Northern District of Illinois
Press releases recorded for this federal judicial district.
Chicago Man Charged in Federal Court with CyberstalkingRead the Press Release
CHICAGO — A Chicago man was arrested today on a federal criminal charge for allegedly cyberstalking and harassing a former romantic partner.
A criminal complaint filed in U.S. District Court in Chicago charges VINCENT STORME, 32, with cyberstalking. Storme made an initial court appearance this afternoon before U.S. Magistrate Judge Sunil R. Harjani and was ordered to remain in federal custody. Judge Harjani scheduled a detention hearing for Friday at 1:30 p.m.
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. Valuable assistance was provided by the Chicago Police Department and Cook County State’s Attorney’s Office. The government is represented by Assistant U.S. Attorney Shoba Pillay.
According to the complaint, Storme began a campaign of threats and harassment against the victim after she ended their relationship. Storme accessed the victim’s social media accounts without her knowledge to obtain private messages and data, including nude photographs of the victim, which he then disseminated to her family, friends, and co-workers, the complaint states. Storme also created a website and social media accounts bearing the victim’s name, and used them to further embarrass and harass the victim, the complaint states.
Cyberstalking is punishable by up to five years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that 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.
Chicago Tech Executive Charged with Illegally Exporting Computer Equipment to PakistanRead the Press Release
A Chicago-area resident who owns a Pakistani technology company has been indicted for allegedly illegally exporting computer equipment from the United States to a nuclear research agency of the Pakistani government.
Obaidullah Syed owned Pakistan-based Business System International Pvt. LTD., and Chicago-based BSI USA. The companies provided high-performance computing platforms, servers, and software application solutions. From 2006 to 2015, Syed and Business System International conspired with company employees in Pakistan to violate the International Emergency Economic Powers Act by exporting computer equipment from the United States to the Pakistan Atomic Energy Commission without obtaining the required authorization from the U.S. Department of Commerce, according to an indictment returned in the U.S. District Court in Chicago. The Pakistan Atomic Energy Commission, according to the indictment, was a Pakistani government agency responsible for “the design, fabrication, and testing of high explosives and nuclear weapons parts, uranium mining and enrichment, and the development of solid-fueled ballistic missiles.”
The indictment charges Syed, 65, of Northbrook, and Business System International with one count of conspiracy to violate the International Emergency Economic Powers Act and foreign trade regulations, and one count of violating the International Emergency Economic Powers Act. Syed was arrested Wednesday, Sept. 16, 2020, and remains in federal custody. A detention hearing is scheduled for today at 1:00 p.m. CDT before U.S. Magistrate Judge M. David Weisman in Chicago.
The indictment was announced by Assistant Attorney General for National Security John C. Demers, John R. Lausch, Jr., U.S. 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; Dan Clutch, Special Agent-in-Charge of the U.S. Department of Commerce, Bureau of Industry and Security-Office of Export Enforcement, Chicago Field Office; and Cynthia Bruce, Special Agent-in-Charge of the U.S. Department of Defense, Defense Criminal Investigative Service, Southeast Field Office. The government is represented by Assistant U.S. Attorney Peter M. Flanagan.
According to the indictment, Syed, Business System International and the other conspirators falsely represented to U.S.-based computer manufacturers that the illegal shipments were intended for Pakistan-based universities, Syed’s business, or Syed himself, when, in fact, the conspirators knew that the true end user and ultimate consignee of each shipment was either the Pakistan Atomic Energy Commission or a research institute that trained the agency’s engineers and scientists, the indictment states. In so doing, according to the indictment, Syed and his company caused the U.S.-based computer manufacturers to submit to the U.S. government shipping documents, including Shippers Export Declarations, that listed false end-users for the U.S.-origin goods, thereby undermining the U.S. government’s ability to stop the illegal shipments.
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 violating the International Emergency Economic Powers Act carries a maximum sentence of 20 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Chicago Tech Executive Charged with Illegally Exporting Computer Equipment to PakistanRead the Press Release
CHICAGO —A Chicago-area resident who owns a Pakistani technology company has been indicted for allegedly illegally exporting computer equipment from the United States to a nuclear research agency of the Pakistani government.
OBAIDULLAH SYED owned Pakistan-based BUSINESS SYSTEM INTERNATIONAL PVT. LTD., and Chicago-based BSI USA. The companies provided high-performance computing platforms, servers, and software application solutions. From 2006 to 2015, Syed and Business System International conspired with company employees in Pakistan to violate the International Emergency Economic Powers Act by exporting computer equipment from the United States to the Pakistan Atomic Energy Commission without obtaining the required authorization from the U.S. Department of Commerce, according to an indictment returned in U.S. District Court in Chicago. The Pakistan Atomic Energy Commission, according to the indictment, was a Pakistani government agency responsible for “the design, fabrication, and testing of high explosives and nuclear weapons parts, uranium mining and enrichment, and the development of solid-fueled ballistic missiles.”
The indictment charges Syed, 65, of Northbrook, and Business System International with one count of conspiracy to violate the International Emergency Economic Powers Act and foreign trade regulations, and one count of violating the International Emergency Economic Powers Act. Syed was arrested on Sept. 16, 2020, and remains in federal custody. A detention hearing is scheduled for today at 1:00 p.m. CDT before U.S. Magistrate Judge M. David Weisman in Chicago.
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; Dan Clutch, Special Agent-in-Charge of the U.S. Department of Commerce, Bureau of Industry and Security-Office of Export Enforcement, Chicago Field Office; and Cynthia Bruce, Special Agent-in-Charge of the U.S. Department of Defense, Defense Criminal Investigative Service, Southeast Field Office. The government is represented by Assistant U.S. Attorney Peter M. Flanagan.
According to the indictment, Syed, Business System International and the other conspirators falsely represented to U.S.-based computer manufacturers that the illegal shipments were intended for Pakistan-based universities, Syed’s business, or Syed himself, when, in fact, the conspirators knew that the true end user and ultimate consignee of each shipment was either the Pakistan Atomic Energy Commission or a research institute that trained the agency’s engineers and scientists, the indictment states. In so doing, according to the indictment, Syed and his company caused the U.S.-based computer manufacturers to submit to the U.S. government shipping documents, including Shippers Export Declarations, which listed false end-users for the U.S.-origin goods, thereby undermining the U.S. government’s ability to stop the illegal shipments.
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 violating the IEEPA carries a maximum sentence of 20 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Naperville Man Arrested on Child Pornography Charge for Allegedly Enticing Underage Boy to Produce Sexually Explicit VideosRead the Press Release
CHICAGO — A Naperville man was arrested today on a federal child pornography charge for allegedly enticing an underage boy to produce sexually explicit videos and photos of himself.
JEREMIAH HARRIS, 21, contacted the underage boy on a social media application and repeatedly enticed him to produce sexually explicit videos and photographs of himself and send them to Harris, according to a criminal complaint filed in U.S. District Court in Chicago. The minor victim informed Harris during their initial online encounter that he was 13 years old, the complaint states.
The complaint charges Harris with one count of producing child pornography. He was arrested this morning and is scheduled to make an initial court appearance today at 2:00 p.m. CDT before U.S. Magistrate Judge M. David Weisman in Chicago.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The investigation was conducted by the FBI Chicago Child Exploitation and Human Trafficking Task Force, which includes the Cook County Sheriff’s Office, Cook County State’s Attorney’s Office, and Chicago Police Department. The Crystal Lake Police Department and FBI Waco, Texas, Resident Agency provided valuable assistance. The government is represented by Assistant U.S. Attorney Christopher V. Parente.
Production of child pornography is punishable by a minimum sentence of 15 years in prison and a maximum of 30 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The federal investigation remains ongoing. If you believe that you or someone you know was a victim of sexual exploitation by Jeremiah Harris, you are encouraged to call the FBI Chicago Field Office at (312) 421-6700.
Former Illinois State Senator Pleads Guilty to Federal Tax ChargeRead the Press Release
CHICAGO — Former Illinois State Sen. TERRANCE P. LINK pleaded guilty today to a federal tax charge and admitted willfully underreporting his income for several years.
Link admitted in a plea agreement that he willfully underreported his income on his tax returns for the calendar years 2012 through 2016. The conduct caused total losses to the IRS of at least $71,133, and to the Illinois Department of Revenue of at least $11,527, the plea agreement states. For the calendar year 2016, Link admitted that he underreported approximately $93,859, approximately $73,159 of which was money from a campaign fund – Friends of Terry Link – that Link spent on personal expenses, the plea agreement states.
Link, 73, pleaded guilty to one count of filing a false tax return, which is punishable by up to three years in federal prison. He agreed to pay restitution of $71,133 to the IRS, and $11,527 to the Illinois Department of Revenue.
U.S. District Judge Robert M. Dow, Jr., did not immediately set a sentencing date. A status hearing was set for March 30, 2021, at 9:00 a.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of IRS Criminal Investigation in Chicago. The government is represented by Assistant U.S. Attorneys Christopher J. Stetler and James P. Durkin.
Chicago Man Arrested on Federal Drug Charge for Allegedly Dealing Heroin and FentanylRead the Press Release
CHICAGO — A Chicago man has been arrested on a federal drug charge for allegedly selling wholesale quantities of heroin and fentanyl in the West Loop neighborhood of Chicago.
WILLIAM TOWNSEND, 40, of Chicago, is charged with distribution of a controlled substance. A criminal complaint filed in U.S. District Court in Chicago accuses Townsend of distributing the heroin and fentanyl to two suspected drug traffickers. The sales occurred in a residential building in the 700 block of West Couch Place in Chicago, the complaint states.
During the investigation, law enforcement seized approximately $469,000 in cash and approximately a kilogram of suspected heroin.
Townsend was arrested on Sept. 10, 2020. He appeared Monday before U.S. Magistrate Judge Jeffrey I. Cummings in Chicago 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; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Assistant U.S. Attorneys Kristen Totten, Matthew Kutcher, and Edward A. Liva, Jr., represent the government.
The public is reminded that a complaint 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. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Chicago Nursing Home Executives Charged with Operating Ponzi SchemeRead the Press Release
CHICAGO — The owner of a chain of nursing homes and the company’s executive vice president have been charged with fraud for allegedly orchestrating a Ponzi scheme that raised millions of dollars from investors.
ZVI FEINER was the owner and Chief Executive Officer of Skokie-based FNR Healthcare LLC, and EREZ BAVER served as FNR’s Executive Vice President and bookkeeper. From 2012 to 2017, Feiner and Baver operated a fraud scheme involving the misappropriation of funds raised through the sale of membership interests in companies that Feiner created under the FNR umbrella to purchase and sell nursing homes and assisted living facilities, according to an indictment returned in U.S. District Court in Chicago. The indictment accuses Feiner and Baver of intentionally misleading investors about the financial condition of the companies in order to fraudulently raise funds.
In reality, the payments of returns to investors were funded through a Ponzi scheme, with Feiner and Baver paying early investors with money raised from later investors, the charges allege. Feiner and Baver also used investor funds for purposes unrelated to the purchase or acquisition of the healthcare facilities, including for Feiner’s and Baver’s own personal benefit, the indictment states.
The indictment seeks forfeiture from Feiner of $13.56 million, and from Baver of $3.76 million.
The indictment charges Feiner, 50, of Chicago, with ten counts of wire fraud, and Baver, 40, of Chicago, with one count of wire fraud. Feiner has pleaded not guilty to all counts. Arraignment for Baver is set for Sept. 16, 2020, at 10:00 a.m., before U.S. District Judge Martha M. Pacold.
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 office of the FBI. The U.S. Securities and Exchange Commission in Chicago provided valuable assistance. The government is represented by Assistant U.S. Attorney Kathryn Malizia.
Each count of wire fraud carries a maximum sentence of 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines. The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Former Chicago Public Schools Employee Pleads Guilty to Making False Statements to FBI in Criminal ProbeRead the Press Release
CHICAGO — A former Chicago Public Schools employee pleaded guilty in federal court today to making false statements to the FBI during a criminal investigation.
PEDRO SOTO admitted in a plea agreement that he intentionally misled the FBI while the agency was conducting a criminal investigation into Soto’s interactions with a lobbyist and the lobbyist’s colleague regarding the awarding of a custodial services contract valued at approximately $1 billion. Soto was a member of a CPS evaluation committee tasked in 2016 with recommending to the Chicago Board of Education which company or companies CPS should hire to perform the services, and the lobbyist and the lobbyist’s colleague were assisting one of the companies bidding for the contract. Soto admitted in the plea agreement that he repeatedly provided non-public information to the lobbyist’s colleague concerning the award of the contract, and that he had done so, in part, because the lobbyist’s colleague had promised to extend various benefits to Soto. Soto further admitted that in 2019 he intentionally made false statements to the FBI when he denied having provided the lobbyist’s colleague with inside information about the awarding of the contract.
Soto, 45, of Chicago, pleaded guilty to one count of making a false statement to an agency of the United States. The charge is punishable by a maximum sentence of five years in federal prison. U.S. District Judge Sharon Johnson Coleman did not immediately set a sentencing date. A status hearing was scheduled for Dec. 10, 2020, at 9:30 a.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Chicago Board of Education Inspector General’s Office provided valuable assistance. The government is represented by Assistant U.S. Attorneys Matthew Kutcher and Michelle Kramer.
Convicted Felon Sentenced to Seven and a Half Years in Federal Prison for Illegally Possessing Loaded Gun on South Side of ChicagoRead the Press Release
CHICAGO — A convicted felon has been sentenced to seven and a half years in federal prison for illegally possessing a loaded semiautomatic handgun in the Auburn Gresham neighborhood of Chicago.
CHAWAN LOWE, 31, of Chicago, illegally possessed the firearm in the 7800 block of South Sangamon Street on the evening of May 22, 2019. Lowe was observed on surveillance video discarding the gun in a dumpster in an alley moments after Chicago Police responded to a call of gunfire in the area. Lowe was not legally allowed to possess a firearm after previously being convicted of multiple narcotics offenses.
A federal jury in March convicted Lowe on one count of illegal possession of a firearm by a felon. U.S. District Judge Elaine E. Bucklo imposed the sentence Sept. 2, 2020, 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 and participated in the prosecution. The case was tried by Assistant U.S. Attorney Jeremy Daniel and Special Assistant U.S. Attorney Erika Gilliam-Booker, who also serves as an Assistant Cook County State’s Attorney.
“The defendant unlawfully possessed a firearm in a city where gun violence has made headlines for years,” Assistant U.S. Attorney Jeremy Daniel and Special Assistant U.S. Attorney Erika Gilliam-Booker argued in the government’s sentencing memorandum. “This offense also conveys the defendant’s disregard for 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 Street Gang Member Sentenced to 27 Years in Prison on Murder and Racketeering Conspiracy ChargesRead the Press Release
CHICAGO — A member of a violent Chicago street gang has been sentenced to 27 years in federal prison for engaging in a pattern of racketeering activity that included murder.
ALONZO G. HORTA, 23, of Hammond, Ind., pleaded guilty to the federal charges earlier this year. U.S. District Judge Virginia M. Kendall imposed the sentence Sept. 4, 2020, after a hearing in federal court in Chicago.
Horta admitted in a plea agreement that he conspired with leadership of the Latin Kings street gang to engage in a pattern of racketeering activity that included using violence and intimidation to protect the gang’s purported territory in Chicago. Horta admitted murdering Alfonso Calderon on the Southeast Side of the city on April 9, 2017, because Horta suspected that Calderon was a member of a rival gang. Horta was joined by two fellow members of the Latin Kings when they confronted him, and he fatally shot Calderon in order to advance the activities of the Latin Kings.
Horta was indicted in 2018 along with more than 30 other alleged members of the Latin Kings. The indictment charged numerous acts of violence allegedly committed by the gang’s members, including murder, attempted murder, and arson. Law enforcement uncovered the criminal activity through an investigation led by the Organized Crime Drug Enforcement Task Force (OCDETF).
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Cook County Sheriff’s Office, and the Hammond, Ind., Police Department.
“Acting through the gang’s manifesto and constitution, members of the Latin Kings have infested the Southeast Side of Chicago and elsewhere with violence, drug-dealing, and witness intimidation,” Assistant U.S. Attorneys John D. Cooke, Ashley A. Chung, Brian J. Kerwin, and Grayson S. Walker argued in the government’s sentencing memorandum. “It is vital to communicate to the Southeast Side of Chicago and the rest of the district that carrying and using a gun can land you in federal prison for a long time, and that shooting a person to death will keep you in prison for decades.”
Illinois Woman Sentenced to Prison for Conspiring to Commit Wire Fraud and Aggravated Identity TheftRead the Press Release
Lamesha Conley of Chicago, Illinois, was sentenced to 24 months in prison today for conspiracy and identity theft charges related to a scheme to obtain fraudulent tax refunds using stolen identity information, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, and U.S. Attorney John R. Lausch, Jr. for the Northern District of Illinois.
According to documents and information provided to the court, beginning in 2014, Conley provided more than 6,000 stolen identities to Dominque King and Roxann Gist for the purpose of filing fraudulent income tax returns. Between 2014 and July 2015, King and Gist used those stolen identities to file fraudulent income tax returns with the IRS seeking more than $2.6 million in refunds. King and Gist directed that some of the refunds be mailed to Conley and other co-conspirators.
In addition to the term of imprisonment, U.S. District Judge Robert William Gettlemen ordered Conley to serve 1 year of supervised release and to pay approximately $1,196,460 in restitution to the United States.
King, Gist, and other co-defendants previously pleaded guilty for their roles in the scheme. King was sentenced to 30 months in prison and Gist was sentenced to 36 months in prison. They were ordered to pay $1,332,935 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Lausch commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Lee F. Langston, and former Trial Attorney Timothy M. Russo, of the Tax Division, who prosecuted this case. Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the Northern District of Illinois for their substantial assistance in the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
U.S. Attorney’s Office Provides Update on Operation Legend in ChicagoRead the Press Release
CHICAGO — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today announced an update on Operation Legend in Chicago.
Operation Legend is a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement to fight violent crime. As part of the initiative, the Department of Justice allocated additional investigators and resources to the FBI, DEA, ATF, and U.S. Marshals Service. The Department of Homeland Security’s Homeland Security Investigations also committed additional agents.
Since the operation’s launch in Chicago on July 22, 2020, through Aug. 31, 2020, 103 defendants have been charged with federal felony offenses relating to violent crime affecting the city of Chicago. Most defendants have been charged in the Northern District of Illinois, including more than 60 defendants facing a lead firearms-related charge, and more than 25 defendants facing a lead drug trafficking charge. In addition to the charges filed in the Northern District of Illinois, several cases involving false statements in the acquisition of a firearm have been filed in the Northern District of Indiana. Those cases were investigated with the assistance of the influx of ATF agents under Operation Legend, and some of the guns were later discovered in the Chicago area.
“The mission of Operation Legend is clear: reduce violent crime and save lives,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “Enforcing the rule of law and holding offenders accountable for the crimes they commit are essential components of every reasonable strategy to ensure public safety in Chicago.”
“My Office is committed to focusing investigative and prosecutorial efforts on reducing gun violence in Northern Indiana,” said Thomas L. Kirsch II, United States Attorney for the Northern District of Indiana. “Our coordinated effort with the Northern District of Illinois proves that state borders do not save criminals from aggressive prosecution. We are working hard across the Districts to rid our streets of violent crime. Today with the announcement of more arrests from Operation Legend, we emphasize that we are working together to focus our resources on reducing violent crime and violence due to illegal firearms on both sides of the state line.”
Recent federal cases filed in Chicago with the assistance of Operation Legend include:
- A man was charged with a firearm offense for allegedly “straw purchasing” multiple guns in Indiana on behalf of a convicted felon in Chicago.
- A man was arrested on a federal robbery charge for allegedly robbing a United Parcel Service delivery truck last month. The driver was ordered to lay face down in the street while the man and two accomplices allegedly stole several boxes from the UPS truck.
- A man was indicted on carjacking charges for allegedly stealing a vehicle from two women at gunpoint in Chicago. The man allegedly discharged a handgun during the carjacking, which led to an additional firearm charge that is punishable by a maximum sentence of life in federal prison.
- A convicted felon with a history of firearm convictions was charged with a federal firearm offense after HSI agents and CPD officers executing an arrest warrant discovered two handguns and 70 rounds of ammunition in his Volvo convertible.
Several of the cases involving felons in illegal possession of firearms were charged directly in federal court after ATF agents worked side-by-side with the Chicago Police Department in neighborhoods of the city that have suffered through the highest number of shootings and homicides. In other firearm investigations, the U.S. Attorney’s Office has worked with the Cook County State’s Attorney’s Office to determine the best forum in which to bring a prosecution.
During Operation Legend, the U.S. Attorney’s Office and its federal partners have also worked closely with the Cook County Sheriff’s Office and Illinois State Police.
Operation Legend is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept on June 29, 2020, in Kansas City, Mo. A 22-year-old Kansas City man has been charged with LeGend’s murder. The arrest was the product of a coordinated effort by the Kansas City Police Department, FBI, and U.S. Marshals Service.
Operation Legend began in Kansas City on July 8, 2020. In addition to Chicago, it has expanded to Albuquerque, Cleveland, Detroit, Milwaukee, St. Louis, Memphis, and Indianapolis. In all of the operation’s cities thus far, there have been more than 2,000 state, local, and federal arrests. Of the individuals arrested, 476 have been charged in federal courts, including 249 with firearms offenses and 185 with drug-related offenses. In addition, law enforcement has seized 544 firearms, more than seven kilograms of fentanyl, 14 kilograms of heroin, 12 kilograms of cocaine, and 50 kilograms of methamphetamine.
Rockford Man Indicted on Charges of Transmitting Threats to Law Enforcement OfficerRead the Press Release
ROCKFORD — GIANNI GASPARE ANTHONY CARDENAS, 25, of Rockford, was indicted today by a federal grand jury in Rockford on two counts of transmitting threats in interstate commerce to injure another person.
The indictment alleges that in February 2018 a federal law enforcement officer interviewed Cardenas at a county jail regarding whether Cardenas had any information about the whereabouts of a federal fugitive. According to the indictment, Cardenas told the law enforcement officer during the interview that Cardenas would “kick [the officer’s] [expletive]” when Cardenas got out of jail. The indictment alleges that in June 2019 Cardenas emailed the law enforcement officer seeking to arrange a meeting with the officer so that Cardenas could “clear [his] name.” The indictment further alleges that on or about Oct. 20, 2019, after the officer did not respond to Cardenas’s earlier emails, Cardenas sent two threatening emails to the officer. The first email allegedly stated, among other things, “Hopefully we can meet again this time with me not being in handcuffs[.]” The second email, sent less than 20 minutes later, allegedly stated, “I’ll kill you[.]”
Arraignment via videoconference is set for Sept. 16, 2020, at 9:30 a.m., before U.S. Magistrate Judge Iain D. Johnston.
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 Talia Bucci.
Each count in the indictment carries a maximum sentence of five years in federal prison. 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 is only a charge 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.
Former Suburban Mayor and Cook County Commissioner Pleads Guilty to Federal Extortion and Tax ChargesRead the Press Release
CHICAGO — The former mayor of southwest suburban McCook, who also served as a Cook County Commissioner, pleaded guilty in federal court today to extortion conspiracy and tax charges.
JEFFREY R. TOBOLSKI admitted in a plea agreement that during his tenures as mayor and Cook County Commissioner he agreed to accept multiple extortion and bribe payments totaling more than $250,000. Tobolski admitted that he abused his elected positions in order to benefit individuals who paid him the money. One such arrangement cited in the plea agreement involved Tobolski scheming with a McCook police officer to accept cash payments from the owner of a McCook restaurant in exchange for Tobolski’s and the police officer’s permission to host events that involved the sale of alcohol.
Tobolski, 55, of McCook, pleaded guilty to one count of conspiracy to commit extortion, which is punishable by a maximum sentence of 20 years in federal prison, and one count of filing a false tax return, which is punishable by up to three years. U.S. District Judge Harry D. Leinenweber did not immediately set a sentencing date.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of IRS Criminal Investigation in Chicago. The government is represented by Assistant U.S. Attorneys Christopher J. Stetler and Tiffany A. Ardam.
In regard to the tax charge, Tobolski admitted in the plea agreement that he willfully underreported his income on his tax returns for the calendar years 2012 through 2018. The conduct caused total losses to the IRS of at least $56,268, and the Illinois Department of Revenue of at least $9,338, the plea agreement states.
Former Illinois Accountant Sentenced to More Than 16 Years in Prison for Misappropriating $77 Million from Individuals and Financial InstitutionsRead the Press Release
CHICAGO — A former Illinois accountant has been sentenced to more than 16 years in federal prison for misappropriating more than $77 million from individuals and financial institutions.
SULTAN ISSA, 47, of Hinsdale, pleaded guilty earlier this year to wire fraud affecting a financial institution. U.S. District Judge Andrea R. Wood imposed the 200-month sentence Monday in federal court in Chicago. Judge Wood also ordered Issa to pay more than $72 million in restitution to the victims.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government was represented by Assistant U.S. Attorney Philip Fluhr.
Issa was a certified public accountant and the Chief Financial Officer of a group of partnerships, corporations, and trusts owned by a Chicago-area family. From 2010 to 2017, he embezzled at least $45 million of the family’s assets, including money Issa stole from a trust account that was set up to pay medical expenses for a family member suffering from an incapacitating illness. Issa also fraudulently obtained at least another $5.1 million from individuals in his personal capacity, claiming he would invest their money in legitimate opportunities, including a luxury auto dealership Issa owned in Burr Ridge.
Issa used fraud proceeds to cover personal expenses and to secure fraudulent loans from financial institutions totaling at least $83 million to acquire, among other things, 25 residential properties in Illinois, Montana, Michigan, and Cabo San Lucas, Mexico, two private aircraft, four yachts, approximately 60 firearms, and assorted watches, jewelry, and memorabilia.
Issa attempted to conceal the scheme by providing financial institutions with fraudulent loan documents and forging authorizations to gain control of funds belonging to the family-owned group. Issa also created false account statements and made Ponzi-type payments to individual investors.
Federal Charges Accuse Man of “Straw Purchasing” Guns in Indiana on Behalf of Convicted Felon in ChicagoRead the Press Release
CHICAGO — A man has been charged with a federal firearm offense for allegedly “straw purchasing” guns in Indiana on behalf of a convicted felon in Chicago.
On three occasions this summer, BRIAN HAYWOOD purchased guns from stores in Hammond, Ind., and falsely certified on federal forms that he was the actual buyer, according to a criminal complaint filed in U.S. District Court in Chicago. In reality, Haywood purchased the guns on behalf of a convicted felon from Chicago whom Haywood knew was prohibited from legally purchasing firearms on his own, the complaint states. The felon directed Haywood to buy certain firearms that he wanted and then provided him with the purchase money and an additional fee of $250 per gun, according to the charges.
The complaint charges Haywood, 24, of Hammond, Ind., with one count of knowingly selling and disposing of a firearm to a convicted felon.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Albert Berry III.
“Straw purchasers play a grave role in enabling the unlawful possession of guns and the senseless violence that can follow,” said U.S. Attorney Lausch. “Our office is committed to working with our law enforcement partners to stop the flow of guns to individuals who cannot legally possess them.”
"Straw buyers undermine the rule of law, putting guns into the hands of convicted felons,” said FBI SAC Buie. “The FBI will never stop working with our partners to prevent gun-based violence and make our streets safer."
The case was brought under Operation Legend, a Department of Justice initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement to fight violent crime. As part of Operation Legend, Attorney General William P. Barr directed ATF, FBI, U.S. Marshals Service, and DEA to significantly increase resources in Chicago to help state and local officials fight violent crime, particularly firearm offenses.
The complaint describes three alleged straw purchases in Indiana this summer – on July 30, Aug. 5, and Aug. 20. Unbeknownst to Haywood, the felon from Chicago for whom Haywood bought the guns was surreptitiously cooperating with law enforcement.
The complaint also details a fourth firearm transaction, during which Haywood and another man – MARQUEES FRENCH, 24, of Hammond, Ind. – allegedly sold a semi-automatic handgun to the cooperating felon on the South Side of Chicago on Aug. 25, 2020. The transaction occurred in a retail store parking lot in the 9500 block of South Ashland Avenue, the complaint states. Law enforcement arrested Haywood and French after the deal was conducted and the pair was attempting to drive out of the parking lot, the complaint states.
French was charged with the same offense as Haywood.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charge in the complaint is punishable by a maximum sentence of ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Suburban Chicago Restaurateur Charged with COVID-Relief FraudRead the Press Release
CHICAGO – The owner of a restaurant in suburban Chicago has been indicted on a federal fraud charge for allegedly fraudulently obtaining more than $175,000 in a forgivable Paycheck Protection Program loan guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security Act.
MELISSA TURASKY, 43, of Lake in the Hills, Ill., was charged in an indictment returned Thursday in the Northern District of Illinois with one count of bank fraud and one count of making false statements to a financial institution. 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 Christopher Diiorio, Special Agent-in-Charge of the U.S. Secret Service Chicago Field Office. The U.S. Small Business Administration participated in the investigation.
The government is represented by Assistant U.S. Attorney Alexandra Morgan.
“The Paycheck Protection Program was designed as a lifeline 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.”
The CARES Act was enacted in March to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the PPP, which allows qualifying small businesses and other organizations to receive loans with a maturity of two years and a low interest rate of one percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within 24 weeks of receipt and use at least 60% of the forgiven amount for payroll.
According to the indictment, Turasky owned Gifford’s Bar and Restaurant, which did business as Gifford’s Kitchen and Social, in Elgin, Ill. In early March, Gifford’s was no longer operational and had been evicted from its restaurant rental space. By the end of March, all of Gifford’s employees had been terminated, the indictment states.
Turasky applied for and obtained $176,822 in PPP funds for Gifford’s by submitting a fraudulent loan application to a bank, the indictment states. Turasky fraudulently provided figures approximating Gifford’s monthly payroll and other business expenses, to make it falsely appear that Gifford’s continued to have payroll and business operating expenses, the indictment states.
The public is reminded that an indictment is merely an accusation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The bank fraud and false statement charges are each 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.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Man Charged in Federal Court with Illegally Possessing Loaded Gun After Allegedly Looting Downtown Chicago StoreRead the Press Release
CHICAGO — The U.S. Attorney’s Office has charged a man with a federal firearm offense after he allegedly illegally possessed a loaded gun while looting a store in downtown Chicago earlier this month.
JAVONTE T. WILLIAMS, 27, of Chicago, is charged with one count of illegal possession of a firearm by a convicted felon. Williams was prohibited from possessing a gun after previously being convicted of a felony firearm offense in the Circuit Court of Cook County, for which he was sentenced to probation.
Williams was arrested this morning on the federal charge and made an initial appearance in federal court. U.S. Magistrate Judge Sheila M. Finnegan ordered Williams to remain in federal custody pending a detention hearing on Sept. 1, 2020, at 2:00 p.m.
The charge 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. Valuable assistance was provided by the Cook County State’s Attorney’s Office in bringing this charge. The government is represented by Assistant U.S. Attorney Christopher V. Parente.
According to the federal criminal complaint, Chicago Police officers observed Williams exiting a closed retail store in the first block of East Randolph Street in downtown Chicago at 5:00 a.m. on Aug. 10, 2020. Williams was carrying merchandise in his hands as he exited the store, the complaint states. As officers pursued and arrested Williams, a semi-automatic handgun fell from his body to the ground, the complaint states. The gun was loaded with seven rounds of ammunition in the magazine and one in the chamber, according to the complaint.
The case was brought under Operation Legend, a Department of Justice initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement to fight violent crime. As part of Operation Legend, Attorney General William P. Barr directed ATF, FBI, U.S. Marshals Service, and DEA to significantly increase resources in Chicago to help state and local officials fight violent crime, particularly firearm offenses.
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. Illegal possession of a firearm by a convicted felon 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.
Federal Criminal Probe into Failure of Chicago Bank Adds New Charges and Four Former Employees as DefendantsRead the Press Release
CHICAGO — An ongoing federal criminal investigation into the failure of a Chicago bank has resulted in charges against four new defendants, all of whom worked for the bank.
Washington Federal Bank for Savings was shut down in December 2017 after the Office of the Comptroller of the Currency determined that the bank was insolvent and had at least $66 million in nonperforming loans. Last year, two Illinois attorneys – bank customer ROBERT M. KOWALSKI and his sister, JAN R. KOWALSKI – were indicted for allegedly defrauding Robert Kowalski’s creditors and the trustee in his bankruptcy case by concealing cash and property belonging to Robert Kowalski’s bankruptcy estate. A second superseding indictment returned Thursday renewed the bankruptcy fraud charges against the Kowalskis and added four former Washington Federal employees to the case. The new indictment also identified the primary creditor victim of the bankruptcy fraud as the Federal Deposit Insurance Corporation. The employees allegedly conspired with Robert Kowalski and higher-ranking bank officials to embezzle at least $29 million in bank funds in the years preceding the closure. The employees and the higher-ranking officials allegedly transferred the money to Robert Kowalski and others, often without any documentation, and falsified bank records to conceal the embezzlement from the OCC and the FDIC, the latter having become the receiver of the bank and provider of approximately $90 million to make account holders whole.
The new indictment charges Robert Kowalski, 58, of Chicago, with conspiracy to commit embezzlement and falsify bank records. Also charged in the conspiracy are the four former bank employees: ROSALLIE C. CORVITE, 45, of Chicago, who served as Chief Financial Officer and Treasurer; JANE V. IRIONDO, formerly known as Jane V. Tran, 39, of Boise, Idaho, who served as Corporate Secretary; ALICIA MANDUJANO, 49, of Chicago, who worked as a loan servicer; and CATHY M. TORRES, 39, of Chicago, who worked as a loan officer. The four employees also face individual counts of falsifying bank records. In addition to renewing the bankruptcy fraud charges against Robert Kowalski and Jan Kowalski, 56, of LaGrange, the new indictment also adds several tax counts against Robert Kowalski for allegedly failing to file income tax returns and filing false personal and corporate returns for various years.
Arraignments in U.S. District Court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jay N. Lerner, Inspector General of the FDIC’s Office of Inspector General; Kathy A. Enstrom, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Brad Geary, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; Assistant Inspector for Investigations Sally Luttrell of the Department of the Treasury, Office of Inspector General; Joseph M. Ferguson, City of Chicago Inspector General; and Elissa Rhee-Lee, Chicago Housing Authority Inspector General. Valuable assistance was provided by the U.S. Trustee Program. The government is represented by Assistant U.S. Attorneys Brian Netols, Michelle Petersen, and Jeremy Daniel.
The criminal investigation remains ongoing.
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.
Bloomingdale Township Highway Commissioner Charged in Federal Indictment with Pocketing KickbacksRead the Press Release
CHICAGO — The Commissioner of the Bloomingdale Township Road District received kickbacks from the owner of an excavation company in exchange for approving hundreds of thousands of dollars in invoices for purported road work, most of which was never performed, according to an indictment returned in federal court in Chicago.
The indictment accuses Commissioner ROBERT CZERNEK of receiving more than $280,000 in kickbacks from DEBRA FAZIO, the owner of Bloomingdale-based Bulldog Earth Movers Inc. (“BEM”), and MARIO GIANNINI, a BEM employee. In exchange for the secret kickbacks, Czernek used his official position to approve and cause the approval for payment of stone delivery, dump leveling, and storm sewer invoices submitted by BEM to Bloomingdale Township, the indictment states. Czernek approved the invoices knowing that much of the work and services had not actually been performed by BEM, the indictment states. The fraud scheme spanned eight years and resulted in Bloomingdale Township issuing checks totaling more than $700,000 to BEM, the indictment states.
The 20-count indictment was returned Wednesday. It charges Czernek, 69, Fazio, 63, and Giannini, 58, all of Bloomingdale, with 14 counts of honest services wire fraud. Fazio is also charged with six counts of money laundering. Arraignments in U.S. District Court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the DuPage County State’s Attorney’s Office. The government is represented by Assistant U.S. Attorney Christopher V. Parente.
According to the indictment, Czernek would leave handwritten notes for Giannini hidden in various secluded places on Bloomingdale Township Highway Department property. The notes included a description of work purportedly performed by BEM and the number of hours that BEM purportedly spent on the work, the indictment states. Fazio would later submit invoices to Bloomingdale Township that repeated virtually verbatim the wording used by Czernek in the notes, the indictment states.
The indictment seeks forfeiture from the defendants of several items allegedly criminally derived from the charged offenses, including a 1981 Corvette and 2014 Lexus RX350 held by Czernek, and several pieces of large excavation equipment purchased by BEM during the scheme.
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 fraud count in the indictment is punishable by up to 20 years in prison, while the maximum sentence for each count of money laundering is ten years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Two Men Charged in Federal Court with Looting Pharmacies in ChicagoRead the Press Release
CHICAGO — Two men have been charged in federal court with looting three pharmacies in Chicago.
WILLIAM LORENZ, 40, of Chicago, and IVAN BERMUDEZ, 42, of Chicago, are each charged with one count of conspiracy to commit burglary involving a controlled substance. Bermudez was arrested Tuesday. He is scheduled to make an initial court appearance today at 2:30 p.m. before U.S. Magistrate Judge Sheila M. Finnegan. Lorenz was arrested Monday and has already made his initial appearance.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the DEA; and David Brown, Superintendent of the Chicago Police Department. The FBI Chicago Field Office provided valuable assistance. The government is represented by Assistant U.S. Attorneys Andrew C. Erskine and Shy Jackson.
“Anyone involved in destructive behavior in Chicago – such as looting a pharmacy for controlled substances – should know that federal law enforcement could be coming for you,” said U.S. Attorney Lausch. “Our office will continue to work with the DEA, Chicago Police Department, and other law enforcement partners to hold looters accountable in federal court, whenever appropriate.”
“The theft of controlled substance medication from pharmacies results in temporary or permanent closures, disrupting the supply of life-saving medications to the residents of Chicago,” said DEA SAC Bell. “With this, the diversion of stolen controlled medications is a federal crime, puts more drugs on the street and increases the public’s risk of drug abuse, addiction and overdose.”
According to a criminal complaint filed in federal court, Lorenz and Bermudez conspired to burglarize three Walgreens stores on the evening of May 31, 2020:
- 1627 N. Pulaski Rd. in Chicago’s Humboldt Park neighborhood.
- 3110 W. Armitage Ave. in Chicago’s Logan Square neighborhood.
- 4001 W. Irving Park Rd. in Chicago’s Old Irving Park neighborhood.
Each of the stores was closed at the time of the looting incidents due to civil unrest in the city. The complaint accuses Lorenz and Bermudez of entering the stores, proceeding to the pharmacy areas, and attempting to remove drugs from the shelves.
In the Old Irving Park incident, Lorenz attempted to access a pharmacy locker that contained Schedule II controlled substances, but he was unable to gain access, the complaint states. The incident occurred after a city of Chicago curfew took effect at 9:00 p.m. during the period of unrest, the complaint states. The two other lootings occurred earlier in the evening.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. 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.
Man Arrested on Federal Criminal Charge for Allegedly Robbing Delivery Truck in Oak ParkRead the Press Release
CHICAGO — A man has been arrested on a federal criminal charge for allegedly robbing a United Parcel Service delivery truck in Oak Park last week.
DARIUS D. YOUNG was one of three individuals who robbed the UPS truck on the afternoon of Aug. 21, 2020, according to a criminal complaint filed in U.S. District Court in Chicago. The driver of the truck had parked in the 1100 block of South Highland Avenue to make a delivery when a vehicle pulled up behind it, the complaint states. The driver heard a male voice approach him from behind and state words to the effect of, “Get on the ground, stay down,” the complaint states. The driver laid face down in the street behind the truck, looking up long enough to observe what appeared to be the handle of a handgun in the waistband of one of the offenders, the charges allege. Young and the two others allegedly removed numerous boxes from the UPS truck and drove off.
Young, 24, of Berwyn, is charged with one count of robbery. He is scheduled to appear for a detention hearing on Friday at 11:00 a.m. before U.S. Magistrate Judge Sheila M. Finnegan.
The arrest and complaint 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 LaDon Reynolds, Chief of the Oak Park Police Department. The government is represented by Assistant U.S. Attorneys Albert Berry III and Charles W. Mulaney.
The federal charge was brought under Operation Legend, a Department of Justice initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement to fight violent crime. As part of Operation Legend, Attorney General William P. Barr directed ATF, FBI, U.S. Marshals Service, and DEA to significantly increase resources in the Chicago area to help state and local officials fight violent crime, particularly firearm-related offenses.
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 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Grand Jury Indicts Man on Carjacking and Firearm Charges for Allegedly Stealing Vehicle at Gunpoint in ChicagoRead the Press Release
CHICAGO — A federal grand jury has indicted a man on carjacking and firearm charges for allegedly stealing a vehicle at gunpoint in Chicago last month.
On the afternoon of July 28, 2020, MICHAEL C. PEARSON forcibly took a 2006 Buick Lucerne from two victims in the Uptown neighborhood of Chicago, according to an indictment returned Thursday in U.S. District Court in Chicago. Pearson discharged a handgun during the carjacking, the indictment states. Neither victim was wounded.
The indictment charges Pearson, 18, of Chicago, with one count of carjacking and one count of discharging a firearm during a crime of violence. He is currently in law enforcement custody. Arraignment on the federal charges has not yet been scheduled.
The firearm charge carries a maximum sentence of life in federal prison, while the carjacking charge is punishably by up to 15 years.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Cook County State’s Attorney’s Office in bringing these charges. The government is represented by Assistant U.S. Attorney Albert Berry III.
“Carjacking is a senseless act of violence that has no place in our society,” said U.S. Attorney Lausch. “Our office is committed to working closely with the FBI, CPD, and other law enforcement partners to pursue and prosecute violent offenders. The carjacking and gun charges announced today are the direct result of that strong partnership.”
“This indictment proves that Operation Legend is working, and is successfully getting violent criminals off the streets of our city,” said FBI SAC Buie. “The FBI and CPD Vehicular Hijacking Taskforce, along with our partners at the U.S. Attorney's Office, will continue to bring justice to those that commit these intolerable violent crimes.”
The case was brought under Operation Legend, a Department of Justice initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement to fight violent crime. As part of Operation Legend, Attorney General William P. Barr directed ATF, FBI, U.S. Marshals Service, and DEA to significantly increase resources in Chicago to help state and local officials fight violent crime, particularly firearm offenses. Since the operation’s launch in Chicago on July 22, 2020, more than 60 defendants have been charged in cases alleging federal felony offenses relating to violent crime affecting the city of Chicago. Those cases include more than 30 defendants facing a lead firearms-related charge.
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.
U.S. Attorney John Lausch and Attorney General William P. Barr Provide Update on Operation LegendRead the Press Release
CHICAGO — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today joined Attorney General William P. Barr to announce an update on Operation Legend.
Operation Legend is a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. As part of the initiative, the Department of Justice allocated additional investigators and resources to the FBI, DEA, ATF, and U.S. Marshals Service, and the Department of Homeland Security’s Homeland Security Investigations committed additional agents.
Since the operation’s launch in Chicago on July 22, 2020, 61 defendants have been charged in 49 cases alleging federal felony offenses relating to violent crime affecting the city of Chicago. Those cases include more than 30 defendants facing a lead firearms-related charge, and more than 25 defendants facing a lead drug trafficking charge. During Operation Legend, the U.S. Attorney’s Office and its federal partners have worked closely with state and local law enforcement, including the Chicago Police Department, Cook County Sheriff’s Office, and Illinois State Police.
“The substantial resources under Operation Legend have assisted our office in prosecuting firearm and drug trafficking offenses, which drive the unacceptable level of violent crime in Chicago,” said U.S. Attorney Lausch. “We will continue to use these additional resources to investigate and prosecute trigger-pullers, drug traffickers, carjackers, and those who illegally traffic, use, and possess firearms. Every reasonable strategy to combat violent crime must emphasize the rule of law and holding offenders accountable for the crimes they commit – these are necessary actions designed to ensure public safety.”
The federal cases brought in Chicago with the assistance of Operation Legend include:
- A convicted felon who was charged with illegally possessing ammunition that had been loaded in a personally-manufactured firearm, also known as a “ghost gun.” The gun allegedly discharged when Chicago Police officers pursued the defendant and arrested him.
- An individual charged with a firearm offense after allegedly driving from Chicago to Indiana, purchasing seven firearms, and transporting the guns back to Chicago with the intent to sell them.
- A convicted felon was charged with illegal possession of a firearm and using a firearm in furtherance of a drug trafficking crime after ATF agents found him in a hotel room in downtown Chicago with a personally-manufactured gun, ammunition, 17.5 kilograms of marijuana, and $1,400 in cash.
- A Chicago resident was charged with illegally possessing a machinegun. The semiautomatic handgun was equipped with an auto-sear device, also known as a “switch,” that made it capable of automatically shooting more than one shot without manually reloading.
- A Chicago man was charged with dealing firearms without a license for allegedly selling three guns, including a rifle, to a confidential source who was cooperating with law enforcement.
Several of the cases involving felons in possession of firearms were charged directly in federal court after ATF agents worked side-by-side with the Chicago Police Department in neighborhoods of the city that have suffered through the highest number of shootings and homicides. In other firearm investigations, the U.S. Attorney’s Office has worked with the Cook County State’s Attorney’s Office to determine the best forum in which to bring a prosecution.
U.S. Attorney Lausch and the Attorney General provided the Operation Legend update at a news conference in Kansas City, Mo. – where the operation was originally launched on July 8, 2020. The initiative is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City. In addition to Kansas City and Chicago, Operation Legend has expanded to Albuquerque, Cleveland, Detroit, Milwaukee, St. Louis, Memphis, and Indianapolis.
In all of the operation’s cities thus far, there have been more than 1,000 arrests, including defendants who have been charged in state and local courts. Of those arrests, approximately 217 defendants have been charged with federal crimes. In addition, nearly 400 firearms have been seized by ATF. These numbers do not include Indianapolis, whose operation was announced on Friday.
Rockford Man Sentenced to 12 Years in Federal Prison on Child Pornography ChargesRead the Press Release
ROCKFORD — A Rockford man was sentenced today by U.S. District Judge Philip G. Reinhard to 12 years in federal prison, to be followed by 15 years of court-supervised release, on child pornography charges.
DONOVAN HEIDENREICH, 25, pleaded guilty on March 13, 2020, to charges of transportation of child pornography via the internet and possession of child pornography. In a written plea agreement, Heidenreich admitted that on Sept. 25, 2017, he used a computer to send a video file over the internet to a fellow KIK chat application user. The image depicted a male child under the age of 18 engaged in sexually explicit conduct. Heidenreich also admitted that on Nov. 28, 2017, he possessed a laptop computer that contained more than 600 images of children engaged in sexually explicit conduct. Heidenreich also admitted he traded images of children engaged in sexually explicit conduct to other persons in exchange for his receipt of images of children engaged in sexually explicit conduct.
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 government was represented by Assistant U.S. Attorney Michael D. Love.
Machesney Park Man Sentenced to 12 Years in Federal Prison for Robbing a Bank and Convenience StoreRead the Press Release
ROCKFORD — A Machesney Park man was sentenced Monday by U.S. District Judge John J. Tharp, Jr., to a total of 12 years in federal prison for armed robbery, robbery, and using and carrying a firearm during a crime of violence.
DAVID M. BANEY, 35, pleaded guilty on Jan. 6, 2020, to the robbery of Chase Bank, 7997 N. Alpine Rd. in Loves Park, and the robbery of Kelley’s Market/Mobil Gas Station, 8200 N. Second St. in Machesney Park, on Jan. 11, 2018. Baney was also ordered to pay restitution totaling $24,732.80.
According to a written plea agreement, Baney admitted that on Jan. 11, 2018, he walked into the Chase Bank wearing a mask. Baney approached a teller who was behind the teller stations and demanded money from two tellers. During the robbery, Baney carried a gun and pointed it at a bank employee and a bank customer. Baney obtained $24,402 from Chase Bank during the robbery.
Baney also admitted that on the same day he possessed an object that appeared to be a firearm when he entered the Kelley’s Market/Mobil Gas Station and ordered the employee to give him cash. The employee turned over cash, and Baney left the store with the money.
The sentencing 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; Gary Caruana, Winnebago County Sheriff; Dan O’Shea, Chief of the Rockford Police Department; and Chuck Lynde, Chief of the Loves Park Police Department. The government was represented by Assistant U.S. Attorney Michael D. Love.
The investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, consisting of law enforcement officers and agents from the FBI, Rockford Police Department, Loves Park Police Department, and Freeport Police Department. Officers from the Loves Park Police Department and the Winnebago County Sheriff’s Department participated in the investigation.
Federal Indictment Charges Two Men with Sex TraffickingRead the Press Release
CHICAGO — Two men have been indicted on federal sex trafficking charges for allegedly recruiting three victims, including a child, to engage in commercial sex acts by means of force, threats of force, fraud, and coercion.
KENDALL GUYTON, 25, of Joliet, and GREGORY INGRAM, 41, of Richton Park, are charged with conspiring to traffic three victims for the purposes of commercial sex, according to an indictment returned in U.S. District Court in Chicago. One of the victims was under 18 years old when Guyton and Ingram enticed her to engage in a commercial sex act for the defendants’ financial benefit, the indictment states. The alleged trafficking occurred in 2017 and 2018.
Both defendants are currently in law enforcement custody. Ingram has pleaded not guilty and is scheduled to appear for a detention hearing on Aug. 25, 2020, before U.S. District Judge Sara L. Ellis. Guyton is being held in state custody on an unrelated charge. His arraignment on the federal charge 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 Carol Stream Police Department, Lisle Police Department, Will County Sheriff’s Office, Joliet Police Department, and Richton Park Police Department. The government is represented by Assistant U.S. Attorneys Abigail Peluso and Christine M. O’Neill.
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 charges in the indictment are punishable by a maximum sentence of life in prison, while a mandatory minimum of 15 years in prison could also be applicable. 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 call the National Center for Missing and 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.
North Suburban Financial Adviser Indicted on Fraud Charges for Allegedly Swindling $450,000 from ClientsRead the Press Release
CHICAGO — A north suburban financial adviser has been indicted on federal fraud charges for allegedly swindling clients who had sought her assistance in purchasing a new home after foreclosure.
MARY MARTINEZ, also known as Mary Flores, 53, of Glencoe, is charged with ten counts of wire fraud in an indictment returned Thursday in U.S. District Court in Chicago. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Brad Geary, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General in Chicago; Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration; and Tanya Solov, Director of the Illinois Securities Department of the Illinois Secretary of State. The government is represented by Assistant U.S. Attorney Jacqueline Stern.
According to the indictment, Martinez owned and operated a number of companies, including Illinois Housing Solutions, America Investment Corporation, and Investor Short Sale Niche, that purported to offer financial services, real estate and mortgage services, and investment opportunities. Martinez advertised on the radio offering to help individuals who had lost their homes through foreclosures to purchase another home and improve their credit.
The charges allege that from 2011 to earlier this year, Martinez made false representations to victims to obtain investment funds, including retirement savings, college funds, and personal savings. Instead of helping victims save money for a down payment on a house, Martinez misappropriated a substantial portion of the victims’ funds to pay her personal and business expenses, including rent payments and retail purchases, the indictment states.
As a result of the scheme, Martinez caused losses to victims of at least approximately $450,000, 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. Each count of wire fraud 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.
Indiana Man Arrested on Federal Fraud Charge for Allegedly Scheming to Sell Stolen ArtworkRead the Press Release
CHICAGO — An Indiana man has been arrested on a federal fraud charge for allegedly scheming to sell expensive artwork stolen from a storage facility in a north suburb of Chicago.
From February 2020 to earlier this month, JOHN GARCIA engaged in a scheme to sell various items, including paintings, sculptures, and rugs, which were stolen from a storage facility in Deerfield, according to a criminal complaint filed in U.S. District Court in Chicago. Garcia, also known as “John Adams,” “John Adamino,” and “Michael Chapman,” 53, of Schererville, Ind., is charged with one count of wire fraud. He was arrested Aug. 7, 2020, and remains in federal custody. A detention hearing is set for Aug. 13, 2020, at 10:30 a.m., before U.S. District Judge Manish S. Shah.
The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Kelly Guzman.
According to the complaint, the victim who owned the artwork noticed that approximately 159 items were missing from the storage facility and reported it to the FBI in May. An FBI investigation revealed that Garcia had schemed with another individual to steal the items and then broker their sale to dealers in art, antiques, and collectibles, in exchange for thousands of dollars, the complaint states. Garcia and the other individual allegedly represented to the buyers that they owned the items.
The FBI has recovered many of the stolen items, the complaint states. Some of the stolen items were discovered after court-authorized searches of a residence in Highland Park and a storage facility leased by Garcia in Orland Park.
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. Wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Rockford Man Sentenced to More Than 17 Years in Prison for Drug Trafficking and Firearm OffensesRead the Press Release
ROCKFORD — A Rockford man was sentenced today by U.S. District Judge Philip G. Reinhard on federal charges of drug trafficking and possessing a firearm in furtherance of drug trafficking.
ANTWAN D. MANLEY, 27, was sentenced to 154 months in prison on the drug trafficking charge and 60 months on the firearm charge, to be served consecutively, for a total sentence of 17 years and ten months in federal prison.
Manley pleaded guilty on Nov. 27, 2019, to one count of possessing with intent to distribute heroin, cocaine base, and marijuana, and one count of possessing a firearm in furtherance of a drug trafficking offense. In the written plea agreement, Manley admitted that on Jan. 11, 2018, he possessed in a vehicle approximately 21 baggies of heroin, 24 baggies of marijuana, and a bag of cocaine base in the form of crack cocaine. Manley admitted that he also possessed in the same vehicle a loaded, black Beretta 9mm pistol that previously had been stolen, as well as approximately $6,950 in drug trafficking proceeds, four cell phones, a digital scale, and a box of latex gloves. Manley admitted that he intended to distribute the heroin, crack cocaine, and marijuana to street-level users, and that he possessed the loaded pistol to protect himself, his drug inventory, and his drug trafficking proceeds from individuals who may attempt to rob him of the drugs or money, including customers and rival drug dealers. Manley also admitted that he had distributed heroin to an individual cooperating with law enforcement on two occasions in November and December 2017.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Kristen De Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and Dan O’Shea, Chief of the Rockford Police Department. The federal investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, which includes the above agencies as well as the Loves Park and Freeport Police Departments. The Winnebago County Sheriff’s Office also assisted in the investigation. The government is represented by Assistant U.S. Attorney Talia Bucci.
Federal Jury Convicts Suburban Man of Threatening Law Enforcement OfficerRead the Press Release
CHICAGO — A federal jury in Chicago has convicted a suburban man of threatening a law enforcement officer and posting similarly threatening messages on social media.
ROBERT ANTHONY HAAS in 2019 sent harassing and threatening text messages and voicemails to a federal task force officer. In one of the text messages, Haas stated, “I’m not afraid to walk out my door in the morning. You should be however considering you support Jewish terrorism and your anti-American [expletive] is going to get you killed.” The officer had come into contact with Haas when he interviewed him after the FBI received a complaint about disturbing messages Haas posted to a social media website.
In addition to the threats against the federal officer, evidence at trial revealed that Haas posted similarly disturbing messages at the social media website. In one of those postings, Haas stated, “I don’t care if it’s a cop, prosecutor, judge, politician or elite. You try to stop me from telling the truth I will cut every throat in your home. Try me!”
After a four-day trial, a federal jury in Chicago on Thursday convicted Haas, 40, of Ottawa, Ill., on all 13 counts against him, including five counts of threatening to assault or murder a federal official and eight counts of knowingly transmitting in interstate commerce a communication containing a threat to injure another. Each count of threatening a federal official is punishable by up to ten years in federal prison, while the maximum sentence for each of the other threat counts is five years. U.S. District Judge Edmond E. Chang set sentencing for Nov. 3, 2020.
The conviction 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 Patrick S. Mills, Special Agent-in-Charge of the U.S. Department of State’s Diplomatic Security Service (DSS), Chicago Field Office. Assistance was provided by the Illinois State Police and the Ottawa, Ill., Police Department. The government is represented by Assistant U.S. Attorneys Erin Kelly and Barry Jonas.
Former Controller for Chicago Insurance Company Arrested on Federal Fraud Charge for Allegedly Stealing $5 Million in Company FundsRead the Press Release
CHICAGO — The former controller of a Chicago insurance company has been arrested on a federal fraud charge for allegedly stealing $5 million in company funds.
From approximately October 2018 to June 2020, KEVIN J. MIX initiated and authorized approximately 35 wire transfers from the insurance company to his bank accounts and the accounts of shell companies that he created, according to a criminal complaint filed in U.S. District in Chicago. Mix attempted to conceal the scheme by making false entries in the company’s records, creating fake emails, and making false statements to representatives of the insurance company and the company’s bank, the complaint states.
Mix allegedly used the stolen money to purchase a Lexus RX sport-utility vehicle, a Mercedes-Benz automobile, and real estate in Chicago and Columbus, Ohio.
The complaint charges Mix, 41, of Chicago, with one count of wire fraud. He was arrested Tuesday and remains in federal custody. U.S. District Judge Steven C. Seeger scheduled a detention hearing for Aug. 13, 2020, at 1:30 p.m.
The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Matthew Schneider.
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. 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.
Crestwood Mayor Indicted in Alleged Bribery Scheme Involving Red-Light Camera ServicesRead the Press Release
CHICAGO — The mayor of Crestwood has been indicted by a federal grand jury for using an interstate facility in aid of bribery, and lying to federal law enforcement about his request and receipt of benefits from a representative of a red-light camera company that provided services to the southwest suburb.
LOUIS PRESTA, 69, of Crestwood, is charged with three counts of using a facility in interstate commerce in aid of bribery and official misconduct, two counts of willfully filing a false income tax return, one count of willfully failing to file an income tax return, and one count of making false statements to the FBI and IRS. The indictment was returned Thursday in U.S. District Court in Chicago. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Christopher J. Stetler and James P. Durkin.
According to the indictment, the red-light camera company provided camera services to Crestwood that enabled the municipality to issue tickets to motorists for certain traffic violations. During that time and while the company was attempting to provide additional such services to Crestwood, Presta asked for and accepted benefits from representatives of the company, the indictment states.
The false statement charge pertains to Presta’s September 2019 interview with the FBI and IRS, during which Presta denied receiving gifts, cash, or campaign contributions from the red-light camera company. When shown a recording of a March 7, 2018, meeting at which Presta allegedly accepted from the company representative an envelope containing $5,000 in cash, Presta falsely stated that there was no money in the envelope, the indictment states.
The tax charges in the indictment accuse Presta of willfully filing a false income tax return for the calendar years 2015 and 2018, and willfully failing to file an income tax return for the calendar year 2014.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The bribery and false statement counts are each punishable by up to five years in prison. Filing a false tax return is punishable by up to three years, while failing to file a tax return carries a maximum sentence of one year. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Ogle County Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ROCKFORD — A Creston man pleaded guilty Tuesday before U.S. District Judge Philip G. Reinhard to charges of transportation of child pornography via the internet and possession of child pornography.
ERIC CANCHOLA, 27, admitted in a written plea agreement that on March 21, 2018, he used a computer to send a video file over the internet to a fellow KIK chat application user. The image depicted a prepubescent female child engaged in sexually explicit conduct. Canchola also admitted that on May 8, 2018, he possessed two iPods, a desktop computer, and two portable hard drives that each contained more than 600 images of children engaged in sexually explicit conduct.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Ogle County Sheriff’s Office assisted in the investigation. The government is represented by Assistant U.S. Attorney Michael D. Love.
Sentencing is set for Dec. 11, 2020, at 9:00 a.m.
Canchola faces a mandatory minimum of five years and a maximum sentence of 20 years in federal prison for transporting child pornography, and a maximum of 20 years for possession of child pornography. The actual sentence will be determined by the U.S. District Court, guided by the Sentencing Guidelines.
Three Family Members Charged in Child Labor Trafficking Conspiracy in Chicago SuburbsRead the Press Release
CHICAGO — Three family members have been indicted on a labor trafficking conspiracy charge for allegedly forcing two undocumented West African teenagers to work in the Chicago suburbs.
NAWOMI AWOGA, 71, of Hazel Crest, and her two daughters, MARINA OKE, also known as Marina Fandohan, 34, of Country Club Hills, and ASSIBA LEA FANDOHAN, 31, of Hazel Crest, are charged with conspiracy to conceal, harbor, and shield from detection two children from the West African country of Benin, according to an indictment returned in U.S. District Court in Chicago. The indictment also charges the defendants with forcing labor through threats of serious harm to a victim or another person.
The defendants were arrested Monday. Awoga is scheduled to make an initial court appearance on Aug. 5, 2020, at 3:00 p.m., before U.S. Magistrate Judge Young B. Kim, while Oke and Fandohan will appear before Judge Kim for detention hearings on Aug. 6, 2020, at noon.
The indictment and arrests were 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; Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago; and Patrick S. Mills, Special Agent-in-Charge of the U.S. Department of State’s Diplomatic Security Service (DSS), Chicago Field Office. Substantial assistance in the investigation was provided by the Cook County Sheriff’s Office, Chicago Police Department, and the Regional Security Office at the U.S. Embassy in Cotonou, Benin. The government is represented by Assistant U.S. Attorneys Barry Jonas and Tiffany Ardam.
According to the charges, Awoga coached the victims, then age 14 and 12, in Benin to lie to U.S. immigration authorities about their family relationships in order to obtain tourist visas, and then accompanied them into the United States. Once in the U.S., the defendants harbored the victims in residences in the Chicago suburbs of Country Club Hills and Hazel Crest while the victims were forced to provide labor and services for the defendants’ financial gain, 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 a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Executive Charged with Skimming $1.1 Million from Federally Insured Nursing HomesRead the Press Release
CHICAGO — The owner of several Illinois nursing homes has been indicted by a federal grand jury for allegedly skimming money from federally insured facilities that had defaulted on mortgage loans to pay expenses of a non-federally insured facility.
MARK YAMPOL, 57, of St. Louis, Mo., is charged with one count of equity skimming, according to an indictment returned Wednesday in U.S. District Court in Chicago. The charge is punishable by up to five years in federal prison. A date for arraignment has not yet been set.
According to the indictment, Yampol controlled a portfolio of nursing homes in Illinois, including homes in the Chicago suburbs of Northbrook and St. Charles. The U.S. Department of Housing and Urban Development insured the mortgage loans made by private lending institutions to all but one of Yampol’s nursing homes. By March 1, 2015, the HUD-insured facilities had not made timely mortgage payments and were in default of their loans. From May 2015 to August 2015, Yampol diverted approximately $1.1 million in funds derived from the HUD-insured facilities, which remained in default on their loans, to pay the mortgage and operating expenses of the non-HUD-insured facility, the indictment states.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Rae Oliver Davis, Inspector General of the U.S. Department of Housing and Urban Development. The government is represented by Assistant U.S. Attorneys Devlin Su and Kathryn Malizia.
“We would like to acknowledge our partners at the U. S. Attorney’s Office, who have worked tirelessly to bring this case forward,” said Inspector General Davis. “The alleged diversion of funds is not only significant in its own right but played a significant role in one of the largest insured claims involving HUD’s Section 232 mortgage insurance program for elderly and disabled residents. This office remains steadfastly committed to ensuring the integrity of HUD programs and particularly those designed to assist vulnerable populations.”
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.
Alleged Chicago Gang Leader Among 23 Defendants Charged in Federal Drug and Gun InvestigationRead the Press Release
CHICAGO — The alleged leader of the Black Disciples street gang in Chicago is among 23 individuals facing criminal charges as part of a federal investigation into drug and gun trafficking on the city’s South Side.
During the multi-year investigation, law enforcement seized 24 firearms, more than 13 kilograms of cocaine, more than a kilogram of heroin, approximately 1,350 grams of heroin laced with fentanyl, approximately 750 grams of fentanyl or fentanyl analogue, approximately 378 grams of crack cocaine, $52,595 in suspected illicit cash proceeds, and distribution quantities of suspected MDMA pills. Much of the alleged drug and gun trafficking occurred in the Englewood neighborhood on the South Side of Chicago.
Indictments and criminal complaints unsealed this week in U.S. District Court in Chicago charge 22 of the defendants with various drug or firearm offenses, while one defendant faces bank fraud charges. The defendants were arrested Tuesday and have begun making initial appearances in federal court.
Included among the defendants is DARNELL MCMILLER, also known as “Murder,” who is described in the charges as the current leader of the Black Disciples street gang in Chicago. Several other alleged high-ranking members of the Black Disciples were also charged and arrested, including CLARENCE JANUARY, who allegedly leads the gang’s “Dog Pound” faction, and KENNETH BROWN, who allegedly supplied the gang with drugs for distribution in Chicago. CHARLES KNIGHT, an alleged high-ranking member of the Gangster Disciples street gang, is charged as part of the probe with supplying narcotics to McMiller’s crew.
The investigation was led by the FBI and Chicago Police Department, with assistance from ATF, DEA, IRS Criminal Investigation Division, the Chicago High Intensity Drug Trafficking Task Force (HIDTA), and the FBI Windy City Task Force.
The charges and arrests 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 office of the FBI; David Brown, Superintendent of CPD; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of ATF; Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the DEA; and Kathy A. Enstrom, Special Agent-in-Charge of IRS-CI in Chicago. Assistant U.S. Attorneys Andrew J. Dixon, Esther Mignanelli, Tobara Richardson, and Jasmina Vajzovic represent the government.
Valuable assistance in the probe was provided by the U.S. Attorney’s Office for the Eastern District of Wisconsin, which unsealed an eight-person indictment this week charging heroin trafficking offenses that are related to this investigation.
The Black Disciples are a national street gang that is prevalent throughout Chicago and the surrounding suburbs. According to the charges, members of the Black Disciples have been distributing narcotics and guns in the Englewood neighborhood and other parts of Chicago. The charges describe more than 50 illicit transactions in which alleged Black Disciples members sold guns or drugs to individuals who were cooperating with law enforcement. In many instances, the cooperating individuals surreptitiously video-recorded the transaction at the direction of law enforcement.
The complaint against McMiller, 34, of Chicago, accuses him of conspiring with Knight, 56, of Riverdale, to distribute fentanyl-laced heroin to a cooperating individual on Sept. 30, 2019. The transaction occurred in the 7000 block of South Lowe Avenue in Chicago, the complaint states.
Brown, 59, of Chicago, is charged with conspiring with alleged Black Disciple member TERRENCE MORRIS, 48, of Chicago, to distribute heroin in March 2019. During the investigation, law enforcement carried out a court-authorized search of a South Side storage unit rented by Brown and discovered 13 kilograms of cocaine, which were individually wrapped in sealed packages, the charges state.
January, 27, of Chicago, is accused of trafficking three handguns in the summer of 2019. He had previously been convicted of a felony firearm offense in the Circuit Court of Cook County and was not lawfully allowed to possess the guns. Several other convicted felons were also charged with unlawfully possessing firearms, including rifles and a shotgun furnished to members of the Black Disciples.
Charged with federal drug offenses are: McMiller; Knight; Brown; Morris; ALONZO BROOKS, 49, of Chicago; SHONGO COLLIER, 48, of Riverdale; LAWRENCE DRAUS, 41, of Crestwood; FREDRICK STEWART, 47, of Chicago; TONY REDDING, 44, of Chicago; RAMONT AUSTIN, 39, of Chicago; FRANKLIN REDDING, 46, of Chicago; BARRY MICKIEL, 49, of Chicago; BRIAN BILLUPS, 40, of Plainfield; JOSEPH ANDERSON, 43, of Chicago; and SANTANA STEELE, 36, of Chicago.
Charged with federal firearm offenses are January; ANTOINE MCDANIELS, 44, of Chicago; DEANDRE MARTIN, 32, of Chicago; WILLIE ALFORD, 45, of Chicago; TRAVIS WASHINGTON, 24, of Chicago; WENDALL KEMP, 55, of Chicago; and SHAWN HUDSON, 48, of Harvey.
Charged with bank fraud is JOHN ECTOR, 47, of Chicago.
The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The U.S. Attorney’s Office holds gun offenders accountable through Project Guardian and Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategies. The U.S. Attorney’s Office has deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, including by prosecuting individuals who illegally possess firearms. Additional federal law enforcement resources were recently allocated to Chicago under Operation Legend, which will enhance existing efforts by federal law enforcement agencies working in conjunction with state and local law enforcement offices to fight violent crime.
U.S. Attorney’s Office Settles ADA Claim with Hinsdale Plastic Surgeon over Alleged HIV DiscriminationRead the Press Release
CHICAGO — The U.S. Attorney’s Office for the Northern District of Illinois announced today that, as part of continued efforts to enforce the Americans with Disabilities Act, it has reached a settlement with Midwest Plastic Surgery in Hinsdale to resolve claims of discrimination against a 47-year-old woman with HIV.
The U.S. Attorney’s Office found that Midwest Plastic Surgery discriminated against the patient when its plastic surgeon unlawfully refused to perform a breast reduction surgery due to the patient’s HIV status. The patient had been living with HIV for more than 25 years, but this was the first time she had been refused medical treatment because of the virus. The U.S. Attorney's Office’s investigation revealed that Midwest Plastic Surgery’s actions were not based on, or consistent with, current medical knowledge. Moreover, an individual’s HIV status is not a legitimate or lawful reason to refuse to treat a patient seeking medical care.
Under the terms of the settlement agreement and consistent with penalties available under the ADA, Midwest Plastic Surgery will pay $25,000 to the victim of discrimination. In addition, Midwest Plastic Surgery must train its employees on the requirements of the ADA, implement an antidiscrimination policy, and report to the U.S. Attorney’s Office every time a person is not accepted as a patient, with a written justification for the decision. The U.S. Attorney’s Office waived the civil fine in recognition of the remorse expressed by the plastic surgeon for his misconduct and Midwest Plastic Surgery’s cooperation during the investigation.
This settlement is the second HIV-related discrimination case the U.S. Attorney's Office has resolved in recent months. In December 2019, the office reached a settlement with Downers Grove Tattoo Company, which had unlawfully refused to give a customer a tattoo because she was HIV-positive. Under the terms of that settlement agreement, the Downers Grove Tattoo Company paid $10,000 to the victim for violating the ADA. In addition, Downers Grove Tattoo Company was required to train its employees on the requirements of the ADA and implement an antidiscrimination policy.
“Physicians, tattoo artists, and others should understand that individuals seeking medical treatment or other physical care should not be excluded based on HIV,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “These settlements should send a clear message that individuals living with HIV are entitled to the same services as everyone else.”
Title III of the ADA prohibits public accommodations, such as doctor’s offices and tattoo parlors, from excluding people with disabilities, including people with HIV, from enjoying goods, services, privileges, facilities, advantages and accommodations provided. For more information regarding the Department of Justice’s efforts to combat HIV discrimination, please visit https://www.ada.gov/hiv/ada_hiv_discrimination.htm.
The ADA was signed into law 30 years ago this week. To learn more about the obligations of public accommodations under federal disability rights statutes, call the Department of Justice’s toll-free ADA information line at 800-514-0301, 800-514-0383 (TTY), or log on to the ADA website at www.ada.gov.
Cicero Woman Pleads Guilty to Federal Labor Trafficking ChargeRead the Press Release
CHICAGO — A Cicero woman who helped numerous undocumented immigrants from Guatemala illegally enter the United States pleaded guilty today to a federal labor trafficking charge.
CONCEPCION MALINEK, 50, pleaded guilty to one count of labor trafficking. The charge is punishable by up to 20 years in federal prison. U.S. District Judge Edmond E. Chang set sentencing for Oct. 20, 2020, at 3:00 p.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. Valuable assistance was provided by the U.S. Department of Homeland Security, U.S. Department of Labor, Cook County Sheriff’s Office, and Chicago Police Department. The government is represented by Assistant U.S. Attorney Christopher V. Parente.
Malinek admitted in a plea declaration that she assisted ten undocumented Guatemalan immigrants with illegally entering the U.S. from 2009 to 2019. Once in the country, Malinek arranged for the immigrants to reside in her home in Cicero while they worked in nearby jobs. Malinek then threatened to contact U.S. immigration authorities if the immigrants wouldn’t pay her a substantial portion of their earnings.
If you believe you are a victim of labor trafficking, you are encouraged to contact the National Human Trafficking Hotline by calling 1-888-373-7888, or logging on to https://humantraffickinghotline.org/.
Three Individuals Charged in Federal Court with Illegally Possessing Guns or Ammunition in ChicagoRead the Press Release
CHICAGO — Three individuals have been charged with federal offenses for allegedly illegally possessing guns or ammunition in Chicago this week. The charges are the first federal prosecutions in Chicago under the Department of Justice’s Operation Legend.
DARRYL COLLINS, 30, of Dolton, is charged with one count of illegal possession of ammunition by a convicted felon, while ROMEO HOLLOWAY, 21, of Chicago, is charged with one count of illegal possession of a firearm by a convicted felon. Collins and Holloway were previously convicted of criminal felonies and were not lawfully allowed to possess a firearm or ammunition.
DARRYL PHILLIPS, 22, of Chicago, is charged with one count of illegal possession of a machinegun.
All three defendants are currently detained in federal custody.
The federal charges 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 David Brown, Superintendent of the Chicago Police Department. The government is represented in the Collins case by Assistant U.S. Attorney Julia K. Schwartz; in the Holloway case by Assistant U.S. Attorney Jared Hasten; and in the Phillips case by Assistant U.S. Attorney Jeannice W. Appenteng.
The charges are the first federal prosecutions brought under Operation Legend, a Department of Justice initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. As part of Operation Legend, Attorney General William P. Barr directed ATF, FBI, U.S. Marshals Service, and DEA to significantly increase resources into Chicago to help state and local officials fight violent crime, particularly gun offenses. ATF has deployed its national Crime Gun Intelligence Mobile Command Vehicle to assist local law enforcement with analysis of crime scenes and spent shell casings through the National Integrated Ballistic Information Network (NIBIN).
“Operation Legend has strengthened our efforts to apprehend and charge illegal gun offenders in Chicago,” said U.S. Attorney Lausch. “Under Operation Legend, we are working closer than ever with the Chicago Police Department, ATF, and other federal, state, and local law enforcement partners to arrest and prosecute individuals engaging in violent crime in the city.”
According to criminal complaints filed in U.S. District Court in Chicago, Collins was arrested Wednesday afternoon by Chicago Police officers for illegally possessing ammunition, which was in a loaded handgun, in the 8200 block of South Maryland Avenue in the East Chatham neighborhood.
Holloway was arrested Tuesday night by federal and local law enforcement officers for illegally possessing a loaded handgun in the 2700 block of West Flournoy Street in the East Garfield Park neighborhood, according to the complaint. The gun contained ten rounds of live ammunition and had a bullet in the chamber, the complaint states.
Phillips was arrested early Wednesday morning by federal and local law enforcement officers executing a court-authorized search warrant in the 2700 block of West Flournoy Street in the East Garfield Park neighborhood, according to the complaint. Officers discovered a semiautomatic handgun in a bedroom, the complaint states. An ATF special agent reviewed the firearm and determined it was equipped with an auto-sear device, also known as a “switch,” which transformed the firearm into a machinegun capable of automatically shooting more than one shot without manually reloading, the complaint states.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charges are 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.
In addition to the resources allocated under Operation Legend, the U.S. Attorney’s Office holds gun offenders accountable through Project Guardian and Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategies. Project Guardian focuses specifically on investigating, prosecuting, and preventing gun crimes, and it emphasizes the importance of using modern technologies to promote gun crime intelligence. The U.S. Attorney’s Office has deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, including by prosecuting individuals who illegally possess firearms.
Convicted Felon Sentenced to 15 Years in Federal Prison for Illegally Possessing Loaded Gun on South Side of ChicagoRead the Press Release
CHICAGO — A convicted felon has been sentenced to 15 years in federal prison for illegally possessing a loaded handgun in the Avalon Park neighborhood of Chicago.
ANTOINE JACKSON, 31, of Chicago, illegally possessed the loaded gun in the 8200 block of South Woodlawn Avenue on March 4, 2018. Jackson initially ran from Chicago Police officers who attempted to handcuff him, but he was apprehended a short time later. The semiautomatic handgun had a 16-round magazine and was capable of accepting an even larger capacity magazine.
Jackson was not legally allowed to possess a firearm after previously being convicted in the Circuit Court of Cook County for armed robbery and attempted armed robbery.
Jackson pleaded guilty earlier this year in the federal case to one count of illegal possession of a firearm by a felon. U.S. District Judge Joan Humphrey Lefkow imposed the 15-year sentence Wednesday 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.
“Despite being a convicted felon, just three years after getting paroled on his state cases, Jackson was again in possession of a firearm on the streets of Chicago,” Assistant U.S. Attorney Jared C. Jodrey argued in the government’s sentencing memorandum. “Jackson’s criminal record and offense conduct demonstrate a continued disrespect for the law.”
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategies. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district.
Department of Justice Announces Expansion of Operation Legend to ChicagoRead the Press Release
CHICAGO – John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today joined Attorney General William P. Barr and President Donald J. Trump to announce the expansion of Operation Legend to Chicago.
Operation Legend is a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. The Operation was first launched on July 8, 2020, in Kansas City, Mo., as a result of President Trump’s promise to assist America’s cities that are plagued by recent violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29, 2020, in Kansas City. The first federal arrest under Operation Legend was announced on July 20, 2020.
As part of Operation Legend, Attorney General Barr directed the FBI, U.S. Marshals Service, DEA, and ATF to significantly increase resources into Chicago, as well as Albuquerque, N.M., in the coming weeks to help state and local officials fight high levels of violent crime, particularly gun violence.
“A top priority as federal prosecutors is to reduce violent crime, particularly in a large urban area like Chicago,” said U.S. Attorney Lausch. “As part of Operation Legend, additional federal resources will assist our office and our federal, state, and local law enforcement partners to increase prosecutions of trigger-pullers, drug traffickers, carjackers, and those who illegally traffic, use, and possess firearms. We will use these new resources and every other available federal law enforcement tool to reduce the unacceptable level of violent crime in Chicago.”
“The most basic responsibility of government is to protect the safety of our citizens,” said Attorney General Barr. “Today, we have extended Operation Legend to Chicago and Albuquerque to protect the residents of those cities from senseless acts of deadly violence by targeting those involved in gang activity and those who use guns to commit violent crime. For decades, the Department of Justice has achieved significant success when utilizing our anti-violent crime task forces and federal law enforcement agents to enforce federal law and assist American cities which are experiencing upticks in violent crime. The Department of Justice’s assets will supplement local law enforcement efforts, as we work together to take the shooters and chronic violent criminals off of our streets.”
Chicago is currently experiencing a significant increase in violent crime, with homicides up 51% over 2019. Over the weekend of July 17, more than 60 people were shot in the city of Chicago, with 14 fatalities. Similarly, Albuquerque is currently on pace to break 2019’s record for homicides in the city. On the weekend of July 10, there were four murders in Albuquerque within a 24-hour period.
In Chicago, the Department of Justice will supplement state and local law enforcement agencies by sending more than 100 federal investigators from the FBI, DEA, and ATF to the city. Under the leadership of U.S. Attorney Lausch, these investigators will complement the work already underway by existing joint federal, state and local task forces focused on combatting Chicago’s violent criminals, gangs, and drug trafficking organizations. The investigatory efforts will be advanced by more than 100 members of the U.S. Marshals Service Great Lakes Task Force, which will direct violent fugitive apprehension operations within Chicago to identify wanted gang members, violent criminals, and firearms violators. The Department of Homeland Security’s Homeland Security Investigations (HSI) is also committing 100 agents, already stationed in Chicago, to Operation Legend. HSI agents will conduct investigations into gangs, narcotics traffickers, violent offenders, and firearms traffickers.
To further support the Chicago Police Department in reducing violent crime, ATF has deployed its national Crime Gun Intelligence Mobile Command Vehicle to assist local law enforcement with analysis of crime scenes and spent shell casings through the National Integrated Ballistic Information Network (NIBIN). ATF will also make available additional resources to assist the city of Chicago in providing timely, efficient analysis of ballistic evidence from shootings in order to quickly disrupt violent criminals and prosecute those prohibited from possessing firearms under federal law. The Bureau of Justice Assistance will make available $3.5 million in funding to reimburse the Chicago Police Department and City of Chicago for the work of local law enforcement on the federal task forces supporting Operation Legend’s violent crime reduction efforts. The COPS Office has also made $9.375 million available to the Chicago Police Department to fund the hiring of 75 officers.
In Albuquerque, the Department of Justice will supplement state and local law enforcement agencies by sending more than 25 federal investigators from the FBI, DEA, and ATF to the city. Under the leadership of John C. Anderson, United States Attorney for the District of New Mexico, these federal investigators will work closely with the Albuquerque Police Department and the Bernalillo County Sheriff’s Department, along with other local partners, through preexisting task forces directed at combatting violent crimes. Up to ten HSI agents will assist with the efforts in Albuquerque, as well. The Department of Justice has also made available more than $1.5 million in COPS Hiring Grants to the Bernalillo County Sheriff’s Department to onboard five deputies and to support additional federal task force officers committed to violent crime reduction efforts. Separately, the Bureau of Justice Assistance has made available $1.4 million to reimburse the Bernalillo County Sheriff’s Office for the work of local law enforcement on the federal task forces supporting Operation Legend’s violent crime reduction efforts. The Department has also assisted Albuquerque through the Joint Law Enforcement Operations (JLEO) fund to assist reimbursement of local law enforcement serving as federal task force officers with FBI, ATF, DEA, and the U.S. Marshals Service. These JLEO funds also will be used to assist the city of Albuquerque in acquiring technology used for detection of gunshots and development of an integrated response plan to gunshots by local law enforcement.
Three Chicago-Area Residents Charged with Conducting Online Romance Fraud and Other SchemesRead the Press Release
CHICAGO — An undercover federal law enforcement investigation has identified a variety of cyber-enabled fraud conspiracies allegedly carried out by two Nigerian nationals and a U.S. citizen residing in the Chicago suburbs.
One of the alleged schemes involved “romance scams,” in which a conspirator builds trust with a victim through a purported online romance before convincing the victim to send money to a predetermined recipient. The conspirators allegedly communicated with victims throughout the United States via social media and dating websites, including Match.com and OKCupid.com. The charges allege that the conspirators also engaged in other cyber-enabled frauds, including a “business email compromise” scheme and an inheritance fraud. The alleged scams resulted in a loss to victims of at least $750,000, the complaint states.
Charged with conspiracy to commit wire fraud are SAMUEL ANIUKWU, 46, a Nigerian national residing in Romeoville; ANTHONY EMEKA IBEKIE, 55, a Nigerian national residing in Oswego; and JENNIFER GOSHA, 48, a U.S. citizen residing in Oak Park. All three defendants were arrested last week. Aniukwu is scheduled to appear for a detention hearing today at 2:30 p.m. before U.S. Magistrate Judge Susan E. Cox. Ibekie is scheduled to appear for a detention hearing before Judge Cox on July 24, 2020, at 9:30 a.m. Gosha has been released on bond.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; James M. Gibbons, Special Agent-in-Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago; William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Robert Berlin, DuPage County State’s Attorney. Assistant U.S. Attorneys Saurish Appleby-Bhattacharjee and Paige Nutini represent the government.
In the business email compromise scheme, the conspirators allegedly defrauded victims by targeting corporate email accounts via computer intrusion techniques, the complaint states. Correspondence to those email accounts were blocked while the conspirators used them to communicate with unsuspecting victims in an attempt to induce fraudulent wire transfers. In the inheritance fraud scam, the conspirators fraudulently told victims that they had received a substantial inheritance and needed to send money to the conspirators in order to claim it, the complaint states.
The charges allege that the defendants created fictitious business entities and opened numerous bank accounts in those entities’ names in order to launder proceeds from the fraud schemes. During a court-authorized search last week of Aniukwu’s residence, law enforcement seized multiple digital devices, including a cellphone that contained letters purported to be from “Standard Charter Financial Group,” according to the government’s memorandum in support of Aniukwu’s detention. The letters were addressed to victims regarding processing of the bogus inheritance payments, the memorandum states.
The charge in the complaint carries a maximum sentence of 20 years in prison. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that a complaint contains only accusations and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Registered Sex Offender from Chicago Charged with Possessing Child PornographyRead the Press Release
CHICAGO — A Chicago man who allegedly possessed numerous sexually explicit videos of children has been indicted on a federal child pornography charge.
JOSEPH WERWATH, 36, is charged with one count of possession of child pornography. The charge carries enhanced sentencing penalties, including a mandatory minimum sentence of ten years in federal prison and a maximum of 20 years, due to a prior qualifying conviction involving a minor, for which Werwath has had to register as a sex offender.
During a court-authorized search of Werwath’s residence last month, federal law enforcement observed a video depicting child pornography playing on an electronic device in a bedroom, according to a criminal complaint previously filed in the case. Approximately 40 other videos depicting child pornography were discovered on the device, according to the complaint.
Werwath is currently detained in federal custody. He was arraigned in U.S. District Court in Chicago this morning and pleaded not guilty to the child pornography charge. The next court date was set for Sept. 9, 2020, at 1:30 p.m.
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 investigation was conducted by the FBI Chicago Child Exploitation and Human Trafficking Task Force, which includes the Chicago Police Department, Cook County Sheriff’s Office, and Cook County State’s Attorney’s Office. Valuable assistance was provided by the Harwood Heights Police Department. The government is represented by Assistant U.S. Attorney Jason A. Julien.
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.
18 Defendants Charged in Federal Drug Probe Targeting Heroin and Fentanyl-Laced Heroin Sales in ChicagoRead the Press Release
CHICAGO — Eighteen individuals have been charged in federal court with conspiring to sell heroin or fentanyl-laced heroin on the Northwest Side of Chicago.
The defendants participated in a drug trafficking operation that was responsible for distributing approximately 12.6 kilograms of heroin, more than 23 kilograms of heroin laced with fentanyl or fentanyl-analogue, and 2.56 kilograms of heroin laced with both fentanyl and fentanyl analogue, according to a criminal complaint filed in U.S. District Court in Chicago. Much of the alleged drug trafficking occurred in the Humboldt Park neighborhood on the Northwest Side of Chicago.
During the multi-year investigation, dubbed “Operation Monticello’s Revenge,” law enforcement shut down a busy open-air drug market utilized by the defendants in the 1000 block of North Monticello Avenue in Chicago. Agents and officers from the U.S. Drug Enforcement Administration and Chicago Police Department made approximately eighty undercover purchases of heroin and fentanyl-laced heroin from various members of the crew, the charges allege.
Most of the 18 federal defendants were arrested last week and have begun making initial appearances in U.S. District Court in Chicago. In addition to the federal defendants, four other individuals were charged in state court and will be prosecuted by the Cook County State’s Attorney’s Office.
The federal charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the DEA; and David Brown, Superintendent of CPD. Substantial assistance was provided by the Cook County State’s Attorney’s Office and the IRS Criminal Investigation Division in Chicago. Assistant U.S. Attorneys Richard M. Rothblatt and Jason A. Julien represent the government.
The investigation was conducted with the support of the Chicago High Intensity Drug Trafficking Task Force (HIDTA). The task force is comprised of federal, state, and local law enforcement agencies who work together to identify, disrupt, and dismantle the most serious drug trafficking organizations.
Charged in the federal drug conspiracy are: SAM HOWARD, 32; WILLIE TATE, 45; KELVIN FRANKLIN, 28; STEVEN DYER, 43; MORRIO BONDS, 37; ANTONIO LEE, 39; DWAYNE PETERSON, 36; ANTHONY DAVIS, 30; FLOYD STEWART, 35; WILL HOWARD, 29; TORIAN JOHNSON, 26; JAMES HUGHES, 36; KAMRON GARRAWAY, 27; SAVAN WARD, 28; JEREMY HAMPTON, 31; JOHNNIE DANIELS, 34; and ROBERT STUCKEY, 20, all of Chicago; and BRYANT BARNES, 29, of Justice.
According to the federal complaint, Sam Howard and Franklin personally sold drugs and also worked as street-level managers of the trafficking organization. They coordinated with Tate, Bonds, and Lee to ensure that the crew had sufficient quantities of narcotics to distribute to customers, the complaint states. The other defendants allegedly served as street-level traffickers who would give Sam Howard and Franklin the proceeds from the sales.
The complaint also describes an attempt by Franklin to secure a handgun for use at the Monticello Avenue drug market. In October 2019, Franklin asked a woman to deliver the loaded gun to members of the drug trafficking organization, the complaint states. Law enforcement intervened in the delivery and the gun was never delivered, the complaint states. The firearms aspect of the federal probe remains under investigation.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Commonwealth Edison Agrees to Pay $200 Million to Resolve Federal Criminal Investigation into Bribery SchemeRead the Press Release
CHICAGO — Commonwealth Edison Company (“ComEd”), the largest electric utility in Illinois, has agreed to pay $200 million to resolve a federal criminal investigation into a years-long bribery scheme, the U.S. Attorney’s Office in Chicago announced today.
The criminal investigation of ComEd is being resolved with a deferred prosecution agreement under which ComEd admitted it arranged jobs, vendor subcontracts, and monetary payments associated with those jobs and subcontracts, for various associates of a high-level elected official for the state of Illinois, to influence and reward the official’s efforts to assist ComEd with respect to legislation concerning ComEd and its business. The U.S. Attorney’s Office today filed a one-count criminal information in U.S. District Court in Chicago charging ComEd with bribery. Under the agreement, the government will defer prosecution on the charge for three years and then seek to dismiss it if ComEd abides by certain conditions, including continuing to cooperate with ongoing investigations of individuals or other entities related to the conduct described in the bribery charge.
The deferred prosecution agreement, which is subject to approval by the U.S. District Court, requires ComEd to pay a $200 million fine. A court date for the approval hearing has not yet been scheduled.
The bribery charge and deferred prosecution agreement were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Diane MacArthur, Timothy J. Chapman, Sarah E. Streicker, Matthew L. Kutcher, and Michelle Kramer.
In addition to the monetary penalty and obligation to continue cooperating with government investigations, ComEd’s obligations under the deferred prosecution agreement include enhancing its compliance program and providing annual reports to the government regarding remediation and implementation of its compliance measures. If ComEd fails to completely perform or fulfill each of its obligations under the agreement during the three-year term, the U.S. Attorney’s Office can initiate prosecution of the charged offense.
ComEd’s admissions regarding the charged conduct are contained in a Statement of Facts attached to the deferred prosecution agreement. ComEd admitted that its efforts to influence and reward the high-level elected official – identified in the Statement of Facts as “Public Official A” – began in or around 2011 and continued through in or around 2019. During that time, the Illinois General Assembly considered bills and passed legislation that had a substantial impact on ComEd’s operations and profitability, including legislation that affected the regulatory process used to determine the electricity rates ComEd charged its customers. Public Official A controlled what measures were called for a vote in the Illinois House of Representatives and exerted substantial influence over fellow lawmakers concerning legislation affecting ComEd. The company admitted that it arranged for jobs and vendor subcontracts for Public Official A’s political allies and workers even in instances where those people performed little or no work that they were purportedly hired by ComEd to perform.
In addition to the jobs and contracts, ComEd further admitted that it undertook other efforts to influence and reward Public Official A, including by appointing an individual to ComEd’s Board of Directors at the request of Public Official A; retaining a particular law firm at the request of Public Official A; and accepting into the company’s internship program a certain amount of students who resided in the Chicago ward where Public Official A was associated.
To date, ComEd has provided substantial cooperation with the federal investigations. Per the terms of the agreement, the company will continue to provide such cooperation until all investigations and prosecutions arising out of the charged conduct are concluded.
Former Chicago Police Officer Sentenced to Nearly Six Years in Federal Prison for Fraudulently Obtaining Search Warrants and Obstructing JusticeRead the Press Release
CHICAGO — A former Chicago Police officer was sentenced today to nearly six years in federal prison for fraudulently obtaining search warrants and stealing cash and drugs from properties he searched.
U.S. District Judge Matthew F. Kennelly imposed the 71-month sentence on DAVID SALGADO after a hearing in federal court in Chicago. Last month, Judge Kennelly sentenced Salgado’s former Chicago Police partner, XAVIER ELIZONDO, to seven years and three months in prison.
The sentences were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. The Chicago Police Department provided valuable assistance.
Salgado, 39, and Elizondo, 48, both of Chicago, were assigned to a gang team in the Chicago Police Department’s Tenth District. The officers conspired to submit materially false information to state court judges to fraudulently obtain search warrants that enabled them to enter various properties and seize cash and drugs. The officers would then steal the items and falsify police reports to conceal the thefts.
A jury in October 2019 convicted Elizondo and Salgado on all counts against them, including conspiracy to commit theft, deprivation of civil rights, embezzlement, and obstruction of justice. Salgado was also convicted of making a false statement to the FBI.
“The defendants fundamentally betrayed the trust placed in them by the public and the state’s criminal justice system,” Assistant U.S. Attorneys Sean J.B. Franzblau and Ankur Srivastava argued in the government’s joint sentencing memorandum. “The defendants not only harmed individual victims, but they also impaired the public’s confidence in law enforcement.”
Six Rockford Residents Sentenced on Federal Fraud Charges Related to Supplemental Nutrition Assistance Program (“SNAP”)Read the Press Release
ROCKFORD — Six Rockford residents were sentenced Monday in federal court by U.S. District Judge Matthew F. Kennelly on wire fraud or money laundering charges.
Leeform “John” Xayvandy, Sr., 39, pleaded guilty on Nov. 27, 2019, to one count of wire fraud and one count of money laundering. He was sentenced to three years in prison and ordered to pay approximately $3.18 million in restitution.
Som Xayvandy, 49, pleaded guilty on Nov. 4, 2019, to one count of wire fraud. He was sentenced to 18 months in prison and ordered to pay approximately $2.77 million in restitution.
Vansy “Dee” Xayvandy, 45, pleaded guilty on Jan. 27, 2020, to one count of wire fraud. She was sentenced to 15 months in prison and ordered to pay approximately $2.77 million in restitution.
Christiana “Tina” Xayvandy, 28, pleaded guilty on Nov. 4, 2019, to one count of wire fraud. She was sentenced to 15 months in prison and ordered to pay approximately $2.97 million in restitution.
Feuy Khaikham, 59, pleaded guilty on Nov. 18, 2019, to one count of wire fraud and one count of money laundering. She was sentenced to 15 months in prison and ordered to pay approximately $2.03 million in restitution.
Aung Gyaw, 25, pleaded guilty on Jan. 3, 2020, to one count of wire fraud. He was sentenced to six months of home confinement and ordered to pay approximately $2.97 million in restitution.
The sentencings were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Anthony Mohatt, Special Agent-in-Charge of the Midwest Regional Office of the U.S. Department of Agriculture, Office of Inspector General in Chicago; and Kathy A. Enstrom, Special Agent-in-Charge of the Chicago office of the Internal Revenue Service, Criminal Investigation Division. The Rockford Police Department and Winnebago County Sheriff’s Office assisted in the investigation. The government was represented by Assistant U.S. Attorney Talia Bucci.
The wire fraud charges relate to the Supplemental Nutrition Assistance Program (“SNAP”), formerly known as the food stamp program. SNAP is a federal benefit program administered by the U.S. Department of Agriculture in conjunction with state governments. It provides nutrition benefits to supplement the food budgets of eligible individuals and families. Stores authorized to participate in SNAP can accept SNAP benefits only as payment for eligible food items, and it is illegal for stores and individuals to exchange SNAP benefits for cash - a practice commonly referred to as SNAP trafficking.
According to written plea agreements entered by the six defendants, between April 2015 and January 2017, the defendants schemed to defraud the USDA by fraudulently accepting and redeeming SNAP benefits exchanged for discounted amounts of cash, knowing that such exchanges were prohibited under SNAP. As part of the scheme, defendants conducted SNAP trafficking at multiple stores in Rockford, including Pattaya Grocery Foods, formerly located at 108 15th Ave., B&P Foods Market, formerly located at 102 15th Ave.), Platinum Electronics and More, formerly located at 1114 Broadway, and Mr. Clark Groceries, formerly located at 1019 S. Main St.. Proceeds from the SNAP trafficking transactions were deposited into bank accounts controlled by the defendants and then distributed to other members of the scheme through cash payments or check. Som Xayvandy and Khaikham admitted in their plea agreements that they previously owned stores that were permanently disqualified from participating in SNAP in 2014 after USDA Food and Nutrition Services found that SNAP trafficking had been conducted at those stores.
Leeform Xayvandy, Sr., and Khaikham also admitted that they conducted financial transactions affecting interstate commerce involving the proceeds of the wire fraud scheme. Khaikham admitted that she directed a nominee owner of B&P Foods Market to cash checks from the store’s bank account and return the proceeds to Khaikham. Leeform Xayvandy, Sr., admitted that he issued checks from B&P Foods Market’s bank account to two other individuals, and directed those individuals to cash the checks and return the proceeds to him. Leeform Xayvandy, Sr., and Khaikham admitted that they did so in order to conceal the nature, ownership, and control of the wire fraud proceeds involved in those transactions.
A seventh defendant, Bounleung “Tommy” Thamontri, 56, was also charged with wire fraud, food stamp fraud, money laundering, and conspiracy to commit money laundering. Thamontri remains at large.
Federal Prosecutions Serve as Reminder to Comply with Tax Obligations as Revised Filing Deadline ArrivesRead the Press Release
CHICAGO — With the upcoming arrival of Tax Day on July 15, the U.S. Attorney’s Office and IRS Criminal Investigation Division in Chicago remind taxpayers to accurately file their returns and promptly pay any money owed.
The new deadline to file and pay 2019 income taxes and estimated taxes is Wednesday, July 15, 2020. The federal government and state of Illinois postponed the original filing deadline of April 15 due to the COVID-19 pandemic.
Tax evaders face criminal charges, including potential incarceration, as well as civil penalties, and they remain responsible for all taxes and interest due, said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.
“Taxes are how governments provide essential services,” said U.S. Attorney Lausch. “Tax offenses are neither victimless nor without consequence. Our office strives to preserve the integrity of the federal tax system through vigorous enforcement of the internal revenue laws.”
“As the tax filing deadline quickly approaches, I am asking all citizens to file correct and accurate tax returns and to pay their share of taxes,” said Special Agent-in-Charge Enstrom. “We all pay when others cheat the government. IRS Criminal Investigation, together with the U.S. Attorney’s Office, works year-round to make certain that those who willfully defy the tax laws will be investigated and criminally prosecuted. Taxpayers are encouraged to visit the IRS.gov website for tips on filing a tax return accurately and searching for a reputable return preparer.”
Several Chicago-area defendants have recently been prosecuted in federal court for a variety of tax violations, exemplifying the serious nature of the offense.
MOHAMMAD KHATIB and his wife, LISA KHATIB, pleaded guilty to filing false tax returns. The couple concealed more than $2.2 million in taxable income from their business in south suburban Harvey, leading to a total tax loss of at least $822,266. U.S. District Judge Sharon Johnson Coleman sentenced Mohammad Khatib to two years in federal prison, and Lisa Khatib to six months of home confinement. The government was represented by Assistant U.S. Attorney Sean J.B. Franzblau.
SAMANTHA RILEY, of Oak Park, pleaded guilty to stealing federal tax refunds in other taxpayers’ names and directing the money to be deposited into her personal bank accounts. Riley used the illegal proceeds to purchase clothing at Gucci and to make a down payment on a Porsche Cayenne. U.S. District Judge Virginia M. Kendall sentenced Riley to five years of probation and ordered her to pay $77,726 in restitution to the IRS. The government was represented by Assistant U.S. Attorney Sean K. Driscoll.
Another recent tax prosecution resulted in a term of imprisonment for a Chicago business owner for filing a false tax return. PATRYK TRYNDA, the sole owner of Kitchen and Bath Design Inc., failed to report $4.03 million of gross receipts for 2015 and 2016, resulting in tax losses of $345,091. Trynda also employed at least eleven individuals but failed to pay payroll taxes to the IRS for the years 2015, 2016, and 2017, causing $166,617 in additional tax losses. U.S. District Judge Andrea R. Wood sentenced Trynda to a year and day in federal prison and ordered him to pay a fine of $10,000. The government was represented by Assistant U.S. Attorney Jordan Matthews.
A federal prison sentence was also handed down to ROBERT S. WAKSMUNDZKI, of Chicago and Palos Hills, on conspiracy and false tax return charges. For several years Waksmundzki significantly underreported income he received from operating multiple websites, including Torrentz, through which visitors were re-directed via links to other sites where they could download motion picture content without the authority of lawful copyright holders. U.S. District Judge Edmond E. Chang sentenced Waksmundzki to a year and a day in federal prison and ordered him to pay $194,166 in restitution to the IRS. The government was represented by Assistant U.S. Attorney Sean K. Driscoll.
RICHARD T. DAVIS, the owner of a McHenry County tooling and plastics business, pleaded guilty to diverting nearly $500,000 in business receipts into his personal checking account and failing to report the income on his personal tax return. U.S. District Judge Philip G. Reinhard sentenced Davis to two years of probation and ordered him to pay restitution of $113,845 to the IRS. The government was represented by Assistant U.S. Attorney Michael Love.
For tips to assist taxpayers in choosing a reputable tax professional or preparing their own taxes, visit the official IRS website at https://www.irs.gov/newsroom/irs-tax-tips. Taxpayers facing hardships due to COVID-19 may also find assistance by visiting the official IRS website at https://www.irs.gov/coronavirus-tax-relief-and-economic-impact-payments.
13 Defendants Charged in Second Phase of Federal Investigation Targeting Heroin Trafficking on West Side of ChicagoRead the Press Release
CHICAGO — Thirteen individuals are facing criminal charges as part of the second phase of a federal investigation into heroin trafficking on the West Side of Chicago.
The 13 new defendants allegedly participated in a drug trafficking operation that was responsible for distributing at least 25 kilograms of heroin to individual customers in Chicago from at least February 2019 until earlier this month, when law enforcement shut down the operation. The street-level sales occurred at two open-air drug markets in the city’s Austin neighborhood.
The charges are the result of the second phase of “Operation Dirty Ice,” a multi-agency investigation led by the FBI, IRS Criminal Investigation Division, and Chicago Police Department. The first phase of the probe led to drug conspiracy charges against eleven other defendants in October 2018. Operation Dirty Ice was conducted in collaboration with the Organized Crime Drug Enforcement Task Force (OCDETF), whose principal mission is to identify, disrupt, and dismantle the most serious drug trafficking organizations.
During the probe, authorities seized three kilograms of heroin, 500 grams of crack cocaine, approximately $1.1 million in illicit cash proceeds, five handguns, and a rifle.
A criminal complaint filed in U.S. District Court in Chicago charges the 13 new defendants with conspiracy to possess a controlled substance with the intent to distribute. All of the defendants have made initial appearances in federal court in Chicago.
The charges 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 office of the FBI; Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and David Brown, Superintendent of CPD. Assistant U.S. Attorneys Kelly Guzman and Kaitlin Klamann represent the government.
The newly charged defendants are CLIFTON COLEMAN, 45, of Westchester; TARRENCE WATSON, 45, of Bellwood; BERNARD ROWSEY, 42, of Chicago, and his brother, RODNEY ROWSEY, 41, of Chicago; CHARLES ARMSTRONG, 55, of Chicago; DEXTER JONES, 48, of Chicago; VERNON EDWARDS, 49, of Chicago; LAVERIC DAWSON, 36, of Chicago; KEITH MOORE, 49, of Oak Park; ERIC BERNARD, 53, of Chicago; KENNETH BOWDRY, 57, of Chicago; BRYAN LANDFAIR, 58, of Chicago; and MORRIS SIMMONS, 59, of Chicago.
According to the charges, Coleman led a drug trafficking organization that obtained and distributed 800 to 1,000 grams of heroin in the Chicago area on a weekly basis. Coleman’s crew used two stash houses to mix the heroin with other substances, including sleeping pills, in preparation for street-level distribution, the complaint states. During the investigation, law enforcement observed numerous hand-to-hand purchases of heroin at the two open-air drug markets, located near the intersections of Chicago and Lavergne Avenues, and Chicago and Pine Avenues. Police also coordinated undercover purchases of heroin at the markets, the complaint states.
The public is reminded that a complaint only contains a charge and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.