Northern District of Illinois

CHICAGO — A federal jury today convicted a Chicago investment manager on fraud charges for swindling more than $10 million from clients and lenders.

SHAWN BALDWIN, who owned and controlled various investment firms in Chicago, exaggerated his financial success and professional connections to fraudulently obtain more than $10 million from at least 15 investors and lenders.  Baldwin falsely claimed that their funds would be invested in stocks and other investment products, when in reality he spent the money for his own personal benefit.  Baldwin’s fraud scheme began in 2006 and continued until 2017.

The jury in U.S. District Court in Chicago convicted Baldwin, 53, of Olympia Fields, on seven counts of wire fraud.  U.S. District Judge John Robert Blakey set sentencing for July 9, 2019.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The government is represented by Assistant U.S. Attorneys Matthew Getter, Heidi Manschreck and Michelle Petersen.

According to evidence presented at trial, Baldwin obtained funds from individual investors, as well as from corporate lenders who lent him money for use in business and personal dealings.  Baldwin claimed that compliance officers and professional advisors were affiliated with his firms, when no such relationships actually existed. 

Baldwin also deceived investors and lenders by misrepresenting and minimizing the serious disciplinary actions taken against him by regulators.  The regulatory actions included the revocation of his certifications with the Financial Industry Regulatory Authority in 2009, and a permanent prohibition from offering securities sales or investment advice, which the State of Illinois imposed in 2013.

Evidence at trial further revealed that Baldwin attempted to conceal the fraud scheme by furnishing victims with bogus account statements that misrepresented the value of their funds.  He also lulled his victims by falsely maintaining that he was developing lucrative business deals and new contacts that would lead to profits from initial public stock offerings.  In reality, Baldwin could not pay back investors because he had lost or spent their money.

Each count of wire fraud is punishable by up to 20 years in prison.  The Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

ROCKFORD — A Rockford man pleaded guilty in federal court today before U.S. District Judge Frederick J. Kapala to illegally possessing a firearm and ammunition as a convicted felon.

AUSTIN A. RICHARDSON, 25, admitted that on Sept. 20, 2017, he possessed a Taurus 9mm pistol and approximately 50 rounds of ammunition at a shooting range after having been previously convicted of a felony.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. The government is represented by Assistant U.S. Attorney Talia Bucci.

As stated in the plea agreement, Richardson and another individual took the Taurus 9mm pistol to a firearms retailer and shooting range in Loves Park, and Richardson shot the pistol numerous times at the shooting range.  Richardson and the other individual also bought approximately 50 rounds of ammunition from the firearms retailer, with Richardson providing the money for the purchase.

Richardson faces a maximum sentence of ten years’ imprisonment, a term of supervised release of up to three years following imprisonment, and a fine of up to $250,000.  The actual sentence will be determined by the United States District Court, guided by the Sentencing Guidelines.  Sentencing is scheduled for June 20, 2019, at 2:00 p.m.

ROCKFORD — A Rockford man pleaded guilty today in federal court before U.S. District Judge Frederick J. Kapala to one count of attempted robbery and one count of using, carrying, and brandishing a firearm during a crime of violence. 

DARNELL LEAVY, 28, admitted in a written plea agreement that at approximately 7:00 p.m. on Nov. 5, 2015, he and others attempted to rob the Zake Convenience store, 824 Seventh St. in Rockford.  As stated in Leavy's plea agreement, co-defendant RICKEY CLAYBRON, 33, of Rockford, entered the store first with his gun pointed at two clerks who were behind a glass enclosure.  Leavy entered second and also began pointing his gun at the clerks, according to Leavy's plea agreement.  A third individual then entered the store carrying a bag meant for the proceeds of the robbery, Leavy's plea agreement states.  The employees of the store barricaded themselves in the glassed-in area where the registers were located.  Leavy's plea agreement further states that Leavy tried to kick the door open, but was unsuccessful.  In the meantime, according to Leavy's plea agreement, Claybron came around the front of the glass enclosure and pointed his gun through the small hole in the front that is used to conduct business with customers.  Eventually, Leavy and the other robbers gave up on the robbery and walked out of the store, Leavy's plea agreement states.

Leavy's guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The federal investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, which includes law enforcement officers and agents from the FBI, Rockford Police Department, Loves Park Police Department and Freeport Police Department. The government is represented by Assistant U.S. Attorney Margaret J. Schneider.

For the attempted robbery, Leavy faces a maximum sentence of 20 years’ imprisonment, to be followed by a term of supervised release of up to three years following imprisonment.  For the firearm charge, Leavy faces a statutory mandatory minimum sentence of seven years and a maximum sentence of life, to be consecutive to any other sentence imposed, as well as a  term of supervised release of up to five years following imprisonment.  Both charges also carry a fine of up to $250,000 apiece.  The sentence will be determined by the United States District Court, guided by the Sentencing Guidelines.  Sentencing for Leavy is set for June 4, 2019, at 11:00 a.m.

Claybron is charged with one count of conspiracy to commit robbery, three counts of robbery, one count of attempted robbery, and four counts of using, carrying, and brandishing a firearm during a crime of violence.  Claybron has pleaded not guilty and is in custody while awaiting trial.

Also charged in the case is DEANDRE R. HAYWOOD, also known as “Duke,” 28, of Rockford. Haywood is charged with one count of conspiracy to commit robbery, three counts of robbery, and three counts of using, carrying, and brandishing a firearm during a crime of violence. Haywood has pleaded not guilty and is in custody while awaiting trial. 

The public is reminded that an indictment contains only charges and is not evidence of guilt.  The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

ROCKFORD — A husband and wife from Crystal Lake have pleaded guilty in federal court to multiple bank robberies in Northern Illinois. 

DANIEL R. PLUSHKIS, 27, pleaded guilty today to three counts of bank robbery, and he admitted as part of a plea agreement that he committed two other bank robberies. His wife, JESSICA E. PLUSHKIS, 29, pleaded guilty on Feb. 11, 2019, to two counts of aiding and abetting a bank robbery.

The guilty pleas were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The Cary, Huntley, Arlington Heights, Streamwood, Algonquin, and Crystal Lake Police Departments assisted in the investigation. The government is represented by Assistant U.S. Attorney Talia Bucci.

As stated in Daniel Plushkis’s written plea agreement, on Dec. 1, 2017, Daniel Plushkis robbed the Chase Bank, 300 Northwest Hwy. in Cary.  Daniel Plushkis entered the bank wearing a long fake beard, a hooded black jacket, a camouflage hat, and sunglasses.  He handed a teller an envelope with a note on it stating that he had a gun, and he began counting down from 30.  The teller put $5,870 from the bank’s cash drawer into the envelope, and Daniel Plushkis fled from the bank with the cash.

Daniel also admitted that he robbed the TCF Bank, 13200 Village Green Dr. in Huntley, on Dec. 10, 2017, and the TCF Bank, 1860 S. Arlington Heights Rd., in Arlington Heights, on Dec. 13, 2017.  In those robberies, Daniel Plushkis wore a disguise including a long fake beard and sunglasses, handed the teller an envelope with a note taped to it, and began a countdown.  Daniel Plushkis stole $237 during the Dec. 10, 2017, robbery in Huntley, and $2,676 during the Dec. 13, 2017, robbery in Arlington Heights. As part of Daniel Plushkis’s written plea agreement, he also admitted that he robbed the TCF Bank, 217 E. Irving Park Rd. in Streamwood, on Dec. 20, 2017.  Daniel Plushkis wore a disguise including a long fake beard, sunglasses, and a hooded black jacket.  He handed the teller an envelope with a note taped to it and verbally demanded that the teller give him the money that the teller was in the process of counting.  The teller handed over $500, and Daniel Plushkis fled from the bank with the cash.

As part of Jessica Plushkis’s written plea agreement, she admitted that she aided and abetted her husband in committing the Dec. 13, 2017, bank robbery in Arlington Heights.  Jessica Plushkis admitted that she purchased a fake beard, black-colored hair spray, and black face paint for Daniel Plushkis a few hours before the Dec. 13, 2017, robbery, knowing that Daniel Plushkis intended to use those items as part of his disguise for the robbery.

As part of both plea agreements, the couple also admitted that Daniel Plushkis robbed the TCF Bank, 103 S. Randall Rd. in Algonquin, on Dec. 23, 2017, and that Jessica aided and abetted him in committing that robbery.  After Daniel Plushkis handed the teller a note stating that he had a gun, the teller put $4,350 from the bank drawer into an envelope. Daniel Plushkis fled the premises with the envelope and cash.  Daniel Plushkis headed toward the vehicle where his wife was waiting for him, but he was apprehended by a private citizen in the parking lot before making it back to the vehicle.  Jessica Plushkis admitted that, after her husband was apprehended, she quickly drove out of the parking lot to avoid being apprehended by law enforcement, but was quickly pulled over by a law enforcement officer as she exited the parking lot.  Law enforcement officers at the scene recovered the money Daniel Plushkis stole from the bank.

Each of the counts to which Daniel Plushkis and Jessica Plushkis pleaded guilty carries a maximum sentence of 20 years’ imprisonment, a term of supervised release of up to three years following imprisonment, and a fine of up to $250,000.  Each defendant’s sentence will be determined by the United States District Court, guided by the Sentencing Guidelines.  U.S. District Judge Frederick J. Kapala set sentencing for Jessica Plushkis on May 28, 2019, at 2:30 p.m., and for Daniel Plushkis on June 25, 2019, at 2:00 p.m.

CHICAGO — A convicted felon was charged today with federal firearm violations for allegedly illegally possessing a machine gun, silencers and ammunition in his Lake County home.

GREGORY DOMENICO, 35, of Wauconda, is charged with one count of illegal possession of ammunition by a convicted felon, and one count of illegal possession of an unregistered machine gun and three silencers.  Domenico possessed the machine gun, silencers and five rifle cartridges at his residence in December 2018 and January 2019, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago.  Domenico was arrested Thursday, and law enforcement carried out a court-authorized search of his residence. 

Domenico made an initial court appearance today before U.S. Magistrate Judge Sheila Finnegan in Chicago and was ordered to remain in federal custody.  A detention hearing was scheduled for Feb. 27, 2019, at 10:30 a.m.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; John Idleburg, Lake County Sheriff; and David Wermes, Chief of the Wauconda Police Department.  The case was investigated by the Lake County Gang Crimes Task Force.  The government is represented by Assistant U.S. Attorney Tiffany Ardam.

According to the complaint, an undercover law enforcement officer made several purchases of unregistered firearm parts from Domenico.  The sales occurred at Domenico’s residence, the complaint states.

According to the complaint, Domenico sold the undercover officer two silencers on Dec. 13, 2018; a silencer and an auto-sear, which is designed to convert a semi-automatic pistol into a machine gun, on Dec. 18, 2018; and five rifle cartridges on Jan. 22, 2019.  Domenico was previously convicted of a felony and could not lawfully possess a firearm, firearm parts, or ammunition.  Domenico has never held a federal firearms license nor has he registered the possession and transfer of any items with the National Firearm Registration and Transfer Record, the complaint states.

ROCKFORD — A Calumet City man pleaded guilty to firearms charges today before U.S. District Judge Frederick J. Kapala in Rockford. 

BRUCE WALKER, 24, pleaded guilty to one count of conspiracy to commit an offense against the United States by stealing a firearm from a licensed firearms dealer, and one count of possessing a stolen firearm. 

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives.  The Manteno, Tinley Park, Chicago, and Loves Park Police Departments assisted in the investigation. The government is represented by Assistant U.S. Attorney Talia Bucci.

According to the written plea agreement, in the early hours of April 18, 2017, Walker and two other individuals obtained a stolen vehicle from Cook County and drove it to a federally-licensed firearms dealer in Manteno.  The three individuals then used a hammer to shatter one of the dealer's glass exterior doors and entered the premises.  After entering, they attempted to break into a firearms safe inside the office, but were not successful.  On the way out, one of the individuals stole a rifle and a 30-round magazine hidden inside an office.  Walker and the other two individuals also stole boxes of firearm ammunition before fleeing the premises, and returned to Cook County with the rifle, 30-round magazine, and ammunition.  About three hours later, the three individuals used the same stolen vehicle to drive to a federally-licensed firearms dealer in Tinley Park, where Walker and another individual attempted to shatter the front glass door and a front window.  When they were unable to gain entry to the business, they fled to the stolen vehicle where their getaway driver was waiting.

Walker faces a maximum sentence of five years’ imprisonment on the conspiracy charge, and a maximum of ten years’ imprisonment for possessing a stolen firearm.  In addition, Walker faces a period of supervised release of up to three years following imprisonment, and a fine of up to $250,000 on each charge.   The sentence will be determined by the United States District Court, guided by the Sentencing Guidelines.  Sentencing is set for May 30, 2019, at 10:00 a.m. 

KELVIN CULPS, also known as “Forty,” 22, of Dolton, was also indicted in the case and charged with conspiracy to commit an offense against the United States by stealing a firearm from a licensed firearms dealer, possessing a stolen firearm, and illegally possessing a firearm as a convicted felon. Culps is currently in custody pending trial.  The public is reminded that an indictment contains only charges and is not evidence of guilt.  Culps is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

CHICAGO — A federal jury in Chicago has convicted the self-appointed bishop of a Pennsylvania ministry of forcing church members to work certain jobs, pocketing their earnings, and directing them to defraud various hotels.

TRACIE DICKEY, also known as “Tracie Williams,” 55, of Pittsburgh, Pa., was found guilty Friday on one count of wire fraud and one count of labor trafficking.  Each count is punishable by up to 20 years in prison.  U.S. District Judge Sara L. Ellis set sentencing for Aug. 7, 2019, in federal court in Chicago.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  Valuable assistance was provided by U.S. Attorney’s Offices in the Northern District of Texas and Middle District of Florida, and the FBI’s Pittsburgh, Pa., field office.  The government is represented by Assistant U.S. Attorneys Maureen E. Merin and Eric S. Pruitt.

Dickey was a self-appointed bishop of Deliverance Tabernacle Ministries, an organization she founded that proclaimed to offer faith-based services in locations such as Pennsylvania, North Carolina, and Florida.  She also purported to operate a travel agency known as World Ambassador Travel. 

Evidence at trial revealed that Dickey recruited young women to become members of the ministry, and directed them to work multiple jobs, including as desk clerks at hotels.  She instructed the members on how to have the hotels pay reservation-commission fees to Dickey’s travel agency, via a bank account controlled by Dickey.  In reality, the travel agency never actually booked hotel reservations on behalf of guests.  

From 2005 to 2013, the hotels paid approximately $86,000 in commissions to Dickey.  Dickey also collected approximately $333,000 in wages earned by members of her ministry.  Dickey emotionally and physically abused the members, and coerced them into following her rules and remitting their earnings to Dickey or her church.  Dickey’s tactics included starving and humiliating church members, forcing some of them into homelessness, and threatening that God would harm their families if they did not comply with Dickey’s rules.  Several of Dickey’s victims testified at trial about their ordeals.

CHICAGO — A federal jury today convicted the mayor of Portage, Ind., on a corruption charge for soliciting and pocketing a bribe in exchange for influencing the awarding of city contracts.

The jury in U.S. District Court in Hammond, Ind., convicted JAMES SNYDER, 38, of Portage, Ind., on one count of bribery and one count of obstruction of internal revenue laws.  The jury acquitted Mayor Snyder on one other bribery count.  U.S. District Judge Joseph S. Van Bokkelen set sentencing for May 14, 2019.  The bribery conviction is punishable by up to ten years in prison, while the obstruction count is punishable by up to three years.

The verdict was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Grant Mendenhall, Special Agent-in-Charge of the Indianapolis office of the Federal Bureau of Investigation; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.  The Indiana State Police provided valuable assistance.  The government was represented at trial by Assistant U.S. Attorneys Philip C. Benson and Jill R. Koster of the U.S. Attorney’s Office for the Northern District of Indiana.  The prosecutors were supervised by the U.S. Attorney’s Office for the Northern District of Illinois after recusals by supervisory personnel from the Northern District of Indiana.

Evidence at trial revealed that from 2012 to 2014, Mayor Snyder corruptly solicited and agreed to accept a $13,000 check to influence the awarding of a series of city contracts, including more than $1.1 million in contracts approved by the Portage Board of Works.

The obstruction charge involved a scheme to impede the IRS’s collection of personal taxes owed by Mayor Snyder, and the collection of payroll taxes owed by Mayor Snyder’s mortgage business – Portage, Ind.-based First Financial Trust Mortgage LLC.  While the IRS was attempting to collect these tax debts, Mayor Snyder secretly diverted funds from the mortgage business to a sole proprietorship that he created.  Mayor Snyder submitted forms to the IRS that failed to disclose, among other things, the existence of the sole proprietorship and its bank account.

CHICAGO — A convicted felon has been found guilty of illegally possessing an assault rifle and a loaded handgun in DuPage County.

CAMERON BATTISTE, 36, possessed the guns in April 2017 at an apartment complex in Willowbrook.  At the time of his arrest on April 7, 2017, the handgun was loaded with six live rounds.  Battiste had previously been convicted of a felony and was not legally allowed to possess a firearm.

A federal jury in Chicago on Wednesday convicted Battiste on one count of illegal possession of a firearm by a felon.  The conviction is punishable by up to ten years in prison.  U.S. District Judge Matthew F. Kennelly set sentencing for May 9, 2019, at 1:30 p.m.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.  Substantial assistance was provided by the Cook County Sheriff’s Police Department and the Bolingbrook Police Department.  The government is represented by Assistant U.S. Attorneys Ankur Srivastava, William Dunne and Saurish Appleby-Bhattacharjee.

Evidence at the three-day trial revealed that the two firearms had been stolen from a cargo train that passed through Chicago on Sept. 18, 2016.  Another convicted felon, co-defendant IESHA STANCIEL, 39, of Willowbrook, was arrested at the same time as Battiste for illegally possessing the same two firearms.  Stanciel pleaded guilty prior to trial and was sentenced last month to six years in federal prison. 

During Stanciel’s sentencing hearing, the government presented evidence that Stanciel threatened an individual who was cooperating with law enforcement.  In November 2016, Stanciel posted intimidating messages on the cooperating individual’s Facebook page.  One of the posts contained several emojis of a handgun and referred to the individual as a “snitch.”

CHICAGO — A convicted felon from Chicago was arraigned today on a federal firearm charge for illegally possessing three handguns on the city’s South Side.

DERRICK CLAIBORNE, 43, of Chicago, pleaded not guilty to one count of illegal possession of a firearm by a convicted felon.  U.S. Magistrate Judge Sidney I. Schenkier ordered Claiborne to remain detained in federal custody.

Claiborne was one of four defendants indicted last month as part of a federal investigation that disrupted a Missouri-to-Chicago firearms pipeline.  The probe, led by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, revealed that numerous handguns were brought to Chicago last year by two Missouri residents – JUMONTA MOORE and MARCUS INGRAM, according to a criminal complaint and affidavit previously filed in the case.  Moore and Ingram then supplied the guns to JAMES SAUNDERS, a convicted felon from Chicago, who illegally sold some of the firearms to confidential informants who were cooperating with law enforcement, the complaint states.  Saunders also allegedly sold three guns to Claiborne.

All four defendants were recently arrested.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of ATF; and Eddie Johnson, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorney Jared C. Jodrey.

Saunders, 47, is charged with five counts of illegal possession of a firearm by a convicted felon, and one count of dealing firearms without a license.  On Friday, Saunders pleaded not guilty to the charges.  He remains in federal custody. 

Ingram, 26, of Charleston, Mo., is charged with two counts of illegal transportation of a firearm by a person under felony indictment.  Ingram allegedly transported five handguns to Chicago last fall while under an unrelated felony indictment in Scott County, Mo.  Ingram pleaded not guilty to the federal charges during his arraignment earlier this month.  He remains in federal custody.

Moore, 20, of Sikeston, Mo., is charged with one count of illegal transportation of a firearm by a person under felony indictment.  Moore allegedly transported two handguns to Chicago last June while under an unrelated felony indictment in New Madrid County, Mo.  Moore pleaded not guilty to the federal charge during his arraignment last month.  Judge Schenkier ordered Moore released from custody on a $50,000 appearance bond.

Claiborne was previously convicted of two felonies, including a gun-related conviction, and was not lawfully allowed to possess a firearm when he allegedly purchased three handguns from Saunders last fall in Chicago’s Woodlawn neighborhood.

The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. 

Dealing firearms without a license is punishable by a maximum sentence of five years in prison.  Illegal possession by a convicted felon carries a maximum sentence of ten years.  Illegal transportation by a person under felony indictment is punishable by up to ten years.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

ROCKFORD — A Rockford man was arrested today on a charge of aiming the beam of a laser pointer at an aircraft and at the flight path of an aircraft on Dec. 6, 2018, in Rockford.

BRENTON WELLS, 45, was indicted on the charge by a federal grand jury on Feb. 5, 2019. Wells will appear for arraignment today at 3:30 p.m. in federal court in Rockford, before U.S. Magistrate Judge Iain D. Johnston.

The charge carries a maximum potential penalty of up to five years in prison and a fine of up to $250,000.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

The arrest was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Dan O’Shea, Rockford Chief of Police.

The public is reminded that an indictment is only a charge and is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.

CHICAGO — An Illinois accountant was charged today with criminal fraud for allegedly misappropriating more than $65 million from individuals and financial institutions.

SULTAN ISSA was a certified public accountant and the Chief Financial Officer of a group of partnerships, corporations and trusts owned by a Chicago-area family.  From 2007 to 2017, Issa embezzled at least $55 million of the family’s assets and solicited at least another $8.8 million from individuals in his personal capacity, claiming he would invest their money in legitimate opportunities, including a luxury auto dealership Issa owned in Burr Ridge, according to a criminal information filed in U.S. District Court in Chicago.  Issa used tens of millions of dollars in fraud proceeds to cover personal expenses and to secure fraudulent loans from financial institutions totaling at least $83 million to acquire, among other things, 25 residential properties in Illinois, Montana, Michigan, and Cabo San Lucas, Mexico, two private aircraft, four yachts, approximately 60 firearms, and assorted watches, jewelry and memorabilia, the information states.  He used another $15 million in fraudulently obtained funds to pay expenses related to the auto dealership, including the purchase of a showroom, the acquisition of luxury cars, and the salaries of employees, the information states.

The information charges Issa, 45, of Hinsdale, with one count of wire fraud affecting a financial institution.  Arraignment in federal court in Chicago has not yet been scheduled.

The information was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The government is represented by Assistant U.S. Attorney Kathryn E. Malizia.

Issa attempted to conceal the scheme by providing financial institutions with fraudulent loan documents and forging authorizations to gain control of funds belonging to the family-owned group, the information states.  Issa also created false account statements and made Ponzi-type payments to individual investors, the information states.

The public is reminded that a charge is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. 

Wire fraud affecting a financial institution carries a maximum sentence of 30 years in prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — The U.S. Attorney’s Office in Chicago today announced federal criminal charges against five individuals in connection with violent carjackings in the city or suburbs.

U.S. v. McKenzie, 19 CR 019

BRIAN MCKENZIE, 23, of Chicago, is charged with two counts of carjacking for allegedly taking two vehicles at gunpoint on Oct. 18, 2018.  McKenzie used a handgun to take a Dodge Charger from a driver in the parking lot of a restaurant in Orland Park, and later crashed the vehicle into a worker at a construction site in Oak Forest, according to a criminal complaint filed in U.S. District Court in Chicago.  McKenzie allegedly fled on foot and used a handgun to carjack a passing Mazda 3 sedan.  He then put the Mazda in reverse and drove over the leg of a law enforcement officer who was pursuing him, the complaint states.

U.S. Magistrate Judge Maria Valdez on Tuesday ordered McKenzie held in federal custody.  A detention hearing is set for Feb. 4, 2019, at 11:00 a.m., before U.S. Magistrate Judge M. David Weisman.  The case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, the Orland Park Police Department, and the Oak Forest Police Department.  The government is represented by Assistant U.S. Attorney Kavitha Babu.

U.S. v. Carter, et al, 19 CR 055

In an unrelated case, three defendants have been indicted on a federal carjacking charge for allegedly violently taking a Land Rover from a driver in the Wicker Park neighborhood of Chicago on July 20, 2018.  Charged are TYRAN CARTER, 26, DWAYNE LIBERTY, 21, and TERRONDE GORDON, 20, all of Chicago.  The indictment also charges Carter individually with carjacking a Toyota Prius in the city’s Hyde Park neighborhood earlier the same day. 

Arraignment for the trio is set for Feb. 5, 2019, at 11:00 a.m., in federal court in Chicago.  The case was investigated by the Vehicular Hijacking Task Force, a joint federal and state initiative consisting of officers, agents and prosecutors from the U.S. Attorney’s Office, Chicago Police Department, ATF, Federal Bureau of Investigation, Cook County State’s Attorney’s Office, Illinois State Police, and suburban police departments.  The government is represented by Assistant U.S. Attorney Timothy Storino.

U.S. v. Dukes, 19 CR 048

In another recent case, KASHIF DUKES, 24, of Chicago, was indicted on a federal carjacking charge for allegedly taking a Mercedes-Benz sedan in Chicago’s Bronzeville neighborhood on Sept. 10, 2017.  Dukes displayed a firearm and threatened the driver before taking the car, according to the government’s memorandum in support of detention. 

U.S. Magistrate Judge M. David Weisman on Tuesday ordered Dukes detained in federal custody pending trial.  The case was investigated by the ATF Chicago Crime Gun Strike Force, in conjunction with the Chicago Police Department.  The government is represented by Assistant U.S. Attorneys Katie Durick and John D. Mitchell.

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The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the ATF; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; and Eddie Johnson, Superintendent of the Chicago Police Department.

The public is reminded that charges are not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Carjacking is punishable by up to 15 years in prison.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A west suburban musician pleaded guilty today to a federal child pornography charge and admitted enticing several underage girls, many as young as 14 years old, to produce sexually explicit videos of themselves.

AUSTIN JONES, 26, of Bloomingdale, pleaded guilty to one count of receipt of child pornography.  He faces a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years.  U.S. District Judge John Z. Lee conditionally accepted the guilty plea and set sentencing for May 3, 2019, at 1:30 p.m.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago.  The Illinois Attorney General’s Office’s Internet Crimes Against Children Task Force and the Bloomingdale Police Department provided assistance in the investigation.  The government is represented by Assistant U.S. Attorney Katherine Neff Welsh.

Jones is a musician with a significant following on social media, including Facebook and YouTube.  His online music videos have been viewed millions of times. 

Jones admitted in a plea agreement that in 2016 and 2017 he chatted with six underage girls on Facebook and enticed them to produce pornographic videos of themselves and send them to him.  Jones told some of his victims to send him the videos as a way to “prove” that they were his biggest fans, the plea agreement states.  He also told some of his victims that the videos were part of a modeling opportunity, and that he could assist them in gaining followers on the social media site Instagram, the plea agreement states.

In addition to the six victims whom he enticed to send videos, Jones further admitted in the plea agreement that he used Facebook on approximately 30 other occasions to attempt to persuade minor girls to send him sexually explicit videos and photographs.    

If you believe you are a victim of sexual exploitation, you are encouraged to call the ICE Tip Line at 1-866-DHS2-ICE (1-866-347-2423) or the National Center for Missing and Exploited Children at 1-800-843-5678.  The hotlines are available 24 hours a day, seven days a week.

ROCKFORD — Three Chicago-area men have pleaded guilty to the robberies of Rockford-area cell phone stores. 

NARCELLUS J. TAYLOR JR., also known as “J.T.,” 23, of Chicago, HERMAN L. DOSS JR., 27, of Dolton, and MARIO J. ANDERSON, 25, of Riverdale, admitted to conspiring with each other to steal cellular telephones and computers from stores in Illinois, Wisconsin and Indiana.  Anderson and Doss pleaded guilty today before U.S. District Judge Philip G. Reinhard, while Taylor pleaded guilty on Sept. 21, 2018.  Taylor and Doss each pleaded guilty to one count of conspiracy to commit robbery, three counts of robbery by threatened force, and one count of using a firearm during a crime of violence, while Anderson pleaded guilty to one count of conspiracy to commit robbery, two counts of robbery by threatened force, and one count of using a firearm during a crime of violence.

According to written plea agreements, between Aug. 5, 2016, and Jan. 6, 2016, Taylor conspired with Anderson, Doss and others to rob certain cellular telephone and electronics stores.  Taylor identified the stores and paid others, including Anderson and Doss, to commit the robberies at his direction.  The men conducted surveillance and communicated with other individuals during the robberies.  After the robberies were completed, Taylor took the stolen items to Chicago where he sold them.  Taylor then determined the amount each defendant received from the proceeds based upon their roles in the robberies.  Taylor admitted to conspiring to commit eight robberies, five of which Doss participated in, and four of which Anderson participated in.  Taylor admitted that the local robberies included one on Dec. 2, 2016, of a Best Buy in DeKalb, and two with Doss and Anderson at the Simply Mac store in Cherry Valley, on Dec. 16, 2016, and Jan. 6, 2017.  The three defendants admitted to using firearms during the Jan. 6, 2017, robbery.

Each count of robbery carries a maximum sentence of 20 years’ imprisonment, a term of supervised release of up to three years following imprisonment, and a fine of up to $250,000.  Using a firearm during a crime of violence carries a maximum sentence of life imprisonment, with a mandatory minimum sentence of 7 years and a term of supervised release of up to five years, which is required to be consecutive to any other sentence imposed, as well as a fine of up to $250,000. The actual sentence for each defendant will be determined by the United States District Court, guided by the Sentencing Guidelines.

Sentencing for Anderson is scheduled for May 13, 2019, at 9:00 a.m.  Sentencing for Doss is scheduled for May 13, 2019, at 10:30 a.m.

The guilty pleas were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The federal investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, which includes law enforcement officers and agents from the FBI, Rockford Police Department, Loves Park Police Department and Freeport Police Department.  The Illinois State Police, Cherry Valley Police Department, Rockford Police Department, DeKalb Police Department, Burbank Police Department, Crestwood Police Department, Kenosha (Wisc.) Police Department, and Valparaiso (Ind.) Police Department also assisted in the investigation.

The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.

ROCKFORD — A Rockford man was sentenced today by U.S. District Judge Philip G. Reinhard to a total of 114 months in federal prison for the robbery of the U.S. Cellular store, 6430 E. State St., in Rockford, on June 1, 2016, and for using a firearm during a violent crime. 

RICKY WOODS, 23, was sentenced to 30 months’ imprisonment for the robbery, and was ordered to serve a consecutive term of 84 months’ imprisonment for using a firearm during a crime of violence.  After serving his sentence in federal prison, Woods will be placed on three years of supervised release.  Woods pleaded guilty to the charges on Sept. 27, 2018.

Also charged was McKINLEY HOARDE III, 23, of Rockford, who on July 9, 2018, pleaded guilty to the robbery and the gun charge.  Hoarde was sentenced on Oct. 19, 2018, to 66 months’ imprisonment for the robbery, and was ordered to serve a consecutive term of 84 months’ imprisonment for using a firearm during a crime of violence.  After serving his sentence in federal prison, Hoarde will be placed on five years of supervised release.

Both men admitted that after arriving at the U.S. Cellular store they pulled out and pointed their guns at the only employee at the store.  One of them grabbed the employee by the shirt collar and pulled the employee to the back room of the store, where they ordered the employee to the ground.  Hoarde and Woods then took cellular phones from the store and removed electrical equipment from the wall in an attempt to disable the security system, before running out of the store.

The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The federal investigation was conducted by ATF and the FBI-led Rockford Area Violent Gang Task Force, which includes law enforcement officers and agents from the FBI, Rockford Police Department, Loves Park Police Department and Freeport Police Department.  The government was represented by Assistant U.S. Attorney Margaret J. Schneider.

ROCKFORD — A Mexican citizen pleaded guilty today in federal court before U.S. District Judge Philip G. Reinhard to bank fraud. 

JAVIER SANTOS SUAREZ, also known as Roberto Rios, Simon Estrada, Jorge Viveros, Francisco Alvarado, and Fernando Razo, 40, admitted to scheming with co-defendants from January 2003 through August 2003 to defraud and obtain money using counterfeit checks - payable to fictitious names - that the defendants cashed in Northern Illinois and other states.  

According to a written plea agreement, Suarez and his co-defendants used counterfeit checks that they cashed at banks near the businesses on which they were purportedly drawn.  The defendants used false personal identification documents, such as false Resident Alien Cards, when presented to the banks to cash.  Suarez admitted that he kept at least a portion of the cash he received from personally cashing counterfeit checks, and turned the balance of the cash over to other participants.  Suarez and his co-defendants cashed counterfeit checks totaling $721,617 at banks and businesses in Poplar Grove, Marengo, and Harvard, as well as in other states. 

Suarez was arrested in Wisconsin on the federal charges. He faces a maximum sentence of 30 years’ imprisonment, a term of supervised release of up to five years following imprisonment, and a fine of up to $1 million or twice the gross gain or gross loss resulting from the offense, whichever is greater.  The actual sentence will be determined by the U.S. District Court, guided by the Sentencing Guidelines.  Sentencing for Suarez is set for May 13, 2019, at 10:00 a.m. 

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.

Also convicted of bank fraud in the case were:

ROGELIO RAMOS, 38, who pleaded guilty on Sept. 15, 2004, and was sentenced on Nov. 19, 2004, to 40 months in prison, to be followed by five years of supervised release. Ramos was ordered to pay restitution in the amount of $773,336.66.

LEONEL BELLO LEON, 41, who pleaded guilty on July 15, 2005, and was sentenced on Sept. 26, 2005, to 31 months in prison, to be followed by five years supervised release. Leon was ordered to pay restitution in the amount of $718,778.56.

MISEAL SANGABRIEL ALARCON, 38, who pleaded guilty on Dec. 16, 2005, and was sentenced on March 24, 2005, to 32 months in prison, to be followed by three years of supervised release. Alarcon was ordered to pay restitution in the amount of $141,738.50.

The government is represented by Assistant U.S. Attorney Michael D. Love.

CHICAGO — A Kendall County real estate professional has been indicted on federal fraud charges for allegedly orchestrating a $23 million Ponzi scheme.

MICHELLE LABRA owned and operated Labra Group Realtors LLC, an Aurora-based investment program that used the promise of outsized returns to receive $23 million from at least 25 investors from 2009 to 2015, according to an indictment returned Thursday in U.S. District Court in Chicago.  Instead of investing the money, Labra spent approximately $19.6 million to pay earlier investors via Ponzi-type payments, while misappropriating more than $3.3 million for her personal benefit, including expensive jewelry and vacations in Jamaica, Mexico and Guatemala, the indictment states. 

The indictment charges Labra, 47, of Yorkville, with three counts of wire fraud and one count of making a false statement to the U.S. Treasury Inspector General for Tax Administration.  Arraignment in federal court in Chicago has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and J. Russell George, United States Treasury Inspector General for Tax Administration.  The government is represented by Assistant U.S. Attorney John D. Mitchell.

According to the indictment, Labra claimed that investor funds would be used to make short-term, high-interest loans to borrowers, and that the loans would be secured by the borrowers’ residences.  Labra represented that investors would receive full repayment of the principal loan amount, a service fee paid by the borrower, and at least 14% interest on the loan, the indictment states.  In reality, Labra never entered into any agreements with borrowers.

Labra attempted to conceal the scheme by making false representations to investors about the reasons why she could not return their money or send them their purported gains.  At one point Labra falsely claimed that IRS agents had issued levies and seized investor funds from the Labra Group’s bank accounts, the indictment states.  In reality, the IRS had not seized any funds or issued any such levies.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. 

Each count of wire fraud carries a maximum sentence of 20 years in prison, while the false statement charge is punishable by up to five years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

ROCKFORD — A Machesney Park resident was arrested Wednesday on a charge of possessing child pornography.

JAMES UMBAUGH, 53, was charged in a federal criminal complaint.  According to the complaint, a federal search warrant was executed by federal law enforcement officers on Dec. 18, 2018, at Umbaugh’s residence.  The complaint alleges that upon arriving at the residence officers found Umbaugh seated before a computer screen connected to a computer, and that located on the computer were images and videos of child pornography, including prepubescent minors engaged in sexually explicit conduct.

Possessing child pornography carries a minimum mandatory sentence of ten years in prison and up to a maximum of 20 years, and a fine of up to $250,000.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.  Umbaugh appeared yesterday before U.S. Magistrate Judge Iain D. Johnston and is in custody pending a hearing on pre-trial release.

The public is reminded that a complaint is only a charge and is not evidence of guilt.  The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.

The government is represented by Assistant U.S. Attorney Michael D. Love.

The Justice Department today filed a denaturalization lawsuit against Nedjo Milosevic, a native of the former Yugoslavia, who, according to the Department’s complaint, was a member of one of the military units responsible for the Srebrenica massacre—the largest mass atrocity in Europe since the Holocaust. The complaint alleges that Milosevic concealed his military service in order to enter the United States as a refugee, and continued to conceal it throughout his naturalization proceedings. The civil complaint was filed in federal court in the Northern District of Illinois.

“The naturalization process is a shining example of the United States’ generosity to the rest of the world, but it is not available to war criminals,” said Principal Deputy Associate Attorney General Jesse Panuccio. “The United States will use every available law enforcement tool to combat human rights abuses like these, including the civil denaturalization process.”

“Nedjo Milosevic tried to cheat our nation’s immigration system by lying about his military role during the Bosnian War,” said U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Executive Associate Director Derek Benner. “This denaturalization filing demonstrates the U.S. government’s enduring commitment to identify and bring to justice those who are suspected to have taken part in human rights violations in any part of the world. The United States will not serve as a safe haven for those who would commit such atrocities.”

According to the complaint, Milosevic, 53, a resident of Harwood Heights, Illinois, was a member of the Military Police Company of the Zvornik Brigade of the Army of the Serb Republic—the military arm of an entity within Bosnia controlled by ethnic Serbs. The Zvornik Brigade, including the Military Police Company, were active during the Srebrenica massacre during which, over the course of several days in July 1995, approximately 8,000 Bosnian Muslim men and boys were systematically killed and more than 30,000 women, children, and elderly were forcibly separated and expelled from the region. The complaint alleges that Milosevic was deployed in the field during the Srebrenica massacre.

Before his military service had come to light, Milosevic requested and received refugee status in the United States. The complaint alleges that Milosevic concealed and affirmatively misrepresented his military service in order to obtain immigration benefits, including naturalization. The complaint also alleges that Milosevic falsely stated that he was living in Serbia, rather than Bosnia, in order to qualify for refugee status.

“The United States is committed to combating human rights abuses,” said U.S. Attorney John R. Lausch, Jr. of the Northern District of Illinois. “We will not allow our country to be a safe haven for anyone who has participated in or helped perpetrate such atrocities in any capacity. Regardless of how long ago, or how far away, it will never be tolerated.”

This civil denaturalization case follows the criminal conviction of a member of the Army of the Serb Republic for making materially false statements on his application for refugee status, which also involved concealment of service in a military unit connected to the Srebrenica massacre, as well as civil denaturalization actions against alleged members of the Army of Bosnia and Herzegovina, convicted in Bosnia of murdering civilians and prisoners of war during the 1990s Balkans conflict, and an alleged member of the Croatian Defense Council, who participated in extrajudicial killings during the same conflict.

The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Chicago and supported by the ICE Human Rights Violator and War Crimes Center and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS), with consultation and support from ICE’s Office of the Principal Legal Advisor (OPLA) Human Rights Law Section and Chicago Office of Chief Counsel, and the Justice Department’s Human Rights and Special Prosecutions Section. The case is being prosecuted by Counsel for National Security Aaron Petty of OIL-DCS’s National Security and Affirmative Litigation Unit with assistance from the U.S. Attorney’s Office for the Northern District of Illinois.

The claims made in the complaint are allegations only, and there have been no determinations of liability.

Members of the public who have information about foreign nationals or naturalized U.S. citizens suspected of engaging in human rights abuses or war crimes are encouraged to contact U.S. law enforcement through the DHS tip line at 1-866-DHS-2-ICE or to complete its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp, or through the Justice Department’s Human Rights and Special Prosecutions Section at [email protected] or 1-800-813-5863. Callers may remain anonymous.

CHICAGO — A federal grand jury in Chicago has indicted a businessman on tax evasion charges for allegedly scheming to evade personal income taxes for three years.

As the owner of the security firm World Security Bureau, ABRAHAM KISWANI, also known as “Ibriham Kiswani,” willfully failed to pay the full amount of taxes on his personal income for the calendar years 2010, 2012, and 2013, according to an indictment returned in U.S. District Court in Chicago.  Kiswani concealed some of his income for those years by arranging for WSB to pay certain personal items, including those held or purchased in the name of family members, and disguising them as business expenses.  The expenditures included mortgage payments, homeowner’s association dues, property taxes, sewer and water fees on a personal residence, slip fees and insurance for a boat, slip fees for jet skis, and gold coins, the indictment states.  Kiswani covered up some of his 2013 income by arranging for WSB to pay some of his wedding expenses and then entering those payments in WSB’s records as business expenses, the indictment states.

The indictment charges Kiswani, 49, of Burbank, with three counts of tax evasion and one count of willfully filing a false corporate tax return.  Kiswani pleaded not guilty at his arraignment Tuesday before U.S. District Judge Manish S. Shah in Chicago.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  Substantial assistance was provided by the U.S. Department of Housing and Urban Development, and the Chicago Housing Authority Office of the Inspector General.  The government is represented by Assistant U.S. Attorney Sheri H. Mecklenburg.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each tax evasion count carries a maximum sentence of five years in prison, while filing a false return is punishable by up to three years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — Seven Chicago-area residents are among nine individuals arrested in the United States and Nigeria as part of an international investigation into online “romance scams” and “mystery shopper” schemes.

During the Chicago-based investigation, dubbed “Operation Gold Phish,” law enforcement identified a variety of cyber-enabled fraud schemes allegedly carried out by conspirators in the U.S. and Nigeria.  One of the alleged schemes involved “romance scams,” in which a conspirator builds trust with a victim through a purported online romance before convincing the victim to send money to a predetermined recipient.  The conspirators initially contacted victims online via applications and websites, including Match.com, Facebook, and Instagram, the complaint states.  Another alleged cyber-enabled fraud involved a “mystery shopper” scheme, in which conspirators fraudulently offered victims opportunities to work as a mystery shopper and receive commissions for evaluating retailers.  The victim received a check through the U.S. mail with instructions to deposit it in a personal bank account, withdraw the money in cash, and wire it to a third party.  The check turned out to be fake, and the victims were defrauded of the wired money, the charges allege.

A criminal complaint filed Dec. 4, 2018, in U.S. District Court in Chicago charged nine defendants with conspiracy to commit wire fraud.  Arrests were recently carried out in Illinois, Texas, and Nigeria, and all of the defendants are now in law enforcement custody.  The Nigerian Economic and Financial Crimes Commission is conducting a related investigation of other individuals in Nigeria.

The U.S. charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.  Valuable assistance was provided by the Nigerian Economic and Financial Crimes Commission.  Assistant U.S. Attorneys Peter S. Salib and Charles W. Mulaney represent the government.

Arrested on the U.S. charges in Illinois were DANIEL SAMUEL ETA, also known as “Captain” and “Etaoko,” 35, of Skokie; BABATUNDE LADEHINDE LABIYI, also known as “Junior,” 20, of Chicago; BARNABAS OGHENERUKEVWE EDJIEH, 29, of Chicago; SULTAN OMOGBADEBO ANIFOWOSHE, also known as “Ayinde,” 26, of Chicago; BABATUNDE IBRAHEEM AKARIGIDI, also known as “AK,” 39, of Chicago; MIRACLE AYOKUNLE OKUNOLA, 21, of Chicago; and OLUROTIMI AKITUNDE IDOWU, also known as “Idol,” 55, of Chicago.  Arrested in Texas was ADEWALE ANTHONY ADEWUMI, 27, of Richardson, Texas.  Arrested in Nigeria was OLANIYI ADELEYE OGUNGBAIYE, also known as “DonChiChi,” 26, of Lagos, Nigeria.

In addition to the romance and mystery shopper schemes, the complaint accuses the conspirators of engaging in various other cyber-enabled scams, including investment and employment frauds.  The conspirators also defrauded victims by targeting corporate email accounts, the complaint states.  In the email scam, known as a business email compromise, the conspirators fraudulently obtained usernames and passwords or sent “spoofing” email messages that claimed to be from a company employee, instructing the victim to change the wire instructions for bank payments.  Per the instructions given in the fraudulent emails, the victims unknowingly wired funds to bank accounts controlled by the conspirators that had been opened in fictitious names utilizing fake passports, the complaint states.

The charge in the complaint carries a maximum sentence of 20 years in prison.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines. 

The public is reminded that charges contain only accusations and are not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

ROCKFORD — A Rockford man was indicted today by a federal grand jury on charges of tax fraud and interfering with internal revenue laws. 

MICHAEL MENDOZA, 31, was charged with sixteen counts of making false claims on Internal Revenue Service forms and one count of attempting to interfere with the administration of internal revenue laws.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorney Michael D. Love.

As alleged in the indictment, Mendoza made false representations regarding wages, income tax amounts and withholding amounts, and claimed refunds he was not entitled to for the tax years 2014 through 2016, totaling $356,844.  The indictment further alleges that Mendoza electronically filed federal income tax returns for himself and in the names of other persons, causing refunds to be deposited into bank accounts he owned or controlled.  It is alleged that after the IRS began an examination of federal income tax returns filed by Mendoza from Sept. 23, 2015, through Dec. 5, 2016, Mendoza obstructed the examination when he submitted fictitious documents and made false statements to the IRS concerning his 2014 employment.

Each count of making a false claim to the IRS carries a maximum potential penalty of up to five years in prison, a fine of up to $250,000, and full restitution.  Attempting to interfere with the administration of internal revenue laws carries a fine of up to $5,000 or up to three years in prison, or both.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.   Mendoza will be arraigned on a date yet to be determined in U.S. District Court in Rockford.

The public is reminded that an indictment contains only charges and is not evidence of guilt.  The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

CHICAGO — A convicted felon from Chicago has been sentenced to six and a half years in federal prison for illegally selling more than a dozen handguns and rifles.

JYMIL CAMPBELL, 31, sold ten handguns, three rifles, and four large-capacity magazines during a nine-month period that ended with his arrest in the summer of 2016.  The sales netted Campbell a total of $8,700 in cash.  Unbeknownst to Campbell, the two buyers were confidential informants working on behalf of law enforcement.  They provided the guns to law enforcement after each sale.

Campbell pleaded guilty earlier this year to one count of willfully dealing firearms without a license and one count of illegal possession of a firearm by a convicted felon.  U.S. District Judge Robert W. Gettleman imposed the 78-month sentence on Dec. 12, 2018, in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.

“No illegal sales of any firearms – especially in this time and place – should be accepted, let alone 13,” Assistant U.S. Attorney Devlin N. Su argued in the government’s sentencing memorandum.  “Chicagoans are extremely fortunate that the buyers of the weapons turned out to be working for law enforcement, because any willingness to inject guns onto the streets fuels the violence.”

Campbell acknowledged in a plea agreement that he could not legally possess or deal firearms because he had previously been convicted of two felonies – home invasion and armed robbery – and he lacked a federal firearms license. 

Most of the gun sales occurred in Campbell’s residence in the North Lawndale neighborhood of Chicago.  According to the plea agreement, one of the buyers put Campbell on notice that the firearms would be used in illegal gun violence.  Campbell nonetheless made the sale.  Campbell also admitted telling the buyer that although Campbell had personally fired one of the rifles, the firearm was essentially “brand new” and had not yet been “shot shot, like in a war.”

CHICAGO — A father and son are among 18 individuals facing criminal charges as part of a federal investigation into cocaine trafficking in the Chicago area.

During the multi-year investigation, dubbed “Operation Flawed Deal,” law enforcement seized multiple bank accounts, more than a kilogram of cocaine, a Mercedes G63 sport-utility vehicle, and two handguns, including one with an extended magazine.  The defendants allegedly distributed cocaine to hundreds of customers in the Chicago area, with drivers dispatched to make door-to-door deliveries.

The investigation was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies, whose principal mission is to identify, disrupt and dismantle the most serious drug trafficking organizations.

Two indictments unsealed this week in U.S. District Court in Chicago charge 18 defendants with federal drug offenses.  Many of the defendants were arrested Thursday, and they have begun making initial appearances in federal court in Chicago.

The indictments were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.  Valuable assistance was provided by the Chicago Police Department, Evanston Police Department, Skokie Police Department, Lincolnwood Police Department, Palatine Police Department and Des Plaines Police Department.  Assistant U.S. Attorneys Rajnath Laud and Charles W. Mulaney represent the government.

Fourteen defendants are charged in U.S.A. v. Usmani, et al (18 CR 835), including ANEES USMANI, also known as “Ace,” 41, of Chicago, and his brother, NAFEES USMANI, 39, of Lincolnwood.  The Usmani brothers allegedly conspired with JUAN BAUTISTA DOMINGUEZ, 41, of Chicago, and several others to distribute at least 500 grams of cocaine in the Chicago area from the fall of 2017 to the spring of 2018.  Also charged in the drug conspiracy are ALFONSO TROTTER, also known as “Fonz” and “Fonzie,” 48, of Chicago; RONALD ALLEN, 47, of Chicago; MUHAMMAD SABIH, also known as “Muhammad Iqbal” and “Sabih Nawab,” 30, of Chicago; MUHAMMAD BILAL KHAN, 24, of Chicago; AHMED FATAH KHAN MALIK, 24, of Skokie; ODEH ALSHOBAKI, 22, of Worth; AHMED HUSSEIN YOUSEF ALSAWALHI, 21, of Chicago; WESAM ABDEL FATTAH, 32, of Chicago; and LISA USMANI, 41, of Lincolnwood.  Charged with cocaine distribution are KENNETH SLAUGHTER, 34, of Park Forest; and NEAL BOWENS, 47, of Gary, Ind.  The indictment seeks forfeiture from ANEES USMANI of the Mercedes SUV and $247,700 in cash.

Dominguez and four other defendants are charged in U.S.A. v. Cayuela, et al (18 CR 836), including TONY F. CAYUELA, 64, of Chicago, and his son, TONY J. CAYUELA, also known as “Tone Kapone,” 39, of Chicago.  The Cayuelas allegedly conspired with WALBERTO OLIVO, 46, of Chicago, to distribute at least 500 grams of cocaine in the Chicago area in the spring and summer of 2018.  Dominguez and JESUS HERNANDEZ, 41, of Chicago, are charged in the indictment with possession of cocaine with intent to distribute.  The indictment seeks forfeiture from Tony J. Cayuela of $108,000 in cash, two properties in the Brighton Park neighborhood of Chicago, and a property in the city’s Chicago Lawn neighborhood.

The charges in the indictments carry maximum penalties of 20 to 40 years in federal prison.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines. 

The public is reminded that charges contains only accusations and are not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

CHICAGO — An Oak Park man has been sentenced to 21 years in federal prison for sex trafficking several children in the Chicago area.

ALLEN YOUNG trafficked and facilitated the prostitution of four young girls in the Chicago area, and he attempted to traffic a fifth.  Young took photographs of the victims and posted them in online advertisements offering commercial sex.  He then drove the minors to meet with individuals who responded to the ads.  After the encounters, Young took some of the money paid to his victims and required some of them to have sex with him.

A jury earlier this year convicted Young, 53, on five sex trafficking counts and one attempted sex trafficking count.  U.S. District Judge Edmond E. Chang on Monday imposed the 21-year prison sentence and ordered Young to pay $37,750 in restitution to the victims.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The case was investigated by the FBI Chicago Child Exploitation Task Force, with special assistance from the Chicago Police Department.  The government was represented by Assistant U.S. Attorneys Andrianna Kastanek and Christine O’Neill.

Evidence in the case revealed that Young trafficked the victims at various times in 2014, 2015 and 2016.  Some of the girls were as young as 15 years old when Young began facilitating the prostitution.  Several of the victims testified at trial about their ordeals.

If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678, or log on to http://www.missingkids.com.  The service is available 24 hours a day, seven days a week.

ROCKFORD — LEILANI HILLIS, 60, of Rockford, the former director of operations of a Rockford non-profit organization, was charged today in federal court with one count of mail fraud and one count of tax fraud. 

Hillis was an employee of the non-profit organization since 2001.  During her employment, Hillis handled the organization’s payroll, human resource matters, accounting, and oversaw the annual audit.  As of 2009, Hillis had signatory authority on the organization’s bank account and access to the organization’s PayPal account. 

According to a criminal information, the organization issued employees a credit card in the employee’s name.  From 2009 through April 2018, Hillis schemed to enrich herself by using her employee-issued credit card to make more than $600,000 in unauthorized purchases for her personal benefit.  Hillis concealed her crime by using the organization’s accounting codes to make it appear the purchases were for the organization’s benefit, and she forged the initials of the organization’s president on the expense reports.  Hillis issued and signed checks from the organization’s account to the bank, knowing the payment included money to pay for the unauthorized purchases.  Hillis also did not report as income the money from the organization that she used to pay the organization’s credit card for her unauthorized personal purchases.

Each count of mail fraud carries a maximum potential penalty of up to 20 years in prison, and tax fraud carries a maximum potential penalty of up to three years in prison.  Each charge also carries a fine of up to $250,000, or twice the gross gain or gross loss resulting from that offense, whichever is greater, plus full restitution and a period of supervised release following imprisonment of up to five years.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines. 

Hillis is scheduled to appear for arraignment before U.S. Magistrate Judge Iain D. Johnston on Dec. 19, 2018, at 9:30 a.m.

The public is reminded that an information contains only charges and is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of Federal Bureau of Investigation; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.

The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.

CHICAGO — The former Chief Financial Officer of a north suburban automobile parts company has been indicted on federal fraud and money laundering charges for allegedly embezzling $700,000 in company funds.

While serving as CFO of the Libertyville-based company, MICHAEL PUGLISI fraudulently wrote corporate checks to three shell companies that he created, according to an indictment returned Tuesday in U.S. District in Chicago.  Puglisi fraudulently set up the shell companies with names that closely resembled or were identical to the names of actual vendors of the auto parts company, the indictment states.  Puglisi deposited checks from the auto parts company into bank accounts he opened in the names of the shell companies, and then transferred the money to his personal bank or investment accounts, the indictment states.

The indictment charges Puglisi, 63, of Lisle, with four counts of wire fraud and three counts of money laundering.  Arraignment in U.S. District Court has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The government is represented by Assistant U.S. Attorney Matthew Schneider.

According to the charges, Puglisi’s fraud scheme began in 2013 and continued until earlier this year.  Puglisi allegedly made false entries in the auto parts company’s accounting reports and financial statements in order to conceal his theft.  As a result of his actions, Puglisi caused a loss to the company of at least $700,000, the indictment states.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. 

Each count of wire fraud is punishable by up to 20 years in prison, while each money laundering count carries a maximum sentence of ten years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A federal judge today sentenced the former Chief Executive Officer of a suburban pharmaceutical company to four years in prison for pocketing $2.2 million from investors and spending the money on property in Michigan, golf and yacht club dues, and trading in options on futures contracts.

As the CEO of Neurendo Pharma LLC in Hoffman Estates, ROBERT TOMLINSON misappropriated the money from individual and corporate investors from 2014 to 2017.  Tomlinson fraudulently advised investors that their funds would be used to operate Neurendo and to market an experimental drug, known as GNTI, to treat type II diabetes.  Tomlinson claimed investors would receive a substantial payment once Neurendo’s drug rights were purchased by a major pharmaceutical company.  In reality, Tomlinson used the majority of investor funds to support his family’s lavish lifestyle, which included maintaining a personal property in Bay Harbor, Mich., and annual dues at the Bay Harbor Golf Club and Bay Harbor Yacht Club.

Tomlinson, 69, of Hoffman Estates, pleaded guilty earlier this year to one count of wire fraud.  U.S. District Judge Rebecca R. Pallmeyer imposed the 48-month sentence in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. 

“Simply put, Tomlinson scammed for his own benefit without any regard for his investors, who trusted him with their funds to invest and use those funds to capitalize and fund the company’s operations,” Assistant U.S. Attorney Sunil Harjani argued in the government’s sentencing memorandum.  “This was not a one-time mistake in judgment, but rather a calculated course of conduct with much aforethought.”

Evidence in the case revealed that Tomlinson misappropriated at least $100,000 in investor money to fund his own futures trading account, and $33,000 to make donations to the Washington National Cathedral.  In addition to the Michigan property, Tomlinson used investor funds to make mortgage payments on a property in the Georgetown neighborhood of Washington, D.C.

When pocketing the money, Tomlinson made dozens of cash withdrawals of slightly less than $10,000 each from Neurendo’s bank account.  The structured withdrawals were made in an effort to avoid federal reporting rules, which require financial institutions to notify the U.S. Department of the Treasury about transactions of more than $10,000.

CHICAGO — The former owner of a Chicago medical clinic admitted in federal court today that he sold opioid prescriptions to patients whom he knew lacked a legitimate medical need for the drugs.

MOHAMMED SHARIFF, who owned Midtown Medical Center in Chicago’s Uptown neighborhood, conspired with a physician to sell oxycodone, hydrocodone, and other medications to patients whom they knew lacked a medical reason for taking the drugs, according to a plea agreement filed today in U.S. District Court in Chicago.  At Shariff’s direction, the physician, DR. THEODORE GALVANI, wrote prescriptions for the powerful opioids without conducting an appropriate physical examination or performing any medical tests, the plea agreement states.  Dr. Galvani often met with more than 70 patients per day, sometimes seeing them in groups of two or more at the same time, the plea agreement states.  At Shariff’s direction, a “crew leader” often organized groups of people to see Dr. Galvani and obtain opioid prescriptions from him, the plea agreement states.

Shariff, 68, of Lincolnwood, pleaded guilty to one count of conspiracy to knowingly dispense controlled substances outside the usual course of professional practice and without a legitimate medical purpose.  The charge carries a maximum prison sentence of 20 years and a maximum fine of $1 million.  U.S. District Judge Harry D. Leinenweber set sentencing for March 19, 2019.

Dr. Galvani, of Spring Grove, previously pleaded guilty to drug conspiracy charges.  He is awaiting sentencing.

Shariff’s guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Health and Human Services Office of Inspector General.  The government is represented by Assistant U.S. Attorneys Peter M. Flanagan and Andrew C. Erskine.

According to Shariff’s plea agreement, individuals paid $100 to $200 in cash to Shariff and Galvani in exchange for the improper prescriptions.  For individuals insured by Medicare, Shariff and Dr. Galvani prescribed the opioids and then submitted or caused others to submit false claims to Medicare, seeking reimbursement for purported office visits with those individuals, the plea agreement states.  From February 2012 to March 2013, Shariff and Dr. Galvani received a total of at least $584,188 through the improper prescription scheme, the plea agreement states.  Shariff admitted that he personally kept at least $292,094 as his share of the proceeds.  Shariff further admitted that, during the same period of time, he and Dr. Galvani together were responsible for prescribing more than two kilograms of oxycodone, more than 595,000 hydrocodone pills, and more than 190,000 alprazolam pills (commonly known as Xanax), to individuals whom they knew had no legitimate medical need for those drugs.

In addition to the improper prescriptions, Shariff admitted in his plea agreement that he attempted to carry out a separate fraud scheme involving a home health care company that he owned, Elgin-based Home Health Resource LLC.  In a May 2016 meeting in Chicago, Shariff offered to pay an unidentified physician $500 each time the doctor certified a Medicare beneficiary as eligible for home health care and referred the patient to Shariff’s company, the plea agreement states.  Unbeknownst to Shariff, the doctor was cooperating with law enforcement, and their conversation was surreptitiously recorded.  During the meeting, Shariff claimed that he arranged for his home health company’s employees to conceal the fact that their clients were not truly eligible for home health services.  Shariff told the cooperating physician that he instructed nurses at the company to “tell the patient you are homebound,” and that “when the doctor come, don’t say that you go out and drive and this and that.  Don’t tell anybody you drive, don’t tell anybody you’re taking the bus, even going to the groceries.  If anybody asks, ‘I stay home. I’m homebound.’”

CHICAGO — A federal grand jury in Chicago has indicted a physician on fraud charges for allegedly approving medically unnecessary diagnostic tests that were billed to Medicare.

While working for Chicago-based Grand Medical Clinic Inc., DR. OMAR GARCIA prescribed and authorized ultrasounds, percutaneous allergen tests and nerve transmission tests for numerous Medicare beneficiaries, knowing that the in-home tests were not medically necessary.  In some instances, Dr. Garcia approved the tests after they had already been completed, the indictment states.  Dr. Garcia and others submitted or caused to be submitted fraudulent claims to Medicare for payment of the unnecessary tests, the indictment states.

The indictment was returned Thursday in U.S. District Court in Chicago.  It charges Dr. Garcia, 51, of Ocala, Fla., and formerly of Illinois, with six counts of health care fraud.  Arraignment has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General; and Martin J. Dickman, Inspector General  of the U.S. Railroad Retirement Board.  The U.S. Office of Personnel Management and the U.S. Food and Drug Administration provided valuable assistance.  The government is represented by Assistant U.S. Attorney Stephen Chahn Lee.

The indictment alleges that Dr. Garcia’s fraud scheme began in 2011 and continued until 2015.  Dr. Garcia and others submitted the fraudulent bills from multiple medical entities in an attempt to reduce the volume of billing by any single company and minimize scrutiny from Medicare, the indictment states.  After the entities received payments from Medicare, Dr. Garcia was paid via checks reflecting his percentage of the payments, the indictment alleges.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each count in the indictment is punishable by a maximum sentence of ten years in prison.   If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

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.”

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.

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.

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.

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.

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.

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.

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.

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 — 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 — 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.

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.

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.

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.

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.

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.

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.

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.

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.