Northern District of Illinois
Press releases recorded for this federal judicial district.
Chicago Woman Sentenced to Nearly 4 Years for Multi-Million Dollar Fraud Involving Bogus Event Ticket BusinessRead the Press Release
CHICAGO — A Chicago woman has been sentenced to nearly four years in federal prison for operating a multi-million dollar fraud scheme that duped investors into believing she could earn profits on the secondary market for concert and sports tickets.
TRACY MONTI fraudulently obtained more than $5 million from investors by misrepresenting that she could purchase tickets for sporting events and concerts from primary market sources at face value or at a discount through purported connections in the event business and then re-sell the tickets for a profit on the secondary market. In reality, Monti used the victims’ funds to purchase various items for herself, including a house in Chicago, a Dodge Challenger, tattoos, vacations, and shopping sprees at Victoria’s Secret and Neiman Marcus. Monti also made Ponzi-type payments to early investors.
Monti, 44, pleaded guilty earlier this year to one count of wire fraud. U.S. District Judge Manish S. Shah on Tuesday sentenced Monti to 46 months in prison and ordered her to pay $4,997,958 in restitution to victims.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Gabriel L. Grchan, Special Agent-in-Charge of the Chicago office of the Internal Revenue Service Criminal Investigation Division.
The fraud scheme began in 2010 and continued until 2015. Monti misrepresented to investors that she had business relationships with multiple primary sources, such as event promoters and venues, through which she could purchase tickets at face value before re-selling them for a profit. Those relationships did not actually exist. Monti victimized more than ten investors, one of whom took money out of his pension to invest in Monti’s scam.
“This case involves a brazen and merciless scheme to defraud,” Assistant U.S. Attorney Sheri H. Mecklenburg argued in the government’s sentencing memorandum. “Defendant cast a wide net, seeking victims wherever and whenever she could.”
Former Manager at Pace Bus Service Sentenced to a Year and a Day in Federal Prison for Pocketing Nearly $300,000 in KickbacksRead the Press Release
CHICAGO — A former manager for the suburban bus agency Pace has been sentenced to a year and a day in federal prison for pocketing nearly $300,000 in gratuities and kickbacks from contractors.
From 2010 to 2014, RAJINDER SACHDEVA used his position as a department manager at Pace to corruptly demand and accept nearly $300,000 in gratuities and kickbacks from IT contractors. In exchange, Sachdeva exerted his influence to hire or continue to engage the contractors at Pace. Sachdeva concealed this arrangement from Pace by having the payments flow through companies that he controlled.
Sachdeva, 54, of Schaumburg, pleaded guilty earlier this year to one count of solicitation of bribes and gratuities by an agent of a federally funded organization. U.S. District Judge Sara L. Ellis on Friday sentenced Sachdeva to a year and a day in federal prison.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Andrea M. Kropf, Regional Special Agent-in-Charge of the U.S. Department of Transportation, Office of Inspector General. Pace provided valuable assistance in the investigation.
“Public corruption is a significant problem in this district, and the defendant’s corrupt behavior is the type that erodes the public’s confidence in public agencies,” Assistant U.S. Attorneys Matthew F. Madden and Erika Csicsila argued in the government’s sentencing memorandum. “The defendant repeatedly used his position at a transportation agency to line his own pockets.”
Sachdeva served as the Department Manager of Applications for Pace, which is the suburban bus division of the Regional Transportation Authority. In that role, he oversaw the implementation of information technology used by Pace to support its various business units, such as human resources, accounting, purchasing, payments, and grant writing. Pace contracted with outside vendors who provided on-site and remote IT support to Pace, and Sachdeva ultimately supervised those contractors and reviewed and approved their timesheets. In exchange for the influence he exerted in placing or maintaining certain IT contractors at Pace, Sachdeva solicited and received $292,708 in gratuities and kickbacks from the contractors.
Federal Jury Convicts Chicago Doctor on Fraud Charges for Billing Insurance Companies for Nonexistent TreatmentRead the Press Release
CHICAGO — A federal jury has convicted a Chicago doctor on fraud charges for billing insurance companies for purported chiropractic manipulations that were never performed.
DR. PAUL MADISON, an anesthesiologist and pain management specialist, owned Watertower SurgiCenter LLC, an outpatient surgical center on North Michigan Avenue in Chicago. From 2005 to 2009, Dr. Madison directed Watertower’s billing staff to submit false bills to insurers for manipulation-under-anesthesia of body parts that chiropractors at Watertower had not actually performed. As part of the scheme, Dr. Madison and others falsified patient records to support the fraudulent health insurance claim forms. Dr. Madison then caused these fraudulent claims to be submitted to patients’ insurance companies for payment.
The jury in federal court in Chicago on Thursday convicted Dr. Madison, 65, of Chicago, on all eleven counts against him. The conviction includes six counts of health care fraud, three counts of making false statements in connection with the delivery of health care services, and two counts of aggravated identity theft. U.S. District Judge Robert M. Dow, Jr., set sentencing for March 25, 2019.
The verdict 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 James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago. The government is represented by Assistant U.S. Attorneys Edward G. Kohler and Jennie Levin.
Watertower SurgiCenter was an outpatient surgical center where a variety of medical and chiropractic procedures were performed, including manipulations-under-anesthesia. An MUA involves chiropractic adjustments on patients who had been anesthetized. Evidence at trial revealed that Dr. Madison disguised Watertower’s fraudulent billing by creating false medical and billing records. In at least two instances, Dr. Madison included in the fraudulent billings the names, addresses and dates of birth of patients without their knowledge.
Each count of health care fraud is punishable by a maximum sentence of ten years in prison, while the false statement counts each carry a maximum penalty of five years. Each aggravated identity theft count carries a mandatory consecutive sentence of two years. The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
Federal Grand Jury Indicts Chicago Man for Allegedly Committing Murder to Maintain and Increase Position in Violent Street GangRead the Press Release
CHICAGO — A Chicago man sought to maintain and increase his position in a violent street gang when he fatally shot a man in a South Side store two days before Christmas in 2014, according to a federal indictment unsealed today.
PIERRE ROBINSON, 25, of Chicago, is charged with committing murder in aid of racketeering. He pleaded not guilty today at his arraignment in U.S. District in Chicago. A status hearing was scheduled for Dec. 19, 2018, at 9:00 a.m., before U.S. District Judge John J. Tharp, Jr.
The indictment accuses Robinson of murdering Glenn Houston on Dec. 23, 2014, for the purpose of maintaining and increasing Robinson’s position in the Evans Mob street gang. Houston, 23, was fatally shot inside a store in the 400 block of East 79th Street in Chicago’s Chatham neighborhood.
The indictment 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 Eddie Johnson, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorneys Vikas Didwania and Rajnath Laud.
The indictment alleges that the Evans Mob, also known as “GuttaGang,” is a criminal organization whose members and associates engaged in narcotics trafficking and committed acts of violence, including murder, attempted murder and assault, to acquire and preserve the gang’s territory on the South Side of Chicago. Members of the Evans Mob publicly claimed responsibility for their acts of violence, taunted rival gang members, and took steps to prevent law enforcement’s detection of criminal activities, according to the indictment.
The indictment accuses Robinson of intentionally murdering Houston after substantial planning and premeditation.
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. Murder in aid of racketeering is punishable by a mandatory sentence of life in prison, and the death penalty is also possible. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Federal Indictment Charges Suburban Man with Sex TraffickingRead the Press Release
CHICAGO — A Bellwood man has been indicted on a federal sex trafficking charge for allegedly recruiting a woman into prostitution.
ALBERT LARRY, JR., also known as “Junior,” 33, is charged with one count of sex trafficking. He pleaded not guilty today at his arraignment in U.S. District Court in Chicago. A detention hearing was scheduled for Dec. 3, 2018, at 10:30 a.m., before U.S. Magistrate Judge Michael T. Mason.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. Valuable assistance was provided by the Carol Stream Police Department and the Waukegan Police Department. The government is represented by Assistant U.S. Attorney Renai S. Rodney.
The indictment alleges that Larry violently forced the victim to engage in commercial sex acts from November 2016 to August 2017. Larry took photographs of the victim and posted them in online advertisements offering commercial sex, according to a federal affidavit previously filed in the case. Larry then rented Chicago-area hotel rooms that were used for encounters with individuals who responded to the advertisements, the affidavit states. After the encounters, Larry allegedly took most, if not all, of the money earned by his victim.
Larry faces a statutory minimum sentence of 15 years in prison and a maximum sentence of life in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines. The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
If 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.
Federal Court in Illinois Bars Tax Return Preparer and Business from Preparing Tax ReturnsRead the Press Release
A federal court in Chicago, Illinois, entered a permanent injunction against Leticia Rodriguez and Rodriguez Tax Services, barring them from preparing federal tax returns for others and owning a preparation business, the Justice Department announced today.
The court also ordered Rodriguez to disgorge $33,660, which it stated was "a reasonable approximation of the fees she earned for fraudulently reporting Child Care Expense claims on 187 of her clients' tax returns."
In its order, the court found that Rodriguez had continually and repeatedly prepared tax returns in violation of the Internal Revenue Code. Rodriguez prepared fraudulent federal tax returns for her customers by fabricating itemized deductions, falsifying self-reported income, and falsely claiming Child Care Expenses, according to the complaint filed by the United States in this case.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Champaign Man Pleads Guilty to Charges of Attempted Possession with Intent to Distribute Fentanyl and Heroin in RockfordRead the Press Release
ROCKFORD — A Champaign man pleaded guilty today in federal court in Rockford before U.S. District Judge Frederick J. Kapala to two drug trafficking charges.
SETH LASHAWN HUNTER, 46, pleaded guilty to one count of attempted possession with intent to distribute 100 grams or more of heroin, and one count of attempted possession with intent to distribute fentanyl.
Hunter has been in federal custody since his arrest on Nov. 8, 2018. Sentencing is set for May 10, 2019, at 9:30 a.m., before U.S. District Judge Phillip G. Reinhard in Rockford.
According to the written plea agreement, on June 20, 2018, Hunter arranged for an individual in Long Beach, Calif., to ship two packages containing narcotics to Hunter at the residences of two of Hunter’s family members in Rockford. One package contained approximately 250 grams of heroin, and the other package contained approximately 998 pills that were designed to look like pharmaceutically manufactured oxycodone but contained amounts of fentanyl and acetyl fentanyl. Hunter arranged for the packages to be delivered to fictitious persons at Hunter’s family members’ residences in Rockford via the U.S. Postal Service. Hunter admitted that he traveled to Rockford over the weekend of June 22-24, 2018, to retrieve the packages of narcotics, and that he intended to distribute the heroin and the pills containing fentanyl and acetyl fentanyl after he received the packages. Law enforcement officers, however, intercepted the narcotics before the two packages were delivered.
The guilty plea 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; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Department of Homeland Security – Homeland Security Investigations. The government is represented by Assistant U.S. Attorney Talia Bucci.
Attempted possession of 100 grams or more of heroin with intent to distribute carries a mandatory minimum penalty of five years in prison, a maximum penalty of up to 40 years in prison, a period of supervised release after imprisonment of at least four years, and a fine of up to $5 million. Attempted possession of a detectable amount of fentanyl carries a maximum penalty of 20 years in prison, a period of supervised release after imprisonment of at least three years, and a maximum penalty of $1 million. The sentence will be determined by the United States District Court, guided by the Sentencing Guidelines.
Suburban Chicago Man Sentenced to 15 Years in Federal Prison for Sexually Assaulting a Child in the PhilippinesRead the Press Release
CHICAGO — A suburban Chicago man has been sentenced to 15 years in federal prison for sexually assaulting a child in the Philippines.
DONALD SCOTT COLEMAN, 64, of Elgin, repeatedly sexually assaulted the child while visiting the child’s mother in the Philippines in the fall of 2012. Coleman met the mother online and had visited and stayed with her and the child in the Philippines on several occasions.
A federal grand jury in Chicago indicted Coleman on a charge of traveling in foreign commerce and engaging in illicit sexual conduct with a minor, and he pleaded guilty to the offense last year. U.S. District Judge Harry D. Leinenweber imposed the sentence Thursday in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. Substantial assistance was provided by the Elgin Police Department and the Philippine National Police.
“Other U.S. citizens considering traveling to foreign countries to engage in sexual activity with minors need to understand that if they engage in such conduct, it will not go unnoticed,” Assistant U.S. Attorney Erika L. Csicsila argued in the government’s sentencing memorandum. “It will not be tolerated. Rather, it will be met with swift and significant punishment by our criminal justice system.”
The investigation revealed that Coleman knew and, at times, cared for the child during visits to the Philippines from 2009 to 2012 to see the child’s mother. Coleman repeatedly assaulted the victim during a multiple-month visit in the fall of 2012. The victim suffered severe emotional and physical harm as a result of Coleman’s conduct.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678. The hotline is available 24 hours a day, seven days a week.
Convicted Felon Sentenced to More Than 7 Years in Federal Prison for Illegally Possessing Two Loaded Handguns in a Chicago ParkRead the Press Release
CHICAGO — A convicted felon has been sentenced to more than seven years in federal prison for illegally possessing two loaded semi-automatic handguns in a park in the Little Village neighborhood of Chicago.
LUIS REYNOSO possessed the guns on the afternoon of April 24, 2017, in Piotrowski Park, in the 4200 block of West 31st Street in Chicago. Reynoso also possessed four bags of marijuana and $345 in cash. Reynoso had previously been convicted of multiple felonies, including attempted murder, and was not legally allowed to possess a firearm.
Reynoso, 38, of Chicago, pleaded guilty earlier this year to one count of illegal possession of a firearm by a felon. U.S. District Judge Ronald A. Guzman on Tuesday sentenced Reynoso to seven years and eight months in federal prison.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Eddie Johnson, Superintendent of the Chicago Police Department.
“Firearms and firearm-related violence have plagued the City of Chicago for years, and a felon in possession of a firearm – like Reynoso – presents a risk and threat of violence to the community,” Assistant U.S. Attorney Timothy J. Storino argued in the government’s sentencing memorandum. “Reynoso’s illegal possession of a firearm is part of the larger cycle of illegal gun possession that fuels the gun violence in this city and continues to victimize all residents of the City of Chicago.”
Evidence in the case revealed that Reynoso stored the loaded handguns and some of the baggies of marijuana in a red bag, which he had with him in the park. When a law enforcement officer approached him, Reynoso left the bag and ran off, leading the officer on a foot chase along 31st Street. The officer eventually caught up with Reynoso and arrested him. The officer discovered the cash and a bag of marijuana on Reynoso’s person. The officer then walked Reynoso back to the red bag, which contained the two firearms and three additional baggies of marijuana.
Chicago Man Sentenced to More Than 8 Years in Prison for Assaulting Federal Agent After Armed RobberyRead the Press Release
CHICAGO — A Chicago man who pointed a loaded gun at a federal agent after an armed robbery on the South Side has been sentenced to more than eight years in federal prison.
After an armed robbery in Chicago’s South Deering neighborhood on Dec. 19, 2017, NICHOLAS HERMON pointed a loaded handgun at an agent from the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. Hermon was later arrested.
Hermon, 24, of Chicago, pleaded guilty in August to one count of assault of a federal agent, and one count of brandishing a firearm during a crime of violence. U.S. District Judge Matthew F. Kennelly on Tuesday sentenced Hermon to eight years and three months in federal prison.
The sentence 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 ATF; and Eddie Johnson, Superintendent of the Chicago Police Department.
“The defendant’s firearm was loaded with 15 rounds of ammunition with one round in the chamber ready to be fired,” Assistant U.S. Attorney Christopher V. Parente argued in the government’s sentencing memorandum. “The defendant and his associates are incredibly fortunate that there was no loss of life in this case.”
According to evidence in the case, Hermon participated in the robbery of two individuals who sought to illegally purchase an assault rifle from Hermon and an associate, JOSHUA GENTRY. Unbeknownst to Hermon and Gentry, one of the buyers was a confidential source working at the direction of the ATF, and agents were conducting surveillance of the deal in the 10100 block of South Oglesby Avenue. After the confidential source handed Gentry $1,800 in cash, Hermon, who had been hiding out of sight, appeared and pointed the handgun at the confidential source. The source and the other buyer ran off, and ATF agents appeared, announced themselves, and commanded Hermon and Gentry to surrender. Hermon and Gentry ignored the command and fled through a nearby yard. During the pursuit, Hermon turned and pointed the handgun at the agent. Hermon was later arrested.
Officers also pursued Gentry, who at one point aimed the loaded assault rifle at one of the officers giving chase. Gentry was later taken into custody. Gentry, 22, pleaded guilty to one count of robbery of government funds, and one count of using a firearm during a crime of violence. Last week, Judge Kennelly sentenced Gentry to seven years and one day in federal prison.
Rockford Man Arrested on Drug Trafficking ChargesRead the Press Release
ROCKFORD — A Rockford man was arrested this morning on drug trafficking charges.
JOSE TREJO, 28, was indicted on Nov. 6, 2018, on one count of conspiracy to possess with intent to distribute - and to distribute - 500 grams or more of cocaine in Rockford between July 8, 2017, and June 20, 2018, and five counts of distributing quantities of cocaine on July 8, 2017, July 13, 2017, Aug. 5, 2017, Sept. 11, 2017, and Sept. 26, 2017. Trejo is scheduled to appear in federal court in Rockford for an initial appearance and arraignment today at 2:00 p.m.
The conspiracy count carries a mandatory minimum penalty of five years in prison and a maximum penalty of up to 40 years in prison, a period of supervised release of at least four years and up to life, and a fine of up to $5 million. Each distribution count carries a maximum penalty of up to 20 years in prison, a period of supervised release of at least 3 years and up to life, and fine of up to $1 million. 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 entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The arrest 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 Division of the United States Drug Enforcement Administration; Dan O’Shea, Rockford Police Chief; Gary Caruana, Winnebago County Sheriff; and Leo P. Schmitz, Director of the Illinois State Police. The federal investigation was conducted by the DEA Rockford Task Force, Rockford Police Department, Illinois State Police Stateline Area Narcotics Team (SLANT), and Winnebago County Sheriff’s Department. Homeland Security Investigations assisted in the investigation.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Trader Sentenced to 15 Months in Federal Prison for Misappropriating $1.1 Million in CryptocurrenciesRead the Press Release
CHICAGO — In the first criminal prosecution in Chicago involving the cryptocurrency trading industry, a federal judge has sentenced a trader to 15 months in prison for misappropriating $1.1 million in Bitcoin and Litecoin.
Over a two-month period in the fall of 2017, JOSEPH KIM, 24, of Phoenix, Ariz., misappropriated at least $600,000 of his trading firm’s Bitcoin and Litecoin cryptocurrency for his own personal benefit. At the time, Kim worked in Chicago as an assistant trader for Consolidated Trading LLC, a proprietary trading firm that had recently formed a cryptocurrency group. After being terminated by Consolidated, Kim engaged in another fraud scheme in which he incurred $545,000 in losses by trading cryptocurrencies on behalf of at least five investors, including friends and friends of friends who had invested retirement savings. Four of Kim’s victims testified about their losses at the sentencing hearing Friday before U.S. District Judge Andrea R. Wood in Chicago.
When Kim was charged earlier this year, the federal prosecution marked the first criminal case in Chicago involving the cryptocurrency trading industry. Kim pleaded guilty in May to one count of wire fraud.
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. Substantial assistance was provided by the Commodity Futures Trading Commission, which filed its own enforcement action against Kim.
“It is important that the public know that despite the complexity of cryptocurrency trading, the criminal justice system will hold traders and investment professionals accountable for cheating and stealing,” Assistant U.S. Attorneys Sunil Harjani and Sheri Mecklenburg argued in the government’s sentencing memorandum.
According to the charges, Kim transferred large sums of Consolidated’s Bitcoin and Litecoin to personal accounts to cover his losses trading cryptocurrency futures on foreign exchanges. In order to conceal the transfers, Kim lied to the firm’s management about the location of the company’s cryptocurrency and his trading of the company’s cryptocurrency.
After Consolidated’s management team discovered the misappropriation and terminated him, Kim solicited funds from friends and friends of friends to trade cryptocurrencies. Kim told these investors that he had voluntarily left Consolidated, and he concealed the fact that he was fired for misappropriation. He also sent investors false account statements that showed his initial trading of their funds was profitable, when, in reality, Kim’s trades were experiencing substantial losses.
Eight Individuals Charged in Related Schemes to Fraudulently Obtain Unemployment BenefitsRead the Press Release
CHICAGO — Eight defendants schemed to obtain unemployment benefits in the names of hundreds of individuals whose personally identifiable information was used without their knowledge, according to federal indictments unsealed in Chicago.
The indictments describe two related fraud schemes carried out over parts of three years. In one of the schemes, an employee of a health care provider in suburban Oak Lawn allegedly accessed the names, dates of birth and Social Security numbers of patients without their knowledge and provided the information to co-schemers. The patients’ information was then used to file fraudulent claims for unemployment insurance benefits through the Illinois Department of Employment Security, the charges allege.
The two indictments were unsealed last week in U.S. District 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; James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor, Office of Inspector General; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. Substantial assistance was provided by IDES, the Chicago Police Department, and the Matteson Police Department. The government is represented by Assistant U.S. Attorneys Matthew L. Kutcher and Nathalina Hudson.
U.S.A. v. Pitts, et al (18 CR 743)
This indictment charges six defendants with participating in a scheme to file or cause to be filed at least 450 fraudulent unemployment insurance claims in the names of other individuals, including the patients from the Oak Lawn health care provider. The health care provider’s employee, ASHLEY WEATHERSBY, 33, of Blue Island, provided the patients’ information to BRANDON PITTS, 29, of University Park, and COREY LOGSDON, 31, of Los Angeles, Calif., who used it to file for benefits through the IDES website, the indictment states. The claims falsely represented that the applicants were eligible for the benefits because their purported employers had terminated them without fault, according to the charges.
It was further part of the plan that, in exchange for money, three co-schemers – KOREY ISBELL, 31, of Van Nuys, Calif., YOSHIMI HENRY, 29, of South Holland, and KEWAN WATTS, 34, of Dolton – provided addresses to Pitts and Logsdon for the IDES to mail debit cards containing the unemployment funds, the indictment states. From November 2013 to December 2015, the six defendants caused IDES to issue approximately $1 million in fraudulent benefits, the indictment states.
The six defendants are charged with participating in a mail or wire fraud scheme, which is punishable by up to 20 years in prison. The indictment also charges Weathersby, Pitts and Logsdon with aggravated identity theft, which is punishable by a mandatory two-year prison sentence. Pitts, Yoshimi Henry and Watts pleaded not guilty at their arraignments in U.S. District Court in Chicago. Arraignments for the other defendants have not yet been scheduled.
U.S.A. v. Anthony Henry, et al (18 CR 726)
This indictment charges two defendants – ANTHONY HENRY, 28, of Chicago, and JEROME PACE, 34, of Chicago – with scheming to file unemployment insurance claims in the names of individuals without their knowledge and consent. From January 2013 to January 2016, Anthony Henry and Pace obtained the personally identifiable information of hundreds of individuals, including names, addresses, Social Security numbers, and dates of birth, the indictment states. Anthony Henry and Pace allegedly caused the IDES to issue benefit funds via debit cards mailed to addresses in Chicago, Matteson, and Calumet City. The indictment charges Anthony Henry and Pace with participating in a mail fraud scheme, which is punishable by up to 20 years in prison, and knowingly possessing the information of other persons for purposes of committing a felony, which is punishable by up to 15 years in prison.
Pace is also charged individually in the indictment with wire fraud, which is punishable by up to 20 years in prison, for allegedly causing the filing of false federal income tax returns for the tax year 2014. The returns were filed on behalf of various individuals who were unaware that their personal identifying information was being utilized to file income tax returns, the indictment states. The returns fraudulently claimed income tax refunds from the IRS of more than $432,000, the indictment states.
Anthony Henry and Pace pleaded not guilty at arraignments on Nov. 7, 2018, in U.S. District Court in Chicago.
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The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Bookkeeper at Two West Loop Restaurants Sentenced to More Than Two Years in Federal Prison for Misappropriating More Than $600,000Read the Press Release
CHICAGO — A former bookkeeper for two restaurants in the West Loop neighborhood of Chicago was sentenced today to more than two years in federal prison for misappropriating more than $600,000 from the eateries.
RENEE M. JOHNSON worked as a bookkeeper for One Off Hospitality LLC, which owns several bars and restaurants in Chicago, including the West Loop eateries Blackbird and Avec. Johnson was a signatory on One Off’s bank accounts, and her duties included processing checks to vendors who provided food, labor and utilities to the restaurants. Johnson wrote hundreds of unauthorized checks from One Off’s accounts to pay personal expenses, including credit cards and mortgages on real estate holdings in Chicago. From 2011 to 2017, the scheme caused a loss of $604,113, mostly sustained by Blackbird and Avec.
Johnson, 61, of Chicago, pleaded guilty in July to one count of mail fraud. In addition to a 28-month prison sentence, U.S. District Judge Virginia M. Kendall ordered restitution of $604,113.
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.
“Renee Johnson cooked the books of her employer and stole over $600,000 for over six years,” Assistant U.S. Attorney Sunil R. Harjani argued in the government’s sentencing memorandum. “Johnson abused the trust and discretion that was given to her by One Off.”
According to the charges, Johnson made fraudulent entries in One Off’s accounting system to hide the theft. She often made a check payable to a personal creditor, but deleted the entry in One Off’s system. In some instances, Johnson cut a check to pay personal expenses, and then quickly cut a new check with the same check number to pay for a legitimate corporate expenditure.
U.S. Attorney’s Office Announces Progress in Making Communities Safer Through Multiple Targeted Strategies to Combat Violent CrimeRead the Press Release
CHICAGO — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today announced progress in combatting violent crime through a series of targeted strategies as part of the Department of Justice’s revitalized Project Safe Neighborhoods initiative.
One year ago, the Department of Justice announced the revitalization and enhancement of PSN, an evidence-based program that the Department made the centerpiece of its violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch has employed the enhanced PSN program to tackle the full spectrum of violent crime issues facing the district. Northern District of Illinois prosecutors target criminal organizations, leading to prosecutions of complex RICO, narcotics, and drug trafficking enterprises. The PSN program also identifies criminals with the most violent backgrounds and removes them from the community through prosecution of individual violent crime, drug, and firearm possession cases. Resources are also invested in local prevention and reentry programs that seek to implement lasting reductions in crime through community engagement.
“A fundamental duty of our government is to keep people safe, and one of our primary goals as federal prosecutors is to reduce violent crime, particularly in large urban areas like Chicago,” said U.S. Attorney Lausch. “As part of DOJ’s revitalized PSN program, we have worked closer than ever with federal, state, and local law enforcement partners to increase prosecutions of trigger-pullers, drug traffickers, carjackers, and those who illegally use and possess firearms. We will use every available federal law enforcement tool to reduce the unacceptable level of violent crime and help keep our citizens safe.”
The PSN program has enabled the U.S. Attorney’s Office to sustain and expand upon its recent increase in the prosecution of violent crime and gun offenders. For example, during each of the last two fiscal years, the U.S. Attorney’s Office has charged more federal firearms offenses than were charged in any prior fiscal year for more than a decade. Crime statistics from the Chicago Police Department (CPD) reveal significant reductions in violent crime in Chicago in the past year. Through Oct. 31, 2018, Chicago has seen 107 fewer murders (a reduction of 19%) and 387 fewer shootings (a reduction of 16%) compared to 2017.
“While we are making progress, we realize that a great deal of work remains to be done to attack our stubborn violent crime problem in Chicago,” said U.S. Attorney Lausch.
Through enforcement actions and community partnerships, the U.S. Attorney’s Office works to reduce violent crime and make neighborhoods safer for everyone.
Enforcement Actions
Over the past year, the U.S. Attorney’s Office has worked tirelessly with its federal, state, and local law enforcement partners to investigate and prosecute criminal organizations and individuals who commit violent crime across the Chicago area. The office works closely with U.S. law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), the U.S. Postal Inspection Service (USPIS), the Internal Revenue Service (IRS), and the U.S. Marshals Service (USMS) to investigate and prosecute violent offenders. Our key state and local partners in this effort include the Chicago Police Department (CPD), the Illinois State Police (ISP), the Illinois Department of Corrections (IDOC), the Cook County State’s Attorney’s Office, and numerous county and local police departments and municipalities throughout the district.
“The thriving partnership we have with federal, state, and local law enforcement is essential to our collaborative efforts to combat violent crime,” said U.S. Attorney Lausch. “Our goal for the remainder of 2018 and into 2019 is to continue to bring to justice those offenders who commit drug, gun, and violent offenses in our neighborhoods.”
During the past year, the U.S. Attorney’s Office has prosecuted hundreds of defendants for violent crimes, firearms offenses, and drug trafficking, including:
RICO Prosecutions
- Last month, a joint federal and state investigation resulted in racketeering and murder charges against five alleged members of a Chicago street gang faction known as the Goonie Boss. The charges allege that Goonie members and their associates terrorized the Englewood neighborhood on Chicago’s South Side and were responsible for eleven murders, six attempted murders, and two assaults. The U.S. Attorney’s Office worked closely in the multi-year investigation with the FBI, CPD, and Cook County State’s Attorney’s Office.
- In February 2018, more than 30 alleged high-ranking members of the Latin Kings street gang were charged with participating in a racketeering conspiracy in a case investigated by the FBI, CPD, and several other state and local law enforcement agencies under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF). The indictment charged numerous acts of violence, including six murders and three attempted murders in Chicago and the surrounding area.
Firearm Trafficking and Firearm Theft Prosecutions
- A Kentucky man and two Illinois men were charged in May 2018 in an alleged scheme to purchase dozens of guns in Kentucky and illegally re-sell them in Chicago. Many of the guns were later recovered by law enforcement during criminal investigations. ATF, CPD, and ISP participated in the investigation as part of a High Intensity Drug Trafficking Area (HIDTA) Task Force.
- In January 2018, an Indiana man was sentenced to eight years in federal prison for bringing firearms into Illinois from Indiana and illegally selling them.
- One defendant was sentenced in May 2018 to seven and a half years in federal prison, while another was sentenced in November 2017 to eleven years, in connection with the theft of more than 100 guns from a cargo train. The investigation, led by ATF and CPD, resulted in the conviction of eleven individuals involved in the theft.
- Two Chicago men were indicted last month by a federal grand jury in Memphis for stealing 366 firearms from a shipping facility in Tennessee and transporting them to the Chicago area. The U.S. Attorney’s Office in Chicago provided assistance to the U.S. Attorney’s Office in Memphis, ATF, the FBI’s Cargo Theft Task Force, the Midlothian, Ill., Police Department, and the Memphis Police Department.
- After an investigation by CPD, ATF, and FBI, a Chicago woman was indicted last month for allegedly straw purchasing handguns in Indiana on behalf of a convicted felon in Chicago, whom the woman knew could not legally purchase or possess a firearm.
Carjacking Prosecutions
- Federal carjacking and gun charges were brought against two teenagers in March 2018, after they allegedly stole a sport-utility vehicle at gunpoint in the Goose Island neighborhood of Chicago. The case was investigated by the Chicago 11th District Violent Crimes Task Force, which consists of agents and officers from the FBI, CPD, ATF, DEA, and HSI.
- Based on work by CPD and ATF, federal charges were brought in April 2018 against a Chicago man for allegedly taking multiple vehicles at gunpoint in various neighborhoods of Chicago. In the indictment, the defendant was charged with five counts of carjacking or attempted carjacking, and five counts of using, brandishing, or discharging a firearm during a crime of violence.
Illegal Possession of Firearm Prosecutions
As part of PSN, the U.S. Attorney’s Office works directly with local police and state prosecutors to identify offenders in the most violent areas in our district, including neighborhoods on the west and south sides of Chicago. The office adopts many of these cases for federal prosecution. As noted above, over the past two years, the U.S. Attorney’s Office has increased its prosecution of illegal possession of firearms cases. More than 195 individuals were charged with federal gun crimes in Fiscal Year 2018, according to preliminary data.
“If you are a felon and you are caught with a gun in one of the high-crime neighborhoods in Chicago or elsewhere in the district, you should expect to be prosecuted to the fullest extent of the law, and face the possibility of going to federal prison for a long time,” said U.S. Attorney Lausch.
Examples of felon-in-possession sentencings in federal court over the past year include:
- DEMONE RULE, of Chicago, and ALBERT DOWTHARD, of Rockford, were deemed Armed Career Criminals after previously being convicted of several felonies. Rule, whose criminal history includes convictions for drug trafficking and attempted murder, was sentenced to 19 years in federal prison, while Dowthard, who was previously convicted of multiple domestic battery offenses, was sentenced to 15 years.
- RICARDO BURGOS, previously convicted of aggravated battery of a peace officer and aggravated robbery, was also an aspiring rapper known as “Nation.” Police arrested him in Chicago in possession of a firearm that Burgos brandished while filming a rap video. The same .45 caliber semiautomatic pistol had been used in a shooting just two days prior to his arrest. Burgos was sentenced in January 2018 to 15 years in federal prison.
- MAURICE WALKER, of Chicago, was sentenced in August 2018 to more than six years in federal prison for illegally possessing a loaded handgun equipped with a laser sight. Walker was arrested after initially attempting to flee from police.
- JAMES HARRISON, a convicted felon from Chicago and a member of a street gang, was sentenced in August 2018 to more than six years in federal prison for illegally possessing an AR-15 assault rifle and a handgun with a laser sight and extended magazine.
- TARNCHE HULL, of Chicago, was sentenced in January 2018 to more than five years in federal prison for illegally possessing a loaded handgun. Hull had previously been convicted of crimes more than 20 times, including three firearm-related convictions.
- QUINTREL MOORE, of Chicago, was sentenced in November 2017 to more than five years in federal prison for illegally possessing a loaded semiautomatic pistol while on parole for a state drug conviction. Tests performed by ATF’s National Integrated Ballistic Information Network (NIBIN) showed that the gun was linked to three separate shootings within seven months, all occurring near the location of Moore’s arrest in the Austin neighborhood of Chicago.
Last month, the Department of Justice announced that it is funding five additional violent crime prosecutors in the Northern District of Illinois. With these additional resources, U.S. Attorney Lausch is creating a Gun Crimes Prosecution Team to enhance the prosecution of illegal firearm cases in certain police districts in Chicago. Working collaboratively with federal and local law enforcement, the new unit will focus on charging Chicago’s most dangerous criminals quickly after arrest, endeavoring to disrupt the cycle of violence in the neighborhoods most in need.
“We welcome the additional resources from the Department of Justice to strengthen our efforts to reduce violent crime,” said U.S. Attorney Lausch.
Narcotics Trafficking Prosecutions
The U.S. Attorney’s Office targets traffickers who bring illegal drugs into Illinois from other states or countries, with a particular focus on traffickers who use guns, violence and threats of violence to protect and promote their illegal businesses. The office also investigates and prosecutes large-scale dealers who distribute powerful opioids like fentanyl and heroin. Many of these investigations are conducted by OCDETF and HIDTA task forces, which involve teams of law enforcement agents and officers from multiple federal agencies and police departments working together to combat drug trafficking and its attendant violent crime in the Chicago area. In addition, the U.S. Attorney’s Office often works directly with the Cook County State’s Attorney’s Office to ensure that individuals selling drugs on the streets are charged with appropriate offenses in either federal or state court.
Recent examples of federal narcotics prosecutions include:
- Eleven defendants were charged in March 2018 with trafficking fentanyl, heroin and cocaine in Chicago’s Woodlawn neighborhood on the South Side. The OCDETF investigation involved extensive undercover and surveillance work, and resulted in the seizure of distribution quantities of the narcotics.
- A federal investigation into drug and gun trafficking in the west suburbs of Chicago led to charges in March 2018 against six defendants. Authorities seized four military-style assault rifles, three handguns, and several hundred rounds of ammunition. The U.S. Attorney’s Office worked closely with the FBI, CPD, Cook County Sheriff’s Police Department, Maywood Police Department, Illinois State Police, and Johnsburg Police Department.
- More than 12 individuals, including the owner of an auto body shop where drugs were stashed, were charged in April 2018 as part of an OCDETF investigation into alleged drug sales in Chicago’s Little Village and West Garfield Park neighborhoods. Authorities seized distribution quantities of heroin, fentanyl, MDMA pills and cocaine, as well as 12 illegal firearms, including an assault rifle.
- An Elmwood Park man was charged in May 2018 with importing fentanyl from China to sell in the Chicago area. This OCDETF investigation was led by DEA, FBI, and USPIS.
- The U.S. Attorney’s Office partnered with HSI for the June 2018 arrest of a man who allegedly sold a kilogram of fentanyl to an undercover law enforcement officer near Midway Airport on Chicago’s Southwest Side.
- More than 50 defendants were charged in June 2018 as part of a joint federal and state investigation into heroin and fentanyl sales on the West Side of Chicago. As part of the probe, law enforcement shut down two open-air drug markets in the city’s North Lawndale and East Garfield Park neighborhoods. Authorities seized three kilograms of heroin, a kilogram of cocaine, 230 grams of fentanyl, and eight illegal firearms, including a semi-automatic assault rifle with a drum barrel magazine.
- An investigation by the Rockford Area Violent Gang Task Force (RAVGTF) and the Winnebago County Sheriff’s Police led to drug conspiracy charges in July 2018 against six individuals for alleged heroin and crack cocaine sales in the Rockford area. RAVGTF includes members of the FBI and Rockford, Loves Park, and Freeport Police Departments.
- An OCDETF investigation led to federal or state charges in August 2018 against nine individuals in connection with alleged cocaine and heroin sales in Joliet. The charges allege that the leader of this drug trafficking organization is affiliated with the Joliet faction of the Black Gangster Disciples street gang.
- Two Chicago pharmacy technicians were charged in August 2018 as part of a DEA investigation with stealing 56,000 pills of Hydrocodone and selling them for a profit.
- Federal drug charges were brought in August 2018 against seven individuals for alleged heroin and cocaine sales in Freeport. The investigation was jointly conducted by the RAVGTF and the Stateline Area Narcotics Team (SLANT), which is a task force led by ISP and the Freeport Police Department.
- The leader of a network of drug dealers was sentenced in September 2018 to 35 years in federal prison for trafficking heroin and cocaine to Chicago from California aboard Amtrak trains.
- A CPD and HIDTA task force investigation led to federal or state charges in September 2018 against more than 25 individuals for allegedly selling fentanyl, fentanyl-laced heroin, or heroin in Chicago. The federal charges describe drug sales in the Tri-Taylor, Humboldt Park and West Garfield Park neighborhoods on the city’s West Side, as well as deals in the Chatham neighborhood on the South Side.
- A dozen defendants were charged last month with trafficking heroin on the West Side of Chicago in connection with an OCDETF investigation. During the probe, law enforcement seized one and a half kilograms of heroin, a half kilogram of crack cocaine, more than $892,000 in illicit cash proceeds, and a stolen handgun.
Community Partnerships
The revitalized PSN program continues to invest resources in many violence-prevention initiatives. Members of the U.S. Attorney’s Office participate in parolee forums and youth outreach forums.
The monthly parolee forums, also known as offender notification meetings, rotate among various Chicago neighborhoods. Recent parolees who have moved back into the neighborhoods are offered the chance to make an informed choice not to engage in further criminal activity. Researchers at Yale University found that ex-offenders who attend a forum are 30% less likely to commit a new offense than those who did not attend a forum.
The quarterly youth forums assist children aged 13-17 to identify a path other than gang membership. The youth forums are conducted in partnership with CPD, the Cook County Juvenile Temporary Detention Center, and the University of Chicago Crime Lab, which tracks the progress of the children to assess results.
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To learn more about Project Safe Neighborhoods, visit https://www.justice.gov/psn.
U.S. Attorney’s Office to Conduct Election Day MonitoringRead the Press Release
CHICAGO — The U.S. Attorney’s Office will monitor the federal, state and local elections in Chicago and surrounding suburbs on Nov. 6, 2018, John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, announced today.
As part of the monitoring effort, the office will operate a telephone hotline for citizens to report complaints related to the voting process. Assistant U.S. Attorneys and other office personnel will monitor the hotline and respond to complaints, as needed.
The hotline number, staffed on Election Day only, is (312) 469-6157.
“A crucial part of our democracy is the integrity of our electoral system,” said U.S. Attorney Lausch. “A citizen who is entitled to vote should not be hindered or prevented from doing so, and we stand ready to ensure the sanctity of the process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations wherever they occur. The Department’s longstanding Election Day Program seeks to ensure public confidence in the voting process.
Federal voting-rights laws protect the rights of voters to mark their own ballot or be assisted by a person of their choice. Actions designed to interrupt or intimidate voters at polling places may constitute a violation. Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. Violations carry penalties ranging from one to ten years in prison, and fines of up to $250,000.
For information as to the location and hours of polling sites, Illinois residents are advised to contact the Illinois State Board of Elections by logging on to www.elections.il.gov or by calling (312) 814-6440.
Four Health Care Professionals and a Personal Trainer Indicted for Allegedly Pocketing $6.5 Million for Nonexistent ServicesRead the Press Release
CHICAGO — Four Chicago-area health care professionals and a personal trainer have been indicted on federal fraud charges for allegedly scheming to pocket $6.5 million from private health and auto insurers for physical therapy, chiropractic and other services that were never rendered.
INESSA KATSNELSON, also known as “Inessa Blinov,” “Inessa Danuchevsky” and “Inna,” a personal trainer and singer who worked out of a gym in Northbrook, and MAYA YAKUBOVICH, a medical claims biller in Arlington Heights, recruited friends and family to permit their insurance companies to be falsely billed for nonexistent health care services purportedly rendered by suburban clinics operated by co-schemers, according to the 22-count indictment. In exchange, the friends and family had their insurance deductibles exhausted at no out-of-pocket expense to them, and many received free gym training sessions and massages, the indictment states.
From 2006 until last month, Katsnelson, 50, of Glenview, Yakubovich, 52, of Arlington Heights, and the other defendants – physical therapy center operator YAROSLAVA BOYKO, also known as “Yana Boyko,” 76, of Morton Grove, medical claims biller TETYANA VORONKINA, also known as “Tanya Voronkina,” 54, of Mundelein, and massage therapist VIKTOR DANCHUK, 57, of Roselle – and their co-schemers fraudulently obtained a total of at least $6.5 million from at least nine insurance companies, the indictment states.
The indictment was returned Tuesday in U.S. District Court in Chicago, charging the five defendants with health care fraud. Katsnelson is also individually charged in the indictment with aggravated identity theft for allegedly using the identifying information of a physician to create certain fraudulent claims. Arraignment for all five defendants is set for Nov. 8, 2018, at 9:30 a.m., before U.S. District Judge Sharon Johnson Coleman.
The indictment 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; James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor, Office of Inspector General; 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 Heather K. McShain and Matthew L. Kutcher.
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.
Aggravated identity theft is punishable by a mandatory sentence of two years in prison. Health care fraud is punishable by up to ten years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory United States Sentencing Guidelines.
Two Rockford Men Charged with Stealing Firearms from Licensed DealersRead the Press Release
ROCKFORD — Two Rockford men have been charged by a federal grand jury with firearms offenses.
KYLAND WILLIS, 20, and MARTAEVIEN Q. STEVENSON, 20, were each charged with one count of conspiracy to steal firearms from a licensed firearms dealer and to possess stolen firearms, one count of stealing firearms from a licensed firearms dealer, and one count of possessing stolen firearms. The indictment alleges that on Jan. 3, 2018, Willis, Stevenson, and a third individual broke into the store of a firearms licensee in Belvidere and stole approximately 29 firearms. The indictment further alleges that Willis, Stevenson, and a third individual attempted to break into the firearms licensee’s store again on Jan. 8 and Jan. 10, 2018.
Willis was also charged in a separate case with one count of conspiracy to steal firearms from a licensed firearms dealer and to possess stolen firearms, two counts of stealing firearms from the licensed firearms dealer, and two counts of possessing stolen firearms. The indictment in that case alleges that on Dec. 15, 2017, Willis broke into the store of a firearms licensee in Loves Park and stole approximately 11 firearms. The indictment further alleges that on Dec. 27, 2017, Willis and another individual broke into the store of the same firearms licensee and stole an additional 13 firearms. The indictment further alleges that Willis and the other individual also attempted to break into the store of another firearms licensee in Loves Park on Dec. 26, 2017.
The charges were 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 & Explosives. The investigation was conducted by ATF, the Loves Park Police Department, the Belvidere Police Department, and the Rockford Police Department. The Winnebago County Sheriff’s Office also assisted in the investigation. The government is represented by Assistant U.S. Attorney Talia Bucci.
Each conspiracy count carries a maximum potential penalty of up to five years’ imprisonment, followed by up to three years’ supervised release. Each count of possessing stolen firearms and stealing firearms from a licensed dealer carries a maximum potential penalty of up to ten years’ imprisonment, followed by up to three years’ supervised release. Each count alleged in the indictments also carries 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, and order full restitution.
Stevenson was arrested and appeared before U.S. Magistrate Judge Iain D. Johnston on Oct. 30, 2018, and pleaded not guilty. Stevenson’s detention hearing is scheduled for Nov. 1, 2018 at 2:30 p.m. Willis is currently in state custody on other charges and is scheduled to appear for arraignment on Nov. 15, 2018, at 11:00 a.m. before U.S. Magistrate Johnston.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
California Man Admits Traveling to Syria to Fight with Foreign TerroristsRead the Press Release
CHICAGO — A California man who traveled to Syria to take up arms with terrorists pleaded guilty today in federal court in Chicago to providing material support to a foreign terrorist organization and lying to U.S. immigration authorities.
AWS MOHAMMED YOUNIS AL-JAYAB, 25, of Sacramento, Calif., pleaded guilty to one count of providing material support to a foreign terrorist organization, and one count of knowingly providing a materially false statement to federal agents in a matter involving international terrorism. The material support charge is punishable by up to 15 years in prison, while the false statement charge is punishable by up to eight years. U.S. District Judge Sara L. Ellis set sentencing for April 26, 2019, at 11:00 a.m., in federal court in Chicago.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; McGregor Scott, United States Attorney for the Eastern District of California; John C. Demers, Assistant Attorney General for National Security; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Sean Ragan, Special Agent-in-Charge of the Sacramento office of the FBI. The government is represented by Assistant U.S. Attorneys Barry Jonas and Shoba Pillay of the Northern District of Illinois, Assistant U.S. Attorney Heiko P. Coppola of the Eastern District of California, and Trial Attorney D. Andrew Sigler of the National Security Division’s Counterterrorism Section.
The investigation was led by the Sacramento Joint Terrorism Task Force, which is comprised of FBI special agents and representatives from federal, state and local law enforcement agencies.
Al-Jayab admitted in a plea agreement that he flew from Chicago to Turkey in November 2013, and soon thereafter traveled into Syria, where he joined and fought with the designated foreign terrorist organization Ansar Al-Islam. He returned to the United States in January 2014, via Turkey and the United Kingdom. Upon his return in the United States, Al-Jayab’s Customs Declaration Form listed only Jordan and the U.K. in the “countries visited” field, without making any mention of his travel to Turkey and Syria, the plea agreement states.
Al-Jayab also admitted that he gave false statements to agents from the U.S. Citizenship and Immigration Services during an interview in October 2014. During the interview, Al-Jayab falsely stated that the purpose of his trip to Turkey was to visit his grandmother, and he denied supporting terrorist groups, the plea agreement states.
Leader of Chicago Street Gang and Several High-Ranking Members Charged with Multiple Murders After Joint Federal and State InvestigationRead the Press Release
CHICAGO — A joint federal and state investigation has resulted in racketeering and murder charges against five alleged members of a Chicago street gang faction known as the Goonie Boss. The charges allege that Goonie members and their associates terrorized the Englewood neighborhood on Chicago’s South Side and were responsible for a total of eleven murders.
A federal racketeering indictment returned Thursday in U.S. District Court in Chicago charges four of the alleged Goonie members with participating in a criminal organization that murdered its rivals, intimidated witnesses to crimes, and publicly boasted about their gang activities on social media. The federal racketeering indictment charges ten murders, six attempted murders, and two assaults. The four federal defendants are in custody, and their arraignments in federal court have not yet been scheduled.
A fifth Goonie member was charged in state court with committing the eleventh murder. He is in custody and will appear in Cook County Criminal Court at a later date.
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; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Eddie T. Johnson, Superintendent of the Chicago Police Department.
Federal RICO Indictment
The federal indictment charges four Goonie members with racketeering conspiracy: ROMEO BLACKMAN, 22; TERRANCE SMITH, 22; JOLICIOUS TURMAN, 27; and NATHANIEL MCELROY, 21; all of Chicago. The indictment describes Blackman as the leader of the gang who personally oversaw and directed its illegal activities.
The federal charges allege that the Goonie gang has been involved in a longstanding, violent feud with several rival gang factions in the Englewood neighborhood of Chicago. During this conflict, Goonie members and their associates allegedly murdered and assaulted rivals, stole firearms to arm themselves, and violently prevented witnesses from cooperating with law enforcement. Goonie members posted comments, photographs and videos on the Facebook Live application, openly proclaiming their membership in the gang and boasting about its violent acts, the indictment states.
The federal indictment accuses the Goonie gang of committing ten murders in Chicago in furtherance of the gang’s activities:
- Turman allegedly murdered Kenneth Whittaker, 34, on July 1, 2016, near an elementary school in the 7400 block of South Morgan Street.
- Members of Goonie Boss allegedly murdered Gerald Bumper, 19, on June 30, 2016.
- Turman allegedly murdered Ramal Hicks, 34, on June 20, 2016, outside of a store in the 1500 block of West 69th Street.
- Blackman and McElroy allegedly murdered Gerald Sias, 38, on May 26, 2016, inside a barber shop in the 1100 block of West 63rd Street.
- Blackman allegedly murdered Davon Horace, 19, on Jan. 15, 2016, in the 7200 block of South May Street.
- Blackman allegedly murdered Andre Donner, 26, on Dec. 13, 2015, in the 7200 block of South May Street.
- Blackman and Smith allegedly murdered Krystal Jackson, 25, on Nov. 19, 2014, in the 6800 block of South Loomis Boulevard.
- Blackman and Smith allegedly murdered Stanley Bobo, 18, on Oct. 23, 2014, in the 1400 block of West 72nd Street.
- Blackman allegedly murdered Alonzo Williams, 24, on March 21, 2014, in the 1200 block of West 70th Street.
- Blackman allegedly murdered Johnathon Johnson, 21, on Jan. 22, 2014, in the 6900 block of South Racine Avenue.
Racketeering conspiracy generally carries a maximum sentence of 20 years in prison, but a sentence of life in prison or the death penalty is possible for certain underlying racketeering activities, including certain murders charged in the indictment.
Assistant U.S. Attorney Albert Berry III of the Northern District of Illinois, and Cook County Assistant State’s Attorneys Yvette Loizon and Ethan Holland, who serve as Special Assistant U.S. Attorneys, represent the government in the federal case.
State Murder Charge
CHRISTIAN SIVELS, 19, of Chicago, is charged with first-degree murder in the killing of David Easley, 26, on May 21, 2016. Easley was shot and killed while walking in the 7000 block of South Carpenter Street in the Englewood neighborhood.
Sivels will appear at a later date in Cook County Criminal Court. The first-degree murder charge is punishable by a sentencing range of 45 years to life in prison. The People of the State of Illinois are represented by Assistant State’s Attorneys Michael Golden, Ethan Holland, Yvette Loizon and Maureen McCurry.
Other Charges as Part of Investigation
The joint federal and state investigation, which spanned multiple years, also resulted in separate charges against Blackman, McElroy and several other alleged Goonie members or associates for various firearm offenses:
In May 2017, Blackman and two others – RASHAD ANCHANDO and KEITH GULLENS – were charged in federal court with conspiring to steal firearms from a gun store in Streator, Ill. The trio allegedly stole a black Jeep Wrangler and used it in a smash-and-grab theft of 18 handguns, a rifle and a shotgun, according to the indictment in that case. Anchando, of Chicago, and Gullens, of Streator, Ill., pleaded guilty to their roles in the heist and were sentenced to prison terms of five years for Anchando and four years and six months for Gullens. Blackman has pleaded not guilty in that case and is awaiting trial.
In September 2017, McElroy and four others – CORNELIUS BATTLE, DALRICK DRAIN, REGINALD JOHNSON and LASHON MOORE – were indicted on federal firearms violations for allegedly conspiring to “straw purchase” handguns in Michigan and re-sell them in Chicago. Johnson, of Kalamazoo, Mich., pleaded guilty to dealing firearms without a license. He is awaiting sentencing. The four others have pleaded not guilty to the charges in that case and are awaiting trial.
In April 2018, convicted felon and Goonie member JAVONTE N. STOKES, of Chicago, pleaded guilty to illegal possession of a firearm. Stokes admitted possessing a loaded handgun in Calumet City, Ill., on March 17, 2017. Stokes was sentenced to six months in federal prison.
In March 2017, convicted felon and Goonie member QUINCY FERGUSON, of Waukegan, Ill., was charged in federal court with illegal possession of two rifles and two handguns in Waukegan. Ferguson pleaded not guilty and is awaiting trial.
In August 2017, BRENT TURPIN, of Chicago, was charged in federal court with supplying ammunition and gun accessories to a suspected gang member who was a convicted felon. Turpin pleaded not guilty and is awaiting trial.
Four alleged Goonie members and associates are charged in state court with murder related to acts of violence alleged in the federal RICO indictment: TREVANTE REED, 18; LAMAR ISAAC, 35; KWANTE HUGHES, 21; and DEMARCO BENNETT, 22; all of Chicago. All defendants charged in state court are in law enforcement custody.
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The public is reminded that charges contain only accusations and are 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.
Creston Man Indicted on Child Pornography ChargesRead the Press Release
ROCKFORD — A Creston man was indicted Thursday by a federal grand jury in Rockford on charges of child pornography.
ERIC CANCHOLA, 25, was charged with four counts of transporting child pornography via the internet between March and April 2018, and one count of possessing two iPods, a desktop computer, and two portable hard drives in May 2018 that contained an image of child pornography involving a prepubescent minor and a minor who had not attained 12 years of age.
Each count of transporting child pornography carries a mandatory minimum sentence of five years and a maximum of 20 years in prison, while possessing child pornography carries a maximum of up to 20 years in prison. Each count carries a $250,000 maximum fine. If Canchola is convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment was announced by John R. Lausch, Jr. United States Attorney for the Northern District of Illinois, and Jeffrey S. Sallet, Special Agent-in-Charge of the Federal Bureau of Investigation in Chicago.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Federal Grand Jury Indicts North Suburban Man on Child Pornography and Extortion ChargesRead the Press Release
CHICAGO — A federal indictment accuses a north suburban man of threatening to publish sexually explicit photos of an underage girl unless she created child pornography for him.
DAVID J. COTTRELL, 28, of Niles, is charged with two counts of transportation of child pornography, one count of extortion, one count of inducement of a minor to engage in illegal sexual activity, one count of attempting to produce child pornography, one count of production of child pornography, and one count of possession of child pornography.
Cottrell appeared Tuesday in federal court in Chicago before U.S. Magistrate Judge Michael T. Mason and was ordered detained in federal custody. A status hearing was set for Nov. 6, 2018, at 9:00 a.m., before U.S. District Judge Robert W. Gettleman. The indictment was returned Oct. 17, 2018, and Cottrell has pleaded not guilty to the charges.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The government is represented by Assistant U.S. Attorney Charles W. Mulaney.
According to the indictment and the government’s memorandum in support of detention, Cottrell in 2014 induced the underage victim into sending him sexually explicit photos through the internet. After collecting semi-nude photos of the victim, Cottrell informed her that he knew her real name, the name of her school, and her parents’ jobs, and he threatened to post the images online and send them to her family unless the girl sent him additional, more explicit images, the government’s memorandum states. The victim complied with Cottrell’s demands by creating and sending additional photos and videos to him, the memorandum states.
Cottrell contacted the victim on a near-daily basis until her parents discovered the messages in 2017 and contacted law enforcement, according to the memorandum. While communicating with the victim, Cottrell used the names “sevendollarcab” and “b88785” on the Kik and Snapchat online applications, and introduced himself as “Dave,” the memorandum 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. Cottrell faces a mandatory minimum sentence of 15 years in prison and a maximum term of life in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678, or file a report on its website, www.cybertipline.com.
Rockford Man Sentenced to More Than 12 Years for Armed Robbery of Cell Phone StoreRead the Press Release
ROCKFORD — A Rockford man was sentenced today by U.S. District Judge Philip G. Reinhard to a total of 150 months in federal prison for the robbery of the U.S. Cellular store, 6430 E. State St., in Rockford, on June 1, 2016, and using a firearm during a violent crime.
McKINLEY HOARDE, III, 23, was sentenced 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. Hoarde pleaded guilty to the charges on July 9, 2018.
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 government is represented by Assistant U.S. Attorney Margaret J. Schneider.
Also charged is RICKY WOODS, 22, of Rockford, who on Sept. 27, 2018, pleaded guilty to the robbery and the gun charge.
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.
Sentencing for Woods is set for Dec. 12, 2018 at 9:30 a.m. He faces a maximum sentence of 20 years’ imprisonment for the robbery, and a mandatory minimum sentence of seven years and a maximum sentence of life imprisonment for the firearms offense. The sentence imposed for the firearms offense is required to be consecutive to any other sentence imposed. Each charge against Woods also carries a potential fine of up to $250,000.
Federal Indictment Charges Chicago Man with the Sex Trafficking of Several ChildrenRead the Press Release
CHICAGO — A Chicago man has been indicted on federal sex trafficking charges for allegedly recruiting several children into prostitution.
LENNIE PERRY, 44, is charged with sex trafficking eight minors under the age of 18, according to an indictment returned Wednesday in U.S. District Court in Chicago. One of his victims was under 14 years old when Perry enticed the victim to engage in a commercial sex act, the indictment states. Perry trafficked some of his victims from 2012 to 2014, and other victims in 2016 and 2017, according to the charges.
Arraignment on eight counts of sex trafficking is scheduled for Nov. 7, 2018, at 11:00 a.m., before U.S. Magistrate Judge Mary M. Rowland.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The case was investigated by the FBI Chicago Child Exploitation Task Force. Valuable assistance was provided by the Chicago Police Department and the U.S. Department of Homeland Security - Homeland Security Investigations.
The government is represented by Assistant U.S. Attorneys Matthew Kutcher, Charles Mulaney and Michelle Petersen.
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. Perry faces a statutory minimum sentence of 15 years in prison and a maximum of life in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678. The hotline is available 24 hours a day, seven days a week.
Chicago Man Charged with Conspiring to Support ISISRead the Press Release
CHICAGO — A Chicago man has been arrested on a federal complaint charging him with conspiring to provide material support to the Islamic State of Iraq in al-Sham (ISIS).
ASHRAF AL SAFOO, also known as “Abu Al’-Abbas Al-Iraqi,” “Abu Shanab,” and “Abbusi,” 34, was arrested Wednesday in Chicago. A criminal complaint charges him with one count of conspiracy to provide material support and resources to a foreign terrorist organization. Al Safoo made an initial court appearance today before U.S. Magistrate Judge M. David Weisman and was ordered detained in federal custody. A detention hearing was scheduled for Oct. 25, 2018, at 1:30 p.m.
Al Safoo is a naturalized United States citizen of Iraqi descent who resides in Chicago. The complaint alleges that Al Safoo, at the direction of and in coordination with ISIS, aided ISIS in using social media to spread propaganda supporting violent jihad, to recruit operatives, and to encourage others to carry out terrorist attacks.
The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; John C. Demers, Assistant Attorney General for National Security at the U.S. Department of Justice; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The case was investigated by the Chicago Joint Terrorism Task Force, which is comprised of numerous federal, state and local law enforcement agencies.
“This charge demonstrates that in order to keep our communities safe, law enforcement will vigorously pursue those who provide material support – in whatever form – to designated foreign terrorist organizations,” said U.S. Attorney Lausch. “Today’s arrest is a testament to the commitment and dedication of our prosecutors and law enforcement partners who stand watch over our country.”
“At a time when the threat from internet-inspired terrorism remains high, we must be vigilant against those who disseminate on-line propaganda promoting violence in support of ISIS, like Ashraf al Safoo is alleged to have conspired to have done,” said Assistant Attorney General Demers. “His arrest shows that the Department of Justice remains alert to this threat and continues to seek to hold people accountable for conspiring to support foreign terrorist organizations.”
“The safety of the American public is the FBI’s highest priority,” said FBI SAC Sallet. “Home-grown terrorists and ‘lone-actor’ operators continue to represent a threat to the homeland. The arrest today should send a clear message to these individuals, no matter who you are or where you may be, we will find you and arrest you. This case would not be possible without the combined efforts of the Chicago Joint Terrorism Task Force, and in particular the work of our partners at the Chicago Police Department and the Department of Homeland Security.”
According to the complaint, Al Safoo is a member of Khattab Media Foundation, an internet-based organization that has sworn an oath of allegiance to ISIS and created and disseminated ISIS propaganda online. Al Safoo and other members of Khattab have created and posted pro-ISIS videos, articles, essays and infographics across multiple social media platforms, at the direction and in coordination with ISIS, the complaint states. Much of the propaganda created and distributed by Khattab promotes violent jihad on behalf of ISIS and ISIS’s media office, the complaint states.
On Nov. 4, 2017, according to the complaint, Al Safoo reposted in a social media application for Khattab members an encouragement for people to help ISIS in any way possible, including by offering money or themselves. Al Safoo wrote, “Thus, it was incumbent on us to support them verbally and with money and soul and by inciting others to target the tyrants and expose the evil scholars and the Saudi rulers,” the complaint states. On May 23, 2018, according to the complaint, Al Safoo posted on multiple social media groups directions and encouragement for Khattab’s ISIS propaganda efforts: “Brothers, roll up your sleeves! Cut video publications into small clips, take still shots, and post the hard work of your brothers in the apostate’s pages and sites. Participate in the war, and spread fear.”
The complaint cites several images and videos created by Khattab and disseminated online. The postings include images of violence during the Christmas season, celebrations of terrorist attacks and mass shootings in the United States, and encouragement for “lone wolf” terrorist attacks in western countries. Because the material promoted violence, Khattab members frequently had their social media accounts suspended or deleted, the complaint states. The members sought access to hacked social media accounts and created accounts under fake names and identifiers. These accounts were then distributed to Khattab members to use in disseminating ISIS propaganda, according to the complaint.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The conspiracy charge is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Barry Jonas, Vikas Didwania, Melody Wells and Peter S. Salib of the Northern District of Illinois, and Lolita Lukose, Trial Attorney of the National Security Division’s Counterterrorism Section.
Convicted Felon Sentenced to More Than 5 Years for Illegally Possessing a Loaded Handgun in Western SuburbRead the Press Release
CHICAGO — A convicted felon has been sentenced to more than five years in federal prison for illegally possessing a loaded semi-automatic handgun in a west suburb of Chicago.
MARK HILL possessed the gun on June 17, 2016, in Broadview. Hill had previously been convicted of a felony and was not legally allowed to possess a firearm. After his arrest, Hill attempted to obstruct justice by urging his girlfriend to lie on his behalf.
Hill, 41, of Broadview and Chicago, pleaded guilty earlier this year to one count of illegal possession of a firearm by a felon. U.S. District Judge Gary Feinerman on Tuesday sentenced Hill to five years and ten months in federal prison.
The sentencing 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. Valuable assistance was provided by the Broadview Police Department, Bellwood Police Department, and Hillside Police Department.
“Possessing a firearm as a convicted felon is a serious offense and creates wholly unnecessary risks to public safety,” Assistant U.S. Attorney Erin E. Kelly argued in the government’s sentencing memorandum.
Evidence in the case revealed that Hill stored the loaded handgun and additional ammunition under a mattress in the bedroom of his girlfriend’s apartment. After his arrest, Hill telephoned his girlfriend from jail on numerous occasions. Hill urged his girlfriend to lie under oath concerning the location of evidence that police found in the apartment. Hill also told his girlfriend that he would coach her testimony, requesting that she “come see me so you tell ‘em everything I tell you to say.”
LaSalle County Physician Sentenced to 12 Years in Prison for Illegally Dispensing Prescription OpioidsRead the Press Release
CHICAGO — A LaSalle County physician was sentenced today to 12 years in federal prison for illegally dispensing prescription medications, including opioids, in exchange for cash or sex.
CONSTANTINO PERALES, M.D., illegally prescribed Oxycodone and Xanax to a patient, ANDREW STRANDELL, knowing that Strandell would sell the pills on the black market and then kick back some of the profits to Dr. Perales. Dr. Perales also admitted in a plea agreement that from 2011 to 2013 he illegally dispensed opioids and other controlled substances to three opioid-dependent patients in exchange for sex. Dr. Perales required the individuals to have sex with him in order to continue receiving the medications, the plea agreement states. Dr. Perales knew the patients were addicted to the pills, yet he dispensed them without performing a medical examination or ordering any diagnostic tests to manage their conditions, the plea agreement states.
Perales, 67, of Peru, Ill., pleaded guilty last year to conspiracy to possess a controlled substance with the intent to distribute. U.S. District Judge Amy J. St. Eve imposed the 12-year sentence in federal court in Chicago.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration. Substantial assistance was provided by the Peru, Ill., Police Department, and the LaSalle County State’s Attorney’s Office.
“Few cases provide such a troubling example of a brazen and pathological abuse of power, influence, and trust in order to manipulate the pain and suffering of others to one’s personal advantage,” Assistant U.S. Attorneys Katherine A. Sawyer and Kathryn E. Malizia argued in the government’s sentencing memorandum. “The evidence in this case demonstrates that Constantino Perales is a predator who abused his power and cloaked himself in the authority conferred by his white coat to manipulate vulnerable patients for his own gratification and profit.”
“This case exposes a doctor behaving in direct contradiction to his Hippocratic Oath, placing his greed and personal desires above the well-being of his patients," said FBI SAC Sallet. "This sentence sends a clear message that such behavior is unacceptable and will be prosecuted to the fullest extent of the law. I commend the efforts of our state, local, and federal partners in bringing both of these individuals to justice.”
“This announcement sends a clear message that medical professionals who exploit their power, prey on the vulnerable, and violate controlled substance laws will be investigated and held accountable to the fullest extent,” said DEA SAC McKnight. “It also highlights the significance of federal law enforcement and prosecutors working together.”
Dr. Perales’ Illinois medical license was suspended and he surrendered his DEA Registration Certificate after law enforcement executed a search warrant at his office in Peru, Ill., in August 2013.
Strandell, of Sandwich, Ill., pleaded guilty to the same conspiracy charge as Perales. Judge St. Eve in August sentenced Strandell to 30 months in prison.
Loves Park Man Sentenced to 22 Years in Federal Prison for Producing Child PornographyRead the Press Release
ROCKFORD — A Loves Park man was sentenced today by U.S. District Judge Philip G. Reinhard to 22 years in federal prison for producing child pornography.
GRANT WOJAHN, 37, admitted in a plea agreement that he created a Facebook account posing as a female teenager. On March 20, 2015, while using that profile, Wohjan contacted a minor female victim using the Facebook private messaging feature and persuaded her to engage in sexually explicit conduct, take photos of that conduct and then transmit the images to Wojahn using the private messaging service on Facebook. According to the plea agreement, the female victim was 13 years of age at the time the pictures were produced and transmitted. Wojahn also admitted that between May 21, 2014, and April 5, 2015, he similarly persuaded six other minor female victims, who were between the ages of 10 and 12, to do the same.
Wojahn also admitted that on March 25, 2015, he used the Facebook private messaging service to chat and send another user a number of images of child pornography depicting one of the minor victims. Further, Wojahn admitted that on Sept. 1, 2015, he possessed numerous images of child pornography on a USB storage device, a cellphone, and other devices, and in total possessed at least 43 videos of child pornography and 71 images of child pornography.
Wojahn pleaded guilty to the child pornography charge on June 11, 2018. The 22-year sentence will be followed by a lifetime term of supervised release.
The sentencing 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 Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorney Margaret J. Schneider.
Woman Indicted in Scheme to “Straw Purchase” Guns in Indiana on Behalf of Convicted Felon in ChicagoRead the Press Release
CHICAGO — A Chicago woman has been indicted on federal firearm charges for conspiring to “straw purchase” handguns in Indiana on behalf of a convicted felon in Chicago.
MONICA NAVEJAR, 31, purchased the guns from licensed dealers in Indiana and falsely certified on federal forms that she was the actual buyer, according to an indictment returned in U.S. District Court in Chicago. In reality, Navejar purchased the guns on behalf of a convicted felon in Chicago whom Navejar knew was prohibited from legally purchasing firearms on his own, the indictment states. The felon directed Navejar to buy certain firearms that he wanted and then provided her with the purchase money, according to the charges.
The two-count indictment was returned Oct. 4, 2018, in federal court in Chicago. It charges Navejar with one count of conspiracy to knowingly make false statements and knowingly dispose of a firearm to a convicted felon, and one count of knowingly disposing of a firearm to a convicted felon. Arraignment is set for Oct. 16, 2018, at 11:00 a.m., before U.S. Magistrate Judge Maria Valdez.
The charges were 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 and Explosives; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Eddie Johnson, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Katherine Neff Welsh.
“Straw purchasers too often play a grave role in enabling the unlawful possession of guns and the senseless shootings that can follow,” said U.S. Attorney Lausch. “The U.S. Attorney’s Office and our law enforcement partners are committed to stopping the flow of guns to convicted felons or other prohibited individuals who cannot legally possess them.”
“Preventing the illegal selling and purchasing of firearms will always be a priority for ATF in conjunction with our local and federal partners,” said ATF SAC Nunez. “Straw purchasers must be held accountable for their role in bringing so many illegal guns into Chicago.”
“Anyone who knowingly puts a gun into the hands of a felon shows blatant disregard for the safety and security of our communities,” said FBI SAC Sallet. “We will continue to work with our law enforcement partners to hold accountable anyone who engages in these illicit transactions, which directly contribute to the gun violence plaguing our city.”
“It is important that we do whatever we can as a society to make sure that we prevent additional families from losing a loved one because a criminal was able to get their hands on a gun through illegal means - including straw purchases,” said CPD Supt. Johnson.
The indictment describes three handgun purchases in 2015 and 2017 in Hammond, Ind., and Gary, Ind. On one occasion, the felon accompanied Navejar to Indiana when one of the purchases was made, the indictment states. The charges also allege that Navejar provided the felon with other guns that Navejar had previously purchased for her own use.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The conspiracy charge is punishable by a maximum sentence of five years in prison, while the charge of knowingly disposing a firearm to a felon is punishable by up to ten years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Suburban Chicago Man Guilty of Trying to Illegally Export Guns and Ammunition to HaitiRead the Press Release
CHICAGO — A suburban Chicago man has admitted in federal court that he tried to illegally export nearly two dozen guns and ammunition to Haiti from Illinois.
PATRICK GERMAIN, 45, of Evanston, Ill., pleaded guilty to one count of knowingly and fraudulently attempting to export firearms contrary to the laws and regulations of the United States. In a written plea agreement, Germain admitted that in 2016 he planned to illegally export 16 handguns, five shotguns, a rifle and ammunition from Evanston to Haiti by way of Miami, Fla. Germain built a plywood container, filled it with the guns and ammunition, and then hid it inside a cargo van, the plea agreement states. The van was then delivered to a shipping company in Miami but law enforcement seized it before it could be transported to Haiti.
The guilty plea was entered Tuesday in federal court in Chicago. It carries a maximum sentence of ten years in prison. U.S. District Judge Joan Humphrey Lefkow set sentencing for Jan. 29, 2019.
The guilty plea 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 and Explosives; Dan Clutch, Special Agent-in-Charge of the Chicago Field Office of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Valuable assistance was provided by U.S. Customs and Border Protection and the Illinois State Police. The government is represented by Assistant U.S. Attorney William Dunne.
According to the plea agreement, Germain in June 2016 purchased the firearms and ammunition from dealers in Illinois. Germain also purchased three vehicles, including the cargo van that he would later use to transport the concealed firearms and ammunition. He then hired an Illinois company to deliver the three vehicles to Miami, where Germain had arranged for a Florida shipping company to transport the vehicles to Haiti.
When asked by the Illinois company why the cargo van appeared to be overweight, Germain represented to the driver that the added weight was due to furniture in the backseat. Germain also misled the Florida shipping company by not notifying them that the cargo van was filled with guns and ammunition, according to the plea agreement.
North Suburban Financial Adviser Charged with Fraud for Allegedly Swindling $2.5 Million from Elderly ClientsRead the Press Release
CHICAGO — The U.S. Attorney’s Office in Chicago today filed a criminal fraud charge against a north suburban financial advisor for allegedly swindling more than $2.5 million from elderly clients.
LUCITA ZAMORAS owned a number of companies in Niles, including First Fidelity Financial Group LLC, JQH Ventures LLC, and Cornerstone Home Solutions. Zamoras held herself out as a financial adviser specializing in retirement planning, and targeted elderly individuals, particularly immigrants, according to a criminal information filed in U.S. District Court in Chicago. Zamoras falsely claimed that client funds would be invested in safe, low risk investments, when, in fact, she spent some or all of the money on personal and business expenses, including gambling costs, payroll expenditures, credit card payments, airline tickets, car payments, and utilities, the information states.
Zamoras attempted to conceal the scheme by using newly raised investment funds to make Ponzi-type payments to earlier investors, the charge alleges. Zamoras intentionally failed to disclose these payments to both the new and earlier investors, the information states. From 2009 until August of this year, Zamoras defrauded at least a dozen investors out of approximately $2.5 million, the information states.
The information charges Zamoras, 55, of Chicago, with one count of mail fraud. 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; Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Jeffrey A. Monhart, Regional Director of the Chicago 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’s Office. Valuable assistance was provided by the Chicago Regional Office of the U.S. Securities and Exchange Commission, which previously filed a civil enforcement action against Zamoras. The government is represented by Assistant U.S. Attorney Jacqueline Stern.
The public is reminded that an information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Mail fraud is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
12 Defendants Charged in Federal Investigation Targeting Heroin Trafficking on West Side of ChicagoRead the Press Release
CHICAGO — Twelve individuals are facing federal charges as part of an investigation into heroin trafficking on the West Side of Chicago.
As part of the investigation, dubbed “Operation Dirty Ice,” law enforcement intercepted cellphone communications between the defendants, conducted extensive surveillance, and performed court-authorized searches of residences in the Austin neighborhood of Chicago and west suburban Bellwood. During the probe, authorities seized one and a half kilograms of heroin, a half kilogram of crack cocaine, more than $892,000 in illicit cash proceeds, and a stolen handgun.
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.
A criminal complaint filed in U.S. District Court in Chicago charges eleven defendants with conspiracy to possess a controlled substance with the intent to distribute, and one defendant with possession of a controlled substance with the intent to distribute. Many of the defendants were arrested Tuesday, and they have made initial appearances in federal court in Chicago.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; 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 Eddie Johnson, Superintendent of the Chicago Police Department. The Illinois State Police provided valuable assistance. Assistant U.S. Attorneys Kelly Guzman and Rebekah Holman represent the government.
Charged in the drug conspiracy are DIAMOND LAKE, 42, of Bellwood; DARNELL HUDSON, 42, of Chicago; ANTWION WILLIAMS, 43, of Berwyn; DERRON BARTON, 42, of Chicago; STEVEN MOORE, 41, of Chicago; ROMELL RATLIFF, 40, of Chicago; DEANDRE HUGHES, 23, of Chicago; LAWRENCE JONES, 41, of Chicago; CLAYVON VIVETTER, 30, of Chicago; WILLIE BLAKE, 39, of Chicago; and EDDIE YOUNG, 39, of Chicago. Charged with possession of a controlled substance with the intent to distribute is TYJUAN YATES, 36, of Chicago.
According to the charges, Lake operated a drug trafficking organization that distributed nearly 500 grams of heroin in the Chicago area on a weekly basis. The organization used Lake’s residence in Bellwood to store bulk quantities of heroin and to prepare the drug for street-level distribution, the complaint states. Lake, Williams and Hudson parceled the drug in distinctive packaging by wrapping it in tinfoil and stapling it inside mini Ziploc bags, the complaint states. Williams and Hudson then allegedly worked with Barton to bring the bags to street-level dealers, including Moore, Ratliff, Hughes, Jones, Vivetter, Blake and Young. After sales on the street, Williams, Hudson and Barton collected cash proceeds and delivered the money to Lake, the charges allege.
From May to October of this year, Lake’s organization distributed at least 10 kilograms of heroin to customers on the West Side of Chicago, the complaint states. Many of the sales allegedly occurred in the city’s Austin neighborhood, including in the 100 block of North LaPorte Avenue, the 5000 block of West Maypole Avenue, and the 4800 block of West Quincy Street.
The charge against Yates stems from a June 2018 seizure of heroin in the Garfield Park neighborhood of Chicago, the complaint states. Law enforcement discovered approximately 109 grams of packaged heroin in Yates’s vehicle in the 4400 block of West Fulton Street, according to the complaint.
The conspiracy charge carries a mandatory minimum sentence of ten years in prison and a maximum penalty of 40 years in prison, while the possession charge against Yates is punishable by up to 20 years. 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.
North Suburban Psychologist Indicted for Allegedly Billing Medicare and Private Insurers for Services Not RenderedRead the Press Release
CHICAGO — A north suburban psychologist has been indicted on federal fraud charges for allegedly submitting false claims to Medicare and private insurers.
PAMELA ANTELL, also known as Pamela Gruenhut, operated a psychology practice in Glenview. From 2011 to January 2018, Antell submitted fraudulent claims to Medicare and private insurers for mental health services that were not rendered, the indictment states. In some instances, Antell was out of the state on the dates she claimed to have provided the services, the charges allege. Antell also used some of her patients’ names and dates of birth without their knowledge to create fictitious claim forms for the purported services, the charges allege.
The indictment charges Antell with five counts of health care fraud and three counts of aggravated identity theft.
Antell, 66, of Deerfield, was arrested this morning. She pleaded not guilty at an afternoon arraignment and was ordered released on a personal recognizance bond. A status hearing is set for Oct. 24, 2018, at 10:30 a.m., before U.S. District Judge Jorge L. Alonso.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent in Charge of the Chicago office of the Federal Bureau of Investigation.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of health care fraud is punishable by up to ten years in prison. Conviction of aggravated identity theft carries a mandatory prison sentence of two years, which must be served consecutively to the sentence for the underlying offense. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Kelly Greening.
More Than 25 Defendants Facing Federal or State Drug Charges for Allegedly Selling Fentanyl or Fentanyl-Laced Heroin in ChicagoRead the Press Release
CHICAGO — More than 25 individuals are facing federal or state drug charges for allegedly selling pure fentanyl or fentanyl-laced heroin in Chicago.
Many of the defendants sold narcotics to an undercover law enforcement officer earlier this year, according to the charges. Several of the sales occurred in daytime hours during the summer months. The federal charges describe drug sales in the Tri-Taylor, Humboldt Park and West Garfield Park neighborhoods on Chicago’s West Side, as well as deals in the Chatham neighborhood on the city’s South Side.
The investigation was led by the Chicago Police Department, with support from agents from numerous federal agencies assigned to the High Intensity Drug Trafficking Area (HIDTA) Task Force, including the U.S. Drug Enforcement Administration, Federal Bureau of Investigation, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Department of Homeland Security - Homeland Security Investigations, and U.S. Marshals Service. In addition to the undercover work, law enforcement during the investigation conducted extensive surveillance and seized distribution quantities of fentanyl and fentanyl-laced heroin.
Seven defendants were charged in federal court, while 22 defendants were charged in state court. Many of the defendants were arrested Thursday. The federal defendants have begun making initial appearances in U.S. District Court in Chicago, while the state defendants will appear 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; Eddie Johnson, Chicago Police Superintendent; Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the DEA; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. Substantial assistance was provided by the Illinois State Police.
“These arrests send a clear message that anyone who sells fentanyl on the streets of Chicago will endure the full weight of law enforcement,” said U.S. Attorney Lausch. “The U.S. Attorney’s Office will continue to focus its efforts on individuals and groups who distribute fentanyl – a dangerously potent drug – and prosecute those offenders in federal court.”
“We’ve seen the devastation that drugs – especially fentanyl – leave on an individual, their family and our communities,” said State’s Attorney Foxx. “These charges are a step in the right direction as we send a message that fentanyl has no place on our streets. My office is committed to holding anyone responsible for this harmful substance accountable and will continue working with our federal and local partners to do so.”
“The sale and use of these substances has affected more than just the individual using them,” said CPD Supt. Johnson. “It has left multiple scars on some of our communities. CPD will continue to work with our federal and state partners to do everything we can to make our streets safer and to save lives in the process.”
“These arrests help tackle our city’s most serious drug threat – fentanyl,” said DEA Special Agent-in-Charge McKnight. “For those who want to put poison on our streets, we are not done with you.”
“The results of these investigations show the powerful impact law enforcement can have when we work as one team to combat the lethal threat fentanyl poses to our communities,” said FBI Special Agent-in-Charge Sallet.
According to the federal complaints, ANTHONY MCCLENDON, 38, of Chicago, sold more than three grams of pure fentanyl to an undercover officer on May 18, 2018. The deal allegedly occurred on the street in the 1000 block of South Western Avenue in Chicago. Special Assistant U.S. Attorney Chester Choi represents the government in McClendon’s case.
ANTRON BINION, 48, of Chicago, sold at least four grams of fentanyl-laced heroin over five separate deals this summer, the complaint states. The deals allegedly occurred at various locations in Chicago’s West Garfield Park neighborhood, including a transaction on a ramp leading to a pedestrian bridge over the Dwight D. Eisenhower Expressway. Assistant U.S. Attorney Aaron R. Bond represents the government in Binion’s case.
VANCE ESTES, 34, of Chicago, sold more than a gram of fentanyl-laced heroin and more than a gram of heroin in two separate deals in July, the complaint states. The deals allegedly occurred as Estes sat in his vehicle in the 9100 block of South Wabash Avenue in Chicago. ALEJANDRO JUNCO, 27, of Chicago, also sold distribution levels of fentanyl-laced heroin in the same block in July, the complaint states. Assistant U.S. Attorneys Andrew J. Dixon and John D. Mitchell represent the government in the Junco and Estes cases.
JAMES ALEXANDER, 34, of Chicago, KENYON SAVAGE, 24, of Chicago, and LASHAWN BANKS, 20, of Chicago, each sold distribution levels of fentanyl-laced heroin in Chicago’s Humboldt Park neighborhood this summer, the complaints state. The government is represented in the Alexander case by Assistant U.S. Attorney Kristen Viglione; in the Savage case by Assistant U.S. Attorney Kalia Coleman; and in the Banks case by Assistant U.S. Attorney Jared Jodrey.
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. The federal drug distribution charge is punishable by a maximum sentence of 20 years in prison. If convicted of the federal charge, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Violent Bank Robber Sentenced to 30 Years in Federal PrisonRead the Press Release
CHICAGO — A Chicago man has been sentenced to 30 years in federal prison for robbing a North Side bank at gunpoint.
JON GILES, 39, robbed a North Community Bank branch in Chicago’s Lincoln Park neighborhood on March 20, 2009. After casing the building from the outside, Giles entered the bank and pointed a loaded gun at a female employee who was sitting at a desk. He then forced a teller to fill a Ziploc bag with cash, screaming, “Give me the money or I will shoot her right now!” The teller complied and filled the bag with approximately $1,153. Giles then ordered the employee and the teller to lie face down on the floor while he fled the bank.
Giles was arrested in June 2009 on unrelated armed robbery charges and he has remained in custody. A federal jury earlier this year convicted him on bank robbery and firearm charges. U.S. District Judge Ronald A. Guzman on Wednesday imposed a 360-month sentence and ordered that Giles receive credit for time already served.
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. Valuable assistance was provided by the Chicago Police Department.
“The defendant is a manipulative, violent, career criminal who appears unable to stop harming other members of society by committing violent crimes,” Assistant U.S. Attorneys Christopher V. Parente and Elizabeth Pozolo argued in the government’s sentencing memorandum.
Both the bank employee and the teller testified about their ordeals at trial. The employee described how terrified she felt when Giles pressed the gun into her side and threatened to kill her. She recalled thinking that she would never see her children again.
Evidence at trial revealed that authorities matched Giles’s DNA to a glove he wore during the bank robbery.
Three Rockford-Area Men Charged in Child Pornography IndictmentsRead the Press Release
ROCKFORD — Three Rockford-area men were indicted Tuesday in separate cases by a federal grand jury in Rockford on child pornography charges.
DAVID WITTWER, 48, of South Beloit, was charged with one count of transporting child pornography via the internet in February 2016, and one count of possessing a computer and cell phone in April 2017 containing an image of child pornography involving a prepubescent minor and a minor who had not attained 12 years of age.
DONOVAN HEIDENREICH, 23, of Rockford, was charged with two counts of transporting child pornography via the internet in May and September of 2017, and one count of possessing a computer in November 2017 containing an image of child pornography involving a prepubescent minor and a minor who had not attained 12 years of age.
OSCAR FLORES-VAZQUEZ, 47, of Byron, was charged with one count of transporting child pornography via the internet in June 2018, and one count of possessing a computer in August 2018 containing an image of child pornography involving a prepubescent minor and a minor who had not attained 12 years of age.
John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, announced the Wittwer case with James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Department of Homeland Security – Homeland Security Investigations; and the Heidenreich and Flores-Vazquez cases with Jeffrey S. Sallet, Special Agent-in-Charge of the Federal Bureau of Investigation in Chicago. The government is represented by Assistant U.S. Attorney Michael D. Love.
The Wittwer investigation was conducted by the U.S. Department of Homeland Security – Homeland Security Investigations, with the assistance of the South Beloit Police Department and the Winnebago County Sheriff’s Office. The Heidenreich and Flores-Vazquez cases were investigated by the FBI.
Each count of transporting child pornography carries a mandatory minimum sentence of five years and a maximum of 20 years in prison, while possessing child pornography carries a maximum of ten years in prison. Each count carries a $250,000 maximum fine. 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. Each 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.
Chinese National Arrested for Allegedly Acting Within the United States as an Unregistered Agent of the People’s Republic of ChinaRead the Press Release
CHICAGO — A Chinese national was arrested in Chicago today for allegedly acting within the United States as an illegal agent of the People’s Republic of China.
JI CHAOQUN, 27, a Chinese citizen residing in Chicago, worked at the direction of a high-level intelligence officer in the Jiangsu Province Ministry of State Security, a provincial department of the Ministry of State Security for the People’s Republic of China, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Ji was tasked with providing the intelligence officer with biographical information on eight individuals for possible recruitment by the JSSD, the complaint states. The individuals included Chinese nationals who were working as engineers and scientists in the United States, some of whom were U.S. defense contractors, according to the complaint.
The complaint charges Ji with one count of knowingly acting in the United States as an agent of a foreign government without prior notification to the Attorney General. He will make an initial court appearance today at 4:00 p.m. CDT before U.S. Magistrate Judge Michael T. Mason in Courtroom 2266 of the Everett M. Dirksen U.S. Courthouse in Chicago.
The arrest and complaint were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; John C. Demers, Assistant Attorney General for National Security at the U.S. Department of Justice; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The U.S. Army 902nd Military Intelligence Group provided valuable assistance. The government is represented by Assistant U.S. Attorney Shoba Pillay of the Northern District of Illinois, and Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Control Section.
According to the complaint, Ji was born in China and arrived in the United States in 2013 on an F1 Visa, for the purpose of studying electrical engineering at the Illinois Institute of Technology in Chicago. In 2016, Ji enlisted in the U.S. Army Reserves as an E4 Specialist under the Military Accessions Vital to the National Interest program, which authorizes the U.S. Armed Forces to recruit certain legal aliens whose skills are considered vital to the national interest. In his application to participate in the MAVNI program, Ji specifically denied having had contact with a foreign government within the past seven years, the complaint states. In a subsequent interview with a U.S. Army officer, Ji again failed to disclose his relationship and contacts with the intelligence officer, the charge alleges.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charge in the complaint is punishable by a maximum sentence of ten years in prison. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Chinese National Arrested for Allegedly Acting Within the United States as an Illegal Agent of the People’s Republic of ChinaRead the Press Release
Ji Chaoqun, 27, a Chinese citizen residing in Chicago, was arrested in Chicago today for allegedly acting within the United States as an illegal agent of the People’s Republic of China.
The arrest and complaint were announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney John R. Lausch, Jr. for the Northern District of Illinois, and Special Agent in Charge Jeffrey S. Sallet of the FBI’s Chicago field office.
Ji worked at the direction of a high-level intelligence officer in the Jiangsu Province Ministry of State Security, a provincial department of the Ministry of State Security for the People’s Republic of China, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Ji was tasked with providing the intelligence officer with biographical information on eight individuals for possible recruitment by the JSSD, the complaint states. The individuals included Chinese nationals who were working as engineers and scientists in the United States, some of whom were U.S. defense contractors, according to the complaint.
The complaint charges Ji with one count of knowingly acting in the United States as an agent of a foreign government without prior notification to the Attorney General. He will make an initial court appearance today at 5:00 p.m. EDT (4:00 p.m. CDT) before U.S. Magistrate Judge Michael T. Mason in Courtroom 2266 of the Everett M. Dirksen U.S. Courthouse in Chicago.
According to the complaint, Ji was born in China and arrived in the United States in 2013 on an F1 Visa, for the purpose of studying electrical engineering at the Illinois Institute of Technology in Chicago. In 2016, Ji enlisted in the U.S. Army Reserves as an E4 Specialist under the Military Accessions Vital to the National Interest (MAVNI) program, which authorizes the U.S. Armed Forces to recruit certain legal aliens whose skills are considered vital to the national interest. In his application to participate in the MAVNI program, Ji specifically denied having had contact with a foreign government within the past seven years, the complaint states. In a subsequent interview with a U.S. Army officer, Ji again failed to disclose his relationship and contacts with the intelligence officer, the charge alleges.
A criminal complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty. The charge carries a maximum sentence of ten years in prison. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
The U.S. Army 902nd Military Intelligence Group provided valuable assistance. The government’s case is represented by Assistant U.S. Attorney Shoba Pillay of the Northern District of Illinois and Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Control Section.
Chicago Insurance Agent Guilty of Failing to Pay Taxes on More Than $4.7 Million in IncomeRead the Press Release
CHICAGO — A Chicago insurance agent has pleaded guilty to willfully failing to pay federal and state taxes on more than $4.7 million in income earned over a decade.
JOHN OCWIEJA admitted in a plea agreement that he willfully failed to pay income taxes for tax years 2006 to 2016, causing a combined loss to the United States and State of Illinois of more than $1.1 million. During those years, Ocwieja earned a total income of more than $4.7 million as a licensed insurance agent and financial representative, the plea agreement states.
Ocwieja, 49, of Chicago, pleaded guilty Monday to three counts of willfully failing to file a federal tax return. U.S. Magistrate Judge M. David Weisman set sentencing for Dec. 18, 2018, 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 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. Attorneys Andrianna Kastanek and Patrick King.
According to the plea agreement, Ocwieja earned more than $500,000 in three of the eleven years he failed to pay income taxes, and more than $300,000 in four other years. Ocwieja acknowledged in the plea agreement that he used the funds for personal matters instead of satisfying his tax liabilities.
The conviction carries a maximum total sentence of three years in federal prison. The Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Recycling Executive Guilty of Fraud and Tax Offenses in Scheme to Landfill and Re-Sell Potentially Hazardous WasteRead the Press Release
CHICAGO — The owner of two recycling businesses illegally landfilled potentially hazardous electronic waste as part of a scheme to re-sell the materials and avoid paying income taxes, according to his guilty plea in federal court in Chicago.
BRIAN BRUNDAGE owned Intercon Solutions Inc. and EnviroGreen Processing LLC, which purported to recycle electronic waste on behalf of corporate and governmental clients. Brundage represented to the clients that the materials would be disassembled and recycled in an environmentally sound manner. In reality, from 2005 to 2016, Brundage caused thousands of tons of e-waste and other potentially hazardous materials to be landfilled, stockpiled, or re-sold at a profit to companies who shipped the materials overseas, according to a plea agreement filed Tuesday in U.S. District Court in Chicago. Brundage admitted evading $743,984 in federal taxes by concealing the income he earned from re-selling the e-waste and from paying himself funds that he falsely recorded as Intercon business expenses. Brundage spent the purported expenses for his own personal benefit, including wages for a nanny and housekeeper, jewelry purchases, and payments to the Horseshoe Casino in Hammond, Ind., the plea agreement states.
Brundage, 46, of Dyer, Ind., pleaded guilty Tuesday to one count of wire fraud, which is punishable by up to 20 years in prison, and one count of tax evasion, which is punishable by up to five years. U.S. District Judge Joan Humphrey Lefkow set sentencing for Feb. 27, 2019, at 2:00 p.m.
The guilty plea was announced by John C. Kocoras, First Assistant United States Attorney for the Northern District of Illinois; Brad Ostendorf, Assistant Special Agent-in-Charge of the U.S. Environmental Protection Agency’s Criminal Investigation Division in Chicago; Gabriel L. Grchan, Special Agent-in-Charge of the Chicago office of the Internal Revenue Service Criminal Investigation Division; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and Carol Fortine Ochoa, Inspector General of the U.S. General Services Administration. The government is represented by Assistant U.S. Attorneys Sean J.B. Franzblau and Kelly Greening of the Northern District of Illinois, and Special Assistant U.S. Attorney Crissy Pellegrin of the EPA.
According to the plea agreement, Brundage caused employees of Chicago Heights-based Intercon and Gary, Ind.-based EnviroGreen to sell some of the e-waste and other materials to vendors whom Brundage knew would ship the materials overseas. Some of the materials contained Cathode Ray Tubes, which are glass video display components of computer and television monitors, and which contain potentially hazardous amounts of lead. Brundage admitted causing multiple tons of CRT glass and other potentially hazardous materials to be destroyed in environmentally unsafe ways and later landfilled.
Former Employee of Restaurant Reservation Company Charged with Fraud for Intentionally Disrupting the Business of a CompetitorRead the Press Release
CHICAGO — An employee of a restaurant-reservation company used fake names and email addresses to create hundreds of fraudulent restaurant bookings through a competitor’s system, according to a criminal charge filed today by the U.S. Attorney’s Office in Chicago.
STEVEN ADDISON worked as an Enterprise Operations Specialist in the Chicago office of a San Francisco-based company that provides an online reservation system for restaurants. From November 2017 until February 2018, Addison booked more than 300 fraudulent reservations at Chicago restaurants that use Reserve, a competing reservation service, according to a criminal information filed in federal court in Chicago. Many of the bogus reservations were made on busy days, including New Year’s Eve and Valentine’s Day, when Addison knew restaurants would suffer financial losses when no diners showed up to claim the reservation, the information states. Addison’s scheme intended to demonstrate to Chicago restaurants that Reserve had an inferior reservation system, the charge alleges.
The information charges Addison, 30, of Chicago, with one count of wire fraud. Arraignment in federal court in Chicago has not yet been scheduled.
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. Assistant U.S. Attorney Sunil R. Harjani represents the government.
According to the information, Addison began his scheme after discovering that Reserve’s software did not prevent reservations from users who entered a fake email address or a fake phone number. Addison made reservations using names such as “Hans Gruber,” “Richard Ashcroft” and “Jimmy Smits,” bogus email addresses such as “[email protected],” and fake phone numbers such as “199-999-99999,” the information states.
Addison made the reservations on his own accord and did not personally profit from the scheme, the information states.
The public is reminded that an information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Foreign National Sentenced to Prison for His Role in Stolen Identity Refund Fraud SchemeRead the Press Release
A Honduran national was sentenced to 24 months in prison yesterday for theft of government funds in connection with his role in a stolen identity tax refund fraud scheme, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois.
According to documents and information provided to the court, Elin Matute, formerly of Waukegan, Illinois, cashed fraudulently obtained tax refund checks issued in the names of identity theft victims. In total, the scheme involved approximately 200 false tax returns and resulted in an intended tax loss of over $1.1 million. Matute cashed the checks at his bank and a local checking cashing business by claiming that the people listed on the checks were family members. Matute would then deposit the proceeds into bank accounts he controlled and would also send portions of the money overseas.
In addition to the term of imprisonment imposed, the court ordered Matute to serve three years of supervised release and pay $630,498 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Lausch commended special agents of IRS-Criminal Investigation who investigated the case, and Trial Attorneys John T. Mulcahy and Gregory P. Bailey of the Tax Division, who are prosecuting the case. Zuckerman also thanked the U.S. Attorney’s Office in Chicago for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Sex Trafficker Sentenced to 25 Years in Federal Prison for Engaging in Prostitution with MinorsRead the Press Release
CHICAGO — A Chicago man was sentenced today to 25 years in federal prison for engaging in numerous paid sexual acts with underage girls, along with restitution of approximately $240,000 to be paid into a trust fund for the victims and a $100,000 fine.
WILLIAM WHITLEY paid four minors to engage in sex acts with him on multiple occasions from 2012 to 2016. Three of the victims were runaways at the time they encountered Whitley. Two of his victims were 14 years old when Whitley first took advantage of them. At the time of the criminal conduct, Whitley was employed as an officer with the Chicago Police Department.
Whitley, 62, pleaded guilty earlier this year to one count of sex trafficking of a minor. U.S. District Judge Virginia M. Kendall imposed the sentence in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. Substantial assistance was provided by the Carol Stream Police Department, Chicago Police Department and the Cook County State’s Attorney’s Office.
“Defendant engaged in the sexual exploitation of children, which is one of the most heinous crimes one can commit,” Assistant U.S. Attorneys Sarah Streicker, Elizabeth Pozolo and Michelle Petersen argued in the government’s sentencing memorandum. “Defendant victimized young runaways and caused his victims irreparable harm and trauma by causing them to engage in commercial sex on numerous occasions.”
The investigation revealed that Whitley took nude photographs of some of his victims, and he provided some of them with marijuana to smoke. Whitley also openly displayed his status as a Chicago police officer during his sex trafficking conduct. He was in a police car and wearing his police uniform when he first met one of his victims. Two of his victims reported that Whitley often kept a loaded handgun under the pillow of his bed, where the sex acts took place.
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.
20 Defendants Charged in Drug and Gun Investigations Centered on Southwest Side of ChicagoRead the Press Release
CHICAGO — Twenty individuals are facing criminal charges as part of joint federal and state investigations into drug and gun trafficking in Chicago.
The dual investigations centered on drug sales in the city’s Little Village neighborhood and resulted in the seizures of 445 grams of heroin, 230 grams of cocaine, and $97,770 in illegal drug proceeds. Authorities also seized a pickup truck and 20 illegal firearms, including six rifles.
Indictments returned in U.S. District Court in Chicago charge ten federal defendants with various drug or firearm offenses. Many of the federal defendants were arrested Wednesday. Detention hearings will be held next week in federal court in Chicago. Ten other defendants were charged in state complaints, and several of them were also arrested Wednesday. The state defendants will appear 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; 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; Eddie Johnson, Superintendent of the Chicago Police Department; and Thomas J. Dart, Cook County Sheriff. Substantial assistance was provided by the U.S. Marshals Service and Illinois Department of Corrections.
“These indictments are the result of the relentless effort of multiple law enforcement agencies who are committed to stopping the flow of illegal drugs and guns into our communities,” said U.S. Attorney Lausch. “We will continue to work with our state and local partners to investigate and prosecute these significant narcotic and firearm cases.”
“These seizures and indictments brought by our prosecutors prove that drugs, money and firearms do go hand-in-hand,” said DEA SAC McKnight. “This collaboration among Chicago’s law enforcement community will continue to thrive and bring to justice those who offend and contaminate our communities.”
“The convergence of guns and drugs pose a tremendous threat to our city,” said FBI SAC Sallet. “Today’s charges demonstrate our commitment to work side by side with our federal and local partners to bring to justice those who terrorize our neighborhoods. Let it be clear, the rule of law is not optional.”
“Illegal drugs and firearms have no place in our communities, “said IRS-CI Special Agent-In-Charge Grchan. “We are proud to provide our financial expertise as we work alongside our federal, state, and local law enforcement partners to bring these criminals to justice and make our communities safer.”
“Guns and drugs are driving the violence in many of our neighborhoods,” said State’s Attorney Foxx. “This coordinated and joint effort today with our law enforcement partners shows that we are all committed to ensuring public safety.”
“Our city is plagued by violence fueled by illegal guns and drugs,” Sheriff Dart said. “Those who trade in this misery must be held accountable. Law enforcement will not give up this fight.”
U.S. v. Garcia-Arroyo, et al
This DEA-led investigation began in early 2017 and was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF), in cooperation with the Chicago High Intensity Drug Trafficking Task Force (HIDTA). OCDETF is 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.
JOSE GARCIA-ARROYO, 26, of Chicago, is charged with distributing cocaine and heroin in Chicago on numerous occasions last year. Also charged with drug distribution are JASMIN GARCIA, 24, of Chicago; CARLOS CHAVEZ, 32, of Romeoville; and JOEL ANDRADE, 27, of Chicago.
The federal charges accuse convicted felons FAUSTO GONZALEZ, 27, of Chicago, and ARTURO GONZALEZ, 35, of Chicago, of illegally possessing firearms. Fausto Gonzalez allegedly possessed a 12-gauge shotgun and a .40-caliber handgun in Chicago last year, while Arturo Gonzalez allegedly possessed two .22-caliber rifles in the city earlier this year. JONATHAN PANIAGUA, 25, of Bolingbrook, is charged with unlawfully dealing firearms without a license.
In all, four federal indictments charge seven individuals, while state charges were filed against eight individuals. Assistant U.S. Attorneys Aaron R. Bond and Matthew Hernandez represent the government in the federal cases, while the Cook County State’s Attorney’s Office will prosecute the state cases.
U.S. v. Oscar Hernandez, et al
This FBI-led investigation resulted in federal indictments against three individuals for gun or drug offenses, and state charges against two others. Charged federally with illegal possession of a firearm are convicted felons ANTHONY MENDEZ, 21, of Melrose Park, and OSCAR HERNANDEZ, 37, of Chicago. Mendez allegedly possessed a loaded AK-47 rifle in west suburban Elmwood Park in 2016, while Hernandez allegedly possessed a Colt .45 revolver and 42 rounds of ammunition in Chicago last year. Hernandez also faces a federal drug charge for allegedly distributing cocaine in Chicago last year.
The federal charges also accuse HECTOR SANCHEZ, 23, of Chicago, with unlawfully dealing firearms without a license.
Assistant U.S. Attorneys Kavitha Babu and William Dunne represent the government in the federal cases, while the Cook County State’s Attorney’s Office will prosecute the state cases.
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 United States Sentencing Guidelines.
California Drug Trafficker Sentenced to 35 Years in Federal Prison for Transporting Heroin and Cocaine to Chicago Aboard Amtrak TrainsRead the Press Release
CHICAGO — A federal judge has sentenced a California man to 35 years in prison for overseeing an international drug-trafficking organization that used Amtrak trains to ship heroin and cocaine to Chicago from Los Angeles.
EDGAR ROQUE, 32, of Paramount, Calif., was the leader of an extensive network of drug dealers that moved thousands of kilograms of narcotics aboard the trains from 2010 to 2016. At his direction, hundreds of packages were shipped from California to Chicago, St. Louis and elsewhere, each carrying at least three kilograms of cocaine and sometimes significantly more. Roque worked with an insider at Amtrak to facilitate the shipments and avoid detection by law enforcement.
Roque pleaded guilty earlier this year to drug and money laundering charges. U.S. District Judge Virginia M. Kendall imposed the sentence Tuesday in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; 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 Chicago office of the Internal Revenue Service Criminal Investigation Division. Substantial assistance was provided by the Amtrak Inspector General’s Office and the Amtrak Police Department. Assistant U.S. Attorneys Paul H. Tzur and Kavitha Babu represent the government.
“This is criminal conduct of the worst kind,” Mr. Tzur argued in the government’s sentencing memorandum. “Edgar Roque’s leadership role directing the mass movement of heroin and cocaine into the Chicago area and elsewhere showed that he had absolutely no regard for the safety and well-being of addicts and the communities into which he delivered the drugs.”
Authorities uncovered Edgar Roque’s drug-trafficking operation through a multi-year investigation dubbed “Operation Derailed.” The investigation was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking and money laundering organizations.
Edgar Roque was personally responsible for importing the drugs from Mexico into California via multiple cartel-level suppliers. His organization involved more than a dozen people in California, Illinois and elsewhere. After picking up the drugs at Union Station in Chicago, the group stored the narcotics at stash houses, including a home in the Gage Park neighborhood of Chicago and an apartment in northwest suburban Streamwood. After selling the drugs throughout the Chicago area, Edgar Roque or members of his crew periodically flew west on commercial airlines with the cash proceeds, often carrying $150,000 per person.
More than 20 defendants were charged during the investigation, and several have pleaded guilty to their roles in Edgar Roque’s organization. PHILLIP DIAZ, of Paramount, Calif., ensured delivery of narcotics and maintained bank accounts to launder drug proceeds. Judge Kendall on Tuesday sentenced Phillip Diaz to 20 years and ten months in prison. ANTHONY KOON, of Pueblo, Colo., delivered nearly 20 kilograms of heroin – with a wholesale value of at least $1 million – to the Chicago area in August 2014. Judge Kendall previously sentenced Koon to nine years in prison. GERARDO SANCHEZ, of Los Angeles, Calif., helped launder drug proceeds through various bank accounts, and he accepted delivery of Koon’s heroin in a hotel room in Tinley Park. Judge Kendall previously sentenced Sanchez to 17 and a half years in prison. JORGE LUIS OCHOA-CANELA, of Paramount, Calif., helped move hundreds of thousands of dollars of drug proceeds back to drug suppliers. Judge Kendall previously sentenced Ochoa-Canela to five years and ten months in prison. An Amtrak employee, ROY J. GRIFFIN, of Calumet City, admitted scheming to steal a package of cocaine that had arrived at Union Station in Chicago. U.S. District Judge Andrea R. Wood previously sentenced Griffin to 18 months in prison.
Defendants who have pleaded guilty and are awaiting sentencing include RICHARD ROQUE, of Paramount, Calif. (scheduled to be sentenced on Sept. 27, 2018); ANGELICA CERVANTES, of Chicago (Nov. 19, 2018); JUAN J. CERVANTES, of Chicago (Nov. 21, 2018); and OMAR RAMIREZ, of Compton, Calif. (Dec. 18, 2018).
Two Chicago Police Officers Indicted on Federal Bribery ChargesRead the Press Release
CHICAGO — A federal grand jury has indicted two Chicago Police Department officers for allegedly providing information from non-public traffic crash reports to the owner of an attorney-referral service in exchange for money.
Officers KEVIN TATE and MILOT CADICHON provided information from the crash reports to RICHARD BURTON, who owned and operated Bloomingdale-based National Attorney Referral Service, the indictments allege. In exchange, Burton allegedly paid a total of at least $7,350 to Cadichon, and at least $6,000 to Tate. Burton then used the information to solicit accident victims as clients for attorneys, the charges state.
The indictments were returned Thursday in U.S. District Court in Chicago. Tate, 47, of Chicago, Cadichon, 46, of Chicago, and Burton, 55, of Bloomingdale, are charged with conspiracy to commit bribery. Tate and Cadichon also face an additional count of bribery. Arraignments in federal court have not yet been scheduled.
The indictments 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 government is represented by Assistant U.S. Attorneys Andrianna D. Kastanek and Ankur Srivastava.
Traffic crash reports in Chicago are either filled out by a police officer who appears on the scene of an accident, or by a complainant appearing in person at a local police station. Although the reports are not publicly available during a processing period ranging from 24 hours to several weeks, police officers can access them for legitimate law enforcement reasons. Officers are not permitted to access or disclose the reports for non-law enforcement purposes.
According to the indictments, Tate and Cadichon provided information from the reports to Burton from 2015 to 2017. The information was conveyed in various ways, including using a cell phone to text Burton the crash victims’ contact information, the indictments state. Burton paid the officers via cash bribes and wire transfers, the charges allege.
The conspiracy charge carries a maximum penalty of five years in prison, while the bribery charge is punishable by up to ten years. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory United States Sentencing Guidelines.
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.
Six Freeport Men Arrested on Drug ChargesRead the Press Release
ROCKFORD — Six Freeport residents were arrested yesterday on criminal charges as part of a joint federal and state investigation into heroin and cocaine sales in the Freeport area. The arrests follow criminal indictments returned Tuesday by a federal grand jury in Rockford.
Arrested were JOSEPH COLEMAN, also known as “Big Joe,” 34, who was charged with three counts of distributing heroin and one count of possession with intent to distribute heroin and cocaine between April 2017 and June 2017; TRISTAN EUELL, also known as “Whip,” 35, charged with one count of distributing heroin in May 2017; ANTHONY THOMPSON, also known as “Blimp,” 42, charged with one count of distributing cocaine in April 2017; FRANK HOWARD, also known as “Nub,” 36, charged with four counts of distributing cocaine and one count of possession with intent to distribute cocaine between February 2018 and April 2018; KYRAN WILLIAMS, also known as “Skinny,” 23, charged with four counts of distributing heroin between April 2017 and June 2018; and TERRANCE YOUNG, also known as, “Sleepy,” 45, charged with three counts of distributing cocaine between July 2017 and December 2017.
During the investigation, law enforcement seized four firearms, distribution quantities of heroin, cocaine, and marijuana, and over $65,000 in cash.
The charges and arrests 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; Leo P. Schmitz, Director of the Illinois State Police; and Todd Barkalow, Freeport Police Chief. The investigation was conducted by the Rockford Area Violent Gang Task Force, the Stateline Area Narcotics Team (“SLANT”), a task force led by the Illinois State Police, and the Freeport Police Department. The Rockford Area Violent Gang Task Force is led by the Federal Bureau of Investigation and includes members of the FBI and the Rockford, Loves Park, and Freeport Police Departments. The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
“Heroin and cocaine are dangerous narcotics that are ravaging families and communities in northwestern Illinois,” said U.S. Attorney Lausch. “These indictments are the result of the diligent efforts of investigators and prosecutors to identify and dismantle a significant drug trafficking organization.”
“These arrests and seizures demonstrate our unwavering commitment to work with our partners to put an end to drug-related violence anywhere it's found in northern Illinois,” said FBI SAC Sallet. “We are proud to work side by side with the U.S. Attorney's Office, the Rockford Area Violent Gang Task Force, the Freeport Police Department and the Illinois State Police's State Line Area Narcotics Team to bring these individuals to justice. Those who endanger our communities with drugs should realize, you will be stopped.”
“The arrests are the result of a multiagency initiative that targeted drug trafficking in our city,” said Freeport Chief Barkalow. “This investigation, spanning 24 months, is in cooperation with the FBI Safe Streets Task Force and the Illinois State Police, that targeted upper-level narcotic dealers. These arrests should send a loud and clear message to those in our city committing drug offenses: we know who you are, the community knows who you are, and you could be next.”
“The work with the FBI is an example of multiple agency work across city, state and federal agencies to address criminal elements in the City of Freeport,” said Lowell Crow, Freeport City Manager.
Defendants Coleman, Thompson, Howard, Williams, and Terrance Young all appeared yesterday before U.S. Magistrate Judge Iain D. Johnston in federal court in Rockford, and pleaded not guilty. Detention hearings are set for next week. Defendant Euell is scheduled to appear before U.S. Magistrate Johnston on Wednesday, Sept. 6, 2018, for an initial appearance and detention hearing.
Each count of the indictment carries a mandatory minimum penalty of five years in prison and a maximum penalty of up to 40 years 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 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.
Violent Bank Robbery Results in 30-Year Federal Prison SentenceRead the Press Release
CHICAGO — A federal judge today sentenced a Chicago man to 30 years in prison for robbing a suburban bank at gunpoint.
MALCOLM CARPENTER and another man robbed a Bank of America branch in Homewood on Dec. 4, 2013. Upon entering the bank, Carpenter announced a robbery and pointed a loaded handgun at a pregnant teller behind the counter. He and the other robber then forced three female bank employees to lie face down on the ground while compelling the bank manager and a teller to open the vault and hand over cash. The pair fled the bank with $80,288, but were soon arrested while hiding in a vehicle parked in a nearby apartment complex.
A jury last year convicted Carpenter, 38, of Chicago, on bank robbery and firearm charges. U.S. District Judge Rebecca R. Pallmeyer imposed the sentence in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. Substantial assistance was provided by the South Suburban Major Crimes Task Force, the South Suburban Emergency Response Team, and the Homewood Police Department.
“When defendant chose to rob a bank and point a loaded firearm at five innocent individuals, he also chose to put each of their lives at risk,” Assistant U.S. Attorneys Kelly Greening and Sean J.B. Franzblau argued in the government’s sentencing memorandum. “The victim bank employees suffered a lasting, human cost.”
The other robber, JUSTIN WILLIAMS, 30, of Calumet Park, pleaded guilty to bank robbery and firearm charges. Judge Pallmeyer in 2016 sentenced Williams to ten years in prison.
Justice Department Obtains $410,000 Settlement of Housing Discrimination Lawsuit Against Tinley ParkRead the Press Release
WASHINGTON - The Justice Department today announced that it settled a lawsuit against the Village of Tinley Park, Illinois, a suburb of Chicago, alleging that it violated the Fair Housing Act when it refused to approve a low-income housing development in response to race-based community opposition.
The suit, filed in U.S. District Court in Chicago, Illinois, in November 2016, alleged that the Village of Tinley Park discriminated against prospective tenants of a proposed development when it refused to approve the project, despite the Tinley Park Planning Department’s finding that the project was in “precise conformance” with the applicable building requirements. Under Tinley Park’s zoning ordinances, Tinley Park’s Plan Commission should have approved the project and allowed construction to begin. Instead, the lawsuit alleged that in response to race-based community opposition, Tinley Park trustees requested the Plan Commission table consideration of the project. The Plan Commission did so, stalling the project indefinitely.
Under the settlement, the Village will pay a total of $360,000 in monetary damages to the Village’s former planning director who was placed on leave because of her support for the project, as well as a $50,000 civil penalty to the United States. In addition, the Village will also take a number of actions to guard against further housing discrimination, including training elected officials and individuals involved in the planning process, developing a fair housing policy, and hiring a fair housing compliance officer. The developer of the property reached a separate settlement with the Village in April 2017.
“Increasing access to housing, including through affordable housing, is important to the development of our communities,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department will continue to enforce federal civil rights laws, and protect against discrimination, including on the basis of race, with respect to access to affordable housing.”
“Access to housing free from discrimination is a right afforded to all Americans,” said U.S. Attorney John R. Lausch, Jr. of the Northern District of Illinois. “This settlement is an example of our office’s continuing effort to enforce anti-discrimination laws that protect those rights.”
Individuals who believe they have been victims of housing discrimination practices may file a complaint with the Department of Housing and Urban Development (HUD) or a lawsuit in federal or state court. Individuals must file their complaint with HUD within one year of a housing discrimination incident or file a lawsuit in federal or state court within two years of an incident. For more information about housing discrimination laws, call (202) 514-4713 or visit the Department of Justice website at http://www.usdoj.gov/crt/housing/index.html.
Chicago Financial Advisor Guilty of Fraud for Swindling Investors and Family out of More Than $2 MillionRead the Press Release
CHICAGO — A Chicago financial advisor who told clients that a “fat finger” trading error caused major losses to their investments admitted in federal court today that he actually lost all of their funds through poor trading.
VISHAL SAVLA, 37, of Chicago, pleaded guilty to one count of wire fraud. Savla operated VCAP LLC, a Chicago investment fund that purported to trade in equities, options and futures contracts.
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 government is represented by Assistant U.S. Attorney Sunil Harjani.
Savla admitted in a plea agreement that from 2014 to earlier this year, he raised approximately $2.3 million from investors on the promise of substantial returns. VCAP was largely unsuccessful during that time, losing approximately 96% in 2014 and more than 99% in the first eleven months of 2016. Savla continued to solicit and accept investments, and he sent clients phony account statements that fraudulently showed large profits instead of heavy losses, the plea agreement states. At one point in December 2016, according to the plea agreement, Savla falsely represented to clients that he accidentally committed a “fat finger trade” – an error when entering a trade online – that caused VCAP to decline by approximately 90% in a single day. Savla admitted in the plea agreement that there was no such error, and that trading losses had caused the decline.
In addition to the losses incurred by investors, Savla’s plea agreement acknowledges that he borrowed funds from family and friends to help repay VCAP investors. One family member, after being told by Savla about the purported “fat finger” mistake, loaned Savla $500,000, the plea agreement states. Savla used this money to partially repay some of the VCAP investors.
Savla also admitted in his plea agreement that he spent approximately $260,000 of investor funds for his own personal benefit, including living expenses. VCAP did not have any cumulative trading profits that allowed for these withdrawals.
Wire fraud is punishable by up to 20 years in prison. U.S. District Judge Charles R. Norgle set sentencing for Jan. 9, 2019, at 10:00 a.m.