Southern District of Illinois
Press releases recorded for this federal judicial district.
Former O'Fallon Resident Pleads Guilty to Receiving Child PornographyRead the Press Release
Christopher R. Buse, 42, formerly of O’Fallon, Illinois, has been convicted of knowingly receiving child pornography over the internet, the U.S. Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. Buse pleaded guilty to a one-count federal indictment without a plea agreement. He faces a prison sentence of 5 to 20 years on the charge.
Facts elicited at the plea hearing established that, from January to November 2016, Buse had been offering child pornography files to share over the internet through a peer-to-peer file sharing application. Undercover officers downloaded some of the illicit files and were able to track the IP address back to an address in O’Fallon, where Buse was living at the time.
As investigators were preparing to execute a federal search warrant on Buse’s apartment, they discovered that he had moved to Staunton, Illinois, which is in the Central District of Illinois, and that he was still sharing child pornography from his new location. A second search warrant was obtained and executed at his Staunton home on May 10, 2017. Items seized during the search were found to contain more child pornography files.
Sentencing is set for February 6, 2019, at the federal courthouse in East St. Louis.
The prosecution is the result of an investigation by the Federal Bureau of Investigation’s Violent Crimes against Children Task Force, the United States Secret Service’s Springfield Electronic Crime Unit-Southern Illinois Cyber Group, the O’Fallon Illinois Police Department, and the Calhoun County Sheriff’s Department. The United States Attorney’s Office for the Central District of Illinois and the Staunton Illinois Police Department also assisted in the investigation. The case is being prosecuted by Assistant United States Attorney James G. Piper, Jr.
Pulaski County Woman Pleads Guilty to Bankruptcy FraudRead the Press Release
Jessica A. Browning, 44, of Ullin, Illinois (Pulaski County), has pleaded guilty to two counts of bankruptcy fraud, Steven D. Weinhoeft, U.S. Attorney for the Southern District of Illinois, announced today. A federal grand jury indicted Browning in August of this year as part of the U.S. Attorney’s Office’s continuing effort to crackdown on those who commit bankruptcy fraud in the Southern District of Illinois.
The case against Browning arose out of a chapter 13 bankruptcy case she filed in the federal bankruptcy court in Benton, Illinois, on March 17, 2014. During her plea hearing, Browning admitted that on a document she filed with the bankruptcy court, she intentionally concealed the fact that just three weeks before filing bankruptcy she had received a $12,675.47 worker’s compensation award. Browning also admitted that, at a meeting of creditors in her bankruptcy case, she provided false testimony regarding what she did with the funds from her worker’s compensation award.
Browning pleaded guilty to making a false statement under penalty of perjury in a bankruptcy case and making a false statement under oath in a bankruptcy case. Both crimes carry a maximum sentence of five years in prison and a fine of up to $250,000.
"Abuse of the bankruptcy process by concealing assets for personal gain threatens the integrity of the bankruptcy system and undermines public confidence in that system," stated Nancy J. Gargula, U.S. Trustee for Southern Illinois, Central Illinois and Indiana (Region 10). "We are grateful for the continued commitment of U.S. Attorney Weinhoeft and our law enforcement partners to combating fraud and abuse in bankruptcy cases." The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Indiana, and Peoria, Illinois.
Browning will be sentenced on January 30, 2019, at 10:00 a.m., at the federal district courthouse in Benton, Illinois.
The charges resulted from a referral by the U.S. Trustee for Region 10 to the U.S. Attorney for the Southern District of Illinois. The investigation was conducted by agents from the Fairview Heights, Illinois, Office of the Internal Revenue Service – Criminal Investigations, in collaboration with the Southern Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Williamson County Man Sentenced for Methamphetamine OffensesRead the Press Release
Timothy O. Meadows, 35, of Marion, Illinois, has been sentenced to 121 months in federal prison for his role in a methamphetamine conspiracy, United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. Meadows previously pled guilty to a two-count indictment charging him with conspiracy to distribute more than 50 grams of methamphetamine and distribution of more than 5 grams of methamphetamine.
The indictment alleged that the offenses occurred between April 2017, and January 2018, in Williamson County. Evidence at the plea and sentencing hearings established that Meadows was involved with other persons in the distribution of ice. Ice is methamphetamine which has a purity level of at least 80%. On August 11, 2011, Meadows sold ice to a confidential source working for law enforcement. At sentencing, the district court found that Meadows was responsible for the distribution of approximately 450 grams of ice. Meadows received an enhanced sentence because he kept a loaded crossbow nearby while dealing methamphetamine.
The investigation was conducted by the Southern Illinois Enforcement Group. The Williamson County Sheriff’s Office/Illinois Law Enforcement Alarm System (ILEAS) SWAT Team and the Williamson County States Attorney’s Office also assisted in the investigation.
Last of the Co-Defendants Sentenced to 16 Years for Large-Scale Meth RingRead the Press Release
Starlet J. Howie, a/k/a "Star Oettle," and "Star Miller," 49, of Sparta, Illinois, has been sentenced to 192 months in federal prison for her role in a methamphetamine conspiracy, United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. Howie previously pleaded guilty to a one-count indictment charging her and nine others with conspiracy to distribute more than 50 grams of methamphetamine.
The indictment alleged that the offense occurred between 2015 and April 2017, in Perry, Randolph, Monroe, and St. Clair Counties. Evidence at the plea and sentencing hearings established that Howie was involved with numerous other persons in the distribution of ice. Ice is methamphetamine, which has a purity level of at least 80%. At sentencing, the district court found that Howie was responsible for the distribution of approximately 22.7 kilograms of ice. She also received an enhanced sentence for obstructing justice during the investigation.
Howie was the tenth and final co-defendant sentenced in this case. Previously sentenced co-defendants were Jeremy J. Humphries (235 months); Garrick E.R. Recker (188 months); Derek L. Sumpter (188 months); Rodney V. Howie (174 months); Jeremy S. Copple (168 months); Paige M. Gleghorn (140 months); Jordan P. Leggans (135 months); Daniel M. Dortch (120 months); and Mandy L. Hagen (84 months).
The investigation was conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Monroe County Sheriff’s Office, St. Clair County Sheriff’s Office Drug Tactical Unit, Metropolitan Enforcement Group of Southern Illinois, Chester Police Department, Coulterville Police Department, Belleville Police Department, Lenzburg Police Department, Perry County (Missouri) Sheriff’s Office, and Drug Enforcement Administration. The Randolph County States Attorney’s Office and the Monroe County States Attorney’s Office also assisted in the investigation.
Washington Park Man Sent Back to Prison for Firearm OffenseRead the Press Release
Jessie L. Wofford, 41, of Washington Park, Illinois, was sentenced today to 51 months in federal prison for unlawful possession of a firearm by a convicted felon. Wofford has a 1994 conviction for first degree murder and is legally prohibited from possessing a gun. He was on parole for that conviction when a 9mm handgun and a loaded extended magazine were found in his residence earlier this year. Wofford pleaded guilty to the federal gun charge back on June 15.
Wofford’s sentence includes a three-year term of supervised release and a $500 fine. As part of his plea, Wofford also agreed to forfeit the firearm.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Illinois State Police, and the Illinois Department of Corrections. The case was prosecuted by Assistant United States Attorneys Laura Reppert and Amanda Fischer.
California Woman Pleads Guilty to Defrauding Thousands in Nationwide Telemarketing Real Estate ScamRead the Press Release
Cynthia L. Rawlinson, 51, of Santa Barbara, California, appeared at the federal courthouse in East St. Louis, Illinois, this morning and pleaded guilty to a federal charge of conspiracy to commit mail fraud and wire fraud. Rawlinson’s criminal conduct occurred over a seven year period, during which she worked for a Santa Barbara telemarketing business owned by Michael S. Davenport, 50, former bass guitar player for the rock band, The Ataris. Davenport’s business changed names several times and was known at various times as MDSQ Productions, LLC, Housing Standard, LLC, Anchor House Financial, American Standard, American Standard Online, and Your American Standard. Court documents simply refer to the business as "American Standard."
As part of her guilty plea, Rawlinson admitted that she worked for several years as a salesperson for American Standard before eventually being promoted to sales manager. She also admitted that American Standard had fraudulently placed ads on Craigslist listing certain houses for sale or rent at very favorable prices when, in fact, the houses described in the ads didn’t exist. Consumers who responded to the ads were told they would have to purchase American Standard’s list of houses before they could see any additional information. Consumers were also told that the houses on American Standard’s list were in "pre-foreclosure," that they could purchase the properties by simply taking over the homeowners’ mortgage payments, and that the deeds to the homes would then be transferred into the customers’ names. The $199 fee that American Standard charged to access the list was purportedly to cover the cost of title searches and deed transfers. No matter what area of the country the consumer lived in, American Standard salespersons told them that the list contained numerous pre-foreclosure properties available in their area.
After the customers paid the $199 fee, they learned that the houses on American Standard’s list were not available to be purchased. A substantial number of the addresses contained on the list were fictional, or there were simply no houses at those locations. In numerous other instances, the houses were not in pre-foreclosure or financial distress, and were not available to be purchased
at below market prices. If the customers asked for more information about the houses they had seen on Craigslist, American Standard’s Customer Service Department always informed them that the houses were no longer available.
The American Standard conspiracy and scheme to defraud operated from approximately January 2009 through at least October 5, 2016, and victimized over 100,000 people to the tune of more than $25,000,000. There were victims located in all 50 states and the District of Columbia. Over 100 victims of the scam were located within the Southern District of Illinois, spread across 22 counties, with multiple victims in both St. Clair and Madison Counties. American Standard’s list included 534 houses located in Southern Illinois.
Rawlinson is scheduled to be sentenced on January 24, 2019, at 1:30 p.m. at the federal courthouse in East St. Louis, Illinois. Under the federal SCAMS Act, because the crimes involved telemarketing and victimized ten or more people over the age of 55, Rawlinson could receive as much as 30 years imprisonment and a fine of up to $250,000. She may also be ordered to pay restitution to her victims.
Davenport was charged in the same indictment as Rawlinson. He entered his guilty plea on September 28 and is scheduled to be sentenced in East St. Louis on December 28, 2018, at 10:00 a.m. Three other former American Standard employees also pleaded guilty in the Southern District of Illinois earlier this year. Mark A. Phillips, 50, and Semjase E. Santana, 37, were salespersons at American Standard’s headquarters in Santa Barbara, California. Carlynne L. Davis, 33, was a salesperson in the company’s Lompoc, California branch office. All three are currently awaiting sentencing.
This case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The Office of the Honorable Joyce E. Dudley, District Attorney for Santa Barbara County, and the Santa Maria Office of the FBI have provided substantial assistance in the investigation. The case is being prosecuted by Assistant United States Attorneys Scott A. Verseman and Derek Wiseman.
Alorton Man Pleads Guilty, Faces Possible Life Sentence for Shooting A Federal WitnessRead the Press Release
Tereze L. Fenderson, age 39, pleaded guilty in federal court to charges that he attempted to retaliate against a witness or informant, unlawfully possessed a firearm as a convicted felon, and discharged a firearm in connection with a crime of violence, Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced today.
In early 2015, agents with the Bureau of Alcohol, Tobacco, Firearms & Explosives executed a warrant searching for guns and drugs at Fenderson’s Alorton, Illinois home. Fenderson immediately ran into the house and locked the door. The agents ultimately made forced entry into the home and discovered more than four pounds of marijuana, along with a 9 mm semi-automatic pistol. Another 68 pounds of Fenderson’s marijuana was separately recovered from his girlfriend’s house. Officers later seized approximately $13,000 in cash from Fenderson upon his arrest on a federal indictment for unlawful possession of a firearm.
Evidence presented at Fenderson’s plea hearing established that, while out on bond pending trial, Fenderson became convinced that a former drug associate had cooperated against him in the federal investigation. On October 22, 2017, at nearly 1:00 AM, Fenderson located and confronted his former associate on the sidewalk outside a bar on Piggott Avenue, in East St. Louis, Illinois. When a mutual friend interceded and tried to deescalate the situation, the former associate walked around the building and out of sight. Fenderson got back into his car with two other men and drove slowly around the block looking for his former associate. Minutes later, Fenderson found the man hiding near the intersection of 15th and Piggott Streets.
Fenderson stopped the car in the middle of 15th Street, where he and another man in the car opened fire, shooting the victim in the hip and lower leg. The victim sought cover behind a nearby parked car and returned fire from his own handgun. After Fenderson sped away, the victim was rushed to a nearby hospital. The gunshot to his lower leg broke both bones and has required multiple surgeries to repair.
Because of the shooting, Fenderson’s bond was revoked and he was re-arrested on November 2, 2017. He remains in custody. He was later charged in a superseding indictment that added additional charges for witness retaliation and using a firearm during a crime of violence.
Causing bodily injury to a prospective witness is a federal crime that carries up to 20 years imprisonment. Fenderson is also facing up to 10 years imprisonment for unlawful possession of a firearm by a felon, and a mandatory minimum of not less than 10 years and as much as life imprisonment for discharging a firearm in connection with a crime of violence.
Fenderson previously served a six-year prison term in the Illinois Department of Corrections on a 2005 conviction out of St. Clair County for involuntary manslaughter.
Sentencing is scheduled for January 25, 2019, in East St. Louis, Illinois.
United States Attorney Steven D. Weinhoeft said, "This case should serve as a warning that federal law enforcement will relentlessly pursue those who embrace the ‘code of the street’ by threatening or retaliating against witnesses. This so-called ‘street code’ is contrary to the most basic tenets of society and is calculated to undermine the rule of law so that violent actors can prey upon the vulnerable in darkness without the fear of getting caught. The public can be assured that law enforcement will do everything in its power to protect witnesses while forcefully prosecuting those who would do harm."
Earlier today, the Attorney General announced that in fiscal year 2018, the Justice Department charged more defendants with violent crimes than in any other year since the Department began tracking the statistic more than 25 years ago – surpassing by nearly 15% the previous record set just last year.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives. The case is being prosecuted by United States Attorney Steven D. Weinhoeft and Assistant U.S. Attorney James G. Piper, Jr.
Former Employee of Retirement Center Sentenced for Stealing Identities of Elderly ResidentsRead the Press Release
Christopher Rhodes, age 53, of Lovejoy, Illinois, has been sentenced to a total of 36 months in prison for stealing the identities of elderly residents at a senior living facility where he used to work, the United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. Rhodes previously pled guilty to three counts of wire fraud and one count of aggravated identity theft back in June of this year. In addition to his prison sentence, Rhodes was also ordered to pay restitution totaling $15,894.03.
Rhodes was formerly an employee of St. Paul’s Senior Community, a not-for-profit retirement community in Belleville, Illinois. In his position, Rhodes had access to residents’ medical, health and personally identifiable information (PII). Court proceedings established that from 2008 through July of 2017, Rhodes used names, social security numbers and other PII belonging to residents of St. Paul’s, without lawful authority, to obtain and maintain electric and gas service, water service, and satellite television service at his home.
The investigation was conducted by the United States Postal Inspection Service. The prosecution was handled by Assistant U.S. Attorney Norman R. Smith.
Cash Store Robber DetainedRead the Press Release
On October 9, 2018, Algernon C. Perkins, of Alorton, Illinois had an initial appearance on a two-count criminal complaint charging him with Interference with Commerce by Robbery for his alleged involvement in the robbery of two locations of the Cash Store within the Southern District of Illinois, United States Attorney Steven D. Weinhoeft announced today. If convicted of Interference with Commerce by Robbery, Perkins faces a term of imprisonment of up to twenty years and a maximum fine of $250,000 on each count. Perkins has been detained pending the outcome of these proceedings.
A criminal complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Highland Police Department, the Salem Police Department, the Taylorville Police Department, and the United States Marshals Service.
Benton Man Sentenced to Federal Prison for Defrauding Southern Illinois HealthcareRead the Press Release
Cary E. Mosley, 48, of Benton, Illinois, has been sentenced to 18 months in federal prison for defrauding his former employer, Southern Illinois Healthcare ("SIH"), Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced today. A federal grand jury had previously returned an indictment charging Mosley with mail and wire fraud on January 4.
Mosley was employed as the Manager of SIH’s Radiation Oncology Department. From at least December 2006 until July 2013, Mosley held a second job with Q.E.D. Medical Physics, Inc. ("QED"). QED, which is based in Lebanon, Tennessee, is a contractor that provides support services for radiation oncology departments operated by smaller hospitals.
Mosley pled guilty on June 13, 2018, and admitted that he was paid by QED for work he allegedly performed at SIH. Specifically, Mosley admitted making entries in QED’s electronic timekeeping system which falsely claimed he had performed work at SIH which he had not actually performed. The effect was that Mosley caused SIH to pay him twice: once through his SIH salary and again through QED. Based upon Mosley’s fraudulent timekeeping entries, QED submitted invoices to SIH which were falsely inflated by the amount of time Mosley claimed.
Mosley concealed his fraud scheme by altering the documents that were sent to SIH’s Accounts Payable Department in support of the QED invoices. Each month, QED sent to SIH an "Hours and Details" sheet, which identified the QED employees who had worked at SIH, the work they had performed, the number of hours they had worked, and the dates they had worked. During the initial portion of his scheme, Mosley altered the "Hours and Details" sheets by removing his name and inserting the names of other QED employees. During the latter portion of his scheme, Mosley simply discarded the "Hours and Details" sheets before the QED invoices were sent to SIH’s Accounts Payable Department.
Mosley’s fraud against SIH lasted from December 2006 through July 2013. During that time frame, Mosley was paid over $500,000 by QED for work he fraudulently claimed he had performed at SIH.
During Mosley’s sentencing hearing, United States District Judge Staci Yandle observed that Mosley had not committed his crimes out of economic necessity but simply out of "greed. Pure, unadulterated greed." The judge also noted that it was important to send a message that white collar defendants who commit serious crimes will not be able to walk away from their offenses with a mere "slap on the wrist."
In addition to the 18 month term of incarceration, Judge Yandle also sentenced Mosely to serve three years of supervised release, with his first year to be spent on home confinement with electronic monitoring, and to pay restitution to SIH in the amount of $1,210,865.
The case was investigated by agents from the Springfield Division, Fairview Heights Resident Agency, of the Federal Bureau of Investigation. Both SIH and QED cooperated with the investigation. The case was prosecuted by Assistant United States Attorney Scott A. Verseman.
Former Bassist for the Ataris Pleads Guilty to Defrauding Thousands in Nationwide Telemarketing Real Estate ScamRead the Press Release
The former bass player for the rock band, The Ataris –best known for their 2003 hit cover of Don Henley’s "The Boys of Summer" – pleaded guilty earlier today to a charge of conspiracy to commit mail and wire fraud. Michael S. Davenport, 50, of Santa Barbara, California, appeared at the federal district courthouse in East St. Louis, Illinois, and admitted to owning and operating a telemarketing business that defrauded thousands of would-be renters and home-buyers throughout the United States from 2009 to 2016. Davenport’s Santa Barbara-based business changed names several times but was known variously as MDSQ Productions LLC, Housing Standard LLC, Anchor House Financial, American Standard, American Standard Online, and Your American Standard. Court documents simply refer to the business as "American Standard."
As part of his guilty plea, Davenport admitted that American Standard posted ads on Craigslist listing certain houses for sale or rent at very favorable prices, when, in fact, the houses described in the ads didn’t exist. Consumers who responded to the ads were told they would have to purchase American Standard’s list of houses before they could see any additional information. Consumers were also told that the houses on American Standard’s list were in "pre-foreclosure," that they could purchase the properties by simply taking over the homeowners’ mortgage payments, and that the deeds to the homes would then be transferred into the customers’ names. The $199 fee that American Standard charged to access the list was purportedly to cover the cost of title searches and deed transfers. No matter what area of the country the consumer lived in, American Standard salespersons told them that the list contained numerous pre-foreclosure properties available in their area.
After consumers paid the $199 fee, they learned that the houses on American Standard’s list were not actually available for purchase. A substantial number of the addresses contained on the list were fictional, or there were simply no houses at those locations. In numerous other instances, the houses were not in pre-foreclosure or any financial distress and were not available to be purchased at below-market prices. If an American Standard customer asked for more
information about a specific house advertised on Craigslist, the company’s customer service department always told them that the house was no longer available.
Davenport acknowledged in court that his conspiracy and scheme to defraud operated from approximately January 2009 through at least October 5, 2016, over which time American Standard defrauded more than 100,000 people. The victims were located in all 50 states and the District of Columbia. Over 100 victims of the scam were located within the Southern District of Illinois, spread across 22 counties, with multiple victims in both St. Clair and Madison counties. American Standard’s list included 534 houses located in Southern Illinois. All told, the scheme took in more than $25 million.
Earlier this year, three of Davenport’s former employees also pleaded guilty in the Southern District of Illinois to participating in the American Standard fraud conspiracy. Mark A. Phillips (50) and Semjase E. Santana (37) were salespersons at American Standard’s headquarters in Santa Barbara, California. Carlynne L. Davis (33) was a salesperson in the company’s Lompoc, California branch office. All three are currently awaiting sentencing.
Criminal charges are also still pending against Cynthia L. Rawlinson, 51, of Santa Barbara, who is named as a co-defendant in Davenport’s indictment. Rawlinson allegedly started out as a salesperson but was later promoted to the sales manager position for American Standard’s Santa Barbara office. Rawlinson’s trial is set to begin on November 5, 2018, at the federal courthouse in East St. Louis, Illinois.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Davenport’s sentencing is set for December 28, 2018, at 10:00 a.m., in East St. Louis. Under the federal SCAMS Act, because the crimes involved telemarketing and victimized ten or more people over the age of 55, Davenport could receive as much as 30 years imprisonment and a fine of up to $250,000. He may also be ordered to pay restitution to his victims. Davenport’s plea agreement requires him to forfeit $853,210.11 taken from his merchant processing accounts, as well as $79,000 in cash that was seized from him last July as he was boarding a plane in Little Rock, Arkansas.
This case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The Office of the Honorable Joyce E. Dudley, District Attorney for Santa Barbara County, and the Santa Maria Office of the FBI have provided substantial assistance in the investigation. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Jury Convicts Federal Inmate Who Filed Bogus Involuntary Bankruptcy Petitions Against Warden, Prison OfficerRead the Press Release
A federal inmate housed within the Communications Management Unit (CMU) at the U.S. Penitentiary in Marion, Illinois has been found guilty of filing fictitious involuntary bankruptcy petitions against federal prison officials. Kurt F. Johnson, 55, was convicted by a jury after a three-day trial in Benton, Illinois. The charges against Johnson were originally brought in a four-count federal indictment returned in July 2018.
The evidence at trial established that, on January 8, 2018, with the assistance of persons outside the prison, Johnson succeeded in filing false involuntary bankruptcy petitions against the prison warden and an officer at the prison. The bogus petitions alleged that each victim was indebted to Johnson in the amount of $20 billion, owing to a judgment Johnson claimed to have obtained from the International Court of Justice (also known as the World Court). As part of the scheme, Johnson purportedly canceled $1 billion of the supposed debt and then filed forms with the Internal Revenue Service showing the canceled debt as unreported income for his victims.
The mere filing of the fictitious claims resulted in both victims receiving solicitation letters from credit counseling services and loan companies based upon their supposed bankruptcy. Once the fraud was discovered, the United States quickly moved to seal the proceedings to prevent further damage to the victims’ reputations.
At trial, the United States presented evidence that Johnson has a history and pattern of harassing judges, court personnel, and Bureau of Prisons employees through the filing of fictitious claims. Johnson eschewed appointed counsel and represented himself at the trial, testifying in his own defense that he genuinely believed the World Court had awarded him a default judgment for $20 billion on account of his placement in the CMU. The jury deliberated for approximately 40 minutes before returning guilty verdicts on all four counts.
Johnson is currently serving out the last decade of a 300-month sentence for an unrelated fraud conviction in the Northern District of California. His underlying crime involved a nationwide debt elimination scheme that raked in over $6 million.
Sentencing is set for January 3, 2019, at 10:00 a.m. at the federal courthouse in Benton. By statute, Johnson could receive as much as 20 additional years in prison, which may be imposed to run consecutively to the time he is already serving.
"I am grateful to U.S. Attorney Weinhoeft and our law enforcement partners who serve on the Southern District of Illinois Bankruptcy Fraud Working Group for their strong commitment to combating fraud and abuse in bankruptcy cases, as evidenced by this prosecution," stated Nancy J. Gargula, U.S. Trustee for Southern and Central Illinois and Indiana (Region 10). The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Indiana, and Peoria, Illinois.
The case was investigated by the Federal Bureau of Investigation, with substantial assistance from the Federal Bureau of Prisons. Assistant United States Attorney Michael J. Quinley is prosecuting the case.
Four Charged with Southern Illinois Meth ConspiracyRead the Press Release
Four people have been charged with conspiring to distribute methamphetamine in southern Illinois, United States Attorney for the Southern District of Illinois Steven D. Weinhoeft announced today. Scott A. Carnell, 36, of Pacific, Missouri, Jarrett C. Hood, 36, of Walsh, Illinois, Kayla S. Kempfer, 30, of Marissa, Illinois, and Jordan D. Vuichard, 32, of Sparta, Illinois, are named defendants in a one-count indictment charging conspiracy to distribute more than 50 grams of methamphetamine. The indictment, which was returned by a federal grand jury earlier this month, alleges that the offense occurred between 2017 and August 2018, in Jackson, Randolph, and St. Clair Counties.
Kempfer and Hood made their initial appearances in federal court on September 19 and September 26, respectively. They are both being held without bond pending a November 26 jury trial. Carnell and Vuichard have their initial appearances scheduled for October 4 at the federal courthouse in Benton, Illinois.
By law, if convicted, the defendants face a minimum of five years in prison and could receive as much as 40 years imprisonment and fines of up to $5 million.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Sparta Police Department, New Athens Police Department, Marissa Police Department, St. Louis County Police Department and the Federal Bureau of Investigation. The Randolph County State’s Attorney’s Office also assisted in the investigation.
FCI-Greenville Inmate Pleads Guilty to AssultRead the Press Release
A former inmate at the Federal Correctional Institution in Greenville, Illinois, pled guilty earlier today to assaulting a fellow inmate. Michael Griesinger, 23, admitted striking the victim – identified only as J.B. in court records – with his fists. As a result of the assault, J.B. suffered a broken jaw.
Griesinger’s sentencing is scheduled for December 18, 2018, in East St. Louis, Illinois. He faces up to 10 years on the charge, in addition to the time remaining on his original sentence.
The case was investigated by the Federal Bureau of Prisons’ Special Investigations Section. The case is assigned to Assistant United States Attorney Angela Scott.
O'Fallon Bank Robbery Suspect Charged, Remanded to Federal CustodyRead the Press Release
The man accused of robbing the First National Bank of Waterloo in O’Fallon, Illinois, on September 6th is now in federal custody, the United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. Daryl A. Smith, 48, of Cahokia, Illinois, was arrested at a friend’s home on Tuesday based upon a federal complaint and arrest warrant issued on September 11.
Earlier today, a federal grand jury in East St. Louis, Illinois, returned a one-count indictment charging Smith with the bank robbery. If convicted, Smith faces a maximum term of 20 years imprisonment.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Smith made his initial appearance at the federal courthouse in East St. Louis this morning and pleaded not guilty. He was ordered detained until trial, which is currently set to begin on November 5.
The investigation was conducted by the O’Fallon Police Department and the Federal Bureau of Investigation.
Jerseyville Man Sentenced to 6 Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Christopher Scott Fry, 48, of Jerseyville, Illinois was sentenced today to serve six years in federal prison for conspiracy to distribute methamphetamine, the United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced. Fry pled guilty to the charges in June and has been in federal custody since January 23.
Documents filed in the case establish that, from March to late September 2016, Fry supplied Robert W. Schrader with approximately one pound of methamphetamine every month. Schrader, who is also under federal indictment, would allegedly then sell the meth to others throughout the Madison and Jersey County area. Schrader’s case is still pending, and he is presumed innocent of the charges unless or until proven guilty beyond a reasonable doubt.
As part of his sentence, Fry was ordered to forfeit $15,000 in U.S. currency and serve a five-year term of supervised release following his imprisonment.
The investigation was conducted by the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI), the South Central Illinois Drug Task Force (SCIDTF), and the Jersey County Sheriff’s Department.
Alorton Village Administrator Pleads Guilty to Making False Statement to the Southern Illinois Public Corruption Task ForceRead the Press Release
Lamar Gentry, age 71, of East St. Louis, Illinois, pled guilty today in federal district court to making a false statement to the Southern Illinois Public Corruption Task Force.
Exactly one year ago, on September 19, 2017, the Task Force first became involved in the investigation that would eventually lead to Gentry’s arrest. At the time, police officers in St. Louis were investigating reports that gun shots had been fired from a white Chevrolet Impala. When a car matching the vehicle’s description was spotted, officers initiated a traffic stop. Two occupants jumped out of the vehicle and fled on foot. The license plates on the vehicle were municipal plates assigned to Gentry, who was then and continues to be the administrator for the Village of Alorton.
During an interview on October 13, 2017, Gentry told federal agents that the white Impala had previously been sold and partially paid for by the purchaser, when in fact he knew that the vehicle had not been partially paid for, there was no completed bill of sale and the vehicle had not been sold.
Sentencing is scheduled for December 18, 2018. The offense carries a maximum sentence of up to 20 years of imprisonment, three years of supervised release, and a fine of up to $250,000.
The investigation was conducted by the Southern Illinois Public Corruption Task Force, which consists of agents with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and the Illinois State Police. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith. Citizens are encouraged to report suspicions of public corruption to the Southern Illinois Public Corruption Task Force Tip Line at (618) 589-7373.
Mexican National Sentenced for Trafficking Drugs and GunsRead the Press Release
Ramon X. Nunez-Polanco, 59, a citizen of Mexico and lawful permanent resident of the United States, has been sentenced to 80 months in federal prison for his participation in a drug conspiracy and firearms trafficking conspiracy, U.S. Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. The sentencing follows Nunez-Polanco’s guilty plea earlier this year to conspiracy to distribute and possess with intent to distribute controlled substances (cocaine and methamphetamine) and conspiracy to transfer a firearm to a previously convicted felon.
According to court documents, during August and September 2016, Nunez-Polanco transported cocaine from the Central District of California to North Carolina and the Eastern District of Wisconsin in a semi-tractor trailer unit containing a non-factory compartment for concealing the drugs. He also transported drug-trafficking proceeds and firearms from the Eastern District of Wisconsin back to the Central District of California, all at the direction of a drug trafficking organization operating in the Central District of California, the Eastern District of Wisconsin, North Carolina, and the Southern District of Illinois. Nunez-Polanco was arrested on September 7, 2016, in the Southern District of Illinois in possession of firearms, ammunition, and firearm magazines he was transporting from the Eastern District of Wisconsin to the Central District of California.
Information leading to the charges against Nunez-Polanco was obtained in an investigation conducted by the Bureau of Alcohol, Tobacco Firearms and Explosives (ATF). The case is being handled by Assistant United States Attorney Kit Morrissey.
"The Drug Llama" Faces Federal Indictment and Mandatory Minimum Sentence for Distributing Fentanyl on Dark WebRead the Press Release
The U.S. Attorney for the Southern District of Illinois Shines a Light into the Dark Web
A San Diego resident has been indicted in the Southern District of Illinois for conspiring to distribute fentanyl throughout the United States via the "dark web," U.S. Attorney Steven D. Weinhoeft announced today. The charges carry a mandatory minimum 10 year prison sentence.
The indictment alleges that Melissa Scanlan, 31, of San Diego, California, who is known on the dark web as "The Drug Llama," conspired to distribute misbranded fentanyl pills throughout the United States. Fentanyl is a highly addictive and oftentimes lethal opioid painkiller. According to the indictment, the fentanyl distribution conspiracy lasted from at least October 1, 2016, and continued until August 2, 2018. The indictment also alleges that Scanlan was part of an international money laundering conspiracy.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Scanlan was arrested in San Diego and made her first court appearance in the U.S. District Court for the Southern District of California on September 6, 2018. At her detention hearing on Monday, September 17, 2018, prosecutors alleged that Scanlan was responsible for shipping over 50,000 fentanyl pills across the country, including into southern Illinois. Scanlan was ordered detained based on risk of flight and danger to the community pending her removal to the Southern District of Illinois to face charges.
The dark web is a part of the internet that is unreachable by traditional search engines and web browsers. Websites on the dark web have complex web addresses generated by a computer algorithm and must be accessed using special software that is capable of connecting to "The Onion Router" network, or "TOR" for short. The TOR network is encrypted and routes internet traffic dynamically through a series of computers around the world, concealing the true Internet Protocol (IP) addresses of the computers accessing the network and thereby making internet use virtually anonymous. This perceived anonymity has led to a proliferation of criminal activity on dark web
marketplaces, like "Dream Market," where users can find vendors offering illegal goods and services for sale.
The indictment against Scanlan alleges that she conspired with others to operate an illegal drug distribution business on one of those dark web marketplaces using the moniker "The Drug Llama." It is further alleged that Scanlan and her co-conspirators distributed more than 400 grams of fentanyl throughout the United States.
This case was part of a months-long, coordinated national operation involving the Food and Drug Administration Office of Criminal Investigations (FDA), the Drug Enforcement Administration (DEA), the United States Postal Inspection Service, the Department of Homeland Security (HSI), United States Customs and Border Protection (CPB), the United States Attorney’s Office for the Southern District of California, and the United States Attorney’s Office for the Southern District of Illinois.
"The dark web is a dangerous underworld where anonymous web browsers and cryptocurrencies combine to create the perfect breeding ground for criminal activity," said United States Attorney Steven D. Weinhoeft. "We will continue to shine light into the dark web to expose those who lurk in the shadows of the internet." Weinhoeft credited the leadership of the Federal Drug Administration for dedicating technical resources to further this important opioid investigation.
"The dark web is a virtual marketplace for drug dealers and other criminals who are seeking the anonymity that only the digital world can provide," said U.S. Attorney Adam Braverman for the Southern District of California. "But there’s nowhere we won’t go to find them, particularly when fentanyl is involved and lives are at stake. The key to success is relentless pursuit and collaboration with our law enforcement partners around the country."
"Illegal opioid distribution and the resulting overdoses and deaths are an enormous national crisis," said FDA Commissioner Scott Gottlieb, M.D. "Our agency will continue to disrupt and dismantle illegal prescription drug distribution networks that misuse the internet at the expense of public health and safety."
"The Drug Enforcement Administration, along with our local, state and federal partners will continue to work relentlessly to track down those who traffic in pharmaceutical narcotics illegally," said Special Agent in Charge William J. Callahan of the DEA St. Louis Division. "Pharmaceutical narcotics are meant to be taken under the supervision and guidance of a medical professional and are not safe outside of that medical relationship. As a community we must work together to educate and prevent the misuse and abuse of pharmaceutical narcotics and as a law enforcement agency we will continue to track down traffickers who believe they can hide behind anonymity on the dark web."
U.S. Attorney Weinhoeft recognized the U.S. Attorney for the Southern District of California, FDA, DEA, HSI, CPB, the U.S. Postal Inspection Service, and other state and federal partners for their work in the investigation. The case is being prosecuted by Assistant United States Attorney Derek J. Wiseman.
Federal Inmate Convicted After Knife Attack at FCI-GreenvilleRead the Press Release
Federal inmate Detrick L. Layfield, 40, has been found guilty of assault with a dangerous weapon intending bodily harm after attacking a fellow inmate at the Federal Correctional Institute in Greenville, Illinois. The conviction comes after a two-day federal jury trial in East St. Louis, Illinois, where Layfield was also found guilty of possessing a contraband weapon in the prison and attempting to obstruct justice. The charges against Layfield were originally brought in a federal indictment returned in October 2017.
The evidence at trial established that, on September 1, 2017, Layfield assaulted a fellow inmate with an improvised weapon (a sharp object known as a "shank"). The inmate was identified in court documents only as "S.D." Afterward, Layfield enlisted two other inmates in an attempt to conceal the whereabouts of the shank so it couldn’t be used against him in the federal prosecution. One of the inmates, however, revealed the location of the shank during an interview. Shanks and other weapons are considered prison contraband, possession of which constitutes a separate offense.
At the time of the attack, Layfield was incarcerated based on a federal conviction out of the Western District of Kentucky. He was scheduled to be released in July 2019. Sentencing is set for December 14, 2018. By statute, Layfield could receive as much as 35 years in prison for the three offenses.
The case was investigated by the Bureau of Prisons’ Special Investigations Section and the Federal Bureau of Investigation. Assistant United States Attorney Angela Scott is prosecuting the case.
East Saint Louis Man Lands 20-Year Prison Sentence for Coaine Trafficking ConspiracyRead the Press Release
Emil D. Lewis, a/k/a "E," 49, of East Saint Louis, Illinois, has been sentenced to a 240-month term in federal prison for conspiring to distribute cocaine and cocaine distribution, United States Attorney for the Southern District of Illinois Steven D. Weinhoeft announced today. Lewis previously pleaded guilty to a four-count indictment charging the same.
Evidence at the plea and sentencing hearings established that the illicit conspiracy took place between December 25, 2016, and September 6, 2017. Over the course of the conspiracy, Lewis was responsible for distributing more than 150 kilograms of cocaine.
Evidence in support of this prosecution was obtained in an investigation conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. The investigation was conducted by the Drug Enforcement Administration and the Internal Revenue Service.
Convicted Felon Headed Back to Prison for Firearm OffenseRead the Press Release
Tristan Mack, 41, of East St. Louis, Illinois, has been sentenced to 46 months in prison for knowingly possessing a gun after sustaining a felony conviction, Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced today. United States District Judge Nancy J. Rosenstengel handed down the sentence, which includes a three-year term of supervised release. Robinson also agreed to forfeit the firearm he illegally possessed.
Court proceedings revealed that on the evening of December 16, 2017, an Illinois State Police Trooper stopped a car driven by Mack in East St. Louis for speeding and running a stop sign. After noticing an odor of cannabis coming from the vehicle, the trooper conducted a search and discovered a loaded PA-63 semi-automatic firearm in the rear pouch of the driver’s seat, along with 36 grams of cannabis and six ecstasy tablets.
At the time of his arrest, Mack had a prior felony conviction for armed carjacking, an offense for which he was still on federal supervised release after having served 20 years in prison. As a result of his arrest in this case, Mack’s supervised release was revoked and he was sentenced to 21 months imprisonment, a term that will run concurrently with his 46 month sentence.
The case was investigated by the Illinois State Police and prosecuted by Assistant United States Attorney Christopher Hoell.
Virginia Resident Sentenced to 9 Years in Prison for Robbery of a Gas Station in Nashville, IllinoisRead the Press Release
Jordan T. Macbeth, 19, a resident of Culpepper, Virginia, was sentenced today in federal court for robbing the BP gas station in Nashville, Illinois. During the January 31 robbery, Macbeth brandished a loaded firearm and pointed it at the clerk. He was later caught, charged, and convicted after pleading guilty to a two-count federal indictment.
Macbeth received a nine-year sentence – two years for committing a robbery affecting interstate commerce (known as a Hobbs Act robbery) and an additional seven years for brandishing a firearm during a crime of violence. Macbeth was also ordered to serve a three-year term of supervised release and to pay the gas station $461.79 in restitution.
The case was investigated by the Nashville, Illinois, Police Department, the Washington County, Illinois, Sheriff’s Office, the United States Army Criminal Investigations Command, and the Federal Bureau of Investigation. The case was prosecuted byAssistant United States Attorney Angela Scott.
Registered Sex Offender Sentenced to 25 Years in Prison for Enticement of a Minor and Possession of Prepubescent Child PornographyRead the Press Release
Shawn Lyberger, 35, of Kell, Illinois, was sentenced today in federal court to 25 years in prison for inducing a 10-year-old boy to engage in sex acts over webcam and possession of child pornography depicting prepubescent minors. Lyberger previously pled guilty to a three-count superseding indictment charging the same conduct, which included a charge for committing the offenses while being a registered sex offender. Lyberger has a prior federal conviction for possession of child pornography in the Eastern District of Missouri dating back to 2003.
During the proceedings, Lyberger admitted that in December 2015, while he was a registered sex offender, he went on the website Omegle and began chatting with the victim – identified in court documents only as T.W., a resident of England. During their initial chat, the defendant engaged in a sex act on webcam. At Lyberger’s suggestion, they later switched over to Skype, whereupon the defendant induced T.W. to perform sex acts on webcam as well. Lyberger admitted knowing at the time that the boy was only 10 years of age.
At some point, T.W. tried to end the sexual aspect of their chats and, specifically, to no longer transmit sexually explicit pictures to Lyberger. However, Lyberger told T.W. that this was not acceptable, and that T.W. had to continue sending him images of his genitals or Lyberger would make him a "cyber boy" – a threat to post T.W.’s explicit videos online for others to see. T.W. became afraid and told his mother, who notified the police.
On July 6, 2016, a federal search warrant was executed at the residence the defendant shared with his mother. A laptop computer and a USB storage device belonging to Lyberger were seized and found to contain approximately 77 child pornography images and 200 child pornography videos respectively. All of the contraband files were found in unallocated space, signifying that they had been deleted. At that time, the defendant provided a voluntary audiotaped statement in which he admitted to chatting online about child pornography and to chatting with minors over Skype and Omegle. He also admitted that he had solicited underage males to perform sex acts online, but confessed only to viewing the webcam transmissions, not recording them. None of the images or videos recovered during the search depicted T.W.
Because he was a registered sex offender at the time of the offenses, federal law mandated a 10-year term of imprisonment to run consecutive to any sentence Lyberger received for his enticement conviction. His prior conviction from 2003 also meant that Lyberger faced a 10-year mandatory minimum prison sentence for possessing child pornography. In addition to his 300- month prison term, Lyberger was also sentenced to a lifetime term of supervised release.
Today’s sentencing hearing was the culmination of an investigation conducted by Interpol, officials from the United Kingdom, the Marion County Sheriff’s Department, the Woodland, California, Police Department, the Federal Bureau of Investigation, and the Department of Homeland Security - Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Angela Scott.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Saline County Resident Sentenced to 13 Years Behind Bars for Federal Methamphetamine OffensesRead the Press Release
Krystle R. Sands, 33, of Harrisburg, Illinois, was sentenced today to 156 months in federal prison for methamphetamine offenses, United States Attorney for the Southern District of Illinois Steven D. Weinhoeft announced. Sands previously pled guilty to a two-count indictment charging her with conspiracy to distribute more than 50 grams of methamphetamine and conspiracy to possess pseudoephedrine knowing that it would be used to manufacture methamphetamine. In addition to her prison term, Sands was ordered to serve eight years on supervised release and pay a $400 fine.
Evidence at the plea and sentencing established that, between January 2015 and April 2017, Sands was involved with co-defendant Robert Humphrey and others in the manufacture and distribution of methamphetamine in Jackson, Williamson, and Saline Counties. At sentencing, the district judge found that Sands was responsible for the possession of over 200 grams of pseudoephedrine and the distribution of more than a kilogram of "ice." Ice is methamphetamine which has a purity level of at least 80%. Co-defendant Humphrey was previously sentenced to 200 months incarceration for his role in the methamphetamine offenses.
The investigation was conducted by the Jackson County Sheriff’s Office and Elkville Police Department. The Southern Illinois Drug Task Force and Jackson County States Attorney’s Office also assisted in the investigation.
Williamson County Man Lands 5-Year Prison Sentence for Federal Firearm ViolationRead the Press Release
Bobby A. Commons, a/k/a "Blood," 44, of Herrin, Illinois, was sentenced this week to a 60-month term in federal prison for a firearm offense, United States Attorney for the Southern District of Illinois Steven D. Weinhoeft announced today. Commons previously pled guilty to a one-count indictment charging unlawful possession of a firearm by a convicted felon.
Evidence at the plea and sentencing hearings established that, on November 22, 2017, Commons threatened another person using a stolen rifle and discharged three rounds while inside his Herrin residence. Because he has a prior felony conviction, federal law prohibits Commons from possessing firearms.
The investigation was conducted by the Southern Illinois Enforcement Group, the Herrin Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Williamson County States Attorney’s Office also assisted in the investigation.
Waterloo Man Indicted for Child PornographyRead the Press Release
Mark Brueggemann, 60, of Waterloo, Illinois, has been charged with knowingly receiving a video depicting child pornography, Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced today. The one-count indictment alleges that the offense occurred in Waterloo on or about February 15, 2017.
Earlier today, Brueggemann made his initial appearance in federal court. Brueggemann pleaded not guilty to the charge and was released on bond with electronic location monitoring and other special conditions. His trial is currently set for October 23, 2018.
If convicted of the charge, Brueggemann faces at least five years and no more than 20 years in prison, a fine not to exceed $250,000, and a possible lifetime term of supervised release. He may also be asked to make restitution to any identified victims of his offense.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The case is being investigated by the Monroe County Sheriff’s Department and the Springfield Electronic Crime Unit/Southern Illinois Cyber Group of the Secret Service. The prosecution is being handled by Assistant United States Attorney Christopher Hoell.
Jackson County Resident Sentenced for Federal Firearm ViolationRead the Press Release
Anthony I. Hunter, a/k/a "Shug," 29, of Murphysboro, Illinois, was sentenced earlier this week to 84 months in federal prison for a firearm offense, United States Attorney for the Southern District of Illinois Steven D. Weinhoeft announced today. Hunter previously pled guilty to a one-count indictment charging unlawful possession of a firearm by a convicted felon.
Evidence at the plea and sentencing hearings established that, on October 4, 2017, officers from the Jackson County Sheriff’s Office and Murphysboro Police Department approached Hunter to place him under arrest for an active warrant. When the officers searched Hunter incident to arrest, they located a loaded Beretta 9mm pistol in his waistband. Because Hunter has a prior felony conviction, he is prohibited from possessing firearms. At sentencing, Hunter received sentencing enhancements because the firearm was stolen and because Hunter possessed firearms in connection with a drug distribution offense.
The investigation was conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Jackson County States Attorney’s Office also assisted in the investigation.
Ex-Teamsters Union Officials Sentenced to Prison for Embezzlement and FraudRead the Press Release
Scott D. Alexander, 56, and Nancy L. Alexander, 52, from Belleville, Illinois, have each been sentenced to a year in prison as a result of their convictions for embezzlement and theft from a labor union and wire fraud, the United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. Their sentences will be satisfied by six months in prison, to be followed by six months home incarceration with electronic monitoring and three years of supervised release.
From January 1, 2012, through June 30, 2016, Scott Alexander was the president / business agent of the Union Local 50 of the International Brotherhood of Teamsters. His wife, Nancy Alexander, was the Local’s office administrator. During that time, the Alexanders embezzled and converted Union funds by using the Union’s credit card to make personal purchases. They also manipulated their payroll withholdings in order to increase their net pay at the Local’s expense, received more vacation pay than earned, received salary while on vacation, and received additional auto allowance payments.
At their sentencing, the loss to the Teamsters Local 50 was determined to be $66,855.33. Some of the money was repaid prior to sentencing. As part of their sentence, the Alexanders were ordered to pay back $44,576.04 in restitution to the union.
The prosecution is the result of an investigation by the U.S. Department of Labor, Office of Labor Management Standards and the U.S. Department of Labor, Office of Labor Racketeering. The case was prosecuted by Assistant United States Attorney Norman R. Smith.
Pulaski County Woman Indicted for Bankruptcy FraudRead the Press Release
A federal grand jury for the Southern District of Illinois has returned an indictment charging Jessica A. Browning, 44, of Ullin, Illinois (Pulaski County), with two counts of bankruptcy fraud, announced Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois. Browning was indicted as part of the U.S. Attorney’s Office’s continuing effort to crackdown on those who commit fraud in the U.S. Bankruptcy Court for the Southern District of Illinois.
Browning filed a chapter 13 bankruptcy case in the federal bankruptcy court in Benton, Illinois, on March 17, 2014. The indictment charges that, on a document she filed with the bankruptcy court, Browning intentionally concealed the fact that just three weeks before filing bankruptcy she had received a $12,675.47 worker’s compensation award. The indictment further alleges that, at a meeting of creditors in her bankruptcy case, Browning provided false testimony regarding what she did with the funds from her worker’s compensation award.
"I am grateful to U.S. Attorney Weinhoeft and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases, as evidenced by today’s proceedings," stated Nancy J. Gargula, U.S. Trustee for Southern Illinois, Central Illinois and Indiana (Region 10). The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Indiana, and Peoria, Illinois.
Browning is charged with making a false statement under penalty of perjury in a bankruptcy case and making a false statement under oath in a bankruptcy case. Both crimes carry a maximum sentence of five years in prison and a fine of up to $250,000.
The arraignment for Browning will be conducted on September 5, 2018 at 1:30 p.m. at the Federal Courthouse in Benton, Illinois.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The charges resulted from a referral by the U.S. Trustee for Region 10 to the U.S. Attorney for the Southern District of Illinois. The investigation was conducted by agents from the Fairview Heights, Illinois, Office of the Internal Revenue Service – Criminal Investigations, in collaboration with the Southern Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Olney Man Sentenced to 8 Years on Methamphetamine-Related ChargesRead the Press Release
Brandon L. Atwood, 33, of Olney, Illinois, was recently sentenced to 97 months in federal prison on methamphetamine related charges, Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced today. Atwood had previously pleaded guilty to three counts of a federal indictment.
During court proceedings, Atwood admitted that from 2015 to 2017, he conspired with others to knowingly and intentionally distribute methamphetamine in violation of federal law. The total amount of methamphetamine involved in the conspiracy was five (5) grams or more of crystal methamphetamine, commonly referred to as "Ice." Atwood further admitted that he had distributed methamphetamine on two occasions in November 2017. All of Atwood’s crimes were committed in Richland County, Illinois.
The investigation in this case was conducted by the Richland County Sheriff’s Office.
Metropolis Woman Indicted on Methamphetamine-Related ChargesRead the Press Release
Anna Rose Sullivan, 33, of Metropolis, Illinois, was recently indicted on federal methamphetamine related charges, Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced today. The eight-count indictment returned on August 7, 2018, charges Sullivan with intentionally distributing methamphetamine on seven separate occasions between 2017 and 2018, and with possessing with intent to distribute more than five (5) grams of methamphetamine in June 2018. All of the crimes charged in the indictment are alleged to have occurred in Massac County, Illinois.
If convicted, Sullivan faces between five and 40 years imprisonment, a fine of not more than $5,000,000, and supervised release of not less than four years on seven of the eight counts. On the remaining count, Sullivan could receive up to 20 years imprisonment, a fine of not more than $1,000,000, and at least three years of supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
Sullivan made her initial appearance on August 21 and entered a plea of not guilty. Her trial is currently set for October 22, 2018, in Benton, Illinois.
The investigation in this case was conducted by the Federal Bureau of Investigation, the Metropolis Police Department, the Illinois State Police, and the Drug Enforcement Administration.
Jackson County Resident Sentenced for Methamphetamine OffensesRead the Press Release
On August 21, 2018, Robert F. Humphrey, 47, of Elkville, Illinois, was sentenced to 200 months in federal prison for methamphetamine offenses, United States Attorney for the Southern District of Illinois Steven D. Weinhoeft announced today. Humphrey previously pled guilty to a two-count indictment charging conspiracy to distribute more than 50 grams of methamphetamine and conspiracy to possess pseudoephedrine knowing that it would be used to manufacture methamphetamine.
Evidence at the plea and sentencing established that, between January 2015 and April 2017, Humphrey was involved with co-defendant Krystle Sands and others in the manufacture and distribution of methamphetamine in Jackson, Williamson, and Saline Counties. At sentencing, the district judge found that Humphrey was responsible for the possession of 186.96 grams of pseudoephedrine and the distribution of 1.02 kilograms of "ice." Ice is methamphetamine which has a purity level of at least 80%. Humphrey received a sentence enhancement for his reckless endangerment of others during a pursuit with law enforcement. Co-defendant Sands pled guilty to the methamphetamine offenses and is currently being held without bond pending her August 27, 2018 sentencing hearing.
After he is released from prison, Humphrey will spend eight years on supervised release. He was also ordered to pay fines totaling $400.00.
The investigation was conducted by the Jackson County Sheriff’s Office and Elkville Police Department. The Southern Illinois Drug Task Force and Jackson County States Attorney’s Office also assisted in the investigation.
Former Paramedic Supervisor Who Stole Narcotics Out of Ambulances, Replaced Them with Saline Solution, Sentenced to 9 Years in PrisonRead the Press Release
On August 21, 2018, Jason Laut, 41, a resident of O’Fallon, Illinois, and a former paramedic supervisor for MedStar Ambulance Inc., was sentenced to 111 months imprisonment (9 years and 3 months) for stealing and tampering with ambulance narcotic supplies, United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. A jury in East St. Louis, Illinois, previously convicted Laut after a two-week trial on all 38 counts of the federal indictment, which charged Laut with wire fraud, falsifying medical records, aggravated identity theft, and tampering with a consumer product. Laut has been detained since his conviction.
Between January 2013 and May 2015, Laut changed, altered, and falsified documents and records to conceal his theft of two federally controlled substances – fentanyl and morphine – out of MedStar ambulances. Laut’s most egregious conduct concerned fentanyl, an incredibly powerful opioid narcotic used to treat severe pain. Narcotics boxes on ambulances contain only two vials of fentanyl because they are typically used on only the most severely injured trauma patients. Laut tampered with the fentanyl vials by removing the fentanyl with a syringe and replacing it with saline or some other solution. By this method, Laut made it appear as though the vials were still full and unopened, making his theft almost impossible to detect. These altered fentanyl vials were then placed back in the narcotics box and returned to ambulances. In 2015, 26 out of 28 vials on Medstar Ambulances were found to have tampered fentanyl vials.
As a result of this case, the procedures for handling narcotics boxes have changed. But before Laut’s crimes were discovered, narcotics boxes were regularly shared among the ambulance companies in the area, which meant that the vials Laut altered were also reintroduced by unsuspecting pharmacists and paramedics onto ambulances owned and operated by companies other than MedStar. During the proceedings, prosecutors presented 82 such vials that were discovered and removed from active duty ambulances throughout the Southwest EMS Region. Investigators were unable to determine definitively whether or to what extent any patients may have received treatment from the altered vials. However, at Laut’s sentencing, a representative of Memorial Hospital informed the court that paramedics in the field had reported occasions when the fentanyl they were administering appeared to be ineffective at relieving pain.
Representatives from both Memorial and Medstar advised the court that the harm caused by the defendant’s crimes was not just the risk that seriously injured patients received saline instead of fentanyl. They also noted that as a result of Laut’s actions, medical directors were forced to remove fentanyl from ambulances for three years because of diversion concerns. One paramedic advised the court at sentencing that, over those three years, he recalled five patients who could not receive morphine because of allergies. Those patients received virtually no pain relief because the fentanyl had been removed.
Using his administrator access for MedStar, Laut altered records, known as patient care reports, to falsely indicate that controlled substances were given to patients when, in fact, they were not. Laut also made false statements on narcotics logs submitted to Memorial Hospital. Narcotics logs are used by paramedics to record the administration of narcotic drugs, including fentanyl and morphine, while treating patients. To cover his tracks, Laut claimed to have given fentanyl and morphine to patients who did not exist or to patients who did not actually receive the drugs. On at least two occasions, Laut unlawfully used the name of a former doctor at Memorial Hospital on a narcotics log as authorization for administering fentanyl and morphine, when neither was actually administered to the patient.
The theft of the drugs and acts to conceal the theft caused a loss to Memorial Hospital, which was financially responsible for keeping the ambulance narcotics boxes filled.
There is no parole in the federal prison system. After he finishes serving his sentence, Laut will spend three years on supervised release.
The investigation was conducted by the Federal Bureau of Investigation, the Sparta, Illinois Police Department, the Randolph County Sheriff’s Department, and Diversion Investigators of the Drug Enforcement Administration. MedStar Ambulance Inc. in Sparta and Memorial Hospital in Belleville also provided extensive assistance throughout the investigation.
The case was prosecuted by Assistant United States Attorneys Ranley R. Killian and Michael J. Quinley.
Centralia Man Sentenced to 9 Years in Prison for Selling MethRead the Press Release
Bobby J. Bryan, 52, formerly of Centralia, Illinois, was recently sentenced to 108 months in federal prison for distributing and conspiring to distribute methamphetamine, Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced today. Bryan had previously pleaded guilty to a three-count federal indictment that charged him with knowingly distributing methamphetamine in Clay County, Illinois, on two occasions in July 2017, and with conspiring to distribute fifty (50) grams or more of methamphetamine beginning as early as 2015.
The investigation in this case was conducted by the Flora Police Department, the Clay County Sheriff’s Office, and the Illinois State Police Southeastern Illinois Drug Task Force.
Williamson County Resident Sentenced for Methamphetamine-Related OffensesRead the Press Release
On August 15, 2018, Erin K. Wright, a/k/a "Erin Shannon," "Erin Tennyson," and "Erin Atchison," 48, of Creal Springs, was sentenced to federal prison for methamphetamine-related offenses, United States Attorney for the Southern District of Illinois Steven D. Weinhoeft announced today. Wright, who had previously pled guilty to a two-count indictment charging conspiracy to manufacture methamphetamine and possession of pseudoephedrine knowing that it would be used to manufacture methamphetamine, was sentenced to 48 months of imprisonment to be followed by three years of supervised release. Wright was also fined a total of $400.00.
Evidence at the plea and sentencing hearings established that Wright was involved with others in the manufacture and distribution of methamphetamine. At sentencing, the district court found that Wright was responsible for the possession of 86.4 grams of pseudoephedrine and the distribution of 370.7 grams of "ice." Ice is methamphetamine which has a purity level of at least 80 percent. The indictment alleged that the offenses occurred between September 2012 and April 2015, in Franklin, Williamson, and Jackson Counties.
The investigation was conducted by the Southern Illinois Drug Task Force and Southern Illinois Enforcement Group. The Williamson County States Attorney’s Office also assisted in the investigation.
Herrin Resident Pleads Guilty to Robbery of Marion Gas StationRead the Press Release
On August 15, 2018, Travis J. Taylor, 38, of Herrin, Ill., pled guilty to a one-count federal indictment charging Interference with Commerce by Robbery, in violation of the Hobbs Act, United States Attorney for the Southern District of Illinois Steven D. Weinhoeft announced today. Evidence at the plea hearing established that, on April 25, 2018, Taylor robbed the Valero Gas Station in Marion, Williamson County.
Taylor is currently being held without bond pending a November 20, 2018, sentencing hearing. The robbery offense carries a maximum sentence of up to 20 years of imprisonment, three years of supervised release, and a fine of up to $250,000.
The ongoing investigation is being conducted by the Federal Bureau of Investigation. The Marion Police Department, Herrin Police Department, Carbondale Police Department, Murphysboro Police Department, Williamson County Sheriff’s Office, Jackson County Sheriff’s Office, Illinois State Police, Jackson County States Attorney’s Office, and Williamson County States Attorney’s Office are also assisting in the investigation.
Williamson County Man Sentenced for Federal Firearm ViolationRead the Press Release
Reginald L. Cavitt, a/k/a "Reggie," 37, of Marion, Illinois, has been sentenced to federal prison for a firearm offense, United States Attorney for the Southern District of Illinois Steven D. Weinhoeft announced today. Cavitt, who previously pled guilty to a one-count indictment charging unlawful possession of a firearm by a felon, was sentenced to 36 months imprisonment, to be followed by two years of supervised release. He will be credited one month toward his sentence for time served on a related state case. Cavitt was also fined $200 and ordered to forfeit a Taurus, model PT845, .45 caliber pistol to the United States.
Evidence at the plea and sentencing hearings established that Cavitt was selling marijuana out of a Marion residence that he shared with a girlfriend and three young children. On June 26, 2017, officers executed a search warrant at the Marion residence, where they located the loaded .45 caliber pistol, marijuana, cocaine, over $7,600 in cash, a digital scale, drug packaging materials, and additional ammunition. Because Cavitt had previously been convicted of a felony, federal law prohibits him from possessing a firearm.
The investigation was conducted by the Marion Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Williamson County States Attorney’s Office also assisted in the investigation.
Williamson County Man Charged with Methamphetamine OffenseRead the Press Release
On August 16, Kevin W. Page, a/k/a "Dink," 37, of Carbondale, Illinois, made his initial appearance in federal court to face charges of conspiracy to distribute more than 50 grams of methamphetamine. Page was charged in a one-count indictment returned on August 7 by a federal grand jury sitting in Benton, Illinois. The indictment alleges that the offense occurred in Williamson County between April 2017 and July 2018. Page is in federal custody and will be detained without bond pending trial, which is currently set for October 15, 2018.
If convicted, Page faces a sentence of 5 to 40 years imprisonment, no more than four years of supervised release, and a maximum fine of $5,000,000.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group. The Williamson County Sheriff’s Office, Marion Police Department, and Herrin Police Department also assisted in the investigation.
Justice Department, DEA Propose Significant Opioid Manufacturing Reduction in 2019Read the Press Release
The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s "Safe Prescribing Plan" that seeks to "cut nationwide opioid prescription fills by one-third within three years," the proposal decreases manufacturing quotas for the six most frequently misused opioids for 2019 by an average of ten percent, as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability to consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and the current proposed reduction will be sent to those offices.
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs."The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action."
"We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day," said DEA Acting Administrator Uttam Dhillon. "This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine."
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from "legitimate channels of trade" by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
Already, the Justice Department initiative appears to be having an impact in the Southern District of Illinois. The most recent data available for St. Clair County shows a steady decline in opioid prescriptions over the past three years:
At the same time, the district has seen opioid overdoses, and deaths resulting from those overdoses, steadily increasing:
"Opioid addiction is driving the overdose epidemic in this community," U.S. Attorney Steven D. Weinhoeft said, "and reducing access to the most addictive pain killers is an obvious place where we can make an impact. We’re going to continue working on this problem from every angle, including aggressively prosecuting the dealers and the pill mill doctors that perpetuate the cycle of opioid abuse here in the Southern District of Illinois."The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
Dutch National Sentenced to 17 Years for Multiple Fraudulent Investment SchemesRead the Press Release
For more than ten years, Pieter Roor, also known as Pedro Dispenza, 66, of The Netherlands, duped thousands of unsuspecting American investors into sending him money with the promise of large returns. Instead of investing the money, Roor took it for himself. The U.S. Attorney’s Office for the Southern District of Illinois today announces that Roor’s run has come to an end.
On August 16, Senior United States District Judge J. Phil Gilbert sentenced Roor to 17 years in federal prison, U.S. Attorney Steven D. Weinhoeft announced. The sentence comes on the heels of Roor’s conviction earlier this year on two counts of wire fraud and one count of conspiracy to commit wire fraud after a three-day bench trial in Benton, Illinois. In rendering the verdict, Judge Gilbert observed that the evidence the government presented against Roor was "absolutely crushing."
The evidence established that, from 1998 to 2010, Roor and his then-wife, Heleen Potman, operated a series of internet-based Ponzi schemes, which were offered to on-line consumers as high-yield investment opportunities. The schemes had various names, including Oxford Savings Club, AceInvest, MiAmigo Services, Dollar Dazzler, X-Wire, Private Clearing Brokers, the Happy Society, and We Let Your Money Grow. Some promised returns of as much as 4.2% per day, with occasional partial payouts to help string investors along. Through each iteration, as investors learned their investments were not being returned, the phony program would close and re-open under another name.
In total, the fake investment schemes landed Roor and Potman more than $2.5 million.
To conceal the illegal nature of their activity, Roor and Potman regularly incorporated businesses within the United States, as well as other countries throughout the world, including Great Britain, the Netherlands, Panama, and Belize. A multi-national investigation showed that the husband and wife duo routed investor’s money globally through multiple PayPal accounts, on-line currency accounts such as eGold and eBullion, and bank accounts in Latvia, Germany, The Netherlands, Great Britain, the United States, Belize, and Egypt. In furtherance of the scheme, Roor adopted a pseudonym, Pedro Dispenza, and obtained a Belizian passport and driver’s license in that name. One of the victims – identified in court documents as "H.D." – was a resident of Carbondale, Illinois, who invested approximately $150,000 in the scams.
Roor and Potman were both indicted in the Southern District of Illinois in 2010. While that case was pending, the pair were tried, convicted and sentenced for a host of crimes in the Netherlands. After serving their Dutch sentences, they were extradited separately to the United States to face prosecution on the American charges. In 2015, Potman pled guilty in the Southern District of Illinois to her role in the conspiracy and was sentenced to five years in prison. After serving approximately one year in federal custody awaiting the resolution of her case, Potman was transported back to the Netherlands to serve the remainder of her sentence.
In addition to his 204-month prison sentence, Roor was also ordered to pay in excess of $900,000 in restitution to his known victims and to forfeit his Dutch home and $3.2 million in fraudulent proceeds.
The investigation was conducted by the United States Postal Inspection Service, with extensive cooperation from the Dutch Fiscal Information and Investigation Service (FIOD).
Clinton County Man Sentenced for Unlawful Asbestos RemovalRead the Press Release
On August 16, 2018, Joseph Michael Kehrer, 63, was sentenced to five months of imprisonment for failing to notify regulatory authorities before removing asbestos material, United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. Kehrer had previously pled guilty to the charge, which is a felony violation of the federal Clean Air Act. Upon release from imprisonment, Kehrer will be placed on supervised release for a term of one year, with the first five months on home confinement subject to electronic monitoring. The district court also ordered Kehrer to pay a criminal fine of $50,000.
Kehrer admitted that in February and March of 2015, he was the owner of a building formerly as the Okawville Elementary School in Okawville, Illinois (Washington County). During that time and during a renovation activity, Kehrer caused the removal of a combined amount of material containing asbestos greater than 160 square feet. Under such circumstances, Kehrer was required by law to notify regulatory authorities – in this instance, the Illinois Environmental Protection Agency (IEPA) – at least ten working days prior to removing the asbestos material. Kehrer admitted he knowingly failed to provide the prior notification to IEPA.
At sentencing, the district court considered as aggravating factors Kehrer’s role in the offense as a manager or supervisor of the activity, as well as efforts he made to obstruct and impede the administration of justice during the investigation. Specifically, when the Occupational Safety and Health Administration went to inspect the former school, Kehrer told inspectors that the only asbestos present was contained on the pipe insulation. In fact, Kehrer had received an asbestos inspection report in 2014 documenting additional asbestos within the school. Kehrer also denied knowing about the grinding and sanding of the former school floors when, in fact, he was the one who directed the workers to sand and grind.
"This case demonstrates that those who place communities at risk by failing to abide by the law will be held accountable for their actions," said Special Agent in Charge Jeffrey Martinez of EPA’s criminal enforcement program in Illinois.
The investigation is being conducted by the U.S. Environmental Protection Agency’s Criminal Investigation Division and the U.S. Department of Labor, Office of Inspector General. The case is being prosecuted by Assistant United States Attorney William E. Coonan, with the assistance of David P. Mucha, Regional Criminal Enforcement Counsel, U.S. Environmental Protection Agency.
Durable Medical Equipment Provider Lincare Pays $5.25 Million to Resolve False Claims Act AllegationsRead the Press Release
Lincare, Inc., has paid $5.25 million to resolve allegations that it violated the federal False Claims Act and the Anti-Kickback Statute by offering illegal price reductions to Medicare beneficiaries, U.S. Attorney Steven D. Weinhoeft announced today. Headquartered in Clearwater, Florida, Lincare is one of the nation’s largest providers of oxygen and other respiratory therapy services to patients in the home, with approximately 1,000 locations across the United States.
The government alleged that, from 2011 to 2017, Lincare attempted to gain a competitive advantage in the marketplace by unlawfully waiving or reducing co-insurance, co-payments, and deductibles for beneficiaries who participated in a Medicare Advantage Plan operated through a private insurer. Lincare’s practices violated the Anti-Kickback Statute, and further caused the submission of false claims for payments to Medicare.
"Medicare is a promise to protect the elderly and disabled by providing health insurance to those who need it most. This office will aggressively defend Medicare to ensure that entities participating in government sponsored healthcare programs do so lawfully," said U.S. Attorney Weinhoeft. "This settlement reflects our commitment to maintain the integrity of the Medicare program."
"The Office of Inspector General will continue to aggressively investigate and pursue those who defraud public health care programs," said Steven Hanson, Special Agent in Charge Kansas City Regional Office, U.S. Department of Health and Human Services. "Greed at the expense of our most vulnerable citizens will not be tolerated."
The allegations were first brought to light in a 2015 whistleblower lawsuit filed by Brian Thomas, a former billing supervisor at Lincare. The False Claims Act permits private individuals to sue on behalf of the government for false claims and to share in any recovery. The civil lawsuit was filed in the Southern District of Illinois and is captioned United States ex rel. Brian Thomas v. Lincare Inc., Case No. 15-cv-00730-DRH. Mr. Thomas will receive $918,750 from the settlement proceeds.
This matter was handled by the U.S. Attorney’s Office for the Southern District of Illinois, the Justice Department’s Civil Division, and the Department of Health and Human Services Office of the Inspector General.
Red Bud Pharmacy Owner and Pharmacist Pleads Guilty to Healthcare FraudRead the Press Release
Steven P. Gibson, 29, pharmacist and owner of Gibson’s Discount Drugs in Red Bud, Illinois, pled guilty in federal court today to charges that he engaged in a scheme to defraud health care benefit programs by submitting false claims for fraudulent prescription medications to Medicare, Medicaid, and private insurance companies that were not authorized by a physician, nurse practitioner, or a physician’s assistant as required. Sentencing is set for November 27, 2018. Gibson will face up to 10 years in prison, a fine of up to $250,000, and up to three years of supervised release on each of the two counts to which he pled guilty.
During his plea hearing, Gibson admitted that he submitted false and fraudulent claims in the names of family members and pharmacy customers for prescription medication. Gibson often selected expensive prescription medications that he knew would be paid for by insurance companies (including Medicare and Medicaid). One such medication was Creon, a drug used to treat chronic pancreatitis. Another such medication was Pentasa, a drug used to treat ulcerative colitis. A third medication was Hydroxychloroquine, a drug used to treat or prevent malaria.
These and other prescription medications were not authorized by any physician, nurse practitioner, or physician’s assistant and were not dispensed to any of the family members or
pharmacy customers. Instead, these "make believe" prescriptions were created by Gibson for the sole purpose of generating money.
In total, Gibson received payments of over $630,000 from Medicare, Medicaid, and private insurance companies.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General; the Illinois State Police, Medicaid Fraud Control Bureau; the Federal Bureau of Investigation; the Drug Enforcement Administration; United States Postal Inspection Service; and the National Insurance Crime Bureau. The case is being prosecuted by Assistant United States Attorney Michael J. Quinley.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Eldorado Woman Pleads Guilty to Healthcare Fraud ChargeRead the Press Release
On August 9, 2018, Betsy J. Gutowski, 45, of Eldorado, Illinois, pled guilty in federal court to charges that she engaged in a scheme to steal from a federal health care program, Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced today. Prior to her guilty plea, Gutowski’s bond was revoked, and she remains in custody pending sentencing, which is currently set for November 15, 2018. Gutowski faces a maximum possible sentence of 10 years in prison and a $250,000 fine.
During her plea hearing, Gutowski admitted submitting false and fraudulent bills for personal assistant services in the Home Services Program, a Medicaid waiver program designed to allow individuals to stay in their homes instead of entering a nursing home. Gutowski admitted she falsely billed the program between December 1, 2011 and October 15, 2012, when she purportedly rendered personal assistant services to a customer who, in fact, was in a hospital or nursing home at the time. In total, Gutowski improperly billed 349.5 hours of services and obtained $4,036.73 in payments for services not performed.
This prosecution is part of the "Operation Home Alone" initiative. The investigation was conducted by the U.S. Department of Health and Human Services - Office of Inspector General,
and the Illinois State Police - Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney Michael J. Quinley.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Granite City Man Sentenced to More than 15 Years in Prison on Methamphetamine ChargesRead the Press Release
On August 7, 2018, a 31-year old man was sentenced to federal prison for possessing methamphetamine ("ice") with the intent to distribute, United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. Shawn M. Judd, of Granite City, Illinois, was sentenced to 188 months in prison after previously pleading guilty to a two-count indictment in April. During the prosecution, Judd admitted that he had possessed with intent to distribute "ice" in December 2016 and again in January 2017, in Madison County, Illinois. At sentencing, the district court found that Judd had intended to distribute over 500 grams of "ice" in Southern Illinois.
Court records show that Judd had multiple prior convictions for drug-related offenses.
The United States Drug Enforcement Administration conducted the investigation. The case is being handled by Assistant United States Attorney Ranley R. Killian.
Two Randolph County Men Indicted for Methamphetamine OffenseRead the Press Release
On July 18, 2018, two Randolph County residents were indicted for a methamphetamine offense, United States Attorney for the Southern District of Illinois Steven D. Weinhoeft announced today. Lewis D. Higgins, 54, and David Bereitschaft, 39, both of Tilden, were charged in a one-count indictment charging conspiracy to distribute more than 50 grams of methamphetamine. The indictment alleges that the offense occurred between 2016 and June 2018, in Perry and Randolph Counties. Higgins and Bereitschaft made their initial appearances in federal court on August 2, 2018. They were ordered held without bond pending an October 1, 2018, jury trial.
The conspiracy offense carries a maximum penalty of 5-40 years of imprisonment, to be followed by four years of supervised release, and a $5,000,000 fine.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Sparta Police Department, Tilden Police Department, Marissa Police Department, St. Clair County Sheriff’s Office Drug Tactical Unit, Federal Bureau of Investigation, and Drug Enforcement Administration. The Randolph County State’s Attorney’s Office also assisted in the investigation.
Williamson County Man Charged with Bank RobberyRead the Press Release
Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced that today, Arthur W. Bays, 82, of Marion, Illinois, was charged by the United States Attorney in a criminal complaint in United States District Court with one count of bank robbery.
Count 1 of the Complaint charges that on July 26, 2018, in Franklin County, Bays did by force and violence, and by intimidation, take money from the person of another which was in the possession and the care, custody, and control of State Bank of Whittington, located in Benton, Illinois, a financial institution which at the time was insured by the Federal Deposit Insurance Corporation, all in violation of federal law.
Bays had an initial appearance in United States District Court in Benton, Illinois, on July 27, 2018. The Magistrate Judge released Bays on bond pending further proceedings in this matter.
A Criminal Complaint is a charge filed against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt.
If convicted of Count 1, Bays faces up to 20 years of imprisonment and up to a $250,000 fine.
The investigation in this case was conducted by the Federal Bureau of Investigation,
Benton Police Department, West City Police Department, West Frankfort Police Department, Franklin County Sheriff’s Office, and the Marion Police Department.
Edwardsville Resident Sentenced for Bank Robberies in Lebanon and O'FallonRead the Press Release
Marcus J. Thornton, 38, of Edwardsville, Illinois, was sentenced in federal court today to 19 years in prison, for bank robbery and brandishing a firearm during a crime of violence, the United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced. The sentence includes a five-year term of supervised release immediately following Thornton’s imprisonment. Thornton had previously pled guilty to these charges on March 22, 2018 and April 27, 2018.
Documents filed in the U.S. District Court establish that on October 13, 2016, Thornton entered the Regions Bank located at 107 E. Schuetz Street, Lebanon, Illinois, and demanded money from bank tellers. Thornton took a total of $13,710.90 in United States currency before fleeing in a vehicle.
On February 9, 2017, Thornton entered the U.S. Bank located at 400 South Lincoln Avenue, O’Fallon, Illinois, brandished a silver and black semi-automatic handgun, and demanded money from bank tellers. Bank tellers gave $10,720 in United States currency to
Thornton, who then put the U.S. currency into a white plastic bag, and fled in a vehicle.
The prosecution is the result of an investigation by the Federal Bureau of Investigation, Illinois State Police, and Lebanon and O’Fallon Police Departments. The case was prosecuted by Assistant United States Attorneys Daniel T. Kapsak and James G. Piper, Jr.
Mexican Citizen Sentenced to More Than 15 Years in Prison for Drug and Gun ConspiraciesRead the Press Release
Cesar David Grangel, 49, a citizen of Mexico and undocumented resident of California, has been sentenced in federal court for a drug conspiracy and a firearm trafficking conspiracy, United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. The sentencing followed Grangel’s guilty plea on January 25, 2018, for conspiracy to distribute and possess with intent to distribute controlled substances (cocaine and methamphetamine) and conspiracy to transfer a firearm to an illegal alien. The court sentenced Grangel to a total sentence of 188 months imprisonment and five years supervised release on those charges and ordered the sentence to be served concurrently with an identical sentence for conspiracy to possess with intent to distribute methamphetamine, based on a case that arose in the District of Idaho but was later transferred to the Southern District of Illinois.
According to court documents, from February 2015 to November 2016, Grangel served as a manager / supervisor of a drug conspiracy that operated in the Southern District of Illinois, the Central District of California, the District of Idaho, the Eastern District of Wisconsin, and the District of North Carolina. During the course of the conspiracy, law enforcement arrested an individual in the Southern District of Illinois who was transporting a load of firearms and ammunition on a return trip from Wisconsin to California. The firearms and ammunition were discovered in a sophisticated, non-factory compartment within the vehicle and were supposed to have been delivered to Grangel, an illegal alien, at Grangel’s direction. Grangel then intended to transfer the firearms to another person so they could be smuggled into Mexico.
Grangel also managed and supervised the transportation of controlled substances within California, as well as from California to Idaho, Wisconsin and North Carolina.
There is no parole in the federal system. The term of supervised release, which follows
service of imprisonment, will be non-reporting based upon Grangel’s anticipated removal from the United States.
The Bureau of Alcohol, Tobacco Firearms and Explosives conducted the investigation leading to the charges against Grangel. The case is being handled by Assistant United States Attorney Kit Morrissey.