a tax and investment consulting business in Bridgeview, Ill. From April to October 2020, Isbaih submitted on behalf of hundreds of Flash Tax customers PPP and EIDL applications that contained materially false statements and misrepresentations about the customers’ businesses, such as gross revenues, expenses, and number of employees, the indictment states. Isbaih’s false statements and misrepresentations caused millions of dollars in fraudulently obtained PPP and EIDL funds to be disbursed to those customers, the charges allege.
Isbaih charged Flash Tax customers an upfront fee of approximately several hundred dollars before he submitted the fraudulent applications on the customers’ behalf, the indictment states. If the customers received the PPP or EIDL funds based on those applications, Isbaih charged the customers an additional fee of approximately $1,000, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Anyone with information about attempted fraud involving COVID-19 can report it to the Department of Justice by calling the National Center for Disaster Fraud Hotline at 866-720-5721, or completing a NCDF online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Chicago Man Pleads Guilty to Participating in Illegal Sports Gambling BusinessRead the Press Release
CHICAGO — A Chicago man pleaded guilty in federal court today to participating in an illegal gambling business that involved wagers on professional and collegiate sporting events.
NICHOLAS STELLA, 43, pleaded guilty to one count of conspiracy to conduct an illegal gambling business. The charge is punishable by up to five years in federal prison. U.S. District Judge Virginia M. Kendall set sentencing for June 22, 2021, at 10:00 a.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Terry Kinney, Ankur Srivastava, and Abigail Peluso.
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 Consultant Charged with Federal Tax OffensesRead the Press Release
CHICAGO — A Chicago consultant was indicted today on tax offenses for allegedly underreporting and failing to file federal income taxes.
ANNAZETTE COLLINS, also known as “Annazette Collins-Langston” and “Annazette Collins-Momon-Langston,” 58, of Chicago, is charged with two counts of willfully filing a false individual income tax return, two counts of willfully failing to file a corporate income tax return, and one count of willfully failing to file an individual income tax return. The indictment was returned in U.S. District Court in Chicago. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Sarah E. Streicker, Diane MacArthur, Michelle Kramer, Matthew L. Kutcher, Timothy J. Chapman, and Julia Schwartz.
According to the indictment, Collins willfully filed a false individual tax return for the calendar years 2014 and 2015, and willfully failed to file an individual income tax return for the calendar year 2016. The indictment also accuses Collins of willfully failing to file a corporate income tax return for the calendar years 2015 and 2016 on behalf of her consulting and lobbying business, Chicago-based Kourtnie Nicole Corp.
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 felony count of filing a false individual income tax return is punishable by up to three years in federal prison. The misdemeanor counts of willfully failing to file individual or corporate income tax returns each carry a maximum prison sentence of one year. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.