Northern District of Illinois
Press releases recorded for this federal judicial district.
Chicago Man Charged with Conducting Illegal Sports Gambling BusinessRead the Press Release
CHICAGO — A Chicago man has been charged in federal court with conducting an illegal sports gambling business and concealing the income in a bankruptcy proceeding.
MICHAEL FRONTIER, also known as “Ira Goldberg,” “Brian Seagal,” and “Matthew Sullivan,” provided bettors with gambling accounts at an online sportsbook based in Costa Rica, according to a 14-count indictment returned in U.S. District Court in Chicago. Frontier paid a service fee to the sportsbook for use of its platform, and then personally collected or paid cash to the bettors depending on the outcomes of their bets, the indictment states.
The charges allege that Frontier concealed his gambling income when he fraudulently obtained an order from the U.S. Bankruptcy Court discharging his debts, including a $1.5 million civil judgment against him for negligence in a motorcycle accident. Frontier used the fraudulently-obtained bankruptcy order as leverage to ultimately settle the negligence case for only $4,500, the indictment states.
The indictment was returned Thursday. It charges Frontier, 35, of Chicago, with five counts of money laundering, five counts of making a false statement in a bankruptcy case, two counts of bankruptcy fraud, one count of conducting an illegal gambling business, and one count of making a false declaration before the U.S. Bankruptcy Court. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Larry L. Lapp, acting Special Agent-in-Charge of the Chicago office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division. The United States Trustee Program provided valuable assistance. The government is represented by Assistant U.S. Attorneys Devlin N. Su and Erika Csicsila.
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 money laundering carries a maximum sentence of 20 years in prison, while the other counts in the indictment are each punishable by up to five years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Businessman Sentenced to a Year in Prison for Stealing Employer’s Trade Secrets While Planning New Job in ChinaRead the Press Release
CHICAGO — A federal judge has sentenced a 30-year employee of a McHenry County manufacturing firm to a year and a day in federal prison for stealing trade secret information while planning to work for a rival company in China.
ROBERT O’ROURKE, 59, of Lake Geneva, Wisc., was convicted earlier this year by a federal jury in Chicago on seven counts of theft of trade secrets. In addition to the prison term, U.S. District Judge Andrea R. Wood on Wednesday also fined O’Rourke $100,000.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Larry L. Lapp, acting Special Agent-in-Charge of the Chicago office of the FBI.
“Theft of trade secrets is a serious offense with wide-ranging consequences to the victim companies and the United States economy,” Assistant U.S. Attorney Shoba Pillay argued in the government's sentencing memorandum. “A would-be insider thief must understand the consequences of stealing their employer's trade secrets in order to benefit competitors, particularly when those competitors are based in China.”
Ms. Pillay and Assistant U.S. Attorney Christopher V. Parente represented the government.
According to evidence at trial, O’Rourke since 1984 worked for Dura-Bar, a Woodstock-based manufacturer of continuous cast-iron products. O’Rourke held the positions of plant metallurgist, quality assurance manager and salesperson, and helped the company develop business in China and other locations. In late 2013, O’Rourke began several months of negotiations to take a similar job with a rival firm in Jiangsu, China.
In September 2015, while still employed at Dura-Bar, O’Rourke accepted the job offer in China. He then downloaded electronic data and documents belonging to Dura-Bar without authorization two days before officially leaving the company. The following week, he packed up the proprietary information and went to O’Hare International Airport in Chicago to board a flight to China. Federal authorities intervened at the airport and seized the stolen trade secrets from O’Rourke before he could travel to China.
Two Rockford Men Sentenced for Stealing Guns from Firearms DealersRead the Press Release
ROCKFORD —A Rockford man was sentenced today before U.S. District Judge John Robert Blakey to a total of ten years in federal prison, to be followed by three years of supervised release, on firearms charges.
KYLAND WILLIS, 21, who was charged in two separate cases, pleaded guilty on June 28, 2019, to conspiracy to steal firearms from a licensed firearms dealer and two counts of stealing firearms from a licensed firearms dealer.
According to a written plea agreement, Willis broke into the store of a firearms licensee in Loves Park on Dec. 15, 2017, and stole approximately eleven firearms. On Dec. 27, 2017, Willis and another individual broke into the store of the same firearms licensee again and stole an additional 13 firearms. Willis and the other individual also attempted to break into the store of a second firearms licensee in Loves Park on Dec. 26, 2017.
On Jan. 3, 2018, Willis, co-defendant MARTAEVIEN Q. STEVENSON, 21, also of Rockford, and a third individual broke into the store of a firearms licensee in Belvidere, and stole 30 firearms. Stevenson admitted to attempting to break into the firearms licensee store a second time on Jan. 8, 2019. Willis, Stevenson and other individuals also attempted to break into the firearms licensee’s store a third time on Jan. 10, 2018.
Stevenson pleaded guilty on May 24, 2019, to conspiracy to steal firearms from a licensed firearms dealer and stealing firearms from a licensed firearms dealer. Stevenson was sentenced on Sept. 13, 2019, to four years and nine months in federal prison, to be followed by three years of supervised release.
The sentencings were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. The investigations were conducted by ATF, the Loves Park Police Department, the Belvidere Police Department, and the Rockford Police Department. The Winnebago County Sheriff’s Office assisted in the investigations. The government was represented by Assistant U.S. Attorney Talia Bucci.
Three Men Arrested in Connection with Suburban Bank RobberyRead the Press Release
CHICAGO — Three men have been arrested in connection with a bank robbery in Elmwood Park earlier this week. Law enforcement is also investigating whether the trio committed other recent bank robberies in Chicago and nearby suburbs.
ANDRES ADAME, 34, of Melrose Park, AARON FLORES, 21, of Chicago, and MANUEL MARTINEZ, 23, of Chicago, are charged with one count of bank robbery in connection with the Wednesday heist at U.S. Bank, 7312 W. Grand Ave. in Elmwood Park.
According to a criminal complaint and affidavit filed in U.S. District Court in Chicago, Adame and Martinez were wearing sunglasses and surgical masks when they entered the bank shortly after 2:30 p.m., approached the teller counter and demanded cash. After the tellers complied with the demands, Adame and Martinez left the bank and drove off in a Honda CR-V sport-utility vehicle driven by Flores, the complaint states. Law enforcement pursued the defendants into Chicago, where the defendants’ vehicle collided with another car and came to a stop in a yard near West Altgeld Street and North Neva Avenue, the complaint states. Martinez was arrested at the scene, while Adame and Flores were taken into custody after a foot chase, the complaint states.
Flores and Martinez are scheduled to appear for detention hearings on Oct. 8, 2019, before U.S. Magistrate Judge Jeffrey I. Cummings. Adame’s initial court appearance has not yet been scheduled.
The investigation was conducted by the FBI and the Chicago Police Department, in coordination with the Elmwood Park Police Department.
The complaint and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Larry L. Lapp, acting Special Agent-in-Charge of the Chicago office of the FBI; and Eddie Johnson, Superintendent of CPD. The government is represented by Assistant U.S. Attorney Ashley A. Chung.
The robbery charge is punishable by up to 20 years in prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines. 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.
Rockford Man Sentenced to More Than 4 Years in Prison for Conspiracy to Distribute HeroinRead the Press Release
ROCKFORD —A Rockford man was sentenced today by U.S. District Judge John Robert Blakey on a federal drug conspiracy charge.
TYSHON T. WATSON (also known as "TY"), 24, was sentenced to four years and nine months in federal prison, to be followed by three years of supervised release. Watson pleaded guilty on June 28, 2019, to conspiring to distribute one kilogram or more of heroin.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Larry L. Lapp, acting Special Agent-in-Charge of the Chicago office of the FBI; Dan O’Shea, Chief of the Rockford Police Department; and Gary Caruana, Winnebago County Sheriff. The federal investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, which includes the above agencies as well as the Loves Park and Freeport Police Departments. The U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives also assisted in the investigation. The government is represented by Assistant U.S. Attorney Talia Bucci.
In a written plea agreement, Watson admitted that he worked for a drug-trafficking conspiracy distributing heroin to street-level customers in the Rockford area on a daily basis between May 2017 and November 2, 2017. Watson began selling approximately five grams of heroin per week for the conspiracy, and his heroin sales later increased to approximately ten grams of heroin per day. As part of the conspiracy, Watson and his co-conspirator shared a phone that was used to arrange heroin sales, and they warned each other about potential police surveillance in areas where they were conducting drug trafficking.
On the day of Watson’s arrest in November 2017, Watson possessed 63 baggies of heroin that he intended to distribute to the conspiracy’s street-level customers. Watson at times also distributed heroin to the conspiracy’s larger-quantity customers who were heroin dealers themselves. Watson admitted that the conspiracy distributed or possessed with intent to distribute over one kilogram of heroin.
Rockford Man Sentenced to 4 Years in Prison for Robbing Two Rockford BanksRead the Press Release
ROCKFORD — A Rockford man was sentenced today to four years in federal prison on one count of armed bank robbery and one count of bank robbery.
DEMONTRION PHILLIPS, 25, pleaded guilty earlier this year to the armed robbery of Alpine Bank, 2642 Charles St. in Rockford, on July 17, 2017, and the robbery of Northwest Bank, 3106 N. Rockton Ave. in Rockford, on June 13, 2017.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Larry L. Lapp, acting Special Agent-in-Charge of the Chicago office of FBI; and Dan O’Shea, Chief of the Rockford Police Department. The investigation was conducted by the FBI Safe Streets Task Force, which includes representatives from the FBI; U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; Loves Park Police Department; Winnebago County Sheriff’s Department; and Rockford Police Department. The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.
According to a written plea agreement, Phillips and another individual robbed the Alpine Bank at approximately 5:48 p.m. During the robbery, Phillips brandished a BB gun, placed a note and a white plastic garbage bag on the counter, and demanded money. While the teller was filling up the bag with money, Phillips took back the note, jumped over the counter and started placing money in the bag. Phillips then went to another teller, began putting money in his bag, then jumped back over the counter and fled the bank. Phillips dropped the BB gun and some of the money as he ran to a waiting vehicle in a nearby parking lot.
Phillips also admitted that he robbed the Northwest Bank. At approximately 4:15 p.m., Phillips provided a teller with a note that indicated he had a gun and wanted money, and he threatened harm. The teller took money out of the teller drawer and placed it on the counter. Phillips then put the money in a brown plastic grocery bag, put the note back in his pocket and left the bank with the money.
In both robberies, Phillips wore a disguise including a fake beard.
In addition to the prison term, U.S. District Judge John J. Tharp, Jr., ordered Phillips to pay full restitution.
Indiana Man and His Niece Indicted on Federal Kidnapping and Domestic Violence ChargesRead the Press Release
CHICAGO — An Indiana man and his niece have been indicted on federal kidnapping and domestic violence charges for allegedly kidnapping and assaulting the man’s former girlfriend.
ROBERT SPEED and his niece, SHIRLEY SPEED, held the victim against her will and repeatedly assaulted her with various dangerous weapons from July 26, 2019, to July 31, 2019, according to an indictment returned Wednesday in federal court in Chicago. According to a criminal complaint previously filed in the case, the assaults occurred at residences in Chicago and Gary, Ind., as well as a hotel in the Chicago suburb of South Holland, during which the victim was repeatedly punched, hit with a crutch, kicked in the head and body, and choked with items such as an electrical cord. The victim, who had a previous romantic relationship with Robert Speed, was eventually released and treated in a hospital for serious injuries, according to the charges.
The indictment charges Robert Speed, 36, of Gary, Ind., and Shirley Speed, 24, of Chicago, with one count of kidnapping and one count of interstate domestic violence. Arraignments are scheduled for Oct. 10, 2019, at 11:00 a.m., before U.S. Magistrate Judge Susan E. Cox.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Larry L. Lapp, acting Special Agent-in-Charge of the Chicago office of the FBI. The Chicago Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorneys Matthew L. Kutcher and Michelle Kramer.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The kidnapping charge is punishable by a maximum sentence of life in prison, while the domestic violence charge 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.
10 Defendants Charged in Federal Investigation That Dismantled Texas-to-Chicago Drug PipelineRead the Press Release
CHICAGO — Federal law enforcement seized more than 14 kilograms of cocaine and 15 firearms as part of an investigation that dismantled a Texas-to-Chicago narcotics pipeline and resulted in charges against ten defendants.
During the investigation, dubbed “Operation Grapevine,” authorities shut down a drug stash house in a lakefront condominium in the Kenwood neighborhood of Chicago. In addition to the cocaine and guns, law enforcement seized approximately $215,000 in cash, and gold and diamond jewelry with an estimated value of more than $30,000.
Arrests of the defendants were recently carried out in Illinois and Texas.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; Larry L. Lapp, acting Special Agent-in-Charge of the Chicago office of the FBI; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and Eddie Johnson, Superintendent of the Chicago Police Department. Substantial assistance was provided by the IRS Criminal Investigation Division, U.S. Marshals Service, Cook County State’s Attorney’s Office, and Illinois State Police. The government is represented by Assistant U.S. Attorneys Kelly Guzman, Katherine Neff Welsh and Brian Kerwin.
The probe was led by the Chicago High Intensity Drug Trafficking Area program (HIDTA), with support from the Organized Crime Drug Enforcement Task Force (OCDETF). The programs partner with federal, state and local law enforcement agencies to identify, disrupt and dismantle the most serious drug trafficking organizations.
According to a criminal complaint filed in federal court in Chicago, DARRIN PULPHUS, 50, of Tinley Park, is the leader of a drug trafficking organization that obtained and distributed at least 23 kilograms of cocaine in the Chicago area in a three-month period earlier this year. Pulphus obtained the drugs at least twice a month from a Texas-based supplier, CURTIS POPE, 40, of Houston, Texas, the complaint states. Pope allegedly transported the cocaine from Texas in a semi-trailer truck. Another Texas resident, SHAWN TURNER, 37, of Houston, Texas, helped facilitate the shipments, often flying from Houston to Chicago to assist Pulphus, the complaint states.
Once in the Chicago area, Pope delivered the drugs to Pulphus or other members of his crew at a truck yard in south suburban Riverdale, according to the complaint. Pulphus then allegedly worked with various distributors to sell the drugs in the Chicago area. The complaint charges four alleged distributors: DAVID BOWDEN, 51, DESHAWN WALLS, 34, DARRELL WILLIAMS, 45, and LAWRENCE JOHNSON, 38, all of Chicago. Law enforcement seized a handgun and more than 900 grams of cocaine from Johnson after he obtained narcotics from Pulphus in April 2019, the complaint states.
The complaint also charges two alleged wholesale customers of Pulphus’s organization: ROME PERKINS, 60, and EDWARD HUMPHREY, 53, both of Chicago. The tenth defendant, RICHARD HOWARD, 50, of Chicago, allegedly conspired with Pulphus in the distribution of cocaine.
All of the defendants have made initial appearances in federal court. Johnson and Walls remain detained in federal custody, while Pulphus, Pope, Bowden, Williams, Howard, Humphrey, Turner and Perkins were ordered released on bond.
The public is reminded that a complaint contains only accusations and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Chicago Man Sentenced to 22 Years in Prison for Recruiting Minors to Engage in Sex ActsRead the Press Release
CHICAGO — A Chicago man has been sentenced to 22 years in federal prison for recruiting minors on Facebook to participate in sex acts with him and others.
BRYAN OSBORNE, 30, posed as a woman on Facebook to send thousands of messages to intended victims, most of them minors. Osborne enticed several children to agree to appear in sexually explicit films in exchange for a purported payment of thousands of dollars. He told the minors that they would first need to engage in sex acts with a male producer named “Trey,” purportedly so that “Trey” could make sure the minors were suitable for filming. Several of the minors agreed to the arrangement and engaged in sex acts with “Trey,” who turned out to be Osborne.
Osborne admitted to engaging in sex acts or attempting to engage in sex acts with 14 minor victims. Osborne often engaged in the sex acts with the minors inside and outside of a building in the Austin neighborhood on Chicago’s West Side. He later fabricated various reasons for why the minors could not be paid.
Osborne pleaded guilty in 2017 to sex trafficking of a minor by force, fraud or coercion. U.S. District Judge Sara L. Ellis on Monday sentenced Osborne to 22 years in prison, to be followed by 12 years of supervised release after imprisonment, and ordered him to pay restitution of $142,481 to the victims.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Larry L. Lapp, acting Special Agent-in-Charge of the Chicago office of the FBI; Kathy A. Enstrom, Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division; and Eddie Johnson, Superintendent of the Chicago Police Superintendent. Members of FBI Chicago’s Child Exploitation and Human Trafficking Task Force assisted in the investigation. The government is represented by Assistant U.S. Attorney Michelle Petersen.
According to evidence in the case, Osborne used various online personas to target children. Osborne told some of the minors that they could be paid larger sums if they referred even younger children to him for participation in the purported films, including victims under the age of 12.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678, or log on to http://www.missingkids.com. The service is available 24 hours a day, seven days a week.
Kane County Man Sentenced to 17 Years in Federal Prison for Producing and Sharing Child PornographyRead the Press Release
CHICAGO — A Kane County man has been sentenced to 17 years in federal prison for producing and sharing images of child pornography.
MATTHEW BROWN, 31, of Montgomery, took photographs of a prepubescent minor and shared them with users on the Kik online messaging application. Brown also possessed more than 240 other photographs and videos of child pornography.
Brown pleaded guilty last year to federal charges of production and transportation of child pornography. In addition to the 17-year prison term, U.S. District Judge Sara L. Ellis on Thursday ordered Brown to pay $80,292 in restitution to the known victims depicted in the pornographic images and videos.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Larry L. Lapp, acting Special Agent-in-Charge of the Chicago office of the FBI. The Cook County Sheriff’s Office provided valuable assistance.
“Defendant preyed upon the most innocent and vulnerable of victims – children,” Assistant U.S. Attorney John D. Mitchell argued in the government’s sentencing memorandum. “These images are shocking and display the horrific exploitation of young children.”
According to evidence in the case, Brown accessed the Kik messaging application under the screennames “MaddMatter” and “ratsoff2u.” He frequented Kik chatrooms that were set up for the purpose of exchanging child pornography. Unbeknownst to Brown, one of the Kik users with whom he began communicating in 2015 was an undercover law enforcement officer. Brown sent the undercover officer several images and videos of child pornography, including a sexually explicit photograph of a prepubescent minor that Brown had personally taken.
The images and videos were submitted to the National Center for Missing and Exploited Children, which determined that Brown possessed two series of child pornography. Authorities have been able to identify some of the children who were exploited in the images and videos shared by Brown and others. Some of the victims submitted statements to the Court in advance of Brown’s sentencing, detailing the harm caused by the production, distribution and possession of their images by individuals like Brown.
If you believe you are a victim of sexual exploitation, you are encouraged to call NCMEC at 1-800-843-5678, or log on to http://www.missingkids.com. The service is available 24 hours a day, seven days a week.
Rockford Man Sentenced to More Than 12 Years in Prison for Distributing Heroin in RockfordRead the Press Release
ROCKFORD — A Rockford man was sentenced today by U.S. District Judge Philip G. Reinhard on a federal drug trafficking charge.
MAURICE D. NEAL (also known as “Moe”), 37, was sentenced to 12 years and seven months in federal prison, to be followed by three years of supervised release. Neal pleaded guilty on June 25, 2019, to distributing heroin.
In a written plea agreement, Neal admitted that between October 2015 and September 2016, he operated a heroin trafficking business in the Rockford area, and maintained two cellphone lines as hotlines for customers to order and purchase heroin. Neal typically sold user-quantity amounts of heroin, such as a gram or a half gram, but occasionally did larger transactions. Neal admitted he engaged in a large number of transactions each day, selling at least ten to 15 grams of heroin a day, resulting in sales of at least 4,500 grams of heroin during the time period that he operated his heroin trafficking business.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Brian M. McKnight, Special Agent-in-Charge of the Chicago office of the U.S. Drug Enforcement Administration; and Brendan F. Kelly, Acting Director of the Illinois State Police. The case was investigated by the Rockford Resident Agency of the DEA's Chicago Field Office, and the Stateline Area Narcotics Team (“SLANT”), a task force led by the Illinois State Police. The U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, the Federal Bureau of Investigation, the Winnebago County Sheriff’s Department, and the Rockford Police Department assisted in the investigation. The government was represented by Assistant U.S. Attorney Margaret J. Schneider.
A co-defendant, QUINCY L. ATMORE (also known as “Q”), 47, of Rockford, pleaded guilty on Jan. 17, 2018, to distributing heroin. Atmore was sentenced on May 9, 2018, to 17 years in federal prison.
Park Ridge Man Sentenced to 14 Years in Prison for Conspiring to Commit ExtortionRead the Press Release
ROCKFORD — A Park Ridge man was sentenced today by U.S. District Judge Philip G. Reinhard to 14 years in federal prison, to be followed by three years of supervised release, for conspiring to commit extortion.
ROBERT PANOZZO, 59, pleaded guilty to the charge on June 19, 2019. According to a written plea agreement, from Jan. 1, 2005, through Dec. 20, 2009, Panozzo conspired with JOSEPH D. ABBOTT, 40, formerly of Park City, and others, to extort money from an individual by actual and threatened force, violence, and fear.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. The case was investigated by the Chicago office of the FBI. The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
In 2005, Panozzo loaned money to the individual. In 2006, the individual paid Panozzo in cash, which the individual believed was the last in a series of payments that satisfied his loans from Panozzo. However, Panozzo told the individual that $100,000 was still owed as interest from the previous loans. Panozzo admitted in the plea agreement that he recruited Abbott and others to cause harm to the individual and his property in order to coerce the individual to repay the loans from Panozzo. On Oct. 5, 2006, Panozzo, Abbott and others confronted the individual at his place of business in McHenry County and demanded payment of the outstanding loans. When the individual said he could not do so, Panozzo, Abbott and others struck the individual, causing injuries to his head and arms that required medical treatment.
Panozzo was incarcerated in the Illinois Department of Corrections from Nov. 3, 2006, to Sept. 25, 2008. Panozzo admitted that after his release from IDOC and throughout 2009, he repeatedly called and left voicemail messages for the victim, demanding that he either pay off his loans or meet with Panozzo to discuss repayment. On Feb. 8 and 11, 2009, Abbott left a note at the victim’s residence in McHenry County, demanding repayment of the $100,000. Later that month, Abbott used a flammable liquid to set fire to a Dodge Caravan that was parked in the driveway of the victim’s residence. Panozzo admitted that he had paid Abbott to set fire to the victim’s van. On March 3, 2009, Panozzo called the victim’s residence and left a voicemail message that announced Panozzo intended to arrive at the victim’s residence within one hour. In April 2009, Panozzo and the victim engaged in a series of conversations in which Panozzo demanded repayment. On April 8, 2009, Abbott used an incendiary device to set fire to the contents of several trash cans and the garage located at the victim’s residence. Panozzo also admitted that he had paid Abbott to “blow up” the victim’s residence.
Abbott was sentenced on July 26, 2019, to six and a half years in federal prison, to be followed by three years of supervised release, for conspiring to commit extortion.
Midwest Health Care Fraud Law Enforcement Action Results in Charges Against 53 Individuals Alleging $250 Million in LossRead the Press Release
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced today a health care fraud law enforcement action in Detroit, Chicago and Minnesota. Charges were filed against 20 individuals in the Eastern District of Michigan for their alleged involvement in Medicare fraud schemes resulting in $144.8 million in illegitimate billings. In the Northern District of Illinois, charges were filed against 12 individuals for their alleged involvement in Medicare fraud schemes resulting in over $103 million in illegitimate billings. Of those charged in the two federal districts, seven were doctors or licensed medical professionals. In addition, in the state of Minnesota, 21 defendants, including two licensed medical professionals, have been charged with defrauding Medicaid for almost $3 million. Minnesota’s Medicaid Fraud Control Unit (MFCU) investigated these cases.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and U.S. Health and Human Services-Office of Inspector General (HHS-OIG).
The charges announced today aggressively target schemes billing Medicare, Medicaid and private insurance companies for medically unnecessary procedures, medical procedures that were never provided and prescription medications that often were never purchased and/or distributed to beneficiaries.
“Health care fraud robs taxpaying Americans and corrupts the relationship between doctors and patients,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s actions in the Midwest are further proof of the Department’s steadfast commitment to investigating and prosecuting those who put their personal greed above the public good.”
“I applaud the actions taken by our law enforcement partners to seek out and hold accountable those who choose to defraud our health care programs,” said U.S. Attorney Matthew Schneider of the Eastern District of Michigan. “These charges should send a strong message to health care professionals that theft from these vital programs will be met with serious consequences.”
“The abuse of our healthcare programs affects all taxpayers, who foot the bill to make coverage available,” said Special Agent in Charge Steven M. D’Antuono of the FBI’s Detroit Field Office. “These offenders stole American taxpayers' hard-earned money to line their own pockets. We thank our federal and state partners for their collaborative efforts to stop this systemic fraud.”
“As we pursue these cases, our focus is always on the beneficiaries and taxpayers who rely on us to protect the integrity of Medicare programs,” said Special Agent in Charge Lamont Pugh III of the HHS-OIG Chicago Region. “We will continue to work with our law enforcement partners to hold accountable anyone who steals taxpayer dollars and threatens the integrity of this vital benefit.”
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Among those charged in cases handled by Strike Force attorneys in the Eastern District of Michigan are the following:
James Letko, 46, of Pittstown, New Jersey; Steven King, 41, of Pembroke Pines, Florida; Patricia Flannery, 40, of Hellertown, Pennsylvania; Katherine Peterson, 33, of Millford, New Jersey; and Rami Lazeki, 40, of Plymouth, Michigan, were charged in an indictment filed Sept. 26 with one count of conspiracy to commit health care fraud and five counts of health care fraud. The charges stem from an alleged $80 million, multi-prong health care fraud scheme run by Letko, the CEO of A1C Holdings; King, its chief compliance officer; Flannery and Peterson, members of its management team; and Lazeki, pharmacist in charge at All American Medical Pharmacy. All five allegedly conspired to direct employees of multiple subsidiary pharmacies under A1C Holdings to conceal Letko’s ownership in the subsidiary pharmacies; falsify contracts with pharmacy benefit managers to conceal Letko’s ownership interest; classify subsidiary pharmacies as mail order when in fact they were retail pharmacies; authorize refills without patient consent and fail to collect co-pays to induce patients to accept refills of medically unnecessary medications and diabetic testing supplies. The FBI and HHS-OIG investigated the case. Assistant Chief Malisa Dubal of the Criminal Division’s Fraud Section is prosecuting the case.
Regina Black, 50, of Shelby Township, Michigan, owner of Rehabilitative Counseling and Behavior Services of America of Clinton Township, Michigan, was charged in an indictment filed Sept. 17 and unsealed today with five counts of health care fraud and three counts of wire fraud. The charges stem from Black’s alleged role in a $4.9 million health care fraud scheme, in which she advertised and offered services, such as dancing, field trips and other social activities for Medicare enrollees at senior residential buildings. Using the enrollees’ Medicare numbers, Black allegedly caused Medicare to be billed for individual and group psychotherapy services that were not medically necessary, not rendered and/or not otherwise eligible for reimbursement through Medicare. The FBI and HHS-OIG investigated the case. Trial Attorneys Steven Scott and Claire Sobczak of the Fraud Section are prosecuting the case.
Robert Cornfield, D.P.M., 55, of Rochester, Michigan, a podiatrist and owner of Robert H. Cornfield, DPM PC of Rochester, Michigan, was charged in an indictment filed Sept. 17 and unsealed today with five counts of health care fraud. The charges stem from Cornfield’s alleged role in a $1.7 million health care fraud scheme in which Cornfield submitted or caused the submission of claims to Medicare for podiatric services he never provided. Specifically, Cornfield allegedly defrauded Medicare by submitting claims for nail avulsions without actually performing the service. From January 2010 through July 2019, Cornfield allegedly billed Medicare for more than 17,000 nail avulsion procedures, ranking him among the highest in the country for that procedure. The FBI and HHS-OIG investigated the case. Trial Attorneys Steven Scott and Jay McCormack of the Fraud Section are prosecuting the case.
Anthony Weinert, D.P.M., 48, of Oakland, Michigan, owner of Anthony Weinert DPM P.C. in Warren, Michigan, and Troy Surgicare in Troy, Michigan, was charged in an indictment filed Sept. 24 and unsealed yesterday with eight counts of health care fraud. The charges stem from Weinert’s alleged role in a $1.7 million health care fraud scheme, in which Weinert submitted or caused the submission of claims to Medicare for podiatric services he did not provide. Specifically, Weinert allegedly defrauded Medicare by submitting claims for nail avulsions, capsulotomies and mass removals without actually providing the services. The FBI and HHS-OIG investigated the case. Trial Attorneys Jay McCormack and Steven Scott of the Fraud Section are prosecuting the case.
Christopher Fratine, 52, of West Branch, Michigan, owner of Unity Home Health Care LLC of West Branch, Michigan, was charged in an indictment filed Sept. 26 with nine counts of health care fraud and three counts of wire fraud. The charges stem from Fratine’s alleged role in an $18.2 million home health care fraud scheme in which he submitted or caused the submission of claims for home health episodes that were not provided. The FBI, HHS-OIG, and Michigan State Police investigated the case. Trial Attorney Steven Scott of the Fraud Section is prosecuting the case.
Sharon King, 66, of Bloomfield Hills, Michigan, was charged in a superseding indictment filed Sept. 19 and unsealed today with three counts of conspiracy to pay and receive health care kickbacks. One of the counts alleges that King engaged in these acts while on supervised release. These charges come in addition to her original charge for conspiracy to commit health care fraud, which was originally filed in June 2018 and which remains pending. The charges stem from King’s alleged role in a scheme to fraudulently bill Medicare in excess of $2.5 million for physician and home health services that were medically unnecessary, never provided and induced by kickbacks. As part of the scheme, King allegedly provided kickbacks, including prescriptions for controlled substances, to Medicare beneficiaries who agreed to accept physician services from Thomas Mays, M.D. and referrals for home health services provided by Personal Touch, Inij Home Healthcare and other home health agencies. These purported home health and physician services were allegedly often medically unnecessary, not actually provided and/or induced by health care kickbacks. The FBI and HHS-OIG investigated the case. Trial Attorney Jay McCormack is prosecuting the case, which Trial Attorney Tom Tynan of the Fraud Section initially handled.
Farzana Haris, 59, of Canton, Michigan, owner and operator of Inij Home Health Care, was charged in an information filed Sept. 26 with one count of conspiracy to commit health care fraud. The charge stems from Haris’ alleged role in a scheme with co-conspirators Sharon King and Dr. Thomas Mays, M.D. to fraudulently bill Medicare approximately $1.1 million for home health services that were medically unnecessary, never provided and induced by kickbacks. The FBI and HHS-OIG investigated the case. Trial Attorney Jay McCormack is prosecuting the case, which Trial Attorney Tom Tynan initially handled.
Charles Hobson Sr., 78 of Southfield, Michigan, co-owner and operator of Personal Touch Home Health Care, and Charles Hobson, Jr., 50, of Lathrup Village, Michigan, co-owner and operator of Personal Touch Home Health Care were charged in an information filed Aug. 23 with one count of conspiracy to pay and receive kickbacks and bribes in connection with a federal health care program. The charge stems from the Hobsons’ alleged role in a scheme with co-conspirator Sharon King, in which the Hobsons paid kickbacks to King and other patient recruiters in exchange for recruiting Medicare beneficiaries to Personal Touch. The FBI and HHS-OIG investigated the case. Trial Attorney Jay McCormack is prosecuting the case, which Trial Attorney Tom Tynan initially handled.
Mohamed Gomaa, 28, of Dearborn Heights, Michigan, a licensed pharmacist and owner of MedlifeRx Pharmacy of Auburn Hills, Michigan, was charged in an indictment filed Sept. 26 with four counts of mail fraud. The charges stem from Gomaa’s alleged role in a $3.48 million scheme that dispensed expensive and medically unnecessary medications, using forged or fraudulent prescriptions, and sent them by mail to Medicare, Medicaid, BCBS and other private insurance beneficiaries who did not want or need them. Gomaa then allegedly billed Medicare and the other various insurance programs and insurers for the high-cost drugs. The FBI and HHS-OIG investigated the case. Trial Attorney Patrick Suter of the Fraud Section is prosecuting the case.
Yogesh Pancholi, 40, of Northville, Michigan, owner of Shring Home Health Care (Shring) of Livonia, Michigan, was charged in an indictment filed Sept. 24 and unsealed yesterday with one count of conspiracy to commit health care fraud and wire fraud, two counts of health care fraud and two counts of money laundering. The charges stem from Pancholi’s alleged role in a $2.8 million home health “bust out” scheme for the submission of request for advance payments or RAPs. Pancholi allegedly submitted RAP claims through Shring for services not prescribed or rendered to Medicare. The FBI and HHS-OIG investigated the case. Trial Attorney Patrick Suter is prosecuting the case.
Kenneth Mitchell, D.P.M., 57, of Southfield, Michigan, a licensed podiatrist and minority owner of Urban Health Care Group LLC of Southfield, Michigan, was charged in a superseding indictment filed Sept. 17 and unsealed yesterday with one count of falsification of records in a federal investigation. These charges come in addition to Mitchell’s original charges filed Sept. 17 consisting of one count of conspiracy to commit health care fraud and wire fraud and three counts of health care fraud. The charges stem from Mitchell’s alleged role in a $1.8 million scheme by which he and co-conspirators submitted false and fraudulent claims for medically unnecessary podiatry and other services on behalf of Urban Health Care Group LLC. HHS-OIG investigated the case. Trial Attorney Patrick Suter of the Fraud Section is prosecuting the case.
Among those charged in cases handled by Strike Force attorneys in the Northern District of Illinois are the following:
Mark Sorensen, 50, of Chicago, Illinois, and Paulina Goncharova, 30, of Minneapolis, Minnesota, were indicted on Sept. 24 on one count of conspiracy to pay kickbacks and three counts of kickbacks. Sorensen was the owner and Goncharova was the Vice President of Finance for Symed, a Medicare-enrolled durable medical equipment (DME) pharmacy in Chicago, Illinois. The charges stem from Sorensen and Goncharova’s roles in a scheme to fraudulently obtain money from Medicare for braces including paying kickbacks to purchase signed doctors’ prescriptions and falsification of business records. Between April 2015 and April 2018, Symed billed Medicare approximately $87 million, and was paid $25 million for DME claims. Trial Attorney Leslie S. Garthwaite of the Fraud Section is prosecuting the case.
Altamash Mir, 43, formerly of Oak Brook, Illinois and Palos Hills, Illinois, owner of a home health “consulting” business and concealed owner of home health agencies; Muhammad Ateeq, 31, of Rawalpindi, Pakistan, a biller and concealed owner of home health agencies; Nadir Mir, 31, of Las Vegas, Nevada, manager of a home health agency; Tasneem Jamal, 66, formerly of Oak Brook, Illinois and Palos Hills, Illinois, administrator and nominee owner of a home health agency; Hamdeh Chatat, 37 of Highland, Indiana, administrator of a home health agency and a home health “consultant”; Bilal Malik, 41, of Palos Hills, Illinois, Las Vegas, Nevada, and San Bernadino, California, nominee owner of a home health agency; Kendria Cochran, 28, Chicago, Illinois, manager of multiple home health agencies; and Luis Ramos, 28, of Chicago Heights, Illinois, manager of multiple home health agencies, were charged on Sept. 26, 2019, in a 35-count indictment that alleges health care fraud, conspiracy to commit money laundering, concealment of money laundering, false statements relating to health care matters, and engaging in monetary transactions in criminally derived property of greater than $10,000 in value. The charges stem from the defendants’ alleged roles in at least approximately a $40 million fraud scheme in which home health agencies were acquired using fake aliases and/or nominee owners and used to submit fraudulent claims for home health services that were never rendered. Trial Attorney Patrick Mott and Assistant U.S. Attorney Jeremy Daniel are prosecuting the case.
Renato Duarte, Psy.D., 60, of Chicago, Illinois, was charged in an indictment filed Sept. 19 and unsealed today with six counts of health care fraud. The charges stem from Duarte’s billing for providing psychological counseling services to patients who he did not see, including while he was traveling outside of the Chicago area. This caused at least approximately $1.07 million in loss between June 2016 and April 2019. Trial Attorney Leslie S. Garthwaite of the Fraud Section is prosecuting the case.
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The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Fraud Section leads the Medicare Fraud Strike Force (MFSF), which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, MFSF maintains 15 strike forces operating in 24 districts and has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Rockford Woman Sentenced to 34 Months in Prison for Transferring Firearms to FelonRead the Press Release
A Rockford woman was sentenced today in federal court before U.S. District Judge Philip G. Reinhard to 34 months in federal prison, to be followed by three years of supervised release, for selling and disposing of a firearm to a person she knew was a felon.
JASMINE C. TURNER, 26, pleaded guilty to the charge on June 12, 2019. According to a written plea agreement, Turner purchased a Glock .45-caliber pistol and a Diamondback 5.56-caliber pistol in May 2017 for her boyfriend at the time. Turner knew that her boyfriend previously had been convicted of second-degree murder, a felony. Turner admitted that she purchased the firearms at her boyfriend’s request and transferred the firearms to him shortly after purchasing them.
In addition, Turner admitted in the plea agreement that in April 2017 she made a false statement to a licensed firearms dealer in connection with the purchase of another firearm. Turner admitted that she falsely represented on a written form that she was the actual buyer of the firearm, when, in fact, Turner was buying the firearm for another individual. That individual was a friend-of-a-friend of Turner. Turner admitted that directly after the purchase, she gave the firearm to her friend to deliver to the other individual.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and Dan O’Shea, Chief of the Rockford Police Department. The government is represented by Assistant U.S. Attorney Talia Bucci.
North Suburban Man Sentenced to 15 Years in Prison for Enticing Underage Girls into SexRead the Press Release
CHICAGO — A north suburban man has been sentenced to 15 years in federal prison for enticing underage girls to engage in sex acts with him.
CASEY IRELAND, 36, of Antioch, pleaded guilty earlier this year to one count of enticement of a minor to engage in criminal sexual activity, and one count of attempted enticement of a minor to engage in criminal sexual activity. U.S. District Chief Judge Rebecca R. Pallmeyer imposed the 15-year sentence Thursday in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Leo Lamont, Special Agent-in-Charge of the Naval Criminal Investigative Service, Resident Agency Great Lakes. Valuable assistance was provided by the Antioch Police Department and law enforcement authorities in Wisconsin. The government is represented by Assistant U.S. Attorney A.J. Dixon.
Ireland admitted in a plea agreement that in the spring of 2017 he had sex with two 15-year-old girls from Wisconsin. Ireland began communicating with the girls via online messaging applications.
On May 18, 2017, and June 1, 2017, Ireland drove to Wisconsin to pick up the first victim at her high school, and then drove her back to his home in Antioch to engage in sex acts. On May 31, 2017, Ireland arranged to pick up the second victim at a park near her home in Wisconsin, and then drove her to his home to engage in sex acts.
After the second victim informed law enforcement about her encounter with Ireland, authorities took control of her messaging account and reestablished communication with him. During subsequent messages, Ireland and law enforcement – posing as the victim – arranged for Ireland to pick up the victim at the same park near her home to engage in another sexual encounter. When Ireland drove to the park on June 7, 2017, he was arrested.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678, or log on to http://www.missingkids.com. The service is available 24 hours a day, seven days a week.
Chicago Woman Charged with Operating Prostitution Business on City’s West SideRead the Press Release
CHICAGO — A Chicago woman has been indicted on federal charges for allegedly operating a prostitution business in the city’s West Town neighborhood.
JESSICA NESBITT, also known as “Madame Priscilla Belle,” 31, is charged with seven counts of using interstate commerce to facilitate prostitution, three counts of illegally structuring cash withdrawals to evade financial reporting requirements, one count of conspiracy to use interstate commerce to facilitate prostitution and transport and entice an individual across state lines to engage in prostitution, one count of enticing an individual across state lines to engage in prostitution, and one count of transporting an individual across state lines to engage in prostitution.
The indictment was returned last month and ordered unsealed today. Nesbitt pleaded not guilty at her arraignment this afternoon before U.S. Magistrate Judge Maria Valdez. A status hearing was scheduled for Oct. 15, 2019, at 9:30 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; Jeffrey S. Sallet, 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 Devlin N. Su and Erika Csicsila.
According to the indictment, Nesbitt owned and operated a company called Kink Extraordinaires, which employed several individuals who engaged in prostitution. Acts of prostitution were carried out in a residential building in the 2400 block of West Augusta Boulevard in Chicago, according to the indictment. Nesbitt advertised prostitution services on multiple websites, including backpage.com, eros.com and Gentlemen’s Pages, as well as a website that Nesbitt operated called kinkextraordinaires.com, the indictment states. Nesbitt also emailed her clients invitations to paid sex and fetish parties, including “Halloween Mischief” and “Black Tie Bizarre,” the indictment states.
In addition to activity in Chicago, Nesbitt arranged for herself and her employees to perform acts of prostitution in California, Washington, D.C., Florida, Indiana, Nevada, and Wisconsin, 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 enticement charge is punishable by up to 20 years in prison, while the transportation and structuring charges carry a maximum sentence of ten years. The charges of conspiracy and using interstate commerce to facilitate prostitution are each punishable by up to five years. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Two Men Indicted in Scheme to Straw Purchase Firearms in Wisconsin and Re-Sell Them in ChicagoRead the Press Release
CHICAGO — Two men have been indicted on federal firearm charges for conspiring to straw purchase 19 handguns in Wisconsin and re-sell them in Chicago.
Wisconsin resident KIRK VALENTINE purchased the firearms at retail stores, pawn shops and gun shows, and falsely certified on required forms that he was the actual buyer, according to an indictment returned in U.S. District Court in Chicago. In reality, Valentine was a straw purchaser who knowingly bought the guns at the direction of FRANCISCO ROCHA, a Chicago resident who identified which firearms he wanted and paid Valentine a premium over the list prices, the indictment states. In the first six months of 2018, the pair caused at least 19 handguns to be purchased in Wisconsin and transported to Chicago, where Rocha and others re-sold and distributed them, the indictment states.
The indictment was returned Aug. 1, 2019, and ordered unsealed Wednesday. Valentine, 23, of La Crosse, Wisc., and Rocha, 28, are charged with conspiracy to deal firearms without a license, and unlawfully dealing and importing firearms.
“Straw purchasers and firearm traffickers enable unlawful possession of guns and the violence that may follow,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “Fighting violent crime is a top priority in our office, and we are committed to holding accountable those who engage in illicit firearm transactions.”
U.S. Attorney Lausch announced the charges along with Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI, and Eddie Johnson, Superintendent of the Chicago Police Department. The U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives provided assistance. The government is represented by Assistant U.S. Attorneys Albert Berry III and Elizabeth Pozolo.
“Straw purchasing firearms is not a victimless crime,” said FBI Assistant SAC Larry L. Lapp. “It is a serious danger to our communities. This indictment demonstrates the FBI’s commitment to working with our law enforcement and prosecutorial partners to help stop the flow of illegal guns into our neighborhoods.”
“We are going to continue to use the full weight of the Chicago Police Department and U.S. Justice Department to send a clear message that we will not tolerate the proliferation and use of illegal guns in Chicago,” said CPD Supt. Johnson. “This case is the latest example of the daily work police officers, federal agents and United States Attorneys are doing to safeguard communities and create a culture of accountability for gun offenders.”
During the investigation, law enforcement utilized ATF’s National Integrated Ballistic Information Network. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms.
Rocha was arrested in Wisconsin on Aug. 9, 2019. He pleaded not guilty Wednesday during his arraignment in federal court in Chicago before U.S. Magistrate Judge Gabriel A. Fuentes. Rocha was ordered to remain in federal custody pending a detention hearing on Sept. 10, 2019, at 1:30 p.m.
Valentine self-surrendered to the Court on Aug. 5, 2019. He pleaded not guilty during his arraignment that day in federal court in Chicago before U.S. Magistrate Judge Maria Valdez. He was ordered released on bond, and a status hearing was scheduled for Sept. 17, 2019, before U.S. District Judge John Z. Lee.
The indictment describes seven firearm transactions in Wisconsin:
- March 8, 2018: Valentine purchased three handguns at Gander Outdoors in Onalaska, Wisc.
- March 23, 2018: Valentine purchased two handguns from a dealer at Bob and Rocco’s Gun Show in Onalaska, Wisc.
- April 13, 2018: Valentine purchased a handgun at Big Rooster Firearms in Sparta, Wisc.
- May 13, 2018: Valentine purchased two handguns at Ace Hardware in La Crosse, Wisc.
- May 17, 2018: Valentine purchased two handguns at Holmen Pawn Shop in Holmen, Wisc.
- May 19, 2018: Valentine purchased two handguns from a dealer at Bob and Rocco’s Gun Show in Onalaska, Wisc.
- May 19, 2018: Valentine purchased seven handguns from a dealer at Bob and Rocco’s Gun Show in Onalaska, Wisc.
Holding straw purchasers accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, including by prosecuting individuals who illegally purchase firearms.
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 the indictment is punishable by a maximum sentence of five years in prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Suburban Man Sentenced to More Than 8 Years in Prison for Using Stolen Credit CardsRead the Press Release
CHICAGO — A suburban Chicago man has been sentenced to eight and a half years in federal prison for using thousands of stolen credit cards to purchase luxury goods and services.
CAMERON YORK bought credit card account numbers, Social Security numbers, and other personal identifying information from online sellers, sometimes paying in Bitcoin. He then used the stolen information to make thousands of dollars in fraudulent charges for various items, including a Jaguar XJL and shoes from luxury brands Maison Margiela, Balenciaga and Louis Vuitton. York also opened accounts at ComEd and Nicor Gas in the names of identity theft victims, racking up unpaid utility balances.
York, 28, of Stone Park, pleaded guilty earlier this year to charges of wire fraud, money laundering, and aggravated identity theft. U.S. District Judge Sharon Johnson Coleman imposed the 102-month sentence after a hearing Sept. 4, 2019, in federal court in Chicago.
The sentence 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 Chicago office of the Internal Revenue Service Criminal Investigation Division; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; and Eddie Johnson, Superintendent of the Chicago Police Department. The U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives provided valuable assistance. The government was represented by Assistant U.S. Attorney Michelle Petersen.
York’s fraud scheme began in 2015 and continued until 2018. Evidence in the case revealed that York wired or caused to be wired approximately $164,598 to the online sellers to purchase the stolen information. In exchange, York received at least 8,796 unique credit card account numbers, of which he attempted to use at least 4,800 to make purchases. York often bought expensive items at high-end retail stores and then boasted about his purchases on social media. In some of the postings, York is shown wearing the items or commenting on his luxury lifestyle.
North Suburban Psychologist Sentenced to Prison for Billing for Nonexistent ServicesRead the Press Release
CHICAGO — A north suburban psychologist has been sentenced to six months in federal prison and fined $100,000 for submitting false claims to private insurers and Medicare.
PAMELA ANTELL, also known as Pamela Gruenhut, operated a psychology practice in Glenview. From 2011 to 2018, Antell submitted fraudulent claims to private insurers and Medicare for mental health services that were not rendered. Some of the fraudulent claims were submitted for an individual who was not actually a patient, while in other instances Antell was not in Illinois on the dates she claimed to have provided treatment. Antell also attempted to obstruct justice by instructing a former patient to lie to investigators about the frequency of treatment sessions and the patient’s payment of copayments.
Antell, 67, of Deerfield, pleaded guilty earlier this year to one count of health care fraud. In addition to the prison term and fine, U.S. District Judge Jorge L. Alonso on Friday ordered Antell to pay $1,464,810 in restitution to the insurers and Medicare.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. The government was represented by Assistant U.S. Attorneys Kelly Greening and L. Heidi Manschreck.
Executive Director of Suburban Autism Center Charged with Fraudulently Billing for Nonexistent ServicesRead the Press Release
CHICAGO — The executive director of a suburban autism center has been indicted on federal fraud charges for allegedly billing a private insurer for nonexistent therapeutic services.
LATRICE HARRELL operated The Champion Center for Autism Inc., in Oak Forest. From November 2015 to May 2018, Harrell submitted fraudulent claims to a private insurer for therapeutic services that were not rendered, according to an indictment returned in U.S. District Court in Chicago. The claims represented that patients had received treatment by the center’s occupational therapist or behavioral analyst, when, in fact, Harrell knew that no such services were provided, the indictment states. Harrell used the names and information of the therapist and analyst without their knowledge to create the fictitious claim forms, the charges allege. As a result of the scheme, Harrell fraudulently obtained at least $1.6 million from Blue Cross Blue Shield of Illinois, the indictment states.
The indictment was returned Aug. 29, 2019. It charges Harrell, 46, of Olympia Fields, with seven counts of health care fraud, two counts of making false statements in a health care matter, and two counts of aggravated identity theft.
Harrell pleaded not guilty today at her arraignment before U.S. District Judge Virginia M. Kendall. A status hearing was scheduled for Nov. 18, 2019.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. The government is represented by Assistant U.S. Attorney Eric Pruitt.
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 health care fraud is punishable by up to ten years in prison, while each false statement count carries a maximum sentence of five years. Aggravated identity theft carries a mandatory prison sentence of two years, which must be served consecutively to the sentence for the underlying offense. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Suburban Man Sentenced to 15 Years in Prison for Sharing Child Pornography and Sexually Assaulting a MinorRead the Press Release
CHICAGO — A suburban man has been sentenced to 15 years in federal prison for sharing sexually explicit images of children and sexually assaulting a 13-year-old girl he met online.
Using the screen name “darkangle25,” MATTHEW SMITH, 51, of Burbank, shared sexually explicit images and videos of children on the Kik online messaging application. Some of the images depicted underage girls being sexually abused. Smith also sexually assaulted a 13-year-old girl in 2015 after chatting online and luring her to his home.
Smith pleaded guilty earlier this year to federal child pornography charges. U.S. District Judge Charles R. Norgle on Aug. 30, 2019, sentenced Smith to 15 years in prison, to be followed by ten years of supervised release.
The sentence 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 Burbank Police Department provided valuable assistance.
“This sentence underscores HSI’s commitment to protecting the most vulnerable members of our society — our children,” said SAC Gibbons. “We will continue to work in partnership with fellow law enforcement agencies and the U.S. Attorney’s Office to bring those engaged in child exploitation to justice.”
Although many of the children depicted in the images and videos have not been identified, 17 of the victims submitted impact statements to the Court prior to sentencing. In the statements, the victims detailed the lasting nature of the conduct by Smith and others who shared the images and videos online.
“By downloading [child pornography], storing, and trading it with others, he continued the victimization of children who had been filmed or photographed engaging in acts no child should be part of,” Assistant U.S. Attorney Matthew Hernandez argued in the government’s sentencing memorandum. “The 17 victim impact statements submitted to the Court speak to the incalculable damage caused to those young victims of child pornography.”
Smith met the 13-year-old victim online and spent two years grooming her via Kik, text message, and phone calls, before enticing her to his apartment. As detailed in victim impact statements submitted by the victim’s family to the Court, the girl’s disappearance caused her family immense suffering and prompted them to file a missing person report on her behalf.
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.
Federal Jury Convicts Real Estate Executive of Fraudulently Concealing Assets in BankruptcyRead the Press Release
CHICAGO — A federal jury in Chicago has convicted a real estate executive of fraudulently concealing assets in a bankruptcy filing.
In his 2009 bankruptcy petition, BRETT IMMEL, 38, of Des Moines, Iowa, and formerly of Chicago, knowingly and fraudulently concealed income and bank accounts, as well as his interests in businesses and partnerships. The jury returned its verdict Monday in U.S. District Court in Chicago.
Concealment of assets in a bankruptcy case is punishable by up to five years in prison. U.S. District Judge Sharon Johnson Coleman did not immediately set a sentencing date.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The government is represented by Assistant U.S. Attorneys Elizabeth Pozolo and Erik Hogstrom.
Evidence at trial revealed that prior to the bankruptcy petition Immel was earning thousands of dollars per month as a general partner at the real estate investment company Hanover Services. Most of his income was paid into a personal checking account held in the names of Immel and his wife. In May 2009, Immel incorporated Fourteen Consulting, a new business entity of which he was the sole owner. Over the next several months, Immel began primarily using the new Fourteen Consulting bank account, as well as a Hanover Services account he controlled, to receive most of his income and to pay out nearly all of his personal expenses, including a home mortgage, lease payments on a luxury car, furniture purchases, shopping at high-end clothing stores, child and pet care expenses, and groceries. Meanwhile, the personal checking account that he stopped using held only about $1,000.
On Oct. 2, 2009, Immel and his wife filed a joint Chapter 7 bankruptcy petition in the U.S. Bankruptcy Court for the Northern District of Illinois, seeking to discharge more than $6 million in debts. In required financial disclosures submitted with the petition and signed under penalty of perjury, Immel disclosed only the personal checking account he was no longer using. He omitted the Hanover and Fourteen Consulting bank accounts, which by that point received most of his income and funded most of the family’s personal expenses. Immel also denied having interests in partnerships and failed to disclose the true nature and value of his interests in Hanover Services and Fourteen Consulting.
On Nov. 13, 2009, Immel appeared at a required meeting with the trustee appointed to oversee his bankruptcy case. During the meeting, which was under oath and recorded, Immel falsely swore that the information provided in the petition was true, fair, accurate, and complete. The bankruptcy petition was approved in January 2010 and all of Immel’s debts were discharged. Evidence at trial revealed that both before and after the meeting with the trustee, Immel continued to use the concealed bank accounts and business interests to fund the bulk of his family’s personal expenses.
Convicted Felon Charged in Federal Court with Illegally Possessing More Than 50 Firearms in Chicago HomeRead the Press Release
CHICAGO — A federal grand jury has indicted a convicted felon for allegedly illegally possessing more than 50 shotguns, rifles and handguns in his Chicago home.
HENRY REYES, 52, is charged with illegal possession of a firearm by a convicted felon. Reyes illegally possessed 30 handguns, 15 rifles, and seven shotguns on Aug. 15, 2019, according to an indictment returned Thursday in U.S. District Court in Chicago. Law enforcement discovered the firearms during a court-authorized search of Reyes’s residence in the Lawndale neighborhood of Chicago, according to a criminal complaint and affidavit previously filed in the case. Reyes was previously convicted of murder in the Circuit Court of Cook County and he was not lawfully allowed to possess a firearm, the charges allege.
Reyes was arrested on the day of the search, and he remains detained in law enforcement custody. Arraignment in U.S. District Court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Eddie Johnson, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Edward A. Liva, Jr., and Special Assistant U.S. Attorney Patricia Pantoja.
Holding convicted felons accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, including by prosecuting individuals who illegally possess firearms.
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. Illegal possession of a firearm by a convicted felon is punishable by up to ten years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Owners of Suburban Youth Counseling Center Indicted on Fraud Charges for Allegedly Defrauding Illinois Medicaid out of $4 MillionRead the Press Release
CHICAGO — The owners of a suburban Chicago youth counseling center defrauded Illinois Medicaid out of approximately $4 million through a fraudulent billing scheme, according to an indictment returned in federal court.
From 2011 to 2018, SUMMER MATHESON and TERRENCE EWING, co-owners of Laynie Foundation Inc., along with foundation employee RICHARD GRUNDY, fraudulently billed Illinois Medicaid for more mental health counseling services than the foundation actually provided, the indictment states. Matheson, Ewing and Grundy also used the Matteson-based foundation to seek payment from Illinois Medicaid for non-reimbursable activities, such as internal case reviews, staff training, clinical supervision and recordkeeping, the indictment alleges. The indictment additionally accuses Matheson of attempting to cover up the fraud by directing foundation personnel to backdate and falsify patient records to make it appear that a licensed practitioner had reviewed and approved certain mental health services, when, in fact, Matheson knew that a practitioner had not reviewed and approved those services. As a result of the fraud, Matheson, Ewing and Grundy fraudulently obtained approximately $4 million from Illinois Medicaid and managed-care organizations used by Illinois Medicaid, the indictment states.
The indictment was returned Tuesday. It charges Matheson, 41, and Ewing, 57, both of Dyer, Ind., with six counts of health care fraud. Matheson is also charged with one count of obstruction of justice. Grundy, 34, of Chicago, is charged with five counts of health care fraud. Arraignments in U.S. District Court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; 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 Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. The Illinois Attorney General’s Office and Illinois State Police assisted in the investigation. The government is represented by Assistant U.S. Attorneys Prashant Kolluri and Charles W. Mulaney.
The U.S. Attorney’s Office and Illinois Attorney General’s Office previously intervened in a civil lawsuit that a private citizen filed against the foundation pursuant to the qui tam, or whistleblower, provisions of the False Claims Act. The lawsuit is pending in federal court.
Medicaid is a state-administered program, and each state sets its own guidelines regarding eligibility and services. For Illinois Medicaid recipients, funding is shared between the federal government and the State of Illinois.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The obstruction count is punishable by up to 20 years in prison, while each health care fraud count carries a maximum sentence of ten years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Source of Firearms for Violent Chicago Gang Sentenced to 4 Years in PrisonRead the Press Release
CHICAGO — A federal judge today sentenced a Chicago man to four years in prison for unlawfully supplying guns to a violent street gang.
From February 2015 to May 2016, ANTHONY MORGAN directed and paid for an acquaintance to purchase at least seven guns in New Mexico. The weapons were shipped through the mail to Morgan’s residence in Chicago. Morgan then supplied some of the guns to members of his violent street gang on the city’s South Side. Law enforcement later tied two of the firearms to homicides, including the November 2015 murder of 9-year-old Tyshawn Lee in Chicago’s Auburn Gresham neighborhood.
Morgan, 32, pleaded guilty earlier this year to a federal firearms conspiracy charge. U.S. District Judge Charles R. Norgle imposed the 48-month sentence in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Eddie Johnson, Superintendent of the Chicago Police Department. Substantial assistance was provided by the U.S. Postal Inspection Service and the U.S. Postal Service Office of Inspector General.
During the investigation, law enforcement utilized ATF’s National Integrated Ballistic Information Network. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms.
Holding firearms traffickers accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, including by prosecuting individuals who illegally traffic firearms.
Evidence in the case revealed that Morgan directed his acquaintance in New Mexico to purchase the guns in four separate transactions. Of the seven guns Morgan received, two were linked to murders, one was linked to a shooting that left two people wounded, and another was recovered in Morgan’s vehicle after CPD responded to an emergency call of shots fired on the Fourth of July 2017. In addition to the murder of Tyshawn Lee, the other fatality connected to one of Morgan’s guns involved the murder of a man on Chicago’s North Side in January 2016.
“This is a case study in how illegal guns flood this district and terrorize our community,” Assistant U.S. Attorney James P. Durkin argued in the government’s sentencing memorandum. “Illegal firearms are the lifeblood of violent crime in this city, and they need to be treated as such.”
Former Financial Adviser Arrested on Fraud Charge for Allegedly Swindling Millions from ClientsRead the Press Release
CHICAGO — A Chicago financial adviser has been arrested on a federal fraud charge for allegedly swindling millions of dollars from clients, including a man who received approximately $5 million in a wrongful conviction settlement.
MARCUS E. BOGGS, 49, is charged with one count of wire fraud. Boggs was arrested on Aug. 22, 2019, at O’Hare International Airport in Chicago prior to boarding an international flight. He appeared Monday before U.S. Magistrate Judge Jeffrey Cole and was ordered to remain detained in federal custody without bond.
The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. Valuable assistance was provided by the Chicago Regional Office of the U.S. Securities and Exchange Commission, which previously filed a civil enforcement action against Boggs. The government is represented by Assistant U.S. Attorney John D. Mitchell.
Boggs worked as a financial adviser in the Chicago office of a large wealth management firm, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. From 2009 to 2018, Boggs stole at least $2 million from client funds and used the money to make mortgage payments, travel to lavish international locations, and pay other personal expenditures, the complaint states.
The complaint describes the misappropriation of funds from four of Boggs’s clients. One of those clients received approximately $5 million in a 2014 settlement after being wrongfully convicted of murdering a 14-year-old girl, the complaint states. The man invested some of the settlement funds with Boggs’s firm on the understanding that Boggs would manage the money and ensure that he had enough funds for the rest of his life. Boggs instead stole approximately $815,000 from the man’s accounts to pay personal credit card debt, the complaint states.
Another victim cited in the complaint sold his home and invested the proceeds with Boggs. The victim understood that Boggs would manage the funds in safe investments to generate retirement income, the complaint states. When the value of his accounts began decreasing, Boggs misrepresented that it was due to fluctuations in the stock market, the complaint states. In reality, Boggs had used approximately $127,000 from the man’s accounts to pay personal credit card debt, the charge alleges.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Wire fraud is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Rockford Man Pleads Guilty to Aiming Laser Pointer at AircraftRead the Press Release
ROCKFORD — A Rockford man pleaded guilty today before U.S. District Judge Philip G. Reinhard to aiming the beam of a laser pointer at an aircraft.
BRENTON WELLS, 45, admitted in a written plea agreement that on Dec. 6, 2018, while standing in the backyard of a residence in Rockford, he knowingly aimed his laser pointer at an aircraft flying over the residence. Wells also admitted that he continued to aim his laser pointer at the aircraft for a period of time even as the aircraft moved through the sky over the residence.
Sentencing is set for Dec. 10, 2019, at 9:00 a.m. Wells faces a maximum potential penalty of up to five years in prison and a fine of up to $250,000. The actual 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; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI, and Dan O’Shea, Rockford Chief of Police. The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Federal Charges Filed Against Chicago Man Who Allegedly Posted Online Threats of Violence at Women’s Reproductive ClinicRead the Press Release
CHICAGO — A Chicago man has been arrested on federal criminal charges for allegedly threatening to commit violence at a women’s reproductive health clinic.
FARHAN SHEIKH, 19, is charged with transmitting a threat in interstate commerce. Sheikh was arrested Friday night and made an initial court appearance this morning before U.S. Magistrate Judge Susan E. Cox. Judge Cox ordered Sheikh to remain in custody pending a detention hearing set for Tuesday at 2:30 p.m.
The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. The case was investigated by the FBI’s Joint Terrorism Task Force. The U.S. Marshals Service and the Chicago Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorney Jordan M. Matthews.
Sheikh posted the threating communications on or about Aug. 13, 2019, on the social media platform iFunny, according to a criminal complaint and affidavit filed Saturday in U.S. District Court in Chicago. In one of the posts, Sheikh allegedly stated, “I am done with my state and their (sic) [expletive] abortion laws and allowing innocrnt (sic) kids to be slaughtered for the so called ‘womans right’ [expletive].” According to the complaint, Sheikh wrote later in the post that he would visit the clinic on Aug. 23, 2019, and “proceed to slaughter and murder any doctor, patient, or visitor I see in the area and I will not back down. consider this a warning for anyone visiting…”
Sheikh also wrote that his iFunny account is “NOT a satirical account. I post what I mean, and i WILL carry out what I post,” according to the complaint.
The charge in the complaint is punishable by a maximum sentence of five years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
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.
Three Chicago Men Charged in Murder-For-Hire PlotRead the Press Release
CHICAGO — Three Chicago men have been charged in a murder-for-hire conspiracy that resulted in two fatal shootings in the city’s Lawndale neighborhood.
DESHAWN MORGAN, 37, DARIUS MURPHY, 19, and DEMOND BROWN, 26, are charged with conspiracy to use an interstate facility in the commission of a murder for hire, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. All three defendants are in law enforcement custody. U.S. Magistrate Judge Susan E. Cox scheduled a detention hearing for Brown for Aug. 19, 2019, at 4:30 p.m., and preliminary hearings for Morgan and Murphy for Aug. 20, 2019, at 10:30 a.m.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; Eddie Johnson, Superintendent of the Chicago Police Department; Kathy A. Enstrom, Special Agent-in-Charge of the Chicago office of the Internal Revenue Service Criminal Investigation Division; Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; and Kimberly M. Foxx, Cook County State’s Attorney. Valuable assistance was provided by the Cook County Sheriff’s Office, the FBI, the Chicago High Intensity Drug Trafficking Area program (HIDTA), and the Organized Crime Drug Enforcement Task Force (OCDETF). The government is represented by Assistant U.S. Attorneys John D. Mitchell and Grayson S. Walker.
According to the complaint, Morgan has been involved in violence and illegal narcotics trafficking on the West Side of Chicago. Morgan believed Donald Holmes, Jr., was working with law enforcement as a confidential informant and Morgan sought to have him killed, the complaint states. In the fall of 2017, Morgan hired Murphy and Brown to murder Holmes in exchange for $5,000 and an assault rifle, the charges allege.
On the night of Jan. 31, 2018, the defendants lured Holmes to the 4700 block of West Arthington Street in Chicago, the complaint states. Holmes arrived with his girlfriend, Diane Taylor, and the pair was sitting in Holmes’s Jeep Cherokee parked on the street when Murphy entered the vehicle and shot Holmes and Taylor multiple times in the back of their heads, the complaint states.
Although Holmes had previously worked as a cooperating source for law enforcement, he was not working with law enforcement at the time of the murders, the complaint states.
The day after the murders, Brown purchased a used Buick LeSabre for $900 in cash, the complaint states. Brown then allegedly traveled to Minneapolis, Minn., where he traded the handgun used in the murders for a different firearm. Law enforcement eventually recovered the gun used in the murders after it was discovered in the possession of a Minnesota resident who was arrested in February 2018 in Milwaukee, Wisc., according to the complaint.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charge in the complaint carries 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.
North Suburban Man Sentenced to 25 Years in Prison on Child Pornography ChargesRead the Press Release
CHICAGO — A north suburban man has been sentenced to 25 years in federal prison for distributing thousands of sexually explicit images and videos of children.
RONALD FEDER offered to give child pornography to an individual he met online in exchange for what Feder thought would be access to molest the individual’s nephew and niece. During a December 2017 meeting in a coffee shop in Lincolnwood, Feder handed the individual a flash drive containing approximately 453 videos and 7,932 images of child pornography. Unbeknownst to Feder, the individual was an undercover law enforcement officer, and the nephew and niece did not exist. Feder was arrested at the coffee shop and has remained in custody since then.
The online communication and coffee shop meeting occurred while Feder was free on bond in connection with a previous child pornography charge.
Feder, 32, of Skokie, pleaded guilty earlier this year to child pornography charges in both cases. U.S. District Judge Matthew F. Kennelly on Tuesday imposed a total sentence of 25 years in prison, to be followed by 25 years of supervised release.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Brian Benczkowski, Assistant Attorney General of the U.S. Department of Justice’s Criminal Division; Leo Lamont, Special Agent-in-Charge of the Naval Criminal Investigative Service, Resident Agency Great Lakes; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and Josh Kaul, Wisconsin Attorney General. Substantial assistance was provide by the Skokie Police Department. The government is represented by Assistant U.S. Attorneys Andrew Dixon and Jennifer Maguire.
In the first case against Feder, a grand jury in Chicago indicted him in 2016 for possessing a sexually explicit image of a minor under the age of twelve. The conduct occurred while Feder was working as a civilian employee of the Armed Forces and living overseas. Feder initially pleaded not guilty to that charge and was ordered released on bond in September 2016, with a condition of the release prohibiting him from accessing the internet.
Feder violated the bond condition when he went online and began communicating with the undercover officer. Using the online aliases “Tom Bradly” and “Jack Wayne,” Feder engaged in online and telephone communications with the undercover officer prior to the meeting in the Lincolnwood coffee shop.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678. The hotline is available 24 hours a day, seven days a week.
Convicted Felon Charged with Illegally Possessing Semi-Automatic Rifle at Veterans Affairs Hospital in ChicagoRead the Press Release
CHICAGO — A convicted felon has been charged with a federal firearm violation for allegedly illegally possessing a semi-automatic rifle at the Jesse Brown VA Medical Center in Chicago.
BERNARD HARVEY, JR., 40, of Indianapolis, Ind., is charged with one count of illegal possession of a firearm by a convicted felon. Harvey illegally possessed the rifle on Aug. 12, 2019, at the medical center, 820 S. Damen Ave. in Chicago, according to a criminal complaint and affidavit filed today in U.S. District Court in Chicago. Harvey is scheduled to make an initial court appearance today at 2:00 p.m. before U.S. Magistrate Judge Susan E. Cox.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; and Eddie Johnson, Superintendent of the Chicago Police Department. The Jesse Brown VA Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorney Corey B. Rubenstein.
Holding convicted felons accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, including by prosecuting individuals who illegally possess firearms.
According to the complaint, Harvey entered the Taylor Street entrance of the medical center while holding the rifle. Law enforcement officers saw Harvey in the clinic area and ordered him to drop the rifle, which he did, the complaint states. The officers then ordered Harvey to the ground and placed him under arrest.
Harvey was previously convicted in the Circuit Court of Cook County of multiple felonies, including gun offenses, and he was not lawfully allowed to possess a firearm. The rifle in Harvey’s possession at the VA medical center had been reported stolen last month from a federal firearms licensee in Indiana, the complaint states.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Illegal possession of a firearm by a convicted felon is punishable by up to ten years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Former High-Ranking Member of Sinaloa Drug Cartel Sentenced to 28 Years in PrisonRead the Press Release
CHICAGO — A former high-ranking member of the Sinaloa drug cartel in Mexico was sentenced today to 28 years in federal prison for his role in transporting large amounts of illegal drugs to the Chicago area and throughout the United States.
From at least 2009 until his arrest in November 2014, JESUS RAUL BELTRAN LEON conspired with other Sinaloa Cartel members to transport multi-ton quantities of illegal drugs into the United States. Beltran Leon invested in shipments comprising hundreds of kilograms of drugs that were purchased in Central and South America, imported into Mexico, and eventually smuggled into the U.S. for distribution in Chicago and throughout the country. Beltran Leon also sought to acquire from other cartel members numerous kilograms of drugs that already had been imported into the U.S. so that he could further distribute those narcotics to his own wholesale drug customers in Chicago and throughout the country.
Beltran Leon, 35, of Culiacan, Sinaloa, Mexico, pleaded guilty earlier this year to a drug conspiracy charge. U.S. District Judge Ruben Castillo imposed the sentence in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Brian McKnight, 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 Andrew C. Erskine and Erika L. Csicsila.
Beltran Leon 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.
Two Chicago Men Sentenced to Federal Prison for Carjacking and Weapons OffensesRead the Press Release
CHICAGO — Two Chicago men who carjacked a sport-utility vehicle at gunpoint in the city’s Goose Island neighborhood have each been sentenced to eleven years in federal prison.
JASON DORTCH, 20, and DAVONTAE JONES, 20, forcibly took the Jeep Grand Cherokee on Nov. 13, 2017. During the carjacking, the Jeep’s owner was struck on the back of the head with a gun, while a second gun was pointed at the heads of both the owner and a passenger.
Dortch and Jones pleaded guilty earlier this year to carjacking and weapons offenses. U.S. District Judge John J. Tharp, Jr., on Thursday sentenced Dortch and Jones to eleven years apiece in federal prison.
The sentencings were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; and Eddie Johnson, Superintendent of the Chicago Police Department. The Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, Oak Park Police Department, and Illinois State Police provided valuable assistance.
The case was investigated by the Chicago 11th District Violent Crimes Task Force, which consists of agents and officers from the FBI, CPD, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Drug Enforcement Administration, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
“In a city that has seen carjackings and shootings in staggering numbers, violent crimes like the ones the defendants committed should not be tolerated,” Assistant U.S. Attorneys Jeannice W. Appenteng and Kalia Coleman argued in the government’s sentencing memorandum. “The defendants’ conduct demonstrates profound disrespect for the law and complete disregard for fellow citizens and the community.”
According to evidence in the case, the owner of the Jeep complied with the defendants’ demands for the keys, and also handed over $40. About 30 minutes later and a mile away, a CPD officer observed the defendants in the stolen Jeep. Dortch and Jones refused to stop and instead led police on a high-speed chase onto the Eisenhower Expressway. The defendants eventually lost control of the vehicle, crashing it just east of the Harlem Avenue exit in Oak Park. They were arrested nearby after a foot chase.
Streamwood Man Admits Enticing Underage Boy to Produce Sexually Explicit VideosRead the Press Release
CHICAGO — A Streamwood man has pleaded guilty to a federal child pornography charge and admitted enticing a 16-year-old boy to produce sexually explicit videos of himself.
MICHAEL LIEDTKE, 34, pleaded guilty Friday to one count of receipt of child pornography. He faces a mandatory minimum sentence of five years in federal prison and a maximum sentence of 20 years. U.S. District Judge Elaine E. Bucklo set sentencing for Oct. 28, 2019, at 10:30 a.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kevin Keithley, Deputy Special Agent-in-Charge of the Chicago office of the FBI; and Robert Berlin, DuPage County State’s Attorney. The Carol Stream Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorney Abigail Peluso.
Liedtke admitted in a plea agreement that in December 2016 he enticed the 16-year-old boy to create two sexually explicit videos and send them to Liedtke via cellphone. During a court-authorized search of Liedtke’s home earlier this year, law enforcement discovered an external disk drive that contained 29 images and six videos of children engaged in sexually explicit conduct, the plea agreement states. Each of the children depicted in the images and videos was identified as a known child victim by the National Center for Missing and Exploited Children.
Liedtke also admitted in the plea agreement that in January 2019 he possessed and operated a video camera that he intentionally hid in the ceiling of a public restroom at the DuPage County Training Academy in Carol Stream. Recordings from the camera depicted the unclothed body parts of approximately 400 people using the restroom, including approximately 300 children under the age of 18, the plea agreement states. Liedtke acknowledged in the plea agreement that he placed the video camera in the restroom to obtain the lewd images.
“This office will continue to prosecute and hold accountable those individuals who prey upon our youth,” said U.S. Attorney Lausch. “This plea agreement does just that, as Mr. Liedtke now stands as a convicted felon. We appreciate the outstanding work of our colleagues at the DuPage County State’s Attorney’s Office, as well as our federal, state, and local law enforcement partners, who worked together to bring justice to Mr. Liedtke.”
“Mr. Liedtke betrayed our community by victimizing children entrusted to his care,” said FBI Deputy Special Agent-in-Charge Keithley. “The FBI is charged with protecting our most vulnerable citizens from exploitation, and this guilty plea demonstrates our commitment to working with law enforcement partners to ensure that predators like Mr. Liedtke answer for their crimes.”
“Mr. Liedtke violated the trust placed in him by the parents of the athletes he trained,” DuPage County State’s Attorney Berlin said. “I would like to thank the U.S. Attorney’s Office for their work in holding Mr. Liedtke responsible for his vulgar behavior. Today’s plea in federal court is an outstanding example of state and federal authorities working together to protect the public.”
As set forth in the federal plea agreement, now that the defendant has pleaded guilty and stipulated to a wide range of criminal conduct, the DuPage County State’s Attorney’s Office will move to dismiss the parallel state criminal charges pending against Liedtke.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678. The hotline is available 24 hours a day, seven days a week.
Illinois State Senator Indicted for Allegedly Fraudulently Receiving Salary and Benefits from Labor UnionRead the Press Release
CHICAGO — A federal grand jury in Chicago has indicted Illinois State Sen. THOMAS E. CULLERTON on embezzlement charges for allegedly fraudulently receiving salary and benefits from a labor union for which he did little or no work.
Cullerton, 49, of Villa Park, is charged with one count of conspiracy to embezzle from a labor union and employee benefit plans, 39 counts of embezzlement from a labor union, and one count of making false statements in a health care matter, according to an indictment returned Thursday in U.S. District Court in Chicago. Arraignment in federal court has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; 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. Attorneys Amarjeet S. Bhachu and Abigail Peluso.
According to the indictment, Cullerton was a member of Teamsters Local Union 734 prior to assuming office as an Illinois State Senator. After his election in November 2012, Cullerton was no longer an eligible participant in Local 734’s health and pension funds. In March 2013, while Cullerton was serving in the Illinois Senate, the president of Teamsters Joint Council 25 hired him as a purported union organizer. The full-time, salaried position included benefits from Local 734’s health and pension funds, due to an agreement Joint Council 25 entered into with Local 734 that same month, the indictment states.
The charges allege that for the next three years Cullerton did little or no work as an organizer. When Joint Council 25 supervisors requested that he perform his job duties, Cullerton routinely ignored them, the indictment states. From March 2013 to February 2016, Cullerton fraudulently obtained from Joint Council 25 and its members approximately $188,320 in salary, bonuses, and cellphone and vehicle allowances, as well as approximately $64,068 in health and pension contributions, according to the indictment. Cullerton used the proceeds of the payments to pay personal expenses, such as his mortgage, utilities and groceries, the charges allege.
The indictment alleges that Cullerton also fraudulently obtained approximately $21,678 in reimbursed medical claims from Local 734’s Health and Welfare Fund. Cullerton submitted or caused to be submitted to medical providers information that made it appear he was a “route salesman” for Local 734, the indictment states. The false information concealed and covered up the fact that Cullerton was not eligible for participation in the fund since he was not regularly scheduled to work at least 30 hours per week for Local 734, Joint Council 25, or any other employer that participated in the fund, according to the indictment.
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 charges in the indictment are each punishable by up to five years’ imprisonment. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Former Union Official Admits Receiving Unlawful Cash Payments from Chicago BusinessRead the Press Release
CHICAGO — A former high-ranking official in a labor union admitted in federal court today that he accepted $325,000 in unlawful cash payments from a Chicago business and failed to report the payments on his federal tax returns.
JOHN T. COLI SR., 59, of Chicago, pleaded guilty to one count of receiving a prohibited payment as a union officer, and one count of making a false income tax return. The charges are punishable by a combined maximum sentence of eight years in federal prison. U.S. District Chief Judge Rebecca R. Pallmeyer did not immediately schedule a sentencing date. A status hearing was set for Oct. 31, 2019, at 9:30 a.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago; and Tara Sullivan, Acting Special Agent-in-Charge of the Chicago office of the Internal Revenue Service Criminal Investigation Division. The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu and Abigail Peluso.
Coli served from 2000 to 2017 as the Secretary-Treasurer of Teamsters Local Union 727. Coli admitted in a plea agreement that from 2014 to 2017, he received quarterly payments of $25,000 from a Chicago business that employed workers represented by Local 727. The money was paid to Coli in cash in order to conceal Coli’s receipt of the payments, the plea agreement states. Coli acknowledged in the plea agreement that had law enforcement not intervened, he expected to receive four more quarterly payments from the company and then retire from the union.
The tax count pertains to Coli’s knowing and willful failure to report the secret cash payments as income for the calendar years 2014 through 2016. This conduct resulted in a federal tax loss of approximately $105,000, and a State of Illinois tax loss of approximately $12,500. In addition, Coli acknowledged in the plea agreement that he received income and other benefits from representatives of businesses that dealt with Local 727 that were not properly disclosed to the U.S. Department of Labor. According to the plea agreement, the benefits included meals in Las Vegas and other cities, free box seat tickets to National Football League and Major League Baseball games, use of a yacht in the U.S. and Italy, and periodic cash payments.
Federal Probe into Bank Fraud in North Suburbs Adds Two New DefendantsRead the Press Release
CHICAGO — A federal investigation that previously led to bank fraud and identity theft charges against a north suburban businessman has resulted in indictments against two additional defendants, including the businessman’s brother.
JASON SCHIFF, 40, of Lincolnwood, is charged with three counts of bank fraud, according to a superseding indictment returned July 24, 2019, in U.S. District Court in Chicago. The superseding indictment also charges Jason Schiff’s brother, YALE SCHIFF, 44, of Riverwoods, with 12 counts of bank fraud and two counts of aggravated identity theft. Yale Schiff was initially charged in the case last month. The Schiffs pleaded not guilty today during arraignments before U.S. Magistrate Judge Young B. Kim in Chicago.
A separate indictment returned July 17, 2019, charges Yale Schiff’s business associate, DAVID IZSAK, 44, of Chicago, with eleven counts of bank fraud and one count of aggravated identity theft. During the investigation, federal authorities seized Izsak’s 57-foot Carver 570 Voyager yacht known as the “Flying Lady.” The indictment seeks forfeiture of the yacht, as well as a personal money judgment against Izsak of approximately $4 million. Izsak pleaded not guilty at his arraignment earlier this month.
The indictments were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; and Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The government is represented by Assistant U.S. Attorney Sheri H. Mecklenburg.
According to the charges against the Schiffs, Yale Schiff made false statements in loan applications to obtain millions of dollars in mortgage loans secured by a variety of properties. The charges allege that Yale Schiff filed with the Cook County Recorder of Deeds fraudulent letters from financial institutions claiming that loans on the properties were paid in full and that the mortgages were released, when, in fact, the loans were not paid in full and the mortgages had not been released. Yale Schiff then kept the financing paid by the banks, as well as proceeds from the eventual sales of the properties, without paying the mortgages, the indictment states. The fraud allegedly committed by Jason Schiff arose out of bank loans for vehicles and a loan secured by real estate purchased from Yale Schiff.
The charges against Izsak accuse him of fraudulently obtaining loans secured by real estate and vehicles. Izsak allegedly submitted or caused to be submitted to the Cook County Recorder of Deeds fake letters purporting to be from the lender, purporting to congratulate Izsak for paying his loan in full and releasing the lien. In reality, the letters were not from the lender, the loans were not paid in full, and the liens were not released, the indictment states.
Izsak and Yale Schiff are each accused of fraudulently obtaining loans by using names, Social Security numbers and dates of birth that did not belong to them. Izsak also used a stolen identity to obtain a credit card, while Yale Schiff used fake and stolen identities to fraudulently obtain a charge card at Nordstrom department store and loans for a Jeep Grand Cherokee and a Lexus RX350, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each bank fraud count is punishable by a maximum sentence of 30 years in prison, while each count of aggravated identity theft carries a mandatory sentence of two years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Federal Grand Jury in Chicago Indicts Chinese Businesswoman on Charges of Visa FraudRead the Press Release
CHICAGO — A Chinese businesswoman has been indicted in Chicago on federal fraud charges for allegedly providing false verifications of employment for Chinese nationals seeking to stay in the United States on F-1 or H-1B visas.
WEIYUN HUANG, also known as “Kelly Huang,” 30, of Beijing, China, is charged with one count of conspiracy to commit visa fraud and five counts of visa fraud, according to an indictment returned Thursday in U.S. District Court in Chicago. Huang has been in federal custody since March after her arrest in the Northern District of California. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; and James M. Gibbons, Special Agent-in-Charge of the U.S. Immigration and Customs Enforcement’s 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.
According to the indictment, Huang founded two companies – FINDREAM LLC and SINOCONTECH LLC – for the purported purpose of employing foreign nationals in the United States. Huang advertised Findream as a “startup company in technology services and consulting,” with clients in China and the U.S. Huang used a China-based website, “Chinese Looking for Job,” and a China-based WeChat platform, “Job Hunters of North America,” to advertise Findream and Sinocontech to F-1 visa-holders in the U.S. seeking employment and H-1B visas.
In reality, the companies did not deliver any technology or consulting services nor did they employ any of the individuals who responded to the advertisements, the indictment states. In exchange for a fee, Huang and the companies provided written proof of employment to their customers, knowing that the companies did not actually employ them, the charges allege. Huang, Findream and Sinocontech also provided false offer letters and verification of employment letters as purported evidence of employment, knowing the forms were bogus, the indictment states.
The fraud scheme allowed at least approximately 2,685 customers to list Findream or Sinocontech as their employer in order to stay in the U.S. on the visas, according to the indictment. Huang and her two companies received at least approximately $2 million from customers for whom they agreed to falsely certify employment, the indictment states.
Findream, which was incorporated in California, and Sinocontech, which was incorporated in Delaware, are also charged in the indictment. Findream is charged with one count of conspiracy to commit visa fraud and four counts of visa fraud, while Sinocontech is charged with one count of conspiracy to commit visa fraud and one count of visa fraud.
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. Each count of visa fraud is punishable by up to ten years in prison, while the conspiracy count carries a maximum sentence of five years.
Ten Years in Federal Prison for Con Man Who Defrauded More Than 200 Undocumented ImmigrantsRead the Press Release
CHICAGO — A con man who operated a fraudulent immigration services business that defrauded hundreds of undocumented immigrants has been sentenced to ten years in federal prison.
JAMES KEEGAN fraudulently offered immigration advocacy services, including guaranteed permanent resident status in the United States, in exchange for a fluctuating fee that averaged $3,000 per applicant. Keegan falsely claimed that he formerly worked as an attorney for the U.S. Department of Homeland Security and that he still had connections there who could quickly approve the permanent resident applications for legal status. More than 200 undocumented immigrants paid him more than $687,000, with many of the fees paid in cash at Keegan’s storefront office in Berwyn. In reality, Keegan was never an attorney and had not worked for DHS, and he never filed any immigration applications on behalf of his undocumented immigrant “clients.” Keegan spent all of the fees on personal expenses, including gambling losses.
Keegan, 57, of Cicero, pleaded guilty in March to one count of wire fraud. U.S. District Judge John Robert Blakey imposed the sentence Wednesday in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; James M. Gibbons, Special Agent-in-Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago; and Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. Special Assistant U.S. Attorney Christine M. Young represented the government.
According to evidence in the case, Keegan carried out the fraud scheme during a nine-month period in 2017. He attempted to conceal his scam by creating fake approval notices and attempting to purchase bogus immigration documents. A law enforcement search of Keegan’s computers and cell phone revealed that he sought to purchase 35 blank residency cards from an online provider of novelty identification documents.
At the time of his immigration fraud scheme, Keegan was on court supervision after recently being released from federal prison for a prior conviction involving investment fraud.
Former Chicago Resident Sentenced to 5 Years in Prison for Participating in $100 Million Money Laundering Conspiracy Involving Mexican Drug CartelsRead the Press Release
CHICAGO — A former Chicago resident who laundered illegal drug proceeds on behalf of two cartels in Mexico has been sentenced to five years in federal prison.
MARIO HERRERA was a member of a Mexico-based conspiracy that laundered more than $100 million in narcotics proceeds on behalf of the Jalisco New Generation and Sinaloa cartels. Herrera was personally responsible for laundering or attempting to launder at least $1.07 million in proceeds from the sale of cartel narcotics. Herrera was among 30 defendants charged as part of the Chicago-based federal investigation dubbed “Operation King’s Gold.”
Herrera, 55, of Michoacán, Mexico, and formerly of Chicago, pleaded guilty last year to one count of conspiracy to commit money laundering. U.S. District Judge Andrea R. Wood imposed the five-year sentence Wednesday in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Tara Sullivan, Acting Special Agent-in-Charge of the Chicago office of the Internal Revenue Service Criminal Investigation Division; and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. Substantial assistance was provided by the U.S. Drug Enforcement Administration, Cook County Sheriff’s Office, DuPage County Sheriff’s Office, Chicago Police Department, Buffalo Grove Police Department, Joliet Metropolitan Area Narcotics Squad, and the U.S. Marshals Service.
The probe was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies, whose principal mission is to identify, disrupt and dismantle the most serious drug trafficking and money laundering organizations.
“Money is the lifeblood that allows cartels to poison U.S. streets and wage war on innocent men, women, and children on both sides of the border,” Assistant U.S. Attorneys Peter M. Flanagan, Sean K. Driscoll and Aaron R. Bond argued in the government’s sentencing memorandum. Herrera “took part in an organization that shuttled over $100 million in drug proceeds from street corners of the United States to the pockets of the individuals in Mexico who control the drug trade. The people who import these narcotics do so for money, and that is exactly what the defendant delivered.”
“This sentence sends a resounding message that transnational criminal organizations will be investigated and their operatives brought to justice,” said HSI Special Agent-in-Charge Gibbons. “The amount of cooperation between HSI and our state, federal, and international partners is invaluable to halting the deadly actions of complex drug organizations.”
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs,” said IRS-CI Acting Special Agent-in-Charge Sullivan. “Without these ill-gotten gains, the traffickers could not finance their organizations. IRS Criminal Investigation, along with the Department of Justice, is committed to taking the profit away from the drug traffickers and putting those individuals in jail.”
The leader of the money laundering organization, DIEGO PINEDA SANCHEZ, of Guadalajara, Mexico, was sentenced last fall to 15 years in federal prison for laundering more than $61 million in drug proceeds. Pineda Sanchez personally negotiated agreements with cartel members in Mexico to launder drug profits in exchange for percentages of the laundered proceeds, keeping the largest percentages for himself and co-defendant CARLOS PARRA-PEDROZA.
Parra-Pedroza, of Guadalajara, Mexico, directed members of the conspiracy to collect drug proceeds from dozens of couriers throughout the U.S., use those proceeds to purchase scrap and fine gold from local U.S. businesses, and then ship the gold to refineries in Florida and California. The refineries, in turn, transmitted the cash value of the gold to Parra-Pedroza and co-conspirators in Mexico. From 2011 to 2014, Parra-Pedroza personally managed the movement of more than $100 million in drug proceeds from the U.S. to cartel members in Mexico who controlled the drug trade on both sides of the U.S.-Mexico border.
Parra-Pedroza was repeatedly heard in undercover recordings boasting about his organization’s connections with the violent cartels. During a June 2013 meeting in which Parra-Pedroza urged an informant to more quickly launder the cartel’s money, Parra-Pedroza told the informant about an incident in which drug dealers punished a man who had lost their money by taking his personal possessions and “chopp[ing] off his fingers.” Parra-Pedroza endorsed this maiming, stating, “[Expletive] had to, even I would’ve agreed.” In another meeting with the same informant and an undercover law enforcement agent who posed as a gold supplier, Parra-Pedroza explained that the couriers who transport cartel money are entrusted to do so because they “leave their families and everyone over there” in Mexico, and cartel members there tell them, “‘If you take off, I will kill your entire family here.’”
Judge Wood in December sentenced Parra-Pedroza to 13 years in federal prison.
Former CEO of Publicly Traded Manufacturer Charged with Fraud for Allegedly Misrepresenting Company’s Financial ConditionRead the Press Release
CHICAGO — The former Chief Executive Officer of a publicly traded engine manufacturer in a northwest suburb of Chicago has been indicted on federal fraud charges for allegedly deceiving investors about the company’s financial performance.
GARY S. WINEMASTER served as CEO and Chairman of the Board of Directors of a Wood Dale-based manufacturing company. He was also the company’s largest shareholder. From 2014 to 2016, Winemaster schemed with the company’s vice president of sales, CRAIG M. DAVIS, its general manager, JAMES F. NEEDHAM, and others to fraudulently inflate – by millions of dollars – the revenue reported by the company to the investing public, according to an indictment returned Thursday in U.S. District Court in Chicago. In doing so, the trio deceived shareholders and other investors about the company’s financial health and performance, the indictment states.
The indictment charges Winemaster, 61, of Mundelein, with one count of securities fraud, ten counts of wire fraud, two counts of making false statements to an auditor, and one count of failing to certify financial reports. Davis, 45, of Batavia, and Needham, 57, of Leavenworth, Kansas, are each charged with one count of securities fraud and ten counts of wire fraud. U.S. Magistrate Judge M. David Weisman scheduled arraignments for July 25, 2019, at 10:00 a.m.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. The U.S. Securities and Exchange Commission, which filed a civil enforcement lawsuit against Winemaster, Davis, and Needham, provided valuable assistance. The government is represented by Assistant U.S. Attorneys Paul Tzur and Heidi Manschreck.
According to the indictment, the defendants schemed to defraud shareholders and other investors in connection with the company’s common stock, which was listed on the Nasdaq Stock Market. The defendants concealed material information about special terms of sales to customers, causing the company’s accounting department to recognize inflated revenue figures for those transactions, the indictment states. Winemaster and Davis also authorized shipments of products to customers who had not agreed to accept delivery, the indictment states. The shipments falsely supported the accounting department’s treatment of the transactions as final sales, thus fraudulently causing the company to book revenue from the deals, the charges allege.
The defendants also arranged additional transactions by the company’s customers that were meant to fraudulently support the company’s accounting for earlier sales, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The maximum sentence for securities fraud is 25 years in prison, while wire fraud and making false statements to an auditor are each punishable by up to 20 years. Failing to certify financial reports is punishable by up to ten years and a fine of up to $1 million. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Convicted Felon Sentenced to More Than 6 Years in Federal Prison for Illegally Possessing Loaded Rifle on Chicago Train PlatformRead the Press Release
CHICAGO — A convicted felon has been sentenced to more than six years in federal prison for illegally possessing a loaded assault rifle on an elevated train platform in Chicago’s Lakeview neighborhood.
JORDAN WATKINS, 31, of Chicago, illegally possessed the gun on the morning of July 29, 2017, at the Chicago Transit Authority’s Belmont Station, which serves multiple elevated train lines. The rifle was strapped across Watkins’s chest underneath his grey sweatshirt. It was loaded and had one live round in the chamber. Watkins was also carrying a messenger bag that contained two 30-round magazines, one of which was loaded with four rounds. After a 911 call reported a man who “has a gun on him and like a really big clip,” multiple Chicago Police officers responded to the station and arrested Watkins on the southbound platform.
Watkins, who was on parole at the time he possessed the rifle, had previously been convicted of multiple felonies and was not legally allowed to possess a firearm. He pleaded guilty last year in the federal case to one count of illegal possession of a firearm by a felon. U.S. District Judge Andrea R. Wood on Wednesday sentenced Watkins to six years and four months in federal prison.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; and Eddie Johnson, Superintendent of the Chicago Police Department. The Illinois Department of Corrections provided valuable assistance.
“By carrying a loaded assault rifle into a CTA station, Watkins committed a serious offense that jeopardized public safety,” Assistant U.S. Attorney Grayson S. Walker argued in the government’s sentencing memorandum.
Holding convicted felons accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, including by prosecuting individuals who illegally possess firearms.
Convicted Felon Charged with Illegally Possessing Loaded Handgun in Old Town Neighborhood of ChicagoRead the Press Release
CHICAGO — A convicted felon has been charged with a federal firearm violation for allegedly illegally possessing a loaded semiautomatic handgun in the Old Town neighborhood on Chicago’s North Side.
GASTON TUCKER, 32, of Chicago, is charged with one count of illegal possession of a firearm by a convicted felon. Tucker illegally possessed the gun on Feb. 17, 2019, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. On July 9, 2019, U.S. Magistrate Judge Maria Valdez ordered Tucker detained in federal custody without bond.
The complaint and detention order were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Eddie Johnson, Superintendent of the Chicago Police Department.
Holding convicted felons accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, including by prosecuting individuals who illegally possess firearms.
According to the complaint, Tucker was a backseat passenger in a sedan that was parked in front of a fire hydrant in the 1300 block of North Sedgwick Street in Chicago. A Chicago Police officer approached the vehicle and obtained identification from the vehicle’s occupants. As the officer walked back to her car to review the identifications, Tucker got out and ran down the street, the complaint states.
As officers began searching the area, security guards from a nearby housing complex reported seeing a man run through the complex and drop an object underneath a dumpster, the complaint states. Officers later searched underneath the dumpster and recovered the handgun, according to the complaint.
Tucker was previously convicted in state court of aggravated battery with a firearm, a felony for which he was on parole at the time of the alleged federal offense.
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 prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Recording Artist R. Kelly Arrested on Federal Child Pornography and Obstruction ChargesRead the Press Release
CHICAGO — Chicago recording artist ROBERT SYLVESTER KELLY, also known as “R. Kelly,” has been arrested on federal child pornography and obstruction charges.
A 13-count indictment returned Thursday in U.S. District Court in Chicago charges Kelly with producing and receiving child pornography, and enticing minors to engage in criminal sexual activity. The charges accuse Kelly of engaging in sex acts with five minors and recording some of the abuse on multiple videos. The indictment also charges Kelly with conspiring to intimidate victims and conceal evidence in an effort to obstruct law enforcement, including an investigation in the 2000s that resulted in his trial in 2008 in Cook County on state child pornography charges.
Kelly, 52, of Chicago, was arrested Thursday night. He is scheduled to appear for an arraignment and detention hearing on Tuesday at 1:00 p.m. before U.S. District Judge Harry D. Leinenweber in Chicago. Kelly is charged with one count of conspiracy to receive child pornography, two counts of receiving child pornography, four counts of producing child pornography, five counts of enticement of a minor to engage in criminal sexual activity, and one count of conspiracy to obstruct justice.
The indictment also charges two former employees of Kelly’s music business: DERREL MCDAVID, 58, of Chicago (one count of conspiracy to receive child pornography, two counts of receiving child pornography, one count of conspiracy to obstruct justice), and MILTON BROWN, also known as “June Brown,” 53, of Chicago (one count of conspiracy to receive child pornography). McDavid is scheduled to make an initial court appearance today at 11:00 a.m. before U.S. Magistrate Judge Young B. Kim in Chicago, while Brown is scheduled to make an initial appearance before Judge Kim on July 19, 2019, at 11:00 a.m.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; James M. Gibbons, Special Agent-in-Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago; and Tara Sullivan, Acting Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. Substantial assistance was provided by the Cook County State’s Attorney’s Office and the Chicago Police Department. Assistant U.S. Attorneys Angel Krull, Abigail L. Peluso and Jeannice W. Appenteng represent the government.
“This indictment demonstrates our office’s commitment to holding individuals such as Kelly accountable for criminal sexual abuse of minors, protecting the victims of such crimes, and punishing those who obstruct law enforcement investigations,” said U.S. Attorney Lausch. “I thank the courageous individuals who provided law enforcement with important information related to these allegations, and I encourage others with helpful information to do the same. Together with our law enforcement partners and with the help of victims and other witnesses, we will continue to vigorously investigate and prosecute individuals who sexually exploit children.”
“Today’s arrest serves as a reminder of HSI’s commitment to protecting the most vulnerable members of our society – our children,” said HSI Special Agent-in-Charge Gibbons. “We will continue to work in partnership with fellow law enforcement agencies and prosecutors to bring those engaged in child exploitation to justice.”
A separate federal indictment was unsealed today in the Eastern District of New York charging Kelly with racketeering for allegedly operating a criminal enterprise that promoted Kelly’s music and recruited women and girls to engage in illegal sexual activity. Kelly will appear for a removal hearing on the New York charges today at 1:45 p.m. before U.S. Magistrate Judge Sheila Finnegan in Chicago.
Kelly is an award-winning recording artist and record producer who has operated various music businesses in Chicago. According to the indictment in the Northern District of Illinois, Kelly met the five victims in the late 1990s. Kelly engaged in sex acts with the victims while they were all under the age of 18, and he created numerous explicit videos with four of them, the indictment states. The charges allege that Kelly and McDavid in 2001 began paying an acquaintance hundreds of thousands of dollars to collect the videos for the purpose of concealing and covering up their existence. When the acquaintance later planned to hold a news conference to publicly announce that he recovered the videos, Kelly, McDavid and others paid him approximately $170,000 in exchange for agreeing to cancel the event, the indictment states.
Kelly and McDavid also agreed to pay one of the minors and another individual for their efforts to return the videos, but only after they took polygraph examinations to confirm they returned all copies in their possession, the charges allege.
The indictment seeks forfeiture of a personal money judgment of approximately $1.55 million.
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.
Producing child pornography carries a mandatory minimum sentence of ten years in prison and a maximum of 20 years. Receiving child pornography and conspiring to receive child pornography are each punishable by a mandatory minimum sentence of five years in prison and a maximum of 20 years. The maximum sentence for enticement of a minor is ten years. Conspiracy to obstruct justice is punishable by up to five years. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation by Robert Sylvester Kelly, you are encouraged to contact HSI’s confidential tip line by calling 1-866-DHS-2-ICE (1-866-347-2423) or by logging on to https://www.ice.gov/webform/hsi-tip-form. The service is available 24 hours a day, seven days a week.
Newly Unsealed Federal Indictment Charges Software Engineer with Theft of Trade SecretsRead the Press Release
CHICAGO — A software engineer at a suburban Chicago locomotive manufacturer stole proprietary information from the company and took it to China, according to an indictment unsealed this week in federal court in Chicago.
XUDONG YAO, also known as “William Yao,” 57, is charged with nine counts of theft of trade secrets. Yao is currently at large. He is believed to be residing in China.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; John C. Demers, Assistant Attorney General for National Security; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The government is represented by Assistant U.S. Attorney Peter M. Flanagan.
According to the indictment, Yao began working for the suburban Chicago manufacturer in August 2014. Within two weeks, Yao downloaded more than 3,000 unique electronic files containing proprietary and trade secret information relating to the system that operates the manufacturer’s locomotives, the indictment states. Over the next six months, Yao downloaded numerous other electronic files containing proprietary and trade secret information, including technical documents and software source code, the indictment states. During that time, Yao allegedly sought, negotiated, and accepted employment with a business in China that provided automotive telematics service systems.
The suburban Chicago manufacturer terminated Yao in February 2015 for reasons unrelated to the alleged theft, which at that time had not been discovered. Shortly thereafter, Yao made copies of the stolen trade secret information, the indictment states. He allegedly traveled to China in July 2015 and began working for the Chinese company.
On Nov. 18, 2015, Yao traveled from China to O’Hare International Airport in Chicago, according to the indictment. At the time, he had in his possession the stolen trade secret information, including nine complete copies of the suburban Chicago company’s control system source code and the systems specifications that explained how the code worked, the indictment states. Yao returned to China at some point thereafter.
The indictment was returned in December 2017 and ordered unsealed Wednesday.
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. Theft of trade secrets is punishable by a maximum sentence of ten years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Newly Unsealed Federal Indictment Charges Software Engineer with Taking Stolen Trade Secrets to ChinaRead the Press Release
A software engineer at a suburban Chicago locomotive manufacturer stole proprietary information from the company and took it to China, according to an indictment unsealed this week in federal court in Chicago.
Xudong Yao, also known as “William Yao,” 57, is charged with nine counts of theft of trade secrets. Yao is currently at large and believed to be residing in China.
The indictment was announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois and Special Agent-in-Charge Jeffrey S. Sallet of the FBI’s Chicago Field Office. The government is represented by Assistant U.S. Attorney Peter M. Flanagan of the Northern District of Illinois.
According to the indictment, Yao began working for the suburban Chicago manufacturer in August 2014. Within two weeks of being hired, Yao downloaded more than 3,000 unique electronic files containing proprietary and trade secret information relating to the system that operates the manufacturer’s locomotives, the indictment states. During the next six months, Yao downloaded numerous other electronic files containing proprietary and trade secret information, including technical documents and software source code, the indictment states. During the time of this illicit downloading of trade secrets, Yao allegedly simultaneously sought, negotiated, and accepted employment with a business in China that provided automotive telematics service systems.
The suburban Chicago manufacturer terminated Yao in February 2015 for reasons unrelated to the alleged theft, which at that time had not been discovered. Shortly thereafter, according to the indictment, Yao made copies of the stolen trade secret information and then traveled to China in July 2015 and began working for the Chinese company.
On Nov. 18, 2015, Yao traveled from China to O’Hare International Airport in Chicago, according to the indictment. At the time, he had in his possession the stolen trade secret information, including nine complete copies of the suburban Chicago company’s control system source code and the systems specifications that explained how the code worked, the indictment states. Yao returned to China at some point thereafter.
The indictment was returned in December 2017 and ordered unsealed Wednesday.
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. Theft of trade secrets is punishable by a maximum sentence of 10 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Chicago Pharmacy Technician Sentenced to a Year in Federal Prison for Stealing Opioids and Selling Them for a ProfitRead the Press Release
CHICAGO — A former technician at a Chicago pharmacy has been sentenced to a year and a day in federal prison for stealing thousands of pills of Hydrocodone and selling them for a profit.
JACQUELINE GREEN worked at Allcare Discount Pharmacy, located in the 2700 block of West North Avenue in Chicago. From October 2015 to December 2017, Green and a co-defendant, ELIZABETH CRUZ, conspired to steal approximately 56,108 pills of Hydrocodone and sell them outside the pharmacy for a profit. Green and Cruz received at least $10,800 in proceeds from the sale of the stolen pills.
Green, 28, of Chicago, pleaded guilty earlier this year to one count of conspiracy to possess a controlled substance with the intent to deliver. U.S. District Judge Ronald A. Guzman imposed the prison sentence Wednesday in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration.
“The opioid epidemic has devastated the lives of countless individuals through addiction and overdose,” Assistant U.S. Attorney Nani M. Gilkerson argued in the government’s sentencing memorandum. “Defendant contributed to this national crisis by helping make opiates available on the street to individuals who otherwise would not and should not have access to them.”
“Pharmacies and their employees are trusted to handle dangerous pharmaceutical medications responsibly,” said DEA Assistant Special Agent-in-Charge Robert Bell. “When pharmacy employees illegally divert potent pain medications for illegitimate purposes, they put individuals and their families at risk of drug dependence and overdoses. The DEA will continue to work closely with the U.S. Attorney’s Office to bring violators to justice.”
The government was represented by Ms. Gilkerson and Assistant U.S. Attorney David Rojas.
Cruz, of Stone Park, pleaded guilty earlier this year to the same charge as Green. Cruz admitted in a plea agreement that she concealed the theft by falsifying the pharmacy’s inventory to make it look like the pills had either not been received from the distributor or had been dispensed to patients. Judge Guzman set Cruz’s sentencing for Sept. 5, 2019, at 2:00 p.m.
Former Director of Operations of Rockford Non-Profit Organization Sentenced to Prison for FraudRead the Press Release
ROCKFORD — The former director of operations of a Rockford non-profit organization was sentenced Tuesday by U.S. District Judge Philip G. Reinhard to 37 months in prison for mail fraud and tax fraud.
LEILANI HILLIS, 60, formerly of Rockford, was also ordered to pay restitution of $632,718.99 on the mail fraud charge and $151,186.91 on the tax fraud charge. Hillis pleaded guilty to the charges in March.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and Tara Sullivan, Acting Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.
According to a written plea agreement, since 2001 Hillis was an employee of a non-profit organization whose mission was to attract, retain and expand jobs in the Rockford area. The organization received funding from private sources and local governments. During her employment, Hillis handled the organization’s payroll, human resource matters and accounting, and oversaw the annual audit. As of 2009, Hillis had signatory authority on the organization’s bank account and access to the organization’s PayPal account. The organization issued employees, including Hillis, a credit card in the employee’s name. From 2009 through April 2018, Hillis used her employee issued credit card to make unauthorized purchases for her personal benefit totaling $632,718.99. Hillis concealed her crime by using the organization’s accounting codes to make it appear the purchases were for the organization’s benefit, and she forged the initials of the organization’s president on the expense reports. Hillis issued and signed checks from the organization’s account to the bank, knowing the payments included money to pay for her unauthorized purchases made with the organization’s credit card.
Hillis also admitted that she did not report as income the money from the organization that she used to pay the organization’s credit card for her unauthorized personal purchases. As a result, for the tax years 2014 to 2017, Hillis failed to pay $151,186.91 in federal income taxes.
Federal Grand Jury Indicts Evanston Man on Robbery and Gun Charges in Connection with North Suburban Gas Station HeistsRead the Press Release
CHICAGO — A federal grand jury in Chicago has indicted an Evanston man on robbery and firearm charges in connection with three violent gas station heists in the north suburbs.
MARIO BANKS JR., 24, is charged with three counts of robbery and three counts of using, carrying, and brandishing a firearm during a crime of violence. The indictment accuses Banks of robbing three gas stations at gunpoint:
- Nov. 4, 2018: Bucky’s Express Mobil, 6400 block of North Cicero Avenue, Lincolnwood.
- Feb. 16, 2019: Shell Oil, 3300 block of Howard Street, Skokie.
- Feb. 19, 2019: Bucky’s Express Mobil, 6400 block of North Cicero Avenue, Lincolnwood.
The indictment was returned June 20, 2019, in federal court in Chicago. Banks has pleaded not guilty to the charges and he remains detained in federal custody. A status hearing is set for Sept. 12, 2019, before U.S. District Judge Virginia M. Kendall.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Demitrous Cook, Chief the Evanston Police Department; Jay Parrott, Chief of the Lincolnwood Police Department; Anthony F. Scarpelli, Chief of the Skokie Police Department; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. The government is represented by Assistant U.S. Attorney Eric S. Pruitt.
The firearm counts each carry a mandatory minimum sentence of five years in prison and a maximum sentence of life, while each robbery count is punishable by up to 20 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
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.
Michigan Boat Owner Arrested for Allegedly Conducting Illegal Charter Operations on Chicago WaterwaysRead the Press Release
CHICAGO — A Michigan man has been arrested on federal criminal charges for allegedly conducting illegal charter boat operations on Chicago waterways.
CHRISTOPHER MIKE GARBOWSKI used a 40-foot powerboat known by the names “Anchorman,” “Sea Hawk” and “Manaje III,” to conduct illegal commercial charter operations on Chicago waterways, including Lake Michigan and the Chicago River, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Garbowski charged money to charter the boat to various groups of passengers, such as bachelorette parties and family celebrations. Garbowski conducted the charter operations during the 2017 and 2018 boating seasons even though the vessel had not been inspected and certified by the U.S. Coast Guard, as required by federal regulations, the complaint states. Garbowski also captained the charters even though he lacked the proper Coast Guard credentials to do so, the charges allege.
Garbowski, also known as “Christopher Michael Garbowski” and “Michael Gunnman,” 33, of Sterling Heights, Mich., is charged with one count of violating an order of the captain of the port. Garbowski was arrested Saturday. He made an initial court appearance Saturday afternoon before U.S. Magistrate Judge Young B. Kim, who ordered Garbowski released on a $10,000 unsecured bond. Garbowski’s next court date was set for July 8, 2019.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Neal R. Marzloff, Special Agent-in-Charge of the Coast Guard Investigative Service, Central Region; and Jerry Costello, Director of the Illinois Department of Natural Resources Conservation Police. The government is represented by Assistant U.S. Attorney Timothy J. Chapman.
“The safety of the boating public is a top priority for the Coast Guard,” said CGIS Special Agent-in-Charge Marzloff. “Illegal charters pose a safety risk to passengers, but also impact the livelihood of licensed mariners that abide by the rules. The Coast Guard Investigative Service (CGIS), in coordination with our partners, is committed to investigating those who knowingly violate maritime laws and regulations.”
According to the complaint, Garbowski advertised his charter business on websites and apps such as Get My Boat and Boatbound. The Coast Guard notified Garbowski about the federal regulations on multiple occasions, including at Monroe Harbor in Chicago on Aug. 19, 2017, when Coast Guard personnel boarded the boat moments before Garbowski was set to begin a five-hour charter for eight female passengers who booked the “Sea Hawk” for $2,400, the complaint states. As the women were walking down the dock to board the boat, Garbowski called one of them on her cell phone and told her to lie to Coast Guard personnel by pretending they were all friends with Garbowski, the complaint states.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charge in the complaint is punishable by a maximum sentence of five years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.