Southern District of Illinois
Press releases recorded for this federal judicial district.
East St. Louis Woman Sentenced for Heroin OffensesRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Ciera McNeal, 29, of East St. Louis, Illinois, was sentenced to 30 months in federal prison for possession with the intent to distribute heroin.
McNeal was charged in a superseding indictment on December 16, 2015, along with two co-defendants: Alfred Vernon Reeves, Jr., 41 of East St. Louis, Ill. and Lacy Snead, 52, of Chicago, Ill. Records filed in court established that the three travelled from Chicago on June 18, 2015, with approximately 150 grams of heroin that was intended to be distributed in the St. Louis metropolitan area.
Reeves was charged with distributing heroin on March 5, 2013, and for participating in a conspiracy to distribute more than a kilogram of heroin over a three-year period of time. Reeves pled guilty on May 6, 2016. Reeves faces up to 20 years in prison for distributing heroin, but he faces a minimum sentence of 10 years to life for conspiracy when he is sentenced on October 14, 2016.
Snead was charged with participating in the same heroin deal that occurred on March 5, 2013, and he was further charged with conspiracy to distribute more than 100 grams of heroin. Snead pled guilty to distribution of heroin and conspiracy to distribute heroin, on September 19, 2016, and he faces a minimum of 5 to 40 years in prison. It is expected that Snead will be sentenced in March of 2017.
The investigation was conducted by agents from the Drug Enforcement Administration and the Madison County Sheriff’s Department. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Cahokia Man Sentenced for Heroin, Methamphetamine and Firearms OffensesRead the Press Release
On Wednesday, October 5, 2016, Jovon C. Dolly, age 37, of Cahokia was sentenced to a term of 12 months and one day in federal prison for Distribution of Heroin, Methamphetamine and Possession of Firearms by a Felon.
Dolly pled guilty to the federal charges on May 19, 2016. At his change of plea hearing, Dolly admitted that he had sold heroin to a police confidential informant in East St. Louis on two occasions in March 2016, and that he had sold methamphetamine on a third occasion. When Dolly was arrested on March 13, 2016, police seized a loaded revolver and a shotgun from his residence in East St. Louis. Dolly admitted that these firearms belonged to him, and that he had been convicted of a felony prior to his arrest on the federal charges.
Dolly has been continuously confined in federal custody since his arrest. The investigation which resulted in Dolly’s arrest and conviction was conducted by officers assigned to the Illinois State Police Metropolitan Enforcement Group of Southern Illinois (MEGSI). The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Belleville Man Sentenced for Armed Robbery of Domino'sRead the Press Release
Sterling D. Gould, 38, of Belleville, Illinois, was sentenced in federal district court, in East St. Louis on September 26 for armed robbery.
Gould was sentenced to 130 months’ imprisonment, as well as 5 years’ supervised release after his prison term, and was ordered to pay $368 restitution and a $300 special assessment. Gould previously pled guilty to charges stemming from a July 12, 2015, armed robbery of the Belleville, Illinois, Domino’s Pizza.
The case was investigated by the Federal Bureau of Investigation and the Belleville Police Department as part of the Metro East Armed Robbery Initiative and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Jury Convicts Shiloh Man of Robbing Gas Station TwiceRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that late Wednesday morning, a federal jury in Benton found Michael L. Jackson, III, 21, of Shiloh, Illinois, guilty of two counts of Interference with Commerce by Robbery and one count of Use of a Firearm in Relation to a Crime of Violence.
Evidence at trial showed that on December 21, 2011, Jackson entered Midwest Petroleum located at 1551 Hartman Lane wielding a knife and demanded money from the clerk. He was wearing a ski mask which covered his entire face, and the clerk was unable to make an identification. He fled southbound on foot and discarded the clothing and ski mask he wore during the robbery in a field adjacent to Midwest Petroleum. On March 13, 2014, Jackson again entered Midwest Petroleum, brandished a firearm, and demanded money and Newport cigarettes from the clerk. He again was wearing a ski mask which covered his entire face, and the clerk was unable to make an identification. He fled southbound on foot and discarded the clothing and ski mask he wore during the robbery in the same field adjacent to Midwest Petroleum. Investigators from the Shiloh Police Department found the clothing after each robbery and collected it as evidence.
In listening to the surveillance videos, Shiloh investigators believed the robber was Jackson based upon the voice. The clothes worn and discarded in the field from both robberies were submitted to the Illinois State Police Crime Laboratory for DNA testing, and Jackson’s DNA was found on all of the clothing tested.
Sentencing has been scheduled for January 24, 2017, in front of the Honorable Stacy Yandle. The investigation was conducted by the Shiloh Police Department. The case was prosecuted by Assistant United States Attorney Laura V. Reppert and Special Assistant United States Attorney Emily Wasserman.
East St. Louis Man Sentenced for Firearm OffenseRead the Press Release
DeShawn C. Carlisle, 20, of East St. Louis, Illinois, was sentenced in federal district court on September 22, 2016, in East St. Louis, Illinois, to 21 months imprisonment, to be followed by three years of supervised release, a $100 special assessment, and a $250 fine, for unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Court proceedings revealed that on December 18, 2015, Carlisle ran from police officers at the Roosevelt Housing complex in East St. Louis, Illinois, after officers attempted to question him. Carlisle had previously been banned from the complex. While running from the officers, Carlisle threw a 9mm semi-automatic weapon into a wooded area. Carlisle was arrested by the officers, and the weapon was then recovered.
This case was investigated by the United States Marshals Service and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
St. Louis Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
James C. Poynor, 38, of St. Louis, Missouri, was sentenced on September 20, 2016, in the United States District Court in East St. Louis, Illinois, for Failure to Register as a Sex Offender, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Poynor was sentenced to 33 months imprisonment, to be followed by 10 years of supervised release, and ordered to pay a $300 fine and a $100 special assessment.
The violation occurred after Poynor signed a Missouri Sex Offender Registration Form on July 2, 2014, then shortly thereafter, traveled to Illinois, where he resided until his arrest on July 12, 2015, without updating his Missouri Sex Offender Registration Form or registering as a sex offender in the State of Illinois. In 2007, a jury in Butler County, Missouri, found Poynor guilty of Child Molestation in the First Degree and Sexual Misconduct Involving a Child.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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."
The case was investigated by the United States Marshals Service and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
East Carondelet Man Pleads Guilty to Distribution and Receipt of Child Pornography and Possession of Prepubescent Child PornographyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on September 20, 2016, Richard Lee Doerr, III, 29, formerly of East Carondelet, IL, pled guilty to a five-count Superseding Indictment charging him with Distribution of Child Pornography (Count 1), three counts of Receipt of Child Pornography (Counts 2-4), and Possession of Prepubescent Child Pornography (Count 5). On Counts 1-4, Doerr faces a term of imprisonment of not less than five but not more than twenty years, a fine up to $250,000, and a term of supervised release of five years to life. On Count 5, Doerr faces a term of imprisonment of not more than twenty years, a fine up to $250,000, and a term of supervised release of five (5) years to life. Doerr has been detained since his arraignment on February 12, 2016. His sentencing date is January 13, 2017, in East St. Louis, Illinois.
The investigation of Doerr began in December 2013 when the National Center for Missing and Exploited Children received a report from Tumbler regarding an individual who had uploaded images that appeared to be child pornography. Law enforcement eventually tracked the e-mail address associated with the Tumbler account to Doerr. In voluntary statements to investigating law enforcement agents, Doerr admitted to downloading, possessing, and sharing child pornography over the internet. A forensic review of Doerr’s cellular telephone and tablet computer revealed numerous images and video files of child pornography.
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."
The case was investigated by the FBI’s Springfield Child Exploitation Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Chicago Man Pleads Guilty to Heroin OffensesRead the Press Release
Lacey Snead, 52, of Chicago, Illinois, pled guilty to distribution of heroin and conspiracy to distribute heroin on September 19, 2016 in U.S. District Court for the Southern District of Illinois.
Snead was indicted on December 16, 2015. He was charged with participating in a heroin deal that occurred on March 5, 2013, and he was further charged with conspiracy to distribute more than 100 grams of heroin for an incident occurring on June 18, 2015. Snead was indicted along with two co-defendants, Alfred Vernon Reeves, Jr. and Ciera McNeal, both residents of East St. Louis, Illinois. Reeves, 41, was also charged with distributing heroin on March 5, 2013, and for participating in a conspiracy to distribute more than a kilogram of heroin over a three-year period of time. McNeal, 27, was charged with conspiracy to distribute more than 100 grams of heroin and also for possessing heroin with the intent to distribute on June 18, 2015.
McNeal pled guilty on January 11, 2016, while Reeves pled guilty on May 6, 2016. Reeves faces up to 20 years in prison for distributing heroin, and he faces a minimum sentence of 10 years to life for conspiracy. McNeal and Snead face a minimum of 5 to 40 years in prison. The United States Sentencing Guidelines must be considered by the Court during sentencing. Reeves will be sentenced on October 7, 2016. McNeil will be sentenced on December 9, 2016. It is anticipated that Snead will be sentenced in March of 2017.
The investigation which resulted in Snead’s arrest and conviction was conducted by the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Steven D. Weinhoeft.Missouri Woman Sentenced for Sex Trafficking ConspiracyRead the Press Release
On September 15, 2016, Robin Thompson, 25, of Park Hills, Missouri, was sentenced for her role in the sex trafficking of a minor last year, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Thompson was sentenced to 20 years in prison, as well as 10 years of supervised release, following her prison term, a mandatory $100 special assessment, and a $1,000 fine. Court proceedings revealed that during a six week period in June and July 2015, Thompson took part in a venture with her husband, co-defendant Marcus Dewayne Thompson, which involved the recruitment, transportation, and advertisement of a minor female from Illinois for commercial sex acts in Florida, Georgia and Louisiana. Along with Marcus Thompson, Robin Thompson took and posted sexually explicit pictures of the minor on an internet site as part of an advertisement for sex with the minor. Thompson also arranged prices, services, and meet locations with customers to engage in sex with the minor.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Daniel T. Kapsak.
Former Senior Living Center Employee in Belleville Pleads Guilty to Mail Fraud and Wire FraudRead the Press Release
Tarkeisha Sayles, 36, of Fairview Heights, Illinois, entered pleas of guilty to mail fraud and wire fraud, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Sayles worked at the Atrium of Belleville, a senior living center, from August 3, 2014 through August 18, 2015 as an Operation Coordinator. Sayles’s job responsibilities included receiving and holding USPS parcels and letter mail for certain residents. The criminal charges are the result of Sayles using the credit card of a resident of the senior living center and applying for a credit card in the name of a resident as part of a scheme to defraud. Sayles faces a prison sentence of up to 40 years, a fine of up to $500,000, and up to 3 years’ supervised release with mandatory restitution. Sentencing is scheduled for February 3, 2017.
The prosecution is the result of an investigation by the U.S. Postal Inspection Service and the Fairview Heights Police Department. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Williamson County Woman Sentenced for Federal Drug ViolationRead the Press Release
On September 7, 2016, Natasha C. Mann, 29, of Carterville, was sentenced for her role in a federal drug conspiracy, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Mann, who had previously pled guilty to a one-count indictment charging conspiracy to distribute MDMA, was sentenced to 60 months imprisonment, 3 years supervised release, and was fined $400.00. MDMA is 3,4-Methylenedioxymethamphetamine, a controlled substance which is commonly referred to as ecstasy. Evidence at the plea and sentencing hearings established that, between December 2015, and March 22, 2016, Mann was involved with others in the distribution of approximately 11,971 ecstasy tablets. The offense occurred in Williamson County.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Department of Homeland Security, Drug Enforcement Administration, Marion Police Department, and U.S. Postal Inspection Service. The Illinois State Police and Williamson County States Attorney’s Office assisted in the investigation.
Owner of Tax King Sentenced to PrisonRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Eyob Tilahun, 30, of St. Louis, MO, was sentenced to 38 months in federal prison for defrauding the United States Treasury. Tilahun’s conviction and sentence arise from his operation of a fraudulent tax return preparation business known as Tax King, LLC.
Tilahun owned and operated several Tax King facilities located in St. Louis, MO. Tilahun also operated a Tax King located at 212 Collinsville Avenue in East St. Louis. On May 20, 2016, Tilahun pled guilty in Federal Court in East St. Louis to a charge of conspiring to submit false claims for tax refunds. As part of his guilty plea, Tilahun admitted that Tax King’s return preparers were trained and instructed to increase their customers’ refunds by falsifying certain information on their tax returns. The false information that was placed on the returns included: (1) false Business Income and Schedules Cs which caused the clients to qualify for larger Earned Income Credits ("EICs"); (2) false wages, which again caused the clients to qualify for larger EICs; (3) false education expenses which enabled the clients to qualify for American opportunity education credits; and (4) false information regarding fuel taxes which qualified the clients for federal fuel tax credits.
Tilahun admitted that he profited from the scheme by charging Tax King’s clients fees which ranged from approximately $400 to $650. The indictment in the case alleges that the return preparers also profited by requesting cash "tips" from the clients of approximately $100 to $1,000.
In addition to the 38 month prison sentence, Tilahun will be ordered to pay restitution to the United States Treasury. The exact amount of restitution will be determined at a later date, but is expected to exceed $2,000,000.
Two employees of Tax King were also sentenced today. Tanesa L. Beverly, 32, of East St. Louis, IL, and Melissa L. Wiley, 35, of Granite City, IL, were both sentenced to two years of probation. Beverly and Wiley both worked as return preparers at the East St. Louis Tax King for a couple of months during 2013. Both had previously pled guilty to participating in the conspiracy and filing false tax returns. In addition to their probation sentences, Beverly was ordered to pay $8,245 in restitution and Wiley was ordered to pay restitution of $13,401.
In addition to Tilahun, Beverly, and Wiley, four other defendants in the case have previously pled guilty. Those defendants are: Mason B. Richmond, 31, of St. Louis, MO; Lakesha R. Wilson, 28, of East St. Louis, IL; Edric A. Russell, 35, of East St. Louis, IL, and Pierre J. Carter, 34, of East St. Louis, IL. Wilson, Russell, and Carter all worked as return preparers at the East St. Louis Tax King. Richmond worked as a return preparer at a Tax King on North Grand in St. Louis.
Tilahun, Beverly, and Wiley are scheduled to be sentenced on September 9, 2016. Sentencing for Richmond will be October 7, 2016. Russell and Carter will be sentenced on January 27, 2017. Wilson’s sentencing hearing is scheduled for February 3, 2017.
The investigation is being conducted by agents from both the Fairview Heights, Illinois, and St. Louis, Missouri Offices of the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman. The United States Attorney’s Office for the Eastern District of Missouri has also prosecuted several return preparers who worked at Tax King locations in St. Louis, MO.
Belleville Man Sentenced for Heroin Conspiracy OffenseRead the Press Release
Kelvin B. Hughes, 30, of Belleville, Illinois, was sentenced on September 8, 2016 in U.S. District Court for the Southern District of Illinois to 5 years in prison and 4 years of supervised release, for conspiracy to distribute heroin in excess of one-hundred grams.
Hughes pled guilty on May 6, 2016. At his change of plea hearing, Hughes admitted that he and co-defendant Urechan Brown sold heroin together in East St. Louis between 2013 and August, 2015. Hughes acknowledged that he sold well over one-hundred grams of heroin (about 3.5 ounces) during that time. Brown pled guilty to the same conspiracy charge on June 3, 2016 and is awaiting sentencing later this month.
The investigation which resulted in Hughes’s arrest and conviction was conducted by the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI). The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
East St. Louis Man Sentenced to Prison for Gun PossessionRead the Press Release
Damian D. Kelly, 21, of East St. Louis, IL, was sentenced today in the U.S. District Court for the Southern District of Illinois to 30 months in prison and 3 years of supervised release on one count of Possession of a Weapon by a Felon. Kelly had been in possession of a .22 caliber revolver and had previously been convicted of Attempted Armed Robbery and Residential Burglary. He was on mandatory supervised release for those offenses when he was caught with the firearm.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and was prosecuted by Assistant United States Attorney Laura Reppert.
Chicago-Area Man Sentenced for Heroin DistributionRead the Press Release
Dwayne K. Thompson, 38, of Oak Park, Illinois, was sentenced on September 7, 2016 in U.S. District Court for the Southern District of Illinois to 121 months in prison and 3 years of supervised release on two counts of Conspiracy to Distribute Heroin and Attempted Distribution of Heroin.
Thompson pled guilty to the federal charges on September 4, 2015. At his change of plea hearing, Thompson admitted that he had supplied heroin for re-sale in Belleville, Illinois to his co-defendants Mario McCarter, Fetara D. McCarter and Ronald G. Murphy between 2013 and 2015. All three of Thompson’s co-defendants were previously sentenced to terms in federal prison for their part in the conspiracy.
The investigation which resulted in the arrests and convictions of Thompson and his co-defendants was conducted by the Drug Enforcement Administration (DEA). The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Former BOP Employee Sentenced to Prison for Providing Contraband to USP-Marion Inmate and Lying to Federal InvestigatorsRead the Press Release
Renee D. Strauss, 42, of Marion, Illinois, was sentenced today in United States District Court in Benton to a term of four months in prison for providing contraband, including cellular telephones, to a USP-Marion inmate and then lying to federal investigators about her actions, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. Strauss previously pled guilty to a four-count information charging her with committing those offenses between June 2015 and September 27, 2015.
Information introduced to support the guilty pleas and sentence showed that at the time she provided the three cellular phones and other contraband to the inmate, Strauss was employed by the Federal Bureau of Prisons as a case manager and correctional officer at USP-Marion. Strauss developed an improper sexual relationship with the inmate that led her to provide him with the contraband. BOP officials learned of Strauss’ misconduct and referred the matter to the United States Department of Justice Office of Inspector General for investigation. Strauss then lied to investigators in an effort to cover-up the fact that she provided the inmate with contraband.
In addition to the term of imprisonment, Strauss was ordered to pay the United States fines and special assessments totaling $345 and was placed on a two year term of supervised release to follow her incarceration. As a part of her guilty plea, Strauss was also required to resign her employment with the BOP
The case was investigated by the United States Department of Justice Office of the Inspector General and was prosecuted by Assistant United States Attorney James M. Cutchin.
St. Louis Man Sentenced for Methamphetamine OffenseRead the Press Release
On August 24, 2016, Gary M. Skinner, 61, of St. Louis, was sentenced for his involvement in a methamphetamine offense, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Skinner, who had previously pled guilty to a one-count superseding indictment charging conspiracy to distribute more than 50 grams of methamphetamine, was sentenced to 121 months imprisonment, 4 years supervised release, and was fined $200.00. The offense occurred between May 2015 and October 26, 2015, in Williamson and Massac Counties. Evidence at the plea and sentencing hearings established that Skinner was involved with co-defendant Brandon L. Watson, a/k/a "Dubb," and others in distributing methamphetamine, in the form of "ice." Ice is methamphetamine which has a purity level of at least 80%. Skinner was delivering multi-ounce amounts of ice to Watson for distribution in the Metropolis area. On October 26, 2015, Skinner’s vehicle was stopped on I-57 in Williamson County for a traffic violation. During a vehicle search, officers located over 200 grams of ice, which Skinner was going to deliver to Watson in Metropolis. Later laboratory analysis confirmed that the ice had purity levels between 98% - 100%. At sentencing, the district court determined that Skinner was responsible for the distribution of more than 907 grams of ice. Co-defendant Watson was previously sentenced to 151 months imprisonment for his role in the methamphetamine conspiracy.
The investigation was conducted by the Southern Illinois Enforcement Group, Illinois State Police, and Drug Enforcement Administration. The Massac County States Attorney’s Office also assisted in the investigation.
Randolph County Man Sentenced for Methamphetamine OffenseRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Christopher L. Dallas, 36, of Chester, was sentenced for a methamphetamine offense.
Dallas, who had previously pled guilty to a one-count indictment charging conspiracy to distribute methamphetamine, was sentenced to 120 months in prison, to be followed by three years supervised release. Dallas was also fined $200.00. Evidence at the plea and sentencing hearings established that Dallas was involved with others in the distribution of methamphetamine in the form of "ice." Ice is methamphetamine which has a purity level of at least 80%. At sentencing, the District Court found Dallas was responsible for the distribution of 115 grams of ice. The offense occurred between 2014 and June 2015 in Perry and Randolph Counties.
The investigation was conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Percy Police Department, Steeleville Police Department, Illinois State Police Methamphetamine Response Team, DuQuoin Police Department, Pinckneyville Police Department, and Drug Enforcement Administration. The Randolph and Perry County States Attorney’s Offices also assisted in the investigation.
Former Belleville Resident Pleads Guilty to Receipt of Child Pornography and Possession of Prepubescent Child PornographyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Eric M. Swancutt, 38, formerly of Belleville, IL, pled guilty to a three-count Superseding Indictment charging him with two counts of Receipt of Child Pornography (Counts 1 and 2) and one count of Possession of Prepubescent Child Pornography (Count 3). On Counts 1 and 2, Swancutt faces a term of imprisonment of not less than five (5) but not more than twenty (20) years, a fine up to $250,000, and a term of supervised release of five (5) years to life. On Count 3, Swancutt faces a term of imprisonment of not more than twenty (20) years, a fine up to $250,000, and a term of supervised release of five (5) years to life. Swancutt has been detained since his arraignment on June 24, 2016. His sentencing date is January 27, 2017, in East St. Louis, Illinois.
A forensic review of a laptop computer seized from Swancutt’s residence discovered images and/or video files of child pornography, many of which were of prepubescent children. Swancutt provided a voluntary statement in which he admitted accessing and viewing child pornography.
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."
The case was investigated by the Belleville Police Department and the FBI’s Springfield Child Exploitation Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Former Treasurer of Labor Union Pleads Guilty to Embezzling Union Dues and Filing False Report with Department of LaborRead the Press Release
Jeffrey Magelitz, 44, of Chester, Illinois, entered pleas of guilty to a two-count Indictment that charged embezzlement and theft from a labor union and for filing a false report with the Department of Labor, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Magelitz was the former treasurer of the American Federation of State, County and Municipal Employees, Local 415 in Vienna, Illinois from January of 2012 through June of 2013. AFSCME Local 415 represents employees at the Vienna Correction Center, located in Vienna, IL Magelitz embezzled approximately $30,000 and prepared and cashed unauthorized checks for himself and forged the signatures of the president and vice-president of the union on the checks. Magelitz also submitted a false annual report for the union which contained the forged signature of the president and falsely reported the amount of money that he received during the year. Magelitz faces a prison sentence of up to 6 years, a fine of up to $350,000, and up to 3 years’ supervised release. Sentencing is scheduled for December 7, 2016.
The prosecution is the result of an investigation by the U.S. Department of Labor, Office of Labor Management Standards, with the assistance of the labor union. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Final Two Defendants in Tax King Case Plead GuiltyRead the Press Release
Donald S. Boyce, Acting United States Attorney for the Southern District of Illinois, has announced that Edric A. Russell, 35, and Pierre J. Carter, 34, both of East St. Louis, IL, pled guilty yesterday to filing false tax returns. Both Russell and Carter worked at the East St. Louis location of a tax return preparation business known as "Tax King."
Tax King was owned and operated by co-defendant Eyob Tilahun. In addition to the East St. Louis location, Tilahun operated several Tax Kings in St. Louis, Missouri. On May 20, 2016, Tilahun pled guilty to conspiring to submit false claims for tax refunds. Tilahun admitted that Tax King’s return preparers were trained and instructed to increase their customers’ refunds by falsifying certain information on their tax returns. The false information that was placed on the returns included: (1) false Business Income and Schedules Cs which caused the clients to qualify for larger Earned Income Credits ("EICs"); (2) false wages, which again caused the clients to qualify for larger EICs; (3) false education expenses which enabled the clients to qualify for American opportunity education credits; and (4) false information regarding fuel taxes which qualified the clients for federal fuel tax credits.
Tilahun admitted that he profited from the scheme by charging Tax King’s clients fees which ranged from approximately $400 to $650. The indictment in the case alleges that the return preparers also profited by requesting cash "tips" from the clients that ranged from approximately $100 to $1,000.
In their guilty pleas, Russell and Carter both admitted that they prepared false tax returns while working at Tax King. Both admitted that they placed false Schedule C income on their clients’ returns in order to qualify them for higher refunds. Russell also admitted that he placed false education expenses on his client’s return, which also fraudulently increased her refund amount. Both admitted that they requested tips from their customers for preparing the false returns. The charge of preparing a false income tax return carries a maximum sentence of 3 years of imprisonment, a $250,000 fine, and restitution.
In addition to Russell, Carter, and Tilahun, four other defendants in the case have previously pled guilty. Those defendants are: Mason B. Richmond, 31, of St. Louis, MO; Lakesha R. Wilson, 28, of East St. Louis, IL; Tanesa L. Beverly, 32, of East St. Louis, IL, and Melissa L. Wiley, 34, of Granite City. Wilson, Beverly, and Wiley all worked as return preparers at the East St. Louis Tax King. Richmond worked as a return preparer at a Tax King on North Grand in St. Louis.
Tilahun, Beverly, and Wiley are scheduled to be sentenced on September 9, 2016. Sentencing for Wilson and Richmond will be October 7, 2016. Russell and Carter will be sentenced on January 27, 2017.
The investigation is being conducted by agents from both the Fairview Heights, Illinois, and St. Louis, Missouri Offices of the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman. The United States Attorney’s Office for the Eastern District of Missouri has also prosecuted several return preparers who worked at Tax King locations in St. Louis, MO.
FCI-Greenville Inmate Pleads Gulity to Possession of Contraband by A Federal InmateRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on August 17, 2016, Antonio M. Green, 26, pled guilty to an indictment charging him with Possession of Contraband by a Federal Inmate, in violation of Title 18, United States Code, Section 1791(a)(2). At the time the offense was committed, Green was an inmate at the Federal Correctional Institution located in Greenville, Illinois. Johnson faces a term of imprisonment of not more than five years, a fine up to $250,000, or both, and a term of supervised release of not more than three (3) years. Green’s sentence must be served consecutively to the sentence he is currently serving. Green’s sentencing has been scheduled for December 2, 2016, in East St. Louis, Illinois. Green has been held without bond since his arraignment on July 11, 2016.
The charge arose when, on April 4, 2016, a correctional officer performed a random shakedown of Green’s cell and found a 7 inch, ice pick-style weapon with a handle in his locker. Green admitted the weapon was his, stating that he had it for his own protection.
The case was investigated by the Bureau of Prisons’ Special Investigation Section. The case is assigned to Assistant United States Attorney Angela Scott.
St. Louis Man Sentenced for East St. Louis Bank RobberyRead the Press Release
Gregory Forest, 55, of St. Louis, Missouri, was sentenced today in the United States District Court for the Southern District of Illinois to 188 months in prison and three years of supervised release for charges stemming from a bank robbery at First Bank, located at 300 River Park Drive, East St. Louis, on May 8, 2015, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Forest was also ordered to pay $2,310 in restitution to First Bank.
Evidence showed that on May 8, 2015, Forest entered First Bank, approached a teller, and told her that he had a gun and demanded money. After receiving $2,310, Forest fled the scene. He had been on federal supervised release for a less than three months for a string of bank robberies he committed in 2004 when he committed this robbery.
The case was investigated by the Federal Bureau of Investigations and the East St. Louis Police Department. The case was prosecuted by Assistant United States Attorney Laura Reppert.
Smithton Resident Pleads Guilty to Sexual Exploitaton of A Minor and Possession of Prepubescent Child PornographyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on August 16, 2016, Kyle W. Oberg, 40, Smithton, IL, pled guilty to a three-count Superseding Indictment charging him with two counts of Sexual Exploitation of a Minor (Counts 1 and 2) in violation of Title 18, United States Code, Sections 2251(a), and Possession of Prepubescent Child Pornography (Count 3), in violation of Title 18, United States Code, Sections 2252A(a)(5)(B) and (b)(2). On each of Counts 1 and 2, Oberg faces a term of imprisonment of not less than fifteen (15) but not more than thirty (30) years, a fine up to $250,000, and a term of supervised release of five (5) years to life. On Count 3, Oberg faces a term of imprisonment of not more than twenty (20) years, a fine up to $250,000, and a term of supervised release of five (5) years to life. Oberg has been detained since his arraignment on August 22, 2013. His sentencing date is January 27, 2017, in East St. Louis, Illinois.
On July 18, 2013, the Smithton Police Department executed a state search warrant at Oberg’s residence and seized Oberg’s desktop computer. Oberg’s hard drive was later searched pursuant to a federal warrant. A forensic analysis of the hard drive revealed approximately 337 images and three videos of a minor child engaged in sexually explicit conduct. At the times the images and videos were taken the minor child was five and six years old. Police obtained the warrant to search Oberg’s residence after receiving a complaint from the minor child’s mother, who was concerned about Oberg’s behavior towards the minor child. Oberg took advantage of his familiarity with the minor child to induce or coerce the child into engaging in sexually explicit conduct for the purpose of producing the images and videos.
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."
The case was investigated by the Smithton Police Department and the United States Secret Service’s Cyber-Crime Unit. The case is assigned to Assistant United States Attorney Angela Scott.
Massac County Man Sentenced for Methamphetamine OffenseRead the Press Release
On August 10, 2016, Brandon L. Watson, a/k/a "Dubb," 29, of Metropolis, was sentenced for his involvement in a methamphetamine offense, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Watson, who had previously pled guilty to a one-count superseding indictment charging conspiracy to distribute more than 50 grams of methamphetamine, was sentenced to 151 months’ imprisonment, 4 years’ supervised release, and was fined $200.00. The offense occurred between May 2015 and October 26, 2015, in Williamson and Massac Counties. Evidence at the plea and sentencing hearings established that Watson was involved with co-defendant Gary Skinner and others in distributing methamphetamine, in the form of "ice." Ice is methamphetamine which has a purity level of at least 80%. Skinner, who was residing in St. Louis, was delivering multi-ounce amounts of ice to Watson for distribution in the Metropolis area. On October 26, 2015, Skinner’s vehicle was stopped on I-57 in Williamson County for a traffic violation. During a vehicle search, officers located over 200 grams of ice, which Skinner was going to deliver to Watson. Later laboratory analysis confirmed that the ice had purity levels between 98% - 100%. At sentencing, the district court determined that Watson was responsible for the distribution of more than 907 grams of ice. Skinner has pled guilty to his role in the methamphetamine conspiracy and is currently being held without bond pending an August 24, 2016, sentencing hearing.
The investigation was conducted by the Southern Illinois Enforcement Group, Illinois State Police, and Drug Enforcement Administration. The Massac County States Attorney’s Office also assisted in the investigation.
Centralia Resident Pleads Guilty to Felon in Possession of A Firearm in Connection with A Drug Trafficking OffenseRead the Press Release
Brandon Hoskins, 32, of Centralia, Illinois, pleaded guilty on August 11, 2016, in US District Court to possession of a firearm in connection with a drug trafficking offense, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Brandon Hoskins faces a minimum sentence of 5 years in prison for this offense.
Hoskins was investigated following the November 29, 2014, burglary of Buchheit’s of Centralia. In that burglary, forty (40) firearms and more than a thousand rounds of ammunition were stolen. Dakota Moss, also of Centralia, was sentenced to 248 months imprisonment on September 11, 2015, for committing that burglary.
Court records established that two of the guns stolen during the Buchheit’s burglary were eventually transferred to Brandon Hoskins. When agents went to Hoskins’ home on December 5, 2014, to search for the stolen firearms, they discovered a separate Glock pistol in his bedroom, along with an amount of heroin, a drug log book and drug packaging materials. Hoskins admitted that he kept that firearm as protection related to his drug dealing. The two stolen firearms were eventually recovered by law enforcement officials.
Hoskins will be sentenced on December 13, 2016.
Three other defendants charged in connection with the Buchheit’s burglary are scheduled for trial on November 28, 2016. Under the law, those defendants are presumed to be innocent until proven guilty beyond a reasonable doubt.
The investigation is being conducted by agents from the Bureau of Alcohol, Tobacco and Explosives, the Centralia Police Department, along with the Clinton County States Attorney’s office. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Two Southern Illinois Men and Arizona Man Indicted on Methamphetamine Related ChargesRead the Press Release
Kedly G. Newlin, 57, of Lawrenceville, IL, Kelly W. Cessna, 46, of Bridgeport, IL, and Lorenzo Molina, 50, of Phoenix, AZ, were indicted on July 19, 2016, on methamphetamine related charges in a four count Indictment returned by a Federal Grand Jury, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
Count 1 charges that from November 2015, until June 18, 2016, in Crawford, Lawrence, and Richland Counties, within the Southern District of Illinois, and elsewhere, Newlin, Cessna, and Molina conspired to distribute methamphetamine in violation of federal law. The total amount of methamphetamine involved in the conspiracy was fifty (50) grams or more of crystal methamphetamine (Ice), or five hundred (500) grams or more of a mixture and substance containing methamphetamine.
Count 2 charges that on February 17, 2016, in Crawford County, Newlin knowingly and intentionally possessed with the intent to distribute methamphetamine.
Count 3 charges that in mid to late May 2016, in Richland County, Molina knowingly and intentionally distributed methamphetamine. The amount of methamphetamine involved was five (5) grams or more of crystal methamphetamine (Ice), or fifty (50) grams or more of a mixture and substance methamphetamine.2
Count 4 charges that on June 9, 2016, in Lawrence County, Cessna knowingly and intentionally possessed with the intent to distribute methamphetamine. The total amount of methamphetamine involved was fifty (50) grams or more of crystal methamphetamine (Ice), or five hundred (500) grams or more of a mixture and substance containing methamphetamine.
With respect to Count 1, all three defendants face a minimum of 10 years up to life imprisonment, up to a $10,000,000 fine, and supervised release of not less than 5 years
With respect to Count 2, Newlin faces up to 20 years imprisonment, up to $1,000,000 fine, and supervised release of not less than 3 years.
With respect to Count 3, Molina faces 5-40 years’ imprisonment, up to a $5,000,000 fine, and supervised release of not less than 4 years.
With respect to Count 4, Cessna faces a minimum of 10 years up to life imprisonment, up to a $10,000,000 fine, and supervised release of not less than 5 years
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 investigation in this case was conducted by the Crawford County Sheriff’s Office, the Robinson, Illinois Police Department, the Bridgeport, Illinois Police Department, the Lawrenceville County Sheriff’s Office, the Richland County Sheriff’s Office, and the Department of Homeland Security.
Clinton County Man to Serve 45 Years in Prison for Child Pornography OffensesRead the Press Release
Miguel Angel Vasquez Torres, 34, from Beckemeyer, Illinois, was sentenced on August 2, 2016, in the U.S. District Court to 45 years in prison for Production of Child Pornography, Distribution of Child Pornography and Receipt of Child Pornography, United States Attorney Donald S. Boyce announced today. Vasquez Torres was also ordered to pay a $300 special assessment. When he is released from prison he will be on federal supervised release for an additional 10 years.
Documents filed in the U.S. District Court establish that in May 2015, the Federal Bureau of Investigation received information from the National Center for Missing and Exploited Children (NCMEC) CyberTipline regarding an individual who was uploading child pornography to a Photobucket.com cloud storage account. A search of the Photobucket account revealed that the account belonged to Miguel Angel Vasquez Torres and that it contained numerous video and image files containing child pornography. During a subsequent search of Vasquez Torres’ residence, law enforcement officers seized two cellular telephones and numerous other items of computer media.
Vasquez Torres was interviewed by law enforcement officers and admitted to downloading and distributing video files containing child pornography. He also admitted that he had repeatedly sexually abused a minor over the course of several years and that he had photographed his acts of sexual abuse of the minor victim. A forensic examination of Vasquez Torres’ iPhone 5 revealed approximately 22 video files containing child pornography that he had distributed and received using an internet-based messaging system. The forensic examination of his Samsung Galaxy revealed approximately 440 images which depict Vasquez Torres’ sexual abuse of the minor victim.
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."
This investigation was conducted by the Madison County Sheriff’s Department, the Federal Bureau of Investigation’s Metro East Cyber Crimes and Analysis Task Force, and the Clinton County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Ali Summers.
Centreville Man Sentenced for Selling Heroin and Crack CocaineRead the Press Release
Wilbert M. Sewell, 37, of Centreville, Illinois, was sentenced to 37 months in federal prison on August 2, 2016, in U.S. District Court in East St. Louis, Illinois, Donald S. Boyce, United States Attorney for the Southern District of Illinois announced today. Sewell pled guilty on April 5, 2016, to four federal felony charges, including distribution of heroin, and possession with intent to distribute heroin and crack cocaine.
At his change of plea hearing in April, Sewell admitted selling heroin, crack cocaine and cocaine to a police informant in East St. Louis on four separate occasions between August and October, 2015.
The investigation which resulted in Sewell’s arrest and conviction was conducted by the Drug Enforcement Administration (DEA) and by the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI).
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
East St. Louis Man Sentenced to 30 Years for Sex Trafficking Children by Force, Fraud, and CoercionRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Michael Johnson, a former resident of East St. Louis, Illinois, was sentenced yesterday by United States District Court Judge Staci M. Yandle to 360 months in federal prison for one count of conspiracy to commit sex trafficking of children by force, fraud, and coercion and three counts of child sex trafficking by force, fraud, and coercion all to run concurrently with each other and with another federal sentence Johnson is already serving. Judge Yandle also sentenced Johnson to five years of supervised release to follow the imprisonment and a $400 special assessment fee.
Facts revealed in open court at the sentencing and plea hearings established that from about late 2009 or early 2010, Johnson and another recruited four girls under the age of 18 on chat lines, online, or simply walking down the street. Using actual physical violence or fear of violence, lies, and mental manipulation, Johnson made the girls have sex with men for money, which he kept. Johnson knew or recklessly disregarded the fact that the girls were under the age of 18 at the time.
In praising Judge Yandle’s sentence, United States Attorney Boyce commented: "Most people don’t believe that children could be forced or tricked into prostitution, let alone that it would happen right here in the Southern District of Illinois. But it is true. As this prosecution demonstrates, our own children are forced by fear, lies, manipulation, and threats of violence into selling sex for money. Our children deserve better. My office, in conjunction with our law enforcement partners, stands firmly committed to prosecuting those who sexually exploit children. I whole-heartedly commend the four victims in this case for their courage to be heard and their resolve to tell their stories. I am confident that the sentence imposed brings the victims some healing. I encourage the people of this great district to contact the Federal Bureau of Investigation or their local police if they see or know that a child has fallen victim to sex trafficking."
Special Agent in Charge, Sean M. Cox, with the Federal Bureau of Investigation further commented: "Protecting children from those in our communities who would do them harm is of paramount importance, and it is a responsibility we all bear. In the FBI, as we learn of children being victimized, we will use all legally available tools within our disposal to identify and bring to justice those who would exploit children for their own benefit. Beginning in late 2009, Michael Johnson began to recruit minor-aged girls who he then trafficked for the purpose of prostitution. Johnson took advantage of these children, preying on them because of their life situation. To control his victims, he used fear and intimidation. I commend FBI Special Agent Tyrone Forte and Assistant United States Attorney Monica Stump for making our community a safer place and for obtaining justice for those individuals who were exploited and victimized because of the actions taken by Johnson."
The case was investigated by the Federal Bureau of Investigation, Springfield Division and members of the division’s Child Exploitation Task Force in Fairview Heights. Assistant U.S. Attorney Monica A. Stump is prosecuting the case.
Centreville Man Sentenced for Sex Trafficking of A MinorRead the Press Release
Demerous E. Foxworth, 25, of Centreville, Illinois, was sentenced on Friday, July 22, 2016, in the U.S. District Court to 135 months in prison for Commercial Sex Trafficking of a Minor and Use of a Facility of Interstate Commerce to Promote an Unlawful Activity, United States Attorney Donald S. Boyce announced today. Foxworth was also ordered to pay a $500 fine and $200 special assessment. When Foxworth is released from prison, he will be on federal supervised release for an additional 10 years.
Documents filed in the District Court establish that in the summer of 2014, Foxworth contacted a 16-year-old female and established a sexual relationship with her. Shortly after meeting the minor, Foxworth offered to help her make money by engaging in illegal prostitution. Foxworth thereafter repeatedly posted advertisements on the internet offering for the minor victim to engage in prostitution, for which Foxworth received a portion of the money. In addition, starting in October 2012 and continuing until October 2015, Foxworth recruited five adult women to engage in illegal prostitution. He facilitated the prostitution of the five women by posting advertisements on the internet and arranging transportation and/or accommodations for the calls received in answer to the advertisements. Foxworth received a portion of the money made by each woman for engaging in the acts of prostitution.
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."
This investigation was conducted by the St. Louis County Police Department and the Federal Bureau of Investigation, St. Louis and Springfield Offices. The case was prosecuted by Assistant United States Attorney Ali Summers.
Area Restaurant, and Its Owners, Sentenced for Conspiracy to Defraud the Internal Revenue ServiceRead the Press Release
Lotawata Creek, Inc., d/b/a Lotawata Creek Southern Grill, a restaurant located in Fairview Heights, Illinois, and its two owners, Rodney Archer, 50, and Kenneth Archer, 52, were each sentenced for the offense of Conspiracy to Obstruct the Internal Revenue Service in the Assessment and Collection of Federal Income Taxes, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today. Lotawata Creek, Inc. d/b/a Lotawata Creek Southern Grill was sentenced to five years' probation and its owners, Kenneth Archer and Rodney Archer were each sentenced to four years' probation. The company (restaurant) and each owner were required to pay direct restitution totaling $219,183.23. This amount has already been paid prior to sentencing. Each of the defendants are required to pay additional penalties and interest (amounts are being determined) to the Internal Revenue Service, and, they will also have to pay unpaid taxes plus penalties and interest to the Illinois Department of Revenue, as well.
"Stealing from the government, by failing to pay your fair taxes, is stealing from all of the citizens of the United States." noted United States Attorney Boyce. "Our office will continue to ferret out and prosecute tax cheats wherever they may be or whatever their scheme."
The convictions are the result of a scheme by Rodney Archer, Kenneth Archer, and Lotawata Creek, Inc., d/b/a Lotawata Creek Southern Grill, beginning in 2010, through in or about July, 2015, where they altered and manipulated the information in the restaurant's point of sale system to lower the reported cash sales and then removed the corresponding amount of cash from the business prior to being deposited and reported as gross receipts. This had the effect of
lowering the total gross receipts reported on the tax returns and thereby lowering the total taxable income reported to the Internal Revenue Service.
The successful prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations. The prosecution of the case was handled by Assistant U.S. Attorney Norman R. Smith.
Three St. Clair County Residents Guilty of Conspiracy to Distribute OxycodoneRead the Press Release
Gerald Tanner, 56, of Collinsville, Illinois, pleaded guilty on July 18, 2016, in US District Court to conspiracy to distribute oxycodone and methadone, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
On November 18, 2015, a federal grand jury handed down an indictment alleging that three St. Clair County residents participated in a conspiracy to distribute oxycodone and methadone into the Southern District of Illinois. Evidence discussed in court established that the St. Louis Division of the Drug Enforcement Administration began investigating Gerald Tanner for illegally distributing schedule II narcotics out of his home. The DEA obtained the assistance of a confidential source and purchased opiate-based pain medications from Ryan Koch and Lisa-Marie Sue Ketterer, who were supplied by Gerald Tanner. Koch and Ketterer resold a portion of the drugs they bought and used the remainder.
Previously, Ryan Koch, 34, and Lisa Marie Sue Ketterer, 26, both of St. Clair County pleaded guilty on June 28, 2016, and May 10, 2016, respectively. Koch will be sentenced on September 29, 2016 and Ketterer will be sentenced on August 23, 2016.
US Attorney Donald S. Boyce said, "There has been a national proliferation of opiate drug abuse. Sales of opioid pain relievers quadrupled between 1999 and 2010. And that proliferation has correlated strongly with an increase in heroin abuse and drug-related deaths. Opiates are causing tremendous damage in our community and the US Attorney’s office will continue to fight the distribution of drugs that endanger public safety."
As charged in this case, conspiracy to distribute oxycodone and methadone is punishable by not more than 20 years in federal prison, not more than a $1,000,000 fine, and not less than 5 years supervised release. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Tanner is scheduled to be sentenced on October 19, 2016.
The investigation is being conducted by Diversion Investigators from the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Rio Grande Valley Resident Sentenced for Drug ConspiracyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Rey Ramirez, 48, was sentenced on July 14, 2016, by United States District Court Judge Nancy J. Rosenstengel to 120 months in federal prison for conspiring to distribute and to possess with the intent to distribute cocaine and marijuana, with five years of supervised release to follow the imprisonment, and a $100 special assessment fee.
Facts revealed in open court at the sentencing and plea hearings established that during the conspiracy, Ramirez arranged the transportation for the delivery of over 2000 pounds of marijuana to Ohio and Georgia. He also agreed to distribute 21 kilograms of cocaine to distributors in Missouri. After considering many factors, such as Ramirez’s age, health, prior criminal record, and involvement and vital role in the conspiracy, Judge Rosenstengel sentenced Ramirez to 120 months, the mandatory minimum sentence required by federal law.
Evidence in support of this prosecution was obtained in an investigation which was 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. Agencies participating in this case include the Drug Enforcement Administration and the Internal Revenue Service, Criminal Investigations. This case was prosecuted by Assistant United States Attorney Monica A. Stump.
Kentucky Man Charged with Robbing Shawneetown BankRead the Press Release
Marcus Howard Householder, 32, of Reed, Kentucky, has been charged in United States District Court in Benton with robbing the Grand Rivers Community Bank in Shawneetown, Illinois, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. A Federal Grand Jury returned an indictment earlier this week charging Householder with committing the June 14th robbery during which $6,349 was taken.
Householder appeared for arraignment on the charge this morning at the United States District Courthouse in Benton. He was ordered held without bond and remanded to the custody of the United States Marshal pending further proceedings. Householder is next scheduled to be in court on August 24th at 9:30 a.m. for a final pretrial conference.
Investigation into the robbery was conducted by the Carmi office of the Illinois State Police Zone 7 Investigations Unit with the assistance of the Gallatin County Sheriff’s Department, the Shawneetown Police Department, the Kentucky State Police, the Webster County (Kentucky) Sheriff’s Department, the Union County (Kentucky) Sheriff’s Department, and the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Note: An Indictment is simply a formal charge brought against a defendant. A defendant is presumed innocent of the charge until proven guilty beyond a reasonable doubt.
Guilty Plea Entered in Drug ConspiracyRead the Press Release
Timothy Edwards, 36, of New Memphis, Illinois, pled guilty on Monday, July 11, 2016, to a three-count Second Superseding Indictment charging him with Conspiracy to Distribute, and Possess with Intent to Distribute, Cocaine and Marihuana, Making a False Statement to a Federal Law Enforcement Officer, and Maintaining Drug-Involved Premises, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today. Edwards’ sentencing hearing has been set for October 21, 2016. Edwards faces penalties for Count 1 of no less than 5 years, no more than 40 years in federal prison, a $5,000,000 fine, or both, 4 years supervised release and a $100 special assessment; for Count 2 no more than 5 years in prison and/or a $250,000 fine, 3 years supervised release and a $100 special assessment; and Count 3 no more than 20 years in prison, a fine of no more than $500,000, or both, 3 years supervised release and a $100 special assessment.
The case was investigated by the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI) and the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Deirdre A. Durborow.
Texas Native Sentenced to 30 Years for Drug Counts and Conspiracy to Commit Money Laundering while Serving a Federal SentenceRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Joel Lopez, Jr., 38, was sentenced today by United States District Court Judge Nancy J. Rosenstengel to 360 months (30 years) in federal prison on five felony drug counts and 240 months for conspiring to commit money laundering (the sentences are all to run concurrently), a $600 fine and $600 in special assessment fees. The Judge also ordered that her sentence of imprisonment should run consecutively to the federal sentence Lopez is currently serving on other charges. Following his term of imprisonment, Judge Rosenstengel imposed a five year term of supervised release on the drug counts and three years for the money laundering count to run concurrently with each other.
Facts revealed in open court at the sentencing and plea hearings established that Lopez committed the drug and money laundering offenses while an inmate at the United States Penitentiary Marion, in Williamson County, Illinois, from a cell phone he had in prison some time in or before May 2014. While in custody, Lopez passed to two fellow inmates the telephone number of a codefendant in Southern Texas who distributed drugs. This telephone number was then passed to others who purchased or agreed to purchase cocaine, methamphetamine, and marijuana from the codefendant. The purchasers wired drug proceeds through bank accounts or MoneyGram to the codefendant in Southern Texas, who provided some of the proceeds to Lopez’s family as payment for recruiting new customers. At sentencing, Judge Rosenstengel found that Lopez had conspired to distribute 21 kilograms of cocaine, 19.95 kilograms of marijuana, and over 10 kilograms of crystal methamphetamine in the form of "ice," which is methamphetamine with a purity of at least eighty percent. This was Lopez’s third federal conviction for drug crimes.
Evidence in support of this prosecution was obtained in an investigation which was 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. Agencies participating in this case include the Drug Enforcement Administration and the Internal Revenue Service, Criminal Investigations. This case was prosecuted by Assistant United States Attorney Monica A. Stump.
Glen Carbon Man Sentenced for Armed RobberyRead the Press Release
The United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today that Jonathan Michael Malone, 53, of Glen Carbon, Illinois, was sentenced in the United States District Court in East Saint Louis, Illinois for armed robbery. Malone was charged with Interference of Commerce by Robbery, with Brandishing a Firearm During and In Relation to a Crime of Violence, and with Unlawful Possession of a Firearm by a Convicted Felon.
Malone admitted in open court, that on January 14, 2016, Malone robbed the One Stop Shop Gas Station in Maryville, Illinois. During the robbery, Malone brandished a handgun at the owner. Furthermore, Malone possessed the handgun unlawfully after having been previously convicted of armed robbery.
On July 12, 2016, the district court sentenced Malone to a total of 108 months in federal prison. The court also ordered Malone to serve three years of supervised release, to pay to fine of $300, and pay restitution to the shop owner in the amount of $102.25.
The case was investigated by the Glen Carbon Police Department, the Maryville Police Department, the Illinois State Police, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney William E. Coonan.
Carterville Woman Pleads Guilty to Bankruptcy FraudRead the Press Release
On July 12, 2016, Jenny L. Parks-Smith, 42, of Carterville, IL, pled guilty to a bankruptcy fraud charge pending against her in federal court in Benton, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Parks-Smith was indicted on February 2, 2016, as part of an effort to crackdown on those who commit fraud during the course of bankruptcy proceedings in the U.S. Bankruptcy Court for the Southern District of Illinois.
"Bankruptcy fraud harms creditors and erodes confidence in the federal bankruptcy system," United States Attorney Boyce explained. "Individuals who hide their assets during bankruptcy cases are defrauding their creditors. Truth is at the core of any bankruptcy and my office will prosecute those who engage in this type of conduct."
The indictment charged Parks-Smith with concealing assets in her bankruptcy case. In pleading guilty, Parks-Smith admitted that she concealed from the Bankruptcy Court a $17,500 settlement she received for a worker’s compensation claim. Parks-Smith further admitted that she used this money to pay personal and family expenses. Parks-Smith’s chapter 13 bankruptcy case was filed and litigated in the United States Bankruptcy Court in Benton, Illinois.
"Abuse of the bankruptcy system by concealing assets for personal gain threatens the integrity of the bankruptcy system," stated Nancy J. Gargula, U.S. Trustee for Southern Illinois, Central Illinois and Indiana (Region 10). "I am grateful to U.S. Attorney Boyce and our law enforcement partners for their strong commitment 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 Peoria, IL and South Bend, IN.
Parks-Smith’s sentencing hearing is scheduled for October 19, 2016, at 10:30 a.m. at the federal courthouse in Benton. The crime of concealing assets in a bankruptcy case is punishable by up to 5 years in federal prison, and/or a $250,000 fine, not more than three years of supervised release, and restitution.
The charges resulted from a referral by the U.S. Trustee and the investigation was conducted by agents from the Springfield Division, Fairview Heights Resident Agency, of the Federal Bureau of Investigation ("FBI") with assistance from members of the Southern District of Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Perry County Man Sentenced for Methamphetamine OffenseRead the Press Release
On June 29, 2016, Christopher R. Pelate, 34, of Pinckneyville, was sentenced for a methamphetamine offense, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Pelate, who had previously pled guilty to one count of conspiracy to distribute methamphetamine, was sentenced to 110 months in federal prison, to be followed by 3 years’ supervised release, and fined $200.00. Evidence at the plea and sentencing hearings established that Pelate was involved with others in the manufacture and distribution of methamphetamine. Pelate provided pseudoephedrine for use in the manufacture of methamphetamine. Pelate also distributed methamphetamine, in the form of "ice." Ice is methamphetamine which has a purity level of at least 80%. At sentencing, the judge found that Pelate was responsible for the distribution of 35 grams of ice and 7.78 grams of pseudoephedrine. The offense occurred between 2013 and June 2015, in Perry, Jackson, and Randolph Counties. Eight co-defendants have previously been sentenced for their role in the drug conspiracy.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Percy Police Department, Steeleville Police Department, Mascoutah Police Department, Illinois State Police Methamphetamine Response Team, DuQuoin Police Department, Pinckneyville Police Department, and Drug Enforcement Administration. The Randolph and Perry County State’s Attorney’s Offices also assisted in the investigation.
Robinson Resident Sentenced on Methamphetamine Related ChargesRead the Press Release
A Robinson, Illinois, man was recently sentenced to federal prison on methamphetamine related charges, James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today.
On June 27, 2016, Michael L. Goff, 36, of Robinson, Illinois, was sentenced to 168 months in federal prison, to be followed by five years of supervised release after imprisonment. Goff had previously pleaded guilty to three counts in a federal indictment.
Count 1 charged that from May 2015 to September 1, 2015, in Crawford and Richland Counties, the state of Indiana, and elsewhere, Goff conspired to knowingly and intentionally distribute methamphetamine. The total amount involved in the conspiracy was fifty (50) grams or more of methamphetamine (Ice). Count 2 charged that from August 30, 2015 to September 1, 2015, in Crawford County, Goff knowingly and intentionally possessed with the intent to distribute five (5) grams or more of methamphetamine (Ice). Count 3 charges that on August 31, 2015, in Richland County, Goff knowingly and intentionally possessed with the intent to distribute methamphetamine.
The investigation in this case was conducted by the Robinson, Illinois, Police Department, the Crawford County Sheriff’s Office, and the Richland County Sheriff’s Office. The Crawford County State’s Attorney’s Office also assisted in the investigation of this case.
The case is being handled by Assistant United States Attorney George Norwood.
Randolph County Woman Sentenced for Methamphetamine and Heroin OffensesRead the Press Release
On June 27, 2016, Paula L. Summers, 61, of Percy, was sentenced for methamphetamine and heroin offenses, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Summers, who had previously pled guilty to two-count indictment charging conspiracy to distribute methamphetamine and conspiracy to distribute heroin, was sentenced to 109 months in federal prison, to be followed by 3 years’ supervised release, and fined $400.00. Evidence at the plea and sentencing hearings established that Summers was involved with others in distributing both heroin and methamphetamine, in the form of "ice." Ice is methamphetamine which has a purity level of at least 80%. Summers and others made multiple trips to St. Louis to obtain dealer amounts of heroin. Summers also distributed large amounts of ice and heroin from her Percy residence. At sentencing, the judge found that Summers was responsible for the distribution of over 450 grams of ice and 27 grams of heroin. The offenses occurred between 2013 and June 2015, in Perry, Jackson, and Randolph Counties. Seven co-defendants have previously been sentenced for their role in the drug conspiracies.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Percy Police Department, Steeleville Police Department, Mascoutah Police Department, Illinois State Police Methamphetamine Response Team, DuQuoin Police Department, Pinckneyville Police Department, and Drug Enforcement Administration. The Randolph and Perry County State’s Attorney’s Offices also assisted in the investigation.
White County Man Sentenced to 13 Years in Prison for Methamphetamine OffensesRead the Press Release
Bobby D. Morrill, Jr., 38, of Carmi, Illinois, was sentenced today in United States District Court in Benton to a term of 156 months in prison for distributing highly pure methamphetamine on four occasions in 2015, announced James L. Porter, Acting United States Attorney for the Southern District of Illinois. Morrill had previously pled guilty on March 3, 2016, to distributing methamphetamine in Carmi on August 31st and September 8th, 9th, and 16th.
At the time of the four distributions, Morrill was on parole from the Illinois Department of Corrections after being sentenced in White County Circuit Court to 10 years in state prison in 2010 for possessing anhydrous ammonia with intent to manufacture methamphetamine. As a result, Morrill’s parole was revoked and he was returned to the Illinois Department of Corrections where he will remain until April 2017. He will begin serving his federal sentence after that.
In addition to the 156 month federal sentence, Morrill was ordered to pay $700 in fines and special assessments to the United States and was placed on a 3 year term of supervised release to follow his incarceration.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Illinois State Police and was prosecuted by Assistant United States Attorney James M. Cutchin.
Perry County Man Sentenced for Methamphetamine OffenseRead the Press Release
On June 15, 2016, Nicholas C.J. Draege, 25, of DuQuoin, was sentenced for a methamphetamine offense, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Draege, who had previously pled guilty to one count of conspiracy to distribute methamphetamine, was sentenced to 96 months in federal prison, to be followed by 3 years’ supervised release, and fined $300.00. Evidence at the plea and sentencing hearings established that Draege was involved with others in the manufacture and distribution of methamphetamine. Draege provided pseudoephedrine pills to others to use to manufacture methamphetamine. At sentencing, the judge found that Draege was responsible for the possession of 57.12 grams of pseudoephedrine. The offense occurred between 2013 and June 2015, in Perry, Jackson, and Randolph Counties. The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Percy Police Department, Steeleville Police Department, Mascoutah Police Department, Illinois State Police Methamphetamine Response Team, DuQuoin Police Department, Pinckneyville Police Department, and Drug Enforcement Administration. The Randolph and Perry County State’s Attorney’s Offices also assisted in the investigation.
Houston Resident Guilty of Federal Drug Trafficking Following $1.2 Million Dollar Cash SeizureRead the Press Release
Nahum Shibeshi, 28, of Houston, Texas, pleaded guilty on June 16, 2016, in US District Court to conspiracy to distribute cocaine and interstate travel in support of racketeering activities, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
On February 18, 2016, a federal grand jury handed down an indictment alleging that eight Houston residents participated in a conspiracy to distribute more than 5 kilograms of cocaine into the Southern District of Illinois. In addition to the drug crimes, the indictment seeks forfeiture of $1,212,934 in US Currency that was seized on December 2 and 3rd of 2015, along with jewelry appraised at $72,000. As part of his plea, Shibeshi agreed to forfeit any interest he has in any of the property that was seized.
As charged in this case, conspiracy to distribute cocaine is punishable by not less than 10 years’ imprisonment up to life, a $10,000,000 fine, and not less than 5 years supervised release. Interstate travel in support of racketeering activities is punishable by not more than 5 years’ imprisonment, a $250,000 fine and not more than three years supervised release. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Shibeshi is scheduled to be sentenced on October 14, 2016. The remaining seven defendants are scheduled for trial on August 15, 2016.
The investigation is being conducted by agents from the Drug Enforcement Administration as part of the OCDETF program. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
An indictment is a formal charge against a defendant. Under the law, the remaining co-defendants are presumed to be innocent of a charge until proved guilty beyond a reasonable doubt.
Carbondale Man Sentenced on Crack Cocaine OffenseRead the Press Release
On June 15, 2016, Roderick L. McClain, a/k/a "Big Bama," 31, of Carbondale, IL, was sentenced for a crack cocaine offense, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
McClain, who had previously pled guilty to a one-count superseding indictment charging conspiracy to distribute 28 grams or more of crack cocaine, was sentenced to 84 months in federal prison, to be followed by 4 years’ supervised release, and fined $300.00. The offense occurred between October 2014 and July 2015, in Williamson and Jackson Counties. Evidence at the plea and sentencing hearings established that McClain was involved with co-defendant Keenon Farr and others in the distribution of crack cocaine in the Marion and Carbondale areas. During the investigation, McClain sold crack cocaine to a confidential source working for law enforcement. At sentencing, the judge found that McClain was responsible for the distribution of 210.04 grams of crack cocaine and 9.91 grams of cocaine. McClain was on parole from the Illinois Department of Corrections for a felony weapons offense during his involvement in the crack cocaine conspiracy. Three co-defendants have previously been sentenced for their role in the crack cocaine conspiracy. One co-defendant has pled not guilty and is awaiting trial.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Drug Enforcement Administration, Jackson County Sheriff’s Office, and Carbondale Police Department. The Williamson and Jackson County State’s Attorney’s Offices also assisted in the investigation.
California Man Sentenced for Heroin OffenseRead the Press Release
On June 16, 2016, Conrad Valdez, Jr., 46, of Selma, California, was sentenced for a heroin offense, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Valdez, who had previously pled guilty to a one count indictment charging possession with intent to distribute more than 1 kilogram of heroin, was sentenced to 144 months in federal prison, to be followed by 5 years’ supervised release, and fined $400.00. Evidence at the plea and sentencing hearings established that, during a September 27, 2015, traffic stop in Effingham County, officers located approximately 17 kilograms of heroin in Valdez’s truck. Valdez was transporting the heroin from California to Joliet. The investigation established that Valdez had made previous trips for the purpose of transporting drugs and U.S. currency from the distribution of drugs. At sentencing, the judge determined that Valdez was responsible for transporting 17 kilograms of heroin, 33 kilograms of cocaine, and 20 kilograms of methamphetamine.
The investigation was conducted by the Drug Enforcement Administration, Central Illinois Enforcement Group, and Illinois State Police. The Effingham County State’s Attorney’s Office assisted in the investigation.
Williamson County Heroin Seller Faces Long Prison TermRead the Press Release
A Williamson County, Illinois man was recently sentenced to a long term in federal prison on heroin charges, James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today.
On June 15, 2016, Antoine B. Shaw, a/k/a "Scan," 42, of Herrin, IL, was sentenced to 228 months’ imprisonment and five years’ supervised release following his imprisonment. Shaw had previously pleaded guilty to one count in a federal superseding indictment which charged that from August 2014, until on or about June 5, 2015, in Williamson and Franklin Counties, Shaw and others conspired to distribute more than 100 grams of heroin.
The investigation in this case was conducted by the Illinois State Police, the Marion, Illinois Police Department, and the Williamson County Sheriff’s Office.
Two Clay County Men Sentenced on Destructive Device ChargesRead the Press Release
Two Clay County, Illinois men were recently sentenced to federal prison on destructive device charges, James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today.
On June 15, 2016, Aaron B. Flota, 37, of Flora, IL, was sentenced to 63 months in federal prison and two years’ supervised release following his imprisonment. On June 14, 2016, Kevin E. Caldwell, 37, of Edgewood, IL, was sentenced to 37 months in federal prison and two years’ supervised release following his imprisonment.
Both men had previously pleaded guilty to one count in a federal indictment which charged that on August 10, 2015, in Clay County, Illinois, Flota and Caldwell knowingly possessed a destructive device, as defined by federal law, which had not been registered to either of them in the National Firearms Registration and Transfer Record.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Clay County Sheriff’s Office. The Clay County State’s Attorney also assisted with the investigation.
Sesser Man Pleads Guilty to Bankruptcy FraudRead the Press Release
On Wednesday, June 15, 2016, Scott L. Thompson, of Sesser, IL, pled guilty to bankruptcy fraud charges pending against him in federal court in Benton, Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Thompson was indicted on February 2, 2016, as part of an effort to crackdown on those who commit fraud during the course of bankruptcy proceedings in the U.S. Bankruptcy Court for the Southern District of Illinois.
"My office is committed to ensuring the integrity of the federal bankruptcy system," Porter explained. "Individuals who hide their assets during bankruptcy cases are defrauding their creditors. When this type of conduct occurs in Southern Illinois, these individuals will be prosecuted. Bankruptcy is a tool to help people, not a place to commit fraud."
"I am grateful to Acting U. S. Attorney Porter and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases," stated Nancy J. Gargula, U. S. Trustee for Central Illinois, Southern Illinois and Indiana.
The indictment charged Thompson with one count of concealing assets and three counts of fraudulently withholding records in a bankruptcy case. In pleading guilty, Thompson admitted that he concealed from the Bankruptcy Court a $28,129.55 settlement he received for a worker’s compensation claim. In addition, Thompson acknowledged that he withheld copies of his federal and state tax returns, despite being ordered to turn them over by the Bankruptcy Court. Under federal law, tax refunds in amounts above certain thresholds must be paid to the Bankruptcy Court and used to pay back the creditors. Thompson’s chapter 13 bankruptcy case was filed and litigated in the United States Bankruptcy Court in Benton, Illinois.
Thompson’s sentencing hearing is scheduled for September 13, 2016, at 10:00 a.m. at the federal courthouse in Benton, Illinois. Each count of bankruptcy fraud is punishable by up to 5 years in federal prison, and/or a $250,000 fine, not more than three years of supervised release following the prison term, and restitution.
Assistance with the investigation was provided by members of the Southern Illinois Bankruptcy Fraud Working Group, coordinated by the U.S. Trustee, while the investigation was conducted by agents from the Springfield Division, Fairview Heights Resident Agency, of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.