Southern District of Illinois
Press releases recorded for this federal judicial district.
St. Louis Man Pleads Guilty to “Hobbs Act” RobberyRead the Press Release
Case is One of Many Brought as a Result of United States Attorney Wigginton’s Metro-East Armed Robbery Initiative
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today, that on January 23, 2014, Carvin G. Brooks, a 33-year old St. Louis, Missouri, man pled guilty in federal district court, in East St. Louis, Illinois, to an indictment charging him with one count of “Hobbs Act Robbery.” The Hobbs Act makes it a crime to obstruct, delay, or affect interstate commerce by robbery. Brooks will be sentenced on April 24, 2014, where he faces a maximum potential sentence of 20 years’ imprisonment and/or a fine of up to $250,000, followed by a term of 3 years of supervised release, and a $100 mandatory special assessment.
On October 9, 2013, Brooks entered the BP Gas Station and Convenient Mart in Cahokia, Illinois, demanding money from the cashier. Brooks physically assaulted a female clerk, punching her several times on the head with his closed fist, before finally taking approximately $300 from the register. The clerk received medical treatment for the injuries she sustained.
A tip from Crimestoppers led to Brooks’ arrest. This case was investigated by detectives from the Cahokia Police Department and prosecuted by Special Assistant United States Attorney Neal C. Hong.
Four Indicted in Timeshare Telemarketing ScamRead the Press Release
Jacqueline Enid Acevedo, 30, of Cedar Hill, Texas; Nathan Scott Christian, 30, of Boynton Beach, Florida; Robert Joseph Lopicola, 43, of Doral, Florida; and Kyle Richard Robertson, 31, of Miami, Florida, were each indicted by a federal grand jury for one count of conspiracy to commit mail and wire fraud, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Between late 2007 and approximately December 2009, approximately 25,500 consumers were victimized in all fifty states, the District of Columbia and Puerto Rico; all ten Canadian provinces and the Northwest Territory of Canada. Approximately $35 million was fraudulently collected by telemarketers involved in this scheme. At least sixty-eight (68) consumers in at least thirty (30) of the thirty-eight (38) counties comprising the Southern District of Illinois were victimized.
The indictments allege that between late 2007 and continuing until on or about November 2009, C&G Marketing Associates, LLC, a Florida corporation that defrauded consumers using the fictitious name, Premier Timeshare Solutions (“PTS”) by conducting a fraudulent timeshare resale scheme through the use of telemarketing. PTS telemarketers worked in an office building in West Palm Beach, Florida. From there, they placed phone calls to timeshare owners throughout the United States, Canada, and elsewhere, falsely representing or implying that the company had found someone who wanted to buy their timeshare interest. In exchange for an advance fee that typically exceeded $1,000, the PTS telemarketers promised to handle all the details of the sale and send the victims the proceeds after closing. There were no interested buyers, the closings did not occur, and the timeshares were not resold. Instead, the conspirators simply pocketed the advanced fees.
In April 2013, Jose Goyos, was indicted for his role in this scheme. Mr. Goyos has pled guilty to the charge and is awaiting sentencing.
If convicted, each person is subject to a term of imprisonment of up to 25 years, a fine of $250,000 and five years of supervised release.
These cases were investigated by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service General’s office. The prosecutions of the cases are being handled by Assistant United States Attorneys Bruce Reppert and William E. Coonan.
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.
Five Indicted for Participation in Timeshare Telemarketing ScamRead the Press Release
Chedna Charles, 25; James Richard Currey, 54; Christopher Robert Garten, 23; Osvaldo Gonzalez, 39; all of Orlando, Florida, and Amber Lynn Jones, 27, of Rome, Georgia, were indicted by a federal grand jury for their roles in a nationwide telemarketing scheme which defrauded persons throughout the United States and Canada, including victims in seven counties in the Southern District of Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced. The grand jury charged the six with conspiracy to commit mail and wire fraud. If convicted, each is subject to a term of imprisonment of up to 25 years, a fine of $250,000 and five years of supervised release.
The five were telemarketers who worked for 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 Timeshares 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.
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. The company solicited advanced fees of up to several thousand dollars from each victim in purported closing costs that were to be refunded to the owner at closing. Many timeshare owners were told that their closings would occur within a matter of days.
Despite collecting fees from these victims, the National Solutions companies were not successful in selling a single timeshare unit and indeed made little effort even to market the properties for sale. All advance fees collected were pocketed by the telemarketers.
Participation in the scheme began in April 2008 and continued through July 13, 2011, when the Federal Trade Commission raided the business pursuant to a court order.1 From 2007 to 2011, over 2,500 timeshare owners across the country were scammed by the National Solutions businesses to the tune of more than $6 million.
After being found guilty by a jury after a four-day trial in September 2013, Kathryn Garten was sentenced to 14 years in prison and ordered to pay $909,278.00 in restitution for her role in this scheme.
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. Theses prosecutions will be handled by Assistant United States Attorneys Michael J. Quinley and William E. Coonan.
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.
Federal Charges Filed in Multi-Million Dollar Telemarketing OperationRead the Press Release
On January 22, 2014, John C. Nicosia, 55, of Rochester, New York, was named in a one-count indictment for conspiracy to commit wire fraud and mail fraud in violation of Title 18, United States Code, Section 1349 the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. If convicted, Nicosia is subject to a term of imprisonment of up to 25 years, a fine of $250,000 and five years of supervised release.
The charge arose out of a telemarketing scam which operated in Las Vegas, Nevada, which the indictment alleged bilked over 3,000 victims of approximately 10 million dollars. Consumers were victimized in all fifty states, the District of Columbia and Puerto Rico, all ten Canadian provinces and the Northwest Territory of Canada, as well as Australia, Israel and the United Kingdom. There were at least twelve (12) victims in nine (9) of the thirty-eight (38) counties comprising the Southern District of Illinois. The indictment alleges that the scheme operated from December 5, 2006 until January 24, 2012.
The indictment alleges that Nicosia was a telemarketer at a telemarketing company, called Vacation Max, which operated a timeshare resale scam. The company purported to be a Georgia corporation located in Delaware, but actually operated in Las Vegas, Nevada. The indictment alleges that the company falsely represented that they had found corporate buyers interested in acquiring blocks of timeshare units including the consumer's timeshare unit for purported business and tax purposes. The company solicited fees of up to several thousand dollars from each timeshare owner in purported pre-paid closing costs and related expenses. The indictment alleges that the purported sales did not occur and that Vacation Max did not successfully sell any consumer’s timeshare interest except a relatively small number at fire sale prices.
In May 2013, the owner of Vacation Max, Michael Patrick Sullivan, was indicted. Sullivan pled guilty and is awaiting sentencing.
This case is one of several cases recently prosecuted by the United States Attorney's Office for the Southern District of Illinois relating to timeshare resale fraud. The prosecution of the case is being handled by Assistant United States Attorney Bruce E. Reppert and Special Assistant United States Attorney Stuart J. Zander.
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.
Cahokia Woman Sentenced for Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Karashia A. Tabbs, 46, of Cahokia, Illinois, was sentenced in United States District Court in East St. Louis, Illinois on one count of Health Care Fraud.
Tabbs was sentenced to five years’ probation, a special assessment of $100, and ordered to pay restitution in the amount of $4,594. Tabbs previously pled guilty to submitting false and fraudulent bills in relation to personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. The investigation determined that Tabbs was submitting bills claiming to care for a person who was at the time residing in the state of Texas, while Tabbs was living in Cahokia, Illinois.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police’s Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
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 call 1-800-447-8477.
Columbia Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Devereaux L. Davis, a 36-year old Columbia, Illinois, man was sentenced on January 22, 2014, in federal district court, in East St. Louis, Illinois, on one count of to failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Davis was sentenced to 27 months in federal prison, to be followed by five years of supervised release, and ordered to pay a $100 special assessment.
The violation occurred in 2009, when Davis moved from Illinois to Missouri. He signed an Illinois Sex Offender Registration Act Notification Form on August 14, 2008, 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. Davis had been previously convicted of Aggravated Criminal Sexual Abuse on September 15, 2005, in Monroe County, Illinois. Because of his failure to register in Missouri and his failure to update his registration in Illinois, Davis was charged in federal court with Failure to Register as a Sex Offender pursuant to the Sex Offender Registration and Notification Act.
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.
St. Louis Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Nathaniel R. Duff, a 34-year old, St. Louis, Missouri, man was sentenced on January 17, 2014, 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. Duff was sentenced to 21 months in federal prison, five years of supervised release, ordered to pay a $100 special assessment, and a $150 fine.
The violation occurred in late 2012, when Duff moved from Illinois to St. Louis. He was aware that he was required to either update his sex offender registration in Illinois to reflect this change of address, or register as a sex offender in Missouri. Duff was convicted on April 15, 1999, in Third Judicial Circuit Court in Bond County, Illinois, of Aggravated Criminal Sexual Abuse. Because of his failure to register in Missouri and his failure to update his registration in Illinois, Duff was charged in federal court with Failure to Register as a Sex Offender pursuant to the Sex Offender Registration and Notification Act.
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.
Jackson County Man Sentenced for Methamphetamine ConspiracyRead the Press Release
On January 17, 2014, Daniel Loden, 30, of Grand Tower, Ill., was sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced.
Loden, who had previously pled guilty to the methamphetamine offense, was sentenced to 70 months in federal prison, to be followed by 3 years of supervised release, and fined $300. The offense occurred between March 2011 and March 2013 in Jackson County. Evidence at the plea and sentencing hearings established that Loden was involved with others in the manufacture of methamphetamine. During the conspiracy, Loden supplied others with pseudoephedrine to use to cook methamphetamine. Two co-defendants have pled guilty to their role in the methamphetamine conspiracy and are awaiting sentencing.
The investigation was conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Highland Resident Pleads Guilty to Child Pornography OffensesRead the Press Release
A Highland, Illinois, resident pled guilty on January 17, 2014, to a two-count Indictment, charging him, in Count 1, with Transportation of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, and, in Count 2, with Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Daniel C. Shaw, a/k/a “Josh Shackfer,” 38, faces a term of imprisonment of not less than five (5) but not more than twenty (20) years, a fine up to $250,000, and a term of supervised release of five (5) years to life on Count 1, and a term of imprisonment of not more than ten (10) years, a fine up to $250,000, and a term of supervised release of five (5) years to life on Count 2. In addition, upon his release from prison, Shaw must register as a sex offender as a condition of his supervised release. Sentencing is scheduled for May 30, 2014, in East St. Louis, Illinois.
The investigation began on September 23, 2012, when the mother of a fifteen year old minor contacted the Citrus County, Florida, Sheriff’s Office, and reported that a man sent her daughter pictures of a penis, and that she found sexually explicit texts between the man and her daughter. When interviewed, the daughter verified that she was sent a picture of a penis, but said that she deleted it. She also admitted that her conversations with the man, who she knew as “Josh Shackfer,” were sexual, and that she told him her age. She said that “Shackfer” told her that he would be 19 in October and that he would be moving to Florida soon. After numerous texts from the mother to the man telling him to stop communicating with her daughter were ignored, the mother reported the incident to the Citrus County Sheriff’s Office.
The subsequent Florida investigation revealed that, from on or about July 30, 2010, until January 12, 2011, Defendant Daniel C. Shaw, posing as a 16 year old boy named “Josh Shackfer,” made contact with several minor females in Florida using MySpace. Shaw was 35 years old at the time, and lived in Highland, Illinois. The investigation also revealed that Shaw, disguised as “Josh Shackfer,” engaged in sexually explicit conversations with several minor females, either through text messaging, instant messaging, or telephone calls, knowing that these girls were minors. He also asked some of these minor females to send him photographs of them naked and/or of their naked genitalia. Several females did so, including M.P., who sent close-up photographs of her naked genitalia. The pictures of M.P., which were clearly visual depictions of a minor engaged in sexually conduct, were found on Shaw’s MySpace e-mail account. After being shown the pictures by a Highland, Illinois, Police Officer, Shaw identified the pictures of M.P. by initialing each of them, and indicated that he knew M.P. was either 16 or 17. (Count 2).
In a voluntary statement to a Highland, Illinois, Police Detective, Shaw admitted communicating with the minor females in Florida using a fake MySpace page under the name of “Josh Shackfer,” in which he identified himself as an 18 year old. He said that he used images he found on the internet on this MySpace page. He also admitted engaging in sexually explicit conversations with these underage girls, and trading pictures with these minors. Shaw saved the pictures sent to him from the minor females, including the sexually explicit pictures, on Yahoo e-mail account, stating that he had approximately twenty (20) pictures on his account. Shaw said that he had been engaged in this activity for approximately six (6) months, and that he knew the girls he communicated with in Florida were between 14 and 17 years of age. The pictures that were downloaded also demonstrated that Shaw had transferred the visual depictions of the minors engaged in sexually explicit conduct from one e-mail account to another, via the internet (Count 1).
Shaw also provided a voluntary statement to members of the FBI’s Springfield Child Exploitation Task Force in which he again admitted creating the fake “Josh Shackfer” MySpace page to communicate with underage girls. Shaw also admitted asking these underage girls to send him their pictures, including pictures of their breasts, buttocks and genitalia. He said that the trading of pictures between him and the minor females occurred during sexually oriented chats. Shaw admitted sending several pictures to M.P., and again acknowledged that he knew M.P. was a minor. He said that M.P. sent him between five and seven pictures of her breasts, buttocks, and other “body poses.”
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 Citrus County, Florida, Sheriff’s Department, the Highland, Illinois, Police Department and the Federal Bureau of Investigation's Springfield Child Exploitation Task Force (SCETF). The case is assigned to Assistant United States Attorney Angela Scott.
Canadian Man Sentenced for Consumer FraudRead the Press Release
“Advance Fee” Scheme Stole From Thousands of U.S. Consumers
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Paul Price, 57, of Toronto, Canada, was sentenced on January 16, 2014, in U.S. District Court in East St. Louis, Illinois, to ten years in federal prison for his role in an advanced fee credit card scam that defrauded tens of thousands of U.S. consumers of over $10 million. Mr. Price's ex-wife, Elissa Wells, 50, of Toronto, Canada, who was also involved in the scheme, received a 55 month sentence on October 21, 2013 for her role in the offense. The Prices were originally indicted on May 22, 2008, after the successful conclusion of litigation in Canadian Courts to obtain evidence seized in a search of their business done at the request of the U.S. Attorney for the Southern District of Illinois. The Prices were recently extradited to the United States from Canada after the conclusion of legal proceedings there.
Companies operated by the Prices made “cold” calls to U.S. residents with credit problems representing that their companies could provide Visa or MasterCards to consumers for an advanced fee of several hundred dollars. However, neither defendants nor any of the companies they operated had any business relationship with Visa or MasterCard and were not in any way authorized by either to issue or market credit cards. Consumers received nothing of value for the several hundred dollars that the scan companies took from their bank accounts through electronic debits. The scheme operated from August 1999 until November 2004 when their offices were raided by members of various Canadian law enforcement agencies.
The scam operated by the Prices was one of five major advanced fee credit card schemes prosecuted by the U.S. Attorney's Office for the Southern District of Illinois between 2003 and 2008. The five scams prosecuted by this office represented over 600,000 victims with total losses exceeding $120 million dollars. None of the 600,000 victims received a credit card as a result of the fees they paid these scam companies.
According to a study done at the behest of the Federal Trade Commission in 2004, during the operation of these scams, approximately 4 1/2 million U.S. consumers, about 2.1 percent of the U.S. adult population, had been the victim of an advanced fee credit card or advanced fee loan scam. Based upon complaints received by the Federal Trade Commission, Toronto was the number one source city. Evidence introduced at the trial of one Canadian telemarketer in U.S. District Court in East St. Louis established that a single related scam company in Toronto operated five boiler rooms with 250 telemarketers on the phone simultaneously collecting tens of millions of dollars of advanced fees from U.S. consumers seeking a credit card, yet failing to provide even a single consumer with a single credit card.
Of the five scams that were prosecuted, three were Toronto based, one was based in Utah but utilized boiler rooms in Canada, the Caribbean and India, and the fifth was based in Florida.
Eleven individuals were indicted for mail and wire fraud. Nine pleaded guilty and received federal prison sentences ranging from 4 1/2 years to twenty years. Two went to trial and after being convicted by a jury received sentences of 23 and 29 years respectively. Three defendants were extradited from Canada after a lengthy legal process, two were caught as they entered the U.S. from Canada, four waived extradition from Canada and two were U.S. Citizens arrested in the United States. As a result, the advanced fee credit card scheme appears to have been completely eradicated.
"I could not be happier that this sad and sordid chapter in the annals of consumer fraud has been brought to such a decisive conclusion." said United States Attorney Wigginton. "The lessons these prosecutions should teach is that those who think they can hide behind international borders and scam U.S. residents will ultimately feel the long arm of American justice." Wigginton had high praise for the work of the Federal Trade Commission and the U.S. Postal Inspection Service. "These agencies are the vanguard of consumer protection in the United States. The FTC is an aggressive consumer protection agency that does an outstanding job of identifying and targeting threats to the American consumer. U.S. Postal Inspectors are the nation's preeminent fraud investigators." Wigginton noted.
“Consumers should never pay money in advance to get a credit card or loan,” said C. Steven Baker, Director of the Federal Trade Commission’s Midwest Region. “This scam ripped off over 40,000 people, who lost millions of dollars. The great work done by the Southern District of Illinois shows how enforcers in the United States and Canada can work together through the Toronto Strategic Partnership in fighting cross-border fraud."
This case arose out of the Toronto Strategic Partnership. The Partnership includes the FTC, the U.S. Postal Inspection Service, Competition Bureau Canada, the Toronto Police Service Fraud Squad – Mass Marketing Section, the Ontario Provincial Police Anti-Rackets Section, the Ontario Ministry of Consumer Services, and the Royal Canadian Mounted Police.
Saline County Man Sentenced to 16 Years in Prison for Methamphetamine Related OffenseRead the Press Release
John David Clark, 48, of Harrisburg, Illinois, was sentenced today in United States District Court in Benton to 192 months in federal prison for possessing pseudoephedrine with the intent that it be used to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Clark was charged by a Federal Grand Jury in July 2013 with possessing the pseudoephedrine on June 25, 2013 in Saline County. He pled guilty to that offense on October 11th.
“Methamphetamine is a killer. It kills peoples’ abilities to function and it robs them of their future. Hopefully sentences like these will act to deter not only those who make meth, but those who would distribute such poisons in our communities.” said United States Attorney Wigginton.
Evidence supporting the guilty plea and sentence showed that Clark was involved for over a two year period with several other individuals in the manufacture and distribution of methamphetamine in and around Harrisburg. His possession of pseudoephedrine on that date, a necessary ingredient in the manufacturing process, was in furtherance of that overall scheme.
In addition to the 16 year term of imprisonment, Clark was ordered to pay fines and special assessments to the United States totaling $200, and was placed on a 3 year term of supervised release to follow his incarceration. Under federal law, parole has been abolished meaning that Clark will be required to serve a minimum of 85% of his prison sentence.
Clark has been held without bond in the custody of the United States Marshal since his arrest on the federal charges. He was returned to the Marshal’s custody to await designation to a Federal Bureau of Prisons facility. 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.
Jackson County Man Sentenced for Methamphetamine ConspiracyRead the Press Release
On January 9, 2014, Charles W. Scallion, 41, of Carbondale, Ill., was sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Scallion, who had previously pled guilty to the methamphetamine offense, was sentenced to 151 months in federal prison, to be followed by 6 years of supervised release, and fined $300. The offense occurred between May 2012, and March 28, 2013, in Jackson County. Evidence at the plea and sentencing hearings established that Scallion was involved with others in the manufacture of methamphetamine. During the conspiracy, other individuals supplied Scallion with pseudoephedrine to use to cook methamphetamine. The district court determined that Scallion’s relevant conduct involved more than 165 grams of pseudoephedrine.
The investigation was conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and the Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Greenville Man Pleads Guilty to Child Pornography OffenseRead the Press Release
A Greenville man pled guilty in federal district court on January 16, 2014, to Attempt to Access with Intent to View Visual Depictions of Minors Engaged in Sexually Explicit Conduct, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Terry L. Adcock, 65, Greenville, Illinois, faces a term in federal prison of not more than ten (10) years, a fine up to $250,000, and a term of supervised release of five (5) years to life when he is sentenced. Sentencing is scheduled for May 16, 2014, in East St. Louis, Illinois. Adcock also agreed to forfeit the computers which contained the visual depictions. In addition, upon his release from prison, Adcock must register as a sex offender as a condition of his supervised release. Adcock is being held without bond pending sentencing.
An FBI nationwide investigation revealed IP addresses that accessed a web forum known to contain links to images and/or videos of visual depictions of minors engaged in sexually explicit conduct. The web forum listed a detailed description of the image and/or video file that a user could link to. This investigation revealed that, between October and November, 2011, an IP address assigned to Adcock tried to access the web forum on five (5) separate occasions.
On December 18, 2012, FBI Special Federal Officers spoke with Adcock at his residence about the results of the investigation. Adcock admitted that he had been searching for and viewing images of child pornography on the internet since he bought his first computer approximately twenty years prior, and that he was interested in prepubescent girls between the ages of 10 and 12. He said that, by googling a search term commonly associated with child pornography, he would gain access to thousands of websites that contained child pornography. Adcock gave consent to the officers to search and seize, among other things, a Gateway desktop computer and a Dell Inspiron laptop computer which he used to access and view child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the Federal Bureau of Investigation's Springfield Child Exploitation Task Force (SCETF). The case is assigned to Assistant United States Attorney Angela Scott.
United States Attorney Wigginton Highlights Collections Made by His Office and the Department of Justice on Behalf of the American TaxpayerRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, would like to highlight some of the recent accomplishments in the area of collecting and recovering funds on behalf of the taxpayers.
Making Crime Pay Throughout The United States
During the last fiscal year, the U.S. Department of Justice collected a total of more than $8 billion in civil and criminal actions on behalf of American taxpayers. This represents nearly three times the roughly $2.76 billion of the Department’s direct appropriations that fund its main litigating divisions and all 94 United States Attorney’s Offices. Combined with collections secured during fiscal year 2012, last year’s total means that the Department has attained the highest two-year total in its history – bringing in a noteworthy $21 billion.
Our 2013 collections arose from successful prosecutions of offenses ranging from mortgage fraud schemes, antitrust violations, and banking scams, to federal health violations and environmental offenses; from civil debts collected on behalf of other federal agencies to restitution, criminal fines, and felony assessments – including many secured by U.S. Attorney’s Offices across the country. More than $3 billion of last year’s total related specifically to health care fraud on federal programs like Medicare and Medicaid. In fact, for every dollar we’ve spent to combat health care fraud over the last three years, the Justice Department and its partners have returned an average of nearly eight dollars to the U.S. Treasury, the Medicare Trust Fund, and others.
As Attorney General Eric Holder recently noted, this work is enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. All across the country – from Wall Street to Main Street – the Justice Department’s robust criminal and civil enforcement efforts have yielded an extraordinary return on investment for American taxpayers, in addition to enforcing federal laws and protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse.
Here in the Southern District of Illinois, my colleagues and I in the United States Attorney’s Office have taken significant steps forward in the fight against frauds committed against agencies of the United States. As an example, in January 2013, the Southern District of Illinois recovered $4,250,000.00 as part of the settlement made with American President Lines (APL). In this instance it was alleged that APL billed the United States for, and the United States paid for, various costs associated with the transport and shipment of Army & Air Force Exchange Service and Defense Logistics Agency cargo containers from the United States to military outposts in Afghanistan. In fact, APL’s conduct with respect to certain shipments did not comply with the terms of the contract, making a fraud against the United States.
We can all be proud of these and other results that the Justice Department and its federal, state, and local law enforcement partners have attained. But we cannot yet be satisfied. Particularly in this time of nearly unprecedented budgetary difficulties and increasingly limited funding, it is more important than ever that government leaders continue to serve as sound stewards of precious taxpayer resources.
In the days ahead, as Congress completes its annual appropriations process – and as my colleagues and I plan for 2014 and beyond – I urge Representative Bill Enyart and Representative John Shimkus, and all other Congressional leaders to ensure that the Justice Department will have the resources it needs to build on its recent achievements. By increasing support for the Department’s vital work, we can improve its ability to secure additional collections and return stolen funds to the public coffers. In this way, given adequate funding and resources, my office will make crime pay the taxpayers, not the criminals.
Reference is also made to the Press Release Sent December 20, 2013, highlighting specific collections made by the Office of the United States Attorney for the Southern District of Illinois.
Jackson County Man Charged with Failing to Register as Sex OffenderRead the Press Release
On September 4, 2013, Willie Joe Strayhorn, a/k/a “Jo Jo,” 47, of Murphysboro, was indicted in a one-count indictment charging Failure to Register as a Sex Offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between November 1, 2010, and September 4, 2013, in Jackson County. Strayhorn, who was arrested in Tennessee, made his initial appearance in federal court in Benton, on January 14, 2014. The offense carries a penalty of up to 10 years’ imprisonment, to be followed by a term of supervised release from 5 years to life, and a fine of $250,000. Strayhorn is currently being held without bond pending a March 17, 2014, jury trial.
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 case was investigated by the United States Marshals Service. The U.S. Marshals Service is the nation’s oldest federal law enforcement agency, and serves as the nation’s primary fugitive hunting organization. In addition, the U.S. Marshals have three principal responsibilities under the Adam Walsh Child Protection and Safety Act: (1) to assist state, local, tribal, and territorial authorities in the location and apprehension of non-compliant and fugitive sex offenders; (2) to investigate violations of the Act for federal prosecution; and (3) to assist in the identification and location of sex offenders relocated as a result of a major disaster. The Murphysboro Police Department and the Dyersburg, Tennessee, Police Department also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Belleville Man Sentenced to Federal Prison for Possession of Stolen FirearmRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Joel A. Dozier, 25, of Belleville, Illinois, was sentenced in federal district court in East St. Louis today for the crime of Possession of a Stolen Firearm.
Dozier was sentenced to 28 months in prison, to be followed by 3 years of supervised release, a $100 special assessment, and a fine of $500, following his plea of guilty, on September 9, 2013. The charges relate to an incident that occurred on February 7, 2013, in Belleville, Illinois, when police officers questioned Dozier about a recent robbery. Dozier began to act nervously and eventually admitted to the officers that he had gun in his pocket. The officers retrieved the gun (a DM22, .22 caliber derringer), which the officers determined had been stolen. Dozier admitted that he knew the gun had been stolen.
The case was investigated by members of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Belleville Police Department. The case was prosecuted by Assistant U.S. Attorney Stephen B. Clark.
Former Columbia Resident Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
A former Columbia, Illinois, resident pled guilty on January 10, 2014, to a two-count Indictment charging him, in Count 1, with Receipt of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, in violation of Title 18, United States Code, Section 2252(a)(2); and, in Count 2, with Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, in violation of Title 18, United States Code, Section 2252(a)(4)(B), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Neil E. Purdy, 29, formerly of Columbia, IL, faces a term of imprisonment of not less than five (5) but not more than twenty (20) years, a fine up to $250,000, and a term of supervised release of five (5) years to life on Count 1; and a term of imprisonment of not more than ten (10) years, a fine up to $250,000, and a term of supervised release of five (5) years to life on Count 2. In addition, upon his release from prison, Purdy must register as a sex offender. Sentencing is scheduled for May 16, 2014, in East St. Louis, Illinois. Purdy has been held without bond since his initial appearance on April 26, 2013.
The investigation began on February 7, 2012, when an individual contacted the Columbia Police Department to report that the defendant molested his/her fourteen year old child. He/she also told the Columbia police that he/she saw the defendant “google” the phrase, “where can I find really young porn.” He/she said that, when he/she asked the defendant “how long have you had this little problem,” Purdy responded “about three years.”
On February 16, 2012, Purdy, a member of the Navy Reserve with Top Secret clearance, admitted to Columbia Police Officers that he molested the fourteen year old. When questioned about searching for or possessing child pornography, Purdy admitted that he possessed videos and images of minors engaged in sexually explicit conduct on his laptop computer. Purdy subsequently led the officers to his apartment and allowed them to seize the laptop computer. A forensic review of Purdy’s laptop computer revealed twenty (20) videos and seven (7) images of minors engaged in sexually explicit behavior.
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 Columbia, Illinois, Police Department and the Federal Bureau of Investigation’s Springfield Child Exploitation Task Force (SCETF). The case is assigned to Assistant United States Attorney Angela Scott.
Centreville Woman Sentenced for Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Valerie W. Johnson, 56, of Centreville, Illinois, was sentenced in United States District Court in East St. Louis, Illinois on one count of Health Care Fraud.
Johnson was sentenced to five (5) years’ probation, a special assessment of $100, and ordered to pay restitution in the amount of $7,842.46. Johnson previously pled guilty to submitting false and fraudulent bills in relation to her receipt of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police’s Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian.
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 call 1-800-447-8477.
Another Former Alorton Official Sentenced to Federal PrisonRead the Press Release
A former police officer in Alorton and Fairmont City who also served as a trustee of the Commonfields of Cahokia Public Water District and as the Alorton Director of Public Safety, was sentenced in US District Court on January 9, 2014, to two years in federal prison for wire fraud and tax evasion, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Harry A. Halter, Jr., also known as “Dink,” 53, of Cahokia Ill., pled guilty on September 25, 2013.
Halter was convicted for financial crimes related to a towing business Halter owns. Documents filed in US District Court established that Halter owned and operated Town & Country Towing, located in Alorton, Illinois. In 2009, Halter received a grant of $24,990 in tax increment financing (TIF) towards the construction of a new fence to surround the perimeter of his tow yard. However, Halter’s wire fraud conviction came after he misapplied $19,057.62 of those funds to pay personal expenses – such as credit cards and expenses at Kinkaid Village Marina for personal recreational boating expenses. Prosecutors presented evidence that Halter paid a kickback to former Mayor Randy McCallum after he received that TIF grant.
Halter was convicted of tax evasion for using his business to pay personal expenses, conducting personal and business transactions through the extensive use of cash, paying employees in cash and not reporting their wages to the IRS, by not keeping accurate records of business transactions, and other acts of concealing his true income from the IRS for the purpose of limiting his tax liability. This conduct resulted in Halter avoiding paying at least $128,719 in federal income taxes that he otherwise would have been required to pay. Halter agreed to make full restitution to the IRS and the village of Alorton as a condition of his guilty plea.
The St. Clair County States Attorney and the United States Attorney both investigated and prosecuted Halter for separate crimes. Halter was convicted of official misconduct in state court on April 4, 2013, after compelling a female motorist to perform oral sex to avoid arrest in 2008. Halter made that traffic stop in the early morning hours outside of his jurisdiction after he had been drinking.
Halter’s sentence is the latest in a string of federal prosecutions of Alorton officials. In February, 2011, Police Chief Robert Cummings resigned after pleading guilty to federal tax crimes occurring during his tenure with the Alorton Police Department. Former Mayor Randy McCallum, pled guilty to a four-count Information on February 24, 2012, for Attempted Possession with the Intent to Deliver a Controlled Substance (crack cocaine), Theft or Conversion of Government Property, Attempting to Smuggle Contraband into a Correctional Facility that Houses Inmates Pursuant to an Agreement with the Attorney General, and Making False Statements to Federal Law Enforcement Officers. McCallum received a 43 month prison sentence. On April 27, 2012, former Alorton Chief of Police Michael Baxton was sentenced to prison for one year for stealing evidence while he was the Alorton chief and making subsequent false statements to federal investigators. The Alorton Streets Superintendent, Ronnie Cummings, was sentenced to 41 months imprisonment on July 16, 2012, for being a felon in possession of a firearm, which included carrying a weapon in a city-owned vehicle.
US Attorney Stephen R. Wigginton said, “The Public Corruption Task Force will continue to work to drain the swamp and rid Alorton of any public officials who misuse public office for their own purposes.”
The investigation was conducted through the Metro East Public Corruption Task Force by agents from the Internal Revenue Service / Criminal Investigations and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Steven D. Weinhoeft.
Alton Woman Sentenced for Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Roslyn James, 46, of Alton, Illinois, was sentenced in District Court in East St. Louis, IL on one count of Health Care Fraud.
Roslyn James was sentenced to four (4) month’s confinement in the Bureau of Prisons, four (4) month’s home confinement, three (3) years’ supervised release following her confinement, a special assessment of $100, and ordered to pay restitution in the amount of $50,568.12. Johnson previously pled guilty to submitting false and fraudulent bills in regard to the providing of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. James admitted that she falsely billed the program for services that were supposed to have been provided to her son; however, the person who she claimed as having provided the services lived in the State of California.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police’s Medicaid Fraud Control Bureau. The case was prosecuted by Assistant United States Attorney Ranley R. Killian.
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 call 1-800-447-8477.
White County Man Arrested on Child Exploitation ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on December 28, 2013, Gary Richard Walters, 39, of Norris City, Illinois, was charged by the United States Attorney in a two-count Criminal Complaint, filed in United States District Court, with child exploitation.
Count 1 of the Complaint charged Walters with Production of Child Pornography. Count 1 charged that on or about July 6, 2013, in White County, Walters did knowingly employ, use, persuade, induce, entice, and coerce a minor to engage in sexually explicit conduct for the purpose of producing any visual depiction of such conduct, and the visual depiction was transported or transmitted using any means and facility of interstate.
Count 2 of the Complaint charged Walters with Distribution of Child Pornography. Count 2 charged that on or about July 6, 2013, in White County, Walters did knowingly distribute child pornography that has been shipped or transported in or affecting interstate commerce by any means, including by computer, to-wit: a video file of an adult male performing oral sex on a prepubescent male's penis.
Walters had an initial appearance in United States District Court in Benton, Illinois, on December 30, 2013. The Magistrate Judge ordered that Walters be held in custody pending further proceedings in this matter.
A Criminal Complaint is simply a charge filed against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt.
If convicted of Count 1, Walters faces from 15 to 30 years in prison, up to a $250,000 fine, and up to lifetime supervised release. If convicted of Count 2, Walters faces from 5to 20 years in prison, up to a $250,000 fine, and up to lifetime supervised release.
The investigation in this case was conducted by the Federal Bureau of Investigation. This case is part of Project Safe Childhood, in which the United States Attorney=s Office, in conjunction with federal and state law enforcement authorities, is actively investigating and prosecuting individuals who are involved in the exploitation of children. The case is being prosecuted by Assistant United States Attorney George A. Norwood.
Missouri Man Sentenced for Firearm OffenseRead the Press Release
Jeremi J. Blake, 20, of Jennings, Missouri, was sentenced in federal district court on December 20, 2013, to 15 months in prison, to be followed by three years supervised release, a $100 special assessment, and a $150 fine, for 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.
Facts presented in court revealed that on or about June 20, 2013, Metropolitan Enforcement Group of Southwestern Illinois (MEGSI) officers encountered Blake loitering outside a business in East St. Louis, Illinois, wearing a hoodie sweatshirt on a day the temperature exceeded 90 degrees with high humidity, exhibiting suspicious behavior in an area notorious for gun violence and open air drug sales. When Blake was approached by one of the officers and asked if he was armed, Blake responded, “yeah, I got a gun for protection.” A firearm was removed from Blake’s waistband and secured. Blake has a prior felony conviction in Missouri involving unlawful use of a weapon.
This investigation was conducted by Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI). The case was prosecuted by Special Assistant United States Attorney Neal C. Hong.
Richland County Man Sentenced on Methamphetamine Related ChargesRead the Press Release
A Richland County man was sentenced on December 20, 2013, to federal prison on methamphetamine related charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Ivan D. Smith, 42, of Olney, Illinois, was sentenced to 144 months’ imprisonment, three years’ supervised release following his imprisonment, and was fined $200. Smith had previously pleaded guilty to two counts in a federal indictment. Count 1 charged that from on or about March 2011, until on or about June 11, 2013, in Richland County, Smith conspired to manufacture methamphetamine. Count 2 charged that on June 11, 2013, in Richland County, Smith 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 Richland County Sheriff’s Office.
The case is being handled by Assistant United States Attorney George Norwood.
West Frankfort, Illinois, Man Sentenced on Child Pornography ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Richard Faling, 55, of Buckner, Illinois, was sentenced for accessing child pornography images online. Faling had earlier pled guilty to the charges on August 14, 2013. The Court sentenced Faling to 210 months in prison, a $500 fine, and a lifetime of supervised release following discharge from prison.
The evidence at sentencing established that Faling had previously been convicted in Illinois for sex offenses involving children. After his release from prison for that offense, authorities discovered that Faling had been accessing child pornography from his computer at his Buckner, Illinois residence.
“This case illustrates the need for such sentences.” noted United States Attorney Wigginton. “I will continue to do my utmost to protect the children of Southern Illinois from those who would prey upon them.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 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 prosecuted by Assistant United States Attorney Thomas E. Leggans.
United States Attorney for Southern District of Illinois Announces Civil and Criminal Collections in Excess of $8 Million for Fiscal Year 2013Read the Press Release
“My Office Will Continue to Make Crime Pay for the Taxpayers of Southern Illinois”
United States Attorney Stephen R. Wigginton announced today that the Southern District of Illinois collected $8,312,506.02 in criminal and civil actions in Fiscal Year 2013. Of this amount, $2,081,807.45 was collected in criminal actions and $6,230,698.57 was collected in civil actions. This combined figure is well in excess of the total yearly operating budget for the Office of the United States Attorney for the Southern District of Illinois.
Additionally, the Southern District of Illinois worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $341,763,972.25 in cases pursued jointly with these offices. Of this amount, $1,072.23 was collected in criminal actions and $341,762,900.02 was collected in civil actions.
“I will continue to make crime pay for the taxpayers of Southern Illinois. Not only does my office prosecute large numbers of criminals, it actually pays for itself and makes money for all of Southern Illinois. This is why Congress must not allow sequestration cuts to bluntly thwart not only our criminal prosecutions, but the business of making criminals pay back the taxpayers. As these figures show, allowing us to do our work is a sound investment for the taxpayers.” said United States Attorney Wigginton.
As an example, United States Attorney Wigginton pointed out that in January 2013, the Southern District of Illinois recovered $4,250,000.00 as part of the settlement in the American President Lines (APL) matter. In this instance it was alleged that APL billed the United States for, and the United States paid for, various costs associated with the transport and shipment of Army & Air Force Exchange Service and Defense Logistics Agency cargo containers from the United States to military outposts in Afghanistan, when APL’s conduct with respect to certain shipments did not comply with the terms of the contract.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Southern District of Illinois, working with partner agencies and divisions, collected $689,598.00 in asset forfeiture actions in FY 2013. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
Richland County Woman Sentenced on Methamphetamine Related ChargesRead the Press Release
A Richland County woman was sentenced on December 5, 2013, to federal prison on methamphetamine related charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Carol R. Wille, 32, of Noble IL, was sentenced to 96 months in prison, three years supervised release following her imprisonment, and fined $100. Wille had previously pleaded guilty to a one count federal indictment. Count 1 charged that from January 10, 2010, to on or about June 1, 2012, in Richland and Clay Counties, Wille did knowingly and intentionally possess Pseudoephedrine pills, knowing and having reasonable cause to believe that they 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 Richland County Sheriff’s Office.
The case is being handled by Assistant United States Attorney George Norwood.
Richland County Man Sentenced on Methamphetamine Related ChargesRead the Press Release
A Richland County man was sentenced on December 18, 2013, to federal prison on methamphetamine related charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Timothy L. Garrard, 32, of Olney, Illinois, was sentenced to 180 months in prison, five years supervised release following his imprisonment, and fined $300. Garrard had previously pleaded guilty to three counts in a federal indictment. Count 1 charged that from on or about October 2011, until on or about November 2012, Garrard conspired to manufacture methamphetamine. Count 2 charged that from October 25, 2011, to October 29, 2012, Garrard possessed pseudoephedrine, knowing and having reasonable cause to believe that the pseudoephedrine would be used to manufacture methamphetamine. Count 3 charged that on November 4, 2012, Garrard possessed with the intent to distribute a mixture or substance containing Hydrocodone.
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.
Federal Prison Terms Handed Down to Two Florida Women Involved in Nationwide Timeshare Resale ScamRead the Press Release
Arantazazu Atorrasagasti, 36, and Carmen L. Picache, 33, both of Orlando, Florida, were sentenced to terms of 30 months and 24 months in prison, respectively, for their roles in a nationwide telemarketing scheme that defrauded thousands of people throughout the United States and Canada, including victims in seven counties within the Southern District of Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced. Both women pled guilty in August 2013 to one count of conspiracy to commit mail and wire fraud.
Atorrasagasti and Picache were telemarketers who worked in Orlando for a series of related companies known as “National Solutions.” From 2007 to 2011, the scheme operated under more than a dozen business names, including Bluescape Timeshares International, Country Wide Timeshares, Countrywide Timeshares 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 Advisors, American Timeshares, Exit Week, and Resort Advisors International.
Telemarketers for National Solutions placed cold calls to timeshare owners, falsely representing that they had actual buyers interested in purchasing the victim’s unit. Many victims were told that their closings would occur within a matter of days. To accept the deal, victims were required to pay hefty advanced fees (often as much as several thousand dollars), which would supposedly be refunded at closing. The entire business, however, was a fraud. Despite collecting fees from their victims, the National Solutions companies never succeeded in selling a single timeshare unit and indeed made little effort even to market the properties for sale. Instead, Atorrasagasti, Picache, and their co-conspirators simply pocketed the money.
In July 2011, the Federal Trade Commission initiated a civil action against National Solutions and immediately shut the business down pursuant to a federal court order. Documents and records seized by the FTC were shared with the United States Postal Inspection Service in support of a parallel criminal investigation. All told, over 2,500 timeshare owners across the country were scammed by National Solutions to the tune of more than $6 million.
As part of their sentences, both women were ordered to spend five years on supervised release and to pay over $100,000 in restitution to the identified victims of their crimes. One of the conditions of their supervision is that they will not be allowed to perform any telemarketing work without the express consent of the United States Probation Office.
These prosecutions – two out of several dozen timeshare resale fraud prosecutions brought in the Southern District of Illinois – are the result of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service and the Midwest Regional Office of the Federal Trade Commission. The cases were prosecuted by Assistant United States Attorneys Michael J. Quinley and Nathan D. Stump.
Cairo, Illinois, Man Charged with Disaster Relief FraudRead the Press Release
A federal grand jury in Benton, Illinois, has charged Bernard F. Brown, 48, Cairo, Illinois, with false statements to federal officials and disaster relief fraud offenses, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The indictment charges Brown with four counts of making false statements and one count of disaster relief fraud during 2011 and 2012. The false statement charges carry a potential sentence of up to five years imprisonment, a $250,000 fine, and up to 3 years of supervised release. The disaster relief fraud charge carries a potential sentence of up to 30 years imprisonment, a $250,000 fine and up to 5 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 proved guilty beyond a reasonable doubt to the satisfaction of a jury.
Brown’s trial is set for February 21, 2014, at the U.S. District Court in Benton, Illinois.
The investigation in this case was conducted by the Department of Homeland Security and the case is being prosecuted by Assistant United States Attorney Thomas E. Leggans.
St. Louis Man Sentenced for Possession with Intent to Distribution HeroinRead the Press Release
Royce Spann, 28, of St. Louis, Missouri, was sentenced in federal court on December 16, 2013, to 97 months’ in prison, 5 years’ supervised release after his imprisonment, and a $100 special assessment, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Spann had previously pled guilty to Possession with Intent to Distribute Heroin, on August 6, 2013.
United States Attorney Stephen Wigginton commented that, “I am proud that we were able to get Spann off the streets. Heroin is the most dangerous drug in the world. These severe federal prison sentences should put drug dealers on notice that they peddle heroin at their own risk, and those risks are considerable. The prosecution and sentencing of Royce Spann is part of our ongoing anti-heroin initiative.”
According to public documents filed with the Court, Spann was riding an Amtrak passenger train from Chicago, Illinois, on March 27, 2013 with large amounts of heroin. Drug Enforcement Administration (DEA) agents confronted Spann at the St. Louis, Missouri train station where Spann dropped his bag and ran away on foot. Inside the bag, DEA agents found over $10,000 in cash and over three-quarters of a kilogram of heroin.
The case was investigated by the Drug Enforcement Administration in the Southern District of Illinois and was prosecuted by Special Assistant United States Attorney Jungmin Lee.
East St. Louis Man Pleads Guilty to Firearm OffenseRead the Press Release
On December 13, 2013, Dwayne R. Ramsey, a 33-year old East St. Louis, Illinois, man pled guilty in United States Federal District Court, in East St. Louis, to 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. Ramsey is scheduled for sentencing on March 28, 2014, at which at which time he faces a maximum potential sentence of 10 years’ in prison and a fine of up to $250,000, not more than 3 years’ of supervised release after his prison term, and a mandatory special assessment of $100.
Court proceedings revealed that on July 28, 2013, a St. Clair County deputy observed Ramsey lying unconscious next to a pay phone at Emerson Park Metro Station. Ramsey was believed to be intoxicated, due to his speech pattern and the strong odor coming from his breath. A background check on Ramsey indicated an active warrant. He was placed under arrest and searched, where a firearm was recovered on him. Prior to July 28, 2013, Ramsey had been convicted of a crime that was punishable by a term of imprisonment of more than one year.
This case was investigated the St. Clair County Sheriff’s Department and is being prosecuted by Special Assistant United States Attorney Neal C. Hong.
\East St. Louis Man Sentenced to 57 Months’ Imprisonment for Possession of A Firearm by A Convicted FelonRead the Press Release
An East St. Louis, Illinois, man was sentenced to a prison term in federal district court for possession of a firearm by a convicted felon on December 13, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Stephen Benson, 42, of East St. Louis, Illinois, was sentenced in federal district court in East St. Louis to 57 months’ imprisonment, 3 years’ supervised release, a $100 special assessment, and a fine of $250, following his plea of guilty, on August 18, 2013, to an Indictment charging him with Possession of a Firearm by a Convicted Felon. The charge relates to an incident that occurred on December 12, 2012, in East St. Louis, Illinois, when law enforcement officers, responding to Benson’s residence in reference to an assault, questioned Benson, who admitted having a firearm. Benson was previously convicted of Theft Under $300/Subsequent Offense, on or about September 9, 2010, in St. Clair County, Illinois, Case No. 10-CF-769. The firearm was a Raven, .25 caliber semi-automatic pistol. The sentencing judge also ordered forfeiture of the firearm and the ammunition contained therein.
The case was investigated by members of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney Stephen B. Clark.
Perry County Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
A Perry County, IL, man pled guilty in federal district court to an indictment charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
On December 11, 2013, Ty W. Dusch, 50, of DuQuoin pled guilty to the one-count indictment charging conspiracy to manufacture methamphetamine. The offense occurred between 2011 and June 2013 in Jackson and Perry Counties. Evidence at the plea hearing established that Dusch and others were obtaining pseudoephedrine for the purpose of manufacturing methamphetamine. When officers executed a search warrant at a Murphysboro residence where Dusch was staying, they located methamphetamine and methamphetamine-making materials. Dusch faces a term of imprisonment of up to 20 years, to be followed by 3 years’ supervised release, and a $1,000,000 fine. Dusch is currently being held without bond pending an April 4, 2014, sentencing hearing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and Drug Enforcement Administration. The DuQuoin Police Department also assisted in the investigation.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Union County Man Charged with Methamphetamine ConspiracyRead the Press Release
On December 3, 2013, Jeffry M. Presutti, Jr., 36, of Pomona, was indicted in 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 offense occurred between April 2013 and October 2013, in Jackson County. Presutti is scheduled to make his initial appearance in federal court on December 9, 2013, in Benton. The methamphetamine offense carries a penalty of up to 20 years’ imprisonment, to be followed by 3 years’ supervised release, and a fine of $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, Union County Sheriff’s Office, and Drug Enforcement Administration. The Illinois State Police Methamphetamine Response Team and 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.
Three Southern Illinois Residents Charged with Methamphetamine ConspiracyRead the Press Release
On December 3, 2013, George G. Oliver, 55, of Makanda, Toni J. Johnson, 32, and Sommer C. Koons, 30, both of Murphysboro, were charged by superseding indictment with conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2009 and October 2013, in Union and Jackson Counties. At their bond hearings, Oliver and Johnson were ordered held without bond pending a February 10, 2014, jury trial. The methamphetamine offense carries a penalty of up to 20 years in prison, to be followed by 3 years of supervised release, and a fine of $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Union County Sheriff’s Office, Murphysboro Police Department and Drug Enforcement Administration. The Illinois State Police Methamphetamine Response Team and Union County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Mount Vernon Man Pleads Guilty to Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today, that Donald Ray Keip, 39, of Mount Vernon, Illinois, pled guilty to a one-count indictment charging that he engaged in a scheme to commit health care fraud. Sentencing has been set for April 4, 2014, in United States District Court in Benton, Illinois. Keip will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
During his plea hearing, Keip admitted that he had submitted false and fraudulent bills in relation to his alleged performance of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. Keip admitted to falsely billing the program between June 30, 2012 and January 29, 2013, when he purportedly rendered personal assistant services to an individual, his mother, when he, in fact, did not. As a result, Keip improperly received $24,000.00 in payments for services not performed.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police, Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney William E. Coonan.
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.
East St. Louis Man Sentenced to Prison for Revocation of Supervised Release and for Distribution of HeroinRead the Press Release
An East St. Louis, Illinois, man was sentenced to a prison term in federal district court upon revocation of supervised release and for distribution of heroin on December 6, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Delano Perry, 41, of East St. Louis, Illinois, was sentenced in federal district court in East St. Louis to a total of 33 months in prison, to be followed by 3 years of supervised release, a $100 special assessment, and a fine of $200, following his plea of guilty, on August 1, 2013, to an Indictment charging him with Distribution of Heroin and upon a plea of guilty on December 6, 2013, to violating the terms of his supervised release. The charges relate to an incident that occurred on June 6, 2013, in East St. Louis, Illinois, when Perry sold approximately 24 grams of heroin to a confidential informant who was working in conjunction with agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Perry, who was previously convicted of Distribution of Cocaine Base on July 17, 1998, was released from prison on March 1, 2012, and began serving a term of supervised release. He was on supervised release when he committed the instant crime of Distribution of Heroin. The judge noted that Perry began his term of supervised release successfully, but had fallen back to crime in part to pay the funeral expenses of his 20-year-old son, who was murdered in 2012.
The case was investigated by members of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney Stephen B. Clark.
Mother and Son Sentenced for Heroin Distribution and Operating Fairview Heights “Drug House”Read the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that on December 5, 2013, Deborah A. Perkins and her son, Douglas A. Oliver, were sentenced in United States District Court for Distribution of Heroin and Maintaining Drug- Involved Premises.
Perkins, 66, was sentenced to 27 years in prison. Oliver, 47, received a sentence of 30 years in prison. Both defendants have been incarcerated since their arrest on February 14, 2013.
United States Attorney Stephen R. Wigginton stated, “I am proud that we were able to get these two extremely dangerous drug dealers off the streets for good. Heroin is the most deadly drug in the world. I hope the sentences imposed on Perkins and Oliver today will bring some measure of comfort and closure to the families of Jessica Williams and Jennifer Herling, the two young women who lost their lives. I also hope that other drug dealers in our district will take a long, hard look at the severe penalties imposed on Perkins and Oliver, and decide not to take the same risks.”
Prior to their arrests, Perkins and Oliver resided at a notorious drug house which Perkins owned and operated at 20 Kassing Drive, Fairview Heights, Illinois. Because the house was used between 2004 and 2013 as a drug distribution center, a federal judge ordered the residence forfeited.
On August 1, 2013, Perkins pled guilty to federal charges of Conspiracy to Distribute Heroin, Possession with Intent to Distribute Heroin, and Maintaining a Drug House. Oliver pled guilty to the same charges on August 13, 2013.
Oliver admitted that he had given heroin to both Williams and Herling at 20 Kassing Drive in exchange for sex. Both women overdosed and died. In March 2012, Oliver and Perkins moved Williams body from Fairview Heights to a wooded area in Washington Park, Illinois. Police discovered Williams’ body 16 days after her death. Herling died 6 months later, on September 29, 2012, in the basement of 20 Kassing Drive.
The investigation which resulted in the arrest and conviction of Perkins and Oliver was conducted by the Drug Enforcement Administration, the Fairview Heights, Illinois Police Department, and the St. Clair County Sheriff’s Office.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Man Held Without Bond on Armed Robbery ChargesRead the Press Release
Indictment Charges Armed Robberies of East St. Louis Pawn Shop and Belleville Liquor Store
Timothy R. Collier, 47, has been ordered detained, that is held without bond, by a magistrate judge following a hearing, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Collier was indicted on November 20, 2013, in two counts of Interference with Commerce by Robbery, which is a violation of the Hobbs Act, and two counts of Use of a Firearm During a Crime of Violence, in connection with the armed robbery of East St. Louis Jewelry and Loan that occurred on April 25, 2013, and the armed robbery that occurred at Arena Liquor in Belleville on July 12, 2013.
The offenses charged in the indictment allege that on April 25, 2013, Collier took numerous items of jewelry and a firearm from the presence of the owner of East St. Louis Jewelry and Loan, by means of actual and threatened force, by brandishing and discharging a firearm and shooting the owner of East St. Louis Jewelry and Loan in the chest and head. The indictment also alleges that on July 12, 2013, Collier took United States Currency from the presence of an employee of Arena Liquor, by means of actual and threatened force, by brandishing a firearm.
If convicted of a violation of the Hobbs Act, Collier faces a term in prison of up to 20 years on each count, 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 Use of a Firearm During a Crime of Violence for the armed robbery of the East St. Louis Jewelry and Loan, Collier faces a minimum term in prison of 10 years up to a maximum term of Life, consecutive to, meaning in addition to, any term of imprisonment imposed on the Hobbs Act violations, as well as a fine of up to $250,000 and a term of supervised release of up to 5 years. Additionally, if convicted of a second offense of Use of a Firearm During a Crime of Violence for the armed robbery of Arena Liquor, Collier faces a term in prison of 25 years up to a maximum of Life, consecutive to the term of imprisonment imposed on the counts of conviction.
A trial date is currently set for January 27, 2014.
This case is being investigated by the Illinois State Police, the Federal Bureau of Investigation, the Belleville Police Department, and the East St. Louis Police Department as part of the Metro East Armed Robbery Initiative. The case is assigned to Assistant United States Attorney Ali Summers for prosecution.
Lebanon Man Sentenced for Unlawful Possession of ExplosivesRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Thomas Lee Stanton, 18, of Lebanon, Illinois, was sentenced in United States District Court in East St. Louis to 30 months in prison, to be followed by 3 years of supervised release, a $200 fine, and a $100 special assessment for the charge of unlawfully possessing destructive devices.
“Remember that these devices, despite the name, could maim or kill anyone nearby. Clearly, the Court was sending a message that there is no reason to fool with do-it-yourself explosive devices.” said United States Attorney Wigginton.
Stanton had previously admitted that on April 17, 2013, he possessed destructive devices including four “cricket” bombs, two Molotov cocktails, and other explosive making materials. Evidence at sentencing indicated that Stanton had hoarded and concealed other bomb-making components. Stanton had also made racist writings in his journals and school notes.
The case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Illinois State Police, the St. Clair County Sheriff’s Department, the O’Fallon Police Department, the Lebanon Police Department, the Illinois Secretary of State Police Bomb Squad, the Scott Air Force Base Explosive Ordnance Disposal K-9 Unit, and O’Fallon Township High School Security Officers. The case is being prosecuted by Assistant United States Attorney Liam Coonan.
Former Madison County Treasurer Sentenced for Structuring Property Tax Sales to Reward Campaign ContributorsRead the Press Release
The former treasurer of Madison County, Illinois, was sentenced to thirty months in prison by the U.S. District Court in East St. Louis, Illinois, on December 6, 2013, for violating the Sherman Antitrust Act, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Fred Bathon, 58, had pleaded guilty on February 5, 2013, to a violation of the Sherman Antitrust Act for his role in structuring Madison County property tax sales in a way that increased prices and rewarded campaign contributors. In addition to the thirty month sentence, Bathon was ordered to pay a $20,000 fine and will serve two years supervised release after his sentence of incarceration.
In imposing sentence, the Court noted the impossibility of making the individualized determination of loss as to each victim which is required by law before the Court can impose an order of restitution on a defendant. There were thousands of homeowners who were impacted by the tax auctions and each homeowner's situation was legally unique making calculation of individual losses impossible.
At Illinois tax lien auctions, investors bid to purchase tax lien certificates issued against delinquent tax payers. Investors are supposed to compete to purchase these tax liens by bidding on the interest rate the property owner will be required to pay prior to redeeming the tax lien attached to the owner's property. The bid opens at no more than the statutory maximum of 18% and through a competitive bidding process can be driven as low as 0 percent. The bidder offering the least penalty percentage rate, i.e., the bidder who is willing to allow the owner to redeem his property for the smallest penalty, is allowed to purchase the tax lien. As such, competitive bidding benefits financially distressed homeowners by reducing the amount of money that they have to pay to save their home from foreclosure; however, that same system reduces the profit made by tax buyers. Tax buyers prefer to receive high interest rates, which corresponds to higher profits.
For the tax sales conducted in 2005-2008, Fred Bathon structured the tax sales in a way that eliminated competitive bidding and allowed the tax buyers to engage in price fixing by only bidding the statutory maximum interest rate of 18%. In addition to awarding properties at non-competitive interest rates, Bathon also utilized a seating chart to ensure that his largest campaign contributors were recognized by the auctioneer as the winning bidder.
By 2007 and 2008, the bid rigging and price fixing was so pervasive that distressed homeowners were charged the statutory maximum interest rate on nearly every property tax lien sold. During the tax auction occurring November 14-15, 2007, 2,549 out of 2,574 property tax liens were awarded to bidders for the statutory maximum interest rate of 18%, which represented 99.03% of the property tax liens auctioned. During the tax auction occurring November 13-14, 2008, 2,290 out of 2,364 property tax liens were awarded to bidders for the statutory maximum interest rate of 18%, which represented 96.86% of the property tax liens auctioned.
Under Illinois law, Bathon will also forfeit his entire public pension as a result of his conviction. The Illinois Pension Code provides that “[n]one of the benefits herein provided for shall be paid to any person who is convicted of any felony relating to or arising out of or in connection with his or her service as a member.” This provision of Illinois law is oftentimes referred to as the “Ryan Rule,” following the Illinois Supreme Court’s decision in Ryan v. Bd. of Trustees of Gen. Assembly Ret. Sys., 236 Ill. 2d 315, 924 N.E.2d 970 (2010), which determined former Governor George Ryan forfeited all of his public pension benefits following his conviction on federal corruption charges. The state pension forfeiture provision reaches all public pension benefits, including those earned while serving in public positions with no connection or nexus to the federal conviction.
The investigation was conducted through the Metro East Public Corruption Task Force by agents from the Internal Revenue Service, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Steven D. Weinhoeft and Norman R. Smith.
Three Jasper County Residents Indicted on Methamphetamine Related ChargesRead the Press Release
David C. Halterman, 44, Ashley M. Attaway, 28, and Rebecca A. Moore, 36, all of Yale, IL, were indicted on December 3, 2013, on methamphetamine related charges in a three 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 charged that from April 2013, until on or about October 12, 2013, in Jasper County, within the Southern District of Illinois, the State of Indiana, and elsewhere, Halterman, Attaway, and Moore did knowingly combine, conspire, and agree with others known and unknown to the Grand Jury, to knowingly and intentionally distribute methamphetamine. The amount involved in the conspiracy was 500 grams or more of methamphetamine.
Count 2 charged that on October 11-12, 2013, in Jasper County, Halterman did knowingly and intentionally possess with the intent to distribute methamphetamine. The total amount of methamphetamine involved was 50 grams or more.
Count 3 charged that from April 2013, until on or about October 12, 2013, in Jasper County, Moore did knowingly maintain a place, namely a residence located [in] Yale, Illinois, for the purpose of using and distributing a mixture and substance containing methamphetamine.
With respect to Count 1, all three persons face penalties of 10 years to life in prison, up to a $10,000,000 fine, and at least 5 years supervised release to follow incarceration.
With respect to Count 2, Halterman faces penalties of 5-40 years in prison, up to a $5,000,000 fine, and at least 4 years supervised release to follow his incarceration.
With respect to Count 3, Moore faces penalties of up to 20 years in prison, up to a $500,000 fine, and up to 4 years supervised release to follow his incarceration.
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 Jasper County Sheriff’s Department, the Crawford County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, and Firearms. The Jasper County State’s Attorney’s Office has assisted in the investigation in this case.
The case is being handled by Assistant United States Attorney George Norwood.
Washington Park Former Street Superintendent Pleads Guilty to Forging Village CheckRead the Press Release
Douglas T. Knowles, 37, of Washington Park, Il., entered a plea of guilty to a one-count Indictment that charged possessing and uttering a forged check of the Village of Washington Park, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Sentencing is scheduled for March 21, 2014.
In December 2012 Knowles, who is a public works/street superintendent for the Village of Washington Park, purchased and picked up a gas range from Gil Klein TV & Appliance, Inc., a/k/a Klein’s Brand Source, in Fairview Heights. Knowles presented a Village of Washington Park check purported to be signed by the Mayor of Washington Park for payment. It was later learned that Knowles forged the endorsement of the Mayor and used the gas range for his private residence.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
East St. Louis Post Office Supervisor Indicted for Stealing PackagesRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Jane Johanna Emily, a/k/a Jane Moeller, 41, of St. Louis, Missouri, was arraigned on November 26, 2013, at the East St. Louis federal courthouse on three charges that she stole packages from the U.S. Mail.
The indictment alleges that in March and April 2013, Emily, who was working as a supervisor in the East St. Louis Post Office, opened and stole mail packages.
The federal grand jury indictment charges Emily with Obstruction of Mail in violation of Title 18, United States Code, Section 1702; Theft of U.S. Mail by a Postal Employee in violation of Title 18, United States Code, Section 1709; and Opening of Mail in violation of Title 18, United States Code, Section 1703(a). Each charge carries a maximum penalty of 5 years in prison, a $250,000 fine, and up to 3 years of supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
The case was investigated by agents of the U.S. Postal Service, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
East St. Louis Man Indicted for Armed Robbery of Ferguson T.V. and Satellite ShopRead the Press Release
Case Is Part of United States Attorney’s Armed Robbery Initiative
An East St. Louis, Illinois, man was indicted on November 20, 2013, by a federal grand jury in East St. Louis, for the armed robbery of the Ferguson Television and Satellite shop located in Caseyville, Illinois, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. This case, and others like it, are all part of the Metro East Armed Robbery Initiative announced a few months ago by United States Attorney Wigginton.
Phillip T. Smith, 28, was charged in Count 1 of the Indictment with “Hobbs Act Robbery,” which makes it a crime to obstruct, delay, or affect interstate commerce by robbery, or to commit an act of violence against a person in furtherance of such a robbery. “Robbery” is defined in the statute as the “unlawful taking or obtaining of personal property from the person . . . of another, against his will, by means of actual or threatened force or violence, or fear of injury, immediate or future, to his person . . . .” Additionally, Smith was charged in Count 2 of the Indictment with possessing, brandishing, and discharging a firearm in furtherance of a federal crime of violence – that is, the robbery charged in Count 1. Finally, Smith was charged in Count 3 of the Indictment with possession of ammunition by a felon.
The Indictment states that Smith, “while in the Ferguson Television and Satellite shop -- a business engaged in interstate commerce -- pointed a handgun at J.F., the owner of said shop, demanded money from her, and by means of a firearm, shot her as she delivered United States currency to him in response to his demand.”
An Indictment is merely a statement of the charges. A defendant is presumed innocent of the charges until proven guilty beyond a reasonable doubt.
The maximum penalties that can be imposed for the robbery count are up to twenty years in prison, or a $250,000 fine, or both, three years of supervised release, and a $100 special assessment. The charge of possessing, brandishing, and discharging a firearm charge in furtherance of a federal crime of violence carries an additional minimum ten years in prison, which must run consecutively to any other sentence that the court may impose. The court may also impose a maximum fine on the firearms count of $250,000, and a special assessment of $100. The maximum penalties that can be imposed for the charge of possession of ammunition by a felon are ten years in prison or a $250,000 fine, or both, and three years of supervised release, as well as a $100 special assessment.
Smith is in custody following an investigation by the Caseyville Police Department and the Federal Bureau of Investigation.
The case is being prosecuted by United States Attorney Stephen R. Wigginton and Assistant U.S. Attorney Stephen B. Clark.
“Biggest Fraud I’ve Ever Seen” Lands Mt. Carmel Accountant in Federal Prison for Ten YearsRead the Press Release
A Mt. Carmel, Ill. tax accountant began serving a10 year sentence in federal prison, on November 21, 2013, Stephen R. Wigginton, announced today. Kevin C. Williams, 53, was sentenced on November 15, 2013, to 120 months (10 years) in prison, to be followed by 3 years of supervised release, and nearly two million dollars in restitution. The sentencing judge ordered Williams to surrender today to begin serving his sentence.
Williams pled guilty on June 5, 2013. In pleading guilty, Williams admitted to having misused his trusted relationship with an elderly Mt. Carmel resident that enabled him to exert influence over the investment and distribution of her income. Williams admitted that he engaged in a lengthy scheme to defraud the victim, by stealing her money while she was alive and forging will and trust documents so that he would stand to inherit more of her money upon her demise.
Testimony at the sentencing hearing established that Williams defrauded a 96-year old victim of nearly $2 million dollars through a series of 476 identified financial transactions over the course of more than 20 years. The sentencing hearing included testimony from an IRS agent who explained how the victim reacted after learning that her once-trusted confidant was actually a con-man. The agent described that the elderly lady sobbed, trembled and said that she wished that she could just die. In a later interview, the victim described Williams’ crime as “the biggest fraud I’ve ever seen, and it happened to me.”
Williams admitted orchestrating the fraud scheme where he transferred the victim’s funds into his personal checking accounts, his personal savings accounts, his business accounts, and to pay his mortgage. Williams provided the victim with phony account statements so that she would believe that her money was safely invested when in truth much of her money had been stolen.
Williams committed money laundering by engaging in a series of financial transactions designed to deceive the victim into believing that she was receiving interest payments from investments when no such investments really existed. Williams misappropriated the victim’s money to buy cashier’s checks, but then later misrepresented those cashier’s checks to be the proceeds of her investments, when in truth and in fact no such investments existed.
According to the terms of the plea, in addition to being ordered to repay the victim $1,719,444, Williams also agreed to pay restitution to the IRS in the amount of $106,438, to a former employer for embezzling $38,547 and to the State of Illinois for fraudulently claiming $16,174 in unemployment benefits.
The investigation was conducted by agents from the Internal Revenue Service / Criminal Investigations, The Illinois Secretary of State Division of Securities, and the US Department of Labor Office of Inspector General. The case was prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Wood River Man Sentenced to 10 Years in Prison for Distribution and Possession of Child PornographyRead the Press Release
Charlie M. Jarrett, 71, of Wood River, Illinois, was sentenced on November 20, 2013, in the United States District Court to 10 years in prison for Distribution and Possession of Child Pornography, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Jarrett was also ordered to pay $10,000 in restitution to the victims of his offenses, a $200 special assessment, and a fine in the amount of $17,500. Following his prison sentence, Jarrett will be on federal supervised release for life and will also be required to register as a sex offender for the remainder of his life.
Court documents establish that in February 2012, during an undercover Internet investigation, agents from the Federal Bureau of Investigation determined that Jarrett was distributing child pornography using a peer-to-peer file sharing network. Agents obtained and executed a search warrant for Jarrett’s residence during which they seized Jarrett’s computer, 25 CD and DVD’s as well as a binder which contained over 200 images of child pornography. Jarrett was interviewed and admitted that he had been downloading child pornography from the internet for approximately 8 years and that he had distributed the images and videos containing child pornography to other individuals. During a forensic examination of Jarrett’s computer, agents recovered 2638 image files and 60 videos containing child pornography.
In pronouncing the sentence, the United States District Judge took note of the shocking content of the images distributed by Jarrett. “The Court just simply cannot get past the images that have been passed around between men,” he remarked. “This is a serious crime. And I hope that in this case that the word gets out . . . because we want them to pause. We want them to stop. And maybe just think that what I’m doing here even though it is at some level gratifying to me can cause me a lot of pain.” Were it not for Jarrett’s advanced age, the Judge noted that Jarrett would have been sentenced to more prison time.
“People need to know that there are men out there, like Mr. Jarrett and many others whom we have prosecuted, who join on-line worldwide secret networks to view, distribute and exchange some of the most shocking and sickening videos and photographs of children, toddlers and infants being raped. In this case our investigation found images and videos of adult males sexually penetrating infants and toddlers as well as toddlers forced to perform sexual acts on adults. Some of the images and videos included bondage and sadistic attacks on children.” said United States Attorney Wigginton. “The general public needs to know that more often than not the phrase ‘child pornography’ really means ‘child rape caught on tape.’ There are groups of adults who are interested in infant pornography, there are other groups of adults interested in toddler pornography, and there are many who are interested in prepubescent pornography. Terms like shocking, appalling, and sickening simply do not accurately describe what we see in these horrific cases.”
This case is 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 investigation was conducted by the Federal Bureau of Investigation’s Metro East Cyber Crimes and Analysis Task Force. The case was prosecuted by Assistant United States Attorney Ali Summers.
Violent Felon Sentenced to 96-Months for Illegally Possessing A Firearm AgainRead the Press Release
Jeremy Crawford, a 32-year old Venice, Illinois resident, was sentenced today in United States District Court to 96-months in federal prison for illegally possessing a firearm, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
According to court documents, on September 19, 2012, officers with the Venice, Illinois, Police Department noticed that the driver of a black Chevy Silverado, later identified as Jeremy Crawford, was not wearing his seat belt. The officers got behind the truck and attempted to affect a traffic stop. Crawford would not pull over, and when he did, he tried to take off again. A third Venice PD officer arrived at the scene and parked Crawford in, preventing his vehicle from leaving. One officer opened the car door and instructed Crawford to get on the ground. Crawford refused, so he was forced out of the car and onto the ground, where he was handcuffed. The officers then placed Crawford in the back of the patrol car. Another officer checked the Chevy Silverado visually for other passengers and noticed a silver 9mm pistol under the driver’s seat. The officer observed that the gun was loaded with one in the chamber. While waiting in the patrol car, Crawford rolled down the rear passenger window of the patrol unit, climbed out of the window, and attempted to flee. The officers noticed Crawford’s actions and ran over to him. Crawford began kicking the officers. He was returned to the patrol car and arrested on an outstanding warrant.
Noting that Crawford’s criminal actions have “contributed to the atmosphere of fear” experienced in this district and that Crawford is a “danger to law enforcement,” the federal judge imposed a sentence above the recommended range of 57 to 71 months imprisonment. There is no parole in the federal prison system. In addition to the prison sentence, Crawford must also serve 3 years of supervised release and pay a $750 fine. United States Attorney Wigginton noted, “My office remains committed to prosecuting the district’s most violent criminals, especially those who illegally arm themselves with firearms and use them. As the Court recognized, Jeremy Crawford is an exceptionally dangerous and violent man. He’s a danger not just to the community, but also to law enforcement. A sentence like this sends a strong, clear message: stop the violence or pay the price.”
The Venice Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case. Assistant United States Attorney Monica A. Stump prosecuted the offense.
Prison Camp Inmate Sentenced to an Additional 5 Years in Prison for EscapeRead the Press Release
David J. Pederson, 55, formerly an inmate at the Federal Prison Camp at Marion, Illinois, was sentenced today in United States District Court in Benton to a term of 60 months in prison for escaping from custody while on an unescorted transfer via bus between that facility and one in Council Bluffs, Iowa, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Pederson previously pled guilty to the escape charge on July 11th. At the time of the escape on March 26, 2013, Pederson was serving the final few months of a 71 month federal sentence for bank robbery imposed in the Southern District of Iowa.
Evidence supporting the guilty plea and sentence showed that Pederson left his authorized transfer route while at the Greyhound bus station in Mt. Vernon, Illinois, and obtained a realistic looking air pistol from a retail store. Using the air pistol, he car-jacked two separate vehicles, taking a total of four individuals hostage including two women and two children. The first car-jacking victim was able to escape even though Pederson had bound her hands. He was later arrested with the three hostages from the second car-jacking, a mother and her two children, in Nashville, Illinois. On May 7, 2013, Pederson pled guilty in Jefferson County Circuit Court to charges relating to the car-jackings and was sentenced to a 20 year term of imprisonment in the Illinois Department of Corrections.
The 60 month federal sentence was imposed consecutively to the 20 year state sentence and any portion of his previous 71 month federal sentence which the Federal Bureau of Prisons determines is left to be served. Pederson was also ordered to pay a $100 special assessment and placed on a 3 year term of supervised release to follow his incarceration.
Following sentencing, Pederson was returned to the custody of the Illinois Department of Corrections to first serve out his 20 year state sentence.
The case was investigated by the United States Marshal’s Service and the Mt. Vernon Police Department.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Hamilton County Man Pleads Guilty to Unlawfully Possessing FirearmRead the Press Release
Sonny D. Southall, 29, of McLeansboro, Illinois, pled guilty today in United States District Court in Benton to an indictment charging him with being a felon in possession of a firearm, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on July 9th, alleged that Southall possessed a loaded 9 mm semi-automatic pistol in White County on June 2, 2013. Prior to that date, Southall had been convicted of two felony offenses, making it illegal under federal law for him to possess firearms or ammunition. The firearm Southall possessed was stolen.
Sentencing was set for March 20, 2014, at 10:00 a.m. at the United States District Courthouse in Benton. At that time, Southall faces up to 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release to follow his incarceration.
Southall has been held without bond in the custody of the United States Marshal since his arrest on the federal charges in July. He was again remanded to the Marshal’s custody to await sentencing.
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 Bureau of Alcohol, Tobacco, and Firearms.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.