Northern District of Illinois

CHICAGO — A joint federal and state investigation has resulted in racketeering and murder charges against five alleged members of a Chicago street gang faction known as the Goonie Boss.  The charges allege that Goonie members and their associates terrorized the Englewood neighborhood on Chicago’s South Side and were responsible for a total of eleven murders.

A federal racketeering indictment returned Thursday in U.S. District Court in Chicago charges four of the alleged Goonie members with participating in a criminal organization that murdered its rivals, intimidated witnesses to crimes, and publicly boasted about their gang activities on social media.  The federal racketeering indictment charges ten murders, six attempted murders, and two assaults.  The four federal defendants are in custody, and their arraignments in federal court have not yet been scheduled. 

A fifth Goonie member was charged in state court with committing the eleventh murder.  He is in custody and will appear in Cook County Criminal Court at a later date.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kimberly M. Foxx, Cook County State’s Attorney; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Eddie T. Johnson, Superintendent of the Chicago Police Department.

Federal RICO Indictment

The federal indictment charges four Goonie members with racketeering conspiracy: ROMEO BLACKMAN, 22; TERRANCE SMITH, 22; JOLICIOUS TURMAN, 27; and NATHANIEL MCELROY, 21; all of Chicago.  The indictment describes Blackman as the leader of the gang who personally oversaw and directed its illegal activities.   

The federal charges allege that the Goonie gang has been involved in a longstanding, violent feud with several rival gang factions in the Englewood neighborhood of Chicago.  During this conflict, Goonie members and their associates allegedly murdered and assaulted rivals, stole firearms to arm themselves, and violently prevented witnesses from cooperating with law enforcement.  Goonie members posted comments, photographs and videos on the Facebook Live application, openly proclaiming their membership in the gang and boasting about its violent acts, the indictment states.

The federal indictment accuses the Goonie gang of committing ten murders in Chicago in furtherance of the gang’s activities:

• Turman allegedly murdered Kenneth Whittaker, 34, on July 1, 2016, near an elementary school in the 7400 block of South Morgan Street.
• Members of Goonie Boss allegedly murdered Gerald Bumper, 19, on June 30, 2016.
• Turman allegedly murdered Ramal Hicks, 34, on June 20, 2016, outside of a store in the 1500 block of West 69th Street.
• Blackman and McElroy allegedly murdered Gerald Sias, 38, on May 26, 2016, inside a barber shop in the 1100 block of West 63rd Street.
• Blackman allegedly murdered Davon Horace, 19, on Jan. 15, 2016, in the 7200 block of South May Street.
• Blackman allegedly murdered Andre Donner, 26, on Dec. 13, 2015, in the 7200 block of South May Street.
• Blackman and Smith allegedly murdered Krystal Jackson, 25, on Nov. 19, 2014, in the 6800 block of South Loomis Boulevard.
• Blackman and Smith allegedly murdered Stanley Bobo, 18, on Oct. 23, 2014, in the 1400 block of West 72nd Street.
• Blackman allegedly murdered Alonzo Williams, 24, on March 21, 2014, in the 1200 block of West 70th Street.
• Blackman allegedly murdered Johnathon Johnson, 21, on Jan. 22, 2014, in the 6900 block of South Racine Avenue.

Racketeering conspiracy generally carries a maximum sentence of 20 years in prison, but a sentence of life in prison or the death penalty is possible for certain underlying racketeering activities, including certain murders charged in the indictment.

Assistant U.S. Attorney Albert Berry III of the Northern District of Illinois, and Cook County Assistant State’s Attorneys Yvette Loizon and Ethan Holland, who serve as Special Assistant U.S. Attorneys, represent the government in the federal case.

State Murder Charge

CHRISTIAN SIVELS, 19, of Chicago, is charged with first-degree murder in the killing of David Easley, 26, on May 21, 2016.  Easley was shot and killed while walking in the 7000 block of South Carpenter Street in the Englewood neighborhood.

Sivels will appear at a later date in Cook County Criminal Court.  The first-degree murder charge is punishable by a sentencing range of 45 years to life in prison.  The People of the State of Illinois are represented by Assistant State’s Attorneys Michael Golden, Ethan Holland, Yvette Loizon and Maureen McCurry.

Other Charges as Part of Investigation

The joint federal and state investigation, which spanned multiple years, also resulted in separate charges against Blackman, McElroy and several other alleged Goonie members or associates for various firearm offenses:   

In May 2017, Blackman and two others – RASHAD ANCHANDO and KEITH GULLENS – were charged in federal court with conspiring to steal firearms from a gun store in Streator, Ill.  The trio allegedly stole a black Jeep Wrangler and used it in a smash-and-grab theft of 18 handguns, a rifle and a shotgun, according to the indictment in that case.  Anchando, of Chicago, and Gullens, of Streator, Ill., pleaded guilty to their roles in the heist and were sentenced to prison terms of five years for Anchando and four years and six months for Gullens.  Blackman has pleaded not guilty in that case and is awaiting trial.

In September 2017, McElroy and four others – CORNELIUS BATTLE, DALRICK DRAIN, REGINALD JOHNSON and LASHON MOORE – were indicted on federal firearms violations for allegedly conspiring to “straw purchase” handguns in Michigan and re-sell them in Chicago.  Johnson, of Kalamazoo, Mich., pleaded guilty to dealing firearms without a license.  He is awaiting sentencing.  The four others have pleaded not guilty to the charges in that case and are awaiting trial.

In April 2018, convicted felon and Goonie member JAVONTE N. STOKES, of Chicago, pleaded guilty to illegal possession of a firearm.  Stokes admitted possessing a loaded handgun in Calumet City, Ill., on March 17, 2017.  Stokes was sentenced to six months in federal prison.

In March 2017, convicted felon and Goonie member QUINCY FERGUSON, of Waukegan, Ill., was charged in federal court with illegal possession of two rifles and two handguns in Waukegan.  Ferguson pleaded not guilty and is awaiting trial.

In August 2017, BRENT TURPIN, of Chicago, was charged in federal court with supplying ammunition and gun accessories to a suspected gang member who was a convicted felon.  Turpin pleaded not guilty and is awaiting trial.

Four alleged Goonie members and associates are charged in state court with murder related to acts of violence alleged in the federal RICO indictment: TREVANTE REED, 18; LAMAR ISAAC, 35; KWANTE HUGHES, 21; and DEMARCO BENNETT, 22; all of Chicago.  All defendants charged in state court are in law enforcement custody.

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

ROCKFORD — A Creston man was indicted Thursday by a federal grand jury in Rockford on charges of child pornography. 

ERIC CANCHOLA, 25, was charged with four counts of transporting child pornography via the internet between March and April 2018, and one count of possessing two iPods, a desktop computer, and two portable hard drives in May 2018 that contained an image of child pornography involving a prepubescent minor and a minor who had not attained 12 years of age. 

Each count of transporting child pornography carries a mandatory minimum sentence of five years and a maximum of 20 years in prison, while possessing child pornography carries a maximum of up to 20 years in prison.  Each count carries a $250,000 maximum fine.  If Canchola is convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

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

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

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

CHICAGO — A federal indictment accuses a north suburban man of threatening to publish sexually explicit photos of an underage girl unless she created child pornography for him.

DAVID J. COTTRELL, 28, of Niles, is charged with two counts of transportation of child pornography, one count of extortion, one count of inducement of a minor to engage in illegal sexual activity, one count of attempting to produce child pornography, one count of production of child pornography, and one count of possession of child pornography. 

Cottrell appeared Tuesday in federal court in Chicago before U.S. Magistrate Judge Michael T. Mason and was ordered detained in federal custody.  A status hearing was set for Nov. 6, 2018, at 9:00 a.m., before U.S. District Judge Robert W. Gettleman.  The indictment was returned Oct. 17, 2018, and Cottrell has pleaded not guilty to the charges.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  The government is represented by Assistant U.S. Attorney Charles W. Mulaney.

According to the indictment and the government’s memorandum in support of detention, Cottrell in 2014 induced the underage victim into sending him sexually explicit photos through the internet.  After collecting semi-nude photos of the victim, Cottrell informed her that he knew her real name, the name of her school, and her parents’ jobs, and he threatened to post the images online and send them to her family unless the girl sent him additional, more explicit images, the government’s memorandum states.  The victim complied with Cottrell’s demands by creating and sending additional photos and videos to him, the memorandum states. 

Cottrell contacted the victim on a near-daily basis until her parents discovered the messages in 2017 and contacted law enforcement, according to the memorandum.  While communicating with the victim, Cottrell used the names “sevendollarcab” and “b88785” on the Kik and Snapchat online applications, and introduced himself as “Dave,” the memorandum states.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Cottrell faces a mandatory minimum sentence of 15 years in prison and a maximum term of life in prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678, or file a report on its website, www.cybertipline.com.

ROCKFORD — A Rockford man was sentenced today by U.S. District Judge Philip G. Reinhard to a total of 150 months in federal prison for the robbery of the U.S. Cellular store, 6430 E. State St., in Rockford, on June 1, 2016, and using a firearm during a violent crime. 

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

The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The government is represented by Assistant U.S. Attorney Margaret J. Schneider.

Also charged is RICKY WOODS, 22, of Rockford, who on Sept. 27, 2018, pleaded guilty to the robbery and the gun charge.

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

Sentencing for Woods is set for Dec. 12, 2018 at 9:30 a.m. He faces a maximum sentence of 20 years’ imprisonment for the robbery, and a mandatory minimum sentence of seven years and a maximum sentence of life imprisonment for the firearms offense.  The sentence imposed for the firearms offense is required to be consecutive to any other sentence imposed.  Each charge against Woods also carries a potential fine of up to $250,000.

CHICAGO — A Chicago man has been indicted on federal sex trafficking charges for allegedly recruiting several children into prostitution.

LENNIE PERRY, 44, is charged with sex trafficking eight minors under the age of 18, according to an indictment returned Wednesday in U.S. District Court in Chicago.  One of his victims was under 14 years old when Perry enticed the victim to engage in a commercial sex act, the indictment states.  Perry trafficked some of his victims from 2012 to 2014, and other victims in 2016 and 2017, according to the charges.

Arraignment on eight counts of sex trafficking is scheduled for Nov. 7, 2018, at 11:00 a.m., before U.S. Magistrate Judge Mary M. Rowland.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The case was investigated by the FBI Chicago Child Exploitation Task Force.  Valuable assistance was provided by the Chicago Police Department and the U.S. Department of Homeland Security - Homeland Security Investigations.

The government is represented by Assistant U.S. Attorneys Matthew Kutcher, Charles Mulaney and Michelle Petersen.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Perry faces a statutory minimum sentence of 15 years in prison and a maximum of life in prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678.  The hotline is available 24 hours a day, seven days a week.

CHICAGO — A Chicago man has been arrested on a federal complaint charging him with conspiring to provide material support to the Islamic State of Iraq in al-Sham (ISIS).

ASHRAF AL SAFOO, also known as “Abu Al’-Abbas Al-Iraqi,” “Abu Shanab,” and “Abbusi,” 34, was arrested Wednesday in Chicago.  A criminal complaint charges him with one count of conspiracy to provide material support and resources to a foreign terrorist organization.  Al Safoo made an initial court appearance today before U.S. Magistrate Judge M. David Weisman and was ordered detained in federal custody.  A detention hearing was scheduled for Oct. 25, 2018, at 1:30 p.m.

Al Safoo is a naturalized United States citizen of Iraqi descent who resides in Chicago.  The complaint alleges that Al Safoo, at the direction of and in coordination with ISIS, aided ISIS in using social media to spread propaganda supporting violent jihad, to recruit operatives, and to encourage others to carry out terrorist attacks.

The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; John C. Demers, Assistant Attorney General for National Security at the U.S. Department of Justice; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The case was investigated by the Chicago Joint Terrorism Task Force, which is comprised of numerous federal, state and local law enforcement agencies.

 “This charge demonstrates that in order to keep our communities safe, law enforcement will vigorously pursue those who provide material support – in whatever form – to designated foreign terrorist organizations,” said U.S. Attorney Lausch.  “Today’s arrest is a testament to the commitment and dedication of our prosecutors and law enforcement partners who stand watch over our country.”

“At a time when the threat from internet-inspired terrorism remains high, we must be vigilant against those who disseminate on-line propaganda promoting violence in support of ISIS, like Ashraf al Safoo is alleged to have conspired to have done,” said Assistant Attorney General Demers.  “His arrest shows that the Department of Justice remains alert to this threat and continues to seek to hold people accountable for conspiring to support foreign terrorist organizations.” 

“The safety of the American public is the FBI’s highest priority,” said FBI SAC Sallet.  “Home-grown terrorists and ‘lone-actor’ operators continue to represent a threat to the homeland.  The arrest today should send a clear message to these individuals, no matter who you are or where you may be, we will find you and arrest you.  This case would not be possible without the combined efforts of the Chicago Joint Terrorism Task Force, and in particular the work of our partners at the Chicago Police Department and the Department of Homeland Security.”

According to the complaint, Al Safoo is a member of Khattab Media Foundation, an internet-based organization that has sworn an oath of allegiance to ISIS and created and disseminated ISIS propaganda online.  Al Safoo and other members of Khattab have created and posted pro-ISIS videos, articles, essays and infographics across multiple social media platforms, at the direction and in coordination with ISIS, the complaint states.  Much of the propaganda created and distributed by Khattab promotes violent jihad on behalf of ISIS and ISIS’s media office, the complaint states.

On Nov. 4, 2017, according to the complaint, Al Safoo reposted in a social media application for Khattab members an encouragement for people to help ISIS in any way possible, including by offering money or themselves.  Al Safoo wrote, “Thus, it was incumbent on us to support them verbally and with money and soul and by inciting others to target the tyrants and expose the evil scholars and the Saudi rulers,” the complaint states.  On May 23, 2018, according to the complaint, Al Safoo posted on multiple social media groups directions and encouragement for Khattab’s ISIS propaganda efforts: “Brothers, roll up your sleeves! Cut video publications into small clips, take still shots, and post the hard work of your brothers in the apostate’s pages and sites. Participate in the war, and spread fear.”

The complaint cites several images and videos created by Khattab and disseminated online.  The postings include images of violence during the Christmas season, celebrations of terrorist attacks and mass shootings in the United States, and encouragement for “lone wolf” terrorist attacks in western countries.  Because the material promoted violence, Khattab members frequently had their social media accounts suspended or deleted, the complaint states.  The members sought access to hacked social media accounts and created accounts under fake names and identifiers.  These accounts were then distributed to Khattab members to use in disseminating ISIS propaganda, according to the complaint.

The public is reminded that a complaint is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  The conspiracy charge is punishable by up to 20 years in prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

The government is represented by Assistant U.S. Attorneys Barry Jonas, Vikas Didwania, Melody Wells and Peter S. Salib of the Northern District of Illinois, and Lolita Lukose, Trial Attorney of the National Security Division’s Counterterrorism Section.

CHICAGO — A convicted felon has been sentenced to more than five years in federal prison for illegally possessing a loaded semi-automatic handgun in a west suburb of Chicago.

MARK HILL possessed the gun on June 17, 2016, in Broadview.  Hill had previously been convicted of a felony and was not legally allowed to possess a firearm.  After his arrest, Hill attempted to obstruct justice by urging his girlfriend to lie on his behalf.

Hill, 41, of Broadview and Chicago, pleaded guilty earlier this year to one count of illegal possession of a firearm by a felon.  U.S. District Judge Gary Feinerman on Tuesday sentenced Hill to five years and ten months in federal prison.

The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.  Valuable assistance was provided by the Broadview Police Department, Bellwood Police Department, and Hillside Police Department.

“Possessing a firearm as a convicted felon is a serious offense and creates wholly unnecessary risks to public safety,” Assistant U.S. Attorney Erin E. Kelly argued in the government’s sentencing memorandum.

Evidence in the case revealed that Hill stored the loaded handgun and additional ammunition under a mattress in the bedroom of his girlfriend’s apartment.  After his arrest, Hill telephoned his girlfriend from jail on numerous occasions.  Hill urged his girlfriend to lie under oath concerning the location of evidence that police found in the apartment.  Hill also told his girlfriend that he would coach her testimony, requesting that she “come see me so you tell ‘em everything I tell you to say.”

CHICAGO — A LaSalle County physician was sentenced today to 12 years in federal prison for illegally dispensing prescription medications, including opioids, in exchange for cash or sex.

CONSTANTINO PERALES, M.D., illegally prescribed Oxycodone and Xanax to a patient, ANDREW STRANDELL, knowing that Strandell would sell the pills on the black market and then kick back some of the profits to Dr. Perales.  Dr. Perales also admitted in a plea agreement that from 2011 to 2013 he illegally dispensed opioids and other controlled substances to three opioid-dependent patients in exchange for sex.  Dr. Perales required the individuals to have sex with him in order to continue receiving the medications, the plea agreement states.  Dr. Perales knew the patients were addicted to the pills, yet he dispensed them without performing a medical examination or ordering any diagnostic tests to manage their conditions, the plea agreement states.

Perales, 67, of Peru, Ill., pleaded guilty last year to conspiracy to possess a controlled substance with the intent to distribute.  U.S. District Judge Amy J. St. Eve imposed the 12-year sentence in federal court in Chicago.

The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration.  Substantial assistance was provided by the Peru, Ill., Police Department, and the LaSalle County State’s Attorney’s Office.

“Few cases provide such a troubling example of a brazen and pathological abuse of power, influence, and trust in order to manipulate the pain and suffering of others to one’s personal advantage,” Assistant U.S. Attorneys Katherine A. Sawyer and Kathryn E. Malizia argued in the government’s sentencing memorandum.  “The evidence in this case demonstrates that Constantino Perales is a predator who abused his power and cloaked himself in the authority conferred by his white coat to manipulate vulnerable patients for his own gratification and profit.”

“This case exposes a doctor behaving in direct contradiction to his Hippocratic Oath, placing his greed and personal desires above the well-being of his patients," said FBI SAC Sallet.  "This sentence sends a clear message that such behavior is unacceptable and will be prosecuted to the fullest extent of the law.  I commend the efforts of our state, local, and federal partners in bringing both of these individuals to justice.”

“This announcement sends a clear message that medical professionals who exploit their power, prey on the vulnerable, and violate controlled substance laws will be investigated and held accountable to the fullest extent,” said DEA SAC McKnight.  “It also highlights the significance of federal law enforcement and prosecutors working together.”

Dr. Perales’ Illinois medical license was suspended and he surrendered his DEA Registration Certificate after law enforcement executed a search warrant at his office in Peru, Ill., in August 2013.

Strandell, of Sandwich, Ill., pleaded guilty to the same conspiracy charge as Perales.  Judge St. Eve in August sentenced Strandell to 30 months in prison.

ROCKFORD — A Loves Park man was sentenced today by U.S. District Judge Philip G. Reinhard to 22 years in federal prison for producing child pornography.

GRANT WOJAHN, 37, admitted in a plea agreement that he created a Facebook account posing as a female teenager.  On March 20, 2015, while using that profile, Wohjan contacted a minor female victim using the Facebook private messaging feature and persuaded her to engage in sexually explicit conduct, take photos of that conduct and then transmit the images to Wojahn using the private messaging service on Facebook.  According to the plea agreement, the female victim was 13 years of age at the time the pictures were produced and transmitted.  Wojahn also admitted that between May 21, 2014, and April 5, 2015, he similarly persuaded six other minor female victims, who were between the ages of 10 and 12, to do the same.

Wojahn also admitted that on March 25, 2015, he used the Facebook private messaging service to chat and send another user a number of images of child pornography depicting one of the minor victims.  Further, Wojahn admitted that on Sept. 1, 2015, he possessed numerous images of child pornography on a USB storage device, a cellphone, and other devices, and in total possessed at least 43 videos of child pornography and 71 images of child pornography.

Wojahn pleaded guilty to the child pornography charge on June 11, 2018. The 22-year sentence will be followed by a lifetime term of supervised release.

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

The government was represented by Assistant U.S. Attorney Margaret J. Schneider.

CHICAGO — A Chicago woman has been indicted on federal firearm charges for conspiring to “straw purchase” handguns in Indiana on behalf of a convicted felon in Chicago.

MONICA NAVEJAR, 31, purchased the guns from licensed dealers in Indiana and falsely certified on federal forms that she was the actual buyer, according to an indictment returned in U.S. District Court in Chicago.  In reality, Navejar purchased the guns on behalf of a convicted felon in Chicago whom Navejar knew was prohibited from legally purchasing firearms on his own, the indictment states.  The felon directed Navejar to buy certain firearms that he wanted and then provided her with the purchase money, according to the charges.

The two-count indictment was returned Oct. 4, 2018, in federal court in Chicago.  It charges Navejar with one count of conspiracy to knowingly make false statements and knowingly dispose of a firearm to a convicted felon, and one count of knowingly disposing of a firearm to a convicted felon.  Arraignment is set for Oct. 16, 2018, at 11:00 a.m., before U.S. Magistrate Judge Maria Valdez.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Eddie Johnson, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorney Katherine Neff Welsh.

“Straw purchasers too often play a grave role in enabling the unlawful possession of guns and the senseless shootings that can follow,” said U.S. Attorney Lausch. “The U.S. Attorney’s Office and our law enforcement partners are committed to stopping the flow of guns to convicted felons or other prohibited individuals who cannot legally possess them.”

“Preventing the illegal selling and purchasing of firearms will always be a priority for ATF in conjunction with our local and federal partners,” said ATF SAC Nunez.  “Straw purchasers must be held accountable for their role in bringing so many illegal guns into Chicago.”

“Anyone who knowingly puts a gun into the hands of a felon shows blatant disregard for the safety and security of our communities,” said FBI SAC Sallet.  “We will continue to work with our law enforcement partners to hold accountable anyone who engages in these illicit transactions, which directly contribute  to the gun violence plaguing our city.”

“It is important that we do whatever we can as a society to make sure that we prevent additional families from losing a loved one because a criminal was able to get their hands on a gun through illegal means - including straw purchases,” said CPD Supt. Johnson.

The indictment describes three handgun purchases in 2015 and 2017 in Hammond, Ind., and Gary, Ind.  On one occasion, the felon accompanied Navejar to Indiana when one of the purchases was made, the indictment states.  The charges also allege that Navejar provided the felon with other guns that Navejar had previously purchased for her own use.

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

The conspiracy charge is punishable by a maximum sentence of five years in prison, while the charge of knowingly disposing a firearm to a felon is punishable by up to ten years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A suburban Chicago man has admitted in federal court that he tried to illegally export nearly two dozen guns and ammunition to Haiti from Illinois.

PATRICK GERMAIN, 45, of Evanston, Ill., pleaded guilty to one count of knowingly and fraudulently attempting to export firearms contrary to the laws and regulations of the United States.  In a written plea agreement, Germain admitted that in 2016 he planned to illegally export 16 handguns, five shotguns, a rifle and ammunition from Evanston to Haiti by way of Miami, Fla.  Germain built a plywood container, filled it with the guns and ammunition, and then hid it inside a cargo van, the plea agreement states.  The van was then delivered to a shipping company in Miami but law enforcement seized it before it could be transported to Haiti.

The guilty plea was entered Tuesday in federal court in Chicago. It carries a maximum sentence of ten years in prison.  U.S. District Judge Joan Humphrey Lefkow set sentencing for Jan. 29, 2019.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; Dan Clutch, Special Agent-in-Charge of the Chicago Field Office of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  Valuable assistance was provided by U.S. Customs and Border Protection and the Illinois State Police.  The government is represented by Assistant U.S. Attorney William Dunne. 

According to the plea agreement, Germain in June 2016 purchased the firearms and ammunition from dealers in Illinois.  Germain also purchased three vehicles, including the cargo van that he would later use to transport the concealed firearms and ammunition.  He then hired an Illinois company to deliver the three vehicles to Miami, where Germain had arranged for a Florida shipping company to transport the vehicles to Haiti.

When asked by the Illinois company why the cargo van appeared to be overweight, Germain represented to the driver that the added weight was due to furniture in the backseat.  Germain also misled the Florida shipping company by not notifying them that the cargo van was filled with guns and ammunition, according to the plea agreement.

CHICAGO — The U.S. Attorney’s Office in Chicago today filed a criminal fraud charge against a north suburban financial advisor for allegedly swindling more than $2.5 million from elderly clients.

LUCITA ZAMORAS owned a number of companies in Niles, including First Fidelity Financial Group LLC, JQH Ventures LLC, and Cornerstone Home Solutions.  Zamoras held herself out as a financial adviser specializing in retirement planning, and targeted elderly individuals, particularly immigrants, according to a criminal information filed in U.S. District Court in Chicago.  Zamoras falsely claimed that client funds would be invested in safe, low risk investments, when, in fact, she spent some or all of the money on personal and business expenses, including gambling costs, payroll expenditures, credit card payments, airline tickets, car payments, and utilities, the information states.

Zamoras attempted to conceal the scheme by using newly raised investment funds to make Ponzi-type payments to earlier investors, the charge alleges.  Zamoras intentionally failed to disclose these payments to both the new and earlier investors, the information states.  From 2009 until August of this year, Zamoras defrauded at least a dozen investors out of approximately $2.5 million, the information states.

The information charges Zamoras, 55, of Chicago, with one count of mail fraud.  Arraignment in federal court in Chicago has not yet been scheduled.

The information was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Jeffrey A. Monhart, Regional Director of the Chicago office of the U.S. Department of Labor, Employee Benefits Security Administration; and Tanya Solov, Director of the Illinois Securities Department of the Illinois Secretary of State’s Office.  Valuable assistance was provided by the Chicago Regional Office of the U.S. Securities and Exchange Commission, which previously filed a civil enforcement action against Zamoras.  The government is represented by Assistant U.S. Attorney Jacqueline Stern.

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

Mail fraud is punishable by up to 20 years in prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — Twelve individuals are facing federal charges as part of an investigation into heroin trafficking on the West Side of Chicago.

As part of the investigation, dubbed “Operation Dirty Ice,” law enforcement intercepted cellphone communications between the defendants, conducted extensive surveillance, and performed court-authorized searches of residences in the Austin neighborhood of Chicago and west suburban Bellwood.  During the probe, authorities seized one and a half kilograms of heroin, a half kilogram of crack cocaine, more than $892,000 in illicit cash proceeds, and a stolen handgun. 

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

A criminal complaint filed in U.S. District Court in Chicago charges eleven defendants with conspiracy to possess a controlled substance with the intent to distribute, and one defendant with possession of a controlled substance with the intent to distribute.  Many of the defendants were arrested Tuesday, and they have made initial appearances in federal court in Chicago.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Eddie Johnson, Superintendent of the Chicago Police Department.  The Illinois State Police provided valuable assistance.  Assistant U.S. Attorneys Kelly Guzman and Rebekah Holman represent the government.

Charged in the drug conspiracy are DIAMOND LAKE, 42, of Bellwood; DARNELL HUDSON, 42, of Chicago; ANTWION WILLIAMS, 43, of Berwyn; DERRON BARTON, 42, of Chicago; STEVEN MOORE, 41, of Chicago; ROMELL RATLIFF, 40, of Chicago; DEANDRE HUGHES, 23, of Chicago; LAWRENCE JONES, 41, of Chicago; CLAYVON VIVETTER, 30, of Chicago; WILLIE BLAKE, 39, of Chicago; and EDDIE YOUNG, 39, of Chicago.  Charged with possession of a controlled substance with the intent to distribute is TYJUAN YATES, 36, of Chicago.

According to the charges, Lake operated a drug trafficking organization that distributed nearly 500 grams of heroin in the Chicago area on a weekly basis.  The organization used Lake’s residence in Bellwood to store bulk quantities of heroin and to prepare the drug for street-level distribution, the complaint states.  Lake, Williams and Hudson parceled the drug in distinctive packaging by wrapping it in tinfoil and stapling it inside mini Ziploc bags, the complaint states.  Williams and Hudson then allegedly worked with Barton to bring the bags to street-level dealers, including Moore, Ratliff, Hughes, Jones, Vivetter, Blake and Young.  After sales on the street, Williams, Hudson and Barton collected cash proceeds and delivered the money to Lake, the charges allege. 

From May to October of this year, Lake’s organization distributed at least 10 kilograms of heroin to customers on the West Side of Chicago, the complaint states.  Many of the sales allegedly occurred in the city’s Austin neighborhood, including in the 100 block of North LaPorte Avenue, the 5000 block of West Maypole Avenue, and the 4800 block of West Quincy Street.

The charge against Yates stems from a June 2018 seizure of heroin in the Garfield Park neighborhood of Chicago, the complaint states.  Law enforcement discovered approximately 109 grams of packaged heroin in Yates’s vehicle in the 4400 block of West Fulton Street, according to the complaint.

The conspiracy charge carries a mandatory minimum sentence of ten years in prison and a maximum penalty of 40 years in prison, while the possession charge against Yates is punishable by up to 20 years.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines. 

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

CHICAGO — A north suburban psychologist has been indicted on federal fraud charges for allegedly submitting false claims to Medicare and private insurers.

PAMELA ANTELL, also known as Pamela Gruenhut, operated a psychology practice in Glenview.  From 2011 to January 2018, Antell submitted fraudulent claims to Medicare and private insurers for mental health services that were not rendered, the indictment states.  In some instances, Antell was out of the state on the dates she claimed to have provided the services, the charges allege.  Antell also used some of her patients’ names and dates of birth without their knowledge to create fictitious claim forms for the purported services, the charges allege.

The indictment charges Antell with five counts of health care fraud and three counts of aggravated identity theft.

Antell, 66, of Deerfield, was arrested this morning.  She pleaded not guilty at an afternoon arraignment and was ordered released on a personal recognizance bond.  A status hearing is set for Oct. 24, 2018, at 10:30 a.m., before U.S. District Judge Jorge L. Alonso.

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

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

Each count of health care fraud is punishable by up to ten years in prison.  Conviction of aggravated identity theft carries a mandatory prison sentence of two years, which must be served consecutively to the sentence for the underlying offense.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

The government is represented by Assistant U.S. Attorney Kelly Greening.

CHICAGO — More than 25 individuals are facing federal or state drug charges for allegedly selling pure fentanyl or fentanyl-laced heroin in Chicago.

Many of the defendants sold narcotics to an undercover law enforcement officer earlier this year, according to the charges.  Several of the sales occurred in daytime hours during the summer months.  The federal charges describe drug sales in the Tri-Taylor, Humboldt Park and West Garfield Park neighborhoods on Chicago’s West Side, as well as deals in the Chatham neighborhood on the city’s South Side.

The investigation was led by the Chicago Police Department, with support from agents from numerous federal agencies assigned to the High Intensity Drug Trafficking Area (HIDTA) Task Force, including the U.S. Drug Enforcement Administration, Federal Bureau of Investigation, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Department of Homeland Security - Homeland Security Investigations, and U.S. Marshals Service.  In addition to the undercover work, law enforcement during the investigation conducted extensive surveillance and seized distribution quantities of fentanyl and fentanyl-laced heroin.

Seven defendants were charged in federal court, while 22 defendants were charged in state court.  Many of the defendants were arrested Thursday.  The federal defendants have begun making initial appearances in U.S. District Court in Chicago, while the state defendants will appear in Cook County Criminal Court. 

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kimberly M. Foxx, Cook County State’s Attorney; Eddie Johnson, Chicago Police Superintendent; Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the DEA; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI.  Substantial assistance was provided by the Illinois State Police.

 “These arrests send a clear message that anyone who sells fentanyl on the streets of Chicago will endure the full weight of law enforcement,” said U.S. Attorney Lausch.  “The U.S. Attorney’s Office will continue to focus its efforts on individuals and groups who distribute fentanyl – a dangerously potent drug – and prosecute those offenders in federal court.”

“We’ve seen the devastation that drugs – especially fentanyl – leave on an individual, their family and our communities,” said State’s Attorney Foxx.  “These charges are a step in the right direction as we send a message that fentanyl has no place on our streets.  My office is committed to holding anyone responsible for this harmful substance accountable and will continue working with our federal and local partners to do so.”

“The sale and use of these substances has affected more than just the individual using them,” said CPD Supt. Johnson.  “It has left multiple scars on some of our communities.  CPD will continue to work with our federal and state partners to do everything we can to make our streets safer and to save lives in the process.”

“These arrests help tackle our city’s most serious drug threat – fentanyl,” said DEA Special Agent-in-Charge McKnight.  “For those who want to put poison on our streets, we are not done with you.”

“The results of these investigations show the powerful impact law enforcement can have when we work as one team to combat the lethal threat fentanyl poses to our communities,” said FBI Special Agent-in-Charge Sallet.

 According to the federal complaints, ANTHONY MCCLENDON, 38, of Chicago, sold more than three grams of pure fentanyl to an undercover officer on May 18, 2018.  The deal allegedly occurred on the street in the 1000 block of South Western Avenue in Chicago.  Special Assistant U.S. Attorney Chester Choi represents the government in McClendon’s case.

ANTRON BINION, 48, of Chicago, sold at least four grams of fentanyl-laced heroin over five separate deals this summer, the complaint states.  The deals allegedly occurred at various locations in Chicago’s West Garfield Park neighborhood, including a transaction on a ramp leading to a pedestrian bridge over the Dwight D. Eisenhower Expressway.  Assistant U.S. Attorney Aaron R. Bond represents the government in Binion’s case.

VANCE ESTES, 34, of Chicago, sold more than a gram of fentanyl-laced heroin and more than a gram of heroin in two separate deals in July, the complaint states.  The deals allegedly occurred as Estes sat in his vehicle in the 9100 block of South Wabash Avenue in Chicago.  ALEJANDRO JUNCO, 27, of Chicago, also sold distribution levels of fentanyl-laced heroin in the same block in July, the complaint states.  Assistant U.S. Attorneys Andrew J. Dixon and John D. Mitchell represent the government in the Junco and Estes cases.

JAMES ALEXANDER, 34, of Chicago, KENYON SAVAGE, 24, of Chicago, and LASHAWN BANKS, 20, of Chicago, each sold distribution levels of fentanyl-laced heroin in Chicago’s Humboldt Park neighborhood this summer, the complaints state.  The government is represented in the Alexander case by Assistant U.S. Attorney Kristen Viglione; in the Savage case by Assistant U.S. Attorney Kalia Coleman; and in the Banks case by Assistant U.S. Attorney Jared Jodrey.

The public is reminded that charges contain only accusations and are not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  The federal drug distribution charge is punishable by a maximum sentence of 20 years in prison.  If convicted of the federal charge, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A Chicago man has been sentenced to 30 years in federal prison for robbing a North Side bank at gunpoint.

JON GILES, 39, robbed a North Community Bank branch in Chicago’s Lincoln Park neighborhood on March 20, 2009.  After casing the building from the outside, Giles entered the bank and pointed a loaded gun at a female employee who was sitting at a desk.  He then forced a teller to fill a Ziploc bag with cash, screaming, “Give me the money or I will shoot her right now!”  The teller complied and filled the bag with approximately $1,153.  Giles then ordered the employee and the teller to lie face down on the floor while he fled the bank.

Giles was arrested in June 2009 on unrelated armed robbery charges and he has remained in custody.  A federal jury earlier this year convicted him on bank robbery and firearm charges.  U.S. District Judge Ronald A. Guzman on Wednesday imposed a 360-month sentence and ordered that Giles receive credit for time already served.

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

“The defendant is a manipulative, violent, career criminal who appears unable to stop harming other members of society by committing violent crimes,” Assistant U.S. Attorneys Christopher V. Parente and Elizabeth Pozolo argued in the government’s sentencing memorandum.

Both the bank employee and the teller testified about their ordeals at trial.  The employee described how terrified she felt when Giles pressed the gun into her side and threatened to kill her.  She recalled thinking that she would never see her children again.

Evidence at trial revealed that authorities matched Giles’s DNA to a glove he wore during the bank robbery.

ROCKFORD — Three Rockford-area men were indicted Tuesday in separate cases by a federal grand jury in Rockford on child pornography charges.

DAVID WITTWER, 48, of South Beloit, was charged with one count of transporting child pornography via the internet in February 2016, and one count of possessing a computer and cell phone in April 2017 containing an image of child pornography involving a prepubescent minor and a minor who had not attained 12 years of age.

DONOVAN HEIDENREICH, 23, of Rockford, was charged with two counts of transporting child pornography via the internet in May and September of 2017, and one count of possessing a computer in November 2017 containing an image of child pornography involving a prepubescent minor and a minor who had not attained 12 years of age.

OSCAR FLORES-VAZQUEZ, 47, of Byron, was charged with one count of transporting child pornography via the internet in June 2018, and one count of possessing a computer in August 2018 containing an image of child pornography involving a prepubescent minor and a minor who had not attained 12 years of age.

John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, announced the Wittwer case with James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Department of Homeland Security – Homeland Security Investigations; and the Heidenreich and Flores-Vazquez cases with Jeffrey S. Sallet, Special Agent-in-Charge of the Federal Bureau of Investigation in Chicago.  The government is represented by Assistant U.S. Attorney Michael D. Love.

The Wittwer investigation was conducted by the U.S. Department of Homeland Security – Homeland Security Investigations, with the assistance of the South Beloit Police Department and the Winnebago County Sheriff’s Office.  The Heidenreich and Flores-Vazquez cases were investigated by the FBI.

Each count of transporting child pornography carries a mandatory minimum sentence of five years and a maximum of 20 years in prison, while possessing child pornography carries a maximum of ten years in prison.  Each count carries a $250,000 maximum fine.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.  

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

CHICAGO — A Chinese national was arrested in Chicago today for allegedly acting within the United States as an illegal agent of the People’s Republic of China.

JI CHAOQUN, 27, a Chinese citizen residing in Chicago, worked at the direction of a high-level intelligence officer in the Jiangsu Province Ministry of State Security, a provincial department of the Ministry of State Security for the People’s Republic of China, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago.  Ji was tasked with providing the intelligence officer with biographical information on eight individuals for possible recruitment by the JSSD, the complaint states.  The individuals included Chinese nationals who were working as engineers and scientists in the United States, some of whom were U.S. defense contractors, according to the complaint.

The complaint charges Ji with one count of knowingly acting in the United States as an agent of a foreign government without prior notification to the Attorney General.  He will make an initial court appearance today at 4:00 p.m. CDT before U.S. Magistrate Judge Michael T. Mason in Courtroom 2266 of the Everett M. Dirksen U.S. Courthouse in Chicago.

The arrest and complaint were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; John C. Demers, Assistant Attorney General for National Security at the U.S. Department of Justice; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The U.S. Army 902nd Military Intelligence Group provided valuable assistance.  The government is represented by Assistant U.S. Attorney Shoba Pillay of the Northern District of Illinois, and Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Control Section.

According to the complaint, Ji was born in China and arrived in the United States in 2013 on an F1 Visa, for the purpose of studying electrical engineering at the Illinois Institute of Technology in Chicago.  In 2016, Ji enlisted in the U.S. Army Reserves as an E4 Specialist under the Military Accessions Vital to the National Interest program, which authorizes the U.S. Armed Forces to recruit certain legal aliens whose skills are considered vital to the national interest.  In his application to participate in the MAVNI program, Ji specifically denied having had contact with a foreign government within the past seven years, the complaint states.  In a subsequent interview with a U.S. Army officer, Ji again failed to disclose his relationship and contacts with the intelligence officer, the charge alleges.

The public is reminded that a complaint is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  The charge in the complaint is punishable by a maximum sentence of ten years in prison.  The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Ji Chaoqun, 27, a Chinese citizen residing in Chicago, was arrested in Chicago today for allegedly acting within the United States as an illegal agent of the People’s Republic of China.

The arrest and complaint were announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney John R. Lausch, Jr. for the Northern District of Illinois, and Special Agent in Charge Jeffrey S. Sallet of the FBI’s Chicago field office.

Ji worked at the direction of a high-level intelligence officer in the Jiangsu Province Ministry of State Security, a provincial department of the Ministry of State Security for the People’s Republic of China, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago.  Ji was tasked with providing the intelligence officer with biographical information on eight individuals for possible recruitment by the JSSD, the complaint states.  The individuals included Chinese nationals who were working as engineers and scientists in the United States, some of whom were U.S. defense contractors, according to the complaint.

The complaint charges Ji with one count of knowingly acting in the United States as an agent of a foreign government without prior notification to the Attorney General.  He will make an initial court appearance today at 5:00 p.m. EDT (4:00 p.m. CDT) before U.S. Magistrate Judge Michael T. Mason in Courtroom 2266 of the Everett M. Dirksen U.S. Courthouse in Chicago.

According to the complaint, Ji was born in China and arrived in the United States in 2013 on an F1 Visa, for the purpose of studying electrical engineering at the Illinois Institute of Technology in Chicago.  In 2016, Ji enlisted in the U.S. Army Reserves as an E4 Specialist under the Military Accessions Vital to the National Interest (MAVNI) program, which authorizes the U.S. Armed Forces to recruit certain legal aliens whose skills are considered vital to the national interest.  In his application to participate in the MAVNI program, Ji specifically denied having had contact with a foreign government within the past seven years, the complaint states.  In a subsequent interview with a U.S. Army officer, Ji again failed to disclose his relationship and contacts with the intelligence officer, the charge alleges.

A criminal complaint is merely an accusation.  The defendant is presumed innocent unless and until proven guilty.  The charge carries a maximum sentence of ten years in prison.   The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

The U.S. Army 902nd Military Intelligence Group provided valuable assistance.  The government’s case is represented by Assistant U.S. Attorney Shoba Pillay of the Northern District of Illinois and Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Control Section.

CHICAGO — A Chicago insurance agent has pleaded guilty to willfully failing to pay federal and state taxes on more than $4.7 million in income earned over a decade.

JOHN OCWIEJA admitted in a plea agreement that he willfully failed to pay income taxes for tax years 2006 to 2016, causing a combined loss to the United States and State of Illinois of more than $1.1 million.  During those years, Ocwieja earned a total income of more than $4.7 million as a licensed insurance agent and financial representative, the plea agreement states.

Ocwieja, 49, of Chicago, pleaded guilty Monday to three counts of willfully failing to file a federal tax return.  U.S. Magistrate Judge M. David Weisman set sentencing for Dec. 18, 2018, at 10:00 a.m.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorneys Andrianna Kastanek and Patrick King.

According to the plea agreement, Ocwieja earned more than $500,000 in three of the eleven years he failed to pay income taxes, and more than $300,000 in four other years.  Ocwieja acknowledged in the plea agreement that he used the funds for personal matters instead of satisfying his tax liabilities.

The conviction carries a maximum total sentence of three years in federal prison.  The Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — The owner of two recycling businesses illegally landfilled potentially hazardous electronic waste as part of a scheme to re-sell the materials and avoid paying income taxes, according to his guilty plea in federal court in Chicago.

BRIAN BRUNDAGE owned Intercon Solutions Inc. and EnviroGreen Processing LLC, which purported to recycle electronic waste on behalf of corporate and governmental clients.  Brundage represented to the clients that the materials would be disassembled and recycled in an environmentally sound manner.  In reality, from 2005 to 2016, Brundage caused thousands of tons of e-waste and other potentially hazardous materials to be landfilled, stockpiled, or re-sold at a profit to companies who shipped the materials overseas, according to a plea agreement filed Tuesday in U.S. District Court in Chicago.  Brundage admitted evading $743,984 in federal taxes by concealing the income he earned from re-selling the e-waste and from paying himself funds that he falsely recorded as Intercon business expenses.  Brundage spent the purported expenses for his own personal benefit, including wages for a nanny and housekeeper, jewelry purchases, and payments to the Horseshoe Casino in Hammond, Ind., the plea agreement states.

Brundage, 46, of Dyer, Ind., pleaded guilty Tuesday to one count of wire fraud, which is punishable by up to 20 years in prison, and one count of tax evasion, which is punishable by up to five years.  U.S. District Judge Joan Humphrey Lefkow set sentencing for Feb. 27, 2019, at 2:00 p.m.

The guilty plea was announced by John C. Kocoras, First Assistant United States Attorney for the Northern District of Illinois; Brad Ostendorf, Assistant Special Agent-in-Charge of the U.S. Environmental Protection Agency’s Criminal Investigation Division in Chicago; Gabriel L. Grchan, Special Agent-in-Charge of the Chicago office of the Internal Revenue Service Criminal Investigation Division; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and Carol Fortine Ochoa, Inspector General of the U.S. General Services Administration.  The government is represented by Assistant U.S. Attorneys Sean J.B. Franzblau and Kelly Greening of the Northern District of Illinois, and Special Assistant U.S. Attorney Crissy Pellegrin of the EPA.

According to the plea agreement, Brundage caused employees of Chicago Heights-based Intercon and Gary, Ind.-based EnviroGreen to sell some of the e-waste and other materials to vendors whom Brundage knew would ship the materials overseas.  Some of the materials contained Cathode Ray Tubes, which are glass video display components of computer and television monitors, and which contain potentially hazardous amounts of lead.  Brundage admitted causing multiple tons of CRT glass and other potentially hazardous materials to be destroyed in environmentally unsafe ways and later landfilled.

CHICAGO — An employee of a restaurant-reservation company used fake names and email addresses to create hundreds of fraudulent restaurant bookings through a competitor’s system, according to a criminal charge filed today by the U.S. Attorney’s Office in Chicago.

STEVEN ADDISON worked as an Enterprise Operations Specialist in the Chicago office of a San Francisco-based company that provides an online reservation system for restaurants.  From November 2017 until February 2018, Addison booked more than 300 fraudulent reservations at Chicago restaurants that use Reserve, a competing reservation service, according to a criminal information filed in federal court in Chicago.  Many of the bogus reservations were made on busy days, including New Year’s Eve and Valentine’s Day, when Addison knew restaurants would suffer financial losses when no diners showed up to claim the reservation, the information states.  Addison’s scheme intended to demonstrate to Chicago restaurants that Reserve had an inferior reservation system, the charge alleges.

The information charges Addison, 30, of Chicago, with one count of wire fraud.  Arraignment in federal court in Chicago has not yet been scheduled.

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

According to the information, Addison began his scheme after discovering that Reserve’s software did not prevent reservations from users who entered a fake email address or a fake phone number.  Addison made reservations using names such as “Hans Gruber,” “Richard Ashcroft” and “Jimmy Smits,” bogus email addresses such as “[email protected],” and fake phone numbers such as “199-999-99999,” the information states.

Addison made the reservations on his own accord and did not personally profit from the scheme, the information states.

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

A Honduran national was sentenced to 24 months in prison yesterday for theft of government funds in connection with his role in a stolen identity tax refund fraud scheme, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois.

According to documents and information provided to the court, Elin Matute, formerly of Waukegan, Illinois, cashed fraudulently obtained tax refund checks issued in the names of identity theft victims.  In total, the scheme involved approximately 200 false tax returns and resulted in an intended tax loss of over $1.1 million.  Matute cashed the checks at his bank and a local checking cashing business by claiming that the people listed on the checks were family members.  Matute would then deposit the proceeds into bank accounts he controlled and would also send portions of the money overseas.

In addition to the term of imprisonment imposed, the court ordered Matute to serve three years of supervised release and pay $630,498 in restitution to the IRS.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Lausch commended special agents of IRS-Criminal Investigation who investigated the case, and Trial Attorneys John T. Mulcahy and Gregory P. Bailey of the Tax Division, who are prosecuting the case.  Zuckerman also thanked the U.S. Attorney’s Office in Chicago for their substantial assistance.

Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.

CHICAGO — A Chicago man was sentenced today to 25 years in federal prison for engaging in numerous paid sexual acts with underage girls, along with restitution of approximately $240,000 to be paid into a trust fund for the victims and a $100,000 fine.

WILLIAM WHITLEY paid four minors to engage in sex acts with him on multiple occasions from 2012 to 2016.  Three of the victims were runaways at the time they encountered Whitley.  Two of his victims were 14 years old when Whitley first took advantage of them.  At the time of the criminal conduct, Whitley was employed as an officer with the Chicago Police Department.

Whitley, 62, pleaded guilty earlier this year to one count of sex trafficking of a minor.  U.S. District Judge Virginia M. Kendall imposed the sentence in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  Substantial assistance was provided by the Carol Stream Police Department, Chicago Police Department and the Cook County State’s Attorney’s Office.

“Defendant engaged in the sexual exploitation of children, which is one of the most heinous crimes one can commit,” Assistant U.S. Attorneys Sarah Streicker, Elizabeth Pozolo and Michelle Petersen argued in the government’s sentencing memorandum.  “Defendant victimized young runaways and caused his victims irreparable harm and trauma by causing them to engage in commercial sex on numerous occasions.”

The investigation revealed that Whitley took nude photographs of some of his victims, and he provided some of them with marijuana to smoke.  Whitley also openly displayed his status as a Chicago police officer during his sex trafficking conduct.  He was in a police car and wearing his police uniform when he first met one of his victims.  Two of his victims reported that Whitley often kept a loaded handgun under the pillow of his bed, where the sex acts took place.

If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678.  The hotline is available 24 hours a day, 7 days a week.

CHICAGO — Twenty individuals are facing criminal charges as part of joint federal and state investigations into drug and gun trafficking in Chicago.

The dual investigations centered on drug sales in the city’s Little Village neighborhood and resulted in the seizures of 445 grams of heroin, 230 grams of cocaine, and $97,770 in illegal drug proceeds.  Authorities also seized a pickup truck and 20 illegal firearms, including six rifles.

Indictments returned in U.S. District Court in Chicago charge ten federal defendants with various drug or firearm offenses.  Many of the federal defendants were arrested Wednesday.  Detention hearings will be held next week in federal court in Chicago.  Ten other defendants were charged in state complaints, and several of them were also arrested Wednesday.  The state defendants will appear in Cook County Criminal Court.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kimberly M. Foxx, Cook County State’s Attorney; Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; Eddie Johnson, Superintendent of the Chicago Police Department; and Thomas J. Dart, Cook County Sheriff.  Substantial assistance was provided by the U.S. Marshals Service and Illinois Department of Corrections.

“These indictments are the result of the relentless effort of multiple law enforcement agencies who are committed to stopping the flow of illegal drugs and guns into our communities,” said U.S. Attorney Lausch.  “We will continue to work with our state and local partners to investigate and prosecute these significant narcotic and firearm cases.”

“These seizures and indictments brought by our prosecutors prove that drugs, money and firearms do go hand-in-hand,” said DEA SAC McKnight.  “This collaboration among Chicago’s law enforcement community will continue to thrive and bring to justice those who offend and contaminate our communities.”

“The convergence of guns and drugs pose a tremendous threat to our city,” said FBI SAC Sallet.  “Today’s charges demonstrate our commitment to work side by side with our federal and local partners to bring to justice those who terrorize our neighborhoods.  Let it be clear, the rule of law is not optional.”

“Illegal drugs and firearms have no place in our communities, “said IRS-CI Special Agent-In-Charge Grchan.  “We are proud to provide our financial expertise as we work alongside our federal, state, and local law enforcement partners to bring these criminals to justice and make our communities safer.”

“Guns and drugs are driving the violence in many of our neighborhoods,” said State’s Attorney Foxx. “This coordinated and joint effort today with our law enforcement partners shows that we are all committed to ensuring public safety.”

“Our city is plagued by violence fueled by illegal guns and drugs,” Sheriff Dart said. “Those who trade in this misery must be held accountable.  Law enforcement will not give up this fight.”

U.S. v. Garcia-Arroyo, et al

This DEA-led investigation began in early 2017 and was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF), in cooperation with the Chicago High Intensity Drug Trafficking Task Force (HIDTA).  OCDETF is a partnership between federal, state and local law enforcement agencies, whose principal mission is to identify, disrupt and dismantle the most serious drug trafficking organizations.

JOSE GARCIA-ARROYO, 26, of Chicago, is charged with distributing cocaine and heroin in Chicago on numerous occasions last year.  Also charged with drug distribution are JASMIN GARCIA, 24, of Chicago; CARLOS CHAVEZ, 32, of Romeoville; and JOEL ANDRADE, 27, of Chicago.

The federal charges accuse convicted felons FAUSTO GONZALEZ, 27, of Chicago, and ARTURO GONZALEZ, 35, of Chicago, of illegally possessing firearms.  Fausto Gonzalez allegedly possessed a 12-gauge shotgun and a .40-caliber handgun in Chicago last year, while Arturo Gonzalez allegedly possessed two .22-caliber rifles in the city earlier this year.  JONATHAN PANIAGUA, 25, of Bolingbrook, is charged with unlawfully dealing firearms without a license.

In all, four federal indictments charge seven individuals, while state charges were filed against eight individuals.  Assistant U.S. Attorneys Aaron R. Bond and Matthew Hernandez represent the government in the federal cases, while the Cook County State’s Attorney’s Office will prosecute the state cases.

U.S. v. Oscar Hernandez, et al

This FBI-led investigation resulted in federal indictments against three individuals for gun or drug offenses, and state charges against two others.  Charged federally with illegal possession of a firearm are convicted felons ANTHONY MENDEZ, 21, of Melrose Park, and OSCAR HERNANDEZ, 37, of Chicago.  Mendez allegedly possessed a loaded AK-47 rifle in west suburban Elmwood Park in 2016, while Hernandez allegedly possessed a Colt .45 revolver and 42 rounds of ammunition in Chicago last year.  Hernandez also faces a federal drug charge for allegedly distributing cocaine in Chicago last year.

The federal charges also accuse HECTOR SANCHEZ, 23, of Chicago, with unlawfully dealing firearms without a license.

Assistant U.S. Attorneys Kavitha Babu and William Dunne represent the government in the federal cases, while the Cook County State’s Attorney’s Office will prosecute the state cases.

The public is reminded that charges contain only accusations and are not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory United States Sentencing Guidelines.

CHICAGO — A federal judge has sentenced a California man to 35 years in prison for overseeing an international drug-trafficking organization that used Amtrak trains to ship heroin and cocaine to Chicago from Los Angeles.

EDGAR ROQUE, 32, of Paramount, Calif., was the leader of an extensive network of drug dealers that moved thousands of kilograms of narcotics aboard the trains from 2010 to 2016.  At his direction, hundreds of packages were shipped from California to Chicago, St. Louis and elsewhere, each carrying at least three kilograms of cocaine and sometimes significantly more.  Roque worked with an insider at Amtrak to facilitate the shipments and avoid detection by law enforcement.

Roque pleaded guilty earlier this year to drug and money laundering charges.  U.S. District Judge Virginia M. Kendall imposed the sentence Tuesday in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; and Gabriel L. Grchan, Special Agent-in-Charge of the Chicago office of the Internal Revenue Service Criminal Investigation Division.  Substantial assistance was provided by the Amtrak Inspector General’s Office and the Amtrak Police Department.  Assistant U.S. Attorneys Paul H. Tzur and Kavitha Babu represent the government.

“This is criminal conduct of the worst kind,” Mr. Tzur argued in the government’s sentencing memorandum.  “Edgar Roque’s leadership role directing the mass movement of heroin and cocaine into the Chicago area and elsewhere showed that he had absolutely no regard for the safety and well-being of addicts and the communities into which he delivered the drugs.”

Authorities uncovered Edgar Roque’s drug-trafficking operation through a multi-year investigation dubbed “Operation Derailed.”  The investigation was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force, a partnership between federal, state and local law enforcement agencies.  The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking and money laundering organizations.

Edgar Roque was personally responsible for importing the drugs from Mexico into California via multiple cartel-level suppliers.  His organization involved more than a dozen people in California, Illinois and elsewhere.  After picking up the drugs at Union Station in Chicago, the group stored the narcotics at stash houses, including a home in the Gage Park neighborhood of Chicago and an apartment in northwest suburban Streamwood.  After selling the drugs throughout the Chicago area, Edgar Roque or members of his crew periodically flew west on commercial airlines with the cash proceeds, often carrying $150,000 per person.

More than 20 defendants were charged during the investigation, and several have pleaded guilty to their roles in Edgar Roque’s organization.  PHILLIP DIAZ, of Paramount, Calif., ensured delivery of narcotics and maintained bank accounts to launder drug proceeds.  Judge Kendall on Tuesday sentenced Phillip Diaz to 20 years and ten months in prison.  ANTHONY KOON, of Pueblo, Colo., delivered nearly 20 kilograms of heroin – with a wholesale value of at least $1 million – to the Chicago area in August 2014.  Judge Kendall previously sentenced Koon to nine years in prison.  GERARDO SANCHEZ, of Los Angeles, Calif., helped launder drug proceeds through various bank accounts, and he accepted delivery of Koon’s heroin in a hotel room in Tinley Park.  Judge Kendall previously sentenced Sanchez to 17 and a half years in prison.  JORGE LUIS OCHOA-CANELA, of Paramount, Calif., helped move hundreds of thousands of dollars of drug proceeds back to drug suppliers.  Judge Kendall previously sentenced Ochoa-Canela to five years and ten months in prison.  An Amtrak employee, ROY J. GRIFFIN, of Calumet City, admitted scheming to steal a package of cocaine that had arrived at Union Station in Chicago.  U.S. District Judge Andrea R. Wood previously sentenced Griffin to 18 months in prison.

Defendants who have pleaded guilty and are awaiting sentencing include RICHARD ROQUE, of Paramount, Calif. (scheduled to be sentenced on Sept. 27, 2018); ANGELICA CERVANTES, of Chicago (Nov. 19, 2018); JUAN J. CERVANTES, of Chicago (Nov. 21, 2018); and OMAR RAMIREZ, of Compton, Calif. (Dec. 18, 2018).

CHICAGO — A federal grand jury has indicted two Chicago Police Department officers for allegedly providing information from non-public traffic crash reports to the owner of an attorney-referral service in exchange for money.

Officers KEVIN TATE and MILOT CADICHON provided information from the crash reports to RICHARD BURTON, who owned and operated Bloomingdale-based National Attorney Referral Service, the indictments allege.  In exchange, Burton allegedly paid a total of at least $7,350 to Cadichon, and at least $6,000 to Tate.  Burton then used the information to solicit accident victims as clients for attorneys, the charges state.

The indictments were returned Thursday in U.S. District Court in Chicago.  Tate, 47, of Chicago, Cadichon, 46, of Chicago, and Burton, 55, of Bloomingdale, are charged with conspiracy to commit bribery.  Tate and Cadichon also face an additional count of bribery.  Arraignments in federal court have not yet been scheduled.

The indictments were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The government is represented by Assistant U.S. Attorneys Andrianna D. Kastanek and Ankur Srivastava.

Traffic crash reports in Chicago are either filled out by a police officer who appears on the scene of an accident, or by a complainant appearing in person at a local police station.  Although the reports are not publicly available during a processing period ranging from 24 hours to several weeks, police officers can access them for legitimate law enforcement reasons.  Officers are not permitted to access or disclose the reports for non-law enforcement purposes.

According to the indictments, Tate and Cadichon provided information from the reports to Burton from 2015 to 2017.  The information was conveyed in various ways, including using a cell phone to text Burton the crash victims’ contact information, the indictments state.  Burton paid the officers via cash bribes and wire transfers, the charges allege.

The conspiracy charge carries a maximum penalty of five years in prison, while the bribery charge is punishable by up to ten years.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory United States Sentencing Guidelines. 

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

ROCKFORD — Six Freeport residents were arrested yesterday on criminal charges as part of a joint federal and state investigation into heroin and cocaine sales in the Freeport area.  The arrests follow criminal indictments returned Tuesday by a federal grand jury in Rockford. 

Arrested were JOSEPH COLEMAN, also known as “Big Joe,” 34, who was charged with three counts of distributing heroin and one count of possession with intent to distribute heroin and cocaine between April 2017 and June 2017; TRISTAN EUELL, also known as “Whip,” 35, charged with one count of distributing heroin in May 2017; ANTHONY THOMPSON, also known as “Blimp,” 42, charged with one count of distributing cocaine in April 2017; FRANK HOWARD, also known as “Nub,” 36, charged with four counts of distributing cocaine and one count of possession with intent to distribute cocaine between February 2018 and April 2018; KYRAN WILLIAMS, also known as “Skinny,” 23, charged with four counts of distributing heroin between April 2017 and June 2018; and TERRANCE YOUNG, also known as, “Sleepy,” 45, charged with three counts of distributing cocaine between July 2017 and December 2017.

During the investigation, law enforcement seized four firearms, distribution quantities of heroin, cocaine, and marijuana, and over $65,000 in cash.

The charges and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Leo P. Schmitz, Director of the Illinois State Police; and Todd Barkalow, Freeport Police Chief.  The investigation was conducted by the Rockford Area Violent Gang Task Force, the Stateline Area Narcotics Team (“SLANT”), a task force led by the Illinois State Police, and the Freeport Police Department.  The Rockford Area Violent Gang Task Force is led by the Federal Bureau of Investigation and includes members of the FBI and the Rockford, Loves Park, and Freeport Police Departments.  The government is represented by Assistant U.S. Attorney Margaret J. Schneider.

“Heroin and cocaine are dangerous narcotics that are ravaging families and communities in northwestern Illinois,” said U.S. Attorney Lausch.  “These indictments are the result of the diligent efforts of investigators and prosecutors to identify and dismantle a significant drug trafficking organization.”

“These arrests and seizures demonstrate our unwavering commitment to work with our partners to put an end to drug-related violence anywhere it's found in northern Illinois,” said FBI SAC Sallet.  “We are proud to work side by side with the U.S. Attorney's Office, the Rockford Area Violent Gang Task Force, the Freeport Police Department and the Illinois State Police's State Line Area Narcotics Team to bring these individuals to justice.  Those who endanger our communities with drugs should realize, you will be stopped.”

 “The arrests are the result of a multiagency initiative that targeted drug trafficking in our city,” said Freeport Chief Barkalow.  “This investigation, spanning 24 months, is in cooperation with the FBI Safe Streets Task Force and the Illinois State Police, that targeted upper-level narcotic dealers.  These arrests should send a loud and clear message to those in our city committing drug offenses: we know who you are, the community knows who you are, and you could be next.”

“The work with the FBI is an example of multiple agency work across city, state and federal agencies to address criminal elements in the City of Freeport,” said Lowell Crow, Freeport City Manager.

Defendants Coleman, Thompson, Howard, Williams, and Terrance Young all appeared yesterday before U.S. Magistrate Judge Iain D. Johnston in federal court in Rockford, and pleaded not guilty.  Detention hearings are set for next week.  Defendant Euell is scheduled to appear before U.S. Magistrate Johnston on Wednesday, Sept. 6, 2018, for an initial appearance and detention hearing.

Each count of the indictment carries a mandatory minimum penalty of five years in prison and a maximum penalty of up to 40 years in prison.  If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

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

CHICAGO — A federal judge today sentenced a Chicago man to 30 years in prison for robbing a suburban bank at gunpoint.

MALCOLM CARPENTER and another man robbed a Bank of America branch in Homewood on Dec. 4, 2013.  Upon entering the bank, Carpenter announced a robbery and pointed a loaded handgun at a pregnant teller behind the counter.  He and the other robber then forced three female bank employees to lie face down on the ground while compelling the bank manager and a teller to open the vault and hand over cash.  The pair fled the bank with $80,288, but were soon arrested while hiding in a vehicle parked in a nearby apartment complex.

A jury last year convicted Carpenter, 38, of Chicago, on bank robbery and firearm charges.  U.S. District Judge Rebecca R. Pallmeyer imposed the sentence in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  Substantial assistance was provided by the South Suburban Major Crimes Task Force, the South Suburban Emergency Response Team, and the Homewood Police Department.

 “When defendant chose to rob a bank and point a loaded firearm at five innocent individuals, he also chose to put each of their lives at risk,” Assistant U.S. Attorneys Kelly Greening and Sean J.B. Franzblau argued in the government’s sentencing memorandum.  “The victim bank employees suffered a lasting, human cost.”

The other robber, JUSTIN WILLIAMS, 30, of Calumet Park, pleaded guilty to bank robbery and firearm charges.  Judge Pallmeyer in 2016 sentenced Williams to ten years in prison.

WASHINGTON - The Justice Department today announced that it settled a lawsuit against the Village of Tinley Park, Illinois, a suburb of Chicago, alleging that it violated the Fair Housing Act when it refused to approve a low-income housing development in response to race-based community opposition.

The suit, filed in U.S. District Court in Chicago, Illinois, in November 2016, alleged that the Village of Tinley Park discriminated against prospective tenants of a proposed development when it refused to approve the project, despite the Tinley Park Planning Department’s finding that the project was in “precise conformance” with the applicable building requirements. Under Tinley Park’s zoning ordinances, Tinley Park’s Plan Commission should have approved the project and allowed construction to begin. Instead, the lawsuit alleged that in response to race-based community opposition, Tinley Park trustees requested the Plan Commission table consideration of the project. The Plan Commission did so, stalling the project indefinitely. 

Under the settlement, the Village will pay a total of $360,000 in monetary damages to the Village’s former planning director who was placed on leave because of her support for the project, as well as a $50,000 civil penalty to the United States. In addition, the Village will also take a number of actions to guard against further housing discrimination, including training  elected officials and individuals involved in the planning process, developing a fair housing policy, and hiring a fair housing compliance officer. The developer of the property reached a separate settlement with the Village in April 2017. 

“Increasing access to housing, including through affordable housing, is important to the development of our communities,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department will continue to enforce federal civil rights laws, and protect against discrimination, including on the basis of race, with respect to access to affordable housing.”

“Access to housing free from discrimination is a right afforded to all Americans,” said U.S. Attorney John R. Lausch, Jr. of the Northern District of Illinois. “This settlement is an example of our office’s continuing effort to enforce anti-discrimination laws that protect those rights.”

Individuals who believe they have been victims of housing discrimination practices may file a complaint with the Department of Housing and Urban Development (HUD) or a lawsuit in federal or state court. Individuals must file their complaint with HUD within one year of a housing discrimination incident or file a lawsuit in federal or state court within two years of an incident. For more information about housing discrimination laws, call (202) 514-4713 or visit the Department of Justice website at http://www.usdoj.gov/crt/housing/index.html.

CHICAGO — A Chicago financial advisor who told clients that a “fat finger” trading error caused major losses to their investments admitted in federal court today that he actually lost all of their funds through poor trading.

VISHAL SAVLA, 37, of Chicago, pleaded guilty to one count of wire fraud.  Savla operated VCAP LLC, a Chicago investment fund that purported to trade in equities, options and futures contracts.

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

Savla admitted in a plea agreement that from 2014 to earlier this year, he raised approximately $2.3 million from investors on the promise of substantial returns.  VCAP was largely unsuccessful during that time, losing approximately 96% in 2014 and more than 99% in the first eleven months of 2016.  Savla continued to solicit and accept investments, and he sent clients phony account statements that fraudulently showed large profits instead of heavy losses, the plea agreement states.  At one point in December 2016, according to the plea agreement, Savla falsely represented to clients that he accidentally committed a “fat finger trade” – an error when entering a trade online – that caused VCAP to decline by approximately 90% in a single day.  Savla admitted in the plea agreement that there was no such error, and that trading losses had caused the decline.

In addition to the losses incurred by investors, Savla’s plea agreement acknowledges that he borrowed funds from family and friends to help repay VCAP investors.  One family member, after being told by Savla about the purported “fat finger” mistake, loaned Savla $500,000, the plea agreement states.  Savla used this money to partially repay some of the VCAP investors.

Savla also admitted in his plea agreement that he spent approximately $260,000 of investor funds for his own personal benefit, including living expenses.  VCAP did not have any cumulative trading profits that allowed for these withdrawals.

Wire fraud is punishable by up to 20 years in prison.  U.S. District Judge Charles R. Norgle set sentencing for Jan. 9, 2019, at 10:00 a.m.

CHICAGO — A convicted felon from Chicago has pleaded guilty to federal firearm charges for illegally selling more than a dozen handguns and rifles.

JYMIL CAMPBELL, 31, admitted in a plea agreement that he sold ten handguns, four large-capacity magazines and three rifles during a nine-month period that ended with his arrest in August 2016.  Most of the sales occurred in Campbell’s residence in the North Lawndale neighborhood of Chicago.  The sales netted Campbell a total of $8,700 in cash, the plea agreement states.  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 Tuesday to one count of willfully dealing firearms without a license and one count of illegal possession of a firearm by a convicted felon.  The convictions carry a maximum sentence of 15 years in prison.  U.S. District Judge Robert W. Gettleman set sentencing for Nov. 15, 2018.

The guilty plea 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.  The government is represented by Assistant U.S. Attorney Devlin N. Su.

Campbell acknowledged in his 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. 

According to the plea agreement, one of the gun buyers put Campbell on notice that the guns 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 — Nine individuals are facing criminal charges as part of a joint federal and state investigation into heroin and cocaine sales in the Joliet area.

As part of the probe, law enforcement intercepted cellphone communications between the defendants, conducted extensive surveillance, and seized several items, including three firearms, more than three kilograms of cocaine, more than 60 grams of heroin, approximately $90,000 in illicit cash proceeds, and several vehicles.  Authorities also carried out court-authorized searches of residences in the 800 block of Vine Street in Joliet, the 1400 block of Exposition Avenue in Aurora, and the 2100 block of Englewood Avenue in Lockport.  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.

Seven defendants are charged in U.S. District Court in Chicago in conspiracies to possess controlled substances with the intent to distribute.  Two defendants are charged in Will County with state drug offenses.  

Several of the federal defendants were arrested last week and have made initial appearances in federal court in Chicago.  The state defendants will appear in Will County Circuit Court at a later time.

The federal charges 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.  Substantial assistance was provided by the Will County State’s Attorney’s Office, Joliet Police Department, Bolingbrook Police Department, Will County Sheriff's Office, Cook County Sheriff's Office, Orland Park Police Department, Evergreen Park Police Department, Aurora Police Department, and the U.S. Bureau of Prisons Joint Intelligence Sharing Initiative.  Assistant U.S. Attorney Devlin N. Su represents the government in the federal cases.

Charged with federal conspiracies are WILLIAM NOBLES, 51, of Joliet; JARON NABORS, 38, of Joliet; ERICKA PRUITTE, 38, of Joliet; KALVIN STEWART, 51, of Aurora; GREGORY WARFIELD, 67, of Joliet; CAESAR ESTRADA, 44, of Joliet; and LUIS CONTRERAS, 40, of Joliet.  Charged in state court are TASHAUN M. MCCARTER, 40, of Joliet; and DAVID L. WHITE, 53, of Joliet.

According to the federal complaints, Nobles is affiliated with the Joliet faction of the Black Gangster Disciples street gang and operates a drug trafficking organization in the Joliet area.  Nabors has conspired with Nobles to distribute the drugs, while Pruitte served as a courier on behalf of Nabors, the charges allege.  The complaints describe several instances in which the trio allegedly conspired to distribute narcotics, including in February 2018 when Nobles allegedly supplied Pruitte with cocaine that had been distributed to Nobles by Estrada and Contreras, knowing that Pruitte would then deliver the drugs to Nabors.  After the meeting, law enforcement pulled over Pruitte’s vehicle and discovered cocaine, crack cocaine and heroin inside the car, the charges allege.

A separate cocaine seizure occurred in December 2017 after Stewart allegedly supplied Warfield with the drugs during a meeting in Aurora, knowing that Warfield would then deliver the drugs to Nobles.  After the meeting, law enforcement pulled over Warfield’s pickup truck and discovered the cocaine in a shopping bag hidden in the passenger-side molding, according to the complaints.  Officers also discovered a loaded handgun in the center console of the truck, the complaints state.       

The federal conspiracy charges carry a mandatory minimum sentence of five years in prison and a maximum penalty of 40 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 contains only accusations and are not evidence of guilt.  The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

CHICAGO — A suburban Chicago man has been indicted on federal criminal charges for allegedly sharing images of child pornography.

DUSTAN SETNER, 42, of Rosemont, is charged with three counts of transportation of child pornography and one count of possession of child pornography.  Setner shared a photograph and two videos of child pornography in 2016 and 2017, the indictment states.  The photograph was entitled, in part, “9yo in nylons and collar,” while one of the video files was entitled “Baby,” according to the indictment.  Setner allegedly possessed the child pornography on his desktop computer and an external hard drive.

The indictment was returned Thursday in federal court in Chicago.  Arraignment is set for Aug. 27, 2018, at 11:30 a.m., before U.S. Magistrate Judge Sheila M. Finnegan.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.  The Forest Park Police Department provided valuable assistance.  The government is represented by Assistant U.S. Attorney Aaron R. Bond. 

Each count of transporting child pornography is punishable by a mandatory minimum sentence of five years in prison and a maximum of 20 years, while the possession charge carries a maximum sentence of ten years.  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 charges are 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.  The hotline is available 24 hours a day, seven days a week.

ROCKFORD — Seven Rockford residents have been charged by a federal grand jury with multiple counts of wire fraud and additional offenses.  FEUY KHAIKHAM, 57; LEEFORM XAYVANDY, SR., a.k.a. “John,” 37; BOUNLEUNG THAMONTRI, a.k.a. “Tommy,” 54; VANSY XAYVANDY a.k.a. “Dee,” 42; SOM XAYVANDY, 47; CHRISTIANA XAYVANDY, a.k.a. “Tina,” 26; and AUNG GYAW, a.k.a. “AJ,”  23, were each charged with seventeen counts of wire fraud in a superseding indictment returned on July 31, 2018.

The wire fraud charges relate to the Supplemental Nutrition Assistance Program (“SNAP”), formerly known as the food stamp program.  SNAP is a federal benefit program that assists low-income individuals and families purchase food.  The U.S. Department of Agriculture, Food and Nutrition Service (“USDA”) is responsible for administering and implementing SNAP in conjunction with state governments.  The Illinois Department of Human Services, which administers SNAP in Illinois, provides benefits to eligible individuals and families on their Illinois Link cards.  To use their SNAP benefits, Illinois recipients must present their Link card to a retailer authorized to participate in SNAP by the USDA.  Stores authorized to participate in SNAP can accept SNAP benefits only as payment for eligible food items and cannot accept SNAP benefits in exchange for cash.  The illegal exchange of SNAP benefits for cash is commonly referred to as SNAP trafficking.

The superseding indictment alleges that between April 2015 and January 18, 2017, the defendants schemed to defraud the USDA and the State of Illinois by fraudulently accepting and redeeming SNAP benefits exchanged for discounted amounts of cash, knowing that such exchanges were prohibited under SNAP.  It is alleged that the seven defendants fraudulently obtained more than $3 million in reimbursement for SNAP benefits over the course of the SNAP trafficking scheme.  Each count of wire fraud carries a maximum penalty of 20 years in prison and a fine of up to $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater.

The superseding indictment also charges Khaikham, Leeform Xayvandy, Som Xayvandy, and Gyaw with one count each of SNAP fraud, and it charges Vansy Xayvandy with two counts of SNAP fraud.  SNAP fraud carries a maximum penalty of 5 years in prison and a $10,000 fine.

In addition to wire fraud and SNAP fraud charges, the superseding indictment charges Khaikham, Leeform Xayvandy and Thamontri with conspiracy to commit money laundering and multiple counts of money laundering.  The superseding indictment alleges that Khaikham and Thamontri recruited an individual to act as a nominee owner of a grocery store in Rockford, obtain SNAP authorization for the grocery store, and open a bank account for the grocery store in the nominee owner’s name.  The superseding indictment alleges that proceeds of SNAP trafficking transactions conducted by Khaikham, Thamontri, and Leeform Xayvandy were deposited into the bank account, which was controlled by Khaikham and Thamontri. The superseding indictment further alleges that Khaikham, Thamontri, and Leeform Xayvandy conspired to conduct and attempt to conduct financial transactions to liquidate and distribute those proceeds while concealing the nature, control and ownership of the proceeds.  Each count of money laundering and conspiracy to commit money laundering carries a maximum penalty of 20 years in prison and a $500,000 fine.

The superseding indictment also charges Leeform Xayvandy with one count of engaging in a monetary transaction in criminally-derived property in an amount greater than $10,000. This count carries a maximum penalty of ten years in prison and a $250,000 fine.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Anthony Mohatt, Special Agent-in-Charge of the Midwest Regional Office of the U.S. Department of Agriculture, Office of Inspector General in Chicago; and Gabriel L. Grchan, Special Agent-in-Charge of the Chicago office of the Internal Revenue Service, Criminal Investigation Division.  The Rockford Police Department and the Winnebago County Sheriff’s Office assisted in the investigation.

Leeform Xayvandy, Christiana Xayvandy and Gyaw were arraigned on Aug. 7, 2018, and pleaded not guilty to all charges. Vansy Xayvandy and Som Xayvandy were arraigned Tuesday and also pleaded not guilty to all charges. Khaikham is scheduled to be arraigned on the superseding indictment on Sept. 6, 2018, at 11:00 a.m.  With the exception of Thamontri, who remains at large, the other defendants are currently released on bond pending trial.

The public is reminded that an indictment contains only charges and is not evidence of guilt.  Each defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines and order full restitution.

The government is represented by Assistant U.S. Attorney Talia Bucci.

ROCKFORD — A Rockford man was sentenced today by U.S. District Judge Frederick J. Kapala for mail fraud. 

TODD J. FENDLER, 42, was sentenced to 50 months in federal prison, to be followed by three years of supervised release, in addition to being ordered to pay $965,879.63 in restitution. 

Fendler, who pleaded guilty to the charge on Jan. 17, 2018, was a licensed insurance producer who owned and operated several insurance-related businesses in Rockford, including Surplus Market Solutions LLC, Northern Underwriting Managers Inc., Northern Illinois Insurance Billing Services, and Northern Illinois Insurance Agency Inc. 

The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.  The government was represented by Assistant U.S. Attorneys John G. McKenzie and Scott R. Paccagnini.

According to a written plea agreement, Fendler obtained bank account information from businesses and individuals who had applied for insurance policies through Fendler’s companies.  Using the victims’ bank account information, without authorization, Fendler used on-line services to create fictitious electronic checks purportedly issued by the victims and payable to Fender’s companies.  Fendler deposited those fictitious checks into bank accounts he controlled and then kept those funds for his own purposes.  Fendler also made unauthorized electronic withdrawals from his clients’ bank accounts and the bank accounts of insurance agents and agencies that Fendler did business with, and then kept those funds for his own purposes.

CHICAGO — Two technicians at a Chicago pharmacy stole more than 56,000 pills of Hydrocodone and sold them for a profit, according to an indictment returned in federal court in Chicago.

ELIZABETH CRUZ and JACQUELINE GREEN worked at Allcare Discount Pharmacy, located in the 2700 block of West North Avenue in Chicago.  From September 2015 to December 2017, the pair conspired to steal approximately 56,108 pills of Hydrocodone and sell them outside the pharmacy for a profit, the indictment states.  Cruz and Green concealed the scheme by falsifying the pharmacy’s inventory to make it look like the pills had either not been received from the distributor or were dispensed to patients, according to the charges.

The indictment charges Cruz, 33, of Stone Park, and Green, 27, of Chicago, with conspiracy to possess a controlled substance with the intent to deliver.  Both defendants were arrested on Aug. 9, 2018.  Detention hearings are scheduled for today at 3:00 p.m., before U.S. Magistrate Judge Maria Valdez in Chicago.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration.  The government is represented by Assistant U.S. Attorney Nani M. Gilkerson.

“Diversion of opioids contributes to addiction and illegal drug sales in our communities,” said U.S. Attorney Lausch.  “Pharmacy employees who divert prescription drugs for their own profit will be prosecuted to the full extent of the law.”

“This investigation illustrates that the DEA and the U.S. Attorney’s Office will bring to justice those responsible for the theft and diversion of controlled substances, not only on the street, but also in pharmacies,” said Special Agent-in-Charge McKnight.

The conspiracy charge carries a maximum penalty of 20 years in prison.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory United States Sentencing Guidelines.  The public is reminded that charges are not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

CHICAGO — A federal grand jury has indicted a former Chicago man for allegedly attempting to join the Islamic State of Iraq and al Sham.

FARESS MUHAMMAD SHRAITEH, 21, is charged with one count of conspiracy to provide material support and resources to ISIS, and one count of attempting to provide material support and resources to ISIS.  The indictment was returned Thursday in U.S. District Court in Chicago.

Shraiteh is a United States citizen who formerly resided in Chicago and now lives in Israel.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; John C. Demers, Assistant Attorney General for National Security at the U.S. Department of Justice; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The case was investigated by the Chicago Joint Terrorism Task Force, which is comprised of representatives from the FBI and numerous federal, state and local law enforcement agencies.

According to the indictment, Shraiteh and two other individuals began conspiring to join ISIS in November 2014.  In May 2015 the trio traveled from Chicago to Egypt, where they allegedly spent time in Cairo and Sharm El-Sheik, before flying to Istanbul, Turkey.  Shraiteh was denied entry into Turkey, while the two others were allowed in, the indictment states.  Shraiteh went to Israel, where he has family, and later communicated with one of the other individuals that he planned to renew his passport and join them, the charges allege.

One of the other individuals was later killed while conducting a suicide attack on behalf of ISIS, the indictment states.  The charges allege that Shraiteh knew ISIS was a terrorist organization when he conspired to join it.

Each charge in the indictment is punishable by up to 15 years in prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines. The public is reminded that an indictment is not evidence of guilt.  Shraiteh 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. Attorneys Barry Jonas and Peter S. Salib of the Northern District of Illinois, and Trial Attorney Lolita Lukose of the National Security Division’s Counterterrorism Section.

CHICAGO — The owners of five Chicago-area restaurants are facing criminal tax charges as part of a federal investigation into the underreporting of gross receipts.

The charges allege that the restaurant owners willfully avoided paying the full amount of federal taxes by reporting gross receipts that were substantially lower than the true amounts.  The federal investigation, which remains ongoing, has focused on sales suppression software and other techniques used by restaurant owners to manipulate gross receipts. 

Charged with willfully filing false tax returns are SHULI ZHAO, 59, of Westmont, the owner of Katy’s Dumpling House in Westmont; CHUN XU ZHANG, 42, of Aurora, the owner of Sushi City in Downers Grove; QUAN SHUN CHEN, 53, of Chicago, the owner of Hunan Spring in Evanston; SANDRA SANCHEZ, 44, of Morton Grove, the owner of Cesar’s Tacos on North Clark Street in Chicago; and ISRAEL SANCHEZ, 43, of Chicago, the owner of Cesar’s on Broadway on North Broadway in Chicago.  Arraignments in U.S. District Court in Chicago have not yet been scheduled.

The charges were 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 Connie Beard, Director of the Illinois Department of Revenue.

“These charges send a clear message that restaurant owners who choose to illegally underreport gross receipts will be held accountable,” said U.S. Attorney Lausch.  “Recovering funds for the federal treasury is a top priority in our office.”

“The charges announced today are an important step in the fight against individuals and restaurants in our community that cheat on their taxes,” said Special Agent-in-Charge Grchan.  “This is only the beginning.  I want to warn those restaurants, gas stations, convenience stores, and other establishments that are currently using or thinking of using sales suppression software, that we are on to you and your methods.  If you steal from the federal government, there will be serious consequences.” 

“I commend the work of the Illinois Department of Revenue’s Criminal Investigations Division and the IRS as we continue efforts to protect taxpayers from tax fraud,” said Director Beard.  “Today’s charges should send a message that technology cannot shield criminals from being held accountable.”

Zhao, Zhang and Chen were charged in indictments returned Tuesday in U.S. District Court in Chicago.  Zhao allegedly underreported gross receipts for the calendar years 2013 to 2015; Zhang for the calendar years 2012 to 2015; and Chen for the fiscal years 2012 to 2015 and the calendar years 2015 and 2016.  Assistant U.S. Attorney Sheri H. Mecklenburg represents the government in the Zhao, Zhang and Chen cases.

Sandra Sanchez and Israel Sanchez were charged in criminal informations filed Tuesday in U.S. District Court in Chicago.  Sandra Sanchez and Israel Sanchez allegedly underreported gross receipts for the calendar year 2012.  Assistant U.S. Attorney Yusef Dale represents the government in the Sandra Sanchez and Israel Sanchez cases.

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.  Filing false tax returns carries a maximum penalty of three years in prison.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory United States Sentencing Guidelines.

The U.S. District Court for the Northern District of Illinois has entered a permanent injunction against three related Chicago companies — Global Marketing Enterprises, Inc., Lifeline Nutrients, Corp., and Pronto Foods Company — as well as their owner Eduardo S. Chua, and their operations manager Haidee V. Dawis.  The injunction prevents the defendants from manufacturing, selling, and distributing adulterated and misbranded dietary supplements and unapproved and misbranded drugs, the Department of Justice announced today.  

The Department filed a complaint on July 26, 2018, alleging that defendants manufacture, package, label, and distribute numerous products in violation of the Federal Food, Drug and Cosmetic Act (FDCA).  The complaint further alleges that defendants’ dietary supplements were adulterated because they were not manufactured, prepared, packed, labeled or held in compliance with federal current good manufacturing practice (CGMP) regulations.  FDA inspections of defendants’ plant in 2015 and 2017 revealed numerous failures to comply with CGMP regulations, including the failure to establish specifications for the identity, strength, composition and purity of their products and the failure to establish and follow written sanitation procedures.  The complaint also alleges that many of the labels on defendants’ supplements were deficient, and caused the products to be misbranded under the FDCA.

Additionally, defendants marketed numerous products as drugs, according to the complaint, by making claims that these products could help treat or prevent a host of serious diseases, including Alzheimer’s disease, diabetes, HIV/AIDS, and Parkinson’s disease.  Defendants sold these products to the public using these claims despite not having the required FDA approval.  

The complaint alleges that defendants’ disease-related treatment claims were unsupported by any well-controlled clinical studies or other credible scientific substantiation.  Additionally, defendants’ products did not contain adequate directions for such uses.  The complaint asserts that directions for use, including dosages, warnings, and side effects, must be premised on clinical data derived from scientifically controlled investigation, and since defendants made disease-related treatment claims about their products in the absence of any such clinical data, the products were misbranded.  

The defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction.  The consent decree requires that if the defendants wish to resume manufacturing and distributing dietary supplements in the future, they must implement the remedial measures set forth in the consent decree, notify the FDA of the measure they have taken, and obtain written approval from the FDA that they appear to be in compliance with both the terms of the consent decree and the provisions of the FDCA.

“Consumers must be able to trust that the products they buy are safe and the claims on the product's label can be relied on,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Justice Department will continue to work with FDA to take action against manufacturers that employ substandard practices, so that the public can rely on the safety and integrity of the products they buy.”

“Marketing medical products that were not manufactured in compliance with FDA regulations and making unsubstantiated claims about those products can lead to serious consequences for unsuspecting buyers,” said U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois. “This case reflects our office’s ongoing commitment to safeguard consumers.”

“Companies that market dietary supplements with unproven health claims and also continue to violate manufacturing regulations put consumers’ health in jeopardy,” said Melinda Plaisier, FDA associate commissioner for regulatory affairs. “The FDA will take the enforcement actions necessary to protect consumers from this undue risk.”

This matter was handled by Trial Attorney James Harlow of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Donald Lorenzen of the U.S. Attorney’s Office for the Northern District of Illinois, with the assistance of Associate Chief Counsel Julie Lovas of the FDA’s Office of General Counsel, Department of Health and Human Services.

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Illinois, visit its website at www.justice.gov/usao-ndil.

CHICAGO — A former financial analyst for a north suburban medical waste management company used insider information to trade shares of the company ahead of an earnings report, according to a federal criminal charge filed today by the U.S. Attorney’s Office in Chicago.

In April 2016, MATTHEW C. BRUNSTRUM earned $158,707 in profits and avoided losses of $1,194 from the purchase and sale of securities in Lake Forest-based Stericycle Inc., where he worked as a financial analyst, according to a criminal information filed in federal court in Chicago.  Brunstrum used material, non-public information to make the trades ahead of a public announcement by Stericycle regarding its lower-than-projected earnings for the first quarter of 2016, the information states.  Brunstrum also directed or encouraged a relative to make similar trades ahead of the earnings announcement, the information alleges.  The relative allegedly made profits of $146,028, and avoided losses of $24,224.

The information charges Brunstrum, 26, of Chicago, with one count of securities fraud by insider trading.  The charge was filed by the Securities and Commodities Fraud Section of the U.S. Attorney’s Office in Chicago.  During the investigation, authorities seized $328,959 in illegal profits.

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 U.S. Securities and Exchange Commission, which today filed a civil enforcement action against Brunstrum, provided valuable assistance.

The charge alleges that certain Stericycle personnel, including Brunstrum, became aware of the company’s first quarter earnings results in mid-April 2016.  When trading on the Nasdaq Stock Market closed on April 28, 2016, Stericycle’s share price was $121.74.  After the close of trading that day, Stericycle publicly announced the earnings results and its executives participated in a conference call with outside analysts.  During the call, Stericycle’s chief financial officer acknowledged that earnings per share were approximately 5% lower than the company had projected.  The following trading day, Stericycle’s stock price fell more than 20%, closing at approximately $95.56 per share.

The charge alleges that Brunstrum and his relative sold nearly 1,050 shares of Stericyle stock prior to the public earnings announcement.  The pair also purchased more than 180 near-term, out-of-the-money put options for Stericycle shortly before the earnings announcement, and then sold those options at a profit after Stericycle’s stock declined, the information states. 

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

Arraignment is set for Aug. 2, 2018, at 1:30 p.m., before U.S. Magistrate Judge Jeffrey T. Gilbert.  Securities fraud by insider trading is punishable by up to 20 years in prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

Assistant U.S. Attorney Paul H. Tzur represents the government in the criminal case.

CHICAGO — The vice president of an insurance underwriting group fraudulently obtained more than $13.5 million from a corporate client by fraudulently issuing and collecting premium payments on “matching deductible” policies, according to federal criminal charges filed today by the U.S. Attorney’s Office in Chicago.

DAVID BALLARD, 54, of Chicago, oversaw the Pennsylvania account of a large health care company.  From 2005 to 2016, Ballard fraudulently issued “matching deductible” insurance renewal policies that his employer had not authorized, according to a criminal information filed in U.S. District Court in Chicago.  Ballard created and submitted to the health care company phony estimates, invoices, binder letters and policies that outlined the purported terms of coverage, the charges allege.  He then had the premium payments diverted to a shell company that he controlled, the information states.  As a result of the scam, Ballard fraudulently pocketed more than $13.5 million, which he used to pay personal expenses, including credit card bills, expensive dinners, travel costs, and real estate for himself and his family, according to the charges.

Ballard is charged with one count of wire fraud, which is punishable by up to 20 years in prison.  Arraignment in U.S. District Court in Chicago has not yet been scheduled.

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

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

The government is represented by Assistant U.S. Attorney Jennie Levin.

CHICAGO — An Arkansas man has been sentenced to more than seven years in federal prison for illegally selling numerous handguns and rifles in Chicago and the suburbs.

KLINT KELLEY brought the firearms from Arkansas to Chicago and illegally sold them to a convicted felon.  Kelley sold a total of 21 guns to the felon on three occasions last year, including during the Fourth of July and Labor Day weekends.  The weapons included eleven handguns, nine rifles and one shotgun.  Several of the firearms were semi-automatic guns capable of accepting large-capacity magazines.

Kelley, 28, of Malvern, Ark., pleaded guilty earlier this year to one count of unlawfully engaging in the business of dealing firearms, and one count of selling firearms to a known felon.  U.S. District Judge Ronald A. Guzman on Wednesday sentenced Kelley to seven years and three months in prison.

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 and Explosives; and Eddie Johnson, Superintendent of the Chicago Police Department.  The Illinois State Police provided valuable assistance.

“In a city that has seen shootings and homicides in astronomical numbers, illegal transportation of firearms and to a known convicted felon should not be tolerated,” Assistant U.S. Attorney Tobara S. Richardson argued in the government’s sentencing memorandum.  “Defendant knowingly engaged in criminal conduct that contributes to one of the worst aspects of the city.”

Kelley’s plea agreement describes the three occasions when he illegally sold firearms to the felon.  On April 3, 2017, in a residence in southwest suburban Frankfort, Kelley sold the felon five handguns and three semi-automatic rifles, in exchange for $4,750 in cash.  On July 3, 2017, on Chicago’s West Side, Kelley sold the felon four handguns and one semi-automatic rifle, in exchange for $3,000 in cash.  On Sept. 3, 2017, in a commercial area of southwest suburban Chicago Ridge, Kelley sold the felon five rifles, two handguns and one semi-automatic shotgun, in exchange for $7,000 in cash.

At least three of the 21 firearms had been reported stolen, including one gun taken in a burglary of a police officer’s residence.

Kelley grew up in Illinois and moved to Arkansas several years ago.

CHICAGO — Six individuals are facing federal criminal charges as part of an investigation into heroin and crack cocaine sales in the Rockford area.

As part of the probe, law enforcement conducted numerous controlled purchases of narcotics and conducted extensive physical and video surveillance.  Authorities earlier this month searched a residence in the 4400 block of Grinnell Drive in Rockford and discovered distribution quantities of heroin.

The investigation was conducted by the Rockford Area Violent Gang Task Force and the Winnebago County Sheriff’s Police.  The Rockford Area Violent Gang Task Force is led by the Federal Bureau of Investigation and includes members of the FBI and the Rockford, Loves Park, and Freeport Police Departments.

A criminal complaint and affidavit filed in U.S. District Court in Rockford charges six defendants with conspiracy to distribute and possess heroin, cocaine, and crack cocaine, with intent to distribute.  Several of the defendants were arrested Wednesday.  Detention hearings will be held next week in U.S. District Court in Rockford. 

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Gary Caruana, Winnebago County Sheriff.  The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives assisted in the investigation.  Assistant U.S. Attorney Talia Bucci represents the government.

“The charges in this case send a clear message that the distribution of illegal drugs in Rockford will not be tolerated,” said U.S. Attorney Lausch.  “I commend our federal and local law enforcement partners for working together to shut down a significant drug trafficking organization.”

“These arrests and seizures demonstrate our overall strategy and relentless determination to eradicate the drug-fueled gang violence plaguing our community,” said FBI Special Agent-in-Charge Sallett.  “We are proud to work side by side with the U.S. Attorney’s Office, the Rockford Area Violent Gang Task Force, and the Winnebago County Sheriff’s Office to bring these individuals to justice. Anyone who terrorizes our communities with their wanton drug dealing should know, we are coming for you.”

Winnebago County Sheriff Caruana thanked all law enforcement partners for their unselfish work to bring this case to a successful conclusion.  “This operation makes the Winnebago County region a safer community and showcases Cooperative Law Enforcement,” Sheriff Caruana said.

According to the complaint, TYJUAN ANDERSON, 35, of Rockford, operated a drug-trafficking organization that distributed narcotics in the Rockford area.  The complaint alleges that Anderson and other members of his crew, including CHRISTOPHER ARNOLD, 33, of Rockford, and LUMONT JOHNSON, 45, of Rockford, obtained narcotics from multiple suppliers and provided the drugs to other members of Anderson’s organization.  The charges allege that CLEVELAND JOHNSON, 38, of Rockford, and DAVID APPLETON, 55, of Rockford, distributed the drugs to customers in the Rockford area.

According to the complaint, Anderson served as a mentor to JUSTIN HILL, 37, of Rockford, on how to operate a successful drug-trafficking business, manage money, and avoid police surveillance.  At times when Anderson was low on narcotics, Hill would supply him with drugs to increase Anderson’s inventory, the complaint states.

The conspiracy charge carries a maximum penalty of 20 years in prison.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory United States Sentencing Guidelines.  The public is reminded that a complaint 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.

CHICAGO — A Michigan man has pleaded guilty to federal criminal charges for kidnapping and sexually assaulting a suburban Chicago woman whose home he burglarized.

CARLEOUS CLAY admitted in a plea agreement that he broke into the woman’s home in Lansing, Ill., in September 2015, took several items of value and carried them away.  When he returned later that night to steal more items, Clay encountered the woman, who was returning home with groceries, the plea agreement states.  Clay abducted the woman and drove her car to an ATM in Munster, Ind., where he used her PIN to withdraw $140 from her bank account.  Clay then drove to the parking lot of a vacant commercial business in Burns Harbor, Ind., and sexually assaulted the woman in the backseat of her car, the plea agreement states. 

Afterwards, Clay strangled the woman and used lighter fluid and a lighter to set her on fire in an effort to kill her, his plea agreement states.  The victim survived but suffered permanent and life-threatening bodily injuries.

Clay, 35, of Holland, Mich., pleaded guilty Tuesday to one count of kidnapping, one count of attempted murder, and one count of using fire to commit a felony.  The conviction is punishable by up to life in prison.  U.S. District Judge Virginia M. Kendall set sentencing for Oct. 9, 2018, at 10:00 a.m.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  Valuable assistance was provided by police departments in Lansing, Ill.; Burns Harbor, Ind.; Ogden Dunes, Ind.; Munster, Ind.; Porter County, Ind.; Holland, Mich.; and Ottawa County, Mich.  The government is represented by Assistant U.S. Attorneys Angel M. Krull and Ronald DeWald.

In addition to the kidnapping, Clay admitted in the plea agreement that he attacked a female case manager while jailed at the Metropolitan Correctional Center in downtown Chicago.  The attack occurred in April 2017 in the case manager’s office on a residential floor of the MCC.  Clay pretended to make a complaint about another inmate, but once inside the office he pushed the case manager to the floor and took her keys, which he used to lock himself inside the office with the victim, the plea agreement states.  Clay admitted that he put a homemade knife to the case manager’s throat and threatened to kill her.

Multiple MCC staff members eventually entered the office, deployed pepper spray on Clay, and removed the case manager from the room.

CHICAGO — A north suburban businessman who operated a cellular telephone distributorship throughout Illinois and other Midwestern states was sentenced last Friday to 24 months imprisonment for willfully failing to pay more than $800,000 in personal and corporate income taxes.

JORDAN ECKERLING, 53, of Highland Park, the owner of Pagecomm of Illinois Inc., pled guilty in January 2018, admitting that from 2008 to 2012 he caused tax losses to the United States and Illinois in the total amount of $806,099.  As the sole shareholder and officer of Pagecomm, Eckerling attempted to conceal income by causing the company to issue him “business checks” that he cashed and used for personal expenses. Eckerling admitted he caused the company to pay personal expenses such as a housekeeper to regularly clean his boat and his primary and secondary residences, and charged personal expenses to Pagecomm’s credit card accounts, including for a family vacation to Cancun, Mexico. Eckerling also admitted that he used gift cards belonging to the company for personal expenses, and that he placed his wife on the company payroll to obtain health insurance in her name rather than his, even though she was not employed by the company.   

U.S. District Judge Virginia M. Kendall imposed the sentence in federal court in Chicago.   Eckerling was ordered to report to the Federal Bureau of Prisons on September 28, 2018.  He paid the $806,099 tax obligations while the case was pending.

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 Internal Revenue Service Criminal Investigation Division in Chicago.

The government is represented by Assistant U.S. Attorney Sheri H. Mecklenburg.

CHICAGO — More than 50 individuals, including a reputed gang member, are facing criminal charges as part of a joint federal and state investigation into heroin and fentanyl sales in Chicago.

The investigation, dubbed “Operation Fat Chance,” centered on drug sales on the city’s West Side and resulted in the seizures of more than three kilograms of heroin, more than a kilogram of cocaine, and more than 230 grams of fentanyl.  Authorities also seized eight illegal firearms, including a semi-automatic assault rifle with a drum barrel magazine, and more than $100,000 in narcotics proceeds.  As part of the investigation, law enforcement shut down two open-air drug markets in the city’s North Lawndale and East Garfield Park neighborhoods.

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

Criminal complaints and affidavits filed in U.S. District Court in Chicago charge 15 defendants with various drug offenses.  Two of the federal targets were arrested on Tuesday and several more were arrested Thursday.  Detention hearings for some of the federal defendants will be held today and next week in U.S. District Court in Chicago. 

Forty two other defendants were charged in state complaints, and many of them were also arrested Thursday.  They have begun making initial appearances in Cook County Criminal Court.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Gabriel L. Grchan, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; Kimberly M. Foxx, Cook County State’s Attorney; and Eddie Johnson, Superintendent of the Chicago Police Department.  Substantial assistance was provided by the U.S. Marshals Service.  Assistant U.S. Attorneys Nani Gilkerson and Jeannice Appenteng are representing the government. 

According to the federal complaints, THOMAS BARFIELD, 36, of Chicago, is a reputed street-gang member who operated a drug trafficking organization that utilized street-level distributors (known as “pack workers”) to sell heroin and fentanyl to customers.  Many of the deals were carried out at an open-air drug market near the intersection of Homan Avenue and Douglas Boulevard in Chicago, the complaints state.  The sales were allegedly overseen by high-ranking members of Barfield’s organization, including CHARELLE THOMPSON, 28, of Chicago; NICOLE GREEN, 34, of Chicago; GLORIA ANDERSON, 60, of Chicago; and THOMAS SMITH, 65, of Chicago.  QUIERA WALLS, 35, of Chicago, and JARVIS PAYNE, 30, or Chicago, are alleged to have assisted Barfield with the packaging and distribution of narcotics.

From December 2017 to April 2018, according to the complaints, law enforcement conducted numerous undercover drug purchases from Smith, Anderson, and the pack workers, including MICHAEL JACKSON, 44, of Chicago; ANTON BROWN, 46, of Chicago; and ALFRED JOHNSON, 54, of Chicago.  Last month, agents searched Barfield’s home and three alleged stash houses on the West Side of Chicago, seizing heroin, cocaine, a rifle, two handguns, and drug-packaging materials, the complaints state.

The federal complaints also describe an April 2018 narcotics transaction in front of a grocery store in 4400 block of West Armitage Avenue in the Hermosa neighborhood of Chicago.  According to the charges, JOSE HERNANDEZ, 48, of Chicago, delivered a kilogram of cocaine to OBED ORNELAS, 36, of Chicago, inside Ornelas’ Ford Mustang.  When officers attempted to pull over the Mustang, Ornelas allegedly sped off and tossed the bag of cocaine out of the driver’s side window.  Officers recovered the bag in the 2400 block of North Kedzie Avenue in Chicago, the complaints state. The complaints also allege that Ornelas supplied Barfield with narcotics.

Also charged in the federal complaints is another reputed gang member, WILLIE KELLEY, 26, of Chicago.  Kelley allegedly managed heroin sales at an open-air drug market near the intersection of Lexington Street and Sacramento Avenue in Chicago’s East Garfield Park neighborhood.

The federal complaints also charge DARIUS FRANKLIN, 34, of Algonquin, and JONATHAN HARRIS, 26, of Cicero. According to the complaints, Franklin and Harris are alleged to have distributed heroin to various narcotics customers. Agents searched Franklin’s alleged stash house and recovered over two kilograms of heroin and drug-packaging materials. Franklin is also alleged to have provided heroin to Willie Kelley.

The public is reminded that a complaint 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.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory United States Sentencing Guidelines.

CHICAGO — Several Chicago-area medical professionals, including four physicians, are facing federal criminal charges as part of the largest health care fraud enforcement action in Department of Justice history, federal authorities announced today.

The national enforcement action taken by the Medicare Fraud Strike Force involved over 600 defendants charged throughout the country, including more than 150 physicians, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $2 billion in false billings. Several of the doctors were charged for their alleged roles in prescribing and distributing opioids and other dangerous narcotics. In addition, the Department of Health and Human Services has initiated suspension actions against numerous providers, including doctors, nurses and pharmacists.

The national enforcement action was announced by Attorney General Jeff Sessions; HHS Secretary Alex M. Azar III; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Deputy Director David L. Bowdich of the Federal Bureau of Investigation; Assistant Administrator John Martin of the U.S. Drug Enforcement Administration; Inspector General Daniel R. Levinson of the HHS Office of Inspector General; Deputy Chief Eric Hylton of the Internal Revenue Service’s Criminal Investigation Division; Director Alec Alexander of the Centers for Medicare and Medicaid Services; and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service.

Today’s enforcement actions were led and coordinated by the DOJ Criminal Division Fraud Section’s Health Care Fraud Unit, in conjunction with the Medicare Fraud Strike Force – a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. The operation includes the participation of the DEA, DCIS, and State Medicaid Fraud Control Units.

"Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer," said Attorney General Sessions. "In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history. This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever."

"Every dollar recovered in this year’s operation represents not just a taxpayer’s hard-earned money—it’s a dollar that can go toward providing healthcare for Americans in need," said HHS Secretary Azar. "This year’s Takedown Day is a significant accomplishment for the American people, and every public servant involved should be proud of their work."

"Medicare and Medicaid are significant health care programs that pay for vital medical services," said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. "Our office will continue to investigate and prosecute any medical professional who knowingly violates the rules and abuses the trust placed in them by the government and their patients."

"Our nation’s opioid epidemic has no boundaries, and today’s actions highlight just that," said Brian M. McKnight, Special Agent-in-Charge of the Chicago Field Division of the DEA. "Opioid addiction and the criminal activity driving it extend far beyond the cartels and gang violence to the rogue medical professionals identified today."

Several Chicago-area medical professionals, including four doctors, were charged as part of investigations in the Northern District of Illinois. The local charges were announced by U.S. Attorney Lausch; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor, Office of Inspector General; DEA Chicago SAC McKnight; Gabriel L. Grchan, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of HHS-OIG.

Two of the Illinois cases involved licensed physicians who allegedly falsely certified patients for home-health services reimbursed by Medicare. The indictments against DR. FLORENTINO LEONG and DR. RUBEN INOCENCIO allege that the doctors authorized in-home services even though they knew the patients were not confined to their homes and did not require such services. Dr. Leong, 78, of Orland Park, and Dr. Inocencio, 77, of Skokie, are charged with health care fraud and making false statements in a health care matter. Arraignment for Dr. Leong is set for today at 10:00 a.m. before U.S. District Judge Manish S. Shah, while arraignment for Dr. Inocencio has not yet been scheduled. Their cases are being prosecuted by Assistant U.S. Attorney Stephen Chahn Lee.

Another Illinois case involves a licensed psychiatrist, DR. KIRK HOPKINS, who allegedly earned more than $5.5 million by falsely billing Medicaid and Medicare for psychotherapy services that were never performed. Dr. Hopkins, 44, of Chicago, pleaded not guilty to five counts of wire fraud during his arraignment Wednesday before U.S. District Judge Joan H. Lefkow. A status hearing is set for July 25, 2018, at 9:00 a.m. The case is being prosecuted by Assistant U.S. Attorney Sheri H. Mecklenburg. Substantial investigative assistance was provided by the Illinois State Police Medicaid Fraud Control Bureau – North.

The fourth Illinois physician charged as part of the enforcement action is DR. SYED ATHER, who owned two home-visiting physician companies in Lincolnwood – Mobile Physicians S.C. and M&F Medical Services Ltd. Dr. Ather allegedly billed Medicare for at least $2.8 million of unnecessary and "up-coded" home-physician visits from 2010 to 2018. Dr. Ather, 44, of Lincolnwood, pleaded not guilty to 14 counts of health care fraud during his arraignment Wednesday before U.S. District Judge Matthew F. Kennelly. A status hearing is set for Sept. 24, 2018. The case is being prosecuted by Trial Attorney Leslie S. Garthwaite of the Justice Department’s Criminal Division Fraud Section.

Federal charges were also filed in Illinois against a patient marketer, LINDA HAWKINS, who recruited home-health patients on behalf of at least four agencies in the Chicago area. Hawkins allegedly promoted the services of her home-health agency clients at churches and senior buildings, and received more than $180,000 in bribes and kickbacks from the agencies from 2010 to 2016. An indictment charges Hawkins, of Robbins, with one count of conspiracy to solicit and receive health care kickbacks, and six counts of soliciting and receiving health care kickbacks. She is scheduled to be arraigned today at 1:30 p.m. before U.S. Magistrate Judge Michael T. Mason. The case is being prosecuted by Trial Attorney Patrick Mott of the Justice Department’s Criminal Division Fraud Section.

The owner of a home health agency was also charged as part of the Chicago-area investigations. YURI LUDVINSKY, 55, of Chicago, was charged with three counts of violating the Anti-Kickback Statute, stemming from alleged kickback payments Ludvinsky made to a physician for referring patients to Ludvinsky’s agency. Arraignment in federal court in Chicago has not yet been scheduled. The case is being prosecuted by Assistant U.S. Attorney Nathalina Hudson.

The Medicare Fraud Strike Force operates in nine locations nationwide. Its operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force has charged more than 3,700 defendants who collectively have falsely billed the Medicare program for more than $14 billion.

The public is reminded that charges are merely allegations, and all defendants are presumed innocent until proven guilty.

ROCKFORD — A McHenry man was sentenced today by U.S. District Judge Frederick J. Kapala to 210 months in federal prison, to be followed by five years of supervised release, on child pornography charges. 

Following a four-day jury trial in federal court, MICHAEL L. CHAPARRO, 29, was found guilty on Feb. 2, 2018, of one count of transporting child pornography via the internet, and two counts of accessing child pornography that had crossed state lines, including an image of a prepubescent minor and a minor under 12 years of age, with intent to view the child pornography.

According to the indictment and the evidence at trial, on Aug. 7, 2014, Chaparro knowingly transported to Pennsylvania and Texas materials depicting one or more actual minors engaged in sexually explicit conduct.  In addition, evidence at trial indicated that Chaparro accessed a smart phone on Nov. 24, 2014, and computer hard drive on July 30, 2013, with intent to view child pornography, knowing that one or more persons depicted in an image involved a prepubescent minor or a minor who had not attained 12 years of age.

The sentencing 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 Federal Bureau of Investigation; and Bill Prim, McHenry County Sheriff.  The Illinois Internet Crimes Against Children Task Force assisted in the investigation.

The government was represented by Assistant U.S. Attorneys Michael D. Love and Margaret J. Schneider.

CHICAGO — A financial advisor who told clients they were guaranteed to make money by investing with him has been indicted for allegedly defrauding those clients out of $4.7 million.

DARAYL DAVIS falsely represented to clients that they were guaranteed to receive annual interest payments of at least 6% if they invested with Davis’s two firms, Washington, D.C.-based Financial Assurance Corp. and Los Angeles, Calif.-based Affluent Advisory Group LLC, according to a superseding indictment returned Tuesday in U.S. District Court in Chicago.  Davis also claimed that his clients’ principal investments were protected against losses and that some of the purported investments were backed by a well-known multinational life insurance company, the superseding indictment states.  The charges describe how Davis defrauded some of his 22 victims by causing them to “roll over” their retirement savings into an account controlled by Davis.  In reality, Davis did not invest the funds as promised, and none of the purported investments offered by Davis through FAC and AAG had any affiliation with the life insurance company, the charges allege. 

Instead of investing his clients’ money, Davis spent the money for his own personal benefit, including $706,000 on credit card payments, $476,500 to rent a mansion in Los Angeles, $102,000 on airline tickets, $45,000 on car rentals, $42,500 on membership in an exclusive club, $42,000 on luxury hotels, and $25,000 on theater tickets, the indictment states.  Davis also used the investors’ funds to make Ponzi-type payments to newer investors to conceal the scam, the charges allege.  The alleged fraud scheme began in 2003 and continued until this year.

The indictment charges Davis, 45, of Bowie, Md., with six counts of money laundering, five counts of wire fraud, four counts of mail fraud, and one count of aggravated identity theft.  Arraignment is scheduled for June 28, 2018, at 9:30 a.m., before U.S. District Judge Robert W. Gettleman.

The superseding 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 U.S. Securities and Exchange Commission, which previously filed a civil complaint against Davis. 

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, mail fraud and money laundering is punishable by up to 20 years in prison, while aggravated identity theft carries a mandatory consecutive prison term of two years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

The government is represented by Assistant U.S. Attorney Jennie H. Levin.