Southern District of Illinois
Press releases recorded for this federal judicial district.
Getaway Driver Sentenced to 68 Months in Prison for Armed Robbery of Belleville Liquor StoreRead the Press Release
Case is one of many brought as a result of the United States Attorney Stephen R. Wigginton’s Metro-East Armed Robbery Initiative
Follow @SDILNewsCharmonequette Reynolds, 22, was sentenced on February 13, 2015, in the U.S. District Court to 68 months in prison on a three-count indictment charging her with Conspiracy to Interfere with Commerce by Robbery, Interference with Commerce by Robbery, and Use of a Firearm During a Crime of Violence, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Following her prison sentence, Reynolds will be on federal supervised release for 3 years. Reynolds was also ordered to pay restitution in the amount of $10,465. Reynolds has been in custody since her arrest on July 12, 2013.
Documents filed in U.S. District Court establish that on July 12, 2013 Reynolds drove her two co-defendants, Timothy Collier and Roderick Taylor, to Arena Liquor located at 105 S. Belt E, Belleville, Illinois to commit a robbery. While Reynolds waited in her vehicle, Collier and Taylor entered Arena Liquor armed with two firearms. Collier and Taylor pointed the firearms at the two individuals in the store and demanded money from the cash registers as well as their personal belongings. Collier and Taylor left the liquor store with approximately $15,000 of United States Currency, entered Reynolds’ vehicle, and the three fled from the scene. Reynolds was identified and apprehended a short time after the robbery and interviewed by law enforcement. During the interview, Reynolds admitted to her involvement in the planning and participation in the armed robbery and named Collier and Taylor as her two accomplices.
This case was investigated by the Belleville Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Ali Summers.
Area Men Sentenced for Healthcare Fraud CrimesRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today, that Quincy O. Gamble, 39, of Cahokia, Illinois, and Lawrence Thigpen, 53, of Collinsville, Illinois, were sentenced on Friday, February 13, 2015, for engaging in a scheme to commit health care fraud by defrauding the Home Services Program, which is a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home.
The district court sentenced Gamble to five years of probation; two years of supervised release, and a $100 special assessment. Gamble was also ordered to pay $6,704.89 in restitution to the Illinois Department of Human Services and to the Center for Medicare and Medicaid Services. During his plea hearing, Gamble admitted that he had submitted false and fraudulent bills in relation to his alleged performance of personal assistant services for his girlfriend, April Hayes, totaling 711 hours over an eleven month period. He even admitted to submitting claims for six months after his girlfriend had passed away. As a result, Gamble improperly billed $7,836.56 in payments for services not performed.
In a separate matter, the district court sentenced Thigpen to 15 months in federal prison, three years of supervised release, and to pay a special assessment of $100.00. Restitution was also ordered in the amount of $4,591.15. Facts brought out in Court showed that Thigpen was falsifying time sheets in order for his girlfriend, who was also his personal assistant, to receive payments for time periods when she was actually in jail.
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 cases were prosecuted by Assistant United States Attorneys, Ranley R. Killian, William E. Coonan, and Michael Hallock.
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.
Two Southern Illinois Residents Charged with Child Pornography OffensesRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that two southern Illinois residents were charged and appeared in Court today on child pornography offenses alleged to have occurred in Perry and Williamson Counties. Aaron Michael Amann, 25, of DuQuoin, Illinois and Collin A. Smith, 31, of Cambria, Illinois, were charged in separate cases with using a computer to access and download child pornography images from the internet.
The offenses carry a maximum penalty of at least 30 years imprisonment, a $250,000 fine and a lifetime 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.
The investigations in these cases were conducted by the Secret Service Southern Illinois Cyber Crimes Task Force, The United States Marshals Service, the Franklin County Sheriff’s Department, the Benton, Illinois, Police Department, the DuQuoin, Illinois, Police Department and the Cambria, Illinois, Police Department.
The cases are being prosecuted by Assistant United States Attorney Thomas E. Leggans.
Jefferson County Man Sentenced to Thirteen Years on Methamphetamine ChargesRead the Press Release
Follow @SDILNewsA Jefferson County man was sentenced today to federal prison on methamphetamine charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Monty D. Hamson, 49, of Mt. Vernon, Illinois, was sentenced to 156 months in federal prison, to be followed by three years’ supervised release, and fined $500. Hamson had previously pleaded guilty to two counts in a federal indictment. Count 1 charged that from May 2010, until on or about February 19, 2014, in Jefferson County, Hamson conspired with others known and unknown to the Grand Jury to manufacture methamphetamine. Count 2 charged that on February 19, 2014, in Jefferson County, Hamson possessed equipment, chemicals, products, or materials which may be used to manufacture methamphetamine, knowing, intending, and having reasonable cause to believe, that those items would be used to manufacture methamphetamine.
The investigation in this case was conducted by the Joint Narcotics Unit of the Mt. Vernon Police Department and the Jefferson County Sheriff’s Department.
The case is being handled by Assistant United States Attorney George Norwood.
Clay County Man Sentenced to Eighteen Years on Methamphetamine ChargesRead the Press Release
Follow @SDILNewsA Jefferson County man was sentenced today to federal prison on methamphetamine charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Jason L. Shadle, 40, of Flora, Illinois, was sentenced to 216 months in federal prison, to be followed by four years’ supervised release, and fined $200. Shadle had previously pleaded guilty to four counts in a federal indictment. Count 1 charged that from January 2011, until on or about April 8, 2014, in Clay County, Shadle conspired with others known and unknown to the Grand Jury to manufacture more than 50 grams of methamphetamine. Count 2 charged that on May 3, 2012, in White County, Shadle possessed equipment, chemicals, products, or materials which may be used to manufacture methamphetamine, knowing, intending, and having reasonable cause to believe, that those items would be used to manufacture methamphetamine. Count 3 charged that on April 7, 2014, in Crawford County, Shadle possessed equipment, chemicals, products, or materials which may be used to manufacture methamphetamine, knowing, intending, and having reasonable cause to believe, that those items would be used to manufacture methamphetamine. Count 4 charged that from January 2010, to on or about March 25, 2014, in Clay County, and elsewhere, Shadle possessed Pseudoephedrine pills, knowing and having reasonable cause to believe that the pills would be used to manufacture methamphetamine.
The investigation in this case was conducted by the Flora Police Department, the Clay County Sheriff’s Office, and the Southeastern Illinois Drug Task Force.
The case is being handled by Assistant United States Attorney George Norwood.
5 Men Charged with Armed Robbery of Shop ‘N Save in CahokiaRead the Press Release
This case is one of many brought as a result of the United States Attorney Stephen R. Wigginton’s Metro-East Armed Robbery Initiative
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Byron “Josh” Holton, 26, from Cahokia, LaMarcus D. Jackson, 28, from Centreville, Undray C. Webb, 25, from Cahokia, Devante J. Hodges, 22, from Cahokia and Durand L. Harper, 25, from Cahokia, have all been charged on a two-count Complaint with Interference with Commerce by Robbery, which is a violation of the Hobbs Act, and Carry and Use of a Firearm During a Crime of Violence in connection with the armed robbery of the Shop ‘n Save that occurred in Cahokia, Illinois on January 11, 2015.
The complaints filed in the U.S. District Court allege that on January 11, 2015 at approximately 9:40 p.m. four masked and gloved individuals entered the Shop ‘n Save grocery store located at 1028 Camp Jackson Road in Cahokia, Illinois. The four individuals were armed with a black handgun, a chrome semi-automatic handgun, a long barreled revolver, and a long rifle with a high capacity magazine. The four masked men pointed the firearms at employees and customers within Shop ‘n Save and threatened to kill them if they were not given money from the store safe. An employee was forced to fill a black book bag with money from the safe and the four men then fled on foot. Over $7,000 was taken during the robbery. The investigation led to the identification of Durand Harper as the “look out” and “getaway driver” before and after the robbery, and to Josh Holton, LaMarcus Jackson, Undray Webb, and Devante Hodges as the four masked gunman.
“I would like to stress the tremendous cooperation and coordination between the various federal and local departments resulting in the bringing of charges in this case. Great sharing of information and old-fashioned police work by the FBI, Sauget, and Cahokia resulted in armed individuals being swiftly brought to account.” said United States Attorney Wigginton.
If convicted of a violation of the Hobbs Act, each defendant faces a term in prison of up to 20 years, a fine of up to $250,000, or both, and a term of supervised release of up to 3 years. If convicted of the offense of Carry and Use of a Firearm During a Crime of Violence, all five defendants face a minimum term in prison of 7 years up to a maximum term of Life, consecutive to, meaning in addition to, any term of imprisonment imposed on the Hobbs Act violation, as well as a fine of up to $250,000 and a term of supervised release of up to 5 years.
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 case is being investigated by the Cahokia Police Department, the Sauget Police Department, and the Federal Bureau of Investigation as part of the Metro East Armed Robbery Initiative. The case is assigned to Assistant United States Attorney Ali Summers for prosecution.
White County Man Sentenced to 25 Years in Federal Prison on Child Pornography ChargesRead the Press Release
Follow @SDILNewsA White County man was sentenced on February 10, 2015, to federal prison on child pornography charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
“Keeping predators away from children remains my highest priority.” noted United States Attorney Wigginton. “Some folks just need to be taken out of our society for such heinous acts.”
Gary Richard Walters, 39, of Norris City, IL, was sentenced to 300 months in prison and 7 years of supervised release. Walters had previously pleaded guilty to a one count Indictment which charged Production of Child Pornography, in that on July 6, 2013, in White County, Walters did knowingly entice and coerce a minor to engage in sexually explicit conduct, for the purpose of Walters producing a video of such conduct.
The investigation in this case was conducted by the Federal Bureau of Investigation.
The case is being handled by Assistant United States Attorney George Norwood.
White County Man Sentenced on Methamphetamine Related ChargesRead the Press Release
Follow @SDILNewsA White County man was sentenced on February 6, 2015, to federal prison on methamphetamine charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Luke L. Burnett, 31, of Crossville, IL, was sentenced to 108 months in prison, three years’ supervised release following his imprisonment, and fined $200. Burnett had previously pleaded guilty to one count in a federal indictment. Count 1 charged that on March 7, 2014, in White County, Burnett did knowingly and intentionally possess with the intent to distribute a mixture or substance containing methamphetamine.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the White County Sheriff’s Department with the assistance of the Illinois State Police and the Indiana State Police.
The case is being handled by Assistant United States Attorney George Norwood.
Two Richland County Residents Indicted on Methamphetamine Related ChargesRead the Press Release
Follow @SDILNewsJesse L. Benefield, 27, of Claremont, IL, and Sherry K. Auteberry, 49, of Olney, Illinois, were indicted on February 3, 2015, on methamphetamine related charges in a two count Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Count 1 charges that from May 2014, until on or about January 26, 2015, in Richland County, and elsewhere within the Southern District of Illinois, Benefield and Auteberry conspired with others known and unknown to the Grand Jury to manufacture methamphetamine.
Count 2 charges that from November 2, 2008, to on or about January 23, 2015, in Richland County, Auteberry possessed pseudoephedrine pills, knowing and having reasonable cause to believe that the pills would be used to manufacture methamphetamine.
With respect to Count 1, Benefield and Auteberry each face up to 20 years in prison, up to a $1,000,000 fine, and supervised release of at least 3 years.
With respect to Count 2, Auteberry faces up to 20 years in prison, up to a $250,000 fine, and supervised release of up to 3 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 Richland County Sheriff’s Office.
The case is being handled by Assistant United States Attorney George Norwood.
Ridgeway Man Sentenced to 5 Years in Prison for Marijuana OffensesRead the Press Release
Follow @SDILNewsRyan Earl Bess, 34, of Ridgeway, Illinois, was sentenced today in United States District Court in Benton to a 5 year prison term for conspiring with two other individuals to grow more than 100 marijuana plants, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Bess, and codefendants Daniel J. Fulkerson and Paul E. Reynolds, were charged by a Federal Grand Jury on September 5, 2012, with one count of conspiring to grow more than 100 marijuana plants and one count of actually growing the plants in Gallatin County between April 2012 and August 29, 2012. Ryan fled Illinois following his indictment and was arrested in Colorado in May 2014. He pled guilty to the charges on October 22nd.
In addition to the 5 year prison sentence, Bess was ordered to pay fines and special assessments totaling $400 to the United States and was placed on a 4 year term of supervised release to follow his incarceration. Following his sentencing, Bess was returned to the custody of the United States Marshal, where has been held without bond since his arrest in Colorado, to await designation to a Federal Bureau of Prisons facility.
Fulkerson and Reynolds also previously pled guilty to the charged offenses and were sentenced to prison terms of 60 months and 120 months, respectively.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and was prosecuted by Assistant United States Attorney James M. Cutchin.
Metro-East Resident Pleads Guilty to Participating in Fraudulent Tax Refund SchemeRead the Press Release
Case Is One of Many Prosecuted By United States Attorney Wigginton Aimed at Those Who Commit Tax Fraud
Follow @SDILNewsSylvin Baker, 58, from East St. Louis, pled guilty to one count of making a false claim for a federal tax refund in submitting a false federal income tax return, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Baker faces a prison sentence of up to 5 years, a fine of up to $250,000, and up to 3 years’ supervised and mandatory restitution. Baker was indicted with three other metro east individuals for participating in a tax refund scheme. Sentencing has been set for May 22, 2015.
The prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Jefferson County Man Sentenced to 151 Months on Methamphetamine ChargesRead the Press Release
Follow @SDILNewsA Jefferson County man was sentenced on February 6, 2015, to federal prison on methamphetamine charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Kenneth L. Badgett, 52, of Mt. Vernon, Illinois, was sentenced to 151 months in federal prison, to be followed by three years of supervised release, and fined $300. Badgett had previously pleaded guilty to three counts in a federal indictment. Count 1 charged that from February 2014, until on or about March 23, 2014, in Jefferson County, Badgett conspired with others known and unknown to the Grand Jury, to knowingly and intentionally manufacture methamphetamine. Count 2 charged that on March 23, 2014, in Jefferson County, Badgett possessed equipment, chemicals, products, or materials which may be used to manufacture methamphetamine, knowing, intending, and having reasonable cause to believe, that those items would be used to manufacture methamphetamine. Count 3 charged that on January 28, 2013, in Jefferson County, Badgett knowingly and intentionally distributed methamphetamine.
Co-defendant Larry York, 47, of Mt. Vernon, IL, was previously sentenced in this case to 180 months.
The investigation in this case was conducted by the Joint Narcotics Unit of the Mt. Vernon Police Department and the Jefferson County Sheriff’s Department.
The case is being handled by Assistant United States Attorney George Norwood.
Eight Face Federal Drug ChargesRead the Press Release
Follow @SDILNewsA federal grand jury in Benton, Illinois, has charged eight Franklin County residents with narcotics-related offenses, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Those charged with conspiracy to manufacture methamphetamine are: Jonathan Brent Eldridge, 43, of Zeigler, Illinois, and Jessica R. Ghan, 27, of West Frankfort, Illinois. Five individuals were charged with possession of pseudoephedrine with the intent that it be used for the production of methamphetamine: Kristena J. Grant, 30, of West Frankfort, Illinois, Alicia A. Ragan, a/k/a Alicia Geer, 25, of West Frankfort, Illinois, Crystal G. Geer, 26, of West Frankfort, Illinois, Steven A. Myers, 47, of West Frankfort, Illinois, and Ronald J. Furmanski, 45, of Benton, Illinois. Another individual, Joshua L. Parkhill, 35, of West Frankfort, Illinois, was charged with distribution of heroin.
Those charged with conspiracy to manufacture methamphetamine face 10 years to life in prison and a $10 million fine. Those charged with providing pseudoephedrine pills to others face up to 20 years in federal prison and a $250,000 fine. Parkhill faces up to 40 years in federal prison and a $5 million fine on his heroin charges.
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 Illinois State Police, Southern Illinois Drug Task Force, West City Police Department, Sesser Police Department, Christopher Police Department, Zeigler Police Department, Franklin County Sheriff’s Office and Franklin County State’s Attorney’s Office.
The case is being prosecuted by Assistant United States Attorney Tom Leggans.
Clay County Man Indicted on Methamphetamine Related ChargesRead the Press Release
Follow @SDILNewsHenry J. Dietz, 54, of Edgewood, IL, was indicted on February 3, 2015, on methamphetamine related charges in a two count Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Count 1 charges that from January 2010, until on or about August 25, 2014, in Clay County, and elsewhere within the Southern District of Illinois, Dietz conspired with others known and unknown to the Grand Jury, to manufacture 50 or more grams of a mixture and substance containing methamphetamine. Count 2 charges that on August 25, 2014, in Clay County, Dietz possessed equipment, chemicals, products, or materials which can be used to manufacture methamphetamine, knowing, intending, and having reasonable cause to believe, that those items would be used to manufacture methamphetamine.
With respect to Count 1, Dietz faces 5-40 years in prison, up to $2,000,000 fine, supervised release of at least 4 years, and a $100 special assessment.
With respect to Count 2, Dietz faces up to 10 years in prison, up to $250,000 fine, supervised release of up to 3 years, and a $100 special assessment.
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 Flora Police Department, the Clay County Sheriff’s Office, and the Southeastern Illinois Drug Task Force.
The case is being handled by Assistant United States Attorney George Norwood.
Clay County Man Indicted on Methamphetamine Related ChargesRead the Press Release
Follow @SDILNewsRichard H. Barber, 49, of Louisville, IL, was indicted on February 3, 2015, on methamphetamine related charges in a two count Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Count 1 charges that from June 2014, until on or about October 28, 2014, in Clay County, and elsewhere within the Southern District of Illinois, Barber conspired with others known and unknown to the Grand Jury, to manufacture a mixture and substance containing methamphetamine. Count 2 charges that on October 28, 2014, in Clay County, Barber possessed equipment, chemicals, products, or materials which can be used to manufacture methamphetamine, knowing, intending, and having reasonable cause to believe, that those items would be used to manufacture methamphetamine.
With respect to Count 1, Barber faces up to 20 years in prison, up to a $1,000,000 fine, supervised release of not less than 3 years, and a $100 special assessment.
With respect to Count 2, Barber faces up to 10 years in prison, up to $250,000 fine, supervised release of up to 3 years, and a $100 special assessment.
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 Flora Police Department, the Clay County Sheriff’s Office, and the Southeastern Illinois Drug Task Force.
The case is being handled by Assistant United States Attorney George Norwood.
Williamson County Man Sentenced on Crack Cocaine and Cocaine OffensesRead the Press Release
Follow @SDILNewsOn February 6, 2015, Eric Scott Russell, 49, of Carbondale, was sentenced for crack cocaine and cocaine violations, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Russell, who had previously pled guilty to a two-count superseding indictment, charging conspiracy to distribute crack cocaine and cocaine and distribution of crack cocaine, was sentenced to 48 months in federal prison, 3 years’ supervised release, and fined $600.00.
The offenses occurred between 2012 and April 2013, in Williamson and Jackson Counties. Evidence at the plea and sentencing hearings established that Russell was involved with co-defendant Albert Wesley, a/k/a “Boogie,” and others in the distribution of crack cocaine and cocaine. On April 7, 2013, Russell sold crack cocaine to a confidential source working for law enforcement. At sentencing, the district court found that Russell was responsible for the distribution of over 155 grams of crack cocaine. Co-defendant Wesley was previously sentenced to 90 months in prison for his role in the conspiracy.
The investigation was conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, Carbondale Police Department, and Drug Enforcement Administration. The Williamson County State’s Attorney’s Office and Jackson County State’s Attorney’s Office also assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Perry County Woman Sentenced for Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn February 6, 2015, Lori A. Helmer, 49, of Pinckneyville, Illinois, was sentenced on a methamphetamine offense, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Helmer, who had previously pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 87 months in federal prison, to be followed by 3 years of supervised release, and fined $200. The offense occurred between 2012 and June 2013, in Perry, Jackson, and Randolph Counties. Evidence at the plea and sentencing hearings established that Helmer was involved with co-defendants Michael Lasky and Daniel Caraker and others in the manufacture of methamphetamine. Helmer would travel with others to obtain pseudoephedrine pills for use in the manufacturing process. At sentencing, the district court determined that Helmer was responsible for unlawfully obtaining more than 133 grams of pseudoephedrine. Lasky and Caraker were previously sentenced to prison terms of 108 months and 121 months, respectively, for their role in the methamphetamine conspiracy.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Murphysboro Police Department, DuQuoin Police Department, Pinckneyville Police Department, Illinois State Police Methamphetamine Response Team, and Drug Enforcement Administration. The Perry County State’s Attorney’s Office also assisted in the investigation.
The case was prosecuted by Assistant United States Attorney Amanda A. Robertson.
Herrin Man Pleads Guilty to Heroin OffenseRead the Press Release
Follow @SDILNewsOn February 6, 2015, Adam M. Calvert, 30, Herrin, Illinois, pled guilty to a one-count indictment charging conspiracy to distribute heroin, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2012 and January 2014, in Williamson and Jackson Counties. Evidence at the plea hearing established that Calvert was involved with others in the distribution of heroin. On multiple occasions, Calvert sold heroin to a confidential source working for law enforcement. During the execution of a July 2013 search warrant at Calvert’s Herrin residence, officers located syringes, pre-recorded buy money, a digital scale, plastic baggies with white residue and numerous other drug-related items. During a later January 2014, arrest, officers located heroin in Calvert’s sock. At that time, officers again located digital scales, used syringes, and other drug-related items at Calvert’s residence.
Calvert is currently being held without bond pending a May 13, 2015, sentencing hearing. At that time, Calvert faces up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group and the Drug Enforcement Administration. The Williamson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Construction Worker Sentenced to Federal Prison for Cocaine DeliveryRead the Press Release
Follow @SDILNewsA St. Charles, Missouri, resident was sentenced to federal prison for unlawful distribution of a controlled substance on February 6, 2015, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Charles Sweeny, 56, was sentenced to 57 months in federal prison, a $7,500 fine, a $100 special assessment, and three years of supervised release.
Sweeny was indicted on January 23, 2014, and pleaded guilty on August 28, 2014. The evidence established that Charles Sweeny worked as a construction worker for a man named David Ray, 55, of Fieldon, Illinois. Ray owned various construction businesses in the area and an investigation revealed that Sweeny was supplying Ray with cocaine. Agents arranged for two controlled purchases of cocaine to be made. The first resulted in the seizure of 126.5 grams of cocaine on March 9, 2012, when Sweeny personally delivered cocaine to an address in Jersey County, Illinois. The second controlled delivery was interrupted and Sweeny was caught while he was in the process of delivering cocaine to a Jersey County, Illinois, address. This second incident resulted in a seizure of 301.2 grams of cocaine, on April 17, 2012. During the investigation, agents also seized an additional 229.9 grams of cocaine that Sweeny had supplied to Ray. Sweeny was arrested after the second controlled delivery on April 17, 2012.
David Ray was separately prosecuted for unlawfully possessing firearms while being a user of cocaine. In addition, his various businesses were investigated and he was convicted for tax evasion for using his businesses to pay personal expenses, by vesting ownership of personal assets in the name of his businesses, and by filing false tax returns with the IRS or refusing to file a US Individual Tax Return all together. In tax years 2005-2010, Ray concealed income from the IRS for the purpose of limiting his tax liability resulting in him avoiding $1,272,904.83 in federal income taxes that he otherwise would have been required to pay. On December 22, 2014, David Ray was sentenced to 37 months in prison, a $7,500 fine, $1,272,904.83 in restitution, a $200 special assessment, and three years of supervised release. Ray also forfeited a gun collection valued between $75,000-$100,000.
The investigation was conducted by agents from the Internal Revenue Service / Criminal Investigations, the Jersey County Sheriff’s Department, the Bureau of Alcohol Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Carbondale Man Indicted for Making Threats Against Social Security Administration EmployeeRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Steven Vizcarrondo, 22, of Carbondale, Illinois, was indicted by a federal grand jury on February 5, 2015, on a federal charge stemming from a murder threat directed toward a Social Security Administration employee in Carbondale, Illinois, on January 27, 2015. A conviction on this charge of Influencing Federal Official by Threat carries maximum penalties of ten years in federal prison, three years supervised release, a $250,000 fine and a $100 special assessment.
Authorities arrested Vizcarrondo in Carbondale on February 5, 2015. The United States District Court for the Southern District of Illinois in Benton ordered that Vizcarrondo be held without bond pending his trial, which has yet to be set.
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.
This case was investigated by the Federal Protective Service and the Social Security Administration, Office of the Inspector General. Assistance was provided by the Carbondale Police Department. The case is being prosecuted by Special Assistant United States Attorney John C. Constance.
British Man Found Guilty in O’Fallon High School Heroin Overdose DeathRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Richard J. Klemis, 41, a native and citizen of Great Britain, was found guilty on Wednesday, February 4, 2015, of selling the heroin which killed Tyler P. McKinney, 19, an O’Fallon, Illinois High School student, on February 23, 2011.
United States Attorney Wigginton stated, “This successful prosecution is yet another step in our anti-heroin initiative. Our anti-heroin effort is designed to slow down and reverse the epidemic of heroin overdose deaths among young people in the Southern District of Illinois. The penalties for drug dealers who choose to prey on young heroin users are very severe, and rightly so. Richard Klemis is a middle-aged man who preyed on O’Fallon teenagers and eventually killed one of them. I am proud to have played a role in removing Klemis from society.”
Klemis is a British citizen who resided in O’Fallon in 2010-2011. Klemis sold heroin to several dozen current and former O’Fallon Township High School students during 2010-11, while he was residing with his mother in O’Fallon. Klemis fled the United States when he learned that he was a suspect in McKinney’s death. Eventually, Klemis was extradited from Great Britain.
Klemis will be sentenced in U.S. District Court in East St. Louis on May 8, 2015. Klemis faces a mandatory minimum sentence of at least 20 years in federal prison, with a potential maximum sentence of life imprisonment. In addition to McKinney’s death, Klemis was found guilty of selling the heroin which nearly killed a second man; of selling heroin to four young people under the age of 21, and of employing a 16-year old man to assist Klemis with his heroin distribution operation. Klemis was convicted of conspiracy to distribute heroin as well.
Klemis was convicted following an 8-day jury trial before United States District Court Judge David R. Herndon.
The investigation which resulted in Klemis’ arrest and conviction was conducted by the O’Fallon, Illinois, Police Department, the Millstadt, Illinois, Police Department, and by the Drug Enforcement Administration (DEA).
The case was tried by Assistant United States Attorney Robert L. Garrison and Special Assistant United States Attorney Jonathan S. Drucker.
Belleville ‘Sovereign Citizen’ Sentenced to Prison for Making False Income Tax Claims and for Failure to Appear for SentencingRead the Press Release
Follow @SDILNewsDestry Marcotte, 48, of Belleville, Illinois, was sentenced to a total of seventy-eight months in federal prison, a fine of $25,000, and three years of supervised release, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
“Being dissatisfied with the government does not give a person the right to try to steal from it or to try to disrupt its functions. The sad fact is that if Marcotte had tried half as hard to be an agent of productive change as he did to be an enemy of the system, he might well be a free and prosperous man rather than another prisoner number.” noted United States Attorney Wigginton.
Marcotte had been convicted in 2013, following a jury trial, of making false claims against the United States by submitting false claims for tax refunds. Marcotte filed tax returns, as part of the sovereign citizen movement, claiming that the I.R.S. owed him more than $600,000. The Court determined the intended loss of his conduct to the United States government was nearly a million dollars. He was released on bond with electronic monitoring, but then fled prior to sentencing. Evidence showed that he filed numerous obstructive pleadings with the Internal Revenue Service, the Federal District Court and the Clerk of St. Clair County. His filings included a local lawsuit attempting to sue the President of the United States. Marcotte's extensive obstructive pleadings were noted to be calculated to be extremely wasteful of precious governmental resources as well as being a "monumental pain in the neck." His obstructive pleadings included false lien releases. He attempted to release a federal tax lien by falsely stating he was a government official. A Special Agent with Internal Revenue Service/Criminal Investigations testified at sentencing of a false lien release on a Ford F-350 truck which caused a financial institution to write off of the principle amount of over $25,000. The fraudulently obtained truck was then used to acquire another truck without cost. The Court noted that even illegally obtained funds must be reported as income.
The investigation was conducted by the United States Marshals Service and the Criminal Investigations Division of the Internal Revenue Service. The prosecution of the case was handled by Assistant United States Attorney Norman Smith.
Timeshare Owners Revictimized by Florida TelemarketerRead the Press Release
New Scam Promised Restitution for Those Already Victimized in Earlier Theft
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on February 3, 2015, Rance White, 25, of West Palm Beach, Florida, was sentenced in the United States District Court in East St. Louis, Illinois on one count of conspiracy to commit mail and wire fraud in connection with telemarketing. White was sentenced to 18 months in prison, to be followed by two years of supervised release.White was also ordered to pay $10,919.57 in restitution and a $100 special assessment.
“White truly felt no shame.” said United States Attorney Wigginton. “Instead, White had the gall to steal from people already victimized in a timeshare re-sale scam. Let us all hope that his time in federal prison will put an end to his thievery.”
The investigation determined that White participated in a "recovery scheme," that is, a scheme to re-victimize timeshare owners who had already been victimized in a timeshare resale fraud through the false promise of a restitution award. In a timeshare resale scam, timeshare owners are contacted by someone who claims to have a buyer for the person’s timeshare property. In exchange for an upfront fee (typically in excess of $1,000), the telemarketer promises that the sale will be finalized within a certain period of time and that a check for the sale price (typically in excess of $20,000) will then be delivered to the customer. No sale ever occurs, and the fraudulent company simply pockets the money. Thousands of timeshare owners across the country have fallen victim to this scam. Using that, White would call these victims and claim, that for a fee, he could secure restitution for the earlier scam. “As I have said, do not agree to part with your funds to persons or businesses that you do not carefully check out. The old adage is always true – if it sounds too god to be true, it is not true. I urge consumers, no matter how desperate, to use judgment and common sense before agreeing to give up your hard-earned dollars.” noted United States Attorney Wigginton.
South Florida is a hotbed for timeshare resale fraud, and in recent years, several major timeshare resale operations located in Palm Beach County, Florida, have been investigated and prosecuted in the Southern District of Illinois, including companies called Universal Marketing Solutions (UMS), Creative Vacation Solutions (CVS), and American Marketing Group (AMG). One of the most publicized of these prosecutions was the case against former CVS CEO Jennifer Kirk: United States v. Kirk, No. 3:11-CR-30093-GPM. Kirk was sentenced to 188 months in federal prison, but victims were unable to be made whole, thus creating the opportunity for the instant scam.
This prosecution is one of nearly 75 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service with assistance from the Florida Attorney General’s Office and the Florida Department of Agriculture. The case was prosecuted by Assistant U.S. Attorneys Bruce Reppert and William Coonan, and Special Assistant United States Attorney Michael Hallock.
Two Williamson County Residents Charged with Drug OffensesRead the Press Release
Follow @SDILNewsOn January 6, 2015, a Benton grand jury returned drug indictments against Corinthus Bevely, a/k/a “Rent,” 45, of Marion, and Krystle N. Statler, 24, of Johnston City, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Bevely is charged in a one-count indictment alleging conspiracy to distribute cocaine and crack cocaine. The offense occurred between March 2014 and December 2014, in Williamson County. Bevely’s offense carries a penalty of 5-40 years in federal prison, to be followed by 4 years’ supervised release, and a fine of up to $2,000,000. Bevely made his initial appearance in federal court on January 9, 2015, and was ordered held without bond pending a March 9, 2015, jury trial.
Statler is charged in a two-count indictment alleging conspiracy to manufacture methamphetamine and possession of pseudoephedrine knowing that it would be used to manufacture methamphetamine. The offenses occurred between 2012 and November 2014, in Williamson, Jackson, and Franklin Counties. Statler’s offenses carry a penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a fine of up to $1,000,000. Statler made her initial appearance in federal court on January 30, 2015. She is being held without bond pending a February 3, 2015, detention hearing.
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 investigations are being conducted by the Southern Illinois Enforcement Group. The Williamson County State’s Attorney’s Office assisted in the investigations.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Former Fairfield Community High School Cross Country Team Coach Sentenced to Twenty Years in Federal PrisonRead the Press Release
Sentence Resulted from Convictions for Attempted Sexual Exploitation of Minors and Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on February 2, 2015, Timothy C. Going, 44, formerly of Fairfield, IL, where he worked as the coach for the cross country team, the assistant coach for the track team, and a math teacher at Fairfield Community High School, was sentenced on four-count Indictment, charging him with three counts of Attempted Sexual Exploitation of Minors (Counts 1-3) and one count of Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct (Count 4). On Counts 1-3 of the Indictment, Going was sentenced to 240 months in federal prison, to be followed by 15 years of supervised release, all to run concurrently. On Count 4, Going was sentenced to 120 months in federal prison, to be followed by 15 years of supervised release, to run concurrently to Counts 1-3. The Court also ordered Going to pay a fine of $200 on each count, for a total fine of $800, and a $400 special assessment. Going has been held without bond since his arraignment on a Criminal Complaint on July 21, 2014.
“So many of the aspects of this case are simply disgusting, but the most reprehensible is the complete and utter disregard for the trust that the schools and the parents had placed in Going. Hopefully this long sentence will send a powerful message to those who might want to take advantage of a position of trust – do something like this and forget about a future on the streets as a free citizen.” observed United States Attorney Wigginton.
The investigation into Going’s criminal activities began on May 5, 2014, when a hidden video camera was discovered above a bathroom stall in the girls’ locker room at Fairfield Community High School. The video camera was wired to a black box with an antennae attached to it and a SD card slot in it. The next day, an Illinois State Police (ISP) crime scene investigator collected the camera and black box as evidence and transported them to the ISP’s forensics crime lab in Springfield, Illinois.
An ISP Forensic Technician began a forensic examination of the SanDisk micro SD card (SD card) removed from the black box that was wired to the hidden video camera and discovered several video clips from May 5, 2014, which depicted teenage girls using the bathroom stall or standing or walking next to the bathroom stall in the girls’ locker room in various stages of undress. There were other video clips that had been deleted that showed that the camera had been hidden in different locations in the girls’ locker room, including the changing area, before being placed above the bathroom stall.
The SD card also contained a video clip from May 2, 2014, which captured the placement of the hidden camera in the location in which it was found, by a white male wearing shorts and white ankle socks at approximately 10:28 p.m. that night. A review of the school’s surveillance video showed Going entering the school near that time wearing black shorts, a black hoodie, a gray stocking cap, tennis shoes, and white ankle socks. The school’s surveillance system captured Going later going into the dark gym area, and, at approximately 10:28 p.m., leaving the gym area wearing his white ankle socks and carrying his shoes. The surveillance camera then showed Going exit the school, sit on the stairs to put on his shoes, walk to his truck and drive away.
Additional images recovered from the SD card showed images of members of the girls’ cross country team in various stages of undress as they prepared to and/or finished showering in what appeared to be different hotel bathrooms. Illinois State Police Special Agents spoke with the administration at Fairfield Community High School and learned that Going had taken the cross country team on two overnight trips in 2012 and one overnight trip in 2013 to attend track meets and two regional competitions at Southern Illinois University in Edwardsville, Illinois. Going drove the bus that carried both the cross country team to the meet and regional competitions.
Members of the girls’ 2012 and 2013 cross country teams were interviewed regarding these overnight trips. The interviews revealed that Going had the same routine when he arrived at and left the motel with the cross country team. He would either have the team wait on the bus or in the lobby while he checked them in and took the keys from the hotel clerk. He would then tell the kids to wait so he could check the rooms for any “damage” so that the damage would not be attributed to the students occupying the room, and subsequently charged to the school. After he returned, he would assign rooms to the girls and the boys, and give them the keys to their rooms. Likewise, before checking out of the motel the next day, Going would again have the team either wait in the lobby or on the bus while he would take their keys and tell them that he was going to check the rooms for any “damage” and to make sure all personal belongings had been removed. He would then turn the keys into the motel clerk and they would leave. It was at these times that Going installed and removed the hidden video camera from the bathroom of rooms he specifically assigned to members of the girls’ cross country team.
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 Illinois State Police, the Fairview Heights Police Department and the Federal Bureau of Investigation's Springfield Child Exploitation Task Force. The case was assigned to Assistant United States Attorney Angela Scott.
United States Attorney for Southern Illinois Announces Crackdown on Federal Tax FraudRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, along with David E. Talcott, Assistant Special Agent in Charge, Internal Revenue Service/Criminal Investigation, Chicago Field Office, highlighted today a full series of recent Indictments and criminal prosecutions aimed at combating federal tax fraud. United States Attorney Wigginton noted, “These fraudsters are stealing from every lawful citizen in the United States. Stiff prison terms will help to end these thefts. If you engage in tax fraud in the Southern District of Illinois, we will be looking for you and will put you in jail. I am hoping that the timing of this announcement, just nine days into this years’ tax filing season, will serve to warn and deter those thinking about cheating our citizens – prison time, far away from family and friends, cannot be worth the amount of money you would get from such a theft!”
"Return Preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like these," said James C. Lee, Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. "Taxpayers should be selective in choosing a return preparer, and have confidence knowing that person will prepare accurate tax returns and safeguard their financial information."
Examples of the cases currently prosecuted serve to highlight this effort –
United States v. Edric Russell, Lakesha Wilson, Melissa Wiley, Tanesa Beverly & Pierre Carter
On January 22, 2015, a grand jury sitting in East St. Louis returned a 22 count indictment charging Edric A. Russell, 34, of East St. Louis, Lakesha R. Wilson, 27, of East St. Louis, Melissa L. Wiley, 33, of Granite City, Tanesa L. Beverly, 31, of Belleville, and Pierre J. Carter, 32, of East St. Louis, with conspiring to submit false claims to the United States and preparing false federal income tax returns. Each of these persons worked as a return preparer at a tax preparation business known as Tax King. Tax King was located on Collinsville Avenue in East St. Louis. The false tax returns were for the 2011 and the 2012 tax years. The indictment charges that these five tax preparers falsified items on their clients’ returns in order to cause the clients to receive larger refunds than they were entitled to. Specifically, it is alleged that the prepares: (1) created false Business Income and Schedules Cs in order to cause their clients to qualify for larger Earned Income Credits (“EICs”); (2) falsified wages, again to cause the clients to qualify for a larger EICs; (3) created false education expenses so that their clients would qualify for an American opportunity education credit; and (4) created false information regarding fuel taxes so that the clients would qualify for a federal fuel tax credit. Tax King charged its clients fees which ranged from approximately $400 to $650. In addition, the five preparers typically requested cash “tips” that ranged from approximately $100 to $1,000. The charge of conspiring to submit false claims carries a maximum sentence of 10 years in federal prison and a $250,000 fine. Each charge of preparing false income tax returns carries a maximum sentence of 3 years in federal prison and a fine of $250,000. The case was investigated by the Internal Revenue Service/Criminal Investigation. The prosecution is being handled by Assistant United States Attorney Scott A. Verseman.
United States v. Aisha Wright
Aisha Wright, age 33, of Alton, Illinois, waived indictment and pled guilty on January 16, 2015, to two counts of Making False Claims Against the United States. Aisha Wright operated A W Mobile Taxes, in Alton, Illinois. Potential fraud was detected by the Scheme Development Center of the I.R.S. Two undercover agents were sent to have tax returns prepared which were fraudulent. Further investigation revealed systematic preparation of false returns for taxpayers that falsified Schedule A deductions, Schedule C self-employment income, and falsified Page 3 of 8 education expenses for receipt of the education tax credit. Total losses exceed $1,000,000. Wright faces up to ten years in prison, three years supervised release, a fine of up to $250,000 and restitution. Sentencing is scheduled for April 17, 2015. The investigation was conducted by the Internal Revenue Service/Criminal Investigation. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
United States v. Shanta Doss
A federal grand jury returned an indictment on January 21, 2015, charging Shanta Doss, 31, of Shiloh, Illinois, with fifteen counts of making False Claims Against the United States through the filing of false federal tax returns, and one count of Making A False Declaration Before A Federal Grand Jury. The indictment charges that Shanta Doss prepared false returns for others as a paid preparer but did not sign the returns. The indictment charges that she made up numbers for Schedule C self-employment which allowed individuals to fraudulently receive additional earned income credit and larger federal tax refunds than they were entitled. Shanta Doss faces up to eighty years in prison, three years supervised release, a $250,000 fine and restitution. The investigation was conducted by the Internal Revenue Service/Criminal Investigation. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
United States v. Doressa Braggs
On January 29, 2015, Doressa Braggs, 46, of Belleville, Illinois, entered pleas of guilty to ten counts of Making False Claims Against the United States through the filing of federal tax returns and one count of Aggravated Identity Theft in Using a Social Security Number of Another during and in Relation to Wire Fraud. She faces a maximum sentence of up to fifty years in prison for the false claims and a mandatory consecutive two year prison sentence for the aggravated identity theft. In addition she faces up to three years supervised release, a $250,000 fine and restitution. As part of the plea, Braggs acknowledged that beginning in 2010 and continuing through the summer of 2012, she knowingly prepared and submitted false tax returns to obtain the payment of false and fraudulent federal income tax refunds from the Internal Revenue Service. The IRS Scheme Development Center (SDC) utilizes databases to research possible tax refund fraud schemes. The SDC linked tax returns based on internet protocol (IP) addresses, wage amounts, federal tax withholding amounts, employers, Page 4 of 8 occupations, electronic filing identification numbers (EFIN), and bank accounts, which revealed a tax refund scheme. The false returns prepared by Braggs utilized Forms W-2 which claimed false wages and false federal income tax withholdings. In some cases, she simply falsified the W-2s that she received from her clients, to overstate the wages and federal income tax withholding; in other cases (e.g., where the client was unemployed/did not have a W-2, she would fabricate an entirely false W-2-again, to report fictitious wages and federal income tax withholding. Many of the returns also claimed false Schedule C business expenses/losses. Braggs would typically list grooming type professions (e.g., hairstylist, beautician, etc.) on the fabricated Schedule C's that she filed with her clients' returns. Braggs falsely did not list herself in the "paid preparer" section of the returns. Sentencing has been scheduled for May 8, 2015. The investigation was conducted by the Internal Revenue Service/Criminal Investigation. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
United States v. Sylvia Baker, Alicia Jackson, Sylvin Baker and Lamarion Shanes
A federal grand jury returned an eight-count indictment on October 22, 2014, charging four Metro-east residents with participating in a scheme to submit false claims for federal tax refunds. Sylvia Baker, 30, Fairview Heights, and Alicia Jackson, 40, Belleville, are charged with participating in a conspiracy to defraud the United States by making false claims for tax refunds to the Internal Revenue Service by submitting false federal income tax returns. Sylvia Baker is also charged in five additional counts of submitting false tax returns for others and is charged with making a false statement to the Internal Revenue Service when interviewed during the criminal investigation. She faces a prison sentence of up to 40 years, a fine of up to $250,000, and up to 3 years’ supervised release after serving her sentence and mandatory restitution. Alicia Jackson is also charged in two additional counts for making false claims for federal tax refunds and faces a prison sentence of up to 20 years, a fine of up to $250,000, and up to 3 years’ supervised release after serving her sentence and mandatory restitution. Lamarion Shanes, 32, East St. Louis, is charged in two counts of making false claims for federal tax refunds and faces a prison sentence of up to 20 years, a fine of up to $250,000, and up to 3 years’ supervised release after serving her sentence and mandatory restitution. Sylvin Baker, 58, East St. Louis, is charged in one count of making a false claim for a federal tax refund in submitting a false federal income tax return and faces a prison sentence of up to 5 years, a fine of up to $250,000, and up to 3 Page 5 of 8 years’ supervised release after serving her sentence and mandatory restitution. Trial is scheduled for March 9, 2015. The investigation was conducted by the Internal Revenue Service/Criminal Investigation. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
United States v. Tajuana Sullivan
Tajuana L. Sullivan, 27, of Marion, Illinois, on November 26, 2014, entered pleas of guilty to conspiracy to defraud the Internal Revenue Service by submitting numerous false federal tax returns. She also pled guilty to aggravated identity theft for using a stolen identity of another in submitting a fraudulent tax return. Sullivan faces a prison sentence of up to 37 years, a fine of up to $1,000,000, and up to 3 years’ supervised release after serving her sentence and mandatory restitution. Sentencing has been scheduled for March 26, 2015. On February 19, 2013, deputies with the Shelby County Sheriff’s Office conducted a traffic stop on a vehicle driven by Tajuana L. Sullivan. Upon a search of the vehicle, approximately 53 debit cards and a notebook with names and identifying information were found in Tajuana L. Sullivan’s possession. The IRS Scheme Development Center (SDC) utilizes databases to research possible tax refund fraud schemes. The SDC linked tax returns based on the notebook containing identifying information found in Tajuana L. Sullivan’s’ vehicle, internet protocol (IP) addresses, employers, occupations, and electronic filing identification numbers (EFIN), which revealed a tax refund scheme, some of which involved stolen identities. The data provided by the SDC consisted of 2011 and 2012 tax returns, which were filed during the years 2012 and 2013, respectively. This tax refund scheme consisted of approximately 86 federal income tax returns, which claimed approximately $283,700 in fraudulent tax refunds. The investigation was conducted by the Internal Revenue Service/Criminal Investigation. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
United States v. Destry Marcotte
Destry Marcotte, 48, of Belleville, Illinois, is awaiting sentencing scheduled for February 4, 2015, for the offenses of Making False Claims Against the United States through the submission of fraudulent returns and for Failure to Appear for Sentencing. On October 23, 2013, Marcotte was originally convicted by a jury of making false claims against the United States. Before the Page 6 of 8 Internal Revenue Service and during trial he made “sovereign citizen” claims of not being subject to the laws of the United States. He then failed to appear for his sentencing originally scheduled for May 1, 2014, and was indicted for Failure to Appear. He cut off and discarded a location monitoring device. He was apprehended on September 22, 2014. On October 30, 2014, he entered a plea of guilty to the failure to appear offense. He faces a total maximum punishment of up to thirty years in prison; three years supervised release, a $250,000 fine, and restitution. The investigation was conducted by the Internal Revenue Service/Criminal Investigation. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
United States v. Melissa Perkins
On July 23, 2014, Melissa Perkins, 33, of Tioga County, New York was charged with Conspiracy to Commit Wire Fraud through Identity Theft and Tax Fraud. Perkins has requested that the matter be transferred to the Northern District of New York for disposition. She faces a maximum penalty of up to twenty years in prison; three years supervised release, a $250,000 fine and restitution. The Indictment charges that on or about January 31, 2014, through approximately February 28, 2014, an unidentified co-conspirator hacked into a computer server of a C.P.A. firm located in Alton, Illinois, in Madison County, Illinois. The hacker reviewed tax return information of individuals and unlawfully obtained hundreds of individual personal identifiers including individuals’ Social Security numbers. The stolen personal identifier information was then used to unlawfully and fraudulently file federal tax returns using the stolen identities of clients of the Alton accounting firm in order to obtain fraudulent federal tax refunds. It was part of the conspiracy to recruit individuals to open up bank accounts and prepaid debit card accounts in order to receive the federal tax refunds. In December of 2013, Melissa Perkins, opened up a bank account at M & T Bank at the direction of a conspirator who identified himself as "Scott McConnell" in order to receive money and forward the money on to the co-conspirator. Melissa Perkins "met" Scott McConnell in or about October of 2013, through an online dating website. Scott McConnell identified himself as being in the U.S. Army and indicated he would be receiving money and would direct her to forward money to his mother in Nigeria. Thereafter, Perkins received numerous federal and state tax refunds which were deposited into her account. She would wire transfer the majority of the refunds to Nigeria. The indictment alleges that she Page 7 of 8 continued to receive the deposits into her account and continued to forward the funds to Nigeria after being advised that her conduct was illegal. The investigation was conducted by the Internal Revenue Service/Criminal Investigation. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
United States v. Tanya Nichols and Justin Durley
Two Missouri residents were indicted by the federal grand jury on August 20, 2014, in a lengthy indictment alleging that Tanya Nichols, 33, of St. Louis, Missouri, functioned as a dishonest tax preparer who filed false tax returns to claim inflated tax returns for low-income tax filers. Nichols’ half-brother, Justin Durley, 30, of Hazelwood, Missouri, was charged with theft of government property for his role in the refund scheme. Nichols and Durley are scheduled for trial on February 9, 2015. The tax refund scheme alleged that Nichols prepared fraudulent income tax returns for individual tax filers in order to generate “refundable tax credits,” such as the earned income tax credit (EIC) and the child tax credit, which were refunded to the filer. The false information contained in the income tax returns prevented the IRS from making an accurate assessment of tax liabilities. It also prevented the IRS from making a correct distribution of income tax refunds. The false tax returns generated a larger tax refund than the filers were entitled to receive. Nichols shared the proceeds generated from the fraudulent returns with the tax filers, while collecting a fee in excess of that typically charged by legitimate tax preparers. Nichols also paid finders’ fees to those who recruited tax filers to participate in the scheme. The indictment charges that Nichols and her coconspirators solicited low-income individuals residing in St. Louis, Missouri and East St. Louis, Illinois to become participants in this refund scheme by promising IRS tax refunds, sometimes marketed as “free money.” The indictment explains that “refundable tax credits” are vulnerable to abuse because they have cash value to tax filers. That means a filer can receive “refund” payments for refundable credits even when the person filing the tax return has never paid any income tax whatsoever. In the case of low-income tax filers, it is common for a person to have little or no federal tax liability while still qualifying to receive these valuable refundable tax credits. This means that a low-income filer can receive a tax “refund” that exceeds the amount of income tax the filer actually paid. In that situation, the filer is not receiving a refund of their money; but rather they Page 8 of 8 are actually profiting from the tax code by receiving thousands of dollars’ worth of refundable tax credits that exceed the filer’s tax obligations. The indictment alleges that Nichols took advantage of this system by falsifying income, employment, dependents, and other factors, to fraudulently generate these large refundable tax credits. Conspiracy is punishable by not more than 5 years in federal prison, a $250,000 fine, and not more than 5 years supervised release. Theft of government property is punishable by not more than 10 years in prison, a $250,000 fine and not more than three years supervised release. Each count of wire fraud is punishable by not more than 20 years in prison, a $250,000 fine, and not more than three years of supervised release. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. The investigation is being conducted by agents from the Internal Revenue Service / Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft. NOTE: In of these all cases, an indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of the charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
Two Illinois Women Sentenced on Charges for Illegally Obtaining Controlled Substance by FraudRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced that Abbe L. Terry, 51, of East Alton, Illinois, and Jacklyn McCormack, 26, of Belleville, Illinois, were sentenced this week in the United States District Court in East Saint Louis.
The district court ordered Terry to serve six months of imprisonment and one year of supervised release. The court also ordered Terry to pay $300 in special assessments. At her plea, Terry admitted that on May 10, 2013, October 13, 2013 and October 23, 2013, she had, through the use of fraud and forgery, obtained Duragesic Patches referred to as Fentanyl, a Schedule II controlled substance. Terry admitted that she used forged prescriptions that she had made on a home computer to obtain the controlled substances that had not been lawfully prescribed to her. Terry obtained the substances from pharmacies in Alton, Illinois.
The district court ordered McCormack to serve four months of imprisonment and three years of supervised release. The first three months of supervised release are ordered to be served in a halfway house. The court also ordered McCormack to pay $134.37 in restitution, divided equally, to the Illinois Department of Healthcare and Family Services and the U.S. Department of Health and Human Services’ Center for Medicare and Medicaid Services and pay $400 in special assessments. At her plea, McCormack admitted to using forged prescriptions to obtain Oxycodone, a Schedule II narcotic control substance.
Miami Telemarketer Sentenced for FraudRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on January 23, 2015, Kyle Richard Robertson, 32, of Miami, FL, was sentenced in the United States District Court in East St. Louis, Illinois on one count of conspiracy to commit mail and wire fraud in connection with telemarketing, in violation of Title 18, United States Code, Section 1349. Robertson was sentenced to 28 months in prison, to be followed by two years of supervised release. Robertson was also ordered to pay a $500 fine and a $100 special assessment.
The investigation determined that Robertson was a manager at C&G Marketing Associates, LLC, also known as Premier Timeshare Solutions (PTS). Working out of office buildings in Florida, PTS, UMS, and CVS targeted owners of timeshares throughout the United States and Canada. In various court filings related to the PTS scam, the government has alleged that the overall scam bilked consumers of $14.5 million from over 7,000 people throughout the United States and Canada.
This prosecution is one of nearly 75 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service with assistance from the Florida Attorney General’s Office and the Florida Department of Agriculture. The case is being prosecuted by Special Assistant United States Attorney Michael Hallock and Assistant United States Attorney William Coonan.
Doctor from Effingham, Illinois Convicted of Illegal Dispensation of Controlled SubstancesRead the Press Release
Follow @SDILNewsNAEEM MAHMOOD KOHLI, 60, of Effingham, Illinois, was convicted of seven counts of illegal dispensation of a Schedule II Controlled Substance following a 17-day jury trial held in federal district court, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Kohli faces up to 20 years for each of the seven counts of illegal dispensation of a Schedule II Controlled Substance. Sentencing is scheduled forMay 20, 2015. Evidence showed that from May 2009 through May 2013, Kohli wrote prescriptions out of Kohli Neurology and Sleep Center in Effingham, Illinois for Schedule II Controlled Substances including Oxycodone and Hydromorphone, outside the usual course of medical practice and not for a legitimate medical purpose.
The successful prosecution is the result of an investigation conducted by the U.S. Department of Health and Human Services, Office of Inspector General; the Drug Enforcement Administration; the Internal Revenue Service, Criminal Investigation; the Federal Bureau of Investigation, and the Illinois State Police, Medicaid Fraud Control Bureau. The prosecution was being handled by Assistant United States AttorneysMichael J. Quinley and Ranley R. Killian.
Tennessee Man Convicted at Trial for Failure to Register as A Sex Offender to Serve 30 Months in Federal PrisonRead the Press Release
Follow @SDILNewsRonald Douglas, a 59-year old, Memphis, Tennessee, man was sentenced on January 23, 2015, in federal district court in East St. Louis, Illinois, for violation of the Sex Offender Notification and Registration Act, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Douglas was convicted by a jury following a three day trial which started on September 17, 2014. Douglas was sentenced to 30 months’ in prison. Additionally, he will serve a five year term of supervised release following service of his sentence. Douglas was also fined $250 and ordered to pay a $150 special assessment.
The violation was discovered after local officers conducting a sex offender registration compliance check on October 25, 2012, at Douglas’ registered address in Granite City, Illinois, were informed by a live-in girlfriend that Douglas had moved to Memphis, TN in September 2012. Douglas was required to register because of a June 5, 1992, conviction for Aggravated Criminal Sexual Abuse in Third Judicial Circuit Court in Madison County, Illinois. He violated federal registration requirements by crossing a state line and by failing to register or to update a registration within three days.
Further information about federal sex offender registration requirements is available here: http://www.justice.gov/criminal/ceos/citizensguide/citizensguide_sorna.html
The case was investigated by the Granite City Police Department and the United States Marshals Service. Assistant United States Attorneys’ Daniel T. Kapsak and Nathan D. Stump prosecuted the case.
Previously Convicted Fraudster Faces Consecutive Sentence for Failure to Report to PrisonRead the Press Release
Follow @SDILNewsKevin D. Dowell, 38, of St. Louis, Missouri, pled guilty to failure to surrender for service of a sentence the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Dowell faces a sentence of up to ten years in prison, a $250,000 fine and up to three years supervised release. Dowell was previously convicted of wire fraud in a scheme to defraud and embezzle from the FKG Oil Company and, in June of 2014, was sentenced to a year and a day in prison. On August 20, 2014, Dowell failed to surrender to the prison as ordered and was apprehended about a week later. If convicted of the new offense, the new sentence will have to run consecutive to the previous sentence of imprisonment. Sentencing has been scheduled for May 18, 2015.
The investigation was conducted by the United States Marshal's Service. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Ex-Employee of Southern Illinois University Charged with LyingRead the Press Release
Alleged to Have Lied to Federal Agents About Providing False Information to SIU
Follow @SDILNewsKwa Mister, 38, Fairview Heights, Illinois, was charged by Indictment with two counts of Making A False Statement to the United States Department of Transportation, Office of Inspector General and the U. S. Department of Labor, Office of Labor Racketeering and Fraud Investigations, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. United States Attorney Wigginton noted, “There is no right to lie to federal agents conducting an investigation.” If convicted, Mister faces up to ten years in prison, a $250,000 fine and up to three years supervised release.
According to the Indictment, the Illinois Department of Transportation entered into an intergovernmental agreement with Southern Illinois University at Edwardsville (SIUE) to be the fiscal agent for the Highway Construction Preparatory Training Program. The indictment charges that Mister was the Director/Project Manager at the Small Business Development Center at SIUE and served as the project manager for the Highway Construction Preparatory Training Program. The indictment alleges that an investigation and an audit revealed that Mister obtained five contracts between SIUE and Phoenix Support Services for Phoenix Support Services to purportedly serve as an independent consultant to assist with the training program. The indictment further alleges that from March 2010 through January 2011, an audit discovered five (5) Purchase Orders, five (5) Contracts, and at least four (4) Justification for Sole Source Purchase or Contract forms concerning the procurement of services from "L. A. S" [name removed]., Director, d/b/a Phoenix Support Services. The indictment further alleges that the procurement of these contracts with Phoenix Support Services was initiated by the Program Manager for the Highway Construction Preparatory Training Program, Mister. Mister procured the services of his mother, L. A. S., for sole source contracts and concealed the family relationship and the potential conflict of interest from SIUE. The indictment alleges that when the propriety of the contracts with Phoenix Support Services was under investigation by SIUE, Mister lied to SIUE as to whether the owner of Phoenix Support Services was his mother. Mister is charged with lying to federal agents concerning whether he provided false information to SIUE.
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 indictment is the result of an investigation conducted by the United States Department of Transportation, Office of Inspector General, the U. S. Department of Labor, Office of Labor Racketeering and Fraud Investigations and the Federal Bureau of Investigation with the assistance of Southern Illinois University and the Office of Executive Inspector General for the Agencies of the Illinois Governor. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
Chinese National Charged with Access Device Fraud and Aggravated Identity TheftRead the Press Release
Follow @SDILNewsShu K. Chen, 38, from the People’s Republic of China, was charged by Indictment with Conspiracy to Commit Wire Fraud, two counts of Access Device Fraud, and two counts of Aggravated Identity Theft, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Chen faces up to thirty years in prison for the conspiracy and access device fraud charges and a consecutive two year sentence for each of the Aggravated Identity Theft charges, plus a $250,000 fine, up to three years supervised release, and restitution.
Chen was originally arrested by the Collinsville Police Department on December 12, 2014, at the Walmart store in Collinsville, Illinois, for using counterfeit credit cards to fraudulently purchase gift cards. Further investigation revealed that he had also used counterfeit credit cards the day before at the same Walmart and that he was traveling around the area with another individual. Additional information provided to the court in a Criminal Complaint indicated that Chen, with the assistance of another individual, had used counterfeit credit cards to make purchases at retail locations in other jurisdictions. The credit cards were encoded on the magnetic strip with legitimate credit card account numbers of area residents who were victimized. Chen provided a false New Jersey driver’s license at the time of the arrest in the name of Chang Zhang, which was the name embossed on the front of the counterfeit credit cards.
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 indictment is the result of an investigation conducted by the United States Secret Service, the Internal Revenue Service/Criminal Investigation and the Collinsville Police Department with the assistance of several other local police departments and the Madison County State’s Attorney’s Office.
The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
Three Perry County Residents Plead Guilty to Methamphetamine OffenseRead the Press Release
Follow @SDILNewsOn January 22, 2015, Brant A. Sizemore, 38, and Clinton Waters, 37, both of DuQuoin, and Jamey A. Carson, 36, of Pinckneyville, entered guilty pleas to a one-count indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The indictment alleges that the offense occurred between 2012 and September 2014, in Perry, Jackson, Randolph, Williamson, and Franklin Counties. Evidence at the plea hearings established that Sizemore, Waters, and Carson were involved with each other and with others in the manufacture of methamphetamine. They are all being held without bond pending May 22, 2015, sentencing hearings.
The offense carries a penalty of a term in federal prison of up to 20 years, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Murphysboro Police Department, and DuQuoin Police Department. The Pinckneyville Police Department and Illinois State Police Methamphetamine Response Team assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Florida Man Pleads Guilty to Role in Telemarketing ScamRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on January 20, 2015, Lev M. Derbaremdiker, 30, of Delray Beach, FL, pled guilty to one count of conspiracy to commit mail and wire fraud in connection with telemarketing. The investigation determined that Derbaremdiker was a telemarketer at C&G Marketing Associates, LLC, a Florida corporation which, in 2009, defrauded consumers across the continent using the fictitious name, Premier Timeshare Solutions (“PTS”). Working out of an office building in West Palm Beach, Florida, PTS targeted owners of timeshares throughout the United States. In various court filings related to the PTS scam, the overall scam bilked some $14.5 million from over 7,000 consumers throughout the United States and Canada, including dozens of victims within the Southern District of Illinois. Sentencing is set for May 11, 2015, at 1:30 p.m. Derbaremdiker will face up to 25 years in prison, a fine of up to $250,000, and up to 5 years of supervised release.
This prosecution is one of nearly 50 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service with assistance from the Florida Attorney General’s Office and the Florida Department of Agriculture. The case is being prosecuted by Special Assistant United States Attorney Michael Hallock and Assistant United States Attorney William Coonan.
Florida Woman Sentenced for Telemarketing FraudRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on January 15, 2015, Tina L. White, 46, of Haverhill, FL was sentenced in the United States District Court in East St. Louis, Illinois on two counts of conspiracy to commit mail and wire fraud in connection with telemarketing. White was sentenced to 30 months in prison, to be followed by two years of supervised release.White was also ordered to pay a $1,000 fine and a $200 special assessment.
The investigation determined that White participated in the scheme between October 5, 2007, and approximately January 2010. She worked as a telemarketer in the Belvedere office of Creative Vacation Solutions (CVS) in May 2009, and later during 2009 she became a manager at American Marketing Group (AMG).
Telemarketers and managers at CVS and AMG engaged in a scam intended to deceive consumers into believing that these timeshare resale companies had obtained firm and binding offers from purchasers to buy that consumer's timeshare interest. Consumers were told by telemarketers that the purported sales of their timeshares would occur only after the consumers paid certain up-front fees that the companies represented would be returned at closing, which never occurred. Despite collecting approximately $35 million in pre-paid up-front fees from consumers for "timeshare resale services," CVS and AMG were not instrumental in selling a single timeshare. The fees were not being used for closing costs or other expenses, but were instead being purloined to enrich the telemarketers and their bosses.
This prosecution is one of nearly 50 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service with assistance from the Florida Attorney General’s Office and the Florida Department of Agriculture. The case is being prosecuted by Special Assistant United States Attorney Michael Hallock and Assistant United States Attorney Nathan Stump.
Multiple Arrests Announced in Large Drug RingRead the Press Release
U.S. Attorney Stephen R. Wigginton of the Southern District of Illinois announced today that 16 people were arrested for offenses relating to the production and distribution of methamphetamine in Marion and Clinton Counties on Jan. 6, 2015, following their indictment by a Federal Grand Jury sitting in the Southern District of Illinois. The 16 arrested are: Daniel L. Gazdik, 50, Sara Rose Davis, 33, Brian Fear, 40, Misty Fear, 31, Katelyn Woolever, 21, Joseph Smith, 34, James Horton, 48, Destry Wood, 51, Shelonda Shackleford, 26, Craig Heitkamp, 50, and Rachel Reeve, all of Centralia; Michael Flanagan, 41, and Kathy Tomes, 61, of Sandoval; Dusty Gambill, 39, of Central City; and David Altom, 41, and Jayme Barnes, 35, of Odin.
Gazdik and Davis are charged in a seven-count indictment. Count 1 charges both with conspiracy to manufacture and distribute methamphetamine; Counts 2 and 3 charge Gazdik with distribution of methamphetamine; Counts 4 and 6 charge Gazdik, and Counts 5 and 7 charge Davis, with possession of a listed chemical knowing it would be used to manufacture methamphetamine. The maximum penalty for Count 1 is not less than five years in federal prison and up to 40 years in prison, a $5 million fine, and at least four years’ supervised release. The maximum penalty for Counts 2 and 3 is 20 years in prison, a $1 million fine, and at least three years’ supervised release. The maximum penalty for each of the remaining counts is up to 20 years in prison, a $250,000 fine, and three years’ supervised release.
Brian and Misty Fear, Woolever, Smith, and Reeve are all charged in an eight-count indictment. Count 1 charges all defendants with conspiracy to manufacture and distribute methamphetamine; Count 2 charges the fears with possession of equipment, chemicals, products and materials with intent to manufacture methamphetamine; Counts 3 and 5 charge Misty Fear, Counts 3 and 4 charge Brian Fear, Counts 3 and 6 charge Smith, Count 7 charges Woolever, and Count 8 charges Reeve, with possession of a listed chemical knowing it would be used to manufacture a controlled substance. The maximum penalty for Count 1 is not less than five years in federal prison, and up to 40 years in prison, a $5 million fine, and at least four years of supervised release. The maximum penalty for Count 2 is 10 years in prison, a $250,000 fine, and 3 years of supervised release. The maximum penalty for each of the remaining counts is a maximum of 20 years in prison, a $250,000 fine and three years of supervised release.
Flanagan, Gambill, Tomes, Altom, Barnes, and Horton are charged in an 11-count indictment. Count 1 charges all defendants with conspiracy to manufacture and distribute methamphetamine; Counts 2 and 7 charge Gambill, Counts 3 and 8 charge Tomes, Counts 4 and 9 charge Barnes, Counts 5 and 10 charge Altom, and Counts 6 and 11 charge Horton with possession of a listed chemical knowing it would be used to manufacture a controlled substance. The maximum penalty for Count 1 is not less than five years in federal prison, and up to 40 years in prison, a $5 million fine, and at least four years’ supervised release. The maximum penalty for each of the remaining counts is up to 20 years in prison, a $250,000 fine and 3 years’ supervised release.
Wood and Shackleford are charged in a 15-count indictment. Count 1 charges both with conspiracy to manufacture and distribute methamphetamine; Count 8 charges Wood with attempt manufacture of methamphetamine; Counts 12 and 13 charge Shackleford, and Counts 14 and 15 charge Wood, with possession of a listed chemical knowing it would be used to manufacture a controlled substance. The maximum penalty for Count 1 is not less than five years in federal prison, up to 40 years in prison, a $5 million fine, and at least four years’ supervised release. The maximum penalty for each of the remaining counts is up to 20 years in prison, a $250,000 fine and 3 years’ supervised release.
Heitkamp is charged in a two-count indictment. Count 1 charges him with possession of a listed chemical knowing it would be used to manufacture a controlled substance; Count 2 charges him with unlawful user of a controlled substance in possession of firearms. The maximum penalty for Count 1 is up to 20 years in federal prison, a $250,000 fine and three years’ supervised release. The maximum penalty for Count 2 is up to 10 years in prison, a $250,000 fine, and three years’ 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 proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Information leading to the charges was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team, the Centralia Police Department, the Jefferson County Sheriff’s Department and the Mt. Vernon Police Department. Assisting in the arrests were the United States Marshal Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Illinois Department of Corrections. All of these cases are being prosecuted by Assistant United States Attorney Kit Morrissey.
Multiple Arrests Announced in Large Drug RingRead the Press Release
Sixteen Individuals Charged in Multiple Indictments
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that 16 people were arrested for offenses relating to the production and distribution of methamphetamine in Marion and Clinton Counties on January 6, 2015, following their indictment by a Federal Grand Jury sitting in the Southern District of Illinois. The 16 arrested are: Daniel L. Gazdik, 50, and Sara Rose Davis, 33, both of Centralia; Brian Fear, 40, Misty Fear, 31, Katelyn Woolever, 21, Joseph Smith, 34, and Rachel Reeve, all of Centralia; Michael Flanagan, 41, Sandoval, Dusty Gambill, 39, Central City, Kathy Tomes, 61, Sandoval, David Altom, 41, Odin, Jayme Barnes, 35, Odin, and James Horton, 48, Centralia; Destry Wood, 51, and Shelonda Shackleford, 26, both of Centralia; and Craig Heitkamp, 50, Centralia.
Gazdik and Davis are charged in a seven-count Indictment. Count 1 charges both with Conspiracy to Manufacture and Distribute Methamphetamine; Counts 2 and 3 charge Gazdik with Distribution of Methamphetamine; Counts 4 and 6 charge Gazdik, and Counts 5 and 7 charge Davis, with Possession of a Listed Chemical Knowing it Would be Used to Manufacture Methamphetamine. The maximum penalty for Count 1 is not less than 5 years in federal prison and up to 40 years in prison, a $5 million fine, and at least 4 years’ supervised release. The maximum penalty for Counts 2 and 3 is 20 years in prison, a $1 million fine, and at least 3 years’ supervised release. The maximum penalty for each of the remaining counts is up to 20 years in prison, a $250,000 fine, and 3 years’ supervised release.
Brian and Misty Fear, Woolever, Smith, and Reeve are all charged in an eight-count Indictment. Count 1 charges all defendants with Conspiracy to Manufacture and Distribute Methamphetamine; Count 2 charges the Fears with Possession of Equipment, Chemicals, Products and Materials with Intent to Manufacture Methamphetamine; Counts 3 and 5 charge Misty Fear, Counts 3 and 4 charge Brian Fear, Counts 3 and 6 charge Smith, Count 7 charges Woolever, and Count 8 charges Reeve, with Possession of a Listed Chemical Knowing It Would Be Used to Manufacture a Controlled Substance. The maximum penalty for Count 1 is not less than 5 years in federal prison, and up to 40 years in prison, a $5 million fine, and at least 4 years’ supervised release. The maximum penalty for Count 2 is 10 years in prison, a $250,000 fine, and 3 years’ supervised release. The maximum penalty for each of the remaining counts is a maximum of 20 years in prison, a $250,000 fine and 3 years’ supervised release.
Flanagan, Gambill, Tomes, Altom, Barnes, and Horton are charged in an 11-count Indictment. Count 1 charges all defendants with Conspiracy to Manufacture and Distribute Methamphetamine; Counts 2 and 7 charge Gambill, Counts 3 and 8 charge Tomes, Counts 4 and 9 charge Barnes, Counts 5 and 10 charge Altom, and Counts 6 and 11 charge Horton with Possession of a Listed Chemical Knowing It Would Be Used to Manufacture a Controlled Substance. The maximum penalty for Count 1 is not less than 5 years in federal prison, and up to 40 years in prison, a $5 million fine, and at least 4 years’ supervised release. The maximum penalty for each of the remaining counts is up to 20 years in prison, a $250,000 fine and 3 years’ supervised release.
Wood and Shackleford are charged in a 15-count indictment. Count 1 charges both with Conspiracy to Manufacture and Distribute Methamphetamine; Count 8 charges Wood with Attempt Manufacture of Methamphetamine; Counts 12 and 13 charge Shackleford, and Counts 14 and 15 charge Wood, with Possession of a Listed Chemical Knowing It Would Be Used to Manufacture a Controlled Substance. The maximum penalty for Count 1 is not less than 5 years in federal prison, up to 40 years in prison, a $5 million fine, and at least 4 years’ supervised release. The maximum penalty for each of the remaining counts is up to 20 years in prison, a $250,000 fine and 3 years’ supervised release.
Heitkamp is charged in a two-count Indictment. Count 1 charges him with Possession of a Listed Chemical Knowing It Would Be Used to Manufacture a Controlled Substance; Count 2 charges him with Unlawful User of a Controlled Substance in Possession of Firearms. The maximum penalty for Count 1 is up to 20 years in federal prison, a $250,000 fine and 3 years’ supervised release. The maximum penalty for Count 2 is up to 10 years in prison, a $250,000 fine, and 3 years’ 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 proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Information leading to the charges was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team, the Centralia Police Department, the Jefferson County Sheriff’s Department and the Mt. Vernon Police Department. Assisting in the arrests were the United States Marshal Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Illinois Department of Corrections. All of these cases are being prosecuted by Assistant United States Attorney Kit Morrissey.
Missouri Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Follow @SDILNewsDemarcus A. Buford, a 37-year old Jefferson City, Missouri, man was sentenced on January 7, 2015, in federal district court, in East St. Louis, Illinois, on one count of failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Buford was sentenced to 30 months in federal prison; five years supervised release, and ordered to pay a $100 special assessment and a $150 fine.
Buford moved from Illinois to Missouri, after signing an Illinois Sex Offender Registration Act Notification Form on January 15, 2013, acknowledging his requirement to either update his sex offender registration in Illinois to reflect his change of address, or register as a sex offender in Missouri. He neither registered in Missouri, nor updated his registration in Illinois as required by law. Buford had been previously convicted of Aggravated Criminal Sexual Abuse on August 27, 2008, in St. Clair County, Illinois.
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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better 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 United States Marshals Service and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Collinsville Housewife Indicted for Triple Bank BurglaryRead the Press Release
Follow @SDILNewsA United States Grand Jury sitting in Benton returned an indictment against Easter Jimison, 37, of Collinsville, Illinois, charging her with three counts of Bank Burglary, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
The offenses charged in the indictment allege that on November 7, 2014, Easter Jimison entered First Collinsville Bank in Caseyville, Illinois, and handed the teller a note which read “put the money in a bag. Act normal. Don’t look around.” The bank teller placed stacks of bills on the counter until Jimison said “that’s enough,” then she put the money inside of her coat and walked out the front door of the bank. As a result, the FCB Caseyville Branch suffered a loss of $4,621. On December 5, 2014, Jimison is charged with walking into the Bank of Edwardsville in Swansea, Illinois, and displaying a demand note to a bank teller which read “give me the money, this is not a joke.” The bank teller promptly gathered the money from her drawer and placed it on the counter. Jimison then stated that she was unable to go through with the robbery and began to apologize and make excuses stating that she needed the money for rent. On December 10, 2014, Jimison is alleged to have arrived at First Collinsville Bank in Maryville, Illinois in Madison County where she unfolded a note to the teller which stated “act normal” and “withdrawal.” The bank teller promptly complied with the demand note and handed Jimison $1,144.00. Jimison then left the bank taking the money and the demand note with her.
If convicted, Jimison faces a term in prison of up to 20 years on each count of Bank Burglary, and a $250,000 fine. The case was investigated by the Federal Bureau of Investigations, Caseyville Police Department, Maryville Police Department, with assistance from the Swansea Police Department. The case is being prosecuted by Special Assistant United States Attorney Michael Hallock.
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.
Cairo Man Sentenced for Firearm OffenseRead the Press Release
Follow @SDILNewsDeldrick L. Spence, 28, from Cairo, Illinois, was sentenced on January 5, 2015, in United States District Court in East St. Louis, Illinois, on one count of unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Spence was sentenced to 57 months in prison, two years of supervised release, fined $200 and ordered to pay $100 special assessment, following his plea of guilty on September 22, 2014. The charges stem from a traffic stop conducted by the Clair County Sheriff’s Department that occurred on December 21, 2013, in Belleville, Illinois, when Spence, a passenger in the vehicle, admitted to owning a .9mm pistol uncovered during a search of the car, found inside the passenger seat side pocket. Spence also agreed to forfeiture of the firearm.
The investigation was conducted by the St. Clair County Sheriff’s Department and prosecuted by Special Assistant United States Attorney Jonathan S. Drucker.
Jersey County Man Sentenced for $1.2 Million Dollar Tax Evasion and Unlawful Firearms PossessionRead the Press Release
Follow @SDILNewsA Jersey County resident was sentenced to federal prison for tax evasion and possession of a firearm by a user of controlled substances on December 19, 2014, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. David Ray, 55, of Fieldon, Illinois, was sentenced to 37 months in federal prison, a $7,500 fine, $1,272,904.83 in restitution, a $200 special assessment and three years of supervised release. Ray also forfeited a gun collection valued between $75,000-$100,000.
“In stealing from all of us by failing to pay his fair share of taxes, Ray not only ended up forfeiting his gun collection, but he forfeited his privilege to live in his mansion for the much harsher living conditions of federal prison.” noted United States Attorney Wigginton.
Ray waived his right to face a grand jury indictment and pled guilty to charges brought directly by the US Attorney’s Office on July 23, 2013. Documents filed in District Court established that Ray committed tax evasion by using his various businesses to pay personal expenses, by vesting ownership of personal assets in the name of his businesses, and by filing false tax returns with the IRS or refusing to file a US Individual Tax Return all together. In tax years 2005-2010, Ray concealed income from the IRS for the purpose of limiting his tax liability resulting in him avoiding $1,272,904.83 in federal income taxes that he otherwise would have been required to pay. Ray agreed to make full restitution to the IRS as a condition of his guilty plea.
Ray was also convicted for possessing firearms while being a cocaine user. Evidence presented at the plea hearing established that federal agents seized 96 firearms and more than 2,500 rounds of ammunition from Ray’s home when it was searched on February 13, 2012. In addition, agents also seized 110 grams of cocaine from Ray’s home. Ray admitted possessing the firearms as a hunter and gun collector. But he also acknowledged a serious cocaine habit, admitting that he purchased and used 3-5 ounces of cocaine every 2-3 weeks prior to his home being raided. Under federal law, drug users are categorically prohibited from possessing firearms.
Ray was ordered to remain in custody of the United States Marshal pending his transfer to federal prison.
The investigation was conducted by agents from the Internal Revenue Service/Criminal Investigations, the Jersey County Sheriff’s Department, the Bureau of Alcohol Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Slovakian Man Indicted for Business Directory ScamRead the Press Release
Follow @SDILNewsWolfgang Valvoda, 44, who did business out of Bratislava, Slovakia, was indicted by a federal grand jury for his role in an international mass marketing business directory scheme which defrauded consumers throughout the United States and Canada, including victims in Madison and Richland counties in the Southern District of Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. The grand jury charged Valvoda with one count of conspiracy to commit mail fraud and two counts of mail fraud. If convicted, each count subjects Valvoda to a term in federal prison of up to 20 years, a fine of up to $250,000 and three years of supervised release.
As alleged in the Indictment, Valvoda worked for Construct Data Publishers, a.s., a corporation based in Bratislava, Slovakia, and related companies. Using deceptive mailings, Valvoda attempted to deceive businesses and nonprofit organizations in the United States and other countries to pay for unordered listings. Businesses were led to believe that the form sent by Valvoda, then signed and returned by the victim, was only for verification of information in a free listing for a particular trade show that the business regularly attended and not an order for an expensive listing in a different and worthless Internet directory called Fairguide.
On April 17, 2013, the Federal Trade Commission obtained a court-ordered preliminary injunction against Valvoda and Construct Data Publishers, a.s., which prohibited further deceptive mailings. The Federal Trade Commission investigated this scheme and brought a civil complaint in the United States District Court for the Northern District of Illinois in Chicago (Case Number 13 CV 1999). The Indictment also alleges that from 2010 to 2013, over 1000 businesses across the country were scammed by Valvoda and Construct Data Publishers, a.s. out of more than $2 million.
These prosecutions follow an investigation by the Midwest Region Office of the Federal Trade Commission and the St. Louis Field Office of the Chicago Division of the United States Postal Service. This prosecution will be handled by Assistant United States Attorneys Michael J. Quinley and Bruce E. Reppert.
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.
Florida Telemarketer Pleads Guilty to Timeshare Resale ScamRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Leandro Velazquez pleaded guilty today to conspiracy to commit mail and wire fraud. The plea was entered at the United States District Court in East St. Louis, Illinois. Sentencing is set for Friday, April 3, 2015 at 10:00 AM, at which time Velazquez faces a term in prison of up to twenty five (25) years, a $250,000 fine and five years’ supervised release.
Facts revealed in Court showed that on February 20, 2014, a grand jury returned a one count indictment charging Velazquez with conspiracy to commit mail fraud and wire fraud in connection with telemarketing. The indictment alleged that Velazquez and others were engaged in an extensive telemarketing scam which operated in Orlando, Florida, that bilked thousands of victims of approximately $6 million dollars, victimizing consumers throughout the United States and Canada. There were victims in seven of the thirty eight (38) counties comprising the Southern District of Illinois.
The criminal indictment alleged that Velazquez was a co-owner of National Solutions and related companies located in Orlando, Florida. The scheme operated under more than a dozen business names including Bluescape Timeshares International, Country Wide Timeshares, Countrywide Timesharesales MA, Landmark Timeshares, Propertys Direct, Quicksale Propertys, Sun Property Networks, Sun Property’s, Universal Propertys, VIM Timeshares, Propertys DRK, Quick Sale Advisers, Quick Sale International, City Resorts, Resort Advisers, American Timeshares, Exit Week, and Resort Advisors International. The indictment alleged that Velazquez’ participation in the scheme began on or about December 5, 2007, and continued through July 13, 2011. The indictment alleged that telemarketers for National Solutions placed cold calls to timeshare owners and then falsely represented that their company had actual buyers for the owners’ timeshare property. Telemarketers then solicited advanced fees of up to several thousand dollars from each victim in purported closing costs that they promised would be refunded to the owner once the closing on the property occurred. Many timeshare owners were told that their closings were scheduled within a number of days. Despite collecting fees from these victims, these companies were not successful in selling a single timeshare unit, the indictment alleged. Velazquez and his co-conspirators, the indictment alleged, simply pocketed these supposed closing costs.
The Federal Trade Commission investigated the National Solutions businesses and brought a civil complaint in the United States District Court for the Middle District of Florida in Orlando. In that action the FTC seized the offices and records of National Solutions on July 13, 2011, pursuant to Court Order.
This prosecution follows an investigation by the Midwest Region Office of the Federal Trade Commission and the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The prosecution of the case was handled by Assistant U.S. Attorneys Bruce E. Reppert and Michael J. Quinley.
Consumers who believe that they have been the victim of a consumer fraud should call the Federal Trade Commission 1-877-FTC-HELP (1-877-382-4357) or file an online complaint at https://www.ftccomplaintassistant.gov.
Godfrey Man Indicted for Receiving Child PornographyRead the Press Release
Follow @SDILNewsA federal grand jury sitting in East St. Louis has indicted Adam B. Hill, 35, of Godfrey, Illinois, for Receipt of Child Pornography, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. The indictment alleges that between July 1, 2013, and July 1, 2014, Hill knowingly received visual depictions containing child pornography using a facility of interstate commerce.
A trial date has not yet been set. If convicted of Receipt of Child Pornography, Hill faces a jail term of not less than five (5) years up to twenty (20) years, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life.
An Indictment 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.
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 and the case is assigned to Assistant United States Attorney Ali Summers for prosecution.
Florida Man Guilty in Mortgage Relief ScamRead the Press Release
Earlier today, a criminal information was filed charging Jonathan L. Herbert, of Lighthouse Point, Florida, with wire fraud, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. The information charged Herbert, 36, with conducting a home loan modification scam that targeted individuals who were having difficulties making their mortgage payments. During a hearing this afternoon before United States District Judge David R. Herndon, Herbert pleaded guilty to the fraud charge contained in the criminal information.
According to the information, Herbert conducted his fraud scheme from a strip mall office located in Fort Lauderdale, Florida. Herbert usually contacted his victims through unsolicited telephone calls, introducing himself as a “federal loan officer” with the “Federal Debt Commission,” the “Federal Mortgage Marketplace,” or the “Federal Assistance Program.” Herbert used these names and titles in order to deceive the victims into believing that his fraudulent program was operated and approved by the federal government. Herbert told his victims that they qualified for a loan modification because of financial hardship or some type of illegal conduct engaged in by their lenders.
The information further charges that, after the initial phone calls, Herbert mailed letters to the victims who expressed interest in his bogus loan modification programs. These letters congratulated the victims on their acceptance into the program, quoted a new monthly mortgage payment rate, and directed the victims to begin sending their monthly mortgage payments to one of two addresses located in Washington D.C. The Washington D.C. addresses were for mailboxes which Herbert had rented at UPS Stores. Pursuant to forwarding orders Herbert put in place with these UPS stores, the victims’ payments were then re-routed to Herbert in Florida.
According to the information, Herbert did not apply any of the money he received from the victims to reduce their home loan debt. Instead, he used the money he received from the victims for his own personal expenses and to continue his fraudulent operation. The total amount of losses sustained by the victims as a result of Herbert’s fraud scheme is approximately $750,000.
One of Herbert’s victims resides in Troy, Illinois. The information charges that during a telephone call in September 2013, Herbert falsely told this victim that the Federal Debt Commission had selected her to benefit from a new federal mortgage assistance program instituted by President Obama.
“The criminal conduct involved in this case is truly despicable,” said United States Attorney Wigginton. “Herbert preyed upon people who were already vulnerable due to financial hardship. By pretending that he was acting on behalf of the government and calling to help them, he stole their money and made their situations worse. The United States Attorney’s Office for Southern Illinois will aggressively prosecute individuals who commit these types of frauds.”
“Herbert was convicted today of operating a nationwide mortgage modification fraud scheme that he falsely claimed was affiliated with federal housing aid programs, including Home Affordable Modification Program (HAMP),” said Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP). “Fraud perpetrated at the expense of struggling homeowners and under the guise of HAMP or other TARP program is reprehensible, and SIGTARP and our law enforcement partners will ensure that justice is served for perpetrators of these crimes.”
Herbert’s sentencing hearing has been scheduled for March 27, 2015, at 11:00 AM, at the Federal Courthouse in East St. Louis, Illinois. Wire fraud that involves telemarketing and victimizes persons over the age of 55 is punishable by up to 30 years’ imprisonment, and/or a $250,000 fine, and up to five years of supervised release. Herbert’s actual sentence will be determined by the court and will be guided by the advisory federal Sentencing Guidelines. After his plea, Herbert was taken into custody and will be held without bond awaiting sentencing.
In July of this year, the Federal Trade Commission (“FTC”) took legal action to shut down Herbert’s business. The FTC has cooperated with, and provided assistance to, the United States Attorney’s Office, the USPIS, and SIGTARP.
The investigation is being conducted by the United States Postal Inspection Service (“USPIS”) and the Treasury Department’s Special Inspector for the Troubled Asset Relief Program (“SIGTARP”). The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Florida Man Guilty in Mortgage Relief ScamRead the Press Release
Follow @SDILNewsEarlier today, a criminal information was filed charging Jonathan L. Herbert, of Lighthouse Point, Florida, with wire fraud, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. The information charged Herbert, 36, with conducting a home loan modification scam that targeted individuals who were having difficulties making their mortgage payments. During a hearing this afternoon before United States District Judge David R. Herndon, Herbert pled guilty to the fraud charge contained in the criminal information.
According to the information, Herbert conducted his fraud scheme from a strip mall office located in Fort Lauderdale, Florida. Herbert usually contacted his victims through unsolicited telephone calls, introducing himself as a “federal loan officer” with the “Federal Debt Commission,” the “Federal Mortgage Marketplace,” or the “Federal Assistance Program.” Herbert used these names and titles in order to deceive the victims into believing that his fraudulent program was operated and approved by the federal government. Herbert told his victims that they qualified for a loan modification because of financial hardship or some type of illegal conduct engaged in by their lenders.
The information further charges that, after the initial phone calls, Herbert mailed letters to the victims who expressed interest in his bogus loan modification programs. These letters congratulated the victims on their acceptance into the program, quoted a new monthly mortgage payment rate, and directed the victims to begin sending their monthly mortgage payments to one of two addresses located in Washington D.C. The Washington D.C. addresses were for mailboxes which Herbert had rented at UPS Stores. Pursuant to forwarding orders Herbert put in place with these UPS stores, the victims’ payments were then re-routed to Herbert in Florida.
According to the information, Herbert did not apply any of the money he received from the victims to reduce their home loan debt. Instead, he used the money he received from the victims for his own personal expenses and to continue his fraudulent operation. The total amount of losses sustained by the victims as a result of Herbert’s fraud scheme is approximately $750,000.
One of Herbert’s victims resides in Troy, Illinois. The information charges that during a telephone call in September 2013, Herbert falsely told this victim that the Federal Debt Commission had selected her to benefit from a new federal mortgage assistance program instituted by President Obama.
In commenting on today’s conviction, United States Attorney Wigginton stated: “The criminal conduct involved in this case is truly despicable. Herbert preyed upon people who were already vulnerable due to financial hardship. By pretending that he was acting on behalf of the government and calling to help them, he stole their money and made their situations worse. The United States Attorney’s Office for Southern Illinois will aggressively prosecute individuals who commit these types of frauds.”
“Herbert was convicted today of operating a nationwide mortgage modification fraud scheme that he falsely claimed was affiliated with federal housing aid programs, including Home Affordable Modification Program (HAMP),” said Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP). “Fraud perpetrated at the expense of struggling homeowners and under the guise of HAMP or other TARP program is reprehensible, and SIGTARP and our law enforcement partners will ensure that justice is served for perpetrators of these crimes.”
Herbert’s sentencing hearing has been scheduled for March 27, 2015, at 11:00 AM, at the Federal Courthouse in East St. Louis, Illinois. Wire fraud which involves telemarketing and victimizes persons over the age of 55 is punishable by up to 30 years’ imprisonment, and/or a $250,000 fine, and up to five years of supervised release. Herbert’s actual sentence will be determined by the court and will be guided by the advisory federal Sentencing Guidelines. After his plea, Herbert was taken into custody and will be held without bond awaiting sentencing.
In July of this year, the Federal Trade Commission (“FTC”) took legal action to shut down Herbert’s business. The FTC has cooperated with, and provided assistance to, the United States Attorney’s Office, the USPIS, and SIGTARP.
The investigation is being conducted by the United States Postal Inspection Service (“USPIS”) and the Treasury Department’s Special Inspector for the Troubled Asset Relief Program (“SIGTARP”). The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Centralia Man Indicted on Federal Charges for Burglarizing Gun DealerRead the Press Release
Follow @SDILNewsA Centralia resident charged by criminal complaint on December 3, 2014, was indicted by a federal grand jury on Tuesday, December 16, 2014, for burglarizing a Federal Firearms Licensee (FFL), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Dakota R. Moss, 19, faces four felony charges for his role in burglarizing the Buchheit of Centralia Farm and Home Supply Store and stealing thirty nine (39) guns. The charges against Moss in the indictment are the same as those originally brought in the criminal complaint. Moss’ accomplice was not identified because that person is a juvenile under federal law.
The complaint affidavit previously filed in the district court stated that on November 29, 2014, the Buchheit of Centralia Farm and Home Supply Store was burglarized and thirty nine (39) firearms were stolen, along with at least one thousand rounds of ammunition. The burglary was accomplished using a full size pickup truck, which was stolen from the Centralia, Illinois High School. The suspects utilized the stolen truck to ram the locked security gate to make entry onto Buchheit’s parking lot, where the suspects then broke out store windows to make entry into the store. The surveillance video established that the initial burglary occurred at approximately 2:40 am. However, the video evidence revealed that the two suspects left the scene and returned to steal additional firearms and ammunition on two occasions - thereby making a total of three separate entries into the FFL between 2:40 am and 4:00 am.
The complaint affidavit said that Moss and his juvenile accomplice were armed while inside of Buchheit’s and intended to shoot anyone who interrupted the burglary – including police. The complaint alleged that Moss and his accomplice stole the firearms in order to sell the guns; and that Ferguson, Missouri was among the planned potential destinations for the weapons. The affidavit also states that the two planned on participating in the looting of businesses in the Ferguson, Missouri area, however the plan did not materialize.
Centralia Police and agents from the ATF identified the suspects soon after the burglary and have recovered 37 of the 39 stolen guns as of this date. Anyone with knowledge of the remaining stolen firearms or the ammunition is encouraged to call law enforcement.
US Attorney Stephen R. Wigginton credited the law enforcement response when he stated, “The ATF and the Centralia police department are to be commended for having already recovered 37 of the stolen firearms. They have kept those guns out of the hands of criminals.” US Attorney Wigginton also praised the cooperation from Clinton County State’s Attorney John Hudspeth noting, “The State’s Attorney has been a valuable partner in this investigation. He personally ensured that these two suspects remained in custody while the federal investigation was ongoing. We look forward to continuing this joint investigation to ensure that everyone who participated in the crime is prosecuted to the fullest extent of the law.”
The indictment charges Moss with stealing firearms from a FFL, possession of stolen firearms, being a felon in possession of firearms, and with carry and use of a firearm during a crime of violence. The first three charges are all punishable by not more than 10 years in federal prison, a $250,000 fine, and not more than 5 years supervised release. Carry and use of a firearm during a crime of violence carries an additional mandatory consecutive sentence of not less than 5 years. However, as in any case, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing.
The investigation is being conducted by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Centralia Police Department, along with the Clinton County State’s Attorney’s office. 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, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
Carbondale Resident Sentenced for Crack Cocaine OffenseRead the Press Release
Follow @SDILNewsOn December 16, 2014, Johnathan T. Buck, a/k/a “Buffalo,” 40, of Carbondale, Illinois, was sentenced on a federal crack cocaine violation, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Buck, who had previously pled guilty to a one-count indictment, charging conspiracy to distribute crack cocaine, was sentenced to 120 months in federal prison, to be followed by three years’ supervised release, and fined $200.00. The offense occurred between 2013 and March 2014, in Jackson County. Evidence at the plea and sentencing hearings established that Buck was involved with co-defendant Maurice Christian, a/k/a “Reece,” and others in the distribution of crack cocaine in Carbondale. Buck and his associates were transporting crack cocaine from northern Illinois to Carbondale for distribution. On multiple occasions, Buck sold crack cocaine to a confidential source working for law enforcement. At sentencing, the district court found that Buck was responsible for 638 grams of crack cocaine. Buck’s sentence was enhanced because he possessed a firearm during his participation in the crack cocaine offense. Christian has pled guilty to his role in the conspiracy and is awaiting sentencing.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Carbondale Police Department, and Drug Enforcement Administration. The Jackson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Carbondale Man Sentenced for Firearm OffenseRead the Press Release
Follow @SDILNewsOn December 16, 2014, Travis D. Bailey, 30, was sentenced for a federal firearm violation, United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Bailey, who had previously pled guilty to a one-count indictment, charging Unlawful Possession of a Firearm by a Felon, was sentenced to 84 months in prison, to be followed by three years of supervised release, and fined $200.00. Evidence at the plea and sentencing hearings established that, on March 7, 2014, Carbondale police officers executed a search warrant at Bailey’s Carbondale residence. In Bailey’s backpack, officers located approximately three pounds of marihuana and a stolen firearm. At the residence, officers also located additional marihuana, packaged for distribution, along with digital scales, drug packaging materials, and United States currency. At the time of the March 2014 offense, Bailey had three prior felony marihuana convictions and was prohibited from possessing firearms.
The investigation was conducted by the Carbondale Police Department. The Jackson County State’s Attorney’s Office also assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.