Northern District of Illinois

CHICAGO — A consultant has been indicted on federal charges for allegedly offering and providing bribes to City of Chicago officials in an effort to benefit his clients.

ROBERTO CALDERO in 2016 offered and arranged for bribes to be provided to a City of Chicago alderman and a Chicago Public Schools employee in exchange for them taking official actions to benefit Caldero’s clients, who were seeking a custodial services contract at CPS, an honorary street name designation in Chicago, and the renaming of a Chicago park, according to an indictment returned Wednesday in U.S. District Court in Chicago.  The benefits Caldero allegedly offered the CPS employee included future employment, champagne, discounted event space for a family event, and admission to an annual benefit for a museum.  To influence the alderman, Caldero arranged for campaign contributions to be made to political organizations affiliated with the alderman or his ward, the indictment states.  Unbeknownst to Caldero, the alderman was cooperating with the FBI and acting at the direction of law enforcement in connection with Caldero’s bribery efforts, the indictment states.

The indictment charges Caldero, 68, of Chicago, with four counts of honest services wire fraud, two counts of federal program bribery, and two counts of using a facility in interstate commerce to facilitate bribery.  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 Chicago Public Schools Office of Inspector General participated in the investigation.  The government is represented by Assistant U.S. Attorneys Matthew Kutcher and Michelle Kramer.

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.

Honest services wire fraud is punishable by up to 20 years in federal prison.  Federal program bribery is punishable by up to ten years.  Using a facility in interstate commerce to facilitate bribery is punishable by up to five years.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A federal grand jury has indicted a suburban Chicago man for allegedly trafficking fentanyl, cocaine, and heroin, and illegally possessing loaded handguns.

A 12-count indictment returned in federal court in Chicago charges DENNIS GERMAN, 34, of Robbins, Ill., with using the firearms in furtherance of his drug-trafficking activities in 2019 and 2020.  The indictment also accuses German of conspiring with two others – NICOLE SCHMIDT, 34, of Midlothian, Ill., and JOHN P. SEIWERT, 40, of Orland Park, Ill. – to traffic cocaine and heroin in Robbins last year.  A fourth defendant – MARCUS WASHINGTON, 23, of Markham, Ill. – is charged in the indictment with trafficking cocaine and illegally possessing a loaded handgun in Robbins in 2019.

German, Seiwert, and Washington are in law enforcement custody, and an arrest warrant has been issued for Schmidt.  Arraignments for German and Washington are set for March 2, 2021, before U.S. District Judge Matthew F. Kennelly.  Arraignment for Seiwert is set for March 5, 2021, before Judge Kennelly.

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 U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives in Chicago.  Substantial assistance was provided by the Midlothian Police Department, Orland Park Police Department, and Dolton Police Department.  The government is represented by Assistant U.S. Attorneys Maureen Merin and Ramon Villalpando.

“Fentanyl, heroin, and cocaine are extremely potent drugs that have wreaked havoc in too many of our communities,” said U.S. Attorney Lausch.  “We will continue to focus our efforts on individuals and groups who traffic these dangerous drugs and prosecute those offenders in federal court.”

“Individuals who possess firearms in furtherance of drug trafficking activity pose a significant threat to public safety,” said ATF SAC deTineo.  “We will continue to investigate individuals in partnership with the United States Attorney’s Office to ensure the safety of the community.”

The charges in the indictment and the maximum sentence for each count are as follows:

• German: Two counts of possession of a firearm in furtherance of a drug trafficking crime (life in prison, with a mandatory minimum of five years); four counts of possession of a controlled substance with intent to deliver (20 years); one count of maintaining a residence for the purpose of manufacturing and distributing a controlled substance (20 years); two counts of illegal possession of a firearm as a previously convicted felon (ten years); and one count of conspiracy to possess a controlled substance with intent to deliver (20 years).
• Schmidt: One count of possession of a controlled substance with intent to deliver (20 years); and one count of conspiracy to possess a controlled substance with intent to deliver (20 years).
• Seiwert: One count of conspiracy to possess a controlled substance with intent to deliver (20 years).
• Washington: One count of possession of a controlled substance with intent to deliver (20 years); and one count of illegal possession of a firearm as a previously convicted felon (ten years).

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

CHICAGO — A federal grand jury has indicted a Chicago man for allegedly transporting a minor from Wisconsin to Illinois to engage in commercial sex acts.

The two-count federal indictment charges WILLIAM MCBETH, also known as “Tony,” 35, with sex trafficking of a minor and transporting that victim from Wisconsin to Illinois for purposes of prostitution.  The sex trafficking count is punishable by a minimum prison sentence of ten years and a maximum term of life, while the transportation charge is punishable by up to ten years.  McBeth is currently in law enforcement custody.  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 Chicago Police Department provided valuable assistance.  The government is represented by Assistant U.S. Attorney Michelle Petersen.

According to the indictment and a criminal complaint previously filed in the case, the minor victim was 15 years old in December 2015 when McBeth enticed her to engage in commercial sex acts in the Chicago area.  McBeth transported her to various locations in Chicago and the surrounding suburbs to engage in commercial sex acts, and on at least one occasion brought her from Wisconsin back to Illinois for that purpose, according to the charges.

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.

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

CHICAGO — A man has been found guilty in federal court of conspiring to steal cash from an automated-teller machine in Chicago during a period of civil unrest last spring.

On the evening of June 1, 2020, RICKIE FOY, 38, of Chicago, joined several others in attempting to break into a Bank of America ATM located in a grocery store parking lot at 620 W. 63rd St. in the city’s Englewood neighborhood.  Over the course of approximately eight minutes, Foy and the others used various tools to try to gain access to the machine and steal cash, but they were unsuccessful.  Chicago Police officers arrived at the scene and arrested Foy and two others after a foot chase.

U.S. District Judge Thomas M. Durkin on Tuesday found Foy guilty of conspiracy to commit bank theft.  A one-day bench trial had been conducted last week entirely via videoconference. 

The conviction is punishable by up to five years in federal prison.  Judge Durkin set sentencing for May 11, 2021, at 10:00 a.m.

The guilty verdict was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorneys Ramon Villalpando and Matthew Madden.

Two other individuals were charged with participating in the conspiracy.  They pleaded not guilty and are awaiting trial.

CHICAGO — A Chicago man has been arrested and charged in federal court with carjacking after he allegedly took a vehicle from a victim in Orland Park and fired a shot at a police officer who was pursuing him.

DAVID JOHNSON, 23, of Chicago, is charged with one count of carjacking in connection with the Friday evening incident.  Johnson made an initial court appearance Tuesday before U.S. Magistrate Judge Jeffrey T. Gilbert and was ordered to remain detained in federal custody.  A preliminary hearing was set for Feb. 26, 2021, at 11:30 a.m.

The complaint and arrest 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, and Explosives; Jason Reid, Chief of the Oak Forest Police Department; David Brown, Superintendent of the Chicago Police Department; and Joseph Mitchell, Chief of the Orland Park Police Department.  The government is represented by Assistant U.S. Attorneys Sheri Wong and Scott Edenfield.

According to a criminal complaint filed in U.S. District Court in Chicago, the victim on Friday evening was sitting in his car parked on the street outside of his home in Orland Park when Johnson approached, pointed a gun at the victim’s head, and demanded the key.  Johnson stole the vehicle and drove it to Chicago, where he crashed into another car in the city’s Morgan Park neighborhood, the complaint states.  Johnson then fled on foot and fired a shot at an Oak Forest Police officer who was pursuing him, the complaint states.  Chicago Police officers arrested Johnson a short time later.

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.

CHICAGO — A suburban Chicago man has been arrested for allegedly illegally possessing a loaded handgun and dealing crack cocaine.

LARRY DENNIS, 36, of Markham, is charged with one count of possession of a controlled substance with intent to distribute, and one count of illegal possession of a firearm as a previously convicted felon, according to a criminal complaint unsealed Thursday in U.S. District Court in Chicago.  The complaint alleges that Dennis on three occasions last month sold suspected crack cocaine to an individual who, unbeknownst to Dennis, was cooperating with law enforcement.  Dennis also illegally possessed the loaded handgun in his residence on Jan. 20, 2021, the complaint states.  Dennis had previously been convicted of multiple state felonies, including robbery and firearm offenses, and was not lawfully allowed to possess a gun.

Dennis was arrested Thursday on the federal charges.  He appeared today before U.S. Magistrate Judge Jeffrey T. Gilbert and was ordered to remain detained in federal custody.

The complaint and arrest 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, and Explosives; and Daniel Delaney, Chief of the Midlothian Police Department.  Valuable assistance in the investigation was provided by the Markham Police Department, Dolton Police Department, and Orland Park Police Department.  The government is represented by Assistant U.S. Attorney Saurish Appleby-Bhattacharjee. 

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 drug charge is punishable by a maximum sentence of 20 years in federal prison, while the firearm count carries a maximum sentence of ten years.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A suburban Chicago man has been sentenced to nine years in federal prison for sharing videos of child pornography with users of an online messaging application.

AUSTIN BURCHERT, 22, of Elk Grove Village, possessed on his cell phone more than 3,000 images and approximately 54 videos of children engaged in sexually explicit conduct.  Under the screenname “so_raven_,” Burchert on Feb. 12, 2018, shared 13 such images and one video file in a chat group on the Kik online messaging application.  There were approximately 50 people in the chat group at the time, including an undercover law enforcement agent.

Burchert pleaded guilty last year to a federal charge of transportation of child pornography.  In addition to the nine-year prison sentence, U.S. District Judge Jorge L. Alonso on Tuesday ordered Burchert to pay $65,000 in restitution to the known victims depicted in the pornographic images and videos.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Richard S. Fitzgerald, Acting Special Agent-in-Charge of the Chicago office of Homeland Security Investigations.  Substantial assistance in the investigation was provided by the Elk Grove Village Police Department, Illinois Attorney General’s Office, and Deerfield Police Department.  The government was represented by Assistant U.S. Attorneys Misty N. Wright and Esther Mignanelli.

“The defendant’s crime contributed to the perpetual victimization of hundreds of children by contributing to the ever-growing market for the creation and distribution of child pornography,” Assistant U.S. Attorney Misty N. Wright argued in the government’s sentencing memorandum.  “Defendant’s victims and their parents have to live with the fact that these photos and videos depicting their abuse were shared and may be viewed for years to come by pedophiles.”

“Let this sentence serve as a reminder that HSI is committed to standing firmly in the way of those who prey on and exploit our most vulnerable population – our children,” said HSI Acting SAC Fitzgerald.  “HSI will continue to work closely with our law enforcement and judicial partners to identify and bring to justice individuals who commit these very serious crimes.”

If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing & Exploited Children at 1-800-843-5678, or log on to http://www.missingkids.com.  The service is available 24 hours a day, seven days a week.

CHICAGO — The former operator of a suburban Chicago nightclub has been charged in federal court with assisting in the preparation and submission of false corporate income tax returns for six years.

ALICIA ARNOLD willfully assisted in the preparation and submission of false and fraudulent income tax returns for the calendar years 2012 to 2017 for Arnie’s Idle Hour, the nightclub Arnold operated in Harvey, Ill., according to a criminal information filed Feb. 5, 2021, in U.S. District Court in Chicago.  Each of the false tax returns substantially underreported the nightclub’s gross receipts and sales, the information states.

Arnold, 51, of Las Vegas, Nev., and formerly of Homer Glen, Ill., pleaded not guilty today at her arraignment before U.S. Magistrate Judge Jeffrey T. Gilbert.  A status hearing was set for March 3, 2021, at 10:30 a.m., before U.S. District Judge Jorge L. Alonso.

The charges were 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 Internal Revenue Service Criminal Investigation Division in Chicago; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Thomas J. Dart, Cook County Sheriff.   The government is represented by Assistant U.S. Attorneys Grayson Walker and Maureen Merin.

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

CHICAGO — The Department of Justice has recognized Ronald DeWald, an Assistant U.S. Attorney for the Northern District of Illinois, for his outstanding work in support of the Project Safe Neighborhood (PSN) initiative. 

PSN is a nationwide initiative that brings together law enforcement, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them.  Through the annual PSN Achievement Awards, the Department of Justice recognizes outstanding individual efforts in achieving safety and security in the United States.  The Department in 2020 bestowed on Mr. DeWald an award for “Outstanding Individual Contribution to the PSN Program,” in recognition of his work designing and overseeing violent crime reduction strategies in Chicago and throughout northern Illinois.

“Ron DeWald has served the citizens of the Northern District of Illinois and the United States with tremendous distinction,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois.  “Violent crime can only be addressed with a multi-disciplinary effort involving federal, state, and local law enforcement, community members, and other stakeholders.  Ron’s dedication has fostered these important relationships, and for that we owe him a debt of gratitude.”

Mr. DeWald has been an AUSA in Chicago for more than 15 years.  In his current position as Counsel to the U.S. Attorney for Violent Crime, Mr. DeWald was instrumental in establishing and leading the office’s various violent crime efforts, including its Gun Crimes Prosecution Team, an initiative that has led to a substantial increase in the effectiveness of federal firearm prosecutions since its inception in 2018. 

Mr. DeWald has taught courses at the Chicago Police Academy on federal firearm prosecutions, and he leads the Northern District’s PSN Forums, where state parolees are warned of the consequences of recidivism and presented with offers of social services.  Research has found that ex-offenders who attend a notification meeting in Chicago are 30% less likely to commit a new offense than those who did not attend a meeting.

CHICAGO — A man has been arrested for allegedly robbing a Chicago bank and holding a customer at gunpoint.

CHRISTOPHER PORTER, 49, of Chicago, is charged with one count of bank robbery for allegedly robbing a Fifth Third Bank branch, 3957 W. 26th St. in Chicago’s Little Village neighborhood, on Feb. 4, 2021.  Porter made an initial court appearance Friday before U.S. Magistrate Judge Maria Valdez.  He waived his right to a detention hearing and was ordered to remain in federal custody.

According to a criminal complaint and affidavit filed in U.S. District Court in Chicago, Porter entered the bank shortly after 5:00 p.m. and demanded that a teller place cash in a bag.  Porter then put a customer in a headlock, pointed a gun at the customer’s head, and repeatedly said he would shoot the customer if the teller did not comply with his demand, the complaint states.  The teller put cash in a bag and handed it to Porter, who fled the bank, the complaint states.  The FBI arrested Porter later that evening in the parking lot of a Chicago apartment complex about four miles from the bank.

The arrest and complaint were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorney Paige A. Nutini.

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 robbery charge is punishable by up to 20 years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A procurement supervisor at the Jesse Brown Veterans Affairs Medical Center in Chicago pocketed kickbacks from the president of a medical supply company to steer the company at least $1.7 million in product orders, many of which were never fulfilled, according to an indictment returned in federal court in Chicago.

The indictment accuses THOMAS E. DUNCAN, a supervisor in the medical center’s Central Supply department, of receiving approximately $36,250 in kickbacks paid by checks, as well as an additional amount in cash, from DANIEL DINGLE, the president of a medical supply company based in south suburban Dolton.  The checks were made payable to Helping Hands Properties LLC – a third-party entity managed by Duncan – and contained false and misleading memo entries in order to conceal and disguise the existence and purpose of the kickbacks, the indictment states.  In exchange for the kickbacks, Duncan used his official position at the VA to fraudulently initiate and approve purchases of products from Dingle’s company, knowing that many of the products would not be delivered to the VA, the indictment states.

The alleged fraud scheme began in 2012 and continued until 2019.  In late 2018 and early 2019, while the Veterans Affairs Inspector General’s Office was investigating the matter, Duncan told Dingle to falsely tell investigators that the payments Duncan received from Dingle’s company were for work performed by Helping Hands Properties, the indictment states.

The indictment was returned Thursday in U.S. District Court in Chicago.  It charges Duncan, 37, of Chicago, with five counts of wire fraud, one count of witness tampering, and one count of falsifying records.  Dingle, 50, of Riverdale, is charged with four counts of wire fraud.  Arraignments in federal court in Chicago have not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Gregg Hirstein, Special Agent-in-Charge of the U.S. Department of Veterans Affairs, Office of Inspector General.  The government is represented by Assistant U.S. Attorney Heidi Manschreck.

“These charges demonstrate the VA OIG’s commitment to protecting American taxpayers,” said Special Agent-in-Charge Hirstein.  “Individuals and companies involved in corrupting the VA’s business practices will be held accountable.”

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

ROCKFORD — A Rockford man was sentenced Wednesday by U.S. District Judge John Z. Lee to nine years in federal prison for drug trafficking and illegally possessing a firearm as a convicted felon. 

BRIAN KOTLIENTHONG, 33, pleaded guilty to the charges on Aug. 13, 2020.  According to a written plea agreement, Kotlienthong distributed a total of approximately 83.6 grams of cocaine to an individual in Rockford in December 2017.  Kotlienthong, who had previously been convicted of a felony and was prohibited from possessing a firearm, admitted that on Feb. 8, 2018, he illegally possessed a 9mm rifle and sold it to an individual.  Kotlienthong also admitted in the plea agreement that on Dec. 21, 2017, he possessed and sold a 9mm pistol and approximately 27.6 grams of cocaine, and on March 26, 2018, he possessed and sold another 9mm pistol while showing approximately one pound of marijuana that he offered to sell.

The sentencing 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 & Explosives. The investigation was conducted by ATF and the Stateline Area Narcotics Team, which includes law enforcement officers and agents from the Illinois State Police and Ogle County Sheriff’s Office.  The government was represented by Assistant U.S. Attorney Talia Bucci.

ROCKFORD — A Rockford man has been sentenced to eleven years in federal prison on a drug trafficking charge. 

ROMEO TRAMMELL, 32, pleaded guilty to the charge on Sept. 4, 2020.  According to a written plea agreement, Trammell distributed approximately 24.8 grams of cocaine base - in the form of crack cocaine - to an individual in Rockford on Apr. 5, 2018. 

U.S. District Judge John Z. Lee imposed the sentence Wednesday in federal court in Rockford.

The sentencing 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 Daniel O’Shea, Chief of the Rockford Police Department.  The government was represented by Assistant U.S. Attorney Talia Bucci.

CHICAGO — A suburban Chicago man pleaded guilty in federal court today to conducting an illegal sports gambling business and laundering the proceeds through an offshore company.

VINCENT DELGIUDICE, also known as “Uncle Mick,” 55, of Orland Park, pleaded guilty to one count of conspiracy to commit money laundering, which is punishable by up to 20 years in federal prison, and one count of conducting an illegal gambling business, which is punishable by up to five years.  U.S. District Judge Virginia M. Kendall did not immediately set a sentencing date.  A status hearing was set for March 8, 2021.

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 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.

Delgiudice admitted in a plea agreement that from 2016 to 2019 he directed an illegal bookmaking business in Chicago, Lemont, Frankfort, Orland Park, and Woodridge.  Delgiudice and his agents accepted wagers on the outcome of professional football, basketball, baseball, and hockey games, as well as collegiate sporting events, the plea agreement states.  Delgiudice further admitted that he retained the services of a company in Costa Rica to manage the accounting, recordkeeping, and website management of his bookmaking operation, and that in 2018 and 2019 he sent the company at least $113,625 to promote the continued operation of the illegal gambling business.

CHICAGO — A federal grand jury has indicted a real estate developer and three others for allegedly participating in a mortgage fraud scheme that defrauded financial institutions out of at least $3 million.

ANDRZEJ LAJEWSKI, who owned Des Plaines-based Highland Consulting Corp., and Chicago-based Quality Management and Remodeling Inc., schemed with two mortgage professionals and the owner of a remodeling company to fraudulently obtain at least $3 million in mortgage loans by making and causing to be made materially false representations to financial institutions regarding the buyers’ qualifications for the loans, according to an indictment returned Jan. 28, 2021, in U.S. District Court in Chicago.  The false representations concerned the buyers’ employment history, income, assets, source of down payment, and intention to occupy the properties, the indictment states.  In some instances Lajewski fraudulently claimed to lenders that the buyers were employed by his companies – even though he knew that was untrue – to help the buyers qualify for the mortgage loans, the indictment states.

The alleged fraud scheme lasted from 2010 to 2016 and involved numerous properties on the South Side of Chicago.

The indictment charges multiple counts of financial institution fraud against Lajewski, 53, formerly of Wheeling, the two mortgage professionals – loan originator AGNIESZKA SIEKOWSKI, 46, of Northbrook, and loan processor ALDONA BOBROWICZ, 45, of Arlington Heights – and the home remodeler, ANDRZEJ BUKOWSKI, 66, formerly of Wheeling.  Arraignments for Siekowski and Bobrowicz are scheduled for Friday at 10:00 a.m. before U.S. District Judge Martha M. Pacold.  Arraignments for Lajewski and Bukowski have not yet been scheduled.  

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Brad Geary, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General.  The government is represented by Assistant U.S. Attorneys Kalia Coleman and Jason Yonan.

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.

CHICAGO — A Chicago man has been charged in federal court with carjacking for allegedly violently taking a vehicle from a victim last summer.

OMARION FRANKLIN, 18, carjacked an Infiniti G35 sedan from a victim in Skokie on July 12, 2020, according to an indictment returned Monday in U.S. District Court in Chicago.  The indictment charges Franklin with one count of carjacking, which is punishable by up to 15 years in federal prison.

Franklin is currently in law enforcement custody.  Arraignment in U.S. District 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.  Valuable assistance was provided by the Cook County State’s Attorney’s Office, Skokie Police Department, and Chicago Police Department.  The government is represented by Assistant U.S. Attorney Michael Kelly.

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.

The United States has filed a complaint seeking to bar a Chicago-area tax return preparer from preparing federal income tax returns for others, the Justice Department announced today.

The civil complaint against Lavon Boyd was filed in the U.S. District Court for the Northern District of Illinois and alleges that Boyd prepared federal income tax returns for Chicago-area taxpayers that significantly understated his customers’ tax liabilities by fabricating business losses. The suit alleges that Boyd fabricated or exaggerated his customers’ business expenses. The suit also charges that Boyd allegedly fabricated child care expenses on at least one of his customers’ tax returns.

According to the complaint, the Internal Revenue Service (IRS) interviewed 15 of Boyd’s customers, each of whom stated that they did not incur the business expenses reported on their returns prepared by Boyd on their behalf, nor did they give Boyd any reason to believe that such expenses were legitimate. The complaint further alleges that, by repeatedly understating his customers’ tax liabilities, Boyd has caused the United States to lose substantial tax revenue.

Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant (more information can also be found here). The IRS has information on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In addition, IRS Free File, a public-private partnership, offers free, online tax preparation and filing options on IRS-partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free.

In the past decade, the Department of Justice's Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

CHICAGO — A Chicago investment manager who fled the country after being charged in a fraud scheme has been returned to the United States from Indonesia.

MARCUS BEAM was indicted in January 2020 on charges he fraudulently obtained money from women he met online.  According to the indictment, Beam falsely claimed to the women and other investors that their funds would be invested in stocks such as Uber and Lyft.  Beam instead spent the money for his own personal benefit, including rent, auto loans, and retail purchases, resulting in a loss to investors of at least $500,000, the indictment alleges.

Beam, 50, of Woodridge, fled the United States after being released on bond in January 2020.  The U.S. Marshals Service located Beam in Bali, Indonesia, and he was detained there in July 2020 on an INTERPOL Red Notice by the Indonesia National Police, National Central Bureau, and INTERPOL.  On Jan. 27, 2021, Beam was deported from Indonesia and returned in custody to Chicago.  He pleaded not guilty to ten counts of wire fraud and mail fraud during his arraignment Wednesday afternoon before U.S. Magistrate Judge Heather K. McShain in Chicago.

The arraignment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration; Tanya Solov, Director of the Illinois Securities Department of the Illinois Secretary of State; and David Gelement, Chief Deputy U.S. Marshal.  The government is represented by Assistant U.S. Attorney Jacqueline Stern.

The officials acknowledged the substantial assistance of the news media whose coverage generated leads prior to Beam’s apprehension in Indonesia.  The officials also acknowledged the substantial assistance of the Indonesian National Police, National Central Bureau, INTERPOL, the Directorate General of Immigration, and the Bali Regional Police.  The Justice Department’s Office of International Affairs provided assistance in securing the defendant’s return from Indonesia.

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 20 years in prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

Download Beam indictment

CHICAGO — A federal grand jury has indicted a Chicago man on carjacking and firearm charges for allegedly violently taking vehicles in Chicago and Cicero and attempting to steal another in Oak Park.

JAHEIM HENYARD, 19, stole a Dodge Charger from an Uber Eats driver in Chicago on Aug. 14, 2020, and a Kia Optima Hybrid LX from a victim in Cicero on Aug. 20, 2020, according to a seven-count indictment returned Tuesday in U.S. District Court in Chicago.  Henyard also attempted to steal a Mercedes GLC 300 by brandishing a firearm at a victim in Oak Park on July 17, 2020, but was unsuccessful, the indictment states.

The indictment also accuses Henyard and two others – DARIUS YOUNG and XAVIER TATE – of participating in the robbery of a UPS truck in Oak Park on Aug. 21, 2020.  During the robbery, the UPS driver was ordered to lay face down in the street while the offenders removed boxes from the truck and drove off, according to a criminal complaint previously filed in the case.

The indictment charges Henyard with two counts of carjacking, two counts of robbery, one count of attempted carjacking, and one count of using, carrying, and brandishing a firearm during a crime of violence.  Young, 25, of Berwyn, and Tate, 23, of Chicago, are charged with robbery.  Tate also faces a firearm count for allegedly illegally possessing a semiautomatic handgun in Chicago on the same day as the UPS heist.  Arraignments in federal court in Chicago have not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The Chicago Police Department, Oak Park Police Department, and Cicero Police Department participated in the investigation.  The Cook County State’s Attorney’s Office provided valuable assistance.  The government is represented by Assistant U.S. Attorneys Charles W. Mulaney, Timothy Storino, and Albert Berry III.

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

“Carjackers have long terrorized our local communities with acts of violence, but through the combined efforts of our police, federal, and prosecutorial partners we are bringing perpetrators to justice,” said FBI SAC Buie.

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 carjacking and attempted carjacking counts are each punishable by up to 15 years in federal prison.  The charge against Henyard for brandishing a firearm during a crime of violence carries a minimum prison term of seven years and a maximum term of life, which must be served consecutive to the sentence imposed for the underlying carjacking offense.  The maximum sentence for robbery is 20 years.  The firearm charge against Tate is punishable by up to ten years.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A Lake County man has been charged in federal court with attempted carjacking for allegedly trying to violently carjack a vehicle at a north suburban golf course last summer.

ZAYVEON THOMAS, 19, of Beach Park, attempted to hijack a 2018 Lexus IS300 sedan from a victim in a parking lot of the golf course in Glencoe on July 2, 2020, according to an indictment returned Monday in U.S. District Court in Chicago.  The indictment charges Thomas with one count of attempted carjacking, which is punishable by up to 15 years in federal prison.  Thomas is currently in law enforcement custody.  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 Cook County State’s Attorney’s Office provided valuable assistance.  The government is represented by Assistant U.S. Attorney Michael Kelly.

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

CHICAGO —A Chicago man has been indicted on federal criminal charges for allegedly conspiring with a U.S. Postal Service employee and others to sell U.S. government checks stolen from the mail.

An indictment returned Monday in federal court in Chicago charges AKEEM KOSOKO, 26, with one count of conspiracy to steal mail and government funds, three counts of embezzlement of government property, and three counts of receipt of stolen mail.  Arraignment has not yet been scheduled.

According to the indictment, Kosoko conspired with his brother, who worked as a postal carrier, and others to have U.S. Treasury checks taken from the mail and sold to others.  The checks were issued last year as part of the Coronavirus Aid, Relief, and Economic Security Act.  Kosoko’s brother, AHMED KOSOKO, 35, of Chicago, was previously charged by federal criminal complaint with one count of conspiracy to steal mail and government funds.

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; Andre Martin, Special Agent-In-Charge of the Chicago Great Lakes Area Field Office of the U.S. Postal Service Office of Inspector General; William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government is represented by Special Assistant U.S. Attorney M. Claire Nicholson.

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

ROCKFORD — A former employee of the City of Rochelle was charged today with fraudulently obtaining at least $150,000 from a non-profit business association.

SCOTT KOTESKI, 58, of Rochelle, is charged with one count of wire fraud, according to a criminal information filed in U.S. District Court in Rockford.  Arraignment has not yet been scheduled. 

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

According to the information, Koteski was selected by the city to sit on the board of directors of a non-profit business association that provided broadband internet technology to smaller municipalities in northern Illinois.  Starting in 2011, Koteski was selected as the treasurer of that association.  As treasurer, Koteski handled the invoicing and billing of the member municipalities, and as of February 2012 had signatory authority on the association’s bank account.  According to the information, 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 allegedly wrote numerous checks to himself from the association’s bank account and deposited them into his personal bank account for his personal benefit. 

Koteski concealed his acts by writing false information on the memo line to make it appear the checks were for reimbursement of personal monies Koteski spent for the association when, in fact, Koteski was not entitled to reimbursement, the information states.  In 2018, Koteski made online payments from the association’s bank account to a credit card company to pay balances on his personal credit card, and to an online loan financing company to pay balances on Koteski’s loan, the information states.

Wire fraud carries a maximum sentence of 20 years’ imprisonment.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

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

CHICAGO — A convicted felon from Chicago has been sentenced to eleven years in federal prison for illegally possessing a loaded gun and offering to pay witnesses to lie on his behalf.

RAMONE SHAFFERS illegally possessed the handgun and extended magazine on Oct. 16, 2016, in a parked car in the Woodlawn neighborhood on the South Side of Chicago.  Shaffers had previously been convicted of a felony and was not legally allowed to possess a firearm. 

Three passengers were in the car at the time of Shaffers’s illegal possession.  After Shaffers was arrested, he directed individuals to offer payment to the passengers in exchange for giving false testimony to law enforcement.

A federal jury in December 2019 convicted Shaffers, 38, on one count of illegal possession of a firearm by a felon, and one count of obstruction of justice.  U.S. District Judge John J. Tharp, Jr., imposed the sentence Tuesday 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.

“Standing alone, the defendant’s possession of a firearm with a serial number plate removed and an extended magazine, is a serious crime,” Assistant U.S. Attorneys Albert Berry III and Kavitha J. Babu argued in the government’s sentencing memorandum.  “However, the defendant went further.  In a selfish effort to absolve himself, the defendant attempted to disrupt the administration of justice.” 

Holding convicted felons accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods and Project Guardian – 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 PSN and Guardian programs to attack a broad range of violent crime issues facing the district, particularly firearm offenses.

The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice announced a settlement today that will require Midwest Can Company, one of the largest manufacturers of portable fuel containers in the United States, to pay a $1.7 million civil penalty to resolve Clean Air Act violations.

The violations resulted from failure to disclose test results showing that Midwest’s portable fuel containers did not meet regulatory standards and emitted higher amounts of pollutants than allowed by federal law. Under the terms of the settlement, Midwest will also conduct two supplemental emission tests in the next four years on its currently certified co-extruded plastic portable fuel containers and submit complete results from those tests to the EPA.

“Today’s settlement with Midwest Can Company marks the Justice Department’s first enforcement action against portable fuel container manufacturers under the Clean Air Act,” said Jonathan D. Brightbill, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. “This settlement helps maintain the integrity of regulations governing portable fuel containers and ensures that manufacturers who are responsible for complying with the rules do not gain an unfair competitive advantage from subverting regulatory requirements.”

“The defendant submitted false and incomplete information to the EPA and prevented EPA from timely implementing and enforcing regulations intended to protect public health and our air,” said Susan Bodine, EPA’s Office of Enforcement and Compliance Assurance Assistant Administrator. “EPA will continue to enforce against companies that fail to comply with information submission obligations.”

“We are pleased to announce this settlement with Midwest Can Company, one of the largest manufacturers of portable fuel containers in the United States,” said John Lausch Jr., U.S. Attorney for the Northern District of Illinois. “In paying a significant penalty and agreeing to perform supplemental testing, Midwest Can Company will be held accountable for its disregard of proper testing and reporting procedures in violation of the Clean Air Act.”

Clean Air Act regulations require that all portable fuel containers sold in the United States must be covered by a certificate of conformity issued by EPA confirming that the containers meet emission limits for volatile organic compounds (VOCs). The complaint filed simultaneously with the settlement alleges that Midwest violated the Clean Air Act because its 2014  applications for certificates of conformity failed to disclose test results showing that the portable fuel containers did not meet regulatory standards and emitted higher amounts of VOCs than allowed by federal law.

EPA discovered the violations following a series of investigative actions from 2016-2018. In 2016, EPA conducted emission testing on five of Midwest’s portable fuel containers sold under the 2014 certificates of conformity. All five containers failed the emission test. EPA proceeded in 2017 to inspect the test lab utilized by Midwest to conduct emission testing of its portable fuel containers. In 2018, EPA received and reviewed additional information from the test lab, which revealed the violations related to Midwest’s applications for certificates of conformity.

VOCs include a variety of chemicals that may produce adverse health effects such as eye, nose, and throat irritation, headaches, nausea, and damage to the liver, kidney, and the central nervous system. VOCs also contribute to the formation of ground level ozone. Breathing ozone can trigger a variety of health problems, particularly for children, the elderly, and anyone with lung diseases such as asthma. Ground level ozone can also have harmful effects on sensitive vegetation and ecosystems.  

The consent decree has been lodged with the U.S. District Court for the Northern District of Illinois and is subject to public comment for a period of at least 30 days. Notice of the lodging of the consent decree will appear in the Federal Register, allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.

Members of the public can help protect our environment by identifying and reporting environmental violations.  Learn more here:  https://www.epa.gov/enforcement/report-environmental-violation-general-information.

WASHINGTON – The U.S. Environmental Protection Agency and the U.S. Department of Justice today announced a settlement that will require Midwest Can Company, one of the largest manufacturers of portable fuel containers in the United States, to pay a $1.7 million civil penalty to resolve Clean Air Act violations.

The violations resulted from failure to disclose test results showing that Midwest’s portable fuel containers did not meet regulatory standards and emitted higher amounts of pollutants than allowed by federal law. Under the terms of the settlement, Midwest will also conduct two supplemental emission tests in the next four years on its currently certified co-extruded plastic portable fuel containers and submit complete results from those tests to the EPA.

“We are pleased to announce this settlement with Midwest Can Company, one of the largest manufacturers of portable fuel containers in the United States,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “In paying a significant penalty and agreeing to perform supplemental testing, Midwest Can Company will be held accountable for its disregard of proper testing and reporting procedures in violation of the Clean Air Act.”

“Today’s settlement with Midwest Can Company marks the Justice Department’s first enforcement action against portable fuel container manufacturers under the Clean Air Act,” said Jonathan D. Brightbill, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. “This settlement helps maintain the integrity of regulations governing portable fuel containers and ensures that manufacturers who are responsible for complying with the rules do not gain an unfair competitive advantage from subverting regulatory requirements.”

“The defendant submitted false and incomplete information to the EPA and prevented EPA from timely implementing and enforcing regulations intended to protect public health and our air,” said Susan Bodine, EPA’s Office of Enforcement and Compliance Assurance Assistant Administrator. “EPA will continue to enforce against companies that fail to comply with information submission obligations.”

Clean Air Act regulations require that all portable fuel containers sold in the United States must be covered by a certificate of conformity issued by EPA confirming that the containers meet emission limits for volatile organic compounds (VOCs). The complaint filed simultaneously with the settlement alleges that Midwest violated the Clean Air Act because its 2014 applications for certificates of conformity failed to disclose test results showing that the portable fuel containers did not meet regulatory standards and emitted higher amounts of VOCs than allowed by federal law.

EPA discovered the violations following a series of investigative actions from 2016 to 2018. In 2016, EPA conducted emission testing on five of Midwest’s portable fuel containers sold under the 2014 certificates of conformity. All five containers failed the emission test. EPA proceeded in 2017 to inspect the test lab utilized by Midwest to conduct emission testing of its portable fuel containers. In 2018, EPA received and reviewed additional information from the test lab, which revealed the violations related to Midwest’s applications for certificates of conformity.

VOCs include a variety of chemicals that may produce adverse health effects such as eye, nose, and throat irritation, headaches, nausea, and damage to the liver, kidney, and the central nervous system. VOCs also contribute to the formation of ground level ozone. Breathing ozone can trigger a variety of health problems, particularly for children, the elderly, and anyone with lung diseases such as asthma. Ground level ozone can also have harmful effects on sensitive vegetation and ecosystems.  

The consent decree has been lodged with the U.S. District Court for the Northern District of Illinois and is subject to public comment for a period of at least 30 days. Notice of the lodging of the consent decree will appear in the Federal Register, allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.

Members of the public can help protect our environment by identifying and reporting environmental violations.  Learn more by logging on to https://www.epa.gov/enforcement/report-environmental-violation-general-information.

CHICAGO — The former chief financial officer of a suburban IT consulting firm has been indicted on federal fraud charges for allegedly embezzling more than $1.3 million in company funds.

ANTHONY FREMAREK fraudulently caused funds from two of the Schaumburg-based company’s bank accounts to be used to pay his personal credit cards, according to an indictment unsealed Jan. 14, 2021, in U.S. District in Chicago.  Fremarek attempted to conceal the embezzlement by falsifying entries in the company’s accounting system to disguise the payments as seemingly legitimate business expenses, the indictment states.  The alleged fraud scheme spanned from 2013 to 2019.

The indictment charges Fremarek, 49, of Plainfield, with four counts of wire fraud and two counts of making false statements to a financial institution.  Fremarek has pleaded not guilty to the charges. 

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Christopher Diiorio, Special Agent-in-Charge of the U.S. Secret Service Chicago Field Office.  The government is represented by Assistant U.S. Attorney Ashley A. Chung.

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 carries a maximum sentence of 30 years in federal prison, while each count of wire fraud is punishable by up to 20 years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A former executive of a Silicon Valley video streaming service has been indicted by a federal grand jury in Chicago for allegedly engaging in a “pump and dump” stock fraud scheme.

While serving as a director of San Jose, Calif.-based Nanotech Entertainment Inc. (“NTEK”), DAVID FOLEY schemed with an investment manager to manipulate purchases and sales of shares in NanoTech Gaming Inc. (“NTGL”), a Las Vegas, Nev.-based business that had formerly operated as a division of NTEK, according to a ten-count indictment returned Jan. 11, 2021, in U.S. District in Chicago.  The indictment charges Foley, 55, of Los Gatos, Calif., and the investment manager, BENNIE BLANKENSHIP, 49, of New Carlisle, Ohio, with wire fraud and securities fraud.  Arraignments are scheduled for Jan. 19, 2021, at 10:00 a.m., before U.S. District Judge Steven C. Seeger.

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

According to the indictment, Foley acquired shares in NTGL and fraudulently caused them to be unrestricted.  Blankenship promoted the NTGL shares by exaggerating the stock’s prospects for success, thereby artificially inflating the share price, the indictment states.  Foley then schemed with others to sell the pumped-up stock to the investing public, the indictment states.  The fraud scheme lasted from 2013 to 2016, and during a portion of that time Foley was incarcerated in California on an unrelated criminal conviction, 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.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

ROCKFORD — A Rockford man was arrested Thursday on a federal arson charge for allegedly setting fire to a local retail business. 

SEAN CARDENAS, 20, was indicted on Jan. 12, 2021, by a federal grand jury in Rockford on one count of maliciously damaging and destroying, and attempting to damage and destroy, by means of fire, a building at 6260 E. State St. in Rockford.  The alleged arson occurred on May 30, 2020.  

Cardenas pleaded not guilty at his arraignment Thursday afternoon before U.S. District Judge Steven C. Seeger.  Cardenas was ordered to remain in federal custody until a detention hearing on January 19, 2021, at 11:30 a.m.

The indictment and arrest were 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 & Explosives.  The Rockford Police Department and Rockford Fire Department assisted in the investigation.  The government is represented by Assistant U.S. Attorney Jessica S. Maveus.

The arson charge carries a mandatory minimum sentence of five years in federal prison and a maximum sentence of 20 years, in addition to a fine of up to $250,000.  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 a charge and is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

ROCKFORD — A Rockford man was indicted Tuesday by a federal grand jury on charges of producing child pornography and committing felony sex offenses while he was required to register as a sex offender. 

GARY WILSON, 50, was charged with four counts of producing child pornography via the internet and one count of committing a felony offense involving a minor when he was required to be registered as a sex offender.

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 Rockford Police Department assisted in the investigation.  The government is represented by Assistant U.S. Attorney Michael D. Love.

According to the indictment, between June 2018 and April 2019 Wilson knowingly enticed four minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct, and then transmitting the depiction via the internet.  The indictment also alleges that the production of child pornography by Wilson occurred while he was required to be registered as a sex offender.

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 producing child pornography carries a mandatory minimum sentence of 15 years in federal prison and a maximum of 30 years.  The count of committing a felony offense involving a minor carries a mandatory minimum sentence of ten years in federal prison that must be served after any sentence for production of child pornography is completed.

ROCKFORD — A Freeport man was indicted Tuesday by a federal grand jury on charges related to sexual conduct with a minor. 

ERICH M. BRINKMEIER, 25, was charged with two counts of travel with intent to engage in illicit sexual conduct with a minor and one count of committing a felony offense involving a minor when he was required to be registered as a sex offender.

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 Matt Summers, Chief of the Freeport Police Department.  The Rockford Police Department assisted in the investigation.  The government is represented by Assistant U.S. Attorney Michael D. Love.

According to the indictment, Brinkmeier on Oct. 28, 2019, and Nov. 4, 2019, traveled from Illinois to Iowa with the intent of engaging in a sexual act with a 14-year-old child.  The indictment also alleges that the interstate travel and sexual acts with a child by Brinkmeier occurred while he was required to be registered as a sex offender.

Each count of travel with intent to engage in illicit sexual conduct with a minor carries a maximum penalty of up to 30 years in federal prison, and a fine of up to $250,000.  The count of committing a felony offense involving a minor carries a mandatory minimum prison sentence of ten years that must be served after any sentence on the travel counts is completed.  If Brinkmeier is convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

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

ROCKFORD — A man from Lake in the Hills, Ill. was indicted Tuesday by a federal grand jury on charges of traveling in interstate commerce for the purpose of engaging in illicit sexual conduct with a minor. 

KEVIN R. DUFFY, 35, was charged with four counts of traveling in interstate commerce for the purpose of engaging in illicit sexual conduct with a minor who was 15 years old and at least four years younger than Duffy. 

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 Lake in the Hills Police Department assisted in the investigation.  The government is represented by Assistant U.S. Attorney Jessica S. Maveus.

According to the indictment, Duffy traveled from Illinois to Kentucky on June 25, 2020, July 3, 2020, Aug. 5, 2020, and Oct. 1, 2020, with the intent to engage in sexual conduct with the minor.  Duffy has been in law enforcement custody since his arrest on Nov. 18, 2020.

Each count in the indictment carries a maximum penalty of up to 30 years in federal prison, and a fine of up to $250,000.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

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

CHICAGO — An Elk Grove Village man has been sentenced to 16 years in federal prison for trying to kill a postal carrier on New Year’s Eve 2018.

CAMERON RUEBUSCH shot the U.S. Postal Service carrier on Dec. 31, 2018, in Elk Grove Village.  The mail carrier had recently completed a delivery in the 200 block of West Brantwood Avenue when Ruebusch approached the USPS vehicle and tapped on the front passenger side door.  The mail carrier attempted to drive away as Ruebusch fired multiple shots from a handgun.  The mail carrier was wounded but survived.

Ruebusch, 25, pleaded guilty last year to one count of attempted second-degree murder of an employee of the United States, and one count of knowingly discharging a firearm during a crime of violence.  In handing down the sentence on Jan. 8, 2021, U.S. District Judge Matthew F. Kennelly found that Ruebusch obstructed justice after the shooting by disposing of the gun, discarding the clothing he had been wearing, and instructing friends to lie to law enforcement about his whereabouts.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.  The Elk Grove Village Police Department provided substantial assistance.

“The seriousness of defendant’s crime cannot be overstated — he nearly killed a USPS mail carrier who was merely carrying out his official duties in delivering mail on New Year’s Eve,” Special Assistant U.S. Attorney Chester Choi argued in the government’s sentencing memorandum.  “Defendant’s actions were brazen, callous, and cowardly, and demonstrated a complete disrespect for the law.”

CHICAGO — A suburban Chicago man was arrested today on a federal criminal charge for allegedly threatening to commit violence at the upcoming presidential inauguration in Washington, D.C.

LOUIS CAPRIOTTI, 45, of Chicago Heights, Ill., is charged with transmitting a threat in interstate commerce, according to a criminal complaint filed in U.S. District Court in Chicago.  Capriotti was arrested near his home this morning.  He is scheduled to make an initial court appearance today at 3:30 p.m. CST before U.S. Magistrate Judge Gabriel A. Fuentes.

The complaint and arrest 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 Christopher Diiorio, Special Agent-in-Charge of the U.S. Secret Service Chicago Field Office.  The U.S. Capital Police provided valuable assistance in the investigation.  The government is represented by Assistant U.S. Attorney William Dunne.

In a Dec. 29, 2020, voicemail for a U.S. House member from New Jersey, Capriotti allegedly stated that if certain individuals “think that Joe Biden is going to put his hand on the Bible and walk into that [expletive] White House on January 20th, they’re sadly [expletive] mistaken.”  Capriotti further stated in the voicemail, “We will surround the [expletive] White House and we will kill any [expletive] Democrat that steps on the [expletive] lawn,” the complaint alleges.  According to the complaint, Capriotti has a history of leaving profane voicemails for members of Congress. 

“Our office takes the security of our public servants very seriously,” said U.S. Attorney Lausch.  “Individuals who cross the line of free speech by making unlawful threats will be held accountable.” 

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

CHICAGO — A suburban Chicago man has pleaded guilty in federal court to laundering cash proceeds from a telemarketing scheme that defrauded elderly victims.

HIRENKUMAR P. CHAUDHARI, 27, of Des Plaines, Ill., pleaded guilty on Jan. 6, 2021, to one count of money laundering.  The conviction is punishable by up to 20 years in federal prison.  U.S. District Judge Sara L. Ellis set sentencing for April 1, 2021.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; J. Russell George, Inspector General of the Treasury Department Inspector General for Tax Administration; William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Gail S. Ennis, Inspector General of the Social Security Administration; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  The government is represented by Assistant U.S. Attorneys Kartik K. Raman and Rick D. Young.

Chaudhari admitted in a plea agreement that he used a phony Indian passport, false name, and false address to open multiple bank accounts in the United States to receive money from victims of the telemarketing scheme.  The scheme involved phone calls from people falsely claiming to be associated with, among other agencies, the Social Security Administration and U.S. Department of Justice, stating that a victim’s identity had been stolen and that it was necessary to transfer money to various bank accounts, including the accounts opened by Chaudhari.  One of the victims was an elderly woman from Massachusetts who transferred a total of more than $900,000 from her bank and retirement accounts to accounts controlled by Chaudhari or others. 

On April 19, 2018 – one day after Chaudhari opened an account and received a $7,000 transfer from the Massachusetts victim – Chaudhari entered a bank branch in Chicago and withdrew $6,500, the plea agreement states.  Chaudhari admitted in the plea agreement that he engaged in this financial transaction knowing that the money represented proceeds of unlawful activity.

If you believe you or someone you know is a victim of elder fraud, complaints may be filed with the Federal Trade Commission online at www.ftccomplaintassistant.gov, or by calling 877-FTC-HELP.  More information about the Department of Justice’s efforts to help seniors is available at its Elder Justice Initiative webpage.

CHICAGO – A suburban Chicago businessman has been indicted on federal fraud charges for allegedly fraudulently obtaining more than $420,000 in small business loans under the Coronavirus Aid, Relief, and Economic Security Act.

CARLOS SMITH, 56, of Park Forest, Ill., allegedly engaged in fraud related to the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan Program (EIDL), two sources of relief under the CARES Act.  Smith was charged in an indictment unsealed Tuesday in the Northern District of Illinois with two counts of wire fraud, one count of making false statements to a financial institution, and one count of money laundering.  Arraignment is set for Jan. 14, 2021, at 11:00 a.m., before U.S. District Judge Manish S. Shah.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Hannibal Ware, Inspector General of the U.S. Small Business Administration.  The government is represented by Assistant U.S. Attorney Kelly Greening.

“The Paycheck Protection Program and the Economic Injury Disaster Loan Program were designed as lifelines for 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 the important relief programs established under the CARES Act.”

Pursuant to the CARES Act, a PPP loan allows the interest and principal to be forgiven if businesses spend a certain amount of the proceeds on essential expenses, such as payroll, rent, and utilities, while the EIDL provides loan assistance or grants to cover working capital and other operating expenses.

According to the indictment, Smith applied for and obtained $270,000 in PPP funds for CLS Financial Services Inc., an Indiana-based company that he owned.  In his loan application, Smith stated that the company had 61 employees and an average monthly payroll of $108,000, even though Smith knew the company had no actual employees and no payroll expenses, the indictment states.  Smith also fraudulently represented in the application that he was not convicted of a felony criminal offense within the last five years, even though he knew he had been convicted of such an offense, the indictment states.

Smith similarly obtained $151,900 in EIDL loans by stating in the application that his company had two employees and $1.8 million in gross revenue last year, even though he knew the company had no such employees or revenue, the indictment states.

The public is reminded that an indictment contains only charges and is not evidence of guilt.  The defendant is presumed innocent until proven guilty beyond a reasonable doubt.  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 filing an online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

CHICAGO — The former office manager of a southwest suburban construction company has been charged with fraud for allegedly embezzling more than $2.3 million in company funds.

MILDRED H. CROWLEY fraudulently opened a corporate credit card and used it to charge the Lemont-based company for personal expenses, according to a criminal information filed Dec. 29, 2020, in U.S. District in Chicago.  Crowley’s personal expenses included payments related to a private horse farm and horse show, as well as restaurant meals, department store purchases, and travel throughout the United States, the information states.  Crowley concealed the thefts by falsifying the company’s books and records to misrepresent her unauthorized use of the corporate card, the information states.  The alleged fraud scheme spanned from 2009 to 2020.

The information charges Crowley, 72, of Bourbonnais, Ill., with one count of wire fraud.  Arraignment in U.S. District 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; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorney John D. Mitchell.

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

CHICAGO — A federal investigation into child labor trafficking has resulted in additional criminal charges against a couple residing in a Chicago suburb who allegedly forced two undocumented Guatemalan children to provide labor and services for the couple’s private financial gain.

SANTOS TEODORO AC-SALAZAR, 24, and OLGA CHOC LAJ, 31, both of whom resided in Aurora, are charged with conspiracy to conceal, harbor, and shield from detection the two children, who were 15 years old and approximately ten years old when they entered the United States in 2019, according to an indictment returned in U.S. District Court in Chicago.  The indictment also charges the defendants with individual harboring counts in connection with both victims, a forced labor charge relating to the younger victim, and a forced labor charge that was previously filed earlier this year in relation to the older victim.

The defendants are in law enforcement custody.  Arraignments are scheduled for Dec. 30, 2020, at 11:00 a.m., before U.S. Magistrate Judge M. David Weisman.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago.  Substantial assistance in the investigation has been provided by the Kane County State’s Attorney’s Office, the Aurora Police Department, and the Illinois Department of Children and Family Services.  The government is represented by Assistant U.S. Attorney Prashant Kolluri.

According to the indictment, Ac-Salazar and Choc Laj are Guatemalan citizens who agreed to separately enter the United States unlawfully.  The pair used smugglers and third parties to locate the victims in Guatemala as the children with whom the pair would unlawfully enter into the U.S., the indictment states.  Once in the U.S., Ac-Salazar and Choc Laj allegedly harbored the victims in a residence in Aurora by, among other things, failing to enroll the victims in school, prohibiting them from leaving the residence except in limited circumstances, and instructing them to provide false information to third parties, including law enforcement authorities.  Ac-Salazar and Choc Laj also are alleged to have forced the victims to provide labor and services for the couple’s private financial gain.

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

CHICAGO — With multiple Covid-19 vaccines recently becoming available, the U.S. Attorney’s Office is warning residents of northern Illinois to be on the lookout for fraud schemes.

Members of the public should be suspicious of unexpected or unsolicited contact from anyone unknown to them claiming to have information about a Covid-19 vaccine, said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois.  Scammers often use telemarketing calls, text messages, social media postings, and door-to-door visits to perpetrate fraud.  The fraudsters may falsely offer the vaccine or early access to it, in exchange for money or personal identifying information, such as Social Security numbers or medical history. 

“Unfortunately, ruthless criminals are attempting to take advantage of unsuspecting people anxious to receive a Covid-19 vaccine,” said U.S. Attorney Lausch.  “Any unsolicited offer to gain an advantage in connection with a Covid-19 vaccine is likely a scam.  My office is working closely with our law enforcement partners to hold accountable anyone who seeks to commit fraud in connection with Covid-19 vaccinations.”

To obtain accurate information about the vaccine, members of the public are encouraged to contact their health care provider directly.  U.S. Attorney Lausch also offered additional tips to help stay vigilant and avoid scammers:

• Do not click on links from sources you do not know.  These links could be attempts to download viruses onto your computer or cell phone.
• Ignore online or phone offers for Covid-19 vaccinations.  Actual health care providers will not ask you for money or personal identifying information over the phone or online.
• Never send money or disclose your Social Security number, date of birth, bank account or credit card numbers to unfamiliar persons.  The vaccine will likely be offered free of charge in the United States, and you cannot pay to put your name on a list to obtain it.

Additional information about Covid-19 can be found by logging on to http://www.justice.gov/coronavirus.  Anyone wishing to report fraud related to a Covid-19 vaccine can do so by logging on to http://www.oig.hhs.gov/coronavirus or by calling 1-800-447-8477.

CHICAGO —An employee of a Chicago company conspired with a New Jersey man to steal computer equipment from the company and sell it to businesses in California and Texas, according to charges in a federal indictment.

DONALD WILSON worked for the Chicago company as a data center engineer.  From 2015 to 2018, Wilson conspired with IVAN SIERRA to steal computer servers, hard drives, and other information technology equipment from the company’s facilities in Chicago and Secaucus, N.J., the indictment states.  Sierra then worked to sell the stolen equipment to businesses in Chatsworth, Calif., and Stafford, Texas, for a total of more than $500,000 the indictment states.

The indictment was returned Thursday in federal court in Chicago.  It charges Wilson, 42, of Carol Stream, Ill., and Sierra, 38, of Lincroft, N.J., with one count of conspiracy to transport stolen goods, and two counts of transportation of stolen goods.  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 Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorney John Mitchell.

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 count is punishable by a maximum sentence of five years in federal prison, while each transportation 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.

ROCKFORD — A South Beloit man has been sentenced to 26 years in federal prison, to be followed by a lifetime of supervised release, on charges of producing child pornography.

ADRIAN C. PETERS, 27, pleaded guilty to the charges on Dec. 12, 2019.  Peters admitted in a written plea agreement that from 2012 to 2014 he enticed seven minor victims, ranging in age from 14 to 17, to engage in sexually explicit conduct for the purpose of producing a recording on computers.  Peters then transmitted some of the videos via the internet.  The minor victims were from Illinois, Wisconsin, and Arizona.

U.S. District Judge Matthew F. Kennelly imposed the sentence Thursday in federal cout in Rockford.

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 Winnebago County Sheriff’s Office and the South Beloit Police Department assisted in the investigation.  The government was represented by Assistant U.S. Attorney Michael D. Love.

CHICAGO — A former Illinois attorney withheld more than $137,000 in payroll taxes from his employees’ paychecks but failed to remit the money to the IRS, according to a criminal charge filed in federal court in Chicago.

ADAM TRACY, 43, of Wheaton, is charged with one count of willful failure to pay taxes to the IRS.  Arraignment is set for Dec. 21, 2020, at 11:00 a.m., before U.S. District Judge Edmond E. Chang.

The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorney Matthew Getter.

According to a criminal information filed Tuesday in U.S. District Court in Chicago, Tracy operated Securities Compliance Group Ltd., a Wheaton-based law and consulting practice that also did business as “Clearing Link LLC,” “Wabash Capital Advisors Ltd.,” “Guanwei Recycling Corporation,” and “The Tracy Firm. Ltd.”  From 2014 to 2018, Tracy’s company withheld $137,403.76 in payroll taxes from employees’ paychecks but willfully failed to pay the money to the IRS, the information states.  For much of that time, the company also failed to file quarterly employment tax returns (Forms 941) with the IRS, the information states.

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

CHICAGO — A Chicago man has been sentenced to more than four years in federal prison for illegally possessing a loaded semi-automatic handgun in the city’s Chicago Lawn neighborhood.

LASHON NORFLEET, 43, illegally possessed the firearm in the 7100 block of South Albany Avenue on the evening of March 20, 2018.  Chicago Police officers pulled over Norfleet’s vehicle because it had inoperable brake lights.  Norfleet was unable to provide a valid driver’s license, and during further questioning the officers discovered the loaded gun in his waistband.

Norfleet had previously been convicted of multiple felonies, including two firearm-related offenses, and was not legally allowed to possess the gun.

Norfleet pleaded guilty last year to the federal charge of illegal possession of a firearm.  U.S. District Judge Manish S. Shah on Tuesday imposed a 54-month prison sentence.

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 Kalia Coleman.

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 — A Chicago man has been sentenced to more than eight years in federal prison for illegally possessing a loaded semi-automatic handgun in the city’s North Lawndale neighborhood.

MARKELL THOMAS, 35, illegally possessed the firearm in the 1300 block of South Spaulding Avenue on the morning of Feb. 5, 2019.  Chicago Police officers observed Thomas holding the gun and attempted to arrest him, but he fled in a vehicle.  During the pursuit, Thomas tossed the gun out of the car.  He later exited the vehicle and was arrested in the 2900 block of West Arthington Street, approximately one mile from where the chase began.  Police recovered the handgun along a sidewalk in the 3100 block of West Fillmore Street.  

As a four-time convicted felon, Thomas was not legally allowed to possess a firearm.

Thomas pleaded guilty in July to one count of illegal possession of a firearm.  In a plea agreement, Thomas admitted that he also illegally possessed a rifle on Sept. 29, 2018, at a gun range in Lombard, Ill. 

U.S. District Judge Robert W. Gettleman on Tuesday imposed a 100-month prison sentence.

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.

“Defendant’s actions on that cold February day put at risk not only his own well-being but also the safety and well-being of the officers who pursued him, as well as dozens of other citizens of the Northern District,” Assistant U.S. Attorney Aaron R. Bond argued in the government’s sentencing memorandum.  “Such actions by defendant demonstrate a complete lack of respect for not only the law but also the community around him, especially the law-abiding citizens who must continually deal with the plague and despair that illegal firearms bring to their streets, schools, friends, family, and neighbors.”

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 — A suburban Chicago man was arrested on a federal firearm charge after law enforcement this week seized machine guns and more than 100 “switch” devices from his home.  Each device is capable of converting a semi-automatic pistol into a machine gun.

LEONARD D. JOHNSON, also known as “Scrap,” 32, of Robbins, is charged with one count of illegal possession of a machine gun.  Johnson was arrested Monday after agents from the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives executed a search warrant at his home.  The agents seized five firearms, including three machine guns, and approximately 117 “switch” devices, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. 

Johnson made an initial court appearance Tuesday before U.S. Magistrate Judge Jeffrey T. Gilbert in Chicago and was ordered to remain in federal custody.  A detention hearing is scheduled for Friday at 1:00 p.m.

The arrest 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 ATF.  Valuable assistance was provided by the Lansing Police Department and Midlothian Police Department.  The government is represented by Assistant U.S. Attorney Charles W. Mulaney.

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.

“Machine guns pose a dangerous threat to public safety and have no place on Chicago-area streets,” 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.”

“This case is an excellent example of continued partnership,” said ATF SAC deTineo.  “ATF agents, in coordination with local law enforcement and federal prosecutors, will investigate and prosecute those in possession of these illegal firearms.”

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

CHICAGO — Former Illinois attorney EDWARD R. VRDOLYAK was sentenced today to 18 months in federal prison for assisting another lawyer in evading taxes on income received from a multi-billion dollar legal settlement with tobacco companies.

U.S. District Judge Robert M. Dow, Jr., imposed the sentence after a hearing in federal court in Chicago.  Vrdolyak, 82, of Chicago, pleaded guilty last year to one count of tax evasion.

The sentence 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 was represented by Assistant U.S. Attorney Amarjeet S. Bhachu and Special Assistant U.S. Attorney Michael T. Donovan.

Vrdolyak admitted in a plea agreement that he assisted another lawyer, co-defendant DANIEL P. SOSO, in evading federal income taxes owed by Soso.  The income was derived from attorney fees received in connection with a $9.2 billion settlement between the State of Illinois and a number of tobacco companies in the 1990s.  At the time of the settlement, Vrdolyak and Soso were licensed Illinois attorneys.  The pair collected legal fees from the settlement pursuant to agreements with one of the attorneys that represented the State of Illinois.  Pursuant to these agreements, Vrdolyak made payments to Soso between 2000 and 2005 of approximately $1,925,830, representing Soso’s agreed-upon share of the fees from the litigation.

In August 2005, the IRS served a notice of levy on Vrdolyak, which required the turnover of all salary, wages and other amounts owed to Soso.  Over the next two years, Vrdolyak received approximately $262,854 due Soso, but he concealed receipt of these funds from the IRS, knowing such concealment would assist Soso in evading the payment of taxes and assessments.  Vrdolyak admitted in the plea agreement that he later caused approximately $170,242 to be paid to Soso instead of remitting the funds to the IRS.

Soso, of Alsip, also pleaded guilty to tax evasion.  Judge Dow in March sentenced Soso to two years in prison.

CHICAGO — A Chicago man was sentenced today to 14 months in federal prison for illegally structuring nearly $350,000 in cash deposits in an effort to evade federal reporting requirements.

In 2015 and 2016, ANTUANE KING made at least 37 deposits of less than $10,000 each at seven financial institutions, including the Chicago Firefighters Credit Union.  The deposits were structured in an effort to evade federal reporting rules, which require financial institutions to notify the U.S. Department of the Treasury about transactions of more than $10,000.  After making all of the structured cash deposits, King later combined all of the money to purchase three residences in the south suburbs of Chicago.

A federal jury earlier this year convicted King, 49, on two counts of structuring a currency transaction.  U.S. District Judge Jorge L. Alonso 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 Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. 

“The structuring laws are in place for a good reason: they help law enforcement ferret out serious criminal activity that could otherwise go undetected,” Assistant U.S. Attorneys Christopher V. Parente and Esther S. Mignanelli argued in the government’s sentencing memorandum.  “The defendant knew he was committing a crime each time he went to a bank and structured the cash deposits.”

CHICAGO — A convicted felon has been sentenced to more than five years in federal prison for illegally possessing a loaded handgun in the West Garfield Park neighborhood of Chicago.

LARRY CARADINE, 30, of Chicago, illegally possessed the firearm in the 4700 block of West Monroe Street on the afternoon of Oct. 26, 2018.  Chicago Police officers observed Caradine drop the gun onto the ground.  As an eight-time convicted felon, Caradine was not legally allowed to possess a firearm.  Caradine was on parole at the time of the offense after recently serving a two-year sentence for a state narcotics conviction.

Caradine pleaded guilty to the federal charge last year.  U.S. District Judge John Robert Blakey imposed a 63-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 possession of illegal weapons by convicted felons is contributing to the cycle of violence that continues on a daily basis in this city,” Assistant U.S. Attorney Christopher V. Parente argued in the government’s sentencing memorandum.  “Despite repeated criminal convictions and repeated sentences of imprisonment, the defendant continues to escalate his criminal behavior and continues to break the law.”

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 — A north suburban man was sentenced today to a year in federal prison for operating an illegal sports bookmaking business and filing false income tax returns.

DOMENIC POETA, 63, of Highland Park, unlawfully operated a business that provided sports betting and wagering services, both domestically and abroad.  From 2012 to 2017, Poeta obtained more than $3.7 million from the operation of his bookmaking business.  Poeta failed to report his receipt of this income in the federal and state tax returns that he filed for each of those years, resulting in a federal and state tax loss of approximately $1,486,363.

Poeta pleaded guilty earlier this year to one count of transmission of wagering information and one count of filing a false tax return.  U.S. District Judge Matthew F. Kennelly imposed the sentence in federal court in Chicago.

The sentence 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 Internal Revenue Service Criminal Investigation Division in Chicago; and John Crawford, Special Agent-in-Charge of the Chicago Regional Office of the Federal Deposit Insurance Corporation, Office of Inspector General.  The government is represented by Assistant U.S. Attorney Patrick King.

CHICAGO — The owner of Chicago-area child care centers and several of her employees fraudulently schemed to pocket more than $6.1 million from a State of Illinois program designed to help low-income families afford child care, according to an indictment returned in federal court.

ALEESHA McDOWELL owned child care providers A&A Kiddy Kollege Inc. in Calumet City, A&A Kiddy Kollege 2 in Calumet Park, and Kreative Kidz Academy Inc., Kreative Kidz Academy II Inc., and Kreative Kidz Academy III Inc. in Chicago.  From 2012 to 2020, McDowell schemed with four directors of her centers and others to defraud the Illinois Department of Human Services’ Child Care Assistance Program by submitting and causing the submission of materially false information, including fraudulent paystubs and income verification letters, regarding a parent’s eligibility to qualify for state subsidy payments, the indictment states.  McDowell and the co-schemers also assisted parents in completing false IDHS applications that fraudulently caused the state to issue subsidy payments to the centers, the indictment alleges.  As a result of the scheme, the defendants caused IDHS to suffer a loss of at least $6.1 million, the indictment states.

The charges accuse McDowell of spending some of the criminally derived money on a 2017 Bentley Bentayga and a house in Mokena, Ill.

McDowell, 41, of Mokena, is charged with 12 counts of wire fraud and two counts of money laundering.  Also charged with wire fraud are NICOLE LACEY, 36, of Burnham, Ill., who worked as director at AAKK and AAKK-2 (ten counts); STACY SIMS, 43, of Chicago, director at KKA-2 (two counts); JANELLE JORDAN, 40, of Chicago, director at KKA-3 (three counts); LAUREN COLEY, 40, of Phoenix, Ariz., director at AAKK and KKA (two counts); SHAVON JOHNSON, 47, of Country Club Hills, Ill. (four counts); and SEAN BLUNT, 44, of Matteson, Ill. (two counts).

The indictment was ordered unsealed on Monday.  Most of the defendants have made initial appearances in federal court in Chicago.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Anthony Mohatt, Special Agent-in-Charge of the Midwest Regional Office of the U.S. Department of Agriculture, Office of Inspector General in Chicago.  The government is represented by Assistant U.S. Attorneys Matthew Hernandez and Kate McClelland.

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

The Justice Department today filed a lawsuit against the Village of Hinsdale, Illinois, alleging disability discrimination in violation of the Fair Housing Act.  

The lawsuit, filed in the U.S. District Court for the Northern District of Illinois, alleges that Hinsdale has discriminated and continues to discriminate by prohibiting group homes for persons with disabilities from operating in single-family residential districts, and by failing to provide reasonable accommodations to its zoning code for such homes. The case arose when Hinsdale prohibited a group home for persons with disabilities in recovery from drug or alcohol addiction to operate and refused to consider the home’s request for an accommodation.

“Denying people access to housing because of their disabilities is not just wrong. It’s illegal,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Fair Housing Act prohibits local governments from applying their zoning laws in a manner that discriminates against persons with disabilities. The Fair Housing Act also prohibits this kind of ‘not in my backyard’ attitude towards individuals with disabilities. The Civil Rights Division will continue to enforce the Fair Housing Act vigorously so that municipalities do not erect illegal barriers that preclude group homes for residents with disabilities from operating in single-family neighborhoods.”

“Access to housing free from discrimination is a right afforded to all Americans under the Fair Housing Act,” said U.S. Attorney John R. Lausch, Jr. of the Northern District of Illinois. “This lawsuit is an example of the Department’s continuing effort to enforce anti-discrimination laws that protect those rights.”

The department’s lawsuit seeks a court order prohibiting Hinsdale from discriminating against the home at issue in this case or other group homes for persons with disabilities. The lawsuit also seeks monetary damages for persons harmed by Hinsdale’s actions, as well as payment of a civil penalty.

The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the civil rights laws it enforces is available at www.justice.gov/crt. Individuals who believe that they have been victims of housing discrimination may call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected], or submit a report online at civilrights.justice.gov.

The complaint contains allegations of unlawful conduct. The allegations in the complaint must be proven in court.