Northern District of Illinois
Press releases recorded for this federal judicial district.
Five Defendants Indicted in Federal Drug Investigation Centered on North Side of ChicagoRead the Press Release
CHICAGO — Five individuals have been indicted on drug charges as part of a federal investigation into cocaine trafficking on Chicago’s North Side.
During the multi-year investigation, law enforcement seized more than 365 grams of suspected crack or powder cocaine, and six grams of fentanyl. Much of the alleged drug trafficking occurred in the West Ridge neighborhood on the North Side of Chicago.
An indictment returned Thursday in U.S. District Court in Chicago charges five defendants with conspiracy and other federal drug offenses: JOSHUA MOORE, also known as “Big Moe” and “Big Guy,” 41; JOHN HEARD, also known as “Bird,” 30; EARNEST GREENE, also known as “Ernie,” 20; JOSE FONTANEZ, also known as “Joey Crack,” 38; and ANTONIO MAXEY, also known as “Tone,” 32; all of Chicago. Greene currently remains at large, while the other defendants are either in law enforcement custody or have been released on court-supervised bond.
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 office of the FBI; and David Brown, Superintendent of the Chicago Police Department. Assistant U.S. Attorneys Shawn McCarthy and Katie M. Durick represent the government.
According to the indictment and a criminal complaint previously filed in the case, Moore operated a drug trafficking organization near the intersection of Devon and Western Avenues in Chicago. Moore’s operation also utilized a drug stash house in the 7000 block of North Rockwell Street in Chicago, directly across the street from Indian Boundary Park, the charges allege.
As part of his operation, Moore purchased wholesale quantities of cocaine and packaged it for distribution on the street, the charges state. He also allegedly “cooked” the powder cocaine into crack cocaine for street sale. Moore either sold narcotics directly to customers or supplied the drugs to his co-defendants to handle the sales, the charges state.
During the investigation, law enforcement made numerous undercover purchases of crack cocaine or powder cocaine from Moore’s organization, according to the charges.
The public is reminded that an indictment 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. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
North Suburban Man Charged in Federal Court with Illegal Sports Bookmaking and Tax OffensesRead the Press Release
CHICAGO — The U.S. Attorney’s Office in Chicago today charged a north suburban man with illegal sports bookmaking and filing a false federal income tax return.
From 2014 to 2018, DOMINIC POETA, 63, of Highland Park, unlawfully operated a business that provided sports betting and wagering services, both domestically and abroad, according to a criminal information filed in U.S. District Court in Chicago. The information also charges Poeta with filing a false federal income tax return for the calendar year 2016 that falsely reported his total income was $81,609, knowing his actual income substantially exceeded that amount.
Poeta will be arraigned in federal court in Chicago on a future date to be set by the Court.
The information was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kathy A. Enstrom, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and John Crawford, Special Agent-in-Charge of the Chicago Regional Office of the Federal Deposit Insurance Corporation, Office of Inspector General. The government is represented by Assistant U.S. Attorney Patrick King.
The public is reminded that an information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The tax charge is punishable by up to three years in federal prison, while the bookmaking charge is punishable by up to two years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Additional Federal Charges Filed Against Springfield Man in Connection with Killing of Special Deputy U.S. Marshal Jacob KeltnerRead the Press Release
ROCKFORD — A superseding indictment returned today by a federal grand jury in Rockford adds new charges against FLOYD E. BROWN in connection with the killing of Special Deputy U.S. Marshal Jacob Keltner.
Brown, 41, of Springfield, was originally charged with one count of killing a federal law enforcement officer and two counts of illegal firearm possession. Special Deputy Keltner was fatally wounded on March 7, 2019, in Rockford. He served as a McHenry County Sheriff’s deputy and was a sworn member of the U.S. Marshals Service Great Lakes Regional Fugitive Task Force.
The superseding indictment returned today renews the three prior counts and adds several new charges in connection with the killing of Special Deputy Keltner and other acts allegedly committed by Brown on the day of the murder: one count of attempting to kill a Deputy Marshal and two Special Deputy Marshals; one count of using a deadly and dangerous weapon to forcibly assault Special Deputy Keltner; one count of using a deadly and dangerous weapon to forcibly assault a Deputy Marshal and two Special Deputy Marshals; one count of discharging a firearm during a crime of violence, causing the death of Special Deputy Keltner; and one count of discharging a firearm during the assault and attempted murder of the Deputy Marshal and two Special Deputy Marshals.
An arraignment date in federal court in Rockford has not yet been scheduled.
The superseding 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. Several agencies have assisted in the investigation, including the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, Rockford Police Department, Winnebago County Sheriff’s Office, Bloomington Police Department, Lincoln Police Department, Logan County Sheriff’s Office, and Illinois State Police. The government is represented by Assistant U.S. Attorneys Talia Bucci and Scott Paccagnini.
The public is reminded that a superseding indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The counts pertaining to the killing of Special Deputy Keltner carry a maximum sentence of life imprisonment or death. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Chicago Man Who Fired Gun into Murder Victim’s Grave During Burial Service Sentenced to 15 Years in Federal PrisonRead the Press Release
CHICAGO — A Chicago man who fired a gun into the grave of a murder victim during his burial service has been sentenced to 15 years in federal prison.
During the Nov. 22, 2017, service at Evergreen Cemetery in Evergreen Park, ELSTON STEVENSON drew a handgun and said words to the effect of, “You ain’t [expletive]. You got what you deserved.” Stevenson fired a single shot into the grave of the deceased man, who had been murdered two days earlier.
Stevenson then waved the gun in the direction of the mourners as he fled the service. He was arrested a short time later near the entrance of the cemetery.
Stevenson, 57, pleaded guilty to one count of illegal possession of a firearm by a previously convicted felon. U.S. District Judge John J. Tharp, Jr., imposed the 15-year sentence July 1, 2020, in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. Valuable assistance was provided by the Cook County State’s Attorney’s Office and the Evergreen Park Police Department.
“When a felon brings a loaded gun to a populated area and uses the gun to threaten and endanger strangers, this conduct will not be tolerated,” Assistant U.S. Attorney Cornelius A. Vandenberg argued in the government’s sentencing memorandum. “The mourners were all in the immediate vicinity of the defendant when he produced the loaded weapon and were placed in danger by the defendant’s reckless firing of the weapon into the gravesite.”
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods (PSN) – 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. 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.
Nigerian National Expelled from the United Arab Emirates to Face Cyber Fraud Charge in ChicagoRead the Press Release
CHICAGO — A Nigerian national who allegedly orchestrated an international cyber fraud scheme targeting several U.S.-based companies has been expelled from the United Arab Emirates to face a federal criminal charge in Chicago.
OLALEKAN JACOB PONLE, also known as “Mr. Woodbery” and “Mark Kain,” 29, originally of Lagos, Nigeria, is charged in U.S. District Court in Chicago with conspiracy to commit wire fraud. A criminal complaint accuses Ponle of orchestrating “business email compromise” schemes to defraud several U.S.-based companies. The schemes resulted in attempted or actual losses to victim companies in the tens of millions of dollars, including a Chicago-based company that was defrauded into sending wire transfers totaling $15.2 million, the complaint states.
Ponle was arrested last month by law enforcement in the United Arab Emirates, where he had been residing. He was subsequently expelled from the UAE into the custody of the FBI and arrived in Chicago Thursday evening. Ponle made an initial court appearance this morning in Chicago. U.S. Magistrate Judge Jeffrey T. Gilbert set a detention hearing for July 9, 2020, at 4:00 p.m.
The complaint and expulsion 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 Criminal Division’s Office of International Affairs at the Justice Department provided substantial assistance. The government of the United Arab Emirates and the Dubai Police Department provided valuable assistance. Assistant U.S. Attorney Melody Wells of the Northern District of Illinois is prosecuting the case.
Ponle’s alleged cyber fraud scheme spanned at least the first nine months of 2019. The complaint describes several instances in which one or more unknown subjects gained unauthorized access to a U.S.-based company’s email account and sent messages to unwitting employees claiming to be from the company or a known business contact. The emails were nearly identical to prior legitimate emails sent over the company’s email account, but the fraudulent emails instructed victims to wire funds to a bank account that was set up by money mules at the direction of Ponle, the complaint states. Ponle then instructed the mules to convert the fraud proceeds to Bitcoin and send them to a virtual wallet that Ponle owned and operated, the complaint states.
In addition to the Chicago-based companies, other victims included companies based in Iowa, Kansas, Michigan, New York, and California, the complaint states.
The public is reminded that a complaint contains only accusations 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. Conspiracy to commit wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Three Individuals Charged with Trying to Steal Cash from Aurora ATMRead the Press Release
CHICAGO — Three men have been charged in federal court with attempting to steal cash from an automated-teller machine in downtown Aurora.
On the evening of May 31, 2020, FERMIN OCAMPO-TELLEZ, DIEGO VARGAS, and MICHAEL GOMEZ, along with other individuals, attempted to remove the ATM from its enclosure in the drive-through area of a First Midwest Bank branch in the first block of South Broadway in Aurora, according to a criminal complaint filed in U.S. District Court in Chicago. The trio forcibly grabbed the machine and Ocampo-Tellez repeatedly struck it with a baseball bat in an unsuccessful attempt to move it, the complaint states. No money was taken, but bank officials estimated it will cost $30,000 to repair the machine, the complaint states.
The complaint charges Ocampo-Tellez, 27, Vargas, 24, and Gomez, 19, all of Aurora, with one count of conspiracy to commit bank theft. All three defendants were arrested Wednesday and have made initial appearances in federal court in Chicago. The investigation remains ongoing.
The complaint and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. The Aurora Police Department and Naperville Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorney Kate McClelland.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The conspiracy charge carries a maximum sentence of five years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. sentencing guidelines.
Federal, State, and Local Law Enforcement Officials Will Hold News Conference Today at 10:30 A.M. to Announce Charges in Significant Gang InvestigationRead the Press Release
U.S. Attorney John R. Lausch, Jr., Chicago Police Superintendent David Brown, ATF Chicago Special Agent-in-Charge Kristen deTineo, DEA Chicago Special Agent-in-Charge Robert J. Bell, IRS-CI Special Agent-in-Charge Kathy A. Enstrom, and Chicago HIDTA Executive Director Nicholas Roti will hold a news conference today to announce charges in a significant gang investigation.
The news conference will begin at 10:30 a.m. It will be held outdoors at Quincy Plaza, the east courtyard of the Dirksen Federal Building, 219 S. Dearborn Street, Chicago IL 60604. Media members will enter the building on Dearborn, proceed through security, and enter the enclosed courtyard.
Media credentials and masks will be required to access the news conference. Social distancing will be required during the conference
WHO: John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, Kristen deTineo, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Robert J. Bell, Special Agent in Charge of the Drug Enforcement Administration; Kathy A. Enstrom, Special Agent in Charge of the Internal Revenue Service Criminal Investigation; David Brown, Superintendent of the Chicago Police Department, and Nicholas Roti, Executive Director of Chicago HIDTA.
WHAT: The officials will announce charges against multiple defendants in a joint federal, state, and local gang investigation.
WHERE: Quincy Plaza, 219 S. Dearborn Street, Chicago IL 60604
Media credentials and masks will be required to access the news conference.
WHEN: Friday, June 26, 2020, 10:30 A.M.
CONTACT: U.S. Attorney’s Office - Public Information Office
Email: [email protected]
Phone: (312) 371-3191
Chinese Businesswoman Sentenced to 37 Months in Federal Prison for Conspiracy to Commit Visa FraudRead the Press Release
CHICAGO — A Chinese businesswoman was sentenced today to 37 months in federal prison for conspiracy to commit visa fraud.
WEIYUN HUANG, also known as “Kelly Huang,” 30, of Beijing, China, provided false verifications of employment for foreign nationals seeking to stay in the United States on F-1 or H-1B visas. Huang previously pleaded guilty to one count of conspiracy to commit visa fraud. U.S. District Court Judge Thomas M. Durkin on Friday imposed the prison sentence in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and James M. Gibbons, Special Agent-in-Charge of Homeland Security Investigations in Chicago. The government is represented by Assistant U.S. Attorney Shoba Pillay.
An F-1 visa permitted a foreign national to study in the United States at a university or other academic institution. An F-1 visa-holder could extend the visa by participating in a program that required the student to obtain temporary employment in their area of study. An H-1B visa permitted U.S.-based employers to temporarily employ foreign nationals in specialty occupations. Foreign nationals with an H-1B visa were permitted to stay in the U.S. for three years, with the possibility of extending their stay to six years.
Huang admitted in a plea agreement that she founded two companies – FINDREAM LLC and SINOCONTECH LLC – for the purported purpose of employing foreign nationals in the United States. Huang advertised fraudulent visa-related employment with Findream on websites. In reality, in exchange for a fee, Huang and the companies provided false offer letters and verification of employment letters as purported evidence of employment, knowing the customers did not work at Findream or Sinocontech. Huang also completed, signed, and certified immigration forms detailing the customers’ purported work at the companies. For customers who sought proof of payroll, the customer had to provide the payroll funds to Huang, and Huang then caused direct deposits, falsely purporting to be payroll payments, from Findream’s bank accounts to be deposited in the customers’ bank accounts, and issued Form 1099-MISC tax forms documenting the purported salary.
The fraud scheme allowed at least approximately 2,693 customers to list Findream or Sinocontech as their employer in order to stay in the U.S. on the visas, Huang further admitted in a plea agreement. Huang and her two companies received at least approximately $1.5 million from customers for whom they agreed to falsely certify employment.
“Immediately upon graduating from a United States-based university, defendant manufactured a scheme to defraud the United States for her own financial benefit and in direct violation of the United States immigration and criminal laws,” Assistant U.S. Attorney Shoba Pillay argued in the government’s sentencing memorandum. “Defendant took her deep understanding of the United States visa system to exploit that system for her own benefit, while creating a significant risk to the United States.”
Findream, which was incorporated in California, and Sinocontech, which was incorporated in Delaware, previously pleaded guilty to conspiracy to commit visa fraud.
Huang plea agreementAurora Man Arrested on Federal Civil Disorder Charge for Allegedly Throwing an Explosive Device at A Naperville Police VehicleRead the Press Release
CHICAGO — An Aurora man was arrested today on a federal civil disorder charge for allegedly throwing an explosive or incendiary device at a Naperville Police Department vehicle during a protest earlier this month.
CHRISTIAN REA threw the explosive device in the proximity of the police vehicle, and the officers that were standing near the vehicle, which subsequently detonated causing an explosion, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Panic ensued in the crowd of protesters, with people running in all directions, the complaint states.
The complaint charges Rea, 19, with one count of civil unrest. Federal authorities arrested Rea Thursday morning. An initial federal court appearance was held on June 25, 2020, before U.S. Magistrate Judge Beth Jantz.
The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. Valuable assistance was provided by the Naperville Police Department, the Aurora Police Department, and the FBI Joint Terrorism Task Force. The government is represented by Assistant U.S. Attorney Barry Jonas.
“Federal law enforcement will use all tools available to hold accountable individuals who interfere with law enforcement officers performing their duties during a civil disorder,” said U.S. Attorney Lausch. “We will continue to work with our federal, state, and local partners to apprehend and charge individuals engaging in violent crime.”
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charge in the complaint is punishable by a maximum sentence of 5 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
24 Defendants Charged in Joint Federal and State Investigation of Two Violent Street Gangs on the West Side of ChicagoRead the Press Release
CHICAGO — Twenty-four individuals are facing federal charges following an investigation targeting two street gangs responsible for firearms offenses, narcotics trafficking, and violence on the West Side of Chicago.
During the investigation, dubbed “Operation Full Circle,” federal, state, and local law enforcement officers worked together to seize 34 firearms, more than 6.7 kilograms of heroin, more than 17 kilograms of cocaine, more than a kilogram of fentanyl, approximately 50 grams of crack cocaine, 200 pounds of marijuana, and more than $1.3 million in cash and jewelry allegedly purchased with narcotics trafficking proceeds. Much of the alleged firearms offenses, drug trafficking, and violence occurred in the Austin neighborhood on the West Side of Chicago.
The investigation was jointly conducted by the Organized Crime Drug Enforcement Task Force (OCDETF) and the Chicago High Intensity Drug Trafficking Task Force (HIDTA). The task forces are comprised of federal, state and local law enforcement agencies who work together to identify, disrupt and dismantle the most serious drug trafficking organizations.
“Operation Wicked Stones,” part of “Operation Full Circle,” focused on activities by alleged high-ranking members of both the Wicked Town faction of the Traveling Vice Lords and the Black P-Stone Nation street gangs. The indictments and a criminal complaint unsealed in U.S. District Court in Chicago allege federal firearms, narcotics, and money laundering offenses. The investigation also resulted in previously filed federal charges against three defendants for their alleged role in a murder-for-hire conspiracy. Many of the federal defendants were arrested Thursday, and detention hearings will be held next week in federal court in Chicago.
The 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 Bureau of Alcohol, Tobacco, Firearms & Explosives; Robert J. Bell, Special Agent in Charge of the Drug Enforcement Administration; Kathy A. Enstrom, Special Agent in Charge of the Internal Revenue Service Criminal Investigation; Nicholas Roti, Executive Director of Chicago HIDTA; and David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Cook County State’s Attorney’s Office and the Cook County Sheriff’s Office. The government is represented by Assistant U.S. Attorneys John D. Mitchell and Grayson S. Walker and Special Assistant U.S. Attorney Maureen B. McCurry.
Seven federal defendants are charged in United States v. Harris, et al (20 CR 308). The complaint describes a drug trafficking organization in which the defendants worked together to distribute wholesale quantities of heroin and cocaine on the West Side of Chicago, and two of the seven defendants are also charged with firearms offenses. The defendants are: JAMES HARRIS, 51, of Berkley, PATRICK TURNER, 52, of Bellwood, GREGORY HOPKINS, 50, of Chicago, LARNELL PILLOW, 51, of Chicago, RICKEY GRIFFIN, 51, of South Holland, ERIC BERGER, 53, of Chicago, and REGINALD RICHMOND, 29, of Sunrise Terrace. According to the Complaint, in April 2020, HARRIS, wearing his Chicago Transit Authority work uniform, met with TURNER to acquire 322 grams of heroin. Federal and state law enforcement officers seized the heroin from HARRIS outside of TURNER’s residence, the complaint alleges. The complaint also alleges that during April 2020, law enforcement officers seized a firearm from GRIFFIN, who could not lawfully possess a firearm because of prior felony convictions.
As part of the investigation, three federal defendants were previously charged in United States v. Morgan et al. (19 CR 641). In that case, DESHAWN MORGAN, 37, of Chicago, DARIUS MURPHY, 20, of Chicago, and DEMOND BROWN, 26, of Chicago were charged by indictment for their alleged role in a murder-for-hire conspiracy in 2018 that resulted in the murder of an individual. All three defendants are in federal custody awaiting trial.
DONALD LEE, 47, of Chicago, is charged in three indictments unsealed in the U.S. District Court in Chicago. LEE and two other individuals—JAMAR SPENCER, 34, of Chicago, and TERRENCE JENKINS, 52, of Chicago—are charged with firearms offenses in United States v. Lee, et al. (20 CR 311). LEE and CREAVON CURRY, 25, of Chicago, are charged with firearms offenses in United States v. Lee, et al. (20 CR 310). LEE is also charged with firearms and narcotics offenses in United States v. Lee (20 CR 312).
Two other federal defendants and SPENCER are charged by indictment in United States v. Jones, et al. (20 CR 309). That indictment charges LARRY JONES, 39, of Broadview, MARSHA FOUNTAIN, 48, of Plainfield, and SPENCER with conspiracy to distribute heroin.
ENRIQUE FUENTES-ORTIZ, 45, of Chicago, is charged with firearms and narcotics offenses in United States v. Fuentes-Ortiz (20 CR 288).
As part of the investigation, three other federal defendants are charged in separate indictments with firearms offenses: DESHON GEORGE, 26, of Chicago (20 CR 289); DANTE DOCKETT, 42, of Chicago (18 CR 710); and DERRIUS BURNS, 27, of Chicago (19 CR 758).
DANIEL CERPA, 41, of Elmhurst, and WILFREDO GOMEZ, 48, of Chicago are charged in a fentanyl and heroin trafficking conspiracy in United States v. Cerpa, et al. (20 CR 295).
MARSHAW RANSON, 40, of Chicago, is charged with fentanyl trafficking, as well as money laundering offenses in United States v. Ranson (20 CR 309).
JESSE OCHOA, 38, of Chicago, is charged with narcotics offenses in United States v. Ochoa (20 CR 297).
The firearms, narcotics, and money laundering charges in the indictments and complaint carry maximum penalties of between 10 years and life imprisonment. The murder-for-hire charges carry a mandatory sentence of life in prison, while a sentence of death is also possible. Only the Attorney General of the United States has the authority to seek the death penalty. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
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.
Holding drug dealers and illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods (PSN) – 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. 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.
Suburban Chicago Businessman Charged with COVID-Relief FraudRead the Press Release
CHICAGO – The owner and operator of several information technology companies in the Chicago area has been charged with filing a bank loan application that fraudulently sought more than $400,000 in a forgivable Paycheck Protection Program loan guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security Act.
Rahul Shah, 51, of Evanston, was charged in a criminal complaint filed in the Northern District of Illinois with bank fraud and making false statements to a financial institution. An initial appearance in U.S. District Court in Chicago has not yet been scheduled.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Inspector General J. Russell George of the Treasury Department Inspector General for Tax Administration (TIGTA); Inspector General Hannibal “Mike” Ware of the Small Business Administration Office of Inspector General (SBA-OIG), and Special Agent-in-Charge Emmerson Buie, Jr., of the FBI’s Chicago Field Office. The government is represented by Assistant U.S. Attorney Tyler C. Murray of the Northern District of Illinois, and Deputy Chief Brian R. Young of the Criminal Division’s Fraud Section.
“The Paycheck Protection Program was designed as a lifeline for small businesses struggling to survive the COVID-19 pandemic,” said U.S. Attorney Lausch. “My office is working closely with our law enforcement partners to hold accountable anyone who seeks to commit fraud in connection with this important program.”
The CARES Act was enacted on March 29, 2020, 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 authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an 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 complaint, Shah caused to be submitted to a federally insured bank an application for a $441,138 loan guaranteed by the SBA which significantly overstated the payroll expenses of a company that he controlled. In support of the loan application, Shah allegedly caused to be submitted to the lender several false and fraudulent IRS documents, including IRS Forms 1099-MISC representing that the company made payments to several individuals who later confirmed to federal investigators that they had not received such payments.
In addition, Shah allegedly signed and caused to be submitted to the lender what purported to be IRS Forms 941 representing his company’s quarterly payroll expenses for 2019. A comparison between the documents submitted to the lender and the company’s IRS filings revealed that Shah’s company reported significantly lower payroll expenses to the IRS, the complaint states.
A complaint 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.
Shah ComplaintIllinois Business Owner Charged with COVID-Relief FraudRead the Press Release
The owner and operator of several information technology companies based in the Chicago area has been charged in a complaint with allegedly filing a bank loan application fraudulently seeking more than $400,000 in a forgivable Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois, Inspector General J. Russell George of the Treasury Department Inspector General for Tax Administration (TIGTA), Inspector General Hannibal “Mike” Ware of the Small Business Administration Office of Inspector General (SBA OIG), and Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office made the announcement.
Rahul Shah, 51, of Evanston, Illinois, was charged in a federal criminal complaint filed in the Northern District of Illinois with bank fraud and making false statements to a financial institution.
Shah allegedly caused to be submitted to a federally-insured bank an application for a $441,138 loan that was guaranteed by the SBA which significantly overstated the payroll expenses of a company that he controlled. In support of the loan application, Shah allegedly caused to be submitted to the lender several different false and fraudulent IRS documents. The complaint alleges that Shah caused to be submitted to the lender false IRS Forms 1099-MISC representing that the company made payments to several individuals who confirmed to investigators that they had not received the payments. In addition, Shah signed and caused to be submitted to the lender what purported to be IRS Forms 941 representing his company’s quarterly payroll expenses for 2019. However, a comparison between the documents submitted to the lender and the company’s IRS filings revealed that Shah’s company reported significantly lower payroll expenses to the IRS.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 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 on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses a certain amount of the PPP loan proceeds on payroll expenses.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Deputy Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tyler C. Murray for the Northern District of Illinois are prosecuting the case. The Justice Department acknowledges and thanks the TIGTA, the SBA OIG, and the FBI for their efforts investigating this matter.
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.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
High-Ranking Member of Sinaloa Drug Cartel Arraigned After Extradition from MexicoRead the Press Release
CHICAGO — A former high-ranking member of the Sinaloa drug cartel in Mexico was arraigned today on federal drug charges following his extradition from Mexico. The defendant, FELIPE CABRERA SARABIA, was charged with one count of conspiracy to possess with the intent to distribute cocaine and heroin, one count of conspiracy to import into the United States cocaine and heroin, and distribution of heroin, in an indictment that was returned by a federal grand jury in January 2012.
Cabrera Sarabia, 50, was brought to the United States on June 12, 2020, after Mexican courts ordered him extradited on the three counts of the Indictment. He remains in federal custody after pleading not guilty this afternoon before U.S. Magistrate Judge Maria Valdez in Federal Court in Chicago.
According to the Indictment, from at least May 2005 until December 2008, Cabrera Sarabia conspired with other Sinaloa Cartel members to transport multi-ton quantities of illegal drugs into the United States. Cabrera Sarabia is one of more than 20 members of the Sinaloa or Beltran-Leyva drug cartels to be charged in federal court in Chicago. The investigation has resulted in seizures of approximately $30.8 million, approximately eleven tons of cocaine, 265 kilograms of methamphetamines, and 78 kilograms of heroin.
The developments were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration. Valuable assistance was provided by the Internal Revenue Service Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Erika L. Csicsila and Andrew C. Erskine.
The conspiracy to possess with the intent to distribute cocaine and heroin count carries a mandatory minimum penalty of 10 years’ imprisonment and a maximum penalty of life in prison. The conspiracy to import cocaine and heroin count carries a mandatory minimum penalty of 10 years’ imprisonment and a maximum penalty of life in prison, and the distribution of heroin count carries a mandatory minimum penalty of 10 years’ imprisonment and a maximum penalty of life in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Two Individuals Charged with Trying to Steal Cash from Chicago ATMRead the Press Release
CHICAGO — A man and a woman have been charged in federal court with attempting to steal cash from an automated-teller machine on the South Side of Chicago last week.
In the early morning hours of June 2, 2020, PARIS MICKLE and TAHKISHA HODGE, along with other unidentified individuals, forcibly removed the ATM from its enclosure in the drive-through area of a PNC Bank branch in the 8700 block of South Cottage Grove Avenue in Chicago’s Chatham neighborhood, according to a criminal complaint filed in U.S. District Court in Chicago. The pair then unsuccessfully attempted to break into the machine, with Mickle using a blowtorch and Hodge at one point driving a vehicle with a rear chain connected to the ATM, the complaint states. Chicago Police officers arrived at the scene and arrested Mickle and Hodge after brief chases, the complaint states.
The complaint charges Mickle, 29, of Madison, Wisc., and Hodge, 35, of Chicago, with one count of conspiracy to commit bank theft. An initial federal court appearance for Hodge was held on June 10, 2020, before U.S. Magistrate Judge M. David Weisman, while an initial federal court appearance for Mickle has not yet been scheduled.
The complaint 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; 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 Prashant Kolluri.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The conspiracy charge carries a maximum sentence of five years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. sentencing guidelines.
Department of Justice Awards Additional $8.4 Million to Municipalities in Northern Illinois to Address COVID-19 PandemicRead the Press Release
CHICAGO — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today announced that, over the past several weeks, the city of Chicago and other municipalities in northern Illinois received more than $8.4 million in Department of Justice grants to respond to challenges posed by the COVID-19 pandemic. The newly announced grants follow similar allocations from the Department in April of more than $20 million.
The grants were made pursuant to the Coronavirus Emergency Supplemental Funding program, which was authorized by recent legislation signed by President Trump. The law gives jurisdictions considerable latitude in the use of these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment, and distributing resources to hard-hit areas. Funds may also be used to help correctional facilities cover costs related to the virus, including, but not limited to, sanitation, contagion prevention, and measures designed to address the related medical needs of inmates, detainees, and correctional personnel.
“The Justice Department remains committed to helping offset the enormous costs incurred by local municipalities in the fight against COVID-19,” said U.S. Attorney Lausch. “These important federal funds will provide critical resources to the city of Chicago and other municipalities throughout northern Illinois working to keep people safe during the pandemic.”
The recipients and awards announced today are as follows:
- City of Chicago: $6,785,503
- City of Rockford: $572,968
- City of Aurora: $144,486
- City of Joliet: $119,390
- City of Waukegan: $95,895
- City of Harvey: $65,348
- Town of Cicero: $61,259
- Lake County: $58,008
- DeKalb County: $58,008
- Kane County: $58,008
- City of Elgin: $56,526
- City of DeKalb: $49,712
- Cook County: $48,349
- Village of Maywood: $48,268
- Village of Skokie: $39,849
- City of Zion: $35,200
- City of Berwyn: $34,878
- Village of Bolingbrook: $34,797
- Village of Riverdale: $33,918
- City of Blue Island: $33,354
For a list of all awards in northern Illinois and across the country thus far, visit the Coronavirus Emergency Supplemental Funding program webpage.
The Justice Department continues to move quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications. Local jurisdictions can determine if they are eligible and apply immediately by visiting the website of the Bureau of Justice Assistance, a component of the Office of Justice Programs (OJP).
“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for OJP. “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”
OJP provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims, and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Justice Department Seeks to Shut Down Fraudulent Chicagoland Tax Return BusinessRead the Press Release
The United States has filed a complaint seeking to permanently bar Markham, Illinois tax preparer Patricia Rivers, her daughter-in-law, Ki’esha M. Gary, and Rivers’s business, Alpha II Omega Tax, from preparing federal tax returns for others, the Justice Department announced today.
The complaint against Rivers, Gary, and Alpha II Omega Tax was filed in the U.S. District Court for the Northern District of Illinois, and alleges that those parties prepare false federal income tax returns on which they understate their customers’ tax liabilities by reporting false or exaggerated itemized deductions, sole proprietorship business expenses, and rental real estate losses.
According to the complaint, the Internal Revenue Service interviewed 38 customers of Alpha II Omega Tax, who allegedly stated that they were not self-employed or did not incur the business expenses reported on their income tax returns; had no rental real estate or never suffered the significant rental losses reflected on their tax returns; did not make the donations or expend funds for the employment expenses listed by the defendants; and did not give Rivers and Gary any reason to believe that such deductions were legitimate.
The complaint alleges that, by repeatedly understating their customers’ tax liabilities, the preparers at Alpha II Omega Tax have caused the United States to lose substantial tax revenue. The government contends in the complaint that Rivers and Gary prepared over 2,750 income tax returns between 2016 and 2019, and the returns of just the 38 customers the IRS interviewed reflect an actual tax loss to the IRS of $278,461. The complaint also asks the court to order the defendants to turn over the ill-gotten tax preparation fees they earned while engaging in this fraudulent conduct.
“The Tax Division will work with its IRS partners to shut down return preparers who claim improper or illegal deductions and credits for their customers” said Principal Deputy Assistant Attorney General Zuckerman. “Taxpayers should be vigilant so they do not file tax returns claiming false deductions.”
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Man Charged in Federal Court with Illegally Possessing Loaded Handgun in ChicagoRead the Press Release
CHICAGO — A man has been charged with a federal firearm offense for allegedly illegally possessing a loaded semiautomatic handgun in Chicago this past weekend.
ADAM WALTON was arrested early Monday morning near the 11700 block of South Marshfield Avenue after Chicago Police officers observed him exit a store through a broken window, according to a criminal complaint filed in U.S. District Court in Chicago. He was later taken into custody while in possession of a loaded semiautomatic handgun and a case of .22-caliber long-rifle ammunition, the complaint states. A city of Chicago curfew took effect at 9:00 p.m. Sunday, and Walton was arrested more than three hours later.
Walton, 40, of Chicago, is charged with one count of illegal possession of a firearm by a convicted felon. Walton was previously convicted of multiple criminal felonies, including two firearm-related offenses, and was not lawfully allowed to possess a firearm. An initial appearance in federal court in Chicago has not yet been scheduled.
The federal charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Cook County State’s Attorney’s Office in bringing this charge. The government is represented by Assistant U.S. Attorney Paul Mower.
Holding gun offenders accountable through federal prosecution is a centerpiece of 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. 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, including by prosecuting individuals who illegally possess firearms.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. 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.
Two Convicted Felons Charged in Federal Court with Illegally Possessing Loaded Handguns in ChicagoRead the Press Release
CHICAGO — Two convicted felons have been charged with federal firearm offenses for allegedly illegally possessing loaded handguns in Chicago this past weekend.
KEVIN D. TUNSTALL, 29, of Oak Forest, and JOHNNIE L. LEE, 32, of Chicago, are each charged with one count of illegal possession of a firearm by a convicted felon. Tunstall and Lee were previously convicted of criminal felonies and were not lawfully allowed to possess a firearm. Initial court appearances in U.S. District Court in Chicago have not yet been scheduled.
The federal 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; 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 these charges. The government is represented in the Tunstall case by Assistant U.S. Attorney Shy Jackson, and in the Lee case by Assistant U.S. Attorney Shawn McCarthy.
Holding gun offenders accountable through federal prosecution is a centerpiece of 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. 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, including by prosecuting individuals who illegally possess firearms.
Tunstall and Lee were arrested separately this past weekend by Chicago Police officers.
Tunstall was arrested early Saturday morning near the 600 block of South State Street after officers observed him in possession of a loaded semiautomatic handgun while seated in a vehicle, according to the charges.
Lee was arrested late Sunday night after a vehicle he was driving crashed into a Chicago Police car near the 3200 block of North Southport Avenue, the charges allege. He was taken into custody while in possession of a loaded handgun. A city of Chicago curfew took effect at 9:00 p.m. Sunday, and Lee was arrested nearly two hours later.
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. 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.
Chicago Man Facing Federal Firearm Charge After Allegedly Pointing Loaded Gun at Federal AgentRead the Press Release
CHICAGO — A Chicago man who allegedly pointed a loaded semiautomatic handgun at a federal agent early this morning has been charged with a federal firearm offense.
The agents approached JOSEPH HAMMOND near the 6800 block of South Sangamon Street in Chicago’s Englewood neighborhood while investigating a report of a man holding a gun and a toddler, according to a criminal complaint filed in U.S. District Court in Chicago. As the agents approached in a vehicle, Hammond pointed the gun at one of the agents’ faces and told them to “keep moving,” the complaint states. Hammond then picked up the toddler and ran from the area. The agents pursued Hammond and later arrested him nearby, the complaint states. Neither the toddler nor the agents were injured.
Hammond, 33, is charged with one count of illegal possession of a firearm by a convicted felon. Hammond was previously convicted of criminal felonies, including firearm offenses and attempted murder, and was not lawfully allowed to possess a firearm. A detention hearing in federal court in Chicago has been set for June 8, 2020.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Misty N. Wright.
Holding gun offenders accountable through federal prosecution is a centerpiece of 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. 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, including by prosecuting individuals who illegally possess firearms.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. 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.
Two Individuals Charged in Federal Court with Illegally Possessing Loaded Handguns in Downtown ChicagoRead the Press Release
CHICAGO — Two individuals have been charged with federal firearm offenses for allegedly illegally possessing loaded handguns in downtown Chicago this past weekend.
BRANDON PEGUES, 28, of Riverdale, and AMBER L. PELTZER, 28, of Lansing, are each charged with one count of illegal possession of a firearm by a convicted felon. Pegues and Peltzer were previously convicted of criminal felonies and were not lawfully allowed to possess a firearm. Initial court appearances in U.S. District Court in Chicago have not yet been scheduled.
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. Valuable assistance was provided by the Cook County State’s Attorney’s Office in bringing these charges. The government is represented in the Pegues case by Assistant U.S. Attorney Matthew J. McCrobie, and in the Peltzer case by Assistant U.S. Attorney Albert Berry.
“We are working with the Chicago Police Department and our federal and state law enforcement partners to arrest and prosecute anyone involved in violence and destruction in Chicago,” said U.S. Attorney Lausch. “We will continue our efforts to apprehend and charge illegal gun offenders and others engaging in violent crime.”
Holding gun offenders accountable through federal prosecution is a centerpiece of 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. 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, including by prosecuting individuals who illegally possess firearms.
Pegues and Peltzer were arrested separately early Sunday morning by Chicago Police Officers who were investigating reports of various malfeasances and unrest in the downtown area of the city. A city of Chicago curfew took effect at 9:00 p.m. Saturday, and the defendants were arrested nearly four hours later.
According to the charges, Pegues was arrested near the 800 block of South Federal Street after officers observed a loaded semiautomatic handgun fall from his waistband. Peltzer was arrested near the 1600 block of South Michigan Avenue after officers observed her peering out of a bar that had its glass front door shattered, the complaint states. She was later taken into custody while in possession of a loaded handgun, 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. 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.
Chicago Man Arrested on Federal Arson Charge for Allegedly Setting Fire to Chicago Police VehicleRead the Press Release
CHICAGO — A Chicago man was arrested today on a federal arson charge for allegedly setting fire to a Chicago Police Department vehicle this past weekend.
TIMOTHY O’DONNELL placed a lit object into the gas tank of the marked police vehicle while it was parked in the 200 block of North State Street in downtown Chicago on Saturday, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. The vehicle ignited in flames. At the time, Chicago Police officers were in the area investigating reports of various malfeasances and unrest. O’Donnell set the fire while wearing a “joker” mask that partially covered his face, the complaint states.
The complaint charges O’Donnell, 31, with one count of arson. Federal authorities arrested O’Donnell this afternoon and carried out a court-authorized search of his residence. An initial appearance in federal court in Chicago has not yet been scheduled.
The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; David Brown, Superintendent of the Chicago Police Department; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. The government is represented by Assistant U.S. Attorneys James P. Durkin and Rajnath Laud.
“Anyone involved in destructive behavior – such as setting fire to a police car – should know that federal law enforcement will use all tools available to us to hold them accountable,” said U.S. Attorney Lausch. “We will continue to work with the Chicago Police Department and our federal and state partners to apprehend and charge arsonists and others engaging in violent crime.”
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charge in the complaint is punishable by a minimum sentence of five years in federal prison and a maximum of 20 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Three Convicted Felons Charged in Federal Court with Illegally Possessing Handguns in ChicagoRead the Press Release
CHICAGO — A federal grand jury has returned indictments against three convicted felons for allegedly illegally possessing loaded handguns in Chicago.
MITCHELL AGNEW, 20, CARL ADAMS, 35, and ROLAND BLACK, 39, all of Chicago, are each charged with one count of illegal possession of a firearm by a convicted felon. All three defendants were previously convicted of criminal felonies and were not lawfully allowed to possess a firearm.
Three separate indictments were returned Wednesday in U.S. District Court in Chicago. All three defendants are in law enforcement custody. Arraignments have not yet been scheduled.
The indictments were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and David Brown, Superintendent of the Chicago Police Department. The government is represented in the Agnew and Adams cases by Assistant U.S. Attorney Cornelius S. Vandenberg, and in the Black case by Assistant U.S. Attorney Grayson S. Walker.
Holding gun offenders accountable through federal prosecution is a centerpiece of 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. 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, including by prosecuting individuals who illegally possess firearms.
According to the charges, Agnew illegally possessed a loaded semiautomatic handgun on Feb. 16, 2020, in the East Garfield Park neighborhood; Adams illegally possessed a loaded handgun on Feb. 1, 2020, in the West Garfield Park neighborhood; and Black illegally possessed a loaded semiautomatic handgun on Feb. 11, 2017, in the Douglas neighborhood.
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. 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.
Chicago Man Arrested for Allegedly Selling Fentanyl-Laced HeroinRead the Press Release
CHICAGO — A Chicago man has been arrested on a federal complaint charging him with selling fentanyl-laced heroin on the city’s Southwest Side.
CHARLES KINDRED, 33, sold approximately 2.4 grams of the fentanyl-laced heroin during a meeting last month in a retail store parking lot in Chicago’s Ashburn neighborhood, according to a criminal complaint and affidavit filed in federal court. Unbeknownst to Kindred, the buyer was cooperating with law enforcement, who conducted surveillance on the transaction, the complaint states.
The complaint charges Kindred with one count of distribution of a controlled substance. Kindred was arrested Thursday morning and made an initial appearance in federal court Thursday afternoon. A detention hearing is set for May 26, 2020, at 8:45 a.m., before U.S. District Judge Matthew F. Kennelly.
The arrest and complaint were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration. The Oak Lawn Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorney Shy Jackson.
The federal investigation remains ongoing.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The drug distribution charge is punishable by a maximum sentence of 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Top Officers of Subprime Auto Lender Indicted on Fraud Charges for Allegedly Misappropriating More Than $5 Million in Company FundsRead the Press Release
CHICAGO — Two top officers of a north suburban subprime auto lending company have been indicted on federal fraud charges for allegedly misappropriating at least $5.3 million in company funds.
JAMES COLLINS was the Chief Executive Officer of Evanston-based Honor Finance LLC, and ROBERT DIMEO was its Chief Operating Officer. From 2011 to 2018, Collins and DiMeo schemed with an accountant, MICHAEL WALSH, to divert money owed to Honor Finance to an outside entity the trio created and controlled, according to an indictment returned Wednesday in U.S. District Court in Chicago. The defendants used the outside entity, Skokie-based LHS Solutions Ltd., to purchase GPS devices and then resell them to Honor Finance at a significant markup, the indictment alleges. Honor Finance required that GPS devices be installed in certain vehicles purchased with loans it financed, so that the vehicles could be located and repossessed if the borrowers defaulted.
The indictment alleges that the defendants fraudulently misappropriated approximately $5.3 million from Honor Finance. The trio transferred some of the misappropriated funds to themselves and their family members, the indictment states. They also used some of the fraud proceeds to pay for a down payment on a lake house in Dowagiac, Michigan, according to the indictment.
The indictment charges Collins, 50, of Evanston, DiMeo, 49, of Park Ridge, and Walsh, 62, of Evanston, with ten counts each of mail fraud. Arraignments via videoconference are set for May 20, 2020, at 10:00 a.m., before U.S. District Judge Robert M. Dow, Jr.
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 government is represented by Assistant U.S. Attorney Matthew Getter.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of mail 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.
Chicago Man Charged in Federal Court with Trafficking Fentanyl-Laced Heroin and Illegally Possessing Assault RifleRead the Press Release
CHICAGO — A federal grand jury has indicted a Chicago man for allegedly trafficking fentanyl-laced heroin and illegally possessing a loaded assault rifle while on parole from a previous drug conviction.
MITCHELL DWAYNE SIMMONS, 48, is charged with one count of possession of a controlled substance with intent to distribute, one count of possession of firearms in furtherance of a drug trafficking crime, and one count of illegally possessing firearms as a previously convicted felon, according to an indictment unsealed Thursday in federal court in Chicago. The indictment alleges that Simmons possessed the assault rifle and a handgun, both of which were loaded, as well as heroin, fentanyl-laced heroin, and marijuana, on Dec. 28, 2019, in Chicago. At the time, Simmons was on court-supervised release after recently completing a prison sentence for a federal drug conviction in the Central District of Illinois.
Simmons was arrested Thursday on the new charges and was arraigned later that day in federal court in Chicago. He pleaded not guilty to all charges in the indictment. A detention hearing via videoconference is set for May 18, 2020, at 10:30 a.m., before U.S. District Judge Gary S. Feinerman.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Saurish Appleby-Bhattacharjee.
Holding gun offenders accountable through federal prosecution is a centerpiece of 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. 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, including by prosecuting individuals who illegally possess firearms.
Possession of a firearm in furtherance of a drug trafficking crime is punishable by a maximum sentence of life in federal prison and a mandatory minimum of five years, which must be served consecutively to the sentence for the underlying drug trafficking offense. Possession of a controlled substance with the intent to distribute is punishable by a mandatory minimum sentence of five years in federal prison and a maximum of 40 years. Illegal possession of a firearm by a convicted felon carries a maximum sentence of ten years in federal prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
U.S. Attorney’s Office Announces Commitment to Investigating Sexual Harassment in Housing Amid COVID-19 PandemicRead the Press Release
CHICAGO – John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today announced a commitment to investigating reports of housing-related sexual harassment resulting from the COVID-19 pandemic. The initiative is consistent with recent direction from Attorney General William P. Barr.
As the country adopts measures to slow the spread of COVID-19, many Americans have lost their jobs or had wages curtailed. These losses have forced some to seek abatements or suspensions of rent. According to a recent memo from the Attorney General, there have been reports of landlords demanding sexual favors and other acts of unwelcome sexual conduct to defer rent payments. Such behavior is illegal under the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability.
“Sexual harassment in housing is illegal and despicable,” said U.S. Attorney Lausch. “No one should have to tolerate this behavior under normal circumstances, and particularly not during a public health crisis. My office will aggressively investigate these cases and bring action when warranted.”
U.S. Attorney Lausch this month sent a letter to fair housing advocacy groups, domestic violence organizations, and state and local law enforcement agencies, asking them to contact the U.S. Attorney’s Office if they receive complaints of sexual harassment in housing. The letter renewed the U.S. Attorney’s commitment to deploying all available federal enforcement tools against anyone who engages in housing-related sexual harassment.
Sexual harassment by landlords, property managers, maintenance workers, and others with power over housing often impacts society’s most vulnerable populations. Attorney General Barr’s directive reaffirmed the commitment the Department of Justice made in 2017 when it launched the Sexual Harassment in Housing Initiative. The initiative works to identify barriers to reporting sexual harassment in housing, increase awareness of enforcement efforts, improve collaboration between federal, state, and local partners to increase reporting, and help survivors quickly and easily connect with valuable resources.
Anyone who believes they may have been a victim of housing-related sexual harassment is encouraged to contact the Department of Justice via phone: (844) 380-6178, email: [email protected], or mail: U.S. Attorney’s Office, Attention: Patrick Johnson, Civil Rights Coordinator, 219 S. Dearborn St., Suite 500, Chicago, Ill. 60604.
U.S. Attorney John Lausch Recognizes the Contributions of Law Enforcement During National Police WeekRead the Press Release
CHICAGO – In honor of National Police Week, U.S. Attorney John Lausch recognized the service of federal, state, and local law enforcement, especially those officers who have made the ultimate sacrifice.
“National Police Week presents a special opportunity to acknowledge the courageous work of law enforcement officers,” said U.S. Attorney Lausch. “All of us at the U.S. Attorney’s Office consider it a privilege to work with brave officers who serve our communities with honor and integrity. To them, I say thank you for your valor and your commitment to justice.”
“There is no more noble profession than serving as a police officer,” said Attorney General William P. Barr. “The men and women who protect our communities each day have not just devoted their lives to public service, they’ve taken an oath to give their lives in order to ensure our safety. And they do so not only in the face of hostility from those who reject our nation’s commitment to the rule of law, but also in the face of evolving adversity – such as an unprecedented global health pandemic. This week, I ask all Americans to join me in saying ‘thank you’ to our nation’s federal, state, local, and tribal law enforcement officers. Their devotion and sacrifice to our peace and security will not be taken for granted.”
While most National Police Week events this year have been suspended due to the COVID-19 pandemic, the National Law Enforcement Officers Memorial Fund will host a virtual Candlelight Vigil tonight at 7:00 p.m. central time. During the vigil, the names of fallen officers who are being added to the wall of the National Law Enforcement Memorial will be read aloud. The vigil can be viewed live on YouTube by clicking here.
Unfortunately, 89 law enforcement officers died nationwide in the line of duty in 2019, according to the FBI’s Law Enforcement Officer Killed and Assaulted Program. Five of those officers served in Illinois:
- Gerald Ellis, Illinois State Police
- Nicholas Hopkins, Illinois State Police
- Brooke Jones-Story, Illinois State Police
- Christopher Lambert, Illinois State Police
- Jacob Keltner, McHenry County Sheriff’s Office
This year, the COVID-19 pandemic has underscored law enforcement officers’ courage and unwavering service to the communities they swore to serve. According to the Fraternal Order of Police and media reports, 101 law enforcement officers have died as a result of duty-related complications from the virus.
“There is no higher calling than to be willing to die for the safety of others,” said U.S. Attorney Lausch. “We pay a special tribute to those officers who have lost their lives in the line of duty. We will never forget their courage and their sacrifice.”
Roommates Charged in Federal Court with Trafficking Cocaine and Illegally Possessing Handguns in Downtown Oak Park ApartmentRead the Press Release
CHICAGO — A federal grand jury has indicted two roommates for allegedly trafficking cocaine and illegally possessing handguns in their apartment in downtown Oak Park.
An indictment returned in U.S. District Court in Chicago charges ISAIAH INGRAM, 30, and KEVIN HAGER, 34, with drug conspiracy and possession of firearms in furtherance of drug trafficking crimes. The pair is also charged with illegally possessing firearms as previously convicted felons.
Law enforcement in February searched the defendants’ apartment in downtown Oak Park and discovered distribution quantities of cocaine and crack cocaine, as well as five semiautomatic handguns, all of which were loaded. The search also revealed a money-counting machine, electronic scales, and a cooking pot and utensils with white residue on them.
Ingram is detained in federal custody without bond. His arraignment is scheduled for May 12, 2020, at 9:30 a.m., before U.S. District Judge Robert M. Dow, Jr. Hager is currently at large, and a warrant for his arrest has been issued.
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 office of the FBI; and David Brown, Superintendent of the Chicago Police Department. The Oak Park Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorneys Elizabeth R. Pozolo and Tiffany Ardam.
Holding gun offenders accountable through federal prosecution is a centerpiece of 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. 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, including by prosecuting individuals who illegally possess firearms.
The counts for drug conspiracy and possessing a firearm during a crime of violence are each punishable by up to life imprisonment, while illegal possession of a firearm by a convicted felon carries a maximum sentence of ten years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
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.
Ten Defendants Indicted in Federal Investigation That Dismantled Mexico-To-Chicago Cocaine PipelineRead the Press Release
CHICAGO — Ten individuals are facing criminal charges as part of a federal investigation that disrupted a Mexico-to-Chicago cocaine pipeline.
During the investigation, law enforcement seized approximately 18 kilograms of cocaine and more than $300,000 in suspected illicit drug proceeds. The alleged drug trafficking occurred in the South Loop and Streeterville neighborhoods of Chicago, as well as suburban locations.
The indictments were returned Wednesday in U.S. District Court in Chicago. Two of the defendants remain at large, and warrants have been issued for their arrests. Arraignments for the other eight defendants have not yet been scheduled.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration. Substantial assistance was provided by the Milwaukee, Wisc., Field Division of the DEA, Calumet City Police Department, Chicago Police Department, Evergreen Park Police Department, Gurnee Police Department, Oak Park Police Department, Palos Heights Police Department, Peoria Police Department, and the U.S. Postal Inspection Service. Assistant U.S. Attorneys A.J. Dixon and Ashley A. Chung represent the government.
According to the indictments and criminal complaints previously filed in the case, ANDRES VILLEGAS, 30, of Berwyn, worked with suppliers in Mexico to transport cocaine into the United States. Villegas conspired with a network of traffickers to distribute the drugs in the Chicago area, the charges allege.
The charges describe several drug transactions last year in Chicago and the suburbs. One of the deals occurred in a high-rise parking garage in the Streeterville neighborhood on Chicago’s Near North Side, while another occurred in a parking garage in the South Loop neighborhood on the city’s Near South Side, according to the charges. Other transactions cited in the charges occurred in Plainfield and Bolingbrook.
Charged in four separate indictments with drug conspiracy are Villegas; GUSTAVO AVILA, 23, of Plainfield; AARON ADAMS, 41, of Peoria; ADRIAN CURTIS, 42, of Peoria; DAVID PALM, 50, of Chicago; ALVIN BROWN, 51, of Chicago; SANTIAGO MERAZ, 35, of Milwaukee, Wisc.; JORGE VALDEZ, 33, of Milwaukee, Wisc.; ISIDRO MOYA, 59, of Chicago; and EDUARDO CARRIZALES, 45, of Laredo, Texas.
Moya and Meraz are currently at large.
The public is reminded that indictments contain only charges and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Head of Chicago Non-Profit Organization Charged with Fraudulently Pocketing State Grants Intended for Economic Development ProjectsRead the Press Release
CHICAGO — The head of a Chicago not-for-profit organization fraudulently converted or misappropriated at least $200,000 in State of Illinois grants intended to develop suburban commercial properties and fund a job training program, according to a 15-count federal indictment.
YESSE YEHUDAH operated the not-for-profit organization Fulfilling Our Responsibilities Unto Mankind, also known as FORUM. From 2013 to 2016, Yehudah, on behalf of FORUM, applied for and received three grants totaling approximately $575,000 from the Illinois Department of Commerce and Economic Opportunity. Two of the grants were intended to develop commercial properties in south suburban Dolton, while the third was meant for FORUM to operate a weatherization jobs training program. The indictment alleges that Yehudah fraudulently converted substantial quantities of the grant funds by making materially false statements and submitting false documents to the DCEO. The indictment describes several of the alleged false statements, including when Yehudah represented to the DCEO that FORUM had spent almost all of a $100,000 grant on construction work, when, in fact, no actual construction work had begun.
The indictment was returned Wednesday in U.S. District Court in Chicago. Yehudah, 71, of Chicago, is charged with eight counts of bank fraud and seven counts of wire fraud. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and Teri Donaldson, Inspector General, U.S. Department of Energy, Office of the Inspector General. The DCEO provided valuable assistance during the investigation. The government is represented by Assistant U.S. Attorney Sean J.B. Franzblau.
In addition to the alleged fraud in obtaining the DCEO grants, the indictment accuses Yehudah of scheming to defraud a bank. After FORUM received similar development grants from the DCEO and other federal and local agencies, including the U.S. Department of Housing and Urban Development and the Community and Economic Development Association of Cook County, Yehudah issued checks from FORUM and another entity he controlled to various subcontractors, the indictment states. Yehudah then forged the subcontractors’ signatures – without their knowledge – to endorse the checks over to himself, the indictment alleges.
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 bank fraud is punishable by up to 30 years in prison, while each count of wire fraud 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.
Department of Justice Awards More Than $20 Million to State and Local Governmental Entities in Northern Illinois to Address COVID-19 PandemicRead the Press Release
CHICAGO — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today announced that state and local governmental entities in northern Illinois received more than $20 million in Department of Justice grants to respond to challenges posed by the COVID-19 pandemic.
The grants were made pursuant to the Coronavirus Emergency Supplemental Funding program, which was authorized by recent legislation signed by President Trump. Additional grants are expected to be made soon. The law gives jurisdictions considerable latitude in the use of these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment, and distributing resources to hard-hit areas. Funds may also be used to help correctional facilities cover costs related to the virus, including, but not limited to, sanitation, contagion prevention, and measures designed to address the related medical needs of inmates, detainees, and correctional personnel.
“These substantial federal funds will provide crucial resources to northern Illinois agencies working to keep people safe during the pandemic,” said U.S. Attorney Lausch. “The Justice Department is committed to helping offset the tremendous costs incurred by our state and local partners in the fight against COVID-19.”
The recipients and awards announced today are as follows:
- Illinois Criminal Justice Information Authority: $19,956,148
- Winnebago County: $58,008
- City of Calumet City: $54,203
- Will County: $32, 313
For a list of all awards across the country thus far, visit the Coronavirus Emergency Supplemental Funding program webpage.
The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications. Local jurisdictions can determine if they are eligible and apply immediately by visiting the website of the Bureau of Justice Assistance, a component of the Office of Justice Programs (OJP).
“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for OJP. “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”
OJP provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
U.S. Attorney’s Office Commemorates National Crime Victims’ Rights WeekRead the Press Release
CHICAGO — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today announced an observance of National Crime Victims’ Rights Week. This year’s observance celebrates victims’ rights, protections and services, and features the theme, “Seek Justice ~ Ensure Victims’ Rights ~ Inspire Hope.”
“While we all work to combat the challenges presented by the coronavirus pandemic, our office remains vigilant in seeking justice on behalf of victims of federal crimes,” said U.S. Attorney Lausch. “Our attorneys and staff members work tirelessly to advocate for the rights of victims, offering a tremendous amount of support and assistance during an often difficult legal process.”
“Every year, millions of Americans suffer the shock and trauma of criminal victimization, affecting their well-being and sense of security and dignity,” said Attorney General William P. Barr. “To these victims, we affirm our unwavering commitment to supporting them in their hour of need. We also commend the thousands of victim advocates and public safety professionals who labor tirelessly to secure victims’ rights and support survivors.”
During National Crime Victims’ Rights Week, victim advocacy organizations, community groups and state, local and tribal law enforcement agencies traditionally host rallies, candlelight vigils, and other events to raise awareness of victims’ rights and services. This year, many communities are organizing virtual gatherings and online public awareness campaigns. The annual National Crime Victims’ Service Awards Ceremony will also be postponed until a time when we can honor this year’s award recipients in person. To learn more about past recipients, visit www.ovc.gov/gallery.
Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims’ rights, needs, and concerns in a prominent spot on the American agenda. He also established the President’s Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims. President Trump and his administration have implemented historic levels of support for victim assistance and victim compensation.
Approximately 3.3 million Americans age 12 and older were victims of violent crime in 2018, according to the National Crime Victimization Survey. The Office for Victims of Crime (OVC), part of the Justice Department’s Office of Justice Programs (OJP), supports more than 7,000 local victim assistance and victim compensation programs in every state and U.S. territory. Funds for these programs come from the Crime Victims Fund, which is comprised of federal criminal fines, penalties and bond forfeitures.
“While we have made tremendous progress driving down crime and violence across the country, far too many Americans continue to suffer the pain and loss of criminal victimization,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General of OJP. “This week, we stand by these survivors and their families, and we pledge our ongoing support to the countless men and women who serve them with such extraordinary skill and compassion.”
“Crime victims deserve to know that they have the encouragement and support of the American people,” said OVC Director Jessica E. Hart. “I hope that citizens throughout the nation will take the opportunity this week to remember all victims of crime and their heroic stories of survival.”
For more information on how to create your own public campaigns to raise awareness about crime victims’ rights – online and through events during the year – please visit: https://ovc.ncjrs.gov/ncvrw2020/overview.html.
U.S. Attorney Announces Appointment of Federal Prosecutor to Lead Fight Against COVID-19 FraudRead the Press Release
CHICAGO — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today announced the appointment of a federal prosecutor to lead the fight against fraud related to the COVID-19 pandemic.
Attorney General William Barr has directed U.S. Attorneys nationwide to remain vigilant in detecting, investigating, and prosecuting criminal activity related to the crisis. As part of this strategy, U.S. Attorney Lausch appointed Assistant U.S. Attorney Tyler Murray, Chief of the office’s Financial Crimes Section, to serve as the COVID-19 Fraud Coordinator for the Northern District of Illinois. Working with federal, state, and local law enforcement partners, AUSA Murray will coordinate and lead investigations and prosecutions of those who attempt to take advantage of people during this time of crisis.
To report fraud related to COVID-19, call (866) 720-5721 or file a complaint online at https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form.
“My office will vigilantly guard the public from fraudsters who try to take advantage of a vulnerable time for our nation,” said U.S. Attorney Lausch. “A national crisis is by no means a safe harbor for criminal activity.”
U.S. Attorney Lausch warned the public to be extra cautious about unscrupulous schemes, particularly online. There have been reports locally and throughout the country of individuals and businesses selling fake cures or test kits for COVID-19 and engaging in other forms of fraud. Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention have been sent to unsuspecting citizens.
U.S. Attorney Lausch offered tips to help avoid scammers:
- Do not click on links from sources you don’t know. These could be attempts to download viruses onto your computer or cell phone.
- Ignore online offers for vaccinations. There currently are no vaccines, pills, potions or other prescription or over-the-counter products available to treat or cure COVID-19.
- Do your homework when it comes to donations, whether through charities or crowdfunding websites. Do not let anyone rush you into making a donation. If someone asks for a donation in cash, gift card, or wire transfer, do not do it.
Racketeering Charges Added in Federal Investigation of Chicago Street Gang; New Indictment Charges Multiple MurdersRead the Press Release
CHICAGO — A federal indictment unsealed this week charges ten alleged members of the LAFA street gang with participating in a criminal organization that murdered its rivals and violently protected its drug-dealing territories on the South Side of Chicago.
Law enforcement uncovered the criminal activity through an investigation conducted by the Organized Crime Drug Enforcement Task Force (OCDETF). Drug or firearm charges were originally filed in related cases against eleven individuals, including a woman and two of her sons. The superseding indictment unsealed this week adds new defendants and alleges numerous acts of violence, including four murders and 13 attempted murders. The new charges include racketeering conspiracy against ten of the defendants.
Arrests were carried out this week in Illinois, Indiana, and Minnesota. One defendant was arraigned this week in federal court in Chicago, while arraignment dates for the others have not yet been scheduled.
During the course of the multi-year probe, law enforcement seized 34 firearms, a machete and sheath, approximately a kilogram of cocaine, 78 pounds of marijuana, more than $190,000 in suspected illicit cash proceeds, designer clothing appraised at more than $300,000, Rolex watches, and numerous pieces of diamond jewelry, including two necklaces that had attached to them 14-carat gold pendants with the initials “LAFA” written in diamonds.
The superseding indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and Charlie Beck, interim Superintendent of the Chicago Police Department. Substantial assistance was provided by U.S. Attorney’s Offices in the Districts of Northern Indiana and Minnesota; Cook County State’s Attorney’s Office; U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; IRS Criminal Investigation Division in Chicago; Illinois State Police; Cook County Sheriff’s Office; police departments in Orland Park, Evergreen Park, Bolingbrook and Joliet; Minnesota-based Lake Superior Drug and Violent Crimes Task Force; Duluth, Minn., Police Department; St. Louis County, Minn., State’s Attorney’s Office; and FBI offices in Minneapolis, Minn., and Indianapolis, Ind. Assistant U.S. Attorneys Sheri Wong, Ankur Srivastava and Paul Mower represent the government.
“These RICO charges are the result of many federal, state, and local law enforcement partners working together to hold violent Chicago gang members accountable for various acts involving murder, attempted murder, witness intimidation, and drug trafficking, and for committing certain firearm offenses,” said U.S. Attorney Lausch. “Our common mission is clear: we want to keep the people of Chicago and our other communities safe.”
"These charges reflect an outstanding show of teamwork by our law enforcement and prosecutorial partners at all levels,” said Special Agent-in-Charge Buie. “We will continue to work tirelessly to remove illegal drugs, weapons, and other ill-gotten gains from our streets and ensure that our communities remain safe for all."
The superseding indictment alleges that LAFA members trafficked illicit drugs, including marijuana, cocaine, cocaine base, heroin, methamphetamine, and MDMA, in Chicago and Duluth, Minn. LAFA members allegedly stole vehicles for use in the affairs of the enterprise, and violently retaliated against rivals, former members, victims, and witnesses to prevent cooperation with law enforcement.
The charges accuse five alleged LAFA members of committing murder in furtherance of the gang’s activities:
- AKEEM ASAD, 28, of Chicago, allegedly murdered Janeen Hancock and Alixi Johnson on July 23, 2012, in Chicago.
- MARTEZ EASTER, 27, of Chicago, and COTTRELL MACKEY, 26, of Chicago, allegedly murdered Denero Appleton on June 1, 2014, in Chicago.
- MARDI LANE, 31, of Chicago, and REGINALD JONES, 26, of Chicago, allegedly murdered Deonte Hoard on March 2, 2015, in Chicago.
Asad, Lane, Easter, Jones and three other defendants – CAREY HINTON, 27, of Chicago, TONY PARKER, 25, of Chicago, and QUENTIN LUCIOUS, 29, of Chicago – are charged with committing attempted murders on behalf of the gang.
Several firearm offenses are also charged in the indictment, as are multiple counts of witness intimidation.
The investigation was conducted under the OCDETF program, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Racketeering conspiracy generally carries a maximum sentence of 20 years in prison, but a life sentence is possible for certain underlying racketeering activities, including certain murders and attempted murders charged in the indictment. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Rockford Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ROCKFORD — A Rockford man pleaded guilty Friday before U.S. District Judge Philip G. Reinhard to charges of transportation of child pornography via the internet and possession of child pornography.
DONOVAN HEIDENREICH, 25, admitted in a written plea agreement that on Sept. 25, 2017, he used a computer to send a video file over the internet to another user of the KIK messaging application. The image depicted an actual 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 further admitted he traded images of children engaged in sexually explicit conduct with other persons in return for his receipt of images of children engaged in sexually explicit conduct.
Sentencing for Heidenreich is set for June 8, 2020, at 9:00 a.m. For transporting child pornography, HEIDENREICH faces a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years. For possession of child pornography, the maximum is 20 years’ imprisonment. The sentence will be determined by the United States District Court, guided by the Sentencing Guidelines.
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. The government is represented by Assistant U.S. Attorney Michael D. Love.
U.S. Attorney’s Office to Conduct Election Day MonitoringRead the Press Release
CHICAGO — The U.S. Attorney’s Office will monitor the federal and local primary elections in Chicago and surrounding suburbs on March 17, 2020, John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, announced today.
As part of the monitoring effort, the office will operate a telephone hotline for citizens to report complaints related to the voting process. Assistant U.S. Attorneys and other office personnel will monitor the hotline and respond to complaints, as needed.
The hotline number, staffed on Election Day only, is (312) 469-6157.
“A vital part of our democracy is the integrity of our electoral system,” said U.S. Attorney Lausch. “A citizen who is entitled to vote should not be hindered or prevented from doing so, and we stand ready to ensure the sanctity of the process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations wherever they occur. The Department’s longstanding Election Day Program seeks to ensure public confidence in the voting process.
Federal voting-rights laws protect the rights of voters to mark their own ballot or be assisted by a person of their choice. Actions designed to interrupt or intimidate voters at polling places may constitute a violation. Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. Violations carry penalties ranging from one to ten years in prison, and fines of up to $250,000.
For information as to the location and hours of polling sites, Illinois residents are advised to contact the Illinois State Board of Elections by logging on to www.elections.il.gov or by calling (312) 814-6440.
North Suburban Man Pleads Guilty to Federal Child Pornography and Exploitation ChargesRead the Press Release
CHICAGO — A north suburban man has pleaded guilty to federal criminal charges for threatening to publish sexually explicit images of an underage girl unless she sent him more explicit photos and videos of herself.
DAVID J. COTTRELL, 30, of Niles, enticed the underage victim into sending him sexually explicit photos of herself via online social messaging applications. After collecting the photos, Cottrell informed the girl that he knew her real name, the name of her school, and her parents’ jobs, and he threatened to post the images online and send them to her family unless the girl sent him additional, more explicit photos and videos, which she did. Cottrell contacted the victim on a regular basis until her parents discovered the messages in 2017 and contacted law enforcement.
Cottrell pleaded guilty Wednesday to one count of sexual exploitation of a child, which is punishable by a mandatory minimum sentence of 15 years in federal prison and a maximum of 30 years, and one count of possession of child pornography, which is punishable by up to ten years. U.S. District Judge Robert W. Gettleman set sentencing for June 4, 2020, at 10:30 a.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The government is represented by Assistant U.S. Attorney Charles W. Mulaney.
Cottrell admitted in a plea agreement that he similarly induced or attempted to induce four other minor victims into sending him sexually explicit images of themselves. While communicating with the victims online, Cottrell used the screennames “sevendollarcab,” “brightcitylights,” “b88785,” and “YouShallSubmitToMe Sir.”
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children by calling 1-800-843-5678, or logging on to www.cybertipline.com.
Contractor Sentenced to More Than 3 Years in Prison for Paying Bribes to South Suburban MayorRead the Press Release
CHICAGO — A federal judge in Chicago has sentenced a contractor to more than three years in prison for paying bribes to the mayor of Markham to maintain and expand business with the south suburb.
MICHAEL JARIGESE, 67, of Frankfort, was convicted last year on nine counts of wire fraud and one count of bribery. The jury also convicted Mokena-based TOWER CONTRACTING LLC on the same charges. Jarigese was Tower’s president when he paid more than $80,000 in bribes to Markham Mayor DAVID WEBB JR. to maintain contracting work and obtain future business from the city. To conceal the bribes, Jarigese provided Webb with a false invoice and used coffee cups to hide cash payments. In exchange for the money, Webb took official action that benefited Jarigese and Tower, such as helping to award the company a multi-million dollar construction project.
U.S. District Judge Robert W. Gettleman on Thursday sentenced Jarigese to three years and five months in prison. Judge Gettleman fined Tower Contracting $1.2 million and sentenced it to four years of probation.
The sentences 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 U.S. Securities and Exchange Commission provided valuable assistance.
“By bribing Webb, Jarigese rigged the system, ensuring that Tower’s uncompetitive and unchallenged proposals were the only option presented to the Markham City Council,” Assistant U.S. Attorneys Steven J. Dollear, Heather K. McShain and Georgia N. Alexakis argued in the government’s sentencing memorandum. “Markham did not get the best value for each of the construction projects completed by Tower; instead, they were subject to a corrupt relationship between Jarigese, Tower, and Webb.”
Webb, who served as mayor of Markham from 2001 to 2017, pleaded guilty prior to trial and admitted participating in the scheme. Webb’s sentencing has not yet been scheduled.
A fourth defendant, THOMAS SUMMERS, owner of an Alsip-based sewer business, was tried separately and convicted last year of making false statements to the FBI and IRS. Summers is set to be sentenced by Judge Gettleman on April 28, 2020.
DEA-Led Operation Nets More Than 600 Arrests Targeting Cártel Jalisco Nueva GeneraciónRead the Press Release
WASHINGTON – The Justice Department and the Drug Enforcement Administration (DEA) today announced the results of Project Python, a DEA-led interagency operation encompassing all global investigations and related disruption activities targeting the Cártel de Jalisco Nueva Generación (CJNG).
This announcement marks the successful conclusion of six months of investigative and enforcement activity targeting CJNG, culminating in large scale arrests throughout the country within the past week. Project Python has resulted in more than 600 arrests, 350 indictments, as well as significant seizures of money and drugs. In the DEA's Chicago Division, which includes Illinois, Wisconsin and Indiana, approximately 50 arrests at the federal and state level have been made against CJNG members and associates pursuant to Project Python enforcement actions.
“With today’s announcement, the Attorney General has made clear the Department’s focus on dismantling transnational criminal organizations,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “We will continue to investigate and hold accountable members of drug cartels who seek to traffic narcotics in our communities.”
“DEA classifies the CJNC as one of the five most dangerous criminal organizations in the world,” said Robert J. Bell, DEA Chicago Division Special Agent-in-Charge. “CJNG has used extreme violence, extortion and bribes to steadily expand trafficking networks. CJNG is one of the two most prolific transnational criminal organizations responsible for trafficking huge quantities of illegal drugs to the Chicago Division. Project Python is a coherent effort to focus national efforts on the plague CJNG spreads. DEA will continue aggressively working with its federal, state and local partners to make Illinois, Indiana and Wisconsin inhospitable places for the CJNG.”
“Project Python marks the most comprehensive action to date in the Department of Justice’s campaign to disrupt, dismantle, and ultimately destroy CJNG,” said Assistant Attorney General Brian A. Benczkowski of the Department of Justice's Criminal Division. “When President Trump signed an Executive Order prioritizing the dismantlement of transnational criminal organizations, the Department of Justice answered the call and took direct aim at CJNG. We deemed CJNG one of the highest-priority transnational organized crime threats we face. And with Project Python, we are delivering results in the face of that threat for the American people.”
“Project Python is the single largest strike by U.S. authorities against CJNG, and this is just the beginning,” said Acting DEA Administrator Uttam Dhillon. “This strategic and coordinated project exemplifies DEA’s mission: to disrupt, dismantle, and destroy drug trafficking organizations around the world and bring their leaders to justice. Today, DEA has disrupted CJNG’s operations, and there is more to come as DEA continues its relentless attack on this remorseless criminal organization.”
The Justice Department and its law enforcement partners are committed to fulfilling the President’s Executive Order 13773 to identify, interdict, disrupt and dismantle transnational criminal organizations. The department designated CJNG as one of the top transnational criminal groups targeted as part of carrying out this executive order, and DEA instituted Project Python to support this ongoing effort.
CJNG is one of the fastest growing transnational criminal organizations in Mexico, and among the most prolific methamphetamine producers in the world. It is responsible for a significant proportion of drugs entering the United States, and elevated levels of violence in Mexico. With methamphetamine abuse and overdose deaths on the rise, Project Python aims to disrupt CJNG’s ability to distribute methamphetamine and other drugs throughout the United States by attacking the group at all levels.
Federal law enforcement has taken a number of steps to degrade CJNG’s ability to operate in the United States. Today, the Justice Department and DEA announced a superseding indictment on charges of alleged continuing criminal enterprise against Nemesio Ruben Oseguera Cervantes, also known as “El Mencho,” the undisputed leader of CJNG. Last month, El Mencho’s son, Ruben Oseguera Gonzalez, also known as “Menchito,” and second in command of CJNG, was extradited from Mexico to the United States on charges of alleged drug trafficking and firearm use in relation to drug trafficking activities. On Feb. 26, 2020, El Mencho’s daughter, Jessica Johanna Oseguera Gonzalez, was arrested in the United States on financial charges related to her alleged criminal violation of the Foreign Narcotics Kingpin Designation Act.
Additionally, DEA has worked with its interagency partners to apply further pressure to CJNG. The U.S. Department of Treasury has designated El Mencho as a “specially designated narcotics trafficker” pursuant to the Foreign Narcotics Kingpin Designation Act, and the U.S. Department of State has issued one of the largest narcotics rewards ever – $10 million – for information leading to the arrest of El Mencho.
The efforts highlighted in the more than 600 arrests nationwide are illustrative of the significant reach the CJNG has in manufacturing, importing and distributing a wide array of illegal narcotics within the United States and the negative impact on the fabric of our local communities. The proceeds from the local distribution of these narcotics are repatriated back to Mexico and further fuel transnational organized criminal organizations such as the CJNG. The Department of Justice and its law enforcement partners will continue to vigorously fight this scourge against the United States.
The Department of Justice’s multi-agency Special Operations Division, federal prosecutors from the Narcotic and Dangerous Drug Section of the Department’s Criminal Division, the Criminal Division’s Office of International Affairs and Office of Enforcement Operations provided invaluable support to this operation.
Consultant Indicted for Allegedly Corruptly Offering Money to Illinois State SenatorRead the Press Release
CHICAGO — A Chicago consultant has been indicted in federal court for allegedly corruptly offering money to an Illinois State Senator in connection with obtaining state approval for a suburban development project.
WILLIAM A. HELM, 56, of Chicago, is charged with one count of federal program bribery. The indictment was returned Thursday in U.S. District Court in Chicago. Arraignment is set for March 10, 2020, at 2:00 p.m., before U.S. Magistrate Judge Sheila M. Finnegan.
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 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, Helm and his consulting firm were retained by a construction company to assist in obtaining approval from the Illinois Department of Transportation for signalization and roadwork in connection with the company’s development project in East Dundee. The company sought approval from IDOT in 2017, the indictment states. From July 2018 to at least November 2018, Helm corruptly offered and agreed to pay money to influence and reward the senator in connection with IDOT approval of the project, the indictment states. At the time, the senator was Chairman of the Senate Transportation Committee and was in a position to assist with obtaining such approvals, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charge in the indictment is punishable by up to ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Department of Justice Launches National Nursing Home InitiativeRead the Press Release
WASHINGTON – John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today joined Attorney General William P. Barr in announcing the Department of Justice’s National Nursing Home Initiative, which will coordinate and enhance civil and criminal efforts to pursue nursing homes that provide grossly substandard care to their residents.
This initiative is focusing on some of the worst nursing homes around the country and the Department has already initiated investigations into approximately thirty individual nursing facilities in nine states as part of this effort.
“Millions of seniors count on nursing homes to provide them with quality care, and to treat them with dignity and respect when they are most vulnerable,” said Attorney General William P. Barr. “Yet, all too often, we have found nursing home owners or operators who put profits over patients, leading to instances of gross abuse and neglect. This national initiative will bring to justice those owners and operators who have profited at the expense of their residents, and help to ensure residents receive the care to which they are entitled.”
“Protecting older Americans in nursing facilities is a top priority for the Department of Justice,” said U.S. Attorney Lausch. “We are committed to defending our vulnerable seniors from those who abuse or neglect them.”
The department considers a number of factors in identifying the most problematic nursing homes. For example, the department looks for nursing homes that consistently fail to provide adequate nursing staff to care for their residents, fail to adhere to basic protocols of hygiene and infection control, fail to provide their residents with enough food to eat so that they become emaciated and weak, withhold pain medication, or use physical or chemical restraints to restrain or otherwise sedate their residents. These care failures cause residents to suffer in pain and to be exposed to the great indignities. Care failures cause residents to develop pressure sores down to the bone, to lie in their own waste for hours, to starve because they cannot reach the food on their trays and to remain unwashed for weeks at a time. Nursing homes that provide grossly substandard care also force vulnerable elderly residents who cannot leave the facilities to live in filthy and dangerous conditions where there are leaks in the roofs, mold is found growing and rodents found living in residents’ rooms. These are some of the actions and the inactions that the department intends to pursue.
The National Nursing Home Initiative reflects the department’s larger strategy and commitment to protecting our nation’s seniors, coordinated by the department’s Elder Justice Initiative in conjunction with U.S. Attorneys’ Offices across the country. The Elder Justice Initiative and the U.S. Attorneys’ Offices are essential to the department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Initiative and the U.S. Attorneys’ Offices also support the efforts of state and local prosecutors, law enforcement, and other elder justice professionals to combat elder abuse, neglect and financial exploitation, with the development of training, resources, and information. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.
Federal Jury Convicts Chinese National of Laundering Drug Proceeds on Behalf of Traffickers in MexicoRead the Press Release
CHICAGO — A federal jury in Chicago has convicted a Chinese national of laundering illegal narcotics proceeds on behalf of drug traffickers in Mexico.
On three occasions in 2018, XIANBING GAN schemed to have narcotics proceeds totaling approximately $534,206 picked up in Chicago and transferred to various bank accounts in China, in order for the money to ultimately be remitted to drug traffickers in Mexico. Gan is a Chinese national who facilitated the money transfers while residing in Guadalajara, Mexico. Unbeknownst to Gan, a purported money courier who picked up the drug proceeds in Chicago was actually an undercover law enforcement agent.
U.S. authorities arrested Gan in November 2018 at Los Angeles International Airport during a brief layover on a flight from Hong Kong to Mexico. He has remained in U.S. custody since then.
After a nearly two-week trial, a federal jury in Chicago on Thursday convicted Gan, 49, on three counts of money laundering and one count of operating an unlicensed money transmitting business. The jury acquitted Gan on one count of conspiracy to commit money laundering.
Each money laundering count is punishable by up to 20 years in federal prison, while the maximum sentence for the money transmission crime is five years. U.S. District Judge Thomas M. Durkin set sentencing for May 21, 2020.
The conviction 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 U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago; 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 Richard M. Rothblatt and Sean J.B. Franzblau.
Suburban Man Sentenced to More Than 12 Years in Prison for Amassing Child Pornography CollectionRead the Press Release
CHICAGO — A suburban man has been sentenced to more than a dozen years in federal prison for amassing a collection of nearly 200,000 images and videos of child pornography.
JONATHAN STEPHENS, 50, of Forest Park, used a computer to access file-sharing software and download child pornography. Over a period of at least four years, Stephens amassed a collection of approximately 194,000 sexually explicit images and videos that he stored on computers and external hard drives in his home and which he allowed other users to access and download. Many of the minors in the images and videos were under the age of 12 and forced to engage in sadistic and masochistic conduct.
Stephens pleaded guilty in 2018 to one count of transportation of child pornography. U.S. District Judge Ronald A. Guzman on Wednesday sentenced Stephens to 12 years and seven months in prison, to be followed by nine years of supervised release. Judge Guzman also ordered Stephens to pay $187,500 in restitution to the known child 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 office of the FBI. The case was investigated by the FBI’s Child Exploitation and Human Trafficking Task Force, specifically members from the Cook County Sheriff’s Office and Cook County State Attorney’s Investigations Bureau, as well as the Forest Park Police Department.
“The defendant’s victims are numerous,” Assistant U.S. Attorney Jeannice W. Appenteng argued in the government’s sentencing memorandum. “Each child depicted in the images and videos went through a horrible experience and continues to relive that suffering and endure new suffering because of the defendant’s actions.”
The government was represented in the case by Ms. Appenteng and Assistant U.S. Attorney Jared C. Jodrey.
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/home or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Indiana Man Found Guilty of Kidnapping a Child in Calumet CityRead the Press Release
CHICAGO — A federal jury has convicted an Indiana man of kidnapping a child from a Calumet City street as she walked home from school.
On Dec. 20, 2017, at approximately 3:30 p.m., BRYAN PROTHO grabbed the child as she walked on a sidewalk in the south suburb. Protho forcibly dragged the victim into a red Ford Explorer sport-utility vehicle and drove away. He then parked the vehicle in a nearby alley and assaulted the child. The victim was able to get out of the car and flag down a passing vehicle, and law enforcement was contacted. The kidnapping was captured on a residential surveillance system.
Protho was arrested on Dec. 27, 2017, and he has remained in federal custody since then. During the two-week trial in federal court in Chicago, the victim testified about her ordeal and identified Protho has her abductor.
The jury on Monday convicted Protho, 41, of East Chicago, Ind., on one count of kidnapping. The conviction is punishable by a minimum sentence of 20 years in federal prison and a maximum of life. U.S. District Judge Andrea R. Wood did not immediately set a sentencing date. A status hearing was scheduled for March 5, 2020.
The Calumet City Police Department led the investigation, with assistance from the FBI and the Lansing Police Department.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Christopher Fletcher, Chief of the Calumet City Police Department; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and Dennis Murrin, Jr., Chief of the Lansing Police Department. The officials thanked members of the community for providing valuable assistance in the investigation.
The government is represented by Assistant U.S. Attorney Christopher V. Parente and Kelly Guzman.
Chicago Man Arrested on Child Pornography Charge for Allegedly Enticing Underage Girl to Produce Sexually Explicit VideosRead the Press Release
CHICAGO — A Chicago man has been arrested on a federal child pornography charge for allegedly enticing an underage girl to produce sexually explicit videos of herself.
HUGH B. FOWLER enticed the 16-year-old girl to produce the videos and send them to him last year, according to a criminal complaint and affidavit filed in federal court in Chicago. Fowler communicated with the victim via an online messaging application, the complaint states.
The complaint charges Fowler, 62, with one count of production of child pornography. Fowler was arrested on Wednesday. U.S. Magistrate Judge Gabriel A. Fuentes scheduled a detention hearing for Feb. 25, 2020, at 3:00 p.m.
The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and Charlie Beck, interim Superintendent of the Chicago Police Department. The case was investigated by the FBI’s Child Exploitation and Human Trafficking Task Force, specifically members from the Chicago Police Department and Cook County Sheriff’s Office, as well as officers from CPD’s 19th District. The government is represented by Assistant U.S. Attorney Erin E. Kelly.
According to the complaint, Fowler sent the victim detailed instructions for how he wanted the sexually explicit videos to look. Fowler told the victim to display her private parts and to write Fowler’s first name or his initial on her body, the complaint states. “I would like music if possible,” Fowler wrote to the victim, according to the complaint. “It’s better if the video is longer than short,” Fowler allegedly told the victim.
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.
Production of child pornography is punishable by a minimum sentence of 15 years in federal 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.
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.
Ten Defendants Charged with Illegally Conducting Multi-Million Dollar Sports Gambling BusinessRead the Press Release
CHICAGO — Ten defendants have been charged in federal court with conspiring to illegally conduct a multi-million dollar sports gambling business in the Chicago area.
VINCENT DELGIUDICE, also known as “Uncle Mick,” directed an operation that accepted wagers from as many as 1,000 gamblers on the outcome of professional and amateur sporting events, according to a nine-count indictment returned Wednesday in U.S. District Court in Chicago. Delgiudice paid a service fee to a foreign sportsbook for use of its platform, and recruited gamblers to place wagers on a website, www.unclemicksports.com, according to the charges. Delgiudice sometimes communicated with representatives of the sportsbook via an anonymous, end-to-end encrypted messaging application to ensure their communications remained secret, the indictment states.
The indictment alleges that Delgiudice also recruited several individuals to work on behalf of his gambling operation. These agents enlisted new gamblers and worked with Delgiudice to collect or pay out cash depending on the outcome of wagers, the indictment states. Delgiudice paid the agents a commission based on a percentage of losses incurred by the gamblers they recruited, the charges allege.
A law enforcement search of Delgiudice’s residence in Orland Park seized more than $1.06 million in cash; silver bars and jewelry valued at $347,895; and gold coins valued at $92,623. The indictment seeks forfeiture of these items, as well as Delgiudice’s residence. It also seeks a personal money judgment against Delgiudice of $8 million.
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 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 Ankur Srivastava, Terry Kinney, and Abigail Peluso.
The FBI’s Integrity in Sport and Gaming Initiative (ISG) is designed to tackle illegal sports gambling and combat threats of influence from criminal enterprises.
The indictment charges Delgiudice, 54, with one count of conspiracy to conduct an illegal gambling business, one count of conducting an illegal gambling business, one count of conspiracy to commit money laundering, and six counts of money laundering.
The indictment charges eight alleged agents of Delgiudice’s operation with one count of participating in the gambling conspiracy and one count of conducting an illegal gambling business: MATTHEW KNIGHT, also known as “Sweaters” and “McDougal,” 46, of Mokena; JUSTIN HINES, 40, of Algonquin; KEITH D. BENSON, 49, of Lemont; TODD BLANKEN, 43, of Cary; NICHOLAS STELLA, 42, of Chicago; MATTHEW NAMOFF, 23, of Midlothian; CASEY URLACHER, 40, of Libertyville; and VASILIOS PRASSAS, 37, of Chicago. The tenth defendant, EUGENE DELGIUDICE, also known as “Gino,” 84, of Orland Park, allegedly assisted in the collection or paying out of cash to gamblers recruited by Vincent Delgiudice. Eugene Delgiudice is charged with one count of participating in the gambling conspiracy and one count of conducting an illegal gambling business.
Arraignments in federal court in Chicago have not yet been scheduled.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each money laundering count carries a maximum sentence of 20 years in federal prison, while the other counts in the indictment are each punishable by up to five years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Sales Agent for Chicago-Area Red-Light Camera Company Indicted in Bribery Conspiracy in Southwest SuburbRead the Press Release
CHICAGO — A sales agent for a Chicago-area red-light camera company has been indicted for allegedly conspiring to pay bribes to obtain approval to install additional cameras in suburban Oak Lawn.
PATRICK J. DOHERTY, 64, of Palos Heights, is charged with one count of conspiracy to use an interstate facility to facilitate bribery, and two counts of using an interstate facility to facilitate bribery. The indictment was returned Thursday in U.S. District Court in Chicago. An arraignment date 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 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, Tiffany A. Ardam and James P. Durkin.
According to the indictment, Doherty worked as a sales agent for the red-light camera company that since 2014 had a contract with Oak Lawn to provide cameras at certain intersections. Renewal of the contract and installation of cameras at additional intersections required approval from Oak Lawn’s Board of Trustees, the indictment states.
The charges allege that in 2017 Doherty conspired with an individual with a financial interest in the red-light camera company and another sales agent of the company to pay money to a relative of an elected Oak Lawn Trustee to influence the Trustee into using his official position to approve installation of cameras at additional intersections. The conspirators agreed to pay the relative a total of approximately $4,000 over an eight-week period, the indictment states. In order to conceal the purpose of the payments, the conspirators agreed that Doherty would make the payments from a separate company, the indictment states.
In a telephone conversation on May 25, 2017, Doherty told the other sales agent that Doherty would pay the Trustee’s relative “if it’s going to get us the job,” according to the indictment. Doherty allegedly added, “I’ll just pay it. Just make sure we get the, make sure we get the [expletive] thing, the contract.”
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count in the indictment is punishable by up to five years in prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Construction Company Owner Charged with Fraudulently Obtaining More Than $2.75 Million in Chicago Housing Authority ContractsRead the Press Release
CHICAGO — The owner of a construction company has been indicted for allegedly fraudulently obtaining more than $2.75 million in Chicago Housing Authority contracts designed to benefit minority-owned businesses.
LESTER COLEMAN owned Coleman Development Corp., a Chicago-based construction company and certified minority-owned business. From 2010 to 2018, Coleman falsely represented to the CHA that his company would perform construction work sufficient to satisfy the agency’s minority-owned business requirements, which mandated that a certain percentage of work on CHA properties be performed by minority or women-owned enterprises, according to an indictment returned Thursday in U.S. District Court in Chicago. In reality, Coleman subcontracted nearly all of the work to a company that was not certified as a minority-owned business, the indictment states. Coleman, through his company, fraudulently obtained more than $2.75 million in payments from the CHA contracts, including for construction or rehab work on properties in the Chicago neighborhoods of West Ridge, North Park, Albany Park, Archer Heights, and Oakland, the indictment states.
The charges also allege that Coleman falsely represented and certified to the CHA that the employees performing the work were paid the prevailing wages required by federal labor laws, when, in fact, they were not paid the prevailing wages.
The indictment charges Coleman, 62, of Chicago, with three counts of wire fraud. An arraignment date in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Elissa Rhee-Lee, Inspector General of the CHA; Brad Geary, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development’s Office of Inspector General in Chicago; and Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago. The government is represented by Assistant U.S. Attorney Stephen Heinze.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Complaints of fraud at the CHA may be reported to the CHA’s Office of Inspector General by clicking here.
Chicago Woman Found Guilty for Role in $7 Million Scheme to Defraud MedicareRead the Press Release
A federal jury found a Chicago woman guilty today for her role in a scheme to defraud Medicare of approximately $7 million between 2011 and 2017.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John R. Lausch Jr. of the Northern District of Illinois, Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office and Special Agent in Charge Lamont Pugh III of the United States Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Division Office made the announcement.
After a four-day trial, Angelita Newton, 42, was found guilty of one count of conspiracy to commit health care fraud and wire fraud. Sentencing has been scheduled for Oct. 13, 2020 before U.S. District Judge Virginia Kendall of the Northern District of Illinois, who presided over the trial.
According to evidence presented at trial, from approximately 2011 to 2017, Newton worked at Care Specialists, a home health company based in Chicago, Illinois, and owned by Ferdinand Echavia, 46, and Ma Luisa Echavia, 44, both of Chicago. Newton was the Echavias’ employee and personal assistant. In that role, Newton conspired with the Echavias and others to submit claims to Medicare for unnecessary home health services for unqualified patients, or for visits that did not happen as billed, the evidence showed. Newton created and completed visit notes and other documents purporting to reflect nursing services purportedly rendered by Ferdinand Echavia with the knowledge that he was not actually providing the services. Newton was aware that Ferdinand Echavia was making cash payments to patients, which Newton knew to be illegal, the evidence showed.
The evidence at trial showed that between 2011 and 2017, Medicare paid Care Specialists approximately $7 million for home health care services.
Three other defendants have been charged in connection with the fraud at Care Specialists. Ferdinand Echavia pleaded guilty to conspiracy to commit health care fraud and wire fraud on Jan. 28, 2020, and is awaiting sentencing. Ma Luisa Echavia pleaded guilty to conspiracy to commit health care fraud and wire fraud on Jan. 29, 2020, and is awaiting sentencing. A former nurse at Care Specialists, Reginald Onate, 31, of Aurora, Illinois, pleaded guilty to one count of conspiracy to commit health care fraud, and is awaiting sentencing.
This case was investigated by the FBI and HHS-OIG. Trial Attorneys Leslie S. Garthwaite and Patrick Mott of the Criminal Division’s Fraud Section are prosecuting the case. Former Trial Attorney Jessica Collins of the Fraud Section previously handled the prosecution.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Jury Convicts Doctor on Fraud Charges for Approving Medically Unnecessary TestsRead the Press Release
CHICAGO — A federal jury in Chicago has convicted a physician on fraud charges for approving medically unnecessary tests that were billed to Medicare.
While working for Chicago-based Grand Medical Clinic Inc., DR. OMAR GARCIA authorized percutaneous allergen tests for numerous Medicare beneficiaries, knowing that the tests were not medically necessary. In most instances, Dr. Garcia issued his approval after the tests had already been completed. Dr. Garcia submitted or caused to be submitted fraudulent claims to Medicare for payment of the unnecessary tests.
The jury in federal court in Chicago on Monday convicted Dr. Garcia, 52, of Ocala, Fla., and formerly of Wilmington, Ill., on all six counts of health care fraud. Each count is punishable by a maximum sentence of ten years in prison. U.S. District Judge Matthew F. Kennelly set sentencing for May 6, 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 office of the FBI; Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General; and Martin J. Dickman, Inspector General of the U.S. Railroad Retirement Board. The U.S. Office of Personnel Management and the U.S. Food and Drug Administration provided valuable assistance. The government is represented by Assistant U.S. Attorneys Kavitha J. Babu and Saurish Appleby-Bhattacharjee.
Evidence at the five-day trial revealed that Dr. Garcia’s fraud scheme began in 2011 and continued until 2015. Dr. Garcia and others submitted the fraudulent bills from Grand Medical and other medical entities in an attempt to reduce the volume of billing by any single company and minimize scrutiny from Medicare. After the entities received payments from Medicare, Dr. Garcia was paid via checks reflecting his percentage of the payments.