Northern District of Illinois
Press releases recorded for this federal judicial district.
Rockford Man Indicted on Charges of Sex TraffickingRead the Press Release
ROCKFORD — A Rockford man was indicted today by a federal grand jury on charges of sex trafficking.
TRAVIS THOMAS, also known as “Travis Thompson,” “Dontaveous Harper,” and “Dontavious Harper," 28, was charged with sex trafficking and transporting an individual in interstate commerce for the purposes of prostitution.
As alleged in the indictment, Thomas coerced the victim to engage in sex acts from December 2017 to April 2018, and transported the victim from Illinois to Wisconsin and Texas in February 2018 to engage in prostitution.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The Hoffman Estates Police Department assisted in the investigation. The government is represented by Assistant U.S. Attorney Monica V. Mallory.
The sex trafficking count is punishable by a statutory minimum sentence of 15 years in prison, and a maximum of life in prison. Transporting an individual for prostitution is punishable by up to ten years in prison. Transportation of an individual for prostitution through coercion is punishable by up to a maximum of life in prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
North Suburban Man Guilty of Enticing Underage Girls into SexRead the Press Release
CHICAGO — A north suburban man pleaded guilty today to federal criminal charges for enticing underage girls to engage in sex acts with him.
CASEY IRELAND, 36, of Antioch, pleaded guilty 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. Each count carries a mandatory minimum sentence of ten years in prison, and a maximum sentence of life in prison. U.S. District Judge Rebecca R. Pallmeyer set sentencing for June 24, 2019, at 11:30 a.m.
The guilty plea 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, the plea agreement states. 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, the plea agreement states.
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 Home Health Company Owner Convicted for Role in $3 Million Kickback SchemeRead the Press Release
A federal jury found the owner of a now-defunct Chicago, Illinois home health company guilty today for her role in a scheme involving over $3 million in fraudulent claims to Medicare for home health services that were procured through the payment of kickbacks.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John R. Lausch, Jr. of the Northern District of Illinois, Special Agent in Charge Jeffrey S. Sallet of the FBI’s Chicago Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
After a seven-day trial, Jacqueline Tuanqui, 56, of Bartlet, Illinois, was convicted of one count of conspiracy to commit health care fraud, one count of conspiracy to pay and receive kickbacks, seven counts of payment for specific kickbacks and one count of visa fraud. Sentencing has been scheduled for July 1, 2019, before U.S. District Judge Andrea R. Wood of the Northern District of Illinois, who presided over the trial.
According to evidence presented at trial, from 2008 to 2015, Tunaqui paid kickbacks in return for the referral of Medicare beneficiaries to Hexagram Home Health Care (Hexagram), a home health company that operated in the Chicago metropolitan area between 2008 and 2016. The evidence established that Tuanqui and her co-conspirators billed Medicare $12 million, at least $3 million of which was fraudulent. Trial evidence included the testimony of four individuals who were charged and pleaded guilty, including Hexagram’s former general manager, director of nursing and two patient recruiters. The government’s witnesses also included four other former employees who admitted to facilitating kickback payments and forging patient files to advance the conspiracies.
This case was investigated by the FBI and HHS-OIG with the assistance of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Northern District of Illionis. The case was prosecuted by Trial Attorneys Leslie Garthwaite and Daniel Griffin of the Criminal Division’s Fraud Section.
10 Defendants Charged in Federal Drug and Gun Investigation Centered on West Side of ChicagoRead the Press Release
CHICAGO — Ten individuals are facing criminal charges as part of a federal drug and gun investigation in Chicago.
During the multi-year investigation, law enforcement seized approximately 13 pounds of suspected methamphetamines, a half-kilogram of suspected heroin, approximately 13,000 pills of suspected ecstasy, and 18 firearms. Much of the alleged drug trafficking occurred in the East Garfield Park neighborhood on the West Side of Chicago.
Many of the defendants were arrested Thursday, and detention hearings are being held this week in U.S. District Court in Chicago.
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; and Eddie Johnson, Superintendent of the Chicago Police Department. The Illinois State Police provided valuable assistance. Assistant U.S. Attorneys Katie M. Durick, William Dunne and John Mitchell represent the government.
Indictments and criminal complaints unsealed in federal court charge ten defendants with drug or gun offenses. GREGORY HARRIS, 32, of Dolton, is suspected of supplying ecstasy and heroin to ERIC JONES, 44, of Posen, according to the complaint against Jones. Jones sold narcotics on three occasions earlier this year to an individual who, unbeknownst to Jones, was cooperating with law enforcement, the complaint states. Jones was charged with distribution of a controlled substance.
Law enforcement last week carried out a court-authorized search of Harris’s residence and discovered a loaded handgun. Harris was previously convicted of several felonies and was not lawfully allowed to possess a firearm. Harris was charged with one count of illegal possession of a firearm by a convicted felon. During the search, law enforcement also discovered approximately 13 pounds of suspected methamphetamines packaged in cellophane-wrapped, heat-sealed baggies, as well as a quarter-kilogram of suspected heroin, and approximately 10,000 pills of suspected ecstasy.
Three other convicted felons were charged with illegal possession of a firearm: JHALEYL LOTT, 28, of Chicago; DARIAN TAYLOR, 32, of Melrose Park; and TYSHAWN HOLLINS, 21, of Chicago. Taylor and Hollins are also charged with drug offenses for allegedly distributing narcotics.
Five other defendants are charged with various narcotics offenses as part of the investigation: CURTIS SHEPPARD, 21, of Chicago; MICHAEL WARD, 38, of Chicago; DIONETE DOTSON, 28, of North Riverside; KYERRE HENDERSON, 28, of Chicago; and CARL DANIELS, 23, of Chicago.
The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Chicago Man Arrested for Theft from Sycamore BankRead the Press Release
ROCKFORD — A Chicago man was arrested Friday after being indicted on charges of bank theft.
BRANDON MOORE, 29, was indicted by a federal grand jury in Rockford on March 19, 2019. According to the indictment, on June 28, 2018, Moore stole more than $1,000 belonging to the Heartland Bank and Trust in Sycamore. Moore has been in custody since his arrest and was scheduled to appear at 2:00 p.m. today before U.S. Magistrate Judge Iain D. Johnston.
The arrest 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 Federal Bureau of Investigation; and Jim Winters, Chief of the Sycamore Police Department. The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
The charge of bank theft carries a maximum sentence of ten years’ imprisonment, a term of supervised release of up to three years following imprisonment, and a fine of up to $250,000 or twice the gross gain or gross loss resulting from that offense, whichever is greater, plus full restitution. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
City of Chicago Alderman Pleads Guilty to Federal Fraud Charge for Using Charitable Funds to Pay Personal ExpensesRead the Press Release
CHICAGO — City of Chicago Alderman WILLIE B. COCHRAN pleaded guilty today to a federal fraud charge for pocketing money from a charitable fund intended to help families and children in his South Side ward.
Cochran, 66, of Chicago, pleaded guilty to one count of wire fraud. The conviction is punishable by up to 20 years in prison. U.S. District Judge Jorge L. Alonso set sentencing for June 20, 2019, at 2:00 p.m.
The guilty plea 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 Federal Bureau of Investigation. The FBI initiated the investigation after receiving information from the former City of Chicago Legislative Inspector General’s Office, which was headed at that time by Faisal Khan. The government is represented by Assistant U.S. Attorneys Heather McShain and Christopher Stetler.
While representing the 20th Ward in the Chicago City Council, Cochran operated the “20th Ward Activities Fund,” which he purported to use for charitable endeavors to help families and children living in the ward. Cochran controlled a bank account connected to the fund. When soliciting donations to the fund, Cochran falsely represented that all contributions would be used for charitable events, including a back-to-school picnic, a Valentine’s Day party for senior citizens, and events during the holiday season in November and December.
Cochran admitted in a plea agreement that he used some of the contribution money for his own personal use, including paying his daughter’s college tuition, withdrawing cash at casino ATM’s, and purchasing items for his home. From January 2010 to April 2014, Cochran pocketed approximately $14,285 from the fund and converted the money to his own personal use, the plea agreement states.
Will County Man Sentenced to More Than 4 Years in Federal Prison for Defrauding His Elderly Mother-In-Law out of More Than $175,000Read the Press Release
CHICAGO — A federal judge has sentenced a Will County man to more than four years in prison for stealing his elderly mother-in-law’s identity to misappropriate more than $175,000 from her.
JOHN V. KNAPP, 66, of Romeoville, pleaded guilty last year to one count of wire fraud and one count of aggravated identity theft. U.S. District Judge Sharon Johnson Coleman on Friday sentenced Knapp to four and a half years in prison and ordered him to pay restitution of $177,538.38.
Knapp admitted in a plea agreement that he misappropriated funds from his mother-in-law in 2014 and 2015. At the time, his mother-in-law was in her mid-90s. At sentencing, the mother-in-law submitted a statement to the Court detailing the impact of Knapp’s conduct, which included stealing money that the mother-in-law’s late husband had earned to take care of her.
The sentence 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 was represented by Assistant U.S. Attorneys Edward G. Kohler and Rebekah Holman.
Evidence in the case revealed that Knapp on approximately 100 occasions misappropriated funds from his mother-in-law’s investment and bank accounts. Knapp assumed her identity during four phone calls to her investment company to fraudulently authorize $129,500 in withdrawals from her investments. During the calls, Knapp fraudulently provided his mother-in-law’s personal identifying information, which at times included her address, date of birth, telephone number, investment account number, and last four digits of her Social Security number. As soon as the funds were deposited in his mother-in-law’s bank account, Knapp fraudulently caused checks to be made payable to him out of the account.
During one of the fraudulent phone calls, Knapp’s mother-in-law was residing in a hospital. At the time of two other calls, she was residing at a rehabilitation center.
North Suburban Man Sentenced to 5 Years in Federal Prison for Operating Ponzi Scheme That Swindled Elderly InvestorsRead the Press Release
CHICAGO — A north suburban man was sentenced today to five years in federal prison for swindling more than $1.4 million from several clients, some of whom were elderly and had pledged their retirement savings.
RICHARD K. BOOY, the founder of Principal Financial Strategies LLC and Safe Financial Strategies Inc., used the promise of no-risk investments and guaranteed returns to persuade at least 15 clients to hand over more than $1.4 million. Although Booy claimed to be affiliated with the more widely known investment firm Principal Financial Group, he had no actual relationship with the firm and was not authorized to invest client funds with it. Instead of investing the funds as promised to clients, Booy used the victims’ money to cover personal expenses, including health insurance, fitness club membership, and purchases at Best Buy and DirecTV, and to make Ponzi-type payments to earlier investors.
Booy, 50, of Vernon Hills, pleaded guilty last year to one count of mail fraud. U.S. District Judge Gary Feinerman imposed the 60-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; Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration; and Tanya Solov, Director of the Illinois Securities Department of the Illinois Secretary of State.
“Defendant committed much of this egregious conduct while sitting in his victims’ homes and in their places of worship,” Assistant U.S. Attorney Matthew S. Ebert argued in the government’s sentencing memorandum. “While face-to-face repeatedly with his victims, Booy brazenly made his pitch knowing that his actual purpose was to obtain and then devour his victims’ savings, pensions, and income.”
Booy carried out his fraud scheme from 2012 to 2016. He continued his scheme even after Principal Financial Group obtained a temporary restraining order against him that led to a court-authorized seizure of his computer and other evidence from Booy’s home.
Most of Booy’s victims were elderly, and some furnished him with their entire life savings. The victims included a Chicago pastor, a retired painter, a retired government worker, and an individual who suffers from Parkinson’s Disease.
Owner of Debt Collection Service Charged for Corruptly Providing Benefits to Obtain Business from Cook County Circuit Court Clerk’s OfficeRead the Press Release
CHICAGO — The owner of a debt collection company spent tens of thousands of dollars in an effort to corruptly influence and obtain business from court clerks in Florida and Illinois, including the Cook County Circuit Court Clerk, according to a federal indictment returned in Chicago.
DONALD DONAGHER, JR., 67, of Mechanicsburg, Pa., and Palm Beach Gardens, Fla., was the owner and Chief Executive Officer of Harrisburg, Pa.-based PENN CREDIT CORPORATION. From 2009 to 2016, Donagher and Penn Credit provided money and services to benefit the court clerks and related individuals and entities, corruptly seeking favorable treatment in the awarding of the courts’ debt collection work, the indictment states. The efforts included payments to certain clerks’ campaign committees, donations to charities supported by certain clerks, financial sponsorship of events hosted by certain clerks, and free or discounted “robocalls” made by Penn Credit on behalf of certain clerks’ campaigns, according to the indictment.
The indictment was returned Thursday in U.S. District Court in Chicago. It charges Donagher and Penn Credit with one count of conspiracy to commit federal program bribery, and five counts of federal program bribery. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Patrick M. Blanchard, Cook County Inspector General. The government is represented by Assistant U.S. Attorneys Heather K. McShain and Ankur Srivastava.
According to the charges, Donagher in June 2011 caused Penn Credit to pay $5,000 to a scholarship fund named for the Cook County Circuit Court Clerk. Later that summer, Penn Credit began collecting debt for the Clerk’s Office, the indictment states. On Aug. 19, 2011 – less than three weeks after Penn Credit began its work for Cook County – Donagher sent an email to Penn Credit employees and an Illinois lobbyist, advising that Donagher had promised the Cook County Clerk “10k of ‘early’ money,” the indictment states. The following month, Donagher caused a $10,000 contribution to be made in his name “towards the fundraising efforts of Contributions to Friends of [the Cook County Circuit Court Clerk],” the indictment states. The indictment further states that, several months later, Penn Credit made hundreds of thousands of phone calls on behalf of the Cook County Circuit Court Clerk without invoicing or receiving payment from the Clerk’s campaign.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The conspiracy charge is punishable by up to five years in prison, while the maximum sentence for federal program bribery is ten years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Creator of Fraudulent Chicago-Area Pharmacy Sentenced to Five Years in Prison for $1.6 Million Fraud SchemeRead the Press Release
The creator of a fraudulent Chicago-area pharmacy has been sentenced to 60 months in federal prison for his role in a $1.6 million health care fraud scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John R. Lausch Jr. of the Northern District of Illinois, Special Agent in Charge Jeffrey S. Sallet of the FBI’s Chicago Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
James Calhoun, 74, of Des Plaines, Illinois, was sentenced by U.S. District Judge John Z. Lee of the Northern District of Illinois. Judge Lee also ordered Calhoun to pay $1.6 million in restitution. Calhoun pleaded guilty in September 2018 to one count of conspiracy to commit health care fraud.
As part of his guilty plea, Calhoun admitted that he defrauded Medicare Part D of $1.6 million through an elaborate scheme in which he created a fictitious pharmacy on paper called “Cal’s Pharmacy” and used it to process hundreds of prescription claims for drugs that were never dispensed. For most of its existence, the pharmacy had no physical location or inventory, he admitted. Calhoun further admitted that he enrolled himself as a beneficiary in a Part D program and, from around January 2012 continuing through at least May 2015, Calhoun went to doctors’ appointments to try to obtain prescriptions for drugs that he would then pretend to fill at Cal’s Pharmacy, including and most often for the drug Arixtra, an expensive daily injection. Calhoun also admitted that acting as Cal’s Pharmacy’s owner, a fact that was concealed through the use of a straw owner, Calhoun collected all of the Part D reimbursement payments made to Cal’s Pharmacy. In addition to pretending to fill prescriptions for himself, Calhoun admitted that he fabricated prescription claims for three other people, including his codefendant and wife, Betty Calhoun. Calhoun also admitted that later on in the scheme, when Medicare started to deny the prescription claims, Calhoun appealed the denial and knowingly created and submitted to Medicare false and fabricated checks as part of his appeal, including to an administrative law judge, claiming they showed his payment for Arixtra prescriptions from Cal’s Pharmacy.
The total loss to Medicare was $1.6 million, Calhoun admitted.
Betty Calhoun pleaded guilty to one count of health care false statements in November 2018 and was sentenced to probation.
This case was investigated by the FBI and HHS-OIG. Trial Attorney Leslie S. Garthwaite of the Criminal Division’s Fraud Section prosecuted the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force, 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, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Federal Jury Convicts Former Chicago Police Officer of Participating in Robbery and Extortion CrewRead the Press Release
CHICAGO — A federal jury has convicted a former Chicago Police Department sergeant of participating in a robbery and extortion crew that targeted suspected drug dealers.
The jury in U.S. District Court in Chicago on Monday convicted EDDIE C. HICKS, also known as “David Rose,” 70, on all eight counts against him, including conspiracy to commit racketeering; drug conspiracy; possession of a controlled substance with intent to distribute; carrying a firearm in furtherance of a drug trafficking offense and crime of violence; theft of government funds; and failure to appear for a judicial proceeding. The conviction is punishable by up to life in prison. U.S. District Judge Joan Humphrey Lefkow did not immediately schedule sentencing. A status hearing is set for April 10, 2019.
The conviction 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 Federal Bureau of Investigation. Valuable assistance was provided by the U.S. Attorney’s Office in the Eastern District of Michigan, U.S. Marshals Service, Detroit, Mich., Police Department, Chicago Police Department, Cook County Sheriff’s Police Department, Bolingbrook Police Department, and Alsip Police Department.
The government is represented by Assistant U.S. Attorneys Morris Pasqual and Grayson Walker.
Hicks served as a Chicago Police officer from 1970 to 2000, ultimately attaining the rank of sergeant. In the 1990s, he was assigned to CPD’s Narcotics Section. Evidence at trial revealed that for nearly a decade Hicks and three other law enforcement personnel participated in a robbery ring that targeted suspected drug dealers under the guise of legitimate police investigations. The four-person crew staged phony drug raids and automobile stops of suspected dealers, threatened them with arrest, then kept the drugs, cash or weapons they discovered. From the early 1990s to 2001, the scheme netted the crew thousands of dollars in cash, multi-kilogram quantities of cocaine, hundreds of pounds of marijuana, and several firearms.
The three other crew members were previously convicted: LARRY HARGROVE, a former Chicago Police sergeant, was sentenced to 13 years in prison; MATTHEW L. MORAN, a former investigator for the State of Illinois Department of Professional Regulation, was sentenced to seven years and ten months in prison; and LAWRENCE W. KNITTER, a former CPD electrical mechanic, was sentenced to nine years and four months in prison.
The failure-to-appear charge against Hicks stemmed from his flight on the eve of trial when it was originally scheduled in June 2003. Hicks was free on bond when he failed to appear in court. He remained a fugitive until his arrest in Detroit, Mich., in September 2017.
35 Defendants Charged in Joint Federal and State Investigation into Heroin and Fentanyl Delivery Service in Chicago AreaRead the Press Release
CHICAGO — Thirty-five individuals are facing criminal charges as part of a joint federal and state investigation into heroin and fentanyl trafficking in Chicago.
During the multi-year investigation, dubbed “Operation Road Rage,” law enforcement seized a kilogram of heroin, most of which contained fentanyl, approximately $100,000 in cash, five firearms, and four vehicles. Much of the alleged drug trafficking occurred in the West Garfield Park neighborhood on the West Side of Chicago. Many of the defendants allegedly distributed heroin and fentanyl-laced heroin to customers in the Chicago area, with drivers dispatched to make deliveries after customers placed orders on a telephone hotline.
The investigation was jointly conducted by the Organized Crime Drug Enforcement Task Force (OCDETF) and the Chicago High Intensity Drug Trafficking Task Force (HIDTA). The task forces partner with federal, state and local law enforcement agencies to identify, disrupt and dismantle the most serious drug trafficking organizations.
Criminal complaints unsealed in U.S. District Court in Chicago charge 22 defendants with federal drug offenses. Many of the federal defendants were arrested Thursday, and detention hearings will be held this week in federal court in Chicago. Thirteen other defendants were charged in state complaints, and many of them were also arrested Thursday. The state defendants have begun making initial appearances in Cook County Criminal Court.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kimberly M. Foxx, Cook County State’s Attorney; Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; Nicholas Roti, Director of HIDTA; and Eddie Johnson, Superintendent of the Chicago Police Department. Valuable assistance was provided by the U.S. Marshals Service. Assistant U.S. Attorneys Misty Wright and Shy Jackson represent the government.
Fourteen federal defendants are charged in U.S.A. v. Robinson, et al (19 CR 201). The complaint describes a drug trafficking organization in which heroin hotline operators and dispatchers often referred to themselves as “Sean.” Customers intending to purchase heroin and fentanyl-laced heroin called a designated telephone number operated by members of the “Sean” drug trafficking operation, the complaint states. The dispatchers then sent the organization’s many distributors to various West Side locations to conduct the drug deals, the complaint states. Undercover law enforcement officers disrupted the Sean organization by conducting approximately 50 narcotics purchases after calling the Sean phones and meeting with the distributors, according to the complaint. Charged with drug conspiracy are four individuals who, at various times, were responsible for dispatching the distributors: THOMAS CLEVELAND, 27, of Chicago, FREDERICK GILES, 26, of Chicago, AMELIA SMITH, 30, of Country Club Hills, and MICHAEL ROBINSON, 24, of Country Club Hills; as well as ten alleged distributors: WILLIE BLAIR, 32, of Chicago, LAWRENCE CLARK, 26, of Chicago, CARDELL COLEMAN, 21, of Chicago, JOLISA GAINES, 29, of Chicago, D’ANGELO GILES, 21, of Chicago, TYRELL KELLY, 27 of Chicago, KEITH MANNING, 27, of Bellwood, DEVONTE SMITH, 26, of Chicago, KAJUAN SMITH, 30, of Chicago, and DESMOND WHITE, 25, of Chicago.
Two federal defendants are charged in U.S.A. v. Chose, et al (19 CR 202). Charged with drug conspiracy are ANNA T. CHOSE, 54, of Morris, and ROXANNE E. CONN, 56, of Wilmington. The charges accuse the pair of being regular customers of the Sean drug trafficking organization. The complaint describes three instances in the summer of 2018 when Chose and Conn purchased distribution quantities of narcotics from Robinson, and alleges that they regularly purchased narcotics from the Sean drug trafficking organization.
Clark and three other federal defendants are charged in U.S.A. v. Pitts, et al (19 CR 204). Charged with drug conspiracy and distribution offenses are MICHAEL PITTS, 33, of Bellwood, TEVIN FORD, 27, of Chicago, and JHAMAAL HANEY, 26, of Chicago. According to the complaint, the four defendants conspired to distribute approximately 94.8 grams of fentanyl-laced heroin to an undercover law enforcement officer from August 2017 to March 2018. The charges also hold Pitts personally responsible for distributing a total of approximately 386.5 grams of heroin and fentanyl-laced heroin to undercover officers from August 2017 to May 2018. One of Pitts’ customers suffered a drug overdose in May 2018 after Pitts distributed 1.13 grams of fentanyl-laced heroin to him, the complaint states. The man appeared to be unconscious when Pitts pulled him out of a vehicle and left him at a nearby bus stop, the complaint states. Chicago Fire Department personnel arrived on the scene and worked to successfully revive the man, the complaint states.
Three other federal defendants are charged with narcotics offenses as part of the investigation: JUSTIN BANASIAK, 35, of Chicago; JACLYN ROWLEY, 31, of Michigan City, Ind.; and MATTHEW ROSOLIK, 32, of Trail Creek, Ind.
The charges in the complaints carry maximum penalties of between 20 years and life imprisonment. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Former Illinois Attorney Pleads Guilty to Tax Evasion in Connection with Legal Fees Stemming from Multi-Billion Dollar Tobacco LitigationRead the Press Release
CHICAGO — Former Illinois attorney EDWARD R. VRDOLYAK pleaded guilty today to federal tax evasion for assisting another lawyer in evading taxes on income received from a multi-billion dollar legal settlement with tobacco companies.
Vrdolyak, 81, of Chicago, pleaded guilty to one count of tax evasion. The charge is punishable by up to five years in prison. U.S. District Judge Robert M. Dow, Jr., set sentencing for July 23, 2019.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; 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 Amarjeet S. Bhachu and Special Assistant U.S. Attorney Michael T. Donovan.
Vrdolyak admitted in a plea agreement that he assisted another lawyer, co-defendant DANIEL P. SOSO, in evading federal income taxes owed by Soso for the calendar years 1993 through 2004, and 2008 through 2013. The income was derived from attorney fees received in connection with a $9.2 billion settlement between the State of Illinois and a number of tobacco companies in the 1990s. At the time of the settlement, Vrdolyak and Soso were licensed Illinois attorneys. The pair collected legal fees from the settlement pursuant to agreements with one of the attorneys that represented the State of Illinois. Pursuant to these agreements, Vrdolyak made payments to Soso between 2000 and 2005 of approximately $1,925,830, representing Soso’s agreed-upon share of the fees of the tobacco litigation.
In August 2005, the IRS served a notice of levy on The Law Offices of Edward R. Vrdolyak, which required the turnover of all salary, wages and other amounts owed to Soso. Over the next two years, Vrdolyak received approximately $262,854 due Soso, but he concealed receipt of these funds from the IRS, knowing such concealment would assist Soso in evading the payment of taxes and assessments due the IRS, the plea agreement states. Vrdolyak later caused approximately $170,242 to be paid to Soso instead of remitting these funds to the IRS.
Soso, 67, of Alsip, pleaded guilty last month to one count of tax evasion. Judge Dow set Soso’s sentencing for June 25, 2019.
Former Director of Operations of a Rockford Non-Profit Organization Pleads Guilty to FraudRead the Press Release
ROCKFORD — LEILANI HILLIS, 60, of Rockford, the former director of operations of a Rockford non-profit organization, pleaded guilty Monday before U.S. District Judge Frederick J. Kapala to one count of mail fraud and one count of tax fraud.
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.
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 through 2017, Hillis failed to pay $151,186.91 in federal income taxes.
HILLIS faces a maximum sentence of 20 years’ imprisonment for mail fraud, and a maximum sentence of three years for tax fraud, while each charge also carries a fine of up to $250,000 or twice the gross gain or gross loss resulting from that offense, whichever is greater, plus full restitution. The actual sentence will be determined by the United States District Court, guided by the Sentencing Guidelines. Sentencing for Hillis is set for June 27, 2019, at 9:00 a.m., before U.S. District Judge Philip G. Reinhard.
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 Federal Bureau of Investigation; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Federal Charges Allege Corruption Schemes by South Suburban Harvey Officials and AssociatesRead the Press Release
CHICAGO — Six defendants have been charged as part of an ongoing federal investigation into corruption schemes allegedly carried out by city of Harvey officials or their associates. Among the defendants are two cousins with high-ranking relatives in Harvey government who allegedly extorted cash from a strip club owner, and two Harvey police officers who allegedly falsified a police report to protect acquaintances from facing firearm charges. Federal law enforcement today executed court-authorized search warrants at two locations in Harvey.
Several of the defendants were arrested today and are scheduled to make initial court appearances today at 2:00 p.m. before U.S. Magistrate Judge Maria Valdez in Chicago.
The charges 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; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; Brad Geary, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; and Thomas J. Dart, Cook County Sheriff. The Harvey Police Department is cooperating in the investigation. The government is represented by Assistant U.S. Attorneys Sean J.B. Franzblau, Grayson S. Walker and Brian P. Netols.
Criminal complaints unsealed today in federal court in Chicago allege three separate corruption schemes:
U.S. v. Kellogg, et al, 19 CR 192
ROMMELL KELLOGG, 66, of Harvey, and COREY JOHNSON, 63, of Harvey, are charged with conspiracy to commit extortion. Kellogg and Johnson are cousins with high-ranking relatives in Harvey government, the complaint states. From 2012 to 2016, Kellogg and Johnson conspired to regularly extort payments from a Harvey strip club owner based on threats that the city would shut down the business if the payments were not made, the complaint states. The charges allege that in exchange for the payments, city officials allowed the business to operate, knowing that acts of prostitution were occurring onsite.
U.S. v. Muhammad, et al, 19 CR 190
DERRICK MUHAMMAD, 70, of South Holland, and DERRICK MOORE, 48, of Blue Island, are charged with obstruction of justice and conspiracy to obstruct justice. Muhammad and Moore are Harvey Police Department officers who allegedly worked together to falsify a police report to protect two acquaintances from possibly facing firearm charges. The acquaintances – a father and son – were convicted felons who could not legally possess a firearm, the complaint states.
In March 2018, the operator of a Harvey-based towing company notified Muhammad that a handgun was discovered in a Chrysler 300 sedan that had been reported stolen and ordered towed by police in nearby Calumet City, the complaint states. The sedan was used by the father and had recently been driven by the son. Muhammad and Moore schemed to conceal the firearm’s connection to the pair, with Moore preparing and filing a police report stating that he discovered the weapon in some brush near the towing company “while on patrol,” the charges allege.
U.S. v. Luster, et al, 19 CR 191
DONALD LUSTER, 55, of Dixmoor, and WILL WILEY, 56, of Harvey, are charged with conspiracy to commit federal program bribery. Luster worked as a private consultant to the city of Harvey. In November 2017, he agreed with Wiley to solicit bribe payments from an entrepreneur who owned a towing company in a nearby suburb, the complaint states. In exchange for the bribes, Luster would provide the entrepreneur with a lease to a parcel of land owned by the city of Harvey, the complaint states.
Unbeknownst to Luster and Wiley, the entrepreneur was cooperating with law enforcement and had agreed to make consensual recordings of conversations and meetings with the pair, the complaint states. In a recorded meeting on Dec. 3, 2017, the entrepreneur paid a cash bribe of $5,000 to Wiley, the complaint states. Shortly thereafter, an employee of the city of Harvey provided the entrepreneur access to the parcel of land. On Jan. 5, 2018, the entrepreneur delivered a $7,000 cash bribe to Luster, after which Luster and the city employee advised that the entrepreneur could continue to access and use the parcel, the complaint states. An official lease was never provided to the entrepreneur, the complaint states.
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The public is reminded that charges 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. The conspiracy counts are each punishable by up to five years in prison, while the obstruction charge is punishable by up to 20 years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Anyone wishing to notify law enforcement of suspected corruption in Harvey is encouraged to email the FBI at [email protected].
Chicago Man Convicted of Sex Trafficking a 16-Year-Old Girl Who Was Allegedly Murdered by a CustomerRead the Press Release
CHICAGO — A federal jury today convicted a Chicago man on sex trafficking charges for arranging a commercial sex encounter for a 16-year-old girl that ended in the child’s murder in a south suburban garage.
JOSEPH HAZLEY, 35, was convicted on one count of conspiracy to engage in sex trafficking of a minor, one count of sex trafficking of a minor, and four counts of transporting a person across state lines for the purposes of prostitution.
The conviction is punishable by a maximum sentence of life in prison. U.S. District Judge Sharon Johnson Coleman set sentencing for June 4, 2019.
The conviction 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 Federal Bureau of Investigation; and Eddie Johnson, Chicago Police Superintendent. Substantial assistance was provided by the South Suburban Major Crimes Task Force, Cook County Sheriff’s Office, Cook County State’s Attorney’s Office, and Markham Police Department. The government is represented by Assistant U.S. Attorneys Christopher Parente and Kelly Greening.
Evidence at trial revealed that Hazley posted the girl’s information in commercial sex advertisements on Backpage.com, and arranged multiple meetings for her to engage in prostitution. Hazley drove the girl to several meetings in the Chicago area in December 2016.
One of the meetings occurred in the early morning hours of Christmas Eve, after a customer had responded to Hazley’s posting. Hazley drove the girl to Markham and waited in his car a few yards from the garage while she met with the customer. During the encounter, the customer allegedly murdered the girl.
The suspected customer was subsequently arrested by the Chicago Police Department and charged with murder in Cook County Criminal Court.
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, 7 days a week.
Rockford Man Charged with Illegal Possesson of FirearmsRead the Press Release
ROCKFORD — ALVIN J. MALONE, 31, of Rockford, was indicted today by a federal grand jury in Rockford for illegally possessing firearms as a convicted felon.
The indictment alleges that on Feb. 19, 2019, Malone illegally possessed a loaded 12-gauge shotgun, a .22-caliber rifle, and a loaded .45 semi-automatic pistol.
Malone has been in custody since his arrest on Feb. 19, 2019. He will appear for arraignment on March 6, 2019, at 11:00 a.m., before U.S. Magistrate Judge Iain D. Johnston in Rockford.
The indicted was 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 Rockford Police Department assisted in the investigation. The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
The charge of illegally possessing a firearm carries a maximum sentence of ten years in prison, to be followed by up to three years of supervised release, and a fine of up to $250,000. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Poplar Grove Man Sentenced to 21 Months in Prison for Theft of More Than $160,000 in Social Security BenefitsRead the Press Release
ROCKFORD — A Poplar Grove man was sentenced today by U.S. District Judge Frederick J. Kapala for theft of government funds.
JONATHAN GORZELA, 56, was sentenced to 21 months in federal prison, to be followed by three years of supervised release. Gorzela, who pleaded guilty to the charge on Oct. 12, 2018, was also ordered to pay restitution in the amount of $160,858.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Tracey Thanos, Special Agent-in-Charge of the Social Security Administration’s Office of Inspector General in Chicago. The Illinois Department of Rehabilitative Services assisted in the investigation. The government was represented by Assistant U.S. Attorney Margaret J. Schneider.
According to a written plea agreement, between April 1991 and December 2015, Gorzela received disability benefits from funds administered by the Social Security Administration that he was not entitled to receive. Gorzela began receiving Social Security Income disability benefits in July 1984 after he sustained a gunshot wound to his back that left him a paraplegic. Gorzela was required to immediately report to the SSA any changes in income, family size or composition, family income, benefits from other sources, improvement in medical condition, or return to work. In multiple documents submitted to the SSA, Gorzela acknowledged he understood his responsibility to report any such changes to the SSA. Gorzela married in April 1991 and from that date through October 2015 did not disclose his marriage, nor the fact that his spouse was employed throughout the time of the marriage, or his spouse’s income.
In February 1998, Gorzela used false documentation to obtain a second Social Security number under another name. From 2000 through 2014 Gorzela obtained various jobs using the second social security number and the other name. None of the income obtained from that employment was reported to the SSA. As a result of Gorzela’s failure to report his marriage, his wife’s income, and the income he earned using his second identity to the SSA, Gorzela was overpaid approximately $160,858 in SSI disability benefits.
Gorzela also used his second identity to falsely obtain payment from the Illinois Dept. of Rehabilitative Services for the use of a paid personal assistant for which he qualified due to his injury. Between April 2006 and June 2008, Gorzela billed the IDRS approximately $28,566 for services purportedly provided to him under his alias identity. In addition, Gorzela billed the IDRS for services purportedly provided to the defendant by his son during the time periods that his son was incarcerated and during periods that Gorzela was working full time. Those billings resulted in the IDRS paying the defendant’s son approximately $21,382 for services that were not performed. In total, Gorzela caused the IDRS to overpay $49,948 for services that were not performed.
Businessman Convicted of Stealing Employer’s Trade Secrets While Planning New Job with Chinese RivalRead the Press Release
CHICAGO — A federal jury has convicted a 30-year employee of a McHenry County manufacturing firm of stealing trade secret information while planning to move to China to work for a rival company.
The jury in U.S. District Court in Chicago on Monday convicted ROBERT O’ROURKE, 59, of Lake Geneva, Wisc., on seven counts of theft of trade secrets. Each count is punishable by up to ten years in prison. U.S. District Judge Andrea R. Wood set sentencing for June 3, 2019.
The conviction 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 Federal Bureau of Investigation. The government is represented by Assistant U.S. Attorneys Shoba Pillay and Christopher V. Parente.
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, he began several months of negotiations to take a similar job with a rival firm in Jiangsu, China, eventually accepting the position of Vice President.
Evidence at trial revealed that in September 2015, while still employed with 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.
Chicago Investment Manager Convicted on Federal Fraud Charges for Swindling $10 Million from Clients and LendersRead the Press Release
CHICAGO — A federal jury today convicted a Chicago investment manager on fraud charges for swindling more than $10 million from clients and lenders.
SHAWN BALDWIN, who owned and controlled various investment firms in Chicago, exaggerated his financial success and professional connections to fraudulently obtain more than $10 million from at least 15 investors and lenders. Baldwin falsely claimed that their funds would be invested in stocks and other investment products, when in reality he spent the money for his own personal benefit. Baldwin’s fraud scheme began in 2006 and continued until 2017.
The jury in U.S. District Court in Chicago convicted Baldwin, 53, of Olympia Fields, on seven counts of wire fraud. U.S. District Judge John Robert Blakey set sentencing for July 9, 2019.
The conviction 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 Federal Bureau of Investigation. The government is represented by Assistant U.S. Attorneys Matthew Getter, Heidi Manschreck and Michelle Petersen.
According to evidence presented at trial, Baldwin obtained funds from individual investors, as well as from corporate lenders who lent him money for use in business and personal dealings. Baldwin claimed that compliance officers and professional advisors were affiliated with his firms, when no such relationships actually existed.
Baldwin also deceived investors and lenders by misrepresenting and minimizing the serious disciplinary actions taken against him by regulators. The regulatory actions included the revocation of his certifications with the Financial Industry Regulatory Authority in 2009, and a permanent prohibition from offering securities sales or investment advice, which the State of Illinois imposed in 2013.
Evidence at trial further revealed that Baldwin attempted to conceal the fraud scheme by furnishing victims with bogus account statements that misrepresented the value of their funds. He also lulled his victims by falsely maintaining that he was developing lucrative business deals and new contacts that would lead to profits from initial public stock offerings. In reality, Baldwin could not pay back investors because he had lost or spent their money.
Each count of wire fraud is punishable by up to 20 years in prison. The Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Rockford Man Pleads Guilty to Illegally Possessing a Firearm and AmmunitionRead the Press Release
ROCKFORD — A Rockford man pleaded guilty in federal court today before U.S. District Judge Frederick J. Kapala to illegally possessing a firearm and ammunition as a convicted felon.
AUSTIN A. RICHARDSON, 25, admitted that on Sept. 20, 2017, he possessed a Taurus 9mm pistol and approximately 50 rounds of ammunition at a shooting range after having been previously convicted of a felony.
The guilty plea was 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 government is represented by Assistant U.S. Attorney Talia Bucci.
As stated in the plea agreement, Richardson and another individual took the Taurus 9mm pistol to a firearms retailer and shooting range in Loves Park, and Richardson shot the pistol numerous times at the shooting range. Richardson and the other individual also bought approximately 50 rounds of ammunition from the firearms retailer, with Richardson providing the money for the purchase.
Richardson faces a maximum sentence of ten years’ imprisonment, a term of supervised release of up to three years following imprisonment, 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. Sentencing is scheduled for June 20, 2019, at 2:00 p.m.
Rockford Man Pleads Guilty to Attempted Robbery and Firearm ChargesRead the Press Release
ROCKFORD — A Rockford man pleaded guilty today in federal court before U.S. District Judge Frederick J. Kapala to one count of attempted robbery and one count of using, carrying, and brandishing a firearm during a crime of violence.
DARNELL LEAVY, 28, admitted in a written plea agreement that at approximately 7:00 p.m. on Nov. 5, 2015, he and others attempted to rob the Zake Convenience store, 824 Seventh St. in Rockford. As stated in Leavy's plea agreement, co-defendant RICKEY CLAYBRON, 33, of Rockford, entered the store first with his gun pointed at two clerks who were behind a glass enclosure. Leavy entered second and also began pointing his gun at the clerks, according to Leavy's plea agreement. A third individual then entered the store carrying a bag meant for the proceeds of the robbery, Leavy's plea agreement states. The employees of the store barricaded themselves in the glassed-in area where the registers were located. Leavy's plea agreement further states that Leavy tried to kick the door open, but was unsuccessful. In the meantime, according to Leavy's plea agreement, Claybron came around the front of the glass enclosure and pointed his gun through the small hole in the front that is used to conduct business with customers. Eventually, Leavy and the other robbers gave up on the robbery and walked out of the store, Leavy's plea agreement states.
Leavy's guilty plea 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 Federal Bureau of Investigation. The federal investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, which includes law enforcement officers and agents from the FBI, Rockford Police Department, Loves Park Police Department and Freeport Police Department. The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
For the attempted robbery, Leavy faces a maximum sentence of 20 years’ imprisonment, to be followed by a term of supervised release of up to three years following imprisonment. For the firearm charge, Leavy faces a statutory mandatory minimum sentence of seven years and a maximum sentence of life, to be consecutive to any other sentence imposed, as well as a term of supervised release of up to five years following imprisonment. Both charges also carry a fine of up to $250,000 apiece. The sentence will be determined by the United States District Court, guided by the Sentencing Guidelines. Sentencing for Leavy is set for June 4, 2019, at 11:00 a.m.
Claybron is charged with one count of conspiracy to commit robbery, three counts of robbery, one count of attempted robbery, and four counts of using, carrying, and brandishing a firearm during a crime of violence. Claybron has pleaded not guilty and is in custody while awaiting trial.
Also charged in the case is DEANDRE R. HAYWOOD, also known as “Duke,” 28, of Rockford. Haywood is charged with one count of conspiracy to commit robbery, three counts of robbery, and three counts of using, carrying, and brandishing a firearm during a crime of violence. Haywood has pleaded not guilty and is in custody while awaiting trial.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Husband and Wife Plead Guilty to Bank Robberies in Northern IllinoisRead the Press Release
ROCKFORD — A husband and wife from Crystal Lake have pleaded guilty in federal court to multiple bank robberies in Northern Illinois.
DANIEL R. PLUSHKIS, 27, pleaded guilty today to three counts of bank robbery, and he admitted as part of a plea agreement that he committed two other bank robberies. His wife, JESSICA E. PLUSHKIS, 29, pleaded guilty on Feb. 11, 2019, to two counts of aiding and abetting a bank robbery.
The guilty pleas 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 Federal Bureau of Investigation. The Cary, Huntley, Arlington Heights, Streamwood, Algonquin, and Crystal Lake Police Departments assisted in the investigation. The government is represented by Assistant U.S. Attorney Talia Bucci.
As stated in Daniel Plushkis’s written plea agreement, on Dec. 1, 2017, Daniel Plushkis robbed the Chase Bank, 300 Northwest Hwy. in Cary. Daniel Plushkis entered the bank wearing a long fake beard, a hooded black jacket, a camouflage hat, and sunglasses. He handed a teller an envelope with a note on it stating that he had a gun, and he began counting down from 30. The teller put $5,870 from the bank’s cash drawer into the envelope, and Daniel Plushkis fled from the bank with the cash.
Daniel also admitted that he robbed the TCF Bank, 13200 Village Green Dr. in Huntley, on Dec. 10, 2017, and the TCF Bank, 1860 S. Arlington Heights Rd., in Arlington Heights, on Dec. 13, 2017. In those robberies, Daniel Plushkis wore a disguise including a long fake beard and sunglasses, handed the teller an envelope with a note taped to it, and began a countdown. Daniel Plushkis stole $237 during the Dec. 10, 2017, robbery in Huntley, and $2,676 during the Dec. 13, 2017, robbery in Arlington Heights. As part of Daniel Plushkis’s written plea agreement, he also admitted that he robbed the TCF Bank, 217 E. Irving Park Rd. in Streamwood, on Dec. 20, 2017. Daniel Plushkis wore a disguise including a long fake beard, sunglasses, and a hooded black jacket. He handed the teller an envelope with a note taped to it and verbally demanded that the teller give him the money that the teller was in the process of counting. The teller handed over $500, and Daniel Plushkis fled from the bank with the cash.
As part of Jessica Plushkis’s written plea agreement, she admitted that she aided and abetted her husband in committing the Dec. 13, 2017, bank robbery in Arlington Heights. Jessica Plushkis admitted that she purchased a fake beard, black-colored hair spray, and black face paint for Daniel Plushkis a few hours before the Dec. 13, 2017, robbery, knowing that Daniel Plushkis intended to use those items as part of his disguise for the robbery.
As part of both plea agreements, the couple also admitted that Daniel Plushkis robbed the TCF Bank, 103 S. Randall Rd. in Algonquin, on Dec. 23, 2017, and that Jessica aided and abetted him in committing that robbery. After Daniel Plushkis handed the teller a note stating that he had a gun, the teller put $4,350 from the bank drawer into an envelope. Daniel Plushkis fled the premises with the envelope and cash. Daniel Plushkis headed toward the vehicle where his wife was waiting for him, but he was apprehended by a private citizen in the parking lot before making it back to the vehicle. Jessica Plushkis admitted that, after her husband was apprehended, she quickly drove out of the parking lot to avoid being apprehended by law enforcement, but was quickly pulled over by a law enforcement officer as she exited the parking lot. Law enforcement officers at the scene recovered the money Daniel Plushkis stole from the bank.
Each of the counts to which Daniel Plushkis and Jessica Plushkis pleaded guilty carries a maximum sentence of 20 years’ imprisonment, a term of supervised release of up to three years following imprisonment, and a fine of up to $250,000. Each defendant’s sentence will be determined by the United States District Court, guided by the Sentencing Guidelines. U.S. District Judge Frederick J. Kapala set sentencing for Jessica Plushkis on May 28, 2019, at 2:30 p.m., and for Daniel Plushkis on June 25, 2019, at 2:00 p.m.
Convicted Felon Charged with Illegally Possessing Machine Gun and Ammunition in His Lake County HomeRead the Press Release
CHICAGO — A convicted felon was charged today with federal firearm violations for allegedly illegally possessing a machine gun, silencers and ammunition in his Lake County home.
GREGORY DOMENICO, 35, of Wauconda, is charged with one count of illegal possession of ammunition by a convicted felon, and one count of illegal possession of an unregistered machine gun and three silencers. Domenico possessed the machine gun, silencers and five rifle cartridges at his residence in December 2018 and January 2019, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Domenico was arrested Thursday, and law enforcement carried out a court-authorized search of his residence.
Domenico made an initial court appearance today before U.S. Magistrate Judge Sheila Finnegan in Chicago and was ordered to remain in federal custody. A detention hearing was scheduled for Feb. 27, 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; John Idleburg, Lake County Sheriff; and David Wermes, Chief of the Wauconda Police Department. The case was investigated by the Lake County Gang Crimes Task Force. The government is represented by Assistant U.S. Attorney Tiffany Ardam.
According to the complaint, an undercover law enforcement officer made several purchases of unregistered firearm parts from Domenico. The sales occurred at Domenico’s residence, the complaint states.
According to the complaint, Domenico sold the undercover officer two silencers on Dec. 13, 2018; a silencer and an auto-sear, which is designed to convert a semi-automatic pistol into a machine gun, on Dec. 18, 2018; and five rifle cartridges on Jan. 22, 2019. Domenico was previously convicted of a felony and could not lawfully possess a firearm, firearm parts, or ammunition. Domenico has never held a federal firearms license nor has he registered the possession and transfer of any items with the National Firearm Registration and Transfer Record, the complaint states.
Calumet City Man Pleads Guilty to Firearms ChargesRead the Press Release
ROCKFORD — A Calumet City man pleaded guilty to firearms charges today before U.S. District Judge Frederick J. Kapala in Rockford.
BRUCE WALKER, 24, pleaded guilty to one count of conspiracy to commit an offense against the United States by stealing a firearm from a licensed firearms dealer, and one count of possessing a stolen firearm.
The guilty plea was 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 Manteno, Tinley Park, Chicago, and Loves Park Police Departments assisted in the investigation. The government is represented by Assistant U.S. Attorney Talia Bucci.
According to the written plea agreement, in the early hours of April 18, 2017, Walker and two other individuals obtained a stolen vehicle from Cook County and drove it to a federally-licensed firearms dealer in Manteno. The three individuals then used a hammer to shatter one of the dealer's glass exterior doors and entered the premises. After entering, they attempted to break into a firearms safe inside the office, but were not successful. On the way out, one of the individuals stole a rifle and a 30-round magazine hidden inside an office. Walker and the other two individuals also stole boxes of firearm ammunition before fleeing the premises, and returned to Cook County with the rifle, 30-round magazine, and ammunition. About three hours later, the three individuals used the same stolen vehicle to drive to a federally-licensed firearms dealer in Tinley Park, where Walker and another individual attempted to shatter the front glass door and a front window. When they were unable to gain entry to the business, they fled to the stolen vehicle where their getaway driver was waiting.
Walker faces a maximum sentence of five years’ imprisonment on the conspiracy charge, and a maximum of ten years’ imprisonment for possessing a stolen firearm. In addition, Walker faces a period of supervised release of up to three years following imprisonment, and a fine of up to $250,000 on each charge. The sentence will be determined by the United States District Court, guided by the Sentencing Guidelines. Sentencing is set for May 30, 2019, at 10:00 a.m.
KELVIN CULPS, also known as “Forty,” 22, of Dolton, was also indicted in the case and charged with conspiracy to commit an offense against the United States by stealing a firearm from a licensed firearms dealer, possessing a stolen firearm, and illegally possessing a firearm as a convicted felon. Culps is currently in custody pending trial. The public is reminded that an indictment contains only charges and is not evidence of guilt. Culps is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Federal Jury Convicts Woman of Coercing Members of Church Ministry into Forced LaborRead the Press Release
CHICAGO — A federal jury in Chicago has convicted the self-appointed bishop of a Pennsylvania ministry of forcing church members to work certain jobs, pocketing their earnings, and directing them to defraud various hotels.
TRACIE DICKEY, also known as “Tracie Williams,” 55, of Pittsburgh, Pa., was found guilty Friday on one count of wire fraud and one count of labor trafficking. Each count is punishable by up to 20 years in prison. U.S. District Judge Sara L. Ellis set sentencing for Aug. 7, 2019, in federal court in Chicago.
The conviction 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 Federal Bureau of Investigation. Valuable assistance was provided by U.S. Attorney’s Offices in the Northern District of Texas and Middle District of Florida, and the FBI’s Pittsburgh, Pa., field office. The government is represented by Assistant U.S. Attorneys Maureen E. Merin and Eric S. Pruitt.
Dickey was a self-appointed bishop of Deliverance Tabernacle Ministries, an organization she founded that proclaimed to offer faith-based services in locations such as Pennsylvania, North Carolina, and Florida. She also purported to operate a travel agency known as World Ambassador Travel.
Evidence at trial revealed that Dickey recruited young women to become members of the ministry, and directed them to work multiple jobs, including as desk clerks at hotels. She instructed the members on how to have the hotels pay reservation-commission fees to Dickey’s travel agency, via a bank account controlled by Dickey. In reality, the travel agency never actually booked hotel reservations on behalf of guests.
From 2005 to 2013, the hotels paid approximately $86,000 in commissions to Dickey. Dickey also collected approximately $333,000 in wages earned by members of her ministry. Dickey emotionally and physically abused the members, and coerced them into following her rules and remitting their earnings to Dickey or her church. Dickey’s tactics included starving and humiliating church members, forcing some of them into homelessness, and threatening that God would harm their families if they did not comply with Dickey’s rules. Several of Dickey’s victims testified at trial about their ordeals.
Federal Jury Convicts Mayor of Portage, Ind., on Corruption Charge for Pocketing a Bribe to Influence City ContractsRead the Press Release
CHICAGO — A federal jury today convicted the mayor of Portage, Ind., on a corruption charge for soliciting and pocketing a bribe in exchange for influencing the awarding of city contracts.
The jury in U.S. District Court in Hammond, Ind., convicted JAMES SNYDER, 38, of Portage, Ind., on one count of bribery and one count of obstruction of internal revenue laws. The jury acquitted Mayor Snyder on one other bribery count. U.S. District Judge Joseph S. Van Bokkelen set sentencing for May 14, 2019. The bribery conviction is punishable by up to ten years in prison, while the obstruction count is punishable by up to three years.
The verdict was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Grant Mendenhall, Special Agent-in-Charge of the Indianapolis office of the Federal Bureau of Investigation; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. The Indiana State Police provided valuable assistance. The government was represented at trial by Assistant U.S. Attorneys Philip C. Benson and Jill R. Koster of the U.S. Attorney’s Office for the Northern District of Indiana. The prosecutors were supervised by the U.S. Attorney’s Office for the Northern District of Illinois after recusals by supervisory personnel from the Northern District of Indiana.
Evidence at trial revealed that from 2012 to 2014, Mayor Snyder corruptly solicited and agreed to accept a $13,000 check to influence the awarding of a series of city contracts, including more than $1.1 million in contracts approved by the Portage Board of Works.
The obstruction charge involved a scheme to impede the IRS’s collection of personal taxes owed by Mayor Snyder, and the collection of payroll taxes owed by Mayor Snyder’s mortgage business – Portage, Ind.-based First Financial Trust Mortgage LLC. While the IRS was attempting to collect these tax debts, Mayor Snyder secretly diverted funds from the mortgage business to a sole proprietorship that he created. Mayor Snyder submitted forms to the IRS that failed to disclose, among other things, the existence of the sole proprietorship and its bank account.
Convicted Felon Found Guilty of Illegally Possessing Two Firearms in DuPage CountyRead the Press Release
CHICAGO — A convicted felon has been found guilty of illegally possessing an assault rifle and a loaded handgun in DuPage County.
CAMERON BATTISTE, 36, possessed the guns in April 2017 at an apartment complex in Willowbrook. At the time of his arrest on April 7, 2017, the handgun was loaded with six live rounds. Battiste had previously been convicted of a felony and was not legally allowed to possess a firearm.
A federal jury in Chicago on Wednesday convicted Battiste on one count of illegal possession of a firearm by a felon. The conviction is punishable by up to ten years in prison. U.S. District Judge Matthew F. Kennelly set sentencing for May 9, 2019, at 1:30 p.m.
The conviction 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 Federal Bureau of Investigation; and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Substantial assistance was provided by the Cook County Sheriff’s Police Department and the Bolingbrook Police Department. The government is represented by Assistant U.S. Attorneys Ankur Srivastava, William Dunne and Saurish Appleby-Bhattacharjee.
Evidence at the three-day trial revealed that the two firearms had been stolen from a cargo train that passed through Chicago on Sept. 18, 2016. Another convicted felon, co-defendant IESHA STANCIEL, 39, of Willowbrook, was arrested at the same time as Battiste for illegally possessing the same two firearms. Stanciel pleaded guilty prior to trial and was sentenced last month to six years in federal prison.
During Stanciel’s sentencing hearing, the government presented evidence that Stanciel threatened an individual who was cooperating with law enforcement. In November 2016, Stanciel posted intimidating messages on the cooperating individual’s Facebook page. One of the posts contained several emojis of a handgun and referred to the individual as a “snitch.”
4 Individuals Indicted on Firearm Charges as Part of Federal Investigation That Disrupted Missouri-to-Chicago Gun PipelineRead the Press Release
CHICAGO — A convicted felon from Chicago was arraigned today on a federal firearm charge for illegally possessing three handguns on the city’s South Side.
DERRICK CLAIBORNE, 43, of Chicago, pleaded not guilty to one count of illegal possession of a firearm by a convicted felon. U.S. Magistrate Judge Sidney I. Schenkier ordered Claiborne to remain detained in federal custody.
Claiborne was one of four defendants indicted last month as part of a federal investigation that disrupted a Missouri-to-Chicago firearms pipeline. The probe, led by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, revealed that numerous handguns were brought to Chicago last year by two Missouri residents – JUMONTA MOORE and MARCUS INGRAM, according to a criminal complaint and affidavit previously filed in the case. Moore and Ingram then supplied the guns to JAMES SAUNDERS, a convicted felon from Chicago, who illegally sold some of the firearms to confidential informants who were cooperating with law enforcement, the complaint states. Saunders also allegedly sold three guns to Claiborne.
All four defendants were recently arrested.
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 ATF; and Eddie Johnson, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Jared C. Jodrey.
Saunders, 47, is charged with five counts of illegal possession of a firearm by a convicted felon, and one count of dealing firearms without a license. On Friday, Saunders pleaded not guilty to the charges. He remains in federal custody.
Ingram, 26, of Charleston, Mo., is charged with two counts of illegal transportation of a firearm by a person under felony indictment. Ingram allegedly transported five handguns to Chicago last fall while under an unrelated felony indictment in Scott County, Mo. Ingram pleaded not guilty to the federal charges during his arraignment earlier this month. He remains in federal custody.
Moore, 20, of Sikeston, Mo., is charged with one count of illegal transportation of a firearm by a person under felony indictment. Moore allegedly transported two handguns to Chicago last June while under an unrelated felony indictment in New Madrid County, Mo. Moore pleaded not guilty to the federal charge during his arraignment last month. Judge Schenkier ordered Moore released from custody on a $50,000 appearance bond.
Claiborne was previously convicted of two felonies, including a gun-related conviction, and was not lawfully allowed to possess a firearm when he allegedly purchased three handguns from Saunders last fall in Chicago’s Woodlawn neighborhood.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Dealing firearms without a license is punishable by a maximum sentence of five years in prison. Illegal possession by a convicted felon carries a maximum sentence of ten years. Illegal transportation by a person under felony indictment is punishable by up to ten years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Rockford Man Arrested for Aiming a Laser Pointer at an AircraftRead the Press Release
ROCKFORD — A Rockford man was arrested today on a charge of aiming the beam of a laser pointer at an aircraft and at the flight path of an aircraft on Dec. 6, 2018, in Rockford.
BRENTON WELLS, 45, was indicted on the charge by a federal grand jury on Feb. 5, 2019. Wells will appear for arraignment today at 3:30 p.m. in federal court in Rockford, before U.S. Magistrate Judge Iain D. Johnston.
The charge carries a maximum potential penalty of up to five years in prison and a fine of up to $250,000. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The arrest was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Dan O’Shea, Rockford Chief of Police.
The public is reminded that an indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Illinois Accountant Charged with Fraud for Allegedly Misappropriating More Than $65 Million from Individuals and Financial InstitutionsRead the Press Release
CHICAGO — An Illinois accountant was charged today with criminal fraud for allegedly misappropriating more than $65 million from individuals and financial institutions.
SULTAN ISSA was a certified public accountant and the Chief Financial Officer of a group of partnerships, corporations and trusts owned by a Chicago-area family. From 2007 to 2017, Issa embezzled at least $55 million of the family’s assets and solicited at least another $8.8 million from individuals in his personal capacity, claiming he would invest their money in legitimate opportunities, including a luxury auto dealership Issa owned in Burr Ridge, according to a criminal information filed in U.S. District Court in Chicago. Issa used tens of millions of dollars in fraud proceeds to cover personal expenses and to secure fraudulent loans from financial institutions totaling at least $83 million to acquire, among other things, 25 residential properties in Illinois, Montana, Michigan, and Cabo San Lucas, Mexico, two private aircraft, four yachts, approximately 60 firearms, and assorted watches, jewelry and memorabilia, the information states. He used another $15 million in fraudulently obtained funds to pay expenses related to the auto dealership, including the purchase of a showroom, the acquisition of luxury cars, and the salaries of employees, the information states.
The information charges Issa, 45, of Hinsdale, with one count of wire fraud affecting a financial institution. Arraignment in federal court in Chicago has not yet been scheduled.
The information was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; 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 Kathryn E. Malizia.
Issa attempted to conceal the scheme by providing financial institutions with fraudulent loan documents and forging authorizations to gain control of funds belonging to the family-owned group, the information states. Issa also created false account statements and made Ponzi-type payments to individual investors, the information states.
The public is reminded that a charge is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Wire fraud affecting a financial institution carries a maximum sentence of 30 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
U.S. Attorney’s Office in Chicago Announces Federal Carjacking Charges Against Five IndividualsRead the Press Release
CHICAGO — The U.S. Attorney’s Office in Chicago today announced federal criminal charges against five individuals in connection with violent carjackings in the city or suburbs.
U.S. v. McKenzie, 19 CR 019
BRIAN MCKENZIE, 23, of Chicago, is charged with two counts of carjacking for allegedly taking two vehicles at gunpoint on Oct. 18, 2018. McKenzie used a handgun to take a Dodge Charger from a driver in the parking lot of a restaurant in Orland Park, and later crashed the vehicle into a worker at a construction site in Oak Forest, according to a criminal complaint filed in U.S. District Court in Chicago. McKenzie allegedly fled on foot and used a handgun to carjack a passing Mazda 3 sedan. He then put the Mazda in reverse and drove over the leg of a law enforcement officer who was pursuing him, the complaint states.
U.S. Magistrate Judge Maria Valdez on Tuesday ordered McKenzie held in federal custody. A detention hearing is set for Feb. 4, 2019, at 11:00 a.m., before U.S. Magistrate Judge M. David Weisman. The case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, the Orland Park Police Department, and the Oak Forest Police Department. The government is represented by Assistant U.S. Attorney Kavitha Babu.
U.S. v. Carter, et al, 19 CR 055
In an unrelated case, three defendants have been indicted on a federal carjacking charge for allegedly violently taking a Land Rover from a driver in the Wicker Park neighborhood of Chicago on July 20, 2018. Charged are TYRAN CARTER, 26, DWAYNE LIBERTY, 21, and TERRONDE GORDON, 20, all of Chicago. The indictment also charges Carter individually with carjacking a Toyota Prius in the city’s Hyde Park neighborhood earlier the same day.
Arraignment for the trio is set for Feb. 5, 2019, at 11:00 a.m., in federal court in Chicago. The case was investigated by the Vehicular Hijacking Task Force, a joint federal and state initiative consisting of officers, agents and prosecutors from the U.S. Attorney’s Office, Chicago Police Department, ATF, Federal Bureau of Investigation, Cook County State’s Attorney’s Office, Illinois State Police, and suburban police departments. The government is represented by Assistant U.S. Attorney Timothy Storino.
U.S. v. Dukes, 19 CR 048
In another recent case, KASHIF DUKES, 24, of Chicago, was indicted on a federal carjacking charge for allegedly taking a Mercedes-Benz sedan in Chicago’s Bronzeville neighborhood on Sept. 10, 2017. Dukes displayed a firearm and threatened the driver before taking the car, according to the government’s memorandum in support of detention.
U.S. Magistrate Judge M. David Weisman on Tuesday ordered Dukes detained in federal custody pending trial. The case was investigated by the ATF Chicago Crime Gun Strike Force, in conjunction with the Chicago Police Department. The government is represented by Assistant U.S. Attorneys Katie Durick and John D. Mitchell.
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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 ATF; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; and Eddie Johnson, Superintendent of the Chicago Police Department.
The public is reminded that charges 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. Carjacking is punishable by up to 15 years in prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Suburban Musician Pleads Guilty to Child Pornography Charge for Enticing Underage Girls to Produce Sexually Explicit VideosRead the Press Release
CHICAGO — A west suburban musician pleaded guilty today to a federal child pornography charge and admitted enticing several underage girls, many as young as 14 years old, to produce sexually explicit videos of themselves.
AUSTIN JONES, 26, of Bloomingdale, pleaded guilty to one count of receipt of child pornography. He faces a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years. U.S. District Judge John Z. Lee conditionally accepted the guilty plea and set sentencing for May 3, 2019, at 1:30 p.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago. The Illinois Attorney General’s Office’s Internet Crimes Against Children Task Force and the Bloomingdale Police Department provided assistance in the investigation. The government is represented by Assistant U.S. Attorney Katherine Neff Welsh.
Jones is a musician with a significant following on social media, including Facebook and YouTube. His online music videos have been viewed millions of times.
Jones admitted in a plea agreement that in 2016 and 2017 he chatted with six underage girls on Facebook and enticed them to produce pornographic videos of themselves and send them to him. Jones told some of his victims to send him the videos as a way to “prove” that they were his biggest fans, the plea agreement states. He also told some of his victims that the videos were part of a modeling opportunity, and that he could assist them in gaining followers on the social media site Instagram, the plea agreement states.
In addition to the six victims whom he enticed to send videos, Jones further admitted in the plea agreement that he used Facebook on approximately 30 other occasions to attempt to persuade minor girls to send him sexually explicit videos and photographs.
If you believe you are a victim of sexual exploitation, you are encouraged to call the ICE Tip Line at 1-866-DHS2-ICE (1-866-347-2423) or the National Center for Missing and Exploited Children at 1-800-843-5678. The hotlines are available 24 hours a day, seven days a week.
Three Chicago-Area Men Plead Guilty to Robberies of Rockford-Area Cell Phone StoresRead the Press Release
ROCKFORD — Three Chicago-area men have pleaded guilty to the robberies of Rockford-area cell phone stores.
NARCELLUS J. TAYLOR JR., also known as “J.T.,” 23, of Chicago, HERMAN L. DOSS JR., 27, of Dolton, and MARIO J. ANDERSON, 25, of Riverdale, admitted to conspiring with each other to steal cellular telephones and computers from stores in Illinois, Wisconsin and Indiana. Anderson and Doss pleaded guilty today before U.S. District Judge Philip G. Reinhard, while Taylor pleaded guilty on Sept. 21, 2018. Taylor and Doss each pleaded guilty to one count of conspiracy to commit robbery, three counts of robbery by threatened force, and one count of using a firearm during a crime of violence, while Anderson pleaded guilty to one count of conspiracy to commit robbery, two counts of robbery by threatened force, and one count of using a firearm during a crime of violence.
According to written plea agreements, between Aug. 5, 2016, and Jan. 6, 2016, Taylor conspired with Anderson, Doss and others to rob certain cellular telephone and electronics stores. Taylor identified the stores and paid others, including Anderson and Doss, to commit the robberies at his direction. The men conducted surveillance and communicated with other individuals during the robberies. After the robberies were completed, Taylor took the stolen items to Chicago where he sold them. Taylor then determined the amount each defendant received from the proceeds based upon their roles in the robberies. Taylor admitted to conspiring to commit eight robberies, five of which Doss participated in, and four of which Anderson participated in. Taylor admitted that the local robberies included one on Dec. 2, 2016, of a Best Buy in DeKalb, and two with Doss and Anderson at the Simply Mac store in Cherry Valley, on Dec. 16, 2016, and Jan. 6, 2017. The three defendants admitted to using firearms during the Jan. 6, 2017, robbery.
Each count of robbery carries a maximum sentence of 20 years’ imprisonment, a term of supervised release of up to three years following imprisonment, and a fine of up to $250,000. Using a firearm during a crime of violence carries a maximum sentence of life imprisonment, with a mandatory minimum sentence of 7 years and a term of supervised release of up to five years, which is required to be consecutive to any other sentence imposed, as well as a fine of up to $250,000. The actual sentence for each defendant will be determined by the United States District Court, guided by the Sentencing Guidelines.
Sentencing for Anderson is scheduled for May 13, 2019, at 9:00 a.m. Sentencing for Doss is scheduled for May 13, 2019, at 10:30 a.m.
The guilty pleas 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 Federal Bureau of Investigation. The federal investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, which includes law enforcement officers and agents from the FBI, Rockford Police Department, Loves Park Police Department and Freeport Police Department. The Illinois State Police, Cherry Valley Police Department, Rockford Police Department, DeKalb Police Department, Burbank Police Department, Crestwood Police Department, Kenosha (Wisc.) Police Department, and Valparaiso (Ind.) Police Department also assisted in the investigation.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Rockford Man Sentenced to More Than 9 Years in Federal Prison for Armed RobberyRead the Press Release
ROCKFORD — A Rockford man was sentenced today by U.S. District Judge Philip G. Reinhard to a total of 114 months in federal prison for the robbery of the U.S. Cellular store, 6430 E. State St., in Rockford, on June 1, 2016, and for using a firearm during a violent crime.
RICKY WOODS, 23, was sentenced to 30 months’ imprisonment for the robbery, and was ordered to serve a consecutive term of 84 months’ imprisonment for using a firearm during a crime of violence. After serving his sentence in federal prison, Woods will be placed on three years of supervised release. Woods pleaded guilty to the charges on Sept. 27, 2018.
Also charged was McKINLEY HOARDE III, 23, of Rockford, who on July 9, 2018, pleaded guilty to the robbery and the gun charge. Hoarde was sentenced on Oct. 19, 2018, to 66 months’ imprisonment for the robbery, and was ordered to serve a consecutive term of 84 months’ imprisonment for using a firearm during a crime of violence. After serving his sentence in federal prison, Hoarde will be placed on five years of supervised release.
Both men admitted that after arriving at the U.S. Cellular store they pulled out and pointed their guns at the only employee at the store. One of them grabbed the employee by the shirt collar and pulled the employee to the back room of the store, where they ordered the employee to the ground. Hoarde and Woods then took cellular phones from the store and removed electrical equipment from the wall in an attempt to disable the security system, before running out of the store.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The federal investigation was conducted by ATF and the FBI-led Rockford Area Violent Gang Task Force, which includes law enforcement officers and agents from the FBI, Rockford Police Department, Loves Park Police Department and Freeport Police Department. The government was represented by Assistant U.S. Attorney Margaret J. Schneider.
Mexican Citizen Pleads Guilty in Federal Court in Rockford to Bank Fraud SchemeRead the Press Release
ROCKFORD — A Mexican citizen pleaded guilty today in federal court before U.S. District Judge Philip G. Reinhard to bank fraud.
JAVIER SANTOS SUAREZ, also known as Roberto Rios, Simon Estrada, Jorge Viveros, Francisco Alvarado, and Fernando Razo, 40, admitted to scheming with co-defendants from January 2003 through August 2003 to defraud and obtain money using counterfeit checks - payable to fictitious names - that the defendants cashed in Northern Illinois and other states.
According to a written plea agreement, Suarez and his co-defendants used counterfeit checks that they cashed at banks near the businesses on which they were purportedly drawn. The defendants used false personal identification documents, such as false Resident Alien Cards, when presented to the banks to cash. Suarez admitted that he kept at least a portion of the cash he received from personally cashing counterfeit checks, and turned the balance of the cash over to other participants. Suarez and his co-defendants cashed counterfeit checks totaling $721,617 at banks and businesses in Poplar Grove, Marengo, and Harvard, as well as in other states.
Suarez was arrested in Wisconsin on the federal charges. He faces a maximum sentence of 30 years’ imprisonment, a term of supervised release of up to five years following imprisonment, and a fine of up to $1 million or twice the gross gain or gross loss resulting from the offense, whichever is greater. The actual sentence will be determined by the U.S. District Court, guided by the Sentencing Guidelines. Sentencing for Suarez is set for May 13, 2019, at 10:00 a.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
Also convicted of bank fraud in the case were:
ROGELIO RAMOS, 38, who pleaded guilty on Sept. 15, 2004, and was sentenced on Nov. 19, 2004, to 40 months in prison, to be followed by five years of supervised release. Ramos was ordered to pay restitution in the amount of $773,336.66.
LEONEL BELLO LEON, 41, who pleaded guilty on July 15, 2005, and was sentenced on Sept. 26, 2005, to 31 months in prison, to be followed by five years supervised release. Leon was ordered to pay restitution in the amount of $718,778.56.
MISEAL SANGABRIEL ALARCON, 38, who pleaded guilty on Dec. 16, 2005, and was sentenced on March 24, 2005, to 32 months in prison, to be followed by three years of supervised release. Alarcon was ordered to pay restitution in the amount of $141,738.50.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Kendall County Real Estate Professional Charged with Operating $23 Million Ponzi SchemeRead the Press Release
CHICAGO — A Kendall County real estate professional has been indicted on federal fraud charges for allegedly orchestrating a $23 million Ponzi scheme.
MICHELLE LABRA owned and operated Labra Group Realtors LLC, an Aurora-based investment program that used the promise of outsized returns to receive $23 million from at least 25 investors from 2009 to 2015, according to an indictment returned Thursday in U.S. District Court in Chicago. Instead of investing the money, Labra spent approximately $19.6 million to pay earlier investors via Ponzi-type payments, while misappropriating more than $3.3 million for her personal benefit, including expensive jewelry and vacations in Jamaica, Mexico and Guatemala, the indictment states.
The indictment charges Labra, 47, of Yorkville, with three counts of wire fraud and one count of making a false statement to the U.S. Treasury Inspector General for Tax Administration. 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 Federal Bureau of Investigation; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and J. Russell George, United States Treasury Inspector General for Tax Administration. The government is represented by Assistant U.S. Attorney John D. Mitchell.
According to the indictment, Labra claimed that investor funds would be used to make short-term, high-interest loans to borrowers, and that the loans would be secured by the borrowers’ residences. Labra represented that investors would receive full repayment of the principal loan amount, a service fee paid by the borrower, and at least 14% interest on the loan, the indictment states. In reality, Labra never entered into any agreements with borrowers.
Labra attempted to conceal the scheme by making false representations to investors about the reasons why she could not return their money or send them their purported gains. At one point Labra falsely claimed that IRS agents had issued levies and seized investor funds from the Labra Group’s bank accounts, the indictment states. In reality, the IRS had not seized any funds or issued any such levies.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of wire fraud carries a maximum sentence of 20 years in prison, while the false statement charge is punishable by up to five years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Machesney Park Man Arrested on Child Pornography ChargeRead the Press Release
ROCKFORD — A Machesney Park resident was arrested Wednesday on a charge of possessing child pornography.
JAMES UMBAUGH, 53, was charged in a federal criminal complaint. According to the complaint, a federal search warrant was executed by federal law enforcement officers on Dec. 18, 2018, at Umbaugh’s residence. The complaint alleges that upon arriving at the residence officers found Umbaugh seated before a computer screen connected to a computer, and that located on the computer were images and videos of child pornography, including prepubescent minors engaged in sexually explicit conduct.
Possessing child pornography carries a minimum mandatory sentence of ten years in prison and up to a maximum of 20 years, and a fine of up to $250,000. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines. Umbaugh appeared yesterday before U.S. Magistrate Judge Iain D. Johnston and is in custody pending a hearing on pre-trial release.
The public is reminded that a complaint is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charge 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 Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Justice Department Seeks to Denaturalize Illinois Man Who Allegedly Concealed Service in Military Unit that Perpetrated Srebrenica MassacreRead the Press Release
The Justice Department today filed a denaturalization lawsuit against Nedjo Milosevic, a native of the former Yugoslavia, who, according to the Department’s complaint, was a member of one of the military units responsible for the Srebrenica massacre—the largest mass atrocity in Europe since the Holocaust. The complaint alleges that Milosevic concealed his military service in order to enter the United States as a refugee, and continued to conceal it throughout his naturalization proceedings. The civil complaint was filed in federal court in the Northern District of Illinois.
“The naturalization process is a shining example of the United States’ generosity to the rest of the world, but it is not available to war criminals,” said Principal Deputy Associate Attorney General Jesse Panuccio. “The United States will use every available law enforcement tool to combat human rights abuses like these, including the civil denaturalization process.”
“Nedjo Milosevic tried to cheat our nation’s immigration system by lying about his military role during the Bosnian War,” said U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Executive Associate Director Derek Benner. “This denaturalization filing demonstrates the U.S. government’s enduring commitment to identify and bring to justice those who are suspected to have taken part in human rights violations in any part of the world. The United States will not serve as a safe haven for those who would commit such atrocities.”
According to the complaint, Milosevic, 53, a resident of Harwood Heights, Illinois, was a member of the Military Police Company of the Zvornik Brigade of the Army of the Serb Republic—the military arm of an entity within Bosnia controlled by ethnic Serbs. The Zvornik Brigade, including the Military Police Company, were active during the Srebrenica massacre during which, over the course of several days in July 1995, approximately 8,000 Bosnian Muslim men and boys were systematically killed and more than 30,000 women, children, and elderly were forcibly separated and expelled from the region. The complaint alleges that Milosevic was deployed in the field during the Srebrenica massacre.
Before his military service had come to light, Milosevic requested and received refugee status in the United States. The complaint alleges that Milosevic concealed and affirmatively misrepresented his military service in order to obtain immigration benefits, including naturalization. The complaint also alleges that Milosevic falsely stated that he was living in Serbia, rather than Bosnia, in order to qualify for refugee status.
“The United States is committed to combating human rights abuses,” said U.S. Attorney John R. Lausch, Jr. of the Northern District of Illinois. “We will not allow our country to be a safe haven for anyone who has participated in or helped perpetrate such atrocities in any capacity. Regardless of how long ago, or how far away, it will never be tolerated.”
This civil denaturalization case follows the criminal conviction of a member of the Army of the Serb Republic for making materially false statements on his application for refugee status, which also involved concealment of service in a military unit connected to the Srebrenica massacre, as well as civil denaturalization actions against alleged members of the Army of Bosnia and Herzegovina, convicted in Bosnia of murdering civilians and prisoners of war during the 1990s Balkans conflict, and an alleged member of the Croatian Defense Council, who participated in extrajudicial killings during the same conflict.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Chicago and supported by the ICE Human Rights Violator and War Crimes Center and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS), with consultation and support from ICE’s Office of the Principal Legal Advisor (OPLA) Human Rights Law Section and Chicago Office of Chief Counsel, and the Justice Department’s Human Rights and Special Prosecutions Section. The case is being prosecuted by Counsel for National Security Aaron Petty of OIL-DCS’s National Security and Affirmative Litigation Unit with assistance from the U.S. Attorney’s Office for the Northern District of Illinois.
The claims made in the complaint are allegations only, and there have been no determinations of liability.
Members of the public who have information about foreign nationals or naturalized U.S. citizens suspected of engaging in human rights abuses or war crimes are encouraged to contact U.S. law enforcement through the DHS tip line at 1-866-DHS-2-ICE or to complete its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp, or through the Justice Department’s Human Rights and Special Prosecutions Section at [email protected] or 1-800-813-5863. Callers may remain anonymous.
Federal Grand Jury Indicts Businessman on Tax Evasion ChargesRead the Press Release
CHICAGO — A federal grand jury in Chicago has indicted a businessman on tax evasion charges for allegedly scheming to evade personal income taxes for three years.
As the owner of the security firm World Security Bureau, ABRAHAM KISWANI, also known as “Ibriham Kiswani,” willfully failed to pay the full amount of taxes on his personal income for the calendar years 2010, 2012, and 2013, according to an indictment returned in U.S. District Court in Chicago. Kiswani concealed some of his income for those years by arranging for WSB to pay certain personal items, including those held or purchased in the name of family members, and disguising them as business expenses. The expenditures included mortgage payments, homeowner’s association dues, property taxes, sewer and water fees on a personal residence, slip fees and insurance for a boat, slip fees for jet skis, and gold coins, the indictment states. Kiswani covered up some of his 2013 income by arranging for WSB to pay some of his wedding expenses and then entering those payments in WSB’s records as business expenses, the indictment states.
The indictment charges Kiswani, 49, of Burbank, with three counts of tax evasion and one count of willfully filing a false corporate tax return. Kiswani pleaded not guilty at his arraignment Tuesday before U.S. District Judge Manish S. Shah in Chicago.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. Substantial assistance was provided by the U.S. Department of Housing and Urban Development, and the Chicago Housing Authority Office of the Inspector General. The government is represented by Assistant U.S. Attorney Sheri H. Mecklenburg.
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 tax evasion count carries a maximum sentence of five years in prison, while filing a false return is punishable by up to three years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
9 Defendants Charged in Chicago in International Investigation Targeting “Romance Scams” and “Mystery Shopper” SchemesRead the Press Release
CHICAGO — Seven Chicago-area residents are among nine individuals arrested in the United States and Nigeria as part of an international investigation into online “romance scams” and “mystery shopper” schemes.
During the Chicago-based investigation, dubbed “Operation Gold Phish,” law enforcement identified a variety of cyber-enabled fraud schemes allegedly carried out by conspirators in the U.S. and Nigeria. One of the alleged schemes involved “romance scams,” in which a conspirator builds trust with a victim through a purported online romance before convincing the victim to send money to a predetermined recipient. The conspirators initially contacted victims online via applications and websites, including Match.com, Facebook, and Instagram, the complaint states. Another alleged cyber-enabled fraud involved a “mystery shopper” scheme, in which conspirators fraudulently offered victims opportunities to work as a mystery shopper and receive commissions for evaluating retailers. The victim received a check through the U.S. mail with instructions to deposit it in a personal bank account, withdraw the money in cash, and wire it to a third party. The check turned out to be fake, and the victims were defrauded of the wired money, the charges allege.
A criminal complaint filed Dec. 4, 2018, in U.S. District Court in Chicago charged nine defendants with conspiracy to commit wire fraud. Arrests were recently carried out in Illinois, Texas, and Nigeria, and all of the defendants are now in law enforcement custody. The Nigerian Economic and Financial Crimes Commission is conducting a related investigation of other individuals in Nigeria.
The U.S. charges 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 Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. Valuable assistance was provided by the Nigerian Economic and Financial Crimes Commission. Assistant U.S. Attorneys Peter S. Salib and Charles W. Mulaney represent the government.
Arrested on the U.S. charges in Illinois were DANIEL SAMUEL ETA, also known as “Captain” and “Etaoko,” 35, of Skokie; BABATUNDE LADEHINDE LABIYI, also known as “Junior,” 20, of Chicago; BARNABAS OGHENERUKEVWE EDJIEH, 29, of Chicago; SULTAN OMOGBADEBO ANIFOWOSHE, also known as “Ayinde,” 26, of Chicago; BABATUNDE IBRAHEEM AKARIGIDI, also known as “AK,” 39, of Chicago; MIRACLE AYOKUNLE OKUNOLA, 21, of Chicago; and OLUROTIMI AKITUNDE IDOWU, also known as “Idol,” 55, of Chicago. Arrested in Texas was ADEWALE ANTHONY ADEWUMI, 27, of Richardson, Texas. Arrested in Nigeria was OLANIYI ADELEYE OGUNGBAIYE, also known as “DonChiChi,” 26, of Lagos, Nigeria.
In addition to the romance and mystery shopper schemes, the complaint accuses the conspirators of engaging in various other cyber-enabled scams, including investment and employment frauds. The conspirators also defrauded victims by targeting corporate email accounts, the complaint states. In the email scam, known as a business email compromise, the conspirators fraudulently obtained usernames and passwords or sent “spoofing” email messages that claimed to be from a company employee, instructing the victim to change the wire instructions for bank payments. Per the instructions given in the fraudulent emails, the victims unknowingly wired funds to bank accounts controlled by the conspirators that had been opened in fictitious names utilizing fake passports, the complaint states.
The charge in the complaint carries a maximum sentence of 20 years in prison. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that 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.
Rockford Man Charged with Tax FraudRead the Press Release
ROCKFORD — A Rockford man was indicted today by a federal grand jury on charges of tax fraud and interfering with internal revenue laws.
MICHAEL MENDOZA, 31, was charged with sixteen counts of making false claims on Internal Revenue Service forms and one count of attempting to interfere with the administration of internal revenue laws.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorney Michael D. Love.
As alleged in the indictment, Mendoza made false representations regarding wages, income tax amounts and withholding amounts, and claimed refunds he was not entitled to for the tax years 2014 through 2016, totaling $356,844. The indictment further alleges that Mendoza electronically filed federal income tax returns for himself and in the names of other persons, causing refunds to be deposited into bank accounts he owned or controlled. It is alleged that after the IRS began an examination of federal income tax returns filed by Mendoza from Sept. 23, 2015, through Dec. 5, 2016, Mendoza obstructed the examination when he submitted fictitious documents and made false statements to the IRS concerning his 2014 employment.
Each count of making a false claim to the IRS carries a maximum potential penalty of up to five years in prison, a fine of up to $250,000, and full restitution. Attempting to interfere with the administration of internal revenue laws carries a fine of up to $5,000 or up to three years in prison, or both. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines. Mendoza will be arraigned on a date yet to be determined in U.S. District Court in Rockford.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Chicago Man Sentenced to Six and a Half Years for Illegally Selling More Than a Dozen FirearmsRead the Press Release
CHICAGO — A convicted felon from Chicago has been sentenced to six and a half years in federal prison for illegally selling more than a dozen handguns and rifles.
JYMIL CAMPBELL, 31, sold ten handguns, three rifles, and four large-capacity magazines during a nine-month period that ended with his arrest in the summer of 2016. The sales netted Campbell a total of $8,700 in cash. Unbeknownst to Campbell, the two buyers were confidential informants working on behalf of law enforcement. They provided the guns to law enforcement after each sale.
Campbell pleaded guilty earlier this year to one count of willfully dealing firearms without a license and one count of illegal possession of a firearm by a convicted felon. U.S. District Judge Robert W. Gettleman imposed the 78-month sentence on Dec. 12, 2018, in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.
“No illegal sales of any firearms – especially in this time and place – should be accepted, let alone 13,” Assistant U.S. Attorney Devlin N. Su argued in the government’s sentencing memorandum. “Chicagoans are extremely fortunate that the buyers of the weapons turned out to be working for law enforcement, because any willingness to inject guns onto the streets fuels the violence.”
Campbell acknowledged in a plea agreement that he could not legally possess or deal firearms because he had previously been convicted of two felonies – home invasion and armed robbery – and he lacked a federal firearms license.
Most of the gun sales occurred in Campbell’s residence in the North Lawndale neighborhood of Chicago. According to the plea agreement, one of the buyers put Campbell on notice that the firearms would be used in illegal gun violence. Campbell nonetheless made the sale. Campbell also admitted telling the buyer that although Campbell had personally fired one of the rifles, the firearm was essentially “brand new” and had not yet been “shot shot, like in a war.”
Father and Son Among 18 Defendants Charged in Federal Investigation into Cocaine Delivery Service in Chicago AreaRead the Press Release
CHICAGO — A father and son are among 18 individuals facing criminal charges as part of a federal investigation into cocaine trafficking in the Chicago area.
During the multi-year investigation, dubbed “Operation Flawed Deal,” law enforcement seized multiple bank accounts, more than a kilogram of cocaine, a Mercedes G63 sport-utility vehicle, and two handguns, including one with an extended magazine. The defendants allegedly distributed cocaine to hundreds of customers in the Chicago area, with drivers dispatched to make door-to-door deliveries.
The investigation 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 organizations.
Two indictments unsealed this week in U.S. District Court in Chicago charge 18 defendants with federal drug offenses. Many of the defendants were arrested Thursday, and they have begun making initial appearances in federal court in Chicago.
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 Federal Bureau of Investigation; Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. Valuable assistance was provided by the Chicago Police Department, Evanston Police Department, Skokie Police Department, Lincolnwood Police Department, Palatine Police Department and Des Plaines Police Department. Assistant U.S. Attorneys Rajnath Laud and Charles W. Mulaney represent the government.
Fourteen defendants are charged in U.S.A. v. Usmani, et al (18 CR 835), including ANEES USMANI, also known as “Ace,” 41, of Chicago, and his brother, NAFEES USMANI, 39, of Lincolnwood. The Usmani brothers allegedly conspired with JUAN BAUTISTA DOMINGUEZ, 41, of Chicago, and several others to distribute at least 500 grams of cocaine in the Chicago area from the fall of 2017 to the spring of 2018. Also charged in the drug conspiracy are ALFONSO TROTTER, also known as “Fonz” and “Fonzie,” 48, of Chicago; RONALD ALLEN, 47, of Chicago; MUHAMMAD SABIH, also known as “Muhammad Iqbal” and “Sabih Nawab,” 30, of Chicago; MUHAMMAD BILAL KHAN, 24, of Chicago; AHMED FATAH KHAN MALIK, 24, of Skokie; ODEH ALSHOBAKI, 22, of Worth; AHMED HUSSEIN YOUSEF ALSAWALHI, 21, of Chicago; WESAM ABDEL FATTAH, 32, of Chicago; and LISA USMANI, 41, of Lincolnwood. Charged with cocaine distribution are KENNETH SLAUGHTER, 34, of Park Forest; and NEAL BOWENS, 47, of Gary, Ind. The indictment seeks forfeiture from ANEES USMANI of the Mercedes SUV and $247,700 in cash.
Dominguez and four other defendants are charged in U.S.A. v. Cayuela, et al (18 CR 836), including TONY F. CAYUELA, 64, of Chicago, and his son, TONY J. CAYUELA, also known as “Tone Kapone,” 39, of Chicago. The Cayuelas allegedly conspired with WALBERTO OLIVO, 46, of Chicago, to distribute at least 500 grams of cocaine in the Chicago area in the spring and summer of 2018. Dominguez and JESUS HERNANDEZ, 41, of Chicago, are charged in the indictment with possession of cocaine with intent to distribute. The indictment seeks forfeiture from Tony J. Cayuela of $108,000 in cash, two properties in the Brighton Park neighborhood of Chicago, and a property in the city’s Chicago Lawn neighborhood.
The charges in the indictments carry maximum penalties of 20 to 40 years in federal prison. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that charges contains 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.
West Suburban Sex Trafficker Sentenced to 21 Years in Federal PrisonRead the Press Release
CHICAGO — An Oak Park man has been sentenced to 21 years in federal prison for sex trafficking several children in the Chicago area.
ALLEN YOUNG trafficked and facilitated the prostitution of four young girls in the Chicago area, and he attempted to traffic a fifth. Young took photographs of the victims and posted them in online advertisements offering commercial sex. He then drove the minors to meet with individuals who responded to the ads. After the encounters, Young took some of the money paid to his victims and required some of them to have sex with him.
A jury earlier this year convicted Young, 53, on five sex trafficking counts and one attempted sex trafficking count. U.S. District Judge Edmond E. Chang on Monday imposed the 21-year prison sentence and ordered Young to pay $37,750 in restitution to the victims.
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 Federal Bureau of Investigation. The case was investigated by the FBI Chicago Child Exploitation Task Force, with special assistance from the Chicago Police Department. The government was represented by Assistant U.S. Attorneys Andrianna Kastanek and Christine O’Neill.
Evidence in the case revealed that Young trafficked the victims at various times in 2014, 2015 and 2016. Some of the girls were as young as 15 years old when Young began facilitating the prostitution. Several of the victims testified at trial about their ordeals.
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.
Former Director of Operations of a Rockford Non-Profit Organization Charged with FraudRead the Press Release
ROCKFORD — LEILANI HILLIS, 60, of Rockford, the former director of operations of a Rockford non-profit organization, was charged today in federal court with one count of mail fraud and one count of tax fraud.
Hillis was an employee of the non-profit organization since 2001. During her employment, Hillis handled the organization’s payroll, human resource matters, 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.
According to a criminal information, the organization issued employees a credit card in the employee’s name. From 2009 through April 2018, Hillis schemed to enrich herself by using her employee-issued credit card to make more than $600,000 in unauthorized purchases for her personal benefit. 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 payment included money to pay for the unauthorized purchases. Hillis also 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.
Each count of mail fraud carries a maximum potential penalty of up to 20 years in prison, and tax fraud carries a maximum potential penalty of up to three years in prison. Each charge also carries a fine of up to $250,000, or twice the gross gain or gross loss resulting from that offense, whichever is greater, plus full restitution and a period of supervised release following imprisonment of up to five years. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Hillis is scheduled to appear for arraignment before U.S. Magistrate Judge Iain D. Johnston on Dec. 19, 2018, at 9:30 a.m.
The public is reminded that an information contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charges 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 Federal Bureau of Investigation; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
CFO of North Suburban Automobile Parts Company Indicted on Fraud Charges for Allegedly Embezzling More Than $700,000 in Company FundsRead the Press Release
CHICAGO — The former Chief Financial Officer of a north suburban automobile parts company has been indicted on federal fraud and money laundering charges for allegedly embezzling $700,000 in company funds.
While serving as CFO of the Libertyville-based company, MICHAEL PUGLISI fraudulently wrote corporate checks to three shell companies that he created, according to an indictment returned Tuesday in U.S. District in Chicago. Puglisi fraudulently set up the shell companies with names that closely resembled or were identical to the names of actual vendors of the auto parts company, the indictment states. Puglisi deposited checks from the auto parts company into bank accounts he opened in the names of the shell companies, and then transferred the money to his personal bank or investment accounts, the indictment states.
The indictment charges Puglisi, 63, of Lisle, with four counts of wire fraud and three counts of money laundering. Arraignment in U.S. District Court has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The government is represented by Assistant U.S. Attorney Matthew Schneider.
According to the charges, Puglisi’s fraud scheme began in 2013 and continued until earlier this year. Puglisi allegedly made false entries in the auto parts company’s accounting reports and financial statements in order to conceal his theft. As a result of his actions, Puglisi caused a loss to the company of at least $700,000, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of wire fraud is punishable by up to 20 years in prison, while each money laundering count carries a maximum sentence of ten years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
CEO of Suburban Pharmaceutical Company Sentenced to 4 Years in Federal Prison for Misappropriating $2.2 Million from InvestorsRead the Press Release
CHICAGO — A federal judge today sentenced the former Chief Executive Officer of a suburban pharmaceutical company to four years in prison for pocketing $2.2 million from investors and spending the money on property in Michigan, golf and yacht club dues, and trading in options on futures contracts.
As the CEO of Neurendo Pharma LLC in Hoffman Estates, ROBERT TOMLINSON misappropriated the money from individual and corporate investors from 2014 to 2017. Tomlinson fraudulently advised investors that their funds would be used to operate Neurendo and to market an experimental drug, known as GNTI, to treat type II diabetes. Tomlinson claimed investors would receive a substantial payment once Neurendo’s drug rights were purchased by a major pharmaceutical company. In reality, Tomlinson used the majority of investor funds to support his family’s lavish lifestyle, which included maintaining a personal property in Bay Harbor, Mich., and annual dues at the Bay Harbor Golf Club and Bay Harbor Yacht Club.
Tomlinson, 69, of Hoffman Estates, pleaded guilty earlier this year to one count of wire fraud. U.S. District Judge Rebecca R. Pallmeyer 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; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
“Simply put, Tomlinson scammed for his own benefit without any regard for his investors, who trusted him with their funds to invest and use those funds to capitalize and fund the company’s operations,” Assistant U.S. Attorney Sunil Harjani argued in the government’s sentencing memorandum. “This was not a one-time mistake in judgment, but rather a calculated course of conduct with much aforethought.”
Evidence in the case revealed that Tomlinson misappropriated at least $100,000 in investor money to fund his own futures trading account, and $33,000 to make donations to the Washington National Cathedral. In addition to the Michigan property, Tomlinson used investor funds to make mortgage payments on a property in the Georgetown neighborhood of Washington, D.C.
When pocketing the money, Tomlinson made dozens of cash withdrawals of slightly less than $10,000 each from Neurendo’s bank account. The structured withdrawals were made in an effort to avoid federal reporting rules, which require financial institutions to notify the U.S. Department of the Treasury about transactions of more than $10,000.
Former Owner of Chicago Medical Clinic Guilty of Selling Opioid Prescriptions to Patients Who Lacked Medical Need for the DrugsRead the Press Release
CHICAGO — The former owner of a Chicago medical clinic admitted in federal court today that he sold opioid prescriptions to patients whom he knew lacked a legitimate medical need for the drugs.
MOHAMMED SHARIFF, who owned Midtown Medical Center in Chicago’s Uptown neighborhood, conspired with a physician to sell oxycodone, hydrocodone, and other medications to patients whom they knew lacked a medical reason for taking the drugs, according to a plea agreement filed today in U.S. District Court in Chicago. At Shariff’s direction, the physician, DR. THEODORE GALVANI, wrote prescriptions for the powerful opioids without conducting an appropriate physical examination or performing any medical tests, the plea agreement states. Dr. Galvani often met with more than 70 patients per day, sometimes seeing them in groups of two or more at the same time, the plea agreement states. At Shariff’s direction, a “crew leader” often organized groups of people to see Dr. Galvani and obtain opioid prescriptions from him, the plea agreement states.
Shariff, 68, of Lincolnwood, pleaded guilty to one count of conspiracy to knowingly dispense controlled substances outside the usual course of professional practice and without a legitimate medical purpose. The charge carries a maximum prison sentence of 20 years and a maximum fine of $1 million. U.S. District Judge Harry D. Leinenweber set sentencing for March 19, 2019.
Dr. Galvani, of Spring Grove, previously pleaded guilty to drug conspiracy charges. He is awaiting sentencing.
Shariff’s guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Health and Human Services Office of Inspector General. The government is represented by Assistant U.S. Attorneys Peter M. Flanagan and Andrew C. Erskine.
According to Shariff’s plea agreement, individuals paid $100 to $200 in cash to Shariff and Galvani in exchange for the improper prescriptions. For individuals insured by Medicare, Shariff and Dr. Galvani prescribed the opioids and then submitted or caused others to submit false claims to Medicare, seeking reimbursement for purported office visits with those individuals, the plea agreement states. From February 2012 to March 2013, Shariff and Dr. Galvani received a total of at least $584,188 through the improper prescription scheme, the plea agreement states. Shariff admitted that he personally kept at least $292,094 as his share of the proceeds. Shariff further admitted that, during the same period of time, he and Dr. Galvani together were responsible for prescribing more than two kilograms of oxycodone, more than 595,000 hydrocodone pills, and more than 190,000 alprazolam pills (commonly known as Xanax), to individuals whom they knew had no legitimate medical need for those drugs.
In addition to the improper prescriptions, Shariff admitted in his plea agreement that he attempted to carry out a separate fraud scheme involving a home health care company that he owned, Elgin-based Home Health Resource LLC. In a May 2016 meeting in Chicago, Shariff offered to pay an unidentified physician $500 each time the doctor certified a Medicare beneficiary as eligible for home health care and referred the patient to Shariff’s company, the plea agreement states. Unbeknownst to Shariff, the doctor was cooperating with law enforcement, and their conversation was surreptitiously recorded. During the meeting, Shariff claimed that he arranged for his home health company’s employees to conceal the fact that their clients were not truly eligible for home health services. Shariff told the cooperating physician that he instructed nurses at the company to “tell the patient you are homebound,” and that “when the doctor come, don’t say that you go out and drive and this and that. Don’t tell anybody you drive, don’t tell anybody you’re taking the bus, even going to the groceries. If anybody asks, ‘I stay home. I’m homebound.’”
Federal Grand Jury Indicts Doctor for Allegedly Approving Medically Unnecessary Tests Billed to MedicareRead the Press Release
CHICAGO — A federal grand jury in Chicago has indicted a physician on fraud charges for allegedly approving medically unnecessary diagnostic tests that were billed to Medicare.
While working for Chicago-based Grand Medical Clinic Inc., DR. OMAR GARCIA prescribed and authorized ultrasounds, percutaneous allergen tests and nerve transmission tests for numerous Medicare beneficiaries, knowing that the in-home tests were not medically necessary. In some instances, Dr. Garcia approved the tests after they had already been completed, the indictment states. Dr. Garcia and others submitted or caused to be submitted fraudulent claims to Medicare for payment of the unnecessary tests, the indictment states.
The indictment was returned Thursday in U.S. District Court in Chicago. It charges Dr. Garcia, 51, of Ocala, Fla., and formerly of Illinois, with six counts of health care fraud. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General; and Martin J. Dickman, Inspector General of the U.S. Railroad Retirement Board. The U.S. Office of Personnel Management and the U.S. Food and Drug Administration provided valuable assistance. The government is represented by Assistant U.S. Attorney Stephen Chahn Lee.
The indictment alleges that Dr. Garcia’s fraud scheme began in 2011 and continued until 2015. Dr. Garcia and others submitted the fraudulent bills from multiple medical entities in an attempt to reduce the volume of billing by any single company and minimize scrutiny from Medicare, the indictment states. After the entities received payments from Medicare, Dr. Garcia was paid via checks reflecting his percentage of the payments, the indictment alleges.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count in the indictment 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.