Northern District of Illinois
Press releases recorded for this federal judicial district.
Suburban Chicago Police Officer Charged with Covid-Relief FraudRead the Press Release
CHICAGO – A suburban Chicago police officer has been indicted for allegedly fraudulently obtaining Covid-relief loans and concealing the proceeds in his bankruptcy case.
An indictment returned Monday in U.S. District Court in Chicago charges WILLIAM FREDERICK REED, 41, of Hazel Crest, Ill., with making false statements in U.S. Small Business Administration loan applications, bankruptcy fraud, and tax offenses. Arraignment in federal court has not yet been scheduled.
According to the indictment, Reed worked as a police officer in Dolton, Ill., and Robbins, Ill., and was also self-employed as a security guard. In 2020 and 2021, Reed applied for and obtained loans pursuant to the Paycheck Protection Program (“PPP”), which was created by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) to provide financial relief for small businesses during the Covid pandemic. A PPP loan allowed the interest and principal to be forgiven if businesses spent a certain amount of the proceeds on essential expenses, such as payroll. The charges allege that Reed falsely represented in his applications that he was qualified to receive the loans based on inflated and falsified average monthly payrolls for his “off duty security” job. In all, Reed fraudulently obtained three loans, the indictment alleges.
In 2022, Reed filed a Chapter 7 bankruptcy petition in U.S. Bankruptcy Court in Chicago. The indictment alleges that during the bankruptcy case, Reed made false statements and provided false documents to conceal his receipt of the PPP loans and submitted a fraudulent 2021 individual income tax return to cause the U.S. Trustee, the Chapter 7 Trustee, and his creditors not to inquire further into his financial affairs.
The tax charges accuse Reed of underreporting income and falsifying withholdings in his 2021 individual tax return and failing to file any individual returns in 2022 and 2023.
The indictment was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, Ramsey E. Covington, Acting Special Agent-in-Charge of the IRS Criminal Investigation Chicago Field Office, Sheldon Shoemaker, Deputy Inspector General of the SBA’s Office of Inspector General, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Ruth M. Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service. Valuable assistance was provided by the U.S. Trustee Program. The government is represented by Assistant U.S. Attorneys Jason A. Julien and Hayley L. Altabef, and Special Assistant U.S. Attorney Brian P. Netols.
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.
Anyone with information about attempted fraud involving Covid-19 can report it to the Department of Justice by calling the National Center for Disaster Fraud at (866) 720-5721 or by filing an online complaint here.
reed_indictment.pdfMan Pleads Guilty in Federal Court to Three Carjackings in ChicagoRead the Press Release
CHICAGO — A man has pleaded guilty in federal court to carjacking three vehicles at gunpoint in Chicago and shooting one of the victims.
JAMARI EDWARDS admitted in a plea agreement that he carjacked the vehicles in August 2022 in the West Englewood neighborhood of Chicago. The first carjacking occurred in the drive-thru area of a coffee shop, while the other two occurred outside of a convenience store at a gas station. In each of the carjackings, Edwards pointed a gun at the driver and demanded the keys to the car. In the coffee shop carjacking, Edwards shot the driver in the leg after the driver had already given Edwards the key and exited the vehicle. Before shooting the driver, Edwards asked him words to the effect of, “Why are you not scared?”
Edwards, 22, of Chicago, pleaded guilty on Thursday to federal carjacking and firearm charges. The convictions are punishable by a mandatory minimum sentence of 17 years in federal prison and a maximum of life. U.S. District Judge Lindsay C. Jenkins set sentencing for Aug. 12, 2025, at 10:00 a.m.
The guilty plea was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Larry Snelling, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Margaret Steindorf.
edwards_plea_agreement.pdfWalgreens Agrees to Pay up to $350M for Illegally Filling Unlawful Opioid Prescriptions and Submitting False ClaimsRead the Press Release
WASHINGTON — The Justice Department, together with the Drug Enforcement Administration (DEA) and Department of Health and Human Services Office of Inspector General (HHS-OIG), today announced a $300 million settlement with Walgreens Boots Alliance, Walgreen Co., and various subsidiaries (collectively, Walgreens) to resolve allegations that the national chain pharmacy illegally filled millions of invalid prescriptions for opioids and other controlled substances in violation of the Controlled Substances Act (CSA) and then sought payment for many of those invalid prescriptions by Medicare and other federal health care programs in violation of the False Claims Act (FCA). The settlement amount is based on Walgreens’s ability to pay. Walgreens will owe the United States an additional $50 million if the company is sold, merged, or transferred prior to fiscal year 2032.
The government’s complaint, filed on Jan. 16 and amended April 18 in the U.S. District Court for the Northern District of Illinois, alleges that from approximately August 2012 through March 1, 2023, Walgreens, one of the nation’s largest pharmacy chains, knowingly filled millions of unlawful controlled substance prescriptions. These unlawful prescriptions included prescriptions for excessive quantities of opioids, opioid prescriptions filled significantly early, and prescriptions for the especially dangerous and abused combination of three drugs known as a “trinity.” Walgreens pharmacists allegedly filled these prescriptions despite clear red flags indicating a high likelihood that the prescriptions were invalid because they lacked a legitimate medical purpose or were not issued in the usual course of professional practice.
The complaint further alleges that Walgreens pressured its pharmacists to fill prescriptions quickly and without taking the time needed to confirm that each prescription was lawful. Walgreens’s compliance officials also allegedly ignored substantial evidence that its stores were dispensing unlawful prescriptions and even intentionally deprived its own pharmacists of crucial information, including by refusing to share internal data regarding prescribers with pharmacists and preventing pharmacists from warning one another about certain problematic prescribers.
In light of the settlement, the United States has moved to dismiss its complaint. Walgreens will also move to dismiss a related declaratory judgment action filed in U.S. District Court for the Eastern District of Texas.
“Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit,” said Attorney General Pamela Bondi. “This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction.”
“This settlement resolves allegations that, for years, Walgreens failed to meet its obligations when dispensing dangerous opioids and other drugs,” said Deputy Assistant Attorney General Michael Granston of the Justice Department’s Civil Division. “We will continue to hold accountable those entities and individuals whose actions contributed to the opioid crisis, whether through illegal prescribing, marketing, dispensing or distributing activities.”
“Importantly, Walgreens’s agreements with the DEA and HHS-OIG provide swift relief in the form of monitoring and claims review that will improve Walgreens’s practices immediately,” said U.S. Attorney Andrew S. Boutros for the Northern District of Illinois. “Our office will continue to work with our law enforcement partners to ensure that opioids are properly dispensed and that taxpayer funds are only spent on legitimate pharmacy claims.”
“This landmark civil settlement is the largest Controlled Substances Act resolution in our district’s history and once again confirms the high priority our office has placed upon confronting those responsible for the opioid crisis here,” said U.S. Attorney Gregory W. Kehoe for the Middle District of Florida. “We are grateful for the energy and collaborative spirit brought to this effort by our colleagues in the DEA, the Department of Justice Civil Frauds Section and Consumer Protection Branch, and the United States Attorneys’ Offices for the Northern District of Illinois, District of Maryland, Eastern District of New York, and Eastern District of Virginia.”
“With the power to dispense potentially harmful substances comes the responsibility to ensure that every prescription is legitimate before it is filled,” said U.S. Attorney Kelly O. Hayes for the District of Maryland. “When pharmacies fail that responsibility, this office will work with others across the country to hold accountable those who put patients and communities at risk.”
“This settlement holds Walgreens accountable for failing to comply with its critical responsibility to prevent the diversion of opioids and other controlled substances,” said U.S. Attorney John J. Durham for the Eastern District of New York. “The settlement also underscores our office’s continued commitment to ensure that all persons and businesses that fill controlled-substance prescriptions adhere to the requirements of the Controlled Substances Act that are designed to prevent highly addictive medications from being used for illegitimate purposes.”
“Strict compliance with the law is essential to safeguarding the public, who rely on carefully considered and limited prescriptions for their health and wellbeing,” said U.S. Attorney Erik S. Siebert for the Eastern District of Virginia. “Those companies and individuals authorized to provide controlled substances have a professional responsibility to ensure that the prescriptions they fill are within the course of professional practice and regulations. Medically unnecessary prescriptions are a cost ultimately borne by the taxpayers and consumers. As we continue to address the opioid crisis here in Virginia and across the nation, we are determined to ensure pharmacies and pharmacists operate within the law.”
In addition to the monetary payments announced today, Walgreens has entered into agreements with DEA and HHS-OIG to address its future obligations in dispensing controlled substances. Walgreens and DEA entered into a memorandum of agreement that requires the company to implement and maintain certain compliance measures for the next seven years. Walgreens must maintain policies and procedures requiring pharmacists to confirm the validity of controlled substance prescriptions prior to dispensing controlled substances, provide annual training to pharmacy employees regarding their legal obligations relating to controlled substances, verify that pharmacy staffing is sufficient to enable pharmacy employees to comply with those legal obligations, and maintain a system for blocking prescriptions from prescribers whom Walgreens becomes aware are writing illegitimate controlled substance prescriptions. Walgreens has also entered into a five-year Corporate Integrity Agreement with HHS-OIG, which further requires Walgreens to establish and maintain a compliance program that includes written policies and procedures, training, board oversight, and periodic reporting to HHS-OIG related to Walgreens’s dispensing of controlled substances.
“Pharmacies have an obligation to ensure that every prescription for highly addictive controlled substances is legitimate and issued responsibly in compliance with the Controlled Substances Act,” said DEA Acting Administrator Derek Maltz. “When one of the nation's largest pharmacies fails at this obligation, they jeopardize the health and safety of their customers and place the American public in danger. The DEA remains committed to protecting all Americans from unscrupulous practices that prioritize profit over patient safety.”
“Pharmacies that neglect their legal duties and their critical role in delivering safe and appropriate medications to enrollees of federal health care programs, and instead exploit these programs for market advantage, squander taxpayer dollars and put patient safety at risk,” said Acting Inspector General Juliet T. Hodgkins of HHS-OIG. “HHS-OIG and our law enforcement partners will use every tool in our arsenal to prevent these outcomes. This settlement and corporate integrity agreement reflect HHS-OIG’s commitment to ensuring compliance, correcting failures in oversight, and protecting the foundation of federally-funded health care.”
“In the midst of the opioid crisis that has plagued our nation, we rely on pharmacies to prevent not facilitate the unlawful distribution of these potentially harmful substances,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General at OPM OIG. “We applaud our investigative staff, law enforcement partners, and partners at the Department of Justice for their hard work and unwavering commitment to protecting patients from harm.”
The civil settlement resolves four cases brought under the qui tam, or whistleblower, provisions of the FCA by former Walgreens employees. The FCA authorizes whistleblowers to sue on behalf of the United States and receive a share of any recovery. It also permits the United States to intervene and take over such lawsuits, as it did here. The relators will receive a 17.25% share of the government’s FCA recovery in this matter.
The United States’ pursuit of this matter underscores the government’s commitment to combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS-OIG, at 800-HHS-TIPS (800-447-8477).
The DEA, HHS-OIG, Defense Criminal Investigative Service, Defense Health Agency (DHA), Office of Personnel Management (OPM), Department of Labor (DOL) Office of Inspector General, Department of Veterans Affairs (VA), Office of Inspector General, FBI Chicago Field Office, and the U.S. Attorneys’ Offices for the District of Colorado, Southern District of California, Eastern District of California, Northern District of California, Eastern District of Washington, Southern District of Alabama, Southern District of Illinois, Central District of Illinois, District of Arizona, Western District of Texas, Northern District of Texas, District of Puerto Rico, and Eastern District of Louisianaprovided substantial assistance in the investigation.
The United States is represented in this matter by attorneys from the Justice Department’s Civil Division Consumer Protection Branch (Assistant Director Amy DeLine and Trial Attorney Nicole Frazer) and Commercial Litigation Branch, Fraud Section (Assistant Director Natalie Waites and Trial Attorney Joshua Barron), as well as from the U.S. Attorneys’ Offices for the Northern District of Illinois (Assistant U.S. Attorney Valerie R. Raedy), Middle District of Florida (Chief of the Civil Division Randy Harwell and Assistant U.S. Attorney Carolyn Tapie), District of Maryland (Chief of the Civil Division Thomas Corcoran), Eastern District of New York (Assistant U.S. Attorney Elliot M. Schachner) and Eastern District of Virginia (Assistant U.S. Attorney John Beerbower). Fraud Section senior financial analyst Karen Sharp provided support for the matter.
The claims asserted against defendants are allegations only and there has been no determination of liability.
walgreens_settlement.pdfRockford Man Sentenced to Eight Years in Prison for Illegally Possessing FirearmRead the Press Release
ROCKFORD — A federal judge has sentenced a Rockford man to eight years in prison for illegally possessing a firearm.
CHARLES JACKSON, 26, pleaded guilty earlier this year to a charge of illegal possession of a firearm by a previously convicted felon. U.S. District Judge Iain D. Johnston imposed the sentence during a hearing on Friday in federal court in Rockford.
Jackson admitted in a plea agreement that in May 2022, while fleeing from the Rockford Police Department, he possessed a modified handgun loaded with 25 rounds of ammunition, including one in the chamber. As a previously convicted felon, Jackson was prohibited by federal law from possessing a firearm.
The sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Christopher Amon, Special Agent-in-Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. The government was represented by Assistant U.S. Attorney Theodora Anderson.
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN). In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Georgia Man Charged with Sending Threatening Letter to Spiritual Mission in Suburban ChicagoRead the Press Release
CHICAGO — A Georgia man has been charged with sending a threatening letter to a spiritual mission in suburban Chicago.
A criminal complaint filed in U.S. District Court in Chicago charges JIMIL PARMAR, 33, of Lawrenceville, Ga., with one count of mailing a threatening communication. Parmar was arrested last week in the Northern District of Georgia. A preliminary hearing is scheduled for May 2, 2025, in U.S. District Court in Atlanta.
According to the complaint, Parmar mailed a letter in July 2023 to the Sant Nirankari Mission in West Chicago, Ill. The letter stated, “CANCEL US CANADA TOUR IMMIDIATELY [sic] SRS ATTACK PLANNED,” the complaint states. The threat coincided with a visit by the Mission’s spiritual leader, Satguru Mata Sudiksha Ji Maharaj, who was touring the United States and Canada that summer and had appearances scheduled in the Chicago and Atlanta areas.
At least four other Sant Nirankari Missions in the United States that month received what appeared to be identical letters, the complaint states. The federal investigation is being led by the FBI and remains active.
The complaint and arrest were announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Atlanta Field Office of the FBI. The government is represented by Assistant U.S. Attorney Kavitha J. Babu.
“When a threat of mass violence occurs, our Office will find, arrest, and prosecute those responsible to the fullest extent of the law,” said U.S. Attorney Boutros. “This case demonstrates our Office’s commitment to hold accountable those who seek to intimidate and instill fear in members of our community.”
“The subject’s alleged actions serve as a disturbing reminder of the hatred that many marginalized people encounter simply because of their beliefs,” said FBI SAC DePodesta. “We extend our appreciation to the FBI Atlanta Field Office and all of our dedicated law enforcement partners who work tirelessly to apprehend those who dare to threaten the safety of our communities.”
The charge in the complaint is punishable by up to five years in federal prison. 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.
parmar_complaint.pdfSuburban Chicago Man Charged with Preparing and Filing More Than 50 Fraudulent Tax ReturnsRead the Press Release
CHICAGO — A suburban Chicago man has been charged in federal court with preparing and filing more than 50 fraudulent tax returns for himself and others.
An indictment returned Tuesday in U.S. District Court in Chicago accuses CEDRICK TAYLOR of preparing and assisting in the preparation of 45 individual tax returns on behalf of numerous individuals for the calendar years 2018 to 2023. Taylor helped prepare returns that fraudulently overstated and misrepresented tax credits, deductions, and expenses in order to fraudulently reduce the individuals’ tax liabilities and claim refund amounts to which they were not entitled, the indictment states. Taylor also filed several individual tax returns for himself that misrepresented tax credits and underreported his income, the indictment alleges.
Taylor, 40, of Winfield, Ill., is charged with 45 counts of willfully preparing a false tax return for others and six counts of filing false tax returns for himself. Each count is punishable by up to three years in federal prison. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, Ramsey Covington, Acting Special Agent-in-Charge of IRS Criminal Investigation in Chicago, and Douglas S. DePodesta, Special Agent-in-Charge of the FBI Chicago Field Office. The government is represented by Assistant U.S. Attorney Jeffrey Snell.
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.
taylor_indictment.pdfIranian National Indicted for Operating Online Marketplace Offering Fentanyl and Money Laundering ServicesRead the Press Release
A federal grand jury has charged Behrouz Parsarad, an Iranian national, for his role as the founder and operator of Nemesis Market, a dark web marketplace for illegal drugs and criminal cyber-services, such as stolen financial information, fraudulent identification documents, counterfeit currencies, and computer malware.
According to the indictment, Parsarad, 36, of Tehran, launched Nemesis Market on the dark web in March 2021. At its peak, Nemesis Market had over 150,000 users and more than 1,100 vendor accounts registered worldwide. Between 2021 and 2024, Nemesis Market processed more than 400,000 orders. Of these, more than 55,000 orders were categorized as orders for stimulants, including methamphetamine, cocaine, cocaine base (crack cocaine), and other controlled substances. An additional 17,000 orders were categorized as orders for opioids, including fentanyl, heroin, and oxycodone. Certain substances covertly purchased by the government from Nemesis were confirmed by laboratory reports to be mixtures and substances containing fentanyl, a Schedule II controlled substance, and/or acetylfentanyl, heroin, and/or protonitazene, each a Schedule I controlled substance.
“The allegations in this indictment span over four hundred thousand transactions involving fentanyl, other dangerous drugs, and a wide range of contraband made accessible on the darknet for more than three years,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “Through cooperation with German and Lithuanian partners, the alleged administrator of this marketplace has been charged, servers and other infrastructure have been seized, and dangerous drugs and other contraband have been stopped from entering the United States. This case demonstrates the Department’s tireless commitment to protecting U.S. communities from the harms caused by fentanyl and darknet marketplaces and pursuing accountability for those who would endanger our communities no matter where they are located.”
“Anyone who tries to profit from the sale of illegal drugs - whether it’s on the streets or online – will face consequences. Whether you sell or help others sell these dangerous drugs, you will be held accountable,” said Acting U.S. Attorney Carol M. Skutnik for the Northern District of Ohio. “I want to acknowledge the excellent investigative work of our federal agency partners here in Ohio who helped us to bring the charges in this case. Together, we remain committed to keeping our neighborhoods safe and our streets free from illegal narcotics.”
“This indictment, made possible by the assistance of our German and Lithuanian allies, underscores the importance of global partnerships and international collaboration,” said FBI Cleveland Acting Special Agent in Charge Charles Johnston. “Nemesis Market, through the darknet, was a borderless powerhouse of criminal activity that not only fueled the drug epidemic, but also a multitude of illegal acts with the capacity to harm our citizens and destroy our communities. The FBI stands firm in its commitment to identify and investigate unlawful individuals and dismantle their networks operating with criminal intent.”
Parsarad is charged with conspiracy to distribute controlled substances and distribution of controlled substances in the Northern District of Ohio and elsewhere. In addition, Parsarad is also charged with money laundering conspiracy for both using proceeds to promote illegal drug dealing and for offering money laundering services through Nemesis Market by mixing cryptocurrencies used to pay for goods and services to obscure their origins. Nemesis users were not allowed to conduct transactions in official, government-backed currencies.
On March 20, 2024, U.S. law enforcement, in cooperation with German and Lithuanian authorities, seized Nemesis Market and blocked the flow of these drugs into the United States and elsewhere. In March 2025, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions against Parsarad for his role as the administrator of Nemesis Market. According to OFAC, Nemesis Market facilitated the sale of nearly $30 million worth of drugs between 2021 and 2024.
If convicted, Parsarad faces a mandatory minimum penalty of 10 years in federal prison and a maximum penalty of life.
The FBI Cleveland Field Office is investigating the case with assistance from the DEA and IRS-CI in Chicago. The Justice Department’s Office of International Affairs and Cybercrime Liaison Prosecutor to Eurojust provided significant assistance.
Trial Attorney Gaelin Bernstein of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Segev Phillips for the Northern District of Ohio are prosecuting the case, with substantial assistance from the U.S. Attorneys Offices for the Northern District of Illinois and District of Massachusetts.
This case was investigated as part of an FBI-led interagency Joint Criminal Opioid and Darknet Enforcement (J-CODE) operation. J-CODE brings together experts from the DEA, the Postal Inspection Service, Homeland Security Investigations, as well as the Department of Defense and the Customs and Border Protection, along with the FBI. The Justice Department appreciates the cooperation and significant assistance provided by law enforcement partners in the British Virgin Islands, Germany, Lithuania, and Türkiye.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Rockford Man Sentenced to Eight and a Half Years in Prison for Illegally Possessing FirearmsRead the Press Release
ROCKFORD — A Rockford man has been sentenced to eight and a half years in federal prison for illegally possessing firearms.
JOSEPH GARZA, 40, pleaded guilty last year to two counts of possession of a firearm by a prohibited person. U.S. District Judge Iain D. Johnston imposed the sentence on Monday during a hearing in federal court in Rockford.
Garza admitted in a plea agreement that in 2017 and 2018 he illegally possessed and sold seven firearms, utilizing two co-defendants as brokers for the sales. Garza set the price for the firearm sales and delivered the guns to the co-defendants, who then conducted the sales with the buyer, who was working as a confidential informant for the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Christopher Amon, Special Agent-in-Charge of the ATF Chicago Field Division. The government was represented by Assistant U.S. Attorney Robert S. Ladd.
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN). In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Fourth Member of Alleged Chicago Robbery Crew Ordered Detained in Federal Custody Pending TrialRead the Press Release
CHICAGO — The fourth member of a robbery crew allegedly responsible for violently robbing multiple liquor stores, convenience stores, and bars in Chicago has been ordered detained in federal custody pending trial.
XAVIER HARRIS, 26, of Chicago, conspired with his brother and two others to rob or attempt to rob more than a dozen Chicago businesses in 2023 and 2024, according to charges unsealed last month in U.S. District Court in Chicago. In three of the robberies, Xavier Harris brandished a gun and pistol-whipped victims, including the cashier of a liquor store in Chicago’s Jefferson Park neighborhood, according to a government memorandum filed in support of Xavier Harris’s detention.
Xavier Harris was arrested last month. Over the government’s objection, a federal Magistrate Judge ordered him released on an unsecured $10,000 appearance bond and location monitoring. The U.S. Attorney’s Office appealed the release to U.S. District Judge Andrea R. Wood, who on Monday ordered Xavier Harris to remain detained without bond pending trial.
The three other defendants – Xavier Harris’s brother, ARDARIES HARRIS, 27, of Chicago, JORDAN FOX, 25, of Chicago, and ROOSEVELT VEAL, 27, of Rockford, Ill. – were previously ordered detained without bond while they await trial. All four defendants have pleaded not guilty to conspiracy, robbery, attempted robbery, and firearm charges. The maximum sentence for each of the defendants is life in federal prison. Ardaries Harris, Fox, and Veal each face mandatory minimum sentences of thirty years, while Xavier Harris faces a mandatory minimum of 21 years.
A full list of the 15 robberies and attempted robberies can be found here.
The detention order was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Larry Snelling, Superintendent of the Chicago Police Department. Valuable assistance was provided by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago, the Illinois State Police, and the U.S. Marshals Service’s Great Lakes Regional Task Force.
This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to protect our communities from the perpetrators of violent crime. The case was also conducted in coordination with ATF’s Crime Gun Intelligence Center of Chicago (CGIC), a centralized law enforcement hub that focuses exclusively on investigating and preventing gun violence in Chicago and throughout northern Illinois.
“The nature and circumstances of these serious offenses and the weight of the evidence demonstrate the danger posed to the community by Xavier Harris if he is released,” Assistant U.S. Attorneys Emily C.R. Vermylen and Stephanie Stern argued in the government’s detention memorandum. “Xavier Harris committed these robberies with absolutely no regard for human life or human safety.”
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Chicago Real Estate Broker Sentenced to More Than Four Years in Prison for Bilking Investors out of More Than $3 MillionRead the Press Release
CHICAGO — A Chicago real estate broker has been sentenced to more than four years in federal prison for orchestrating a fraud scheme that bilked at least four investors out of more than $3 million.
STANISLAV SANNIKOV, also known as “Steve Sannikov,” owned and operated Chestnut Realty Group, a real estate company in Chicago. From 2016 to 2020, Sannikov fraudulently claimed to investors that certain properties were for sale and that he could negotiate the purchase on their behalf. Sannikov further claimed that the properties could be re-sold or leased for a substantial profit. In reality, Sannikov knew that the properties were not available for sale or lease. Sannikov induced the victim investors to deposit earnest money into what he told them was an escrow account maintained by Chestnut Realty. In fact, Sannikov knew that Chestnut Realty was not licensed to act as an escrow agent and that the account was actually a checking account controlled by Sannikov.
Sannikov withdrew the investor funds and spent the money on his own lavish lifestyle. One victim, who is now in his 70s, had to put off retirement so that he could pay off his losses.
Sannikov, 42, of Chicago, pleaded guilty last year to a federal wire fraud charge. On Friday, U.S. District Joan Humphrey Lefkow ordered Sannikov to pay $2.19 million in remaining restitution to four victims. Judge Lefkow in February sentenced Sannikov to four years and two months in prison.
The sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the FBI Chicago Field Office.
“This was not a one-time lapse in judgment,” Assistant U.S. Attorney Sheri H. Mecklenburg argued in the government’s sentencing memorandum. “Defendant, over the course of at least four years, designed and engaged in a calculated, sustained, multi-faceted scheme to defraud multiple individuals.”
Andrew S. Boutros Takes Oath of Office as United States Attorney for the Northern District of IllinoisRead the Press Release
CHICAGO — Andrew S. Boutros, who served as a federal prosecutor in Chicago for nearly eight years before entering private law practice, took the Oath of Office today as the United States Attorney for the Northern District of Illinois.
U.S. District Chief Judge Virginia M. Kendall administered the Oath of Office after Attorney General Pamela Bondi appointed Mr. Boutros as the United States Attorney. Mr. Boutros signed the Oath of Office this morning.
“I am humbled and honored to lead the U.S. Attorney’s Office in Chicago,” said U.S. Attorney Boutros. “I am grateful to President Donald J. Trump, Attorney General Bondi, as well as the many others involved in my selection for their trust and confidence in me. As U.S. Attorney, I am committed to working alongside old and new colleagues to tackle the important problems that face our District. In addition, I look forward to working with our law enforcement partners to continue the Office’s longstanding tradition of pursuing justice on behalf of the citizens of the Northern District of Illinois.”
Mr. Boutros has selected Morris Pasqual, who for the past two years served as Acting United States Attorney, to be the Office’s First Assistant United States Attorney, a leadership role Mr. Pasqual previously held.
As an Assistant U.S. Attorney from 2008 to 2015, U.S. Attorney Boutros investigated and prosecuted hundreds of cases, many of which involved matters of national and international significance. U.S. Attorney Boutros’s notable convictions included the world’s largest online drug trafficker on the dark web, one of the country’s “Top Ten Most Wanted” mortgage fraud defendants, and the owner of a Chicago hospital who thwarted collection of more than $188 million in civil judgments. U.S. Attorney Boutros also successfully prosecuted a series of cases involving unprecedented criminal violations of international trade, customs, and anti-dumping laws.
U.S. Attorney Boutros received numerous awards and accolades for his work as a federal prosecutor. The Federal Law Enforcement Officers Association selected him as the National Prosecutor of the Year, presenting him with the National Prosecutorial Award. The American Bar Association honored U.S. Attorney Boutros with the Criminal Justice Section’s Norm Maleng Minister of Justice Award for best exemplifying the prosecutor’s duty to seek justice. U.S. Attorney Boutros also received honors from the FBI, U.S. Department of Homeland Security, and U.S. Customs and Border Protection.
From 2015 until his appointment as United States Attorney, U.S. Attorney Boutros worked in private law practice in Chicago, holding various leadership roles. For 15 consecutive years, U.S. Attorney Boutros has taught an advanced criminal law course at the University of Chicago Law School. While practicing law full time, Mr. Boutros has also written and spoken extensively on criminal law and criminal law adjacent topics, including publishing two books, authoring nearly 160 articles and book chapters, and presenting at 90 speaking engagements.
U.S. Attorney Boutros earned a bachelor’s degree, summa cum laude, from Virginia Tech, and his law degree from the University of Virginia School of Law.
Federal Indictment Charges Two Men with Assaulting and Robbing U.S. Postal Service Mail Carrier in ChicagoRead the Press Release
CHICAGO — A federal grand jury has indicted two men for allegedly assaulting and robbing a U.S. Postal Service mail carrier in Chicago.
KYLER REESE and CHAUN ALLEN robbed the mail carrier on Nov. 16, 2022, according to an indictment unsealed today in U.S. District Court in Chicago. The pair arrived at the robbery scene in a stolen vehicle they had obtained the day before, the indictment states. Reese got out of the vehicle, pointed a gun at the mail carrier, and demanded the carrier’s USPS keys and mail bag, the indictment states. The firearm was equipped with a “switch” device, making it capable of firing multiple rounds with a single pull of the trigger. Reese and Allen then fled in the stolen vehicle.
The indictment charges Reese, 21, and Allen, 22, both of Chicago, with conspiracy, robbery of a mail carrier, and brandishing a firearm during a crime of violence. The charges are punishable by a mandatory minimum sentence of seven years in federal prison and a maximum of life.
Reese was arrested this week in Arizona. A detention hearing for Reese is set for April 7, 2025, in U.S. District Court for the District of Arizona. Allen was arrested last month in Chicago and has been ordered to remain detained in federal custody pending trial.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Ruth Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service. Valuable assistance was provided by the Chicago Police Department and the U.S. Attorney’s Office for the District of Arizona. The government is represented by Assistant U.S. Attorney Sushma Raju.
“U.S. Postal Service employees delivering mail to the American people must be allowed to do so safely and securely,” said Acting U.S. Attorney Pasqual. “Individuals who use violence against postal carriers to gain access to the public's mail must be held accountable.”
“This indictment is another example of the roles Postal Inspectors and our law enforcement partners play in protecting Postal Service employees and customers,” said Inspector-in-Charge Mendonça. “As Postal Service employees continue to play an integral role in our communities, we are clear in our resolve to aggressively investigate anyone who brings harm to these invaluable public servants.”
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
reese_et_al_indictment.pdfSuperseding Indictment Charges Fourth Member of Robbery Crew Allegedly Responsible for Eight-Month Robbery Spree in ChicagoRead the Press Release
CHICAGO — A federal superseding indictment unsealed today charges a fourth member of a robbery crew allegedly responsible for violently robbing multiple liquor stores, convenience stores, and bars in Chicago.
XAVIER HARRIS conspired with his brother, ARDARIES HARRIS, and JORDAN FOX and ROOSEVELT VEAL to rob more than a dozen Chicago businesses in 2023 and 2024, according to the superseding indictment unsealed today in U.S. District Court in Chicago. The robbers used stolen cars as getaway vehicles, wore masks, and brandished firearms in the heists. In some of the robberies, members of the crew fired shots from machine guns, the indictment states.
Ardaries Harris, 27, of Chicago, Fox, 25, of Chicago, and Veal 27, of Rockford, Ill., were originally charged last year with conspiracy, robbery, and firearm offenses in connection with five robberies or attempted robberies. The superseding indictment adds Xavier Harris as a defendant, charges ten additional robberies or attempted robberies, and raises the mandatory minimum sentence for Ardaries Harris, Fox, and Veal to thirty years each. Xavier Harris faces a mandatory minimum sentence of 21 years. The maximum sentence for each of the defendants is life in prison.
Xavier Harris, 26, of Chicago, was arrested on Thursday. He was arraigned today in federal court and pleaded not guilty to the charges in the superseding indictment. The three other defendants were already in federal custody and will be arraigned at a later date.
According to the superseding indictment, the defendants conspired to commit the following robberies or attempted robberies in Chicago:
- Aug. 24, 2023: Ace’s Liquor and Tap, 4400 block of West Armitage Avenue.
- Nov. 24, 2023: Super Saving Food, 4400 block of West Belmont Avenue.
- Jan. 10, 2024: A&R Food Mart, 5900 block of West Grand Avenue.
- Jan. 11, 2024: Central Extra Value Food and Liquor, 2900 block of North Central Avenue.
- Jan. 13, 2024: Buchanas Food & Liquor, 1800 block of West 47th Street.
- Jan. 15, 2024: Mr. P Beverage Depot, 2000 block of West Division Street.
- Jan. 15, 2024: Before You Go Liquor, 1900 block of West Fullerton Avenue.
- Jan. 15, 2024: Clybourn Market, 2800 block of North Clybourn Avenue.
- May 3, 2024: Humboldt Haus Liquor, 2900 block of West North Avenue.
- May 3, 2024: Gladstone Food Mart, 5700 block of North Milwaukee Avenue.
- May 4, 2024: Irish Nobleman Pub, 1300 block of West Erie Street.
- May 7, 2024: Buchanas Food & Liquor, 1800 block of West 47th Street.
- May 7, 2024: El Trebol Liquors and Bar, 1100 block of West 18th Street.
- May 7, 2024: Community Food and Liquor, 5500 block of North Milwaukee Avenue.
- May 9, 2024: Basil Food & Liquor, 7700 block of North Western Avenue.
The superseding indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Larry Snelling, Superintendent of the Chicago Police Department. Valuable assistance was provided by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago, the Illinois State Police, and the U.S. Marshals Service’s Great Lakes Regional Task Force. The government is represented by Assistant U.S. Attorneys Emily C.R. Vermylen and Stephanie Stern.
This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to protect our communities from the perpetrators of violent crime. The case was also conducted in coordination with ATF’s Crime Gun Intelligence Center of Chicago (CGIC), a centralized law enforcement hub that focuses exclusively on investigating and preventing gun violence in Chicago and throughout northern Illinois.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
harris_et_al_superseding_indictment.pdfFederal Jury Convicts Chicago Man of Sex Trafficking and Kidnapping OffensesRead the Press Release
CHICAGO — A federal jury has convicted a Chicago man of violently sex trafficking five young victims, including a 15-year-old girl, and kidnapping two of them.
The jury in U.S. District Court in Chicago on Tuesday convicted DENNIS WILLIAMS, 33, on all seven sex trafficking and kidnapping counts against him. Williams faces a mandatory minimum sentence of 15 years in federal prison and a maximum of life. U.S. District Judge Mary M. Rowland set sentencing for Oct. 7, 2025.
The convictions were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Chicago Police Department and the Lansing, Ill. Police Department. The government has been represented by Assistant U.S. Attorneys Kristen Totten, Sushma Raju, and Michelle Parthum.
According to evidence presented at the week-long trial, Williams used threats, violence, drugs, and other coercive means to force five victims to engage in commercial sex. Williams often restrained or assaulted the victims to force them to comply and turn over the proceeds to him. Williams also caused a 17-year-old girl, whom he also assaulted repeatedly, to assist him in trafficking the victims. Williams operated his sex trafficking operation in 2022 and 2023 out of his Chicago residence and motels in Lansing, Ill.
On Aug. 2, 2022, Williams kidnapped one of his victims by luring her inside his truck and abruptly driving away. The victim escaped by leaping from the moving vehicle.
On Jan. 10, 2023, Williams kidnapped another of his victims by confining her to his closet overnight and then forcing her to engage in commercial sex with strangers. The victim escaped by jumping out of a second-floor window and running a quarter mile to a Chicago Public Library branch.
All five of Williams’ victims, including both of the kidnapping victims, testified about their ordeals at trial.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Chicago Businessman Sentenced to Five Years in Prison for Defrauding Financial Institutions out of More Than $3 MillionRead the Press Release
CHICAGO — A Chicago businessman has been sentenced to five years in federal prison for scheming to defraud multiple financial institutions out of more than $3 million.
DAVID IZSAK, 50, of Chicago, was a licensed real estate professional and the sole proprietor of Skokie, Ill.-based Premier Assets Inc. and Premier Properties Enterprises, Inc. From 2005 to 2018, Izsak engaged in a scheme to defraud financial institutions by obtaining residential loans through false statements, concealing other unpaid loans, and falsely obtaining credit. As part of the scheme, Izsak submitted or caused to be submitted to the Cook County Recorder of Deeds fictitious lien releases that purported to be from lenders stating the loans were paid in full. The bogus lien releases included false names of attorneys and bank employees. In one instance, after causing a lien to be released, Izsak sold the property to an unsuspecting buyer. In another instance, he obtained six mortgages on a single property, obtaining a new loan after fictitiously releasing the prior loan without repaying it.
Izsak also obtained a loan to buy a 57-foot yacht known as the “Flying Lady” by submitting fraudulent tax returns and financial information to the lender. The yacht was seized by federal authorities in 2019.
A jury in U.S. District Court in Chicago in 2023 convicted Izsak on ten counts of financial institution fraud. U.S. District Judge Manish S. Shah imposed the prison sentence on Tuesday during a hearing in federal court.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the FBI Chicago Field Office, and Ruth M. Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.
“Izsak engaged in blatantly fraudulent conduct for many years,” Assistant U.S. Attorney Elly Moheb argued in the government’s sentencing memorandum. “The entire purpose of the scheme was to line his own pockets, so that he could live a lifestyle he didn’t earn.”
Two other individuals – YALE SCHIFF, of Riverwoods, Ill., and his brother, JASON SCHIFF, of Lincolnwood, Ill. – were also convicted as part of the federal investigation. Yale Schiff was sentenced in January to three years in prison for fraudulently obtaining millions of dollars in mortgage and vehicle loans and using stolen identities to secure credit from financial institutions. Jason Schiff pleaded guilty to causing a false report and statement to be made to the U.S. Department of Housing and Urban Development. Jason Schiff was sentenced to three years of probation.
Federal Law Enforcement in Chicago Seizes $214 Million in Alleged “Pump and Dump” Investment Fraud Investigation; Seven Defendants IndictedRead the Press Release
CHICAGO — Seven individuals have been indicted on criminal charges as part of a federal investigation that disrupted an alleged “pump-and-dump” investment fraud scheme and resulted in government seizures of approximately $214 million.
From November 2024 to February 2025, the defendants engaged in misleading promotion and coordinated trading of shares of China Liberal Education Holdings, Ltd., a company incorporated in the Cayman Islands that purported to provide educational services in China, according to an indictment returned Thursday in U.S. District Court in Chicago. The scheme, known as a “pump-and-dump,” allegedly involved individuals in China posing as U.S.-based investment advisors on social media and messaging platforms and falsely promising significant returns from investments in the company. The misleading promotion and coordinated trading caused the stock price to artificially rise, at which point the defendants sold thousands of shares and made millions of dollars in profits, the indictment states. The stock price ultimately decreased significantly, at the expense of other investors, some of whom lost almost the entirety of their investment.
Charged with wire fraud and securities fraud are LIM XIANG JIE CEDRIC, 50, of Malaysia, MING-SHEN CHENG, 36, of Taiwan, KO SEN CHAI, 57, of Malaysia, KING SUNG WONG, 39, of Malaysia, SIONG WEE VUN, 37, of Malaysia, CHIEN LUNG MA, 54, of Taiwan, and KOK WAH WONG, 56, of Malaysia. The defendants are not in custody and warrants have been issued for their arrests.
During the investigation, federal law enforcement seized approximately $214 million in alleged proceeds from the fraud scheme. The funds are currently in U.S. custody. The U.S. Attorney’s Office in Chicago on Thursday filed a civil complaint seeking to have the money permanently forfeited to the United States, which would allow the government to return the money to victim investors.
The indictment and forfeiture complaint were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Boston Regional Office of the U.S. Securities and Exchange Commission and the SEC’s Office of Inspector General. Assistant U.S. Attorney Jared Hasten represents the government.
Each count of securities fraud is punishable by up to 25 years in federal prison, while the maximum sentence for each count of wire fraud is 20 years. The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
If you believe you or someone you know may have been victimized by the fraud scheme charged in the indictment, you are encouraged to notify the FBI by completing this online form or calling 1-800-CALL-FBI (1-800-225-5324).
cedric_et_al_forfeiture_complaint.pdf cedric_et_al_indictment.pdfFormer Employee of Augusta National Golf Club Sentenced to a Year in Prison for Stealing Masters Golf Tournament Merchandise and MemorabiliaRead the Press Release
CHICAGO — A former employee of the Augusta National Golf Club in Georgia was sentenced today to a year in federal prison for stealing millions of dollars’ worth of Masters golf tournament merchandise and memorabilia and selling it to online brokers.
RICHARD BRENDAN GLOBENSKY, 40, of Evans, Ga., pleaded guilty last year in U.S. District Court in Chicago to a federal charge of transporting and transferring stolen goods in interstate commerce. In addition to the prison term, U.S. District Judge Sharon Johnson Coleman today ordered Globensky to pay $3,448,842 in restitution to Augusta National.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the FBI’s Art Crime Team.
Globensky admitted in a plea agreement that he stole the merchandise and memorabilia from 2009 to 2022 while he was employed by the club as a warehouse assistant. The merchandise included Masters shirts, hats, flags, watches, and other goods, while the memorabilia included historically significant items, such as the Green Jackets awarded to tournament winners Arnold Palmer, Gene Sarazen, and Ben Hogan. Globensky sold the merchandise to an online broker in Florida for a total of approximately $5.3 million. He sold the historically significant memorabilia to the same broker, as well as to the broker’s associate, for nearly $300,000. The brokers later re-sold the stolen merchandise and memorabilia, often at significant markups from the amounts paid to Globensky. At least one of the stolen items was purchased by a collector in Chicago.
During the last six years of the crime, Globensky spent more than $370,000 to purchase five vehicles and a motorboat, as well as more than $160,000 for Walt Disney-themed vacations and related activities. Globensky also spent nearly $600,000 on construction of a custom-built residence in Georgia and approximately $32,000 at luxury retailer Louis Vuitton.
“The funds Globensky obtained enabled him and his spouse to live a lifestyle far beyond their means,” Assistant U.S. Attorney Brian Hayes argued in the government’s sentencing memorandum. “The manner in which he spent the proceeds suggests greed was his primary motivation for committing the offense.”
Stephenson County, Ill. Man Indicted for Sexual Exploitation of ChildrenRead the Press Release
ROCKFORD — A Stephenson County, Ill. man was indicted on Tuesday by a federal grand jury in Rockford for sexual exploitation of children.
COLLIN T. ZIER, 39, of Lena, Ill., was charged with one count of producing child pornography, one count of transporting child pornography, one count of receiving child pornography, and one count of possessing child pornography.
The count of producing child pornography carries a mandatory minimum sentence of 15 years in federal prison and a maximum of 30 years. The counts of transporting and receiving child pornography each carry a mandatory minimum sentence of five years and a maximum of 20 years. The count of possessing child pornography carries a maximum sentence of ten years.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. The Stephenson County Sheriff’s Office assisted in the investigation. The government is represented by Assistant U.S. Attorney Jonathan S. Kim.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat child sexual exploitation and abuse. PSC marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, while also providing critical services to victims.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to https://www.missingkids.org/ or calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
zier_indictment.pdfSuburban Chicago Businessman Indicted on Immigration Fraud ChargesRead the Press Release
CHICAGO — A suburban Chicago businessman has been indicted on federal fraud charges for allegedly providing false and fraudulent information to U.S. authorities to obtain immigration benefits for his foreign national clients.
JOSE GREGORIO SOSA CARDONA operated Delta Global Solutions, Inc., which assisted individuals in applying for asylum, immigrant visas, lawful permanent residence cards, and other immigration benefits. From 2020 to 2024, Sosa Cardona conspired with two employees of his firm and others to knowingly provide false and fraudulent information to the U.S. Citizenship and Immigration Services on behalf of his foreign national clients who were seeking benefits, according to an indictment unsealed today in U.S. District Court in Chicago. The indictment accuses Sosa Cardona of, among other things, fabricating foreign law enforcement reports and foreign political party membership letters to falsely corroborate his clients’ asylum claims. Sosa Cardona also falsely represented to U.S. immigration officials that he was an attorney licensed to practice law in Ohio, when, in fact, he was not an attorney and not authorized to represent applicants in immigration proceedings before the USCIS, the indictment states.
Sosa Cardona, 40, of Downers Grove, Ill., is charged with one count of conspiracy to defraud the United States and commit immigration fraud, four counts of falsifying applications for immigration benefits, and two counts of making a false statement to the USCIS. Sosa Cardona was arrested this morning. He was arraigned this afternoon in federal court in Chicago and pleaded not guilty to the charges. A detention hearing is scheduled for March 12, 2025, at 1:00 p.m.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Matthew Scarpino, Special Agent-in-Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago, Ramsey E. Covington, Acting Special Agent-in-Charge of IRS Criminal Investigation Chicago Field Office, and Ruth Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service. Valuable assistance was provided by the USCIS Fraud Detection and National Security Directorate. The government is represented by Assistant U.S. Attorney Jeffrey Snell.
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. Each count of falsifying immigration applications is punishable by up to ten years in federal prison, while the conspiracy and false statement counts each carry a maximum sentence of five years.
sosa_cardona_indictment.pdfFormer CEO of Subprime Auto Lender Sentenced to Four Years in Prison in Connection with $67 Million Fraud SchemesRead the Press Release
CHICAGO — The former Chief Executive Officer of a suburban Chicago subprime auto lending company has been sentenced to four years in federal prison for participating in a pair of fraud schemes that resulted in approximately $67 million in losses.
JAMES COLLINS was the CEO of Evanston, Ill.-based Honor Finance LLC. From 2015 to 2018, Collins schemed with others to submit false information to a bank that had provided a $200 million warehouse line of credit to the company to fund its subprime loan portfolio. The false information allowed Collins to avoid posting additional collateral while maintaining funding from the line of credit that the company otherwise might have had to return to the bank. The false information also increased the amount of funding he received from a trust established by Honor and the bank to securitize thousands of loans in Honor’s portfolio and sell them as bonds to investors. Collins selected certain vehicle loans for the trust that he knew were delinquent and not eligible to be included in the portfolio because money had already been advanced to those borrowers through improper accounting entries. Collins hid the ineligibility of these loans from the bank, bond investors, and rating agencies. As a result of the false representations and omissions regarding the line of credit and the trust, the bank lost approximately $62 million.
Collins also engaged in a separate fraud scheme that involved the misappropriation of approximately $5.3 million from Honor. Collins and his co-schemers established a shell company called LHS Solutions that they used as a middleman between Honor and a third-party supplier of GPS devices. Instead of Honor buying the devices directly from the supplier, as it had previously done, Collins had LHS Solutions purchase the devices before selling them to Honor Finance at inflated prices, with Collins and the co-schemers keeping and using the difference. Collins also diverted commissions from the sales of vehicle warranties that should have gone to Honor.
Collins, 55, of Evanston, Ill., pleaded guilty in 2023 to a federal mail fraud charge and stipulated to bank fraud. On Wednesday, U.S. District Judge Franklin W. Valderrama imposed the prison sentence and ordered Collins to pay approximately $67 million in restitution.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Securities and Exchange Commission. The government is represented by Assistant U.S. Attorneys Matthew Getter and Paige A. Nutini.
A co-defendant, Honor Finance’s former Chief Operating Officer ROBERT DIMEO, of Park Ridge, Ill., pleaded guilty in 2022 to a mail fraud charge. DiMeo is awaiting sentencing.
Suburban Chicago Investment Advisor Charged with Swindling ClientsRead the Press Release
CHICAGO — A suburban Chicago investment advisor has been indicted on federal fraud charges for allegedly swindling clients by soliciting them to invest in nonexistent business opportunities.
RALPH ROGERS III, also known as “Tres Rogers,” 62, of Batavia, Ill., is charged with six counts of wire fraud in an indictment returned Tuesday in U.S. District Court in Chicago. Each count is punishable by up to 20 years in federal prison. Arraignment in federal court has not yet been scheduled.
According to the indictment, Rogers held himself out as an entrepreneur and investment advisor. From 2021 to 2023, Rogers fraudulently obtained funds from multiple individuals by falsely promising that he would use his professional connections to invest their money in valuable business opportunities, including fiber optic cable installation, copper piping, a physical fitness recovery studio, and materials used to manufacture auto parts, the indictment states. Instead of investing the funds as he had promised, Rogers used the money for his own personal benefit, including for travel, hotel rooms, jewelry, apparel, and gym fees, the indictment states.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Kristin Pinkston.
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.
rogers_indictment.pdfIndictment Charges Former Federal Correctional Officer in Chicago with Sexually Abusing InmatesRead the Press Release
CHICAGO — A former correctional officer at the Metropolitan Correctional Center in Chicago has been indicted by a federal grand jury for allegedly sexually abusing four inmates while on duty.
BRITTANY HALL, 31, of Chicago, sexually abused the inmates inside the MCC in December 2023, according to an indictment returned Tuesday in U.S. District Court in Chicago. At the time, Hall was a correctional officer for the U.S. Bureau of Prisons, responsible for supervising inmates in Unit 12 of the MCC. Hall resigned from the BOP in 2024.
The indictment charges Hall with five counts of sexual abuse of a ward, each of which is punishable by up to 15 years in federal prison, and three counts of abusive sexual contact, each of which is punishable by up to two years in federal prison. Arraignment is scheduled for today at 1:00 p.m. before U.S. Magistrate Judge Heather K. McShain.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and William J. Hannah, Acting Special Agent-in-Charge of the Midwest Regional Office of the Department of Justice’s Office of Inspector General. The government is represented by Assistant U.S. Attorney Jonathan L. Shih.
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.
0001_-_0000_-_indictment_as_to_brittany_hall_1_counts_1_2.pdfFormer Executive of Chicago-Area Non-Profit Pleads Guilty in $1.8 Million Fraud SchemeRead the Press Release
CHICAGO — A former executive of a Chicago-area non-profit organization has pleaded guilty to a federal fraud charge for her role in misappropriating $1.8 million intended to support the charity’s work with underprivileged youth.
BARBARA HARRIS served as the Executive Director of the Center for Community Academic Success Partnerships (CCASP), which received government grants and other funds to provide after-school programs to schools in the Chicago area. The grants included funds from the 21st Century Community Learning Centers Program, a federal program offering financial support for academic enrichment opportunities. The 21st Century program issued grants to its local administrator, the Illinois State Board of Education, which in turn disbursed the funds to CCASP.
Harris stated in a plea agreement that from 2012 to 2017, she schemed with another CCASP executive, TONY BELL, to submit grant applications that inflated CCASP’s projected annual expenses and falsely claimed that the organization would receive services from five subcontractors. In reality, Harris knew that the subcontractors, two of which were other non-profit groups run by Harris and Bell, provided no actual services to CCASP. The fraud scheme resulted in approximately $1.8 million in actual loss to the Illinois Department of Education.
Harris further admitted in the plea agreement that from 2021 to 2023, she participated in a separate fraud scheme that bilked the federally funded AmeriCorps VISTA program, which awarded grants to non-profit organizations working to bring communities out of poverty. Harris, who at the time of this scheme was serving as Co-Executive Director of the non-profit South Suburban Community Services, submitted grant applications falsely representing that VISTA members would work for SSCS developing programs aimed at bringing economic opportunities to the south suburbs of Chicago. Harris knew that the VISTA members would actually be used at SSCS to support already-funded job training and afterschool violence prevention programs. Harris fraudulently obtained approval for eleven VISTA members to work at SSCS, none of whom performed services in accordance with their VISTA assignment descriptions, causing a loss to the VISTA program of $98,699.
Harris, 55, of South Holland, Ill., pleaded guilty on Feb. 27, 2025, to a wire fraud charge. U.S. District Judge Andrea R. Wood set sentencing for July 11, 2025, at 10:30 a.m.
Harris’s guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, John F. Woolley, Special Agent-in-Charge of the U.S. Department of Education Office of Inspector General’s Midwestern Regional Office, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, Ramsey Covington, Acting Special Agent-in-Charge of IRS Criminal Investigation in Chicago, and Stephen Ravas, Acting Inspector General of the AmeriCorps Office of Inspector General. The Illinois Office of Executive Inspector General provided valuable assistance. The government is represented by Assistant U.S. Attorneys Kristen Totten and Caitlin Walgamuth.
Bell, 64, of Matteson, Ill., has pleaded not guilty to charges of conspiracy, money laundering, and wire fraud. He is awaiting trial. The public is reminded that the indictment against Bell is not evidence of guilt. Bell is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
harris_plea_agreement.pdfFederal Indictment Charges Thomson Prison Correctional Officer with Engaging in Sexual Acts with Two InmatesRead the Press Release
ROCKFORD — A correctional officer at the Federal Correctional Institution in Thomson, Ill., has been indicted by a federal grand jury in Rockford for allegedly engaging in sexual acts with two inmates.
DANNY L. SPYKER, 40, of Lanark, Ill., knowingly engaged in sexual acts with the inmates in December 2023 and March 2024, according to an indictment returned in the Northern District of Illinois on Feb. 25, 2025, and unsealed today. Spyker has been on administrative leave from his position as a correctional officer since June 2024.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and William J. Hannah, Acting Special Agent-in-Charge of the Midwest Regional Office of the Department of Justice’s Office of Inspector General. The government is represented by Assistant U.S. Attorney Jonathan S. Kim.
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 maximum sentence for each count in the indictment is 15 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
spyker_indictment.pdfSuburban Chicago Tax Professional Sentenced to More Than Ten Years in Prison for Stealing Client and Investor FundsRead the Press Release
CHICAGO — A suburban Chicago tax professional who fraudulently obtained more than $2.5 million from clients and investors under false pretenses has been sentenced to more than ten years in federal prison.
ADAM R. OLIVA, 43, of Rolling Meadows, Ill., pleaded guilty last year in two federal fraud cases. Oliva was sentenced in December to six years in federal prison for one of the cases, and on Wednesday he received an additional four-and-a-half-year sentence for the other case. The prison terms must be served consecutively, for a total period of incarceration of ten and a half years.
In one case, Oliva held himself out as a tax professional who did business under various names, including Oliva and Associates LLC and The Oliva Group LLC. From 2015 to 2020, Oliva fraudulently induced clients to provide him with money for the purported purpose of paying their income taxes. Oliva instead kept the money for himself. Oliva also admitted that he filed false tax returns on behalf of some of those clients, reflecting no or lower tax liabilities in order to make it less likely that the IRS would contact the clients about their unpaid tax liabilities.
In the other case, Oliva duped investors who had provided him with money to fund purported short-term loans to clients. Oliva promised those investors that they would receive returns of 10-20% on their investments. In reality, he never intended to make any short-term loans. Instead, he pocketed the investors’ money and used it for personal expenses, including gambling, meals at restaurants, and retail purchases.
The sentences were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Ramsey E. Covington, Acting Special Agent-in-Charge of IRS Criminal Investigation Chicago Field Office, and Vincent R. Zehme, Special Agent-in-Charge of the Chicago Region of the FDIC’s Office of Inspector General. The government was represented by Assistant U.S. Attorney Rick D. Young.
Former Navy Sailor Pleads Guilty to Plotting to Attack Naval Station Great Lakes in North ChicagoRead the Press Release
A former Navy sailor has pleaded guilty in federal court in Chicago to plotting to attack Naval Station Great Lakes in North Chicago, Illinois, purportedly on behalf of Iran’s Islamic Revolutionary Guard Corps (IRGC).
Xuanyu Harry Pang, 38, of North Chicago, Illinois, pleaded guilty to conspiring to and attempting to willfully injure and destroy national defense material, national defense premises, and national defense utilities, with the intent to injure, interfere with, and obstruct the national defense of the United States. The guilty plea was entered on Nov. 5, 2024, in U.S. District Court for the Northern District of Illinois and ordered unsealed today.
According to court records filed in the case, in the summer of 2021, Pang communicated with an individual in Colombia about potentially assisting with a plan involving Iranian actors to conduct an attack against the United States to avenge the death of Qasem Soleimani, a general of the IRGC Quds Force who was killed by the U.S. military in 2020. The Quds Force is a branch of the IRGC that conducts unconventional warfare and intelligence activities outside of Iran.
A covert FBI employee, posing as an affiliate of the Quds Force, subsequently communicated online with the individual in Colombia about conducting an attack. The individual in Colombia put the covert FBI employee in touch with Pang, who at the time was stationed and residing at Naval Station Great Lakes. The pair communicated online through an encrypted messaging application about possible targets for the attack, including Naval Station Great Lakes and other locations in the Chicago area. Pang and the individual in Colombia agreed to help the covert FBI employee and his purported associates with their operation to conduct the attack in the United States, court records state.
On three occasions in the fall of 2022, Pang personally met with another individual working with the FBI who was posing as an associate of the covert FBI employee. The first meeting took place outside of the Ogilvie Transportation Center in downtown Chicago, and the two other meetings were held at a train station in Lake Bluff, Illinois. During the meetings in Lake Bluff, as the plot coalesced into an attack on the Naval Station, Pang displayed photos and videos on his phone of multiple locations inside the Naval Station. He also provided two U.S. military uniforms – for operatives to wear inside the base during the attack – and a cell phone that could be used as a test for a detonator.
Pang is currently detained without bond and is scheduled to be sentenced at a later date. He faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Sue Bai, head of the Justice Department’s National Security Division, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois, Assistant Director David J. Scott of the FBI's Counterterrorism Division, and Special Agent in Charge Douglas S. DePodesta of the FBI Chicago Field Office made the announcement.
The FBI Chicago Joint Terrorism Task Force – which is comprised of multiple federal, state, and local law enforcement agencies – is investigating the case, with valuable assistance provided by the Naval Criminal Investigative Service.
Assistant U.S. Attorneys Aaron Bond, Vikas Didwania, and Brandon Stone for the Northern District of Illinois and Trial Attorneys John Cella and Charles Kovats of the National Security Division’s Counterterrorism Section are prosecuting the case.
Former Navy Sailor Pleads Guilty to Plotting to Attack Naval Station Great Lakes in North Chicago, Ill.Read the Press Release
CHICAGO — A former Navy sailor has pleaded guilty in federal court in Chicago to plotting to attack Naval Station Great Lakes in North Chicago, Ill., purportedly on behalf of Iran’s Islamic Revolutionary Guard Corps.
XUANYU HARRY PANG, 38, of North Chicago, Ill., pleaded guilty to conspiring to and attempting to willfully injure and destroy national defense material, national defense premises, and national defense utilities, with the intent to injure, interfere with, and obstruct the national defense of the United States. The guilty plea was entered on Nov. 5, 2024, in U.S. District Court for the Northern District of Illinois and ordered unsealed today.
Pang is currently detained without bond in law enforcement custody. U.S. District Judge Jeremy C. Daniel set sentencing for May 27, 2025, at 11:00 a.m. The conviction is punishable by a maximum sentence of 20 years in federal prison.
The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sue Bai, head of the Justice Department’s National Security Division, David J. Scott of the FBI’s Counterterrorism Division, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. Substantial assistance was provided by the Naval Criminal Investigative Service. The case was investigated by the Chicago Joint Terrorism Task Force, which is comprised of multiple federal, state, and local law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorneys Aaron Bond, Vikas Didwania, and Brandon Stone of the Northern District of Illinois, with assistance from Trial Attorneys John Cella and Charles Kovats of the National Security Division’s Counterterrorism Section.
According to court records filed in the case, Pang communicated in the summer of 2021 with an individual in Colombia about potentially assisting with a plan involving Iranian actors to conduct an attack against the United States to avenge the death of Qasem Soleimani, a general of the IRGC Quds Force who was killed by the U.S. military in 2020. The Quds Force is a branch of the IRGC that conducts unconventional warfare and intelligence activities outside of Iran.
A covert FBI employee, posing as an affiliate of the Quds Force, subsequently communicated online with the individual in Colombia about conducting an attack. The individual in Colombia put the covert FBI employee in touch with Pang, who at the time was stationed and residing at Naval Station Great Lakes, court records show. The pair communicated online through an encrypted messaging application about possible targets for the attack, including the Naval Station Great Lakes and other locations in the Chicago area. Pang and the individual in Colombia agreed to help the covert FBI employee and his purported associates with their operation to conduct the attack in the United States, court records state.
On three occasions in the fall of 2022, Pang personally met with another individual working with the FBI who was posing as an associate of the covert FBI employee. The first meeting took place outside of the Ogilvie Transportation Center in downtown Chicago, and the two other meetings were held at a train station in Lake Bluff, Ill., court records show. During the meetings in Lake Bluff, as the plot coalesced into an attack on the Naval Station, Pang displayed photos and videos on his phone of multiple locations inside the Naval Station. He also provided two U.S. military uniforms – for operatives to wear inside the base during the attack – and a cell phone that could be used as a test for a detonator, the records show.
pang_plea_agreement.pdf pang_complaint.pdfU.S. Attorney’s Office Collected More Than $100 Million in Civil, Criminal, and Asset Forfeiture Actions in Fiscal Year 2024Read the Press Release
CHICAGO — The U.S. Attorney’s Office for the Northern District of Illinois collected more than $100 million in criminal, civil, and asset forfeiture actions in Fiscal Year 2024, Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, announced today.
The 2024 collections included approximately $23.9 million in criminal actions, $6.4 million in civil actions, and $70.4 million in asset forfeiture actions. Additionally, the U.S. Attorney’s Office for the Northern District of Illinois worked with other U.S. Attorney’s Offices and Department of Justice components across the country to collect another $62.2 million in cases pursued jointly with those offices.
“Our attorneys and staff place a high priority on recovering funds for the federal treasury and victims of federal crimes,” said Acting U.S. Attorney Pasqual. “Our office will continue to responsibly safeguard taxpayer resources while delivering a valuable return to the citizens of our district.”
U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. Federal law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department of Justice’s Crime Victims Fund, which then distributes the money to federal and state victim compensation and victim assistance programs.
Man Charged in Federal Court with Trafficking Firearm in ChicagoRead the Press Release
CHICAGO — A man has been charged in federal court with trafficking a firearm in Chicago.
OSCAR GIL-IZQUIERDO sold a pistol, a drum magazine, two additional magazines, and a ballistic vest to a buyer on Feb. 20, 2025, according to a criminal complaint filed in U.S. District Court in Chicago. The transaction occurred in a parking lot on the Southwest Side of Chicago, the complaint states. Unbeknownst to Gil-Izquierdo, the individual to whom he sold the gun and other items was an undercover law enforcement agent, the complaint states.
The complaint charges Gil-Izquierdo, 25, of Chicago, with attempting to transfer a firearm to a person he knew could not legally possess it. The undercover agent had informed Gil-Izguierdo that the agent was a convicted felon and could not legally purchase a firearm, the complaint states.
On Monday, U.S. Magistrate Judge Gabriel A. Fuentes ordered Gil-Izquierdo detained in federal custody without bond pending trial.
The complaint was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. Substantial assistance was provided by the Chicago Field Division of the U.S. Drug Enforcement Administration and U.S. Immigration and Customs Enforcement. The government is represented by Assistant U.S. Attorney Michael Maione.
The charge in the complaint is punishable by a maximum sentence of 15 years in federal prison.
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.
0002_-_0000_-_complaint_signed_by_honorable_gabriel_a_fuentes.pdfFederal Inmate Sentenced to Additional Nine Years in Prison for Assaulting Another InmateRead the Press Release
ROCKFORD — A federal inmate has been sentenced to an additional nine years in prison for assaulting another inmate.
While incarcerated in 2022 at the Federal Correctional Institution in Thomson, Ill., JULIAN BREAL repeatedly kicked and punched the other inmate for several minutes, causing serious injuries. The victim was transported to an outside hospital for treatment, which included surgery.
A jury last year convicted Breal, 47, of assault causing serious bodily injury. On Monday, U.S. District Judge Iain D. Johnston sentenced Breal to nine years in prison, to be served consecutively to the sentence he is currently serving in the Federal Bureau of Prisons.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. The government was represented by Assistant U.S. Attorneys Jessica Maveus and Vincenza L. Tomlinson.
Three Men Sentenced to Prison for Carjackings and Armed Robberies in ChicagoRead the Press Release
CHICAGO — Three men who committed multiple carjackings and robberies in Chicago, including carjacking a vehicle with an infant in the back seat and pistol-whipping a convenience store clerk, have been sentenced to federal prison terms ranging from 15 to 22 years.
DAMANDRE HENLEY, DWIGHT HASBERRY, TYLER OATES-NELSON, and DAVARIO MCDOWELL engaged in a series of carjackings and robberies in Chicago in the overnight hours of Sept. 28 and 29, 2022. The four defendants pleaded guilty last year to federal carjacking, armed robbery, and firearm charges.
On Thursday, U.S. District Judge Manish Shah sentenced Oates-Nelson, 29, of Chicago, to 15 years in federal prison. On Wednesday, Judge Shah sentenced McDowell, 25, of Chicago, to 18 years. On Feb. 11, 2025, Judge Shah sentenced Henley, 28, of Chicago, to 22 years. Hasberry, 31, of Chicago, is scheduled to be sentenced by Judge Shah on March 20, 2025, at 1:30 p.m.
Four of the carjackings occurred in the early morning hours of Sept. 28, 2022. The carjacking involving the infant occurred late that evening, when the four men carjacked a Volkswagen Tiguan in Chicago’s West Town neighborhood. After the men drove to the neighborhood in Oates-Nelson’s vehicle, Henley, Hansberry, and McDowell pointed guns at the driver and the infant in a rear car seat and ordered them out of the vehicle. One of the carjackers patted down the driver and removed a registered handgun from his pocket. The driver removed the infant from the car before Henley, Hansberry, and McDowell got into the Tiguan and drove away.
A short time later, the four men, now all traveling in the stolen Tiguan, drove to Chicago’s Ravenswood Manor neighborhood, where Henley, McDowell, and Hansberry robbed one victim at gunpoint of their cell phone, wallet, and keys, and another victim of their backpack.
The four men then robbed a nearby 7-Eleven convenience store. With Oates-Nelson waiting in the stolen Tiguan, Henley, McDowell, and Hansberry entered the store carrying guns. Henley used his gun to strike a store clerk in the head while forcing him to open the cash register. The defendants fled the store with cash, cigarettes, and liquor bottles.
The sentences were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Larry Snelling, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Elie Zenner.
Man Pleads Guilty to Illegally Importing Suicide Drug into the United States from MexicoRead the Press Release
CHICAGO — A man pleaded guilty today to a federal drug charge for illegally importing the drug Pentobarbital into the United States from Mexico for use in committing suicide.
DANIEL GONZALEZ-MUNGUIA, also known as “Alejandro Vasquez,” 41, of Puebla, Mexico, pleaded guilty in federal court in Chicago to one count of importing a controlled substance into the United States. The charge is punishable by a maximum sentence of 20 years in federal prison. U.S. District Judge Sara L. Ellis set sentencing for Sept. 9, 2025.
Pentobarbital, also known as Nembutal, is a drug sold in Mexico for the purpose of euthanizing animals. In the U.S., Pentobarbital is a controlled substance and has been used in state-sponsored executions. Gonzalez-Munguia admitted in a plea agreement that from 2012 to 2021, he operated an online drug business that sold and distributed bottles of Pentobarbital to hundreds of individuals in the U.S. and throughout the world, including individuals in Illinois. Many of the buyers consumed the product and died, the plea agreement states.
The investigation by Homeland Security Investigations began in 2016 after a parcel of the drug was intercepted in a Chicago suburb. Authorities in the U.S. and several foreign countries conducted well-being checks and recovered Pentobarbital from numerous individuals who admitted to being despondent and ordering the suicide drug online from Gonzalez-Munguia. Law enforcement provided assistance to those individuals.
Gonzalez-Munguia admitted that he initially shipped bottles of the drug directly from Mexico and in the manufacturer’s packaging, but thereafter disguised it as a cosmetic product and used intermediaries to transport it into the U.S. before shipping to customers around the world.
The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Daniel Johnsen, Acting Special Agent-in-Charge of the Chicago office of Homeland Security Investigations, and Ruth Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service. Valuable assistance was provided by U.S. Customs and Border Protection, the Illinois Army National Guard Counterdrug Program, the U.S. Attorney’s Office for the Southern District of Texas, and law enforcement agencies in Australia, Canada, China, France, Germany, Ireland, South Korea, Spain, Switzerland, and the United Kingdom. Assistant U.S. Attorney Kartik K. Raman is prosecuting the case.
gonzalez-munguia_plea_agreement.pdfSuburban Chicago Man Sentenced to More Than Five Years in Prison for $1.5 Million Covid-Relief FraudRead the Press Release
CHICAGO — A federal judge has sentenced a suburban Chicago man to more than five years in prison for fraudulently obtaining more than $1.5 million in small business loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Over a five-month period in 2021, FEROZ JALAL participated in a scheme to defraud banks and the U.S. Small Business Administration. The SBA’s Paycheck Protection Program allowed qualifying small businesses to receive low-interest, government-backed loans to cover a temporary loss of revenue during the Covid pandemic. As part of the scheme, Jalal submitted to lenders and the SBA at least a dozen applications for PPP loans on behalf of businesses that he and others purportedly owned. The applications contained false statements and misrepresentations concerning the purported entities’ employees, revenues, costs, and statuses of operations. In support of his applications, Jalal provided, among other things, fake IRS tax filings and bogus spreadsheets that purported to document the companies’ payroll expenses.
Jalal and co-schemers submitted fraudulent applications for PPP loans in amounts totaling $1.792 million, causing $1.644 million to be disbursed by lenders.
Jalal, 51, of Niles, Ill., pleaded guilty last year to bank fraud and money laundering charges. On Feb. 11, 2025, U.S. District Judge John F. Kness sentenced Jalal to five years and two months in federal prison and ordered him to pay more than $1.5 million in restitution to the SBA.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Sean Fitzgerald, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations. Substantial assistance was provided by the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). The government was represented by Assistant U.S. Attorney Brian Hayes.
Anyone with information about attempted Covid-relief fraud can report it to the Department of Justice by calling the National Center for Disaster Fraud at (866) 720-5721, or by filing an online complaint at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Federal Indictment Charges Suburban Chicago Man with Trafficking Firearms and DrugsRead the Press Release
CHICAGO — A federal grand jury has indicted a suburban Chicago man for allegedly trafficking firearms and drugs.
An indictment returned Thursday in U.S. District Court in Chicago charges EFRAIN JACOBO, 42, of Prospect Heights, Ill., with federal firearm and drug offenses. He pleaded not guilty to the charges during his arraignment this morning in federal court. Jacobo is currently detained in federal custody.
According to the indictment and a criminal complaint previously filed in the case, Jacobo dealt six handguns, a rifle, ammunition, and narcotics in a series of transactions last fall in Joliet, Ill. The drugs in the deals included methamphetamines and cocaine. Unbeknownst to Jacobo, the individual to whom he sold the guns and drugs was an undercover law enforcement officer, the charges allege.
During the investigation, law enforcement seized approximately 150 kilograms of methamphetamines from a truck that had traveled from Texas to Bolingbrook, Ill. Law enforcement also seized fentanyl and cocaine from a storage facility used by Jacobo in Wheeling, Ill., and additional cocaine from Jacobo’s vehicle, the charges allege.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration, and Mike Rompa, Chief of the Bolingbrook, Ill. Police Department. The government is represented by Assistant U.S. Attorney Margaret A. Steindorf.
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.
0015_-_0000_-_indictment_as_to_efrain_jacobo_1_counts_1_2-6.pdf 0001_-_0000_-_complaint_signed_by_honorable_beth_w_jantz_as_to.pdfSuburban Chicago Medical Device Company to Pay $1 Million to Resolve Federal Fraud InvestigationRead the Press Release
CHICAGO — A suburban Chicago medical device company has agreed to pay a $1 million fine to resolve a federal criminal investigation into the alleged selling of misbranded products imported from overseas.
Mokena, Ill.-based ADVANCED INVENTORY MANAGEMENT, INC. admitted in a Statement of Facts filed in U.S. District Court in Chicago that the company imported medical products from international distributors at cheaper prices than what it would have paid to U.S. distributors. Once the products arrived in the U.S., company employees – under the direction of its sole owner and Chief Executive Officer, ANTHONY IADEROSA, 52, of Mokena, Ill. – used a hair dryer to remove labels that had cautioned the products were only available for resale in a specified country and not in the United States. The company then re-sold the products to customers in the U.S. at a substantial markup, resulting in profit margins of 35% to 50%. In total, AIM admitted that it made profits of approximately $500,000 by employing this tactic.
The investigation of AIM and Iaderosa is being resolved with deferred prosecution agreements, under which the company and Iaderosa admitted that the tactic rendered the products misbranded under the U.S. Food, Drug, and Cosmetic Act. The company and Iaderosa further admitted that they deliberately concealed the tactic from the U.S. Food and Drug Administration and caused false statements to be submitted to customs agents.
The U.S. Attorney’s Office filed a one-count criminal information charging AIM and Iaderosa with misbranding of a medical device with the intent to defraud. Under the agreements, the government will defer prosecution on the charge against AIM for three years and the charge against Iaderosa for one year, and then seek to dismiss the charges if the company and Iaderosa abide by certain conditions. Among other things, the company agreed to pay a $1 million fine to the Department of Justice and implement a new compliance and ethics program designed to prevent violations of federal food and drug laws, as well as provide annual reports to the government regarding remediation and implementation of the program. If AIM or Iaderosa fail to completely fulfill each of their obligations during the terms of the agreements, the U.S. Attorney’s Office can initiate prosecution of the charged offenses.
The charges and the deferred prosecution agreements were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Ronne Malham, Special Agent-in-Charge of the Chicago Field Office of the FDA, Office of Criminal Investigations. The government is represented by Assistant U.S. Attorney Jared Hasten.
iaderosa_deferred_prosecution_agreement.pdf aim_deferred_prosecution_agreement.pdf aim_and_iaderosa_information.pdfFederal Indictment in Chicago Charges Two Chinese Companies and Four Individuals with Conspiring to Unlawfully Possess Trade SecretsRead the Press Release
CHICAGO — Two related Chinese companies conspired with former employees of an Illinois facility operated by Philips Medical Systems to unlawfully possess Philips’ trade secrets, according to an indictment returned in federal court in Chicago.
Philips owned and operated a facility in Aurora, Ill., that engaged in the research, development, and manufacture of X-ray tubes used in computed tomography (CT) medical imaging machines. The company spent years developing its proprietary X-ray technology and selling devices incorporating this proprietary technology to medical facilities. According to the indictment, China-based KUNSHAN GUOLI ELECTRONIC TECHNOLOGY CO. LTD. and a Kunshan GuoLi vice president, XIAOQIN DU, 63, of Suzhou, China, helped form a rival X-ray tube development company and headquartered it in Aurora. In 2017, Kunshan GuoLi and Du recruited and hired for the new company three engineers from Philips’ Aurora facility, CHIH-YEE JEN, 69, of Mequon, Wisc., FINCE TENDIAN, 56, of Aurora, Ill., and VLADIMIR NEVTONENKO, 76, of Arlington Heights, Ill.
The indictment alleges that before the end of his employment at Philips, Jen copied, without authorization, Philips’ X-ray trade secret information from internal Philips databases. Jen stole the proprietary information on behalf of Kunshan GuoLi and Du, the indictment states. Jen used the stolen information in connection with his work developing X-ray tubes at the rival X-ray tube development company for Kunshan GuoLi and a related Chinese company, KUNSHAN YIYUAN MEDICAL TECHNOLOGY CO. LTD., the indictment states. Jen then shared the information with Tendian, who used it in her work for the new company, the indictment states. Nevtonenko also allegedly possessed and used the stolen information in his work there.
The indictment charges the two Chinese companies and the four individuals with conspiracy to unlawfully possess trade secrets. Jen is also charged with an individual count of possession or attempted possession of a stolen trade secret. Jen, Tendian, and Nevtonenko pleaded not guilty during their arraignments in federal court in Chicago. Arraignments for the companies have not yet been scheduled, and an arrest warrant has been issued for Du. A joint status report on the case will be submitted to U.S. District Judge Edmond E. Chang by March 31, 2025.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorneys Kavitha Babu, Vikas Didwania, and Ramon Villalpando.
The public is reminded that an indictment is not evidence of guilt. Defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
kunshan_guoli_et_al_indictment.pdfChicago Man Admits Fraudulently Obtaining More Than $1.5 Million in SNAP BenefitsRead the Press Release
CHICAGO — A man has admitted in federal court that he fraudulently obtained more than $1.5 million in benefits from the Supplemental Nutrition Assistance Program.
DAVID QUINONES, 44, of Chicago, pleaded guilty on Tuesday to a federal wire fraud charge, which is punishable by up to 20 years in federal prison. U.S. District Judge Steven C. Seeger set sentencing for June 18, 2025.
SNAP is a federal benefit program administered by the U.S. Department of Agriculture in conjunction with state governments. The program is intended to provide nutritional benefits to supplement the food budgets of eligible individuals and families. Retail stores authorized to participate in SNAP can accept SNAP benefits through EBT cards, also known as Link cards, as payment for eligible food items. It is illegal for stores or individuals to exchange Link cards for cash or other items.
Quinones admitted in a plea agreement that from 2018 to 2023, he gave cash or other items to SNAP recipients in exchange for access to their Link cards and associated identification numbers. Quinones used the cards to purchase various goods at authorized retail stores, fraudulently representing himself as the authorized user of the cards. He then re-sold most of the goods, keeping the proceeds for himself. Quinones admitted that he used more than 1,200 cards and fraudulently caused the USDA to pay out approximately $1,554,804 in SNAP benefits.
The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Shantel R. Robinson, Special Agent-in-Charge of the U.S. Department of Agriculture, Office of Inspector General, Midwest Region, and Larry Snelling, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Erin Kelly.
Former Illinois Speaker of the House Michael J. Madigan Convicted on Federal Conspiracy and Bribery ChargesRead the Press Release
CHICAGO — A federal jury in Chicago today convicted former Speaker of the Illinois House of Representatives MICHAEL J. MADIGAN on conspiracy and bribery charges for using his official position to corruptly solicit and receive personal financial rewards for himself and his associates.
Madigan, 82, of Chicago, was convicted on ten counts against him, including one count of conspiracy to commit an offense against the United States, four counts of using interstate facilities to promote unlawful activity, three counts of wire fraud, and two counts of bribery. The jury acquitted Madigan on four counts of using interstate facilities to promote unlawful activity, two bribery counts, and an attempted extortion count. U.S. District Judge John Robert Blakey declared a mistrial on six other counts for which the jury did not reach a unanimous verdict – one count of racketeering conspiracy, two counts of wire fraud, one count of bribery, one count of conspiracy to commit an offense against the United States, and one count of using interstate facilities to promote unlawful activity.
The jury returned its verdicts against Madigan after a four-month trial in U.S. District Court in Chicago. A sentencing hearing has not yet been scheduled. Each wire fraud count is punishable by a maximum sentence of 20 years in federal prison, while each bribery count is punishable by up to ten years. The maximum for conspiracy to commit an offense against the United States and each count of using interstate facilities to promote unlawful activity is five years.
Judge Blakey also declared a mistrial as to all six deadlocked counts against a co-defendant, MICHAEL F. MCCLAIN, 77, of Quincy, Ill. McClain was charged with one count of racketeering conspiracy, two counts of wire fraud, one count of bribery, one count of conspiracy to commit an offense against the United States, and one count of using interstate facilities to promote unlawful activity.
Evidence at trial revealed that Madigan, who served as House Speaker and occupied a number of other political roles, conspired with others to cause the utility company Commonwealth Edison to make monetary payments to Madigan’s associates as a reward for their loyalty to Madigan, in return for performing little or no legitimate work for the business. The true nature of the payments was to influence and reward Madigan in connection with specific legislation ComEd sought in the Illinois General Assembly.
Madigan was also convicted of scheming to accept legal work unlawfully steered to his private law firm and his son by an Alderman of the Chicago City Council, in exchange for Madigan’s assistance in inducing the Governor of Illinois to appoint the Alderman to a compensated State Board position.
The verdicts were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Ramsey E. Covington, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Diane MacArthur, Sarah E. Streicker, and Julia Schwartz.
High-Ranking Member of Sinaloa Cartel Charged in Chicago with Drug ConspiracyRead the Press Release
CHICAGO — A federal grand jury in Chicago has indicted a high-ranking member of the Sinaloa Cartel in Mexico on a drug conspiracy charge for allegedly manufacturing and distributing fentanyl, cocaine, heroin, and other drugs and importing them into the United States.
According to an indictment returned Monday in the Northern District of Illinois, CEFERINO ESPINOZA ANGULO, 43, a dual citizen of the U.S. and Mexico, employed dozens of gunmen in Mexico to protect and support the leadership of the Guzman faction of the Sinaloa Cartel, including Ivan Guzman-Salazar, Jesus Alfredo Guzman-Salazar, Ovidio Guzman-Lopez, and Joaquin Guzman-Lopez, collectively known as “the Chapitos.” The indictment alleges that Espinoza Angulo worked with others to obtain fentanyl precursor chemicals and to manufacture fentanyl for importation into the United States. Espinoza Angulo allegedly worked with others to transport the fentanyl, cocaine, heroin, methamphetamine, and ecstasy toward the U.S. border for importation into the country. The indictment accuses Espinoza Angulo of illegally using a machine gun in furtherance of his drug trafficking crime.
The Chapitos are the sons of Joaquin Guzman Loera, also known as "El Chapo," who led the Sinaloa Cartel before being convicted by a federal jury in Brooklyn, N.Y., and sentenced to life in prison. The Chapitos allegedly assumed their father’s role as leaders of the Sinaloa Cartel. The Chapitos have been charged with drug trafficking in other U.S. indictments.
The indictment against Espinoza Angulo charges him with drug conspiracy and a firearm offense, which are punishable by a maximum sentence of life in federal prison and a minimum of 30 years. Espinoza Angulo is believed to be residing in Mexico. A U.S. warrant has been issued for his arrest.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Antoinette T. Bacon, Supervisory Official of the Justice Department’s Criminal Division, Tara K. McGrath, United States Attorney for the Southern District of California, and Chad Yarbrough, Assistant Director of the FBI’s Criminal Investigative Division. Valuable assistance was provided by Homeland Security Investigations Field Offices in Arizona and Spokane, Wash.; DEA Special Operations Division, Bilateral Investigations Unit; FBI Field Offices in Washington, San Diego, and Los Angeles; and the Portland, Ore. Police Bureau, Narcotics and Organized Crime Unit, HIDTA Interdiction Taskforce. The government is represented by Assistant U.S. Attorneys Michelle J. Parthum and Andrew C. Erskine of the Northern District of Illinois, Assistant U.S. Attorney Matthew Sutton of the Southern District of California, and Trial Attorney Kirk Handrich of the Criminal Division’s Narcotics and Dangerous Drug Section at the Justice Department.
The case is part of an Organized Crime Drug Enforcement Task Force operation. OCDETF identifies, disrupts, and dismantles drug trafficking organizations and other criminal networks that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local enforcement agencies.
“Our nation’s fentanyl crisis has devastated individuals and families in northern Illinois and throughout the country,” said Acting U.S. Attorney Pasqual. “Our office will continue to work with our law enforcement partners to disrupt the production and trafficking of fentanyl and other dangerous narcotics before they can reach more victims.”
“As alleged, the defendant conspired to traffic dangerous drugs, including fentanyl, into the United States — and employed dozens of gunmen to protect his drug trafficking operation and the leadership of the Guzman faction of the Sinaloa Cartel,” said Supervisory Official Bacon. “Stopping Mexican cartels from poisoning our communities with fentanyl and other narcotics is a top priority of this Administration. Today’s indictment demonstrates that the Criminal Division is relentless in its pursuit of the drug traffickers who profit at the expense of the American people.”
“From San Diego to Chicago to D.C., we are united to bring down the traffickers pushing these poisons into American communities,” said U.S. Attorney McGrath. “We are attacking at every level — from street dealers to cartel leaders.”
“This indictment reinforces the FBI’s unwavering commitment to hold accountable those who endanger our communities and traffic violence and drugs across our borders,” said Assistant Director Yarbrough. “Let this serve as a clear message: if you engage in cartel activity, we will pursue you and bring you to justice. Together with our law enforcement partners at every level, we remain fully committed to protecting the American people and stopping the flow of these dangerous drugs into our nation.”
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
espinoza_angulo_indictment.pdfDefendant Sentenced to 15 Years in Prison for Soliciting a Minor and Lying to the FBI About Pro-ISIS Social Media PostingsRead the Press Release
CHICAGO — A defendant has been sentenced to 15 years in federal prison for soliciting a minor to engage in commercial sex and lying to the FBI about social media postings supportive of the Islamic State of Iraq and Syria (ISIS).
HARDY LEE BROWNER, 37, of Chicago, pleaded guilty in 2023 to one count of making a materially false statement to the FBI involving international terrorism and one count of soliciting a minor to engage in commercial sex. U.S. District Judge Andrea R. Wood imposed the sentence on Wednesday and ordered that it be followed by five years of court-supervised release.
Browner admitted in a plea agreement that Browner used various accounts on the social media site formerly known as Twitter to communicate with individuals associated with ISIS, including a media arm of the terrorist group. Browner also used the accounts to make public posts regarding, among other topics, jihad, martyrdom, and ISIS. When FBI agents interviewed Browner about the posts, Browner falsely claimed not to have used the accounts and not to have communicated with certain Twitter users, including the ISIS media arm.
The solicitation charge relates to Browner’s attempt to traffic a minor with whom Browner had engaged in a sexual relationship. Browner communicated with the minor on Instagram and through texts and phone calls. Browner then met the minor on multiple occasions and had sex with the minor. Browner sometimes gave the minor cash or other items of value. Browner also took steps to traffic the minor for sex with others for money, although Browner’s crimes were discovered before the minor was trafficked.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI.
“The defendant disrespected law enforcement agents and sought to thwart the FBI’s mission in defending against terrorist organizations,” Assistant U.S. Attorneys Barry Jonas and Julia Schwartz argued in the government’s sentencing memorandum. With regard to the solicitation, the prosecutors argued, “Traffickers operating today should receive the message that if you traffic children in the Chicagoland area, the sentence will be severe.”
Chicago Man Sentenced to More Than Seven Years in Prison for Manufacturing and Using Counterfeit BillsRead the Press Release
CHICAGO — A Chicago man has been sentenced to more than seven years in federal prison for manufacturing counterfeit $100 bills and using them in retail stores.
MARQUISE SHORES used chemicals and a printer in his Chicago residence to manufacture approximately $92,000 in counterfeit $100 bills. Shores then used Facebook Messenger to recruit young women, including girls as young as 16 years old, to use the counterfeit bills to buy merchandise at retail stores, while Shores waited outside. He later instructed the young women to return the merchandise for genuine currency, with Shores retaining most of the illicit proceeds.
Shores, 28, pleaded guilty last year to a federal counterfeiting charge. U.S. District Judge Virginia M. Kendall on Wednesday sentenced Shores to seven years and three months in prison.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Dai Tran, Special Agent in Charge of the Chicago Field Office of the U.S. Secret Service. The government was represented by Assistant U.S. Attorney Kurt Siegal.
“Marquise Shores manufactured counterfeit currency and used it to defraud local businesses and enrich himself,” said Acting U.S. Attorney Pasqual. “Our office will continue to work with our law enforcement partners to investigate and prosecute counterfeiters and ensure the integrity of our economy.”
“The U.S. Secret Service is dedicated to combatting crimes that threaten or harm our nation’s financial infrastructure,” Secret Service Special Agent in Charge Tran said. “Counterfeiting not only harms that infrastructure, but also hurts law-abiding citizens as evidenced by the businesses defrauded in this case. I’m proud of our agents, and I thank the U.S. Attorney’s Office for their diligent work on this case.”
Federal Jury Convicts Getaway Driver in Four Robberies of Suburban Chicago Financial InstitutionsRead the Press Release
CHICAGO — A federal jury has convicted the getaway driver in the robberies of three banks and a credit union in the Chicago suburbs.
TARANDLE LEE served as the driver while his friend, CHARLES LAWLER, entered the financial institutions and presented demand notes. Together the pair robbed three banks and a credit union, while Lawler also robbed an additional bank by himself.
The robberies were as follows:
Sept. 22, 2021: Lawler robbed BMO Harris Bank in Naperville, Ill.
Sept. 28, 2021: Lawler and Lee robbed Old Second Bank in Lisle, Ill.
Oct. 6, 2021: Lawler and Lee robbed Bank Financial in Westmont, Ill.
Jan. 3, 2022: Lawler and Lee robbed BMO Harris Bank in Woodridge, Ill.
April 14, 2022: Lawler and Lee robbed DuPage Credit Union in Downers Grove, Ill.
After a week-long trial in federal court in Chicago, the jury on Wednesday convicted Lee, 45, of Bolingbrook, Ill., on all four robbery counts against him. Lawler, 54, of Villa Park, Ill., pleaded guilty prior to trial to the first three robberies and stipulated to his role in the final two.
Lee faces up to 20 years in federal prison for each of the four robberies he committed, while Lawler faces up to 20 years for each of the three robberies to which he pleaded guilty. U.S. District Judge Robert W. Gettleman has not yet set Lee’s sentencing date. Lawler is set to be sentenced on March 11, 2025.
The convictions were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Downers Grove, Ill. Police Department, Bellwood, Ill. Police Department, Woodridge, Ill. Police Department, and Villa Park, Ill. Police Department. The government is represented by Assistant U.S. Attorneys Alejandro G. Ortega and Jonathan L. Shih.
Federal Grand Jury Indicts Man for Allegedly Attempting to Extort Money from Chicago RestaurateurRead the Press Release
CHICAGO — A federal grand jury has indicted a man for allegedly threatening and assaulting a Chicago restaurateur to collect a debt the man claimed he was owed.
An indictment returned Monday in U.S. District Court in Chicago charges JAWAD FAKROUNE, also known as “Angelino Escobar” or “Anjelino Escobar,” 45, of Morocco, with extortion. Arraignment is scheduled for Feb. 5, 2025, at 10:30 a.m., before U.S. District Judge Manish S. Shah.
In 2023 and 2024, Fakroune privately loaned approximately $405,000 to the restaurateur to start a new restaurant in the Lincoln Park neighborhood of Chicago, according to a criminal complaint previously filed in the case. The restaurateur repaid a portion of the loan, but in November 2024 Fakroune and the restaurateur engaged in a dispute regarding the amount of money still owed, the complaint states. On the evening of Nov. 25, 2024, Fakroune went to the restaurant, threatened the restaurateur over the manner and nature of the repayments, and claimed that $1.5 million was still owed, the complaint states. Fakroune then choked, kicked, and punched the restaurateur, while continuing to demand money and threatening the restaurateur’s life and the lives of his family members, the complaint states.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Ramsey E. Covington, Acting Special Agent-in-Charge of IRS Criminal Investigation Chicago Field Office. The government is represented by Assistant U.S. Attorneys Sean Hennessy and Richard M. Rothblatt.
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.
fakroune_complaint.pdf 0025_-_0000_-_indictment_as_to_jawad_fakroune_1_counts_1-2.pdfSuburban Chicago Businessman Sentenced to Three Years in Prison for Bank FraudRead the Press Release
CHICAGO — A suburban Chicago businessman has been sentenced to three years in federal prison for fraudulently obtaining millions of dollars in mortgage and vehicle loans and using stolen identities to secure credit from financial institutions.
YALE SCHIFF fraudulently obtained mortgage loans, vehicle loans, lines of credit, and credit cards by making false statements to financial institutions regarding his employment, income, and encumbrances on the collateral he pledged for the loans. After obtaining the loans, Schiff filed false documents with the Cook County Recorder of Deeds, causing the fraudulent release of the liens. Schiff then pocketed the loan proceeds, causing losses to the lenders. Schiff used the same mortgaged properties for multiple loans, each time fraudulently removing the lien and keeping the proceeds.
Schiff used various false and stolen identities to carry out his fraud scheme. Schiff bought vehicles under the false identities and fraudulently removed liens on the cars before selling them for a profit. He also opened bank accounts and lines of credit using the false identities and other aliases, funding the accounts with advances from other fraudulently obtained lines of credit and credit cards. In one instance, Schiff used a credit card issued in the name of an elderly woman whom he knew was in a memory care facility at the time, and in another instance he used a credit card issued in the name of a friend who had passed away.
Schiff, 50, of Riverwoods, Ill., pleaded guilty in 2023 to a federal bank fraud charge. In addition to the prison sentence, U.S. District Judge Mary M. Rowland on Jan. 16, 2025, ordered Schiff to pay $2,955,954 in restitution.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Ruth Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.
“Defendant, over the course of at least 13 years, engaged in a calculated, sustained, prolonged, multi-faceted scheme to defraud multiple financial institutions, individual buyers of property, and individuals whose identity he used,” Assistant U.S. Attorney Sheri H. Mecklenburg argued in the government’s sentencing memorandum. “Defendant’s conduct was prolonged, willful, and widespread.”
Schiff’s brother, JASON SCHIFF, of Lincolnwood, Ill., and a business associate, DAVID IZSAK, of Chicago, were also charged as part of the federal investigation. Jason Schiff pleaded guilty to causing a false report and statement to be made to the U.S. Department of Housing and Urban Development. Jason Schiff was sentenced to three years of probation and ordered to pay $306,610 in restitution. A jury convicted Izsak on ten counts of financial institution fraud. Izsak is awaiting sentencing.
Money Launderer for Chicago-Based Drug Trafficking Organization Sentenced to More Than Eight Years in PrisonRead the Press Release
CHICAGO — A money launderer for a Chicago-based drug trafficking organization has been sentenced to more than eight years in federal prison.
COSME CHACON, 55, pleaded guilty in 2023 to a money laundering conspiracy charge. U.S. District Judge John J. Tharp, Jr. imposed a 100-month prison sentence during a hearing on Tuesday in federal court in Chicago.
Chacon was among four defendants indicted in Chicago in 2007. The defendants participated in a drug trafficking organization that transported heroin to Chicago from New York, Florida, and Texas. After the drugs were sold in the Chicago area, Chacon laundered the illicit proceeds through wire transfers to Colombia and other overseas locations. Chacon’s three co-defendants pleaded guilty and were sentenced to federal prison terms of 16 years, 12 years, and one year.
Chacon was free on bond in 2009 when he failed to appear for status hearings in the weeks leading up to his scheduled trial. Chacon remained a fugitive until 2022, when he was arrested in Panama and returned to the United States.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sean Fitzgerald, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations, and Ramsey E. Covington, Acting Special Agent-in-Charge of IRS Criminal Investigation Chicago Field Office. Assistant U.S. Attorney Brian F. Williamson represented the government.
Valuable assistance in securing Chacon’s arrest and return to the U.S. was provided by IRS Criminal Investigation Panama City, the U.S. Department of State’s Diplomatic Security Service, the U.S. Marshals Service, and the Justice Department’s Office of International Affairs.
This case was part of an Organized Crime Drug Enforcement Task Forces investigation. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, and other alleged criminal offenders that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against alleged criminal networks.
Man Sentenced to a Decade in Federal Prison for Attempting to Traffic Cocaine in ChicagoRead the Press Release
CHICAGO — A man has been sentenced to ten years in federal prison for attempting to traffic cocaine that was shipped to Chicago from California.
In February 2022, JOSE RAMIREZ-ARELLANO arranged to receive a parcel containing approximately five kilograms of cocaine that was shipped to his residence in Chicago from southern California. Law enforcement intercepted the package, replaced the real cocaine with sham cocaine, and delivered it to Ramirez-Arellano’s residence. Upon receipt, Ramirez-Arellano took the package to a hotel in downtown Chicago, where he was arrested.
The federal investigation revealed that Ramirez-Arellano also received a second shipment of approximately five kilograms of cocaine that same month. In addition, law enforcement seized two parcels of bulk cash linked to Ramirez-Arellano, which together contained approximately $43,550.
Ramirez-Arellano, 33, pleaded guilty last year to a federal drug charge. U.S. District Judge Andrea R. Wood imposed the prison sentence on Jan. 17, 2025, during a hearing in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Ruth M. Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service. Valuable assistance was provided by the Chicago Police Department and the Illinois National Guard Counter-Drug Task Force.
“The cocaine that defendant attempted to possess and distribute represented thousands of street-level user quantities of this highly addictive and dangerous narcotic,” Assistant U.S. Attorney Michelle Parthum argued in the government’s sentencing memorandum. “Had defendant succeeded in receiving and distributing that cocaine, it would have exacerbated the crisis of addiction and cocaine-related harms and deaths.”
Federal Indictment Charges Former Cannabis Executive and Three Friends with Insider TradingRead the Press Release
CHICAGO — A former cannabis executive used insider information obtained from his employment to purchase shares of a rival cannabis company that was privately the target of an acquisition, according to an indictment returned in federal court in Chicago.
The indictment accuses ANTHONY MARSICO of obtaining material, non-public information about his company’s agreement to purchase the rival company. Prior to the public announcement of the agreement, and while the two companies were privately negotiating the proposed acquisition, Marsico used the information to purchase more than 900,000 shares in the rival company’s stock, resulting in illegal profits of approximately $607,338, the indictment states. Marsico later sold all of the stock before it was publicly announced that the potential acquisition was canceled, the indictment states.
While the proposed acquisition was still pending, Marsico tipped off a friend, ARTHUR PIZZELLO, about the potential acquisition. The information allowed Pizzello to also buy shares in the rival company, the indictment states. Pizzello, in turn, passed on Marsico’s information to two others, ROBERT QUATTROCCHI and TIMOTHY CAREY, allowing them to purchase the rival company’s stock as well, the indictment alleges. The four defendants were social friends and played golf together at a private country club, the indictment states.
The indictment was returned Thursday in U.S. District Court in Chicago. It charges Marsico, 39, of Bartlett, Ill., Pizzello, 61, of Wayne, Ill., Quattrocchi, 63, of Schaumburg, Ill., and Carey, 57, of Hanover Park, Ill., with conspiracy to commit securities fraud. Marsico is also charged with six individual counts of securities fraud. Arraignments in federal court in Chicago have not yet been scheduled.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Securities and Exchange Commission, which filed a civil enforcement action against the four defendants, provided valuable assistance. Assistant U.S. Attorneys Bradley Tucker and Jared Hasten represent the government.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
0001_-_0000_-_indictment_as_to_anthony_marsico_1_counts_1-6.pdfChicago Man Convicted of Kidnapping, Carjacking, and Firearm OffensesRead the Press Release
CHICAGO — A federal jury has convicted a Chicago man on multiple criminal charges for kidnapping two drivers and sexually assaulting one of them at gunpoint.
ANDREW ANANIA, 29, was convicted Monday on all counts against him, including two counts of kidnapping, one count of carjacking, and one count of using a firearm in relation to a crime of violence. The guilty verdicts were returned after a two-week trial in federal court in Chicago. Anania faces a mandatory minimum sentence of seven years in federal prison and a maximum of life. U.S. District Judge Edmond E. Chang set sentencing for May 13, 2025, at 10:30 a.m.
Evidence at trial revealed that Anania kidnapped an Uber driver on March 8, 2021, in Darien, Ill. Anania showed the driver a gun and forced her to drive to Chicago and park in alleys, where he sexually assaulted her before fleeing on foot. On March 10, 2021, Anania and another man, WALTER MORAN, kidnapped a woman who was on her way to work in Cicero, Ill. Anania pointed a gun at the driver and drove himself, Moran, and the victim to Chicago, where Moran exchanged gunfire with others on the street. The pair eventually released the victim and took her car.
Anania pleaded guilty prior to trial to another kidnapping and carjacking. That incident occurred on Feb. 27, 2021, in Chicago, when Anania got in a vehicle with the driver, claimed he had a gun, and sexually assaulted her. The woman escaped when the car stopped at an intersection. Anania fled in the vehicle and crashed it a short time later.
Anania committed all of the offenses while awaiting trial in a separate federal firearm case. Anania had been released on bond in that case after a court hearing at which the government had moved for detention.
Moran, 31, of Cicero, Ill., pleaded guilty last year to kidnapping and carjacking charges. He is scheduled to be sentenced by Judge Chang on March 18, 2025, at 10:00 a.m.
The jury convictions were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. Substantial assistance was provided by the Cicero, Ill. Police Department, Summit, Ill. Police Department, Stickney, Ill. Police Department, Chicago Police Department, Darien, Ill. Police Department, U.S. Marshals Service, and the Cook County Sheriff’s Office. The government is represented by Assistant U.S. Attorneys Cornelius Vandenberg, Megan Donohue, and Hayley Altabef.
Chicago Businessman Sentenced to More Than 17 Years in Prison for Bilking Elderly Homeowners in Reverse Mortgage SchemeRead the Press Release
CHICAGO — A Chicago businessman was sentenced today to more than 17 years in federal prison for bilking elderly homeowners in a reverse mortgage and home repair scheme.
MARK STEVEN DIAMOND schemed with others to induce homeowners to unwittingly obtain reverse mortgage loans to pay for purported home repairs that Diamond offered to perform. Diamond and the co-schemers targeted elderly victims in the Chicago area based on the amount of equity in their homes and their relative lack of financial sophistication. In some instances, Diamond concealed from the homeowners that they were applying for reverse mortgage loans by falsely representing that they needed to sign certain documents to start the repair work, when, in fact, the documents that Diamond caused them to sign were related to applying for the loan. After the loans were approved and originated by co-schemers, Diamond fraudulently pocketed the loan proceeds and often failed to perform any repairs.
Diamond, 68, of Chicago, pleaded guilty last year to a federal charge of wire fraud affecting a financial institution. In addition to the 205-month prison sentence, U.S. District Judge Franklin U. Valderrama ordered Diamond to pay $2.7 million in restitution.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Rae Oliver Davis, Inspector General for the U.S. Department of Housing and Urban Development Office of the Inspector General, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Kwame Raoul, Illinois Attorney General. The government was represented by Special Assistant U.S. Attorney Brian P. Netols and Assistant U.S. Attorney Erin Kelly.
“Mark Diamond repeatedly preyed on the elderly for years,” said Acting U.S. Attorney Pasqual. “He damaged the most vulnerable in our community, both financially and personally. We will continue to work with our law enforcement partners to hold accountable anyone who seeks to deceive elderly homeowners through fraud.”
“Diamond’s scheme defrauded more than 100 elderly and vulnerable homeowners, preying upon their trust and devastating them financially,” said HUD-OIG Inspector General Davis. “His sentencing today is a sobering reminder of the unique harm caused by predatory reverse mortgage schemes. These egregious criminal acts will not be tolerated, and my agency will continue to work with our law enforcement partners to hold other individuals like Diamond accountable for their actions.”
“The reverse mortgage fraud scheme perpetrated by the defendant preyed on some of the most vulnerable Chicagoans,” said FBI Chicago SAC DePodesta. “Combatting white-collar crime stands as a foremost priority for the FBI. With the assistance of our law enforcement partners, we will continue to investigate and dismantle financial fraud schemes aimed at harming members of our community.”
“Many of these victims were older homeowners who worked and saved their entire their lives, and their only mistake was trusting an individual who specifically targeted them to be victims of his scam,” said Attorney General Raoul. “My office is proud to partner with the U.S. Attorney for the Northern District of Illinois, the Department of Housing and Urban Development’s Office of Inspector General in Chicago, and the Chicago Field Office of the FBI to obtain a degree of justice for the victims who were defrauded. This sentence underscores the importance of the state-federal law enforcement collaborations that support my office’s work to hold accountable individuals who prey upon our most vulnerable residents.”
All four co-schemers charged in the investigation – loan originators GARY BOHN, of Hoffman Estates, Ill., and MATTHEW FEFFERMAN, of Munster, Ind., Diamond’s employee CYNTHIA WALLACE, of Sauk Village, Ill., and title agency owner FORREST C. FAWCETT, of Fort Lauderdale, Fla. – previously pleaded guilty and admitted their roles in the fraud. They are awaiting sentencing.
Man Sentenced to More Than Three Years in Prison for Orchestrating $1.5 Million Mortgage Fraud Scheme in ChicagoRead the Press Release
CHICAGO — A man has been sentenced to more than three years in federal prison for orchestrating a mortgage fraud scheme in Chicago that bilked multiple financial institutions out of more than $1.5 million.
LEE HOLLIDAY, 66, of Schererville, Ind., pleaded guilty last year to a federal bank fraud charge. U.S. District Judge Sara L. Ellis on Friday sentenced Holliday to three years and three months in federal prison.
Holliday admitted in a plea agreement that he engaged in mortgage fraud in 2011 and 2012 in connection with the purchase of multiple properties on the West and South Sides of Chicago. Holliday recruited buyers and provided them with funds for the down payments, which were only 3.5% of the purchase price since the loans were insured by the Federal Housing Authority. Holliday worked with the buyers to purchase homes at inflated prices and then split the proceeds with both the buyers and sellers. Although Holliday promised the buyers that the properties would provide rental income, the promises proved to be false and most buyers eventually fell behind on their mortgage payments. Seven properties went into foreclosure proceedings. In all, Holliday caused the lenders to lose a total of approximately $1.53 million through the submission of false and fraudulent loan applications.
In addition to the mortgage fraud scheme, Holliday also admitted in his plea agreement that he engaged in Covid-relief fraud in 2020 and 2021, fraudulently obtaining $391,869 in Paycheck Protection Program funds to which he was not entitled.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Machelle L. Jindra, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development’s Office of Inspector General in Chicago. Valuable assistance was provided by the FBI Chicago Field Office. The government was represented by Assistant U.S. Attorney Stephanie C. Stern and former Assistant U.S. Attorney Charles W. Mulaney.
“FHA loans are intended to help people who could not otherwise afford a home,” said Acting U.S. Attorney Pasqual. “In this case, the money that was supposed to help those people and improve their neighborhoods instead went into the defendant’s pockets.”
“Lee Holliday repeatedly engaged in an egregious mortgage fraud scheme causing borrowers to falsely represent critical income and asset information to qualify them for loans they would not have otherwise qualified for,” said HUD-OIG SAC Jindra. “When people take advantage of HUD-insured mortgage programs, it limits opportunities for hard-working individuals trying to achieve the American dream of homeownership. HUD-OIG will continue to work with the U.S. Attorney’s Office and our law enforcement partners to investigate individuals who jeopardize the integrity of FHA mortgage programs.”