Southern District of Illinois
Press releases recorded for this federal judicial district.
Fairview Heights Man Pleads to Firearm OffenseRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Quinten M. Allen, 24, of Fairview Heights, pled guilty in the federal district court in East St. Louis on November 19, 2013, to the charge of being a previously convicted felon in possession of a firearm.
Court proceedings show that on February 5, 2013, in East St. Louis, Allen knowingly possessed a firearm - one SCCY, model CPX-1, 9 mm. caliber, semi-automatic pistol with ten (10) rounds of 9 mm. caliber ammunition. Previously on July 26, 2012, Allen was convicted of the felony offense of Unlawful Possession of a Controlled Substance in the Circuit Court of the Twentieth Judicial Circuit in St. Clair County, Illinois.
Allen is scheduled for sentencing on April 7, 2014 and faces maximum penalties of 10 years in prison, a $250,000 fine, and up to 3 years of supervised release.
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The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
Swansea Man Pleads to Stealing Funds from Railroad Retirement BoardRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Mark A. Lewis, 30, of Swansea, pled guilty in the federal district court in East St. Louis to the charge that he stole unemployment benefits from the United States Railroad Retirement Board.
Court proceedings revealed that from January 2013 through May 2013, Lewis fraudulently obtained monies belonging to the Railroad Retirement Board, an agency of the United States, by concealing his employment status in order to receive unemployment benefits.
Lewis is scheduled for sentencing on March 20, 2014, when he faces maximum penalties of 10 years in prison, a $250,000 fine, and up to 3 years of supervised release.
The case was investigated by agents of the Railroad Retirement Board, Office of Investigations. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
If you suspect or know of an individual or company that is committing fraud against any U.S. Railroad Retirement Board program, you may report this to the U.S. Railroad Retirement Board’s Office of Inspector General by calling 800.772.4258 or by e-mailing a complaint or information to: [email protected].
St. Louis Man Pleads Guilty to Bank RobberyRead the Press Release
Was Wearing Polka Dot Dress and Wig During Robbery
On November 19, 2013, Arnell L. Edwards, a fifty-year old St. Louis, Missouri, man pled guilty in federal district court, in East St. Louis, to bank robbery, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Edwards is scheduled for sentencing on April 7, 2014, at which time he faces a potential sentence of 20 years in prison and a fine of up to $250,000, not more than 5 years of supervised release after his prison term, a mandatory special assessment of $100 and restitution.
Court proceedings revealed that on September 6, 2013, Edwards entered the US Bank in New Athens, Illinois wearing a polka dot dress, wig and sunglasses. He then placed a rag over his mouth, approached a bank teller showing her a hand written note on a small piece of red paper, reading, “STICK UP ALL MONEY,” and stated, “Give me all the money.” The frightened teller removed money from her drawer and placed it on the counter. Edwards picked up the cash and exited the bank. As he ran away, he removed and discarded clothing in a bush and shed near a wooded area, before entering an apartment nearby. Officers used a PA system to contact Edwards, who emerged from his apartment shortly thereafter. A search of the apartment resulted in the discovery of a pad of red Post-It-Notes. The pad found in his apartment matched in size, shape and color the note given to the bank teller.
This case was investigated by the Federal Bureau of Investigation and is assigned to Assistant United States Attorney Daniel T. Kapsak for prosecution.
Man Charged with Armed Robberies in Belleville and East St. LouisRead the Press Release
Cases Are Part of United States Attorney’s Initiative Against Armed Robberies
A federal grand jury sitting in East St. Louis has indicted Timothy R. Collier, 47, with 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, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois announced today.
The offenses 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 term of life in prison, again, consecutive, that is, in addition to the term of imprisonment imposed on the counts of conviction.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case 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.
Florida Woman Sentenced to 14 Years in Federal Prison After Illinois Jury Finds Her Guilty of Telemarketing FraudRead the Press Release
Kathryn G. Garten, 52, of Orlando, Florida, was sentenced on November 19, 2013, in United States District Court, to 14 years in federal prison for her role 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. A jury in the Southern District of Illinois convicted Garten of conspiracy to commit mail and wire fraud in August 2013. She was remanded to federal custody immediately after the verdict was announced and appeared for her sentencing in a prison uniform.
“Ms. Garten came to her trial driving a new, expensive, luxury automobile. She left after her trial in chains. Yesterday she appeared in an orange prison uniform and left for her sentence in a Marshal’s van.” observed United States Attorney Wigginton. “The lesson is simple – do not try to defraud innocent victims in order to line your pockets. Scammers beware - my office, the Federal Trade Commission, and the United States Postal Inspection Service will not tolerate fraud on our citizens.”
Garten was a telemarketer 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. Instead, Garten and her co-conspirators simply pocketed the advanced fees.
Garten’s 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. 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.
In pronouncing the sentence, the United States District Judge rejected the contention that Garten was merely a minor participant in a larger scheme: “This was a very serious crime,” he remarked, “and she was a big part of it. She’s richly deserving of punishment, and she’s going to get it.” he said. Were it not for her age, he offered, the sentenced would have been higher, noting that the 168-month sentence fell at the very bottom of the range recommended by the United States Sentencing Guidelines.
As part of her sentence, Garten was also ordered to pay $909,278.00 in restitution to the identifiable victims of the crime. When she completes her prison sentence, she will remain on supervised release for five years.
This prosecution, one of many in the Southern District of Illinois, follows an investigation by the Midwest Region Office of the Federal trade Commission and the St. Louis Field Office of the Chicago Division of the United States Postal Service. The case was prosecuted by Assistant United States Attorney Nathan Stump and Special Assistant United States Attorney Theresa Dawson.
Baldwin Man Pleads Guilty to Child Pornography OffensesRead the Press Release
A Baldwin man pled guilty on November 20, 2013, to a three-count Indictment charging him, in Count 1, with Receipt of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, in Count 2, with Access with Intent to View Visual Depictions of Minors Engaged in Sexually Explicit Conduct, and, in Count 3, 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.
Michael A. Nieweglowski, Jr., a/k/a “Tony,” 47, of Baldwin, Illinois, is subject to enhanced penalties due to a 2000 conviction for Predatory Criminal Sexual Assault in Randolph County. On Count 1 of the Indictment, Nieweglowski faces a term of imprisonment of not less than fifteen (15) but not more than forty (40) years, a fine up to $250,000, and a term of supervised release of five (5) years to life. On Counts 2 and 3 of the Indictment, Nieweglowski faces a term of imprisonment of not less than ten (10) 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. Nieweglowski will also have to register as a sex offender when he is released from prison. Sentencing is scheduled for March 21, 2014, in East St. Louis, Illinois.
The investigation began on January 14, 2011, when the defendant, who had been on mandatory supervised release for the Predatory Criminal Sexual Assault conviction since at least September 10, 2010, was turned over to his parole officer after suspected child pornography was found on a printer in Nieweglowski’s parents’ home on December 30, 2011. On January 15, 2011, a Special Federal Officer with the Federal Bureau of Investigation’s Springfield Child Exploitation Task Force seized numerous media devices from Nieweglowski’s camper trailer which was parked next to his parents’ home, including a laptop computer that Nieweglowski could access in his parents’ home and a PNY thumb drive.
A forensic review of the laptop revealed approximately 79 visual depictions of minors engaged in sexually explicit conduct that had been downloaded via the internet. The PNY thumb drive was found to contain approximately 80 visual depictions of minors engaged in sexually explicit conduct that had been transferred to the thumb drive from the laptop computer. Several of the visual depictions contained images of prepubescent minors engaged in sexually explicit conduct as well as images of minors that depicted sadistic 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 Illinois Department of Corrections and the Federal Bureau of Investigation=s Springfield Child Exploitation Task Force (SCETF). The case is assigned to Assistant United States Attorney Angela Scott.
Fairfield Man Pleads Guilty to Possessing Stolen FirearmsRead the Press Release
Chance W. Young, 29, of Fairfield, Illinois, pled guilty today in United States District Court in Benton to an indictment charging him with knowingly possessing stolen firearms, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on September 4th, alleged that Young possessed the firearms between June 30th and July 1st of this year. Young possessed a total of 4 stolen firearms which had been taken during a burglary of a Wayne County residence between those dates. Thus far, only two of the firearms have been recovered.
Sentencing was set for February 28, 2014, at 10:00 a.m. at the United States District Courthouse in Benton. At that time, Young faces up to 10 years in prison, a $250,000 fine, and 3 years of supervised release to follow his incarceration.
Young has been held without bond in the custody of the United States Marshal since his arrest on the federal charges in September. 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 Wayne 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.
Co-Defendant of Bridgeport Mayor Sentenced for Lying to the Federal Bureau of InvestigationRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that on November 15, 2013, Paul R. Kramer, 63, of Vincennes, Indiana, was sentenced to two years of probation, with six months of home confinement and was ordered to pay fines and special assessments of $700.00, after pleading guilty to two counts of making false statements to the Federal Bureau of Investigation (FBI).
On November 6, 2012 Kramer, was indicted along with Max R. Schauf, the former Mayor of Bridgeport, Illinois. Schauf was charged with three counts of mail fraud and one count of obstruction, Kramer was charged with the two counts of making false statements. At his plea, on March 20, 2013, Kramer admitted that he had lied to FBI agents on two separate occasions when federal authorities were conducting a financial fraud investigation regarding the former mayor.
Kramer’s co-defendant, Max R. Schauf, was sentenced on October 17, 2013, to eighteen months in prison and ordered to pay fines and restitution totaling $59,000.
The case was investigated by agents of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian and William E. Coonan.
Alorton Man Pleads Guilty to “Crack” Cocaine DistributionRead the Press Release
On November 14, 2013, Dione J. Joyce, a thirty-one year old Alorton, Illinois, man pled guilty in federal district court, in East St. Louis, to distribution of cocaine base, in the form commonly known as “crack” cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Joyce is scheduled for sentencing on March 7, 2014, at which time he faces a maximum sentence of 20 years in prison and a fine of up to $1,000,000, not more than 3 years of supervised release after his prison term, and a mandatory special assessment of $100.
Facts presented in court revealed that Joyce sold over 100 grams total of cocaine base in the form of “crack” on April 26, 2013, May 1, 2013, and May 22, 2013, to a confidential informant in East St. Louis, Illinois, at the direction and arrangement of ATF agents.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Washington Park Man Sentenced for Firearm OffenseRead the Press Release
Terrell A. Rey, 28, of Washington Park, Illinois, was sentenced in federal district court on November 8, 2013, to 30 months in prison, to be followed by three years supervised release, a $100 special assessment, and a $250 fine, for unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Facts presented in court revealed that On October 28, 2012, police officers responded to Rey’s home. The officers announced themselves and encountered Rey just inside the front door of the residence, at which point they observed a firearm in his back pants pocket. Rey was taken into police custody, interviewed and read his Miranda rights. He admitted to possessing a firearm, knowing he was a previously convicted felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Washington Park Police Department. Special Assistant United States Attorney Neal C. Hong prosecuted the case.
St. Louis Man Sentenced on Cocaine OffenseRead the Press Release
Michael J.W. Bryant, 41, of St. Louis, Missouri, was sentenced to 30 months in prison on November 8, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Bryant pled guilty on August 1, 2013, to Unlawful Possession with the Intent to Distribute Cocaine. Bryant had been indicted on June 18, 2013, by a federal grand jury sitting in East St. Louis.
In addition to the term of imprisonment, Bryant was ordered to pay a $300 fine and a $100 Special Assessment. He was also ordered to serve three years of supervised release following service of his term of imprisonment.
Evidence for this indictment was gathered during an investigation conducted by the Drug Enforcement Administration (DEA) and the Illinois State Police. This case was assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Former Washington Park Trustee and St. Clair County Probation Officer Pleads Guilty to Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on November 8, 2013, Darron A. Suggs, 39, of Washington Park, 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 March 14, 2014, in United States District Court in East St. Louis, Illinois. At that time, Suggs 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, Suggs 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. Suggs admitted to falsely billing the program between June 30, 2006 and April 16, 2013, when he purportedly rendered personal assistant services to two individuals when he, in fact, did not. Many times Suggs would just contact them by telephone. As a result, Suggs improperly received $64,867.00 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.
Foreign National Sentenced for Role in Large Cocaine ConspiracyRead the Press Release
Victor Manuel Diaz-Lucas, also known as “Victor Raul Cruz-Gutierres,” 31, a citizen of Mexico who most recently resided in Berkeley, MO, was sentenced to 188 months in prison, to be followed by five years of supervised release, on November 8, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Diaz-Lucas was also ordered to pay a special assessment of $100 and to forfeit $1,500,000 to the United States. In addition, the Court entered a Judicial Order of Removal, which will require that Diaz-Lucas be deported from the United States after his term of imprisonment.
Diaz-Lucas had previously entered a plea of guilty on July 25, 2013, to Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine. Diaz-Lucas was charged on August 22, 2012, in an eleven-count indictment charging a total of ten individuals with being members of a large drug trafficking organization. Diaz-Lucas, was only charged in Count 1.
According to the Stipulation of Facts which was filed with the Court at the time of the Diaz-Lucas’ plea, the organization charged in the Indictment was responsible for importing cocaine from Mexico into the United States, where it was taken to Salt Lake City, Utah. From Salt Lake City, the cocaine was transported by members of the conspiracy to the St. Louis Metropolitan area where it was distributed by various members of the organization, including some who operated within the Southern District of Illinois. Proceeds for the sales of the cocaine were then transported back to the leaders of the conspiracy in Salt Lake City.
Of the nine individuals named in the indictment with Diaz-Lucas, six others have entered pleas of guilty; two others have been arrested and are awaiting trial; one is a fugitive. Four other members of the conspiracy have been charged in separate indictments. The co-defendants not yet convicted are presumed innocent because 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.
Evidence in support of the indictment in this case was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), U.S. Marshal Service, the Granite City Police Department, Fairview Heights Police Department, the Collinsville Police Department, the St. Louis Metropolitan Police Department, the St. Louis County (Missouri) Police Department, the St. Charles County (Missouri) Sheriff's Department, and the Nebraska State Patrol. This case is assigned to Assistant United States Attorney Randy G. Massey for prosecution.
East St. Louis Man Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
On November 6, 2013, Jason C. Bryant, a thirty-one year old East St. Louis, Illinois, man pled guilty in federal district court, in East St. Louis, to failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Bryant is scheduled for sentencing on February 28, 2014. He faces a term of imprisonment of up to ten (10) years, a fine up to $250,000, or both, and a term of supervised release of five (5) years to life of supervised release, and a mandatory special assessment of $100.
On May 2, 2011, Bryant was released from prison in the State of Indiana following his conviction there for cocaine distribution. Upon his release, he immediately moved to Illinois without registering as a sex offender in the state. Bryant was required to register as a sex offender in Illinois within three days of his move from Indiana to Illinois. The registration was due to his Criminal Sexual Assault conviction on March 24, 2000, in St. Clair County, Illinois.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices, 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.
The case was investigated by the United States Marshals Service and is assigned to Assistant United States Attorney Daniel T Kapsak.
Richland County Man Sentenced to 28 Years in Federal Prison on Methamphetamine Related ChargesRead the Press Release
A Richland County man was sentenced on November 1, 2013, to twenty eight years in federal prison on methamphetamine related charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
“Let us hope that these extremely long, but well deserved, federal sentences can do something to persuade folks that meth is a scourge on Southern Illinois. I cannot understate the terrible effect that meth has on people.” said United States Attorney Wigginton.
Marty Cody Stacy, 47, of Calhoun, IL, was sentenced to 336 months in prison (28 years), eight years of supervised release following his imprisonment, and fined $250. Stacy was convicted following a trial of all five counts in an Indictment. Count 1 charged that from August 2010, to on or about May 30, 2012, in Richland County, Stacy conspired with others known and unknown to the grand jury to manufacture more than 50 grams of methamphetamine. Counts 2-5 charged that Stacy possessed pseudoephedrine, knowing and having reasonable cause to believe that the pseudoephedrine would be used to manufacture methamphetamine on the dates of May 30, 2012 (Count 2), February 8, 2012 (Count 3), October 25, 2011 (Count 4), and October 11, 2011 (Count 5).
The investigation was conducted by the Richland County Sheriff’s Office.
The case is being handled by Assistant United States Attorney George Norwood.
Effingham County Man Sentenced on Gun Related ChargesRead the Press Release
An Effingham County man was sentenced on November 1, 2013, to federal prison on gun related charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Ivan Joe Golladay, 33, of Effingham, IL, was sentenced to 96 months in prison, three years of supervised release following his imprisonment, and fined $200. Golladay had previously pleaded guilty to two counts in a federal indictment. Count 1 charged that on November 9, 2012, in Effingham County, Golladay was a convicted felon in possession of a .22 Caliber Revolver. Count 2 charged that on November 13, 2012, in Effingham County, Golladay was a convicted felon in possession of a 12 gauge shotgun.
The investigation in this case was conducted by the Effingham Police Department and the Bureau of Alcohol, Tobacco, and Firearms.
The case is being handled by Assistant United States Attorney George Norwood.
Clay County Man Sentenced on Methamphetamine Related ChargesRead the Press Release
A Clay County man was sentenced on October 31, 2013, to federal prison on methamphetamine related charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Derek L. Cosner, 32, of Mason, IL, was sentenced to 170 months in prison, four years supervised release following his imprisonment, and fined $500. Cosner had previously pleaded guilty to two counts in a federal indictment. Count 1 charged that from February 2011, until on or about February 7, 2013, in Clay County, Cosner conspired with others known and unknown to the grand jury to manufacture more than 50 grams of methamphetamine. Count 2 charged that from February 1-7, 2013, Cosner knowingly and intentionally possessed equipment, chemicals, products, or materials, knowing the items would be used to manufacture methamphetamine.
The investigation in this case was conducted by the Flora Police Department, the Clay County Sheriff’s Office, and the Southeastern Illinois Drug Task Force.
The case is being handled by Assistant United States Attorney George Norwood.
Williamson County Man Charged with Firearm OffenseRead the Press Release
On October 31, 2013, Sherman L. Allen, Jr., a/k/a “Larue,” 29, of Marion, IL, was arraigned in federal court in Benton, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Allen was charged by indictment, on October 23, 2013, with Possession of a Firearm by a Felon. At the October 31, 2013, court hearing, Allen was ordered held without bond pending a December 30, 2013, jury trial.
The offense occurred on July 29, 2013, in Marion, Williamson County. The firearm offense carries a penalty of up to 10 years in prison, to be followed by 3 years supervised release, and a fine of up to $250,000.
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 investigation was conducted by the Southern Illinois Enforcement Group and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Illinois State Police Special Weapons and Tactics Team and Williamson County State’s Attorney’s Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Three Murphysboro Residents Charged with Drug OffensesRead the Press Release
On October 31, 2013, Maurice L. Robinson, a/k/a “Ray Ray,” 33, Jamie Kay Kelly, a/k/a “Jamie K.” and “Jamie K. Short,” 45, and Harold Lawayne Barron, a/k/a “Wayne,” 50, all of Murphysboro, were arraigned in federal court in Benton, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. On October 23, 2013, Robinson, Kelly, and Barron, were charged by indictment with Conspiracy to Distribute Crack Cocaine. Kelly and Barron were also charged with Conspiracy to Manufacture Methamphetamine. At the October 31, 2013, court hearing, all three were ordered held without bond pending a December 30, 2013, jury trial.
The crack cocaine offense occurred between May 2013, and September 2013, in Jackson County. The methamphetamine offense occurred between August 2012, and October 2013, in Jackson and Perry Counties. Both offenses carry penalties of up to 20 years in prison, to be followed by 3 years supervised release, and a fine of up to $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, Southern Illinois Enforcement Group, Murphysboro Police Department, Illinois State Police, and the Drug Enforcement Administration. The Jackson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
St. Louis Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
David M. Hightower, a 23-year old, St. Louis, Missouri, man was sentenced on November 4, 2013, 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. Hightower was sentenced to 18 months in prison, five years of supervised release, ordered to pay $100 special assessment and a $200 fine.
The violation occurred between July 14, 2009, and February 22, 2013. Hightower was required to register as a sex offender under both Illinois law and the Sex Offender Registration and Notification Act because he was convicted of Aggravated Criminal Sexual Abuse on September 16, 2005, in Madison County, Illinois.
Hightower signed an Illinois Sex Offender Registration Act Form on July 13, 2009, acknowledging he understood the conditions of maintaining his sex offender registration. It was discovered during an interview by a law enforcement officer on February 12, 2013, in St. Louis, Missouri, in relation to another charge that an active warrant was in effect in Madison County, Illinois, for his failure to register as a sex offender. Hightower admitted living in Missouri when the violation occurred, and not having registered as a sex offender in Missouri until February 23, 2013.
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.
Ramsey 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 on October 31, 2013, William Dale Sidener, 31, of Ramsey, 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 March 7, 2014, in United States District Court in East St. Louis, Illinois. Sidener 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, Sidener 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. Sidener admitted to falsely billing the program between November 2012 and February 2013, when he moved away from the person for whom he was supposed to be caring. As a result, Sidener improperly received $4,677.00 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’s 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 800.447.8477.
Man Sentenced to 70 Months in Prison for Possessing Child PornographyRead the Press Release
David K. Hechler, 28, of Chicago, Illinois, was sentenced Friday, November 1, 2013, in federal court to 70 months in prison for Possession of Child Pornography, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Following his prison sentence, Hechler will be on federal supervised release for 10 years and will also be required to register as a sex offender for the remainder of his life.
Court documents establish that in September 2007, during an undercover investigation conducted by the FBI Innocent Images Unit, agents identified a computer located in the Southern District of Illinois that had been used to attempt to purchase child pornography from the undercover internet website. Further investigation revealed that the computer and IP address used belonged to Hechler, who was a student at Greenville College at the time. During an interview with law enforcement, Hechler admitted to downloading and viewing image and video files containing child pornography on his computer. A forensic examination of Hechler’s computers revealed 262 image files and 3 video files containing child pornography.
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.
Collinsville Man Sentenced to Nearly Twenty Years in Prison for Production of Child PornographyRead the Press Release
A Collinsville, Illinois, man was sentenced on November 4, 2013, on a charge of Production of Child Pornography, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Martin L. Evanick, a/k/a "Vlad," 32, was sentenced to a term in prison of 235 months, to be followed by 20 years supervised release, fined $2,000, and ordered to pay a special assessment of $100. In addition, upon his release from prison, Evanick must register as a sex offender as a condition of his supervised release. Evanick has been detained, that is, held without bond, since his arraignment on October 19, 2012.
“Protecting our children from predators who would steal their very childhood is my highest priority.” said United States Attorney Wigginton. “Like all of us, I am utterly repulsed by such crimes. It is my fervent hope that sentences like this one would deter any person bent on exploiting children.”
The investigation began in April, 2012, when the victim’s (“TM”) mother contacted the Collinsville Police Department regarding a possible sexual assault on her 16 year old minor daughter by a 30 year old man. That man was later identified as Evanick. TM divulged that Evanick had also taken nude pictures of her using his cellular telephone. The investigation revealed that, from approximately March 1, until April 21, 2012, TM stayed with a friend who lived near Evanick. TM and her friend would often visit Evanick at his house.
In a videotaped interview, TM said that, in March and April of 2012, she and Evanick had sex five to six times, and that each sexual encounter occurred at Evanick’s residence. TM said that Evanick warned her not to tell anyone, including her friend. TM stated that, in April 2012, Evanick took pictures of them engaged in oral sex, and that he also took nude pictures of her that exposed her naked genitalia. TM was 17 at the time the photographs were taken. Evanick was 30 years old.
In his first interview, Evanick denied ever having sexual intercourse with TM, and insisted that no nude photographs of TM would be on his cellular phone. A subsequent review of the contents of Evanick’s cellular telephone revealed four photographs that involved TM, all of which were pornographic. Two of the photos showed TM and Evanick engaged in a sexual act, while the other two photos were close-up pictures of TM’s genitalia. The four photographs were later shown to TM who identified herself and Evanick in the photographs.
In a second interview with FBI agents, Evanick admitted that he had a sexual relationship with TM that began in approximately mid-March, 2012, and that he knew she was 17 years old at the time. He said that the two had sex five to seven times, always at his house.
Additional evidence introduced at sentencing revealed that another female minor, after learning of Evanick’s arrest on the news, came forward to report that Evanick had sex with her when she was 14 years old. This girl, who also submitted a written victim impact statement, spoke at the sentencing hearing and revealed that, after she reported the incident in November 2012, she tried to commit suicide, was diagnosed with PTSD, and had to move in with her parents because she was afraid to live alone because she had forced herself to forget the molestation that occurred shortly after her 14th birthday.
The victim in the charged offense, TM, and her mother, also provided victim impact statements to the Court, as well as providing oral statements regarding the effects of Evanick’s actions on both of them. TM told the Court that she had trouble sleeping, as well as other difficulties that she has experienced as a result of the charged offense.
Evidence introduced at sentencing also revealed that Evanick targeted both of the victims while they were vulnerable, and asked them if they were virgins before engaging in sexual contact with them.
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 Collinsville, Illinois, Police Department and the Federal Bureau of Investigation's Springfield Child Exploitation Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Carbondale Man Charged in Heroin ConspiracyRead the Press Release
On October 28, 2013, Michael A. Burns, 45, of Carbondale, was arraigned in federal court in Benton, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Burns was charged by indictment, on October 23, 2013, with Conspiracy to Distribute Heroin. At the October 28, 2013, court hearing, Burns was ordered held without bond pending a December 30, 2013, jury trial.
According to the indictment, the offense occurred between August 2012, and August 23, 2013, in Carbondale, Jackson County. The heroin offense carries a penalty of up to 20 years in prison, to be followed by 3 years supervised release, and a fine of up to $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 investigation was conducted by the Southern Illinois Enforcement Group. The Illinois State Police, Carbondale Police Department, and the Jackson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Cape Girardeau, Missouri, Man Sentenced for Manufacturing and Distributing Counterfeit CurrencyRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that on November 1, 2013, Tyrone A. Jones, 24, of Cape Girardeau, Missouri, was sentenced to 30 months in prison, to be followed by 3 years of supervised release, in United States District Court in Benton, after pleading guilty to two counts of manufacturing and passing counterfeit United States currency.
At his plea on July 25, 2013, Jones admitted that on February 10, 2013, and again on March 10, 2013, he passed over $600.00 in counterfeit currency at a business located in Alexander County, within the Southern District of Illinois. He also admitted that he had manufactured other counterfeit currency that was recovered by the United States Secret Service.
The case was investigated by agents of the United States Secret Service. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian.
Bluford Man Sentenced to Two Years in Prison for Illegally Possessing FirearmRead the Press Release
Craig L. Fenton, 47, of Bluford, Illinois, was sentenced on Friday, November 1, 2013, in United States District Court in Benton to a term of 24 months in prison for being a felon in possession of a firearm, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Fenton was charged with illegally possessing a loaded .38 caliber revolver in an indictment returned by a Federal Grand Jury on May 9th. That firearm was located in Fenton’s vehicle during a traffic stop by a Wayne County Sheriff’s Deputy on April 2nd. During the stop, the deputy’s K-9 alerted on Fenton’s vehicle indicating that illegal narcotics were inside. A subsequent search revealed the firearm, a quantity of marijuana, drug paraphernalia that field tested positive for the presence of methamphetamine, digital scales, plastic sandwich baggies, and other items consistent with the use and distribution of illegal narcotics. Fenton, who had previously been convicted of two felony offenses which made it illegal under federal law for him to possess firearms or ammunition, pled guilty to the indictment on July 11th.
In addition to the 24 month term in federal prison, Fenton was ordered to pay fines and special assessments totaling $400, placed on a 3 year term of supervised release to follow his incarceration, and ordered to forfeit the .38 caliber revolver to the United States.
Fenton has been held without bond since his arrest on the federal charges and was again remanded to the custody of the United States Marshal 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 the Wayne County Sheriff’s Department, with the assistance of the Bureau of Alcohol, Tobacco, and Firearms.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
East St. Louis Man Pleads Guilty to “Crack” Cocaine DistributionRead the Press Release
On October 31, 2013, DeAnthony Tillman, a twenty-seven year old East St. Louis, Illinois, man pled guilty in federal district court, in East St. Louis, to distribution of cocaine base, in the form commonly known as “crack” cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Tillman is scheduled for sentencing on March 7, 2014, at which time he faces a maximum sentence of 20 years in prison and a fine of up to $1,000,000, not more than 3 years of supervised release after his prison term, and a mandatory special assessment of $100.
Court proceedings revealed that on June 27, 2013, Tillman sold two grams of cocaine base in the form of “crack” cocaine to a confidential informant in East St. Louis, Illinois, at the direction and arrangement of ATF agents.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is prosecuted by Assistant United States Attorney Daniel T. Kapsak.
East St. Louis Man Pleads Guilty to Cocaine DistributionRead the Press Release
On October 31, 2013, Michael Scott, Jr., a forty-one year old East St. Louis, Illinois, man pled guilty in federal district court, in East St. Louis, to distribution of cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Scott is scheduled for sentencing on February 27, 2014, at which time he faces a maximum sentence of 20 years’ in prison and a fine of up to $1,000,000, not more than 3 years’ of supervised release after his prison term, and a mandatory special assessment of $100.
Facts presented in court revealed that on July 2, 2013, Scott sold twenty-eight grams of cocaine base to a confidential informant in Washington Park, Illinois, at the direction and arrangement of ATF agents.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Bank Robber SentencedRead the Press Release
A St. Louis man, Walter W. Wallace, Jr., 26, convicted of Armed Bank Robbery of the Caseyville, Ill., branch of the First Collinsville Bank, and Interference with Commerce by Armed Robbery of the Granite City location of Advance America, was sentenced to 151 months in federal prison on October 30, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The court ordered 99 months of the sentence to run consecutively to a 141 month sentence imposed in the Eastern District of Missouri for a bank robbery Wallace committed there, so Wallace will serve a total sentence of 20 years in federal prison for the robbery spree which began on March 1, 2011, and ended on April 30, 2011 (there is no parole in the federal system).
Following release from imprisonment, Wallace will serve 3 years supervised release. Wallace was also ordered to make restitution for the amount stolen, pay a fine, and pay a $200 special assessment. Wallace pleaded guilty to the charges on August 2, 2013. Wallace has been in custody since his arrest on May 3, 2011.
Centralia 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 on October 29, 2013, Michael E. Mays, 53, of Centralia, IL, pled guilty to a two-count indictment charging that he engaged in a scheme to commit health care fraud and that he made false statements in connection with health care benefits. At his sentencing Mays will face up to 10 years in prison, a fine of up to $250,000 and up to 3 years of supervised release on the first count, and up to 5 years in prison, a fine of up to $250,000, and up to 3 years of supervised release on the second count. Sentencing has been set for March 7, 2014, at 11:00 a.m. in United States District Court in East St. Louis, Illinois.
During his plea hearing, Mays, a beneficiary of the Illinois Home Services program, admitted that he had submitted, together with his personal assistant, false and fraudulent claims in regard to the hours of services performed by his personal assistant in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead 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. The case is being prosecuted by Assistant United States Attorney Michael Quinley.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General or call 1-800-447-8477.
East St. Louis Resident Sentenced to 168 Months for Role in KidnappingRead the Press Release
Jevon M. Jenkins, from East St. Louis, Illinois, was sentenced in federal court today to 168 months in federal prison for Aiding and Abetting Kidnapping, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Court documents indicate that in July 2012, Jenkins and others physically assaulted a Cahokia man in East St. Louis. Jenkins then aided and abetted a co-defendant in confining the Cahokia man in a vehicle and driving him across the Popular Street Bridge into Missouri.
United States Attorney Stephen R. Wigginton noted that, “The facts of this case are unimaginable, atrocious, and inexcusable. We are proud of the sentence imposed today. It sends a strong message to the criminals: these crimes will not be tolerated. My office remains dedicated to seeking justice for all victims. Today, the victim in this case witnessed that first hand.”
United States Attorney Wigginton added: “This case would not have been successful without the courage of the investigators, the witnesses, and the victim. We are especially appreciative of the cooperative efforts of the Federal Bureau of Investigation, the Illinois State Police, the Columbia, Illinois, Police Department, and the East St. Louis, Illinois, Police Department, who comprised the Save Our Streets Task Force active in the summer of 2012.”
The case was prosecuted by Assistant United States Attorney Monica A. Stump.
East St. Louis Man Sentenced for Firearm OffenseRead the Press Release
Antoine T. Thomas, 37, from East St. Louis, Illinois, was sentenced on October 25, 2013, in Federal District Court in East St. Louis, on one count of unlawful possession of a firearm by a user of a controlled substance, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Thomas was sentenced to 12 months and a day in prison; two years supervised release, a $500 fine and ordered to pay a $100 special assessment.
Facts presented in court revealed that on June 29, 2010, law enforcement officers executed a search warrant at a residence in East St. Louis, Illinois. A search of the home led to the seizure of two loaded revolvers, marijuana and three digital scales. Thomas admitted ownership of the two firearms and marijuana found in the household.
This case resulted from the efforts of the WAVE (Working Against Violent Elements) Task Force, which focuses its efforts on combating violent crime tin East St. Louis, Washington Park, and surrounding communities. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Cahokia Man Pleads Guilty to Firearm OffenseRead the Press Release
On October 25, 2013, Mautaveus T. Ayers, an 18-year old Cahokia, Illinois, man pled guilty in 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. Sentencing is scheduled for February 27, 2014, at which time he faces a maximum 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 April 17, 2013, a patrolling officer in Cahokia, Illinois, observed a vehicle driven by Ayers commit a traffic violation and fitting the description of a car involved in a shooting earlier that day. The officer activated his lights for the vehicle to stop, but Ayers continued driving. A short chase followed with Ayers eventually stopping in the parking lot of an apartment complex. Ayers attempted to run after exiting the vehicle, but stopped when the officer drew his service weapon, ordering him to stop and lay on the ground. Ayers was placed under arrest. The police car, equipped with an audiovisual dash-camera, recorded Ayers making statements on his cell phone to an unknown individual about his arrest and directing him to retrieve a weapon from his home, and take it to the unknown individual’s residence. Ayers also directed the unknown party to retrieve a firearm he had hidden underneath his sink. Ayers consented to a search of his home the following day, where a shotgun was found underneath his kitchen sink. Ayers has a prior felony conviction in St. Clair County, Illinois.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cahokia Police Department. Special Assistant United States Attorney Neal C. Hong is prosecuting the case.
Another Telemarketer Sent to Prison for Timeshare Resale FraudRead the Press Release
Robert Thomas, 36, of Lakeworth, Fla., was sentenced to 40 months in federal prison for knowingly participating in a fraudulent telemarketing scam that victimized timeshare owners nationwide, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. In pronouncing the sentence, the United States District Judge explained that the prison term was necessary to promote respect for the law and to deter others from committing the same offense. “This is a very serious crime,” he said, noting that the victims of the scheme – many of whom had financial problems – were particularly vulnerable.
Thomas previously worked as a telemarketer for Universal Marketing Solutions and Creative Vacation Solutions – scam companies that operated out of Palm Beach County, Florida, from October 2007 to January 2010. All told, the companies defrauded 22,000 consumers to the tune of $30 million dollars. Victims were found in all 50 States, the District of Columbia and Puerto Rico, all 10 Canadian provinces and the Northwest Territory of Canada. There were at least 54 victims in the Southern District of Illinois, representing 28 of the district’s 38 counties.
In July, Thomas pled guilty to a one-count felony Information charging conspiracy to commit mail fraud and wire fraud in connection with the conduct of telemarketing.
As part of his plea, Thomas admitted that he and other telemarketers lied to consumers over the phone, falsely representing that their company had actual buyers for the consumers’ timeshare properties. In exchange for this false hope, Thomas and others solicited advanced fees of up to several thousand dollars from each victim in purported closing costs – fees they promised would be refunded to the timeshare owner once the closing on the property occurred. Many timeshare owners were told that their closings would take place within 60 to 90 days. Thomas and his co-conspirators, however, simply pocketed the fees. No closings ever took place, and despite collecting fees from 22,000 victims, not a single timeshare unit was ever sold.
Approximately 30 other people have been charged in connection with this scam. The former chief executive of Creative Vacation Solutions, Jennifer Kirk, pled guilty to a criminal Information on June 30, 2011. She was sentenced on January 9, 2012, to over 16 years in prison and five years’ supervised release. Over 20 others have also been sentenced, receiving prison terms that range from 8 months to 14 years.
The prosecutions follow an investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service, working in concert with the Florida Attorney General’s Office, the Florida Department of Agriculture and Consumer Services, and the Boynton Beach Florida Police Department. The case against Thomas was prosecuted by Assistant United States Attorneys Nathan D. Stump and Bruce E. Reppert.
As part of his sentence, Thomas was ordered to pay a $500 fine and a $100 special assessment. He will also spend three years on supervised release after his prison term.
Martial Arts Instructor Pleads Guilty to Six Counts of Sexual Exploitation of A MinorRead the Press Release
Christopher M. Horton, 20, of Highland, Illinois, plead guilty today in the United States District Court to an indictment charging him with five counts of Sexual Exploitation of a Minor and one count of Attempt Sexual Exploitation of a Minor, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Documents filed in US District Court establish that while employed as a martial arts instructor at a studio in Belleville, Illinois, Horton sexually abused three students between the ages of 6 and 10 years and video recorded these acts using his Apple i-Phone. Horton also attempted to engage a fourth minor in sexually explicit conduct for the purposes of producing a recording of the conduct. Approximately 57 video files containing child pornography were recovered from Horton’s cellular phone, which were created between the dates of May 1, 2012, and February 9, 2013. During an interview with law enforcement, Horton confessed to sexually abusing the minors and to having produced video recordings of the abuse using his cellular telephone.
Horton is scheduled to be sentenced on March 7, 2014, at which time he faces a term in prison of not less than fifteen (15) years but not more than 30 years on each count, a fine up to $250,000, and a term of supervised release of not less than five (5) years, up to and including, a lifetime of supervision once he is released.
The case was investigated by the Madison County Sheriff’s Department, the Federal Bureau of Investigation’s Metro East Cyber Crimes and Analysis Task Force, the Highland, Illinois, Police Department and the Belleville, Illinois, Police Department. The case is being prosecuted by Assistant United States Attorney Ali Summers.
Shiloh Man Indicted for Possession of Unregistered Destructive DevicesRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Justin A. Vangilder, of Shiloh, Illinois, was indicted by a federal grand jury for possessing unregistered destructive devices.
The indictment alleges that on October 3, 2013, Vangilder possessed three unregistered explosive destructive devices more commonly known as “pipe bombs,” which comprised of plastic or metal pipes with end caps containing energetic material, smokeless powder, fuses and shrapnel. The charge carries maximum penalties of 10 years in prison, a $10,000 fine, and 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 United States must prove guilt beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Illinois State Police. The case is being prosecuted by Special Assistant U.S. Attorney Jungmin Lee.
Gallatin County Woman Pleads Gulty to Conspiring to Manufacture MethamphetamineRead the Press Release
Angela Seavers, 35, of Ridgeway, Illinois, pled guilty today in United States District Court in Benton to an indictment charging her with conspiring with others to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on May 9th, alleged that the conspiracy existed between February 2012 and March 13, 2013, in Gallatin County.
Sentencing was set for February 7, 2014, at 11:00 a.m. at the United States District Courthouse in Benton. At that time, Seavers faces up to 20 years’ imprisonment, a $1 million fine, and 3 years of supervised release to follow her incarceration.
Seavers has been held in the custody of the United States Marshal since her bond was revoked in September. She was again remanded to the custody of the Marshal to await sentencing.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and is being prosecuted by Assistant United States Attorney James M. Cutchin.
Three Metro Area Men Indicted for Food Stamp FraudRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Alaa K. Jaber (a/k/a “Ace”), 27, of Hazelwood, Missouri, Rami M. Abou Amra (a/k/a “Lucky”), 35, of Troy, Illinois, and Albraa K. Sabrah (a/k/a “Roy”), 25, of Bridgeton Missouri, were each indicted by the federal grand jury on charges that they stole Supplemental Nutrition Assistance Program or “SNAP” (f/k/a Food Stamp) benefits while working at quick shop stores in East St. Louis, Illinois.
The three indictments allege that during varying times from 2010 through 2012, the defendants illegally paid customers cash in exchange for SNAP benefits. Jaber was charged in five counts; Abou Amra and Sabrah were each charged in three counts. Each count carries a maximum penalty of 5 years in prison, a $10,000 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. Department of Agriculture – Office of Inspector General, the Internal Revenue Service – Criminal Investigation, and the U.S. Department of Homeland Security – Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Ranley R. Killian.
St. Louis Man Charged in Federal Court with Robbery of Cahokia Gas StationRead the Press Release
Case Is One of Many Brought as a Result of United States Attorney Wigginton’s Metro-East Armed Robbery Initiative
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 23, 2013, Carvin G. Brooks, 33, of St. Louis, Missouri, was indicted by a federal grand jury sitting in East St. Louis, Illinois, with count 1, interference with commerce by robbery (Hobbs Act) in connection with a robbery of a BP Gas Station that occurred in Cahokia, Illinois, on October 9, 2013.
If convicted of a violation of the Hobbs Act, Brooks faces a term in prison of up to 20 years, a fine of up to $250,000, or both, and a term of supervised release of up to 5 years, as well as a mandatory assessment of $100.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
A tip from Crimestoppers led to the arrest of the defendant. This case is being investigated the Cahokia Police Department and is assigned to Special Assistant United States Attorney Neal C. Hong for prosecution.
Jerseyville Man Charged with Commercial Sex Trafficking of A ChildRead the Press Release
A Federal Grand Jury has returned a two-count indictment against Timothy S. Griesemer, 39, of Jerseyville, Illinois charging him with Commercial Sex Trafficking of a Child and Inducement of a Child to Engage in Prostitution, United States Attorney Stephen R. Wigginton announced today. The alleged violations took place on October 10, 2013 in Jersey County. Griesemer had been charged in a two-count federal Criminal Complaint for the alleged offenses on October 11, 2013. The Court has ordered that Griesemer be held without bond pending trial.
The offenses charged in the indictment allege that, on or about October 10, 2013, Griesemer attempted to recruit, induce, entice and obtain a child under the age of 14 years knowing that the person would be caused to be engaged in a commercial sex act.
A trial date is set for December 2, 2013. If convicted of Commercial Sex Trafficking of a Child, Griesemer faces a term in prison of not less than fifteen (15) years up to life, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life. If convicted of Inducement of a Child to Engage in Prostitution, Griesemer faces a term in prison of not less than ten (10) years up to life, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This investigation was conducted by the Illinois State Police, the Jerseyville Police Department and the United States Secret Service Southern Illinois Cyber-Crime Unit. The case is assigned to Assistant United States Attorney Ali Summers.
Fourteen Indicted for Deliberately Defrauding Federal Unemployment Insurance ProgramRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that fourteen individuals were indicted on October 23, 2013, by a federal Grand Jury. The indictments charge each person with, among other things, Embezzling Public Funds, namely unemployment insurance payments administered by the Illinois and Missouri Departments of Employment Security. The total amount of fraudulent overpayments alleged in the 14 indictments is $351,005.87.
“Cheating on unemployment compensation is a crime," said United States Attorney Wigginton. "Those who defraud the unemployment insurance program undermine support for an important public program and hurt and insult every law-abiding citizen of Southern Illinois. No person is above the law, thus I will continue my efforts to see that persons who defraud the United States of America, and all of us, are made to face justice."
The individuals charged include:
Elizabeth Asbury, 41, of Hartford
Clarence Budde III, 41, of New Baden
Gary Cuddy, 31, of Olney
Sheila Davison, 45, of Cahokia
Steven Gordon, 39, of Effingham
Michael Hill, 48, of East St. Louis
Trudie Lindsey, 56, of East St. Louis
Kenneth Loving, 42, of East St. Louis
Melonetria McCallum, 37, of O’Fallon
Robert Pickett, 43, of Venice
Quintin Redd, 46, of Fairview Heights
Regina Skjerseth, 43, of Sage Creek
Rickey Watson, 48, of Belleville
Nicholas Zezoff, 41, of Granite CityThese cases were investigated by the U.S. Department of Labor and the Illinois Department of Employment Security and the Missouri Division of Employment Security, and are being prosecuted by Special Assistant United States Attorney Stuart J. Zander.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
Belleville Woman Indicted for Health Care Fraud and Obtaining Controlled Substances by FraudRead the Press Release
Yolanda Rice, 23, of Belleville, IL, was indicted on October 23, 2013, on charges of Health Care Fraud and Obtaining Controlled Substances by Fraud, in a three-count Indictment returned by a Federal Grand Jury sitting in East St. Louis, IL, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Count 1 of the indictment alleged that between May of 2011 and September of 2012, Rice defrauded Medicaid by authorizing, through her employer, false prescriptions for controlled substances for Medicaid beneficiaries and then diverting the controlled substances for her own use. Counts 2 and 3 allege that on November 30, 2011, and on December 31, 2011, Rice fraudulently obtained Oxycodone, a Schedule II controlled substance, by fraud, misrepresentation and deception.
With respect to Count 1, Rice faces up to 10 years in prison, up to a $250,000 fine, and up to 3 years supervised release. For Counts 2 and 3, Rice faces up to 4 years in prison, up to a $250,000 fine, and up to 3 years supervised release. A $100 Special Assessment is assessed for each count.
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 Fairview Heights Police Department, the Drug Enforcement Administration, the U.S. Department of Health and Human Services, Office of Inspector General, and the Illinois State Police.
The case is being handled by Assistant United States Attorney Ranley R. Killian.
Belleville Man Pleads Guilty to Armed Robbery of Circle K Gas StationRead the Press Release
A Belleville, Illinois, man pled guilty in federal district court to two counts of armed robbery on October 21, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
London Brown, 21, of Belleville, Illinois, pled guilty to an Indictment charging him with two counts of “Hobbs Act Robbery,” which makes it a crime to obstruct, delay, or affect interstate commerce by 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 . . . .” Brown also pled guilty to a third count of the Indictment, which charged him with brandishing a firearm in furtherance of a federal crime of violence.
A Factual Stipulation filed with the court indicates that the charges relate to separate robberies of a Circle K gas station in Belleville, Illinois, which occurred on July 22, 2013, and August 15, 2013. In both robberies, Brown pointed a rifle at the Circle K clerk on duty and demanded that the clerk give him the money in the cash register. The July robbery netted Brown only $100; the August robbery netted him only $358. These sums were proceeds of sales of goods that had moved in interstate commerce. It was the custom of Circle K to deposit the funds into a bank account in Belleville; such funds were then transmitted by interstate wire to the corporation’s bank in Indiana. The parent company of the Circle K is headquartered in Indiana. Thus, these robberies obstructed, delayed, and affected commerce.
Following the August 15 robbery, the Circle K clerk alerted the Belleville police, who spotted Brown in flight, carrying the rifle. A foot chase ensued, and police caught Brown hiding in some bushes in a residential area several blocks from the Circle K. Police also located and confiscated the rifle that Brown used in the robberies. Brown confessed to police, admitting that he had committed the two robberies, and admitting that he had possessed and brandished the rifle that police recovered. He told police that he had intended to use some of the proceeds from the robberies to pay his girlfriend’s telephone bill.
“I announced back on September 12th that I was initializing a group of federal, local and state law enforcement agencies to pursue these types of cases in an Armed Robbery Suppression Initiative, similar to the Major Case Squad investigating and solving its cases. This is the first plea of guilty out of that effort. It will not be the last.” noted United States Attorney Wigginton. “I will continue to creatively use all of the resources at my disposal to enhance the safety of all of the citizens of Southern Illinois.”
The maximum penalties that can be imposed for each robbery count are twenty years in prison, a $250,000 fine, or both, three years of supervised release, and a $100 special assessment. The firearm brandishing charge carries an additional minimum seven 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.
Sentencing is set for January 24, 2013, at 10:30 a.m.
The case was investigated by members of the Belleville Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Stephen B. Clark.
Two Jackson County Men Plead Guilty to Methamphetamine ConspiracyRead the Press Release
Two Jackson County, Illinois, men pled guilty to an indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
On October 9, 2013, and October 17, 2013, Donald Gregory, 47, of Murphysboro, and Daniel Loden, 30, of Grand Tower, entered guilty pleas to the one-count indictment charging conspiracy to manufacture methamphetamine. The offense occurred between March 2011 and March 2013 in Jackson County. Gregory is facing a term in prison of 5-40 years, a $5,000,000 fine, and 4 years of supervised release. Loden is facing up to 20 years in prison, a $1,000,000 fine, and 3 years of supervised release. Both Gregory and Loden are being held without bond pending their January 2014 sentencing hearings.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office and Murphysboro Police Department.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Shawneetown Man Sentenced on Methamphetamine and Ammunition OffensesRead the Press Release
On October 17, 2013, Michael A. Lovell, 35, of Shawneetown, Ill., was sentenced in United States District Court in Benton on a three-count indictment charging him with conspiracy to manufacture methamphetamine, possession of methamphetamine-making materials, and being a felon in possession of ammunition, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Lovell was sentenced to a total of 151 months in prison, to be followed by 3 years of supervised release. Lovell was also fined $600. Evidence at the plea and sentencing hearings established that, between August 2010 and August 7, 2012, Lovell was involved with others in the manufacture of methamphetamine in Saline and Johnson Counties. On May 16, 2011, Saline County officers found Lovell passed out in the driver’s seat of a vehicle with the motor running and the car in gear. When Lovell and the vehicle were searched, officers located methamphetamine, methamphetamine-making materials, and ammunition. On August 7, 2012, Lovell was arrested in possession of a methamphetamine lab and methamphetamine-making materials in Johnson County. Lovell received an enhanced sentence based on his classification as a Career Offender.
The investigation was conducted by the Southern Illinois Drug Task Force, Johnson County Sheriff’s Office, Vienna Police Department, Saline County Sheriff’s Office, Illinois State Police Methamphetamine Response Team, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Randolph County Woman Pleads Guilty to Methamphetamine OffensesRead the Press Release
On October 17, 2013, Rachel S. Holt, 40, Sparta, Illinois, pled guilty to three methamphetamine-related offenses, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Holt pled guilty to a three-count indictment charging conspiracy to manufacture methamphetamine and two counts of possession of pseudoephedrine knowing that it would be used to manufacture methamphetamine. Evidence at the plea hearing established that, between 2009 and March 2013, Holt was involved with others in the manufacture of methamphetamine in in Jackson, Randolph, and St. Clair Counties. On March 17, 2010, Holt obtained pseudoephedrine at stores in both Sparta and Belleville. On September 30, 2011, Holt and four co-conspirators purchased pseudoephedrine together at Carbondale and Murphysboro stores. The pseudoephedrine was obtained for the purpose of manufacturing methamphetamine. Holt is currently being held without bond pending a January 30, 2014, sentencing hearing. At that time, Holt faces 5-40 years in prison, 4 years of supervised release and up to a $5,000,000 fine.
The investigation was conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, Murphysboro Police Department, Sparta Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Jackson County Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
A Jackson County, Ill., man pled guilty to an indictment charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
On October 17, 2013, Brian W. Davis, 31, of Desoto, entered a guilty plea to a one-count indictment charging conspiracy to manufacture methamphetamine. The offense occurred between June 2012 and November 1, 2012, in Jackson and Union Counties. Davis is currently being held without bond pending a January 30, 2014, sentencing hearing. At that time, he will face a penalty of up to 20 years in prison, a $1,000,000 fine, and 3 years of supervised release.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Cutler Man Pleads Guilty to Being Part of Methamphetamine ConspiracyRead the Press Release
On October 17, 2013, Virgil L. Easton, 35, of Cutler, Illinois, pled guilty in United States District Court in Benton to an indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
The offense occurred between January 2011, and January 2013, in Perry, Jackson, and Randolph Counties. Evidence at the plea hearing established that, during the conspiracy, Easton obtained and provided pseudoephedrine to others for use in the manufacture of methamphetamine. Easton is currently being held without bond pending his January 30, 2014, sentencing hearing. Easton faces up to 20 years in prison, 3 years of supervised release, and a fine of up to $1,000,000. Ten co-defendants have previously been sentenced for their role in the methamphetamine conspiracy. Three co-defendants have pled guilty and are awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, Perry County Sheriff’s Office, Percy Police Department, Murphysboro Police Department, Sparta Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
West Frankfort, Illinois, Man Sentenced for Child Pornography OffensesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 17, 2013, Devere L. Abair, Jr., 48, of West Frankfort, Illinois, was sentenced in federal district court for accessing child pornography images online and for failure to register as a convicted sex offender. Abair had earlier pled guilty to the charges on July 8, 2013. The Court sentenced Abair to 12 years in prison, a $400 fine and 10 years of closely monitored supervision after release from prison.
“Protecting our children from those who would prey upon them is my duty and my passion.” noted United States Attorney Wigginton. “Accessing these images victimizes children again and again. Such despicable behavior must be stopped.”
The evidence at sentencing established that Abair had previously been convicted in Indiana for sex offenses involving children. That conviction required Abair to register as a sex offender and notify authorities when he changed residences. Thereafter, Abair moved to West Frankfort, Illinois, and failed to notify authorities in Indiana or Illinois that he had moved. While investigating that offense, authorities discovered that Abair had been accessing child pornography from three computers at his West Frankfort residence.
The investigation in this case was conducted by the Secret Service Southern Illinois Cyber Crimes Task Force, The United States Marshals Service, and the Franklin County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Thomas E. Leggans.
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".
Pay to Play: Three Madison County Tax Buyers Plead Guilty to Price FixingRead the Press Release
Three individuals who participated in Madison County tax sales from 2005-2008 pled guilty in US District Court on October 17, 2013, to violating the Sherman Antitrust Act, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Barrett R. Rochman, 70, of Makanda, IL, Scott K. McLean, 51, of Belleville, IL, and John A. Vassen, 56, of O’Fallon, IL, each pled guilty to participating in noncompetitive tax sales.
The former treasurer of Madison County, Illinois, Fred Bathon pled guilty in US District Court on antitrust charges on February 5, 2013. Bathon was convicted of structuring Madison County property tax sales in a way that increased interest rates for the tax buyers in exchange for campaign contributors.
The charges allege that 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%. The tax buyers who pled guilty today were charged with making campaign donations to Bathon in exchange for receiving property tax liens at non-competitive interest rates.
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.
A violation of the Sherman Antitrust Act is punishable by up to 10 years imprisonment and a $1,000,000 fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than the statutory maximum. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Sentencing for all three tax buyers has been scheduled for February 21, 2014. Bathon is scheduled for sentencing on December 6, 2013.
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 is being prosecuted by United States Attorney Stephen R. Wigginton and Assistant United States Attorney Steven D. Weinhoeft.