Southern District of Illinois
Press releases recorded for this federal judicial district.
Drug Bust in Pontoon Beach Leads to 7-Year Prison Term for St. Louis ManRead the Press Release
Pontoon Beach, Ill. – A St. Louis man who tried to buy cocaine in Illinois has been sentenced to
over 7 years in prison. Steve P. Kennedy, 51, appeared at the federal courthouse in East St. Louis
on Tuesday and was sentenced to 87 months behind bars for attempting to possess with the intent to
distribute cocaine, possession of a firearm in furtherance of a drug trafficking crime, and being a
felon in possession of a firearm. Kennedy pled guilty to the charges in May.The offenses all occurred on August 12, 2020, when, according to court documents, Kennedy and a
co-defendant, Stephen Brown, drove to a restaurant in Pontoon Beach, Illinois, intending to
purchase 2 kilograms of cocaine. The man they were meeting was a confidential source working at the
direction of law enforcement. DEA agents arrested Kennedy and Brown at the restaurant shortly after
they arrived.At the time of his arrest, Kennedy was carrying a .22 caliber semi-automatic pistol with an
attached silencer and seven loaded magazines, along with $33,000 in cash. Kennedy has a prior
felony drug conviction from Mississippi that prohibits him from lawfully possessing a gun.Brown had another $5,000 in his car and was also charged. His sentencing will be held in October.
As part of the sentence, Chief United States District Judge Nancy J. Rosenstengel ordered Kennedy
to forfeit his interest in the seized cash, pay a $150 fine, and serve a 3-year term of supervised
release. The case was investigated by the DEA in Fairview Heights.
Jury Convicts Belleville Man of Attempting to Arrange Sex with Young GirlRead the Press Release
East St. Louis, Ill. – A Belleville man is facing at least 10 years in prison after a federal jury
found him guilty today of attempting to arrange sexual activity with a minor.According to court documents and evidence presented at trial, Sean P. Van Horn, 49, responded on
April 29, 2020, to a Craigslist ad placed by FBI agents advertising incest. Van Horn
then began exchanging emails with an undercover agent who portrayed himself as the father of a
10-year-old girl. Over the course of roughly one month, Van Horn sent the agent multiple messages
that described in graphic terms the specific sexual acts that he wished to perform on the girl. Van
Horn also asked to meet up with the agent and the fictitious girl so that he could have sex with
her.FBI agents arrested Van Horn on May 28, 2020, when he showed up at the prearranged location in
O’Fallon, Illinois.Graphic messages sent by Van Horn to the undercover agent were shown to the jury during the two-
day trial held at the federal courthouse in Benton, Illinois. Jurors also heard a recorded call
that Van Horn made to his girlfriend while he was in custody in which he admitted to being on
Craigslist “doing things I shouldn’t have been doing.”Sentencing has been scheduled for Nov. 16, 2021, in front of United States District Judge Stacie M.
Yandle. Attempted enticement of a minor is punishable by at least 10 years and up to life in
prison.FBI-Springfield conducted the investigation.
The case was prosecuted by Assistant U.S. Attorneys Karelia Rajagopal and Casey Bloodworth.
Metro East Personal Assistant Facing Health Care Fraud ChargesRead the Press Release
EAST SAINT LOUIS, Ill. – Shomanicka Holly, 36, of East Saint Louis, Illinois, was arraigned in
federal court today after a grand jury returned an indictment charging her with three counts of
felony health care fraud.
The indictment alleges that Holly served as a personal assistant from 2016 to 2019 for a qualified
beneficiary enrolled in the Illinois Department of Human Services Home Services Program. The Home
Services Program is a Medicaid program in Illinois that provides personal assistants to
Medicaid recipients to assist them with general household activities and personal care. It is
designed to reduce Medicaid expenditures by avoiding more expensive institutional care, including
nursing home care.According to the indictment, Holly submitted false timesheets requesting payment for
personal assistant services that she never actually performed because she was working at another
job, not caring for the Medicaid recipient. In doing so, Holly allegedly defrauded the
program and breached its policies stating that personal assistants “cannot charge [the Home
Services Program] for the same hours worked when working another job” and “billing for
hours not worked constitutes Medicaid fraud.”Holly’s case is set for trial on October 4, 2021, at 9:00am, before United States District Judge
David W. Dugan in the federal courthouse in East St. Louis. If convicted, Holly faces a maximum penalty
of 10 years in prison on each fraud 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.This case was investigated by agents of the U.S. Department of Health and Human Services, Office of
Inspector General (HHS-OIG) and the Illinois State Police, Medicaid Fraud Control Bureau (MFCB).
The case is being prosecuted by Assistant United States Attorney Luke J. Weissler.
Freeburg Couple Plead Guilty to Defrauding Elderly Family MemberRead the Press Release
EAST SAINT LOUIS, Ill. – Ronald Speiser, 81, and Jean Speiser, 81, of Freeburg, Illinois, pled
guilty today in federal court to two felony charges after defrauding an elderly family member out
of nearly $200,000.
The Speisers were designated as the victim’s power of attorney and successor power of attorney in
estate documents. In June 2018, they exercised their authority over the victim’s finances by
opening a joint account for Ronald Speiser and the victim at Citizens Community Bank in Mascoutah,
Illinois, and depositing a check for over $250,000 after selling the victim’s home. Starting around
December 2018, and continuing until at least June 2020, the Speisers abused their access to
these funds by spending over $200,000 of the victim’s money without the victim’s knowledge or
permission, and for purposes that did not benefit the victim. Their spending spree included over
$50,000 in personal home renovations, paying over a year’s worth of personal credit card bills,
purchasing a $29,000 camper and $23,000 truck, and making a down payment and thirteen mortgage
payments on a second home.As part of the plea agreement, the Speisers agreed to a sentence including twelve months of home
confinement and full restitution to the victim, including $119,000 that must be paid
before their sentencing hearing. The Speisers’ sentencing is set for November 18, 2021, at 1:30pm
in the federal courthouse in East St. Louis.This case was brought as part of the Department of Justice’s Elder Fraud Initiative. Information
about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.If you or someone you know is age 60 or older and has been a victim of financial fraud, help is
standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This
U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by
experienced professionals who provide personalized support to callers by assessing the needs of the
victim, and identifying relevant next steps. Case managers will identify appropriate reporting
agencies, provide information to callers to assist them in reporting, connect callers directly with
appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is
the first step. Reporting can help authorities identify those who commit fraud and reporting
certain financial losses due to fraud as soon as possible can increase the likelihood of recovering
losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.The case was investigated by Adult Protective Services, St. Clair County Sheriff’s Department, and
Federal Bureau o Investigation. The case is being prosecuted by Assistant United States Attorney
Luke J. Weissler.
Department of Justice Announces Launch of Firearms Trafficking Strike Forces to Crack Down on Sources of Crime GunsRead the Press Release
FAIRVIEW HEIGHTS, Ill. – The U.S. Department of Justice today launched five cross-jurisdictional
strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions
across the country. Leveraging existing resources, the regional strike forces will
better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key
market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C.
Each strike force region will be led by designated United States Attorneys, who will collaborate
with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and with state and
local law enforcement partners within their own jurisdiction (where firearms are used in crimes)
as well as law enforcement partners in areas where illegally trafficked guns originate. These
officials will use the latest data, evidence, and intelligence from crime scenes to
identify patterns, leads, and potential suspects in violent gun crimes.“All too often, guns found at crime scenes come from hundreds or even thousands of miles away. We are redoubling our efforts as ATF works with law enforcement to track the movement of illegal firearms used in violent crimes. These strike forces enable sustained coordination across multiple jurisdictions to help disrupt the worst gun trafficking corridors,” said Attorney General Merrick B. Garland. “The Department of Justice will use all of its tools – enforcement, prevention, intervention, and investment – to help ensure the safety of our communities – the department’s highest priority.”
According to gun trace data, a significant number of firearms recovered in Chicago originate
outside the Chicago area. The new strike force will help ensure sustained and focused coordination
between law enforcement and prosecutors in Chicago and their counterparts in those other
locations. The Southern District of Illinois stands ready to assist in these efforts as needed.The strike forces represent one important, concrete step in implementing the
Department’s Comprehensive Violent Crime Reduction Strategy, which was announced on May
26, 2021. The comprehensive strategy supports local communities in preventing, investigating, and
prosecuting gun violence and other violent crime—and requires U.S. Attorneys’ offices to work with
federal, state, local and tribal law enforcement, as well as the communities they serve,
to address the most significant drivers of violence in their districts. In guidance to federal
agents and prosecutors as part of that comprehensive strategy, the Deputy Attorney General made
clear that firearms traffickers
providing weapons to violent offenders are an enforcement priority across the country.Since April 2021, the Department has taken the following steps to reduce and prevent violent crime,
especially the gun crime that is often at the core of the problem:
• April 8, 2021 – Attorney General Garland, alongside President Biden, announced four
concrete steps for addressing gun violence: ATF would propose a new rule within 30 days to help
curb the proliferation of so-called ghost guns, ATF would propose a new rule within 60 days on
stabilizing braces used to convert pistols into short-barreled rifles, the Department would publish
model state extreme risk protection order legislation within 60 days; and ATF would begin preparing
a thorough and detailed new public study of firearms trafficking for the first time in 20 years.• In April 2021, the Office of Justice Programs also made clear when existing grant
funds could be used to support Community Violence Intervention (CVI) programs.• On May 7, 2021, meeting the Attorney General’s announced timeline, ATF issued a
notice of proposed rulemaking to update outdated firearms definitions and to help address the
proliferation of ghost guns.• May 26, 2021, the Attorney General announced the Department’s comprehensive strategy
to reduce violent crime, including an overall Department Violent Crime Reduction Strategy, the
strengthening of Project Safe Neighborhoods (PSN), and a directive to U.S. Attorneys to work with
their local partners in addressing the increase in violence that typically occurs over the summer
(with specific support from DOJ law enforcement agencies)• On June 7, meeting the Attorney General’s announced timeline, ATF issued a notice of
proposed rulemaking to clarify that the restrictions imposed by the National Firearms Act apply
when stabilizing braces are used to convert pistols into short-barreled rifles.• On June 8, meeting the Attorney General’s announced timeline, the Department
published model state extreme risk protection order legislation.• On June 22, 2021, the Attorney General announced that the Department would be
forming five Firearms Trafficking Strike Forces within 30 days.On, June 23, 2021, the Attorney General, alongside President Biden, announced steps that ATF would take to hold rogue gun dealers accountable for their actions. They include applying a “no
tolerance” policy for federal firearms licensers (FFLs) that willfully commit violations
that endanger public safety; designating points of contact for state and local government
officials to report concerns about rogue FFLs; formalizing the use of public safety factors
for inspection prioritization; sharing inspection information with states that regulate
firearms dealers themselves; resuming the practice of notifying revoked dealers on how to
dispose of their inventory and the potential criminal consequences of continuing to engage
in the business; increasing ATF’s resources for inspections;and publicly posting disaggregated inspection information to ATF’s website.
St. Louis Man Pleads Guilty to Federal Gun and Drug OffensesRead the Press Release
EAST ST. LOUIS, Ill. – Lamondra Beckley, 43, of St. Louis, Missouri, pleaded guilty
today to
possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a
drug trafficking offense, and unlawful possession of a firearm by a convicted felon. Beckley has
been under federal indictment since April 6.As part of his guilty plea, Beckley admitted that on March 11, 2021, he possessed approximately 114
grams of methamphetamine, which he intended to sell to a customer at a gas station
in Fairview Heights, Illinois, before being arrested by DEA agents. At the time of his arrest,
Beckley also possessed a Taurus Model 709 Slim handgun. Beckley has a prior felony conviction that
prohibits him from lawfully possessing a firearm.Sentencing is scheduled for November 10 at 10:00 a.m. in East St. Louis. Under federal law, Beckley
faces at least 5 years imprisonment. United States District Judge David W. Dugan will determine any
sentence after considering the federal sentencing guidelines and other statutory factors.Beckley is one of two co-defendants named in the indictment. The other man – Deandre Young, 42, of
St. Louis – is charged with aiding and abetting Beckley in the possession of methamphetamine with
intent to distribute and with possessing a Beretta Model .25 Panther handgun in furtherance of the
offense. Young’s trial is scheduled for October 4. Members of the public are reminded
that an indictment is merely a formal charge, and all criminal defendants are presumed innocent
until proven guilty beyond a reasonable doubt.The case against Beckley and Young is being investigated by the DEA in Fairview Heights.
Assistant U.S. Attorney Daniel T. Kapsak is prosecuting the case.
Madison Man Sentenced to 5 Years for Unlawful Gun PossessionRead the Press Release
EAST ST. LOUIS, Ill. – Jeremy D. Mosby, 28, of Madison, Illinois, has been sentenced to 63 months
for being a convicted felon in possession of a firearm. Mosby pleaded guilty to the charge in
March.
On Feb. 16, 2020, Mosby drove a rental car to the BP Crown Food Mart in East St. Louis. According
to court documents, Mosby was caught on surveillance video standing outside talking to another man
identified as J.H. Mosby had a gun tucked into his waistband. Both men got into the car and
continued their conversation. A struggle ensued, and Mosby got out and fired his gun into the car.
J.H. fled the parking lot in Mosby’s rental car.East St. Louis police officers stationed nearby heard the gunshots and responded to the scene.
Mosby matched the description of the shooter and was walking across the parking lot talking on his
cell phone when officers arrived. A 9mm semi-automatic handgun was found nearby under a bush.
Officers also recovered 13 spent 9mm shell casings from the scene. One of the shots fired by Mosby
hit the East St. Louis City Hall vestibule.When he was arrested, Mosby was found in possession of a small amount of methamphetamine and
$5,500 in cash. Mosby later admitted to police that he was the shooter but claimed he was being
robbed and only fired in self-defense. Court records show Mosby has a 2014 felony conviction for
unlawful possession of a firearm in St. Clair County circuit court.In addition to his prison term, Mosby was ordered to serve 3 years on supervised release and pay a
$100 fine.The case was investigated by the East St. Louis Police Department and the Bureau of
Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Ali Burns prosecuted the case.This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the
Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to
be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together
to identify the most pressing violent crime problems in the community and develop comprehensive
solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most
violent offenders
and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former Treasurer of Perry County Agricultural Society Indicted for FraudRead the Press Release
PINCKNEYVILLE, Ill. – The former treasurer of the Perry County Agricultural Society (“PCAS”) is
under federal indictment for defrauding the PCAS out of more than $100,000. Billy E. Harris, 47, is
charged with 10 counts of mail fraud. Harris served as the treasurer of the PCAS from 2011-2018 and
currently lives in St. Louis, Missouri.The PCAS operates all the festivals at the Perry County Fairgrounds in Pinckneyville, including the
Perry County Fair. According to the indictment, from June 5, 2012, through October 3, 2018, Harris
used the PCAS bank account to pay his personal expenses and purchase items for his personal use.
The indictment lists many of the personal items Harris allegedly purchased using PCAS
funds, including a WiFi router, Apple AirPods, a Himalyan salt lamp air purifier, Darth Vader and
Yoda personalized pet tags, a pair of Star Wars men’s sleep pants, a floating pool fountain, a CPAP
tube cleaning brush, and “beard lube.” Many of the items were allegedly purchased through Amazon.
Harris is also charged with writing checks on the PCAS account payable to himself and his spouse
and forging a PCAS board member’s signature on the checks.Harris is scheduled to make his initial court appearance on July 19, 2021, before U.S. Magistrate
Judge Reona Daly of the U.S. District Court for the Southern District of Illinois. If convicted, he
faces a maximum penalty of 20 years in prison on each count. A federal district court judge will
determine any sentence after considering the U.S. Sentencing Guidelines and other statutory
factors.An indictment is merely an allegation and all defendants are presumed innocent until proven guilty
beyond a reasonable doubt in a court of law.The St. Louis Office of the U.S. Postal Inspection Service and the Pinckneyville Police Department
are investigating the case, with assistance from the Perry County State’s Attorney’s Office.
Assistant U.S. Attorney Scott Verseman is prosecuting the case.
Christopher Grant Convicted in Federal Court for the Murder of Illinois State Trooper Nicholas HopkinsRead the Press Release
FAIRVIEW HEIGHTS, Ill. – Christopher R. Grant, 47, of East St. Louis, Illinois, faces
the possibility of life without parole following his guilty plea earlier today to a series of
federal charges in connection with the 2019 murder of Illinois State Trooper Nicholas Hopkins. Tpr.
Hopkins, 33, was killed in the line of duty while attempting to execute a state search warrant at
Grant’s house in East St. Louis.Appearing in federal district court today, Grant pled guilty to 6 federal crimes, including using a
firearm to commit murder in furtherance of a drug trafficking crime.“From the first hours of this investigation, the U.S. Attorney’s Office has pledged to vigorously
pursue justice for Trooper Hopkins and his family,” said U.S. Attorney Steven D.
Weinhoeft. “Today’s conviction is an important step toward keeping that solemn promise. Our
thoughts and prayers remain with his family, and we will continue our work to honor his sacrifice.”On March 18, 2020, a federal grand jury returned an 8-count indictment against Grant, charging him
with distributing crack cocaine (3 counts), maintaining a drug house, possession of a firearm by a
convicted felon, possession of a firearm in furtherance of a drug trafficking crime, use of a
firearm in furtherance of a drug trafficking crime, and use of a firearm to commit
murder in furtherance of a drug trafficking crime.Prosecutors agreed to dismiss the charges for possessing and using a firearm during a federal drug
crime after Grant pleaded guilty to murder, although the dismissal of those lesser counts does not
change the statutory penalties Grant faces.Leading up to the murder, an Illinois State Police investigation showed that Grant was selling
marijuana and crack cocaine from his home on North 42ⁿᵈ Street, in East St. Louis.
Officers conducted a series of controlled purchases of crack cocaine from Grant and obtained a
search warrant to search his house. The ISP SWAT Team was called in to help execute the warrant
after it was learned that Grant had a cache of weapons inside.On the morning of Aug. 23, 2019, Tpr. Hopkins and two other SWAT Team members went onto
Grant’s porch to connect chains from the front hooks of a police Ford F350 to a set of steel barsprotecting the front door. Officers were preparing to forcibly remove the steel bars from the door
frame so they could enter through the front door.Grant later told officers that he was sleeping on the couch in the living room close to the front
door when the activity on the porch woke him up. Grant claimed that he suspected someone was there
to rob him, as he had been robbed of cash and drugs roughly two weeks earlier. As part of his
guilty plea, he admitted that he had been sleeping on a .9 mm handgun and that he fired the gun
three times towards whoever was on his porch.Tpr. Hopkins had just finished connecting the chain to the steel bars on the front of the house and
was turning to walk back down the steps when one of Grant’s gunshots passed through the wooden door
and struck him in the head, entering through his right temple. Officers returned directed fire as
other ISP SWAT Team members rushed to Hopkins’ rescue. He was transported to St. Louis University
Hospital, but all life-saving efforts were unsuccessful, and he was pronounced dead at 6:10 p.m. on
Aug. 23, 2019.A later search of the house recovered 8 firearms, including an AR-15 rifle, an AK-47 rifle, and
five handguns. Grant’s DNA was found on the murder weapon: a Glock Model 19, 9 mm pistol.Sentencing is scheduled for Nov. 9, 2021. Using a firearm to commit murder in furtherance of a drug
trafficking crime is punishable by at least 10 years and up to life in prison. Chief United States
District Judge Nancy J. Rosenstengel will determine the sentence after considering the
U.S. Sentencing Guidelines and other statutory factors.This case is being investigated by the Illinois State Police and the Bureau of Alcohol, Tobacco,
Firearms & Explosives. U.S. Attorney Steven D. Weinhoeft and Assistant U.S. Attorney Ali M.
Summers are prosecuting the case.
AAR Corp. Settles False Claims Act Investigation for $11 MillionRead the Press Release
WASHINGTON – AAR Corp., located in Wood Dale, Illinois, and its subsidiary, AAR Airlift
Group Inc. (Airlift), located in Melbourne, Florida, have agreed to pay the United
States
$11,088,000 to resolve allegations that they violated the False Claims Act in
connection with aircraft maintenance services performed by Airlift on two United States
Transportation Command (USTRANSCOM) contracts.The allegations involve helicopters that Airlift owned and maintained for use in
transporting Department of Defense (DoD) cargo and personnel in support of DoD missions in
Afghanistan and Africa. The settlement resolves allegations that Airlift knowingly failed
to maintain nine aircraft in accordance with contract requirements, and that because of this
failure, the helicopters were not airworthy and should not have been certified by Airlift as “fully
mission capable.”AAR and Airlift have also agreed to pay $429,273.69 to resolve a separate Federal
Aviation Administration (FAA) matter citing certain deficiencies in Airlift’s helicopter
maintenance.“The knowing failure to comply with contractual obligations is unacceptable, particularly when such
violations raise safety concerns” said Acting Assistant Attorney General Brian M. Boynton for the
Justice Department’s Civil Division. “Today’s settlement reaffirms that the government will hold
contractors to the quality and safety standards in their contracts that are intended to
protect our men and women in uniform.”“Defense contracting is a special trust because it supports the service members who protect our
nation’s interests around the world. Whenever a military contractor cuts corners, it presents not
only a possible fraud against taxpayers but also a potential safety hazard to our service members,”
said Steven D. Weinhoeft, U.S. Attorney for the Southern District of Illinois. “The settlement
announced today addresses both of those concerns. I am especially grateful to my staff, the many
dedicated agents who worked on this matter, and the witnesses who came forward.”“Our military is entitled to rely on high level contractor performance when it procures essential
services like those at issue here,” said Acting U.S. Attorney Karin Hoppmann for the
Middle District of Florida. “We are grateful for the diligent and collaborative work
put into this investigation by the Southern District of Illinois, the Department of Justice Civil
Frauds Section,
and all of the investigative agencies who supported these cases.“Failure to properly maintain aircraft is unacceptable under any circumstances, but it’s especially
egregious in a war zone, where the lives of America’s warfighters are on the line,” said John F.
Sopko, Special Inspector General for Afghanistan Reconstruction. “I’m proud of the work
of SIGAR’s special agents – in Afghanistan and the United States – whose collaboration brought this
case to a successful conclusion.”“The Department of the Air Force Office of Special Investigations (OSI) commends the
complainant for coming forward, which allowed us and our joint investigative partners
to vigorously protect the DoD’s procurement process, preserve the military’s ability to carry out
its warfighting mission and ensured the wrongdoers were held accountable,” said Special Agent in
Charge Nicholas J. Groesbeck of the OSI Procurement Fraud Detachment 4, Wright-Patterson AFB, OH.“This case demonstrates the commitment of the Defense Criminal Investigative Service (DCIS), along
with our partner agencies, to aggressively go after those who disregard and ignore critical safety
and contractual specifications on Department of Defense contracts,” said Acting Special Agent in
Charge Gregory P. Shilling of the DCIS Southwest Field Office. “Today’s resolution highlights the
culmination of investigative efforts to hold those who supply the Department of Defense
accountable for their product and actions.”“It is unacceptable that anyone would bypass contractual agreements and most importantly safety
guidelines meant to ensure the wellbeing of our American service men and women,” said
Christopher Grey, spokesperson for the U.S. Army Criminal Investigation Command (CID). “We will
continue to aggressively investigate allegations such as this and work closely with our law
enforcement partners to bring a successful resolution.”“The failure to perform critical maintenance to Department of Defense aircraft poses a grave and
unnecessary threat to our nation’s military readiness,” said Special Agent in Charge
Michael DeFamio of the Naval Criminal Investigative Service (NCIS) Central Field Office. “NCIS and
our federal law enforcement partners remain committed to fully investigating any and all
allegations of contract fraud that compromises the safety of our service members and
wastes American taxpayer money.”“Those certified to perform critical safety aircraft inspections and maintenance work are expected
to adhere to aviation regulations in order to ensure that safety is not compromised,” said Special
Agent-in-Charge Todd Damiani of the U.S. Department of Transportation Office of
Inspector General, Southern Region. “The settlement reached today clearly demonstrates
that we will vigorously pursue those who choose profits over the quality and integrity of the
work they are contracted to perform.”“Improperly maintaining aircraft creates a safety risk that we absolutely will not tolerate,” said
FAA Administrator Steve Dickson. “Today’s agreement makes clear that disregard
for maintenance requirements is unacceptable.”The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Christopher Harvey, a former Airlift employee. The act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. The qui tam case is captioned U.S. ex rel. Harvey v. AAR Corp., et al., No. 3:15-cv-00390 (S.D. Ill.). Mr. Harvey will receive $2,162,160 of the False Claims Act settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Civil
Division’s Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for
the Southern District of Illinois, and the U.S. Attorney’s Office for the Middle District of
Florida, with assistance from USTRANSCOM, the FAA, Air Force OSI, DCIS, NCIS, Army CID, Department
of Transportation Office of the Inspector General, the Defense Contract Audit Agency (DCAA), and
SIGAR.The case was investigated by Trial Attorney Elspeth A. England and Assistant U.S. Attorneys Nathan
D. Stump and Laura J. Barke of the Southern District of Illinois and Randy Harwell of the Middle
District of Florida.The claims resolved by the settlement are allegations only and there has been no determination
of liability.
Kansas Man Sentenced to 21 Years on Federal Drug ChargesRead the Press Release
East St. Louis, Ill. – Lloyd Parker, 32, of Hutchinson, Kansas, was sentenced last week to 262
months in federal prison for conspiring to distribute methamphetamine and cocaine. Parker pled guilty to
the charged conspiracies, as well as distribution and possession of methamphetamine, on March 9,
2021.The crimes took place between 2014 and 2018 and involved the distribution of drugs in East St.
Louis, Illinois; Los Angeles, California; Ontario, California; Houston, Texas; Memphis, Tennessee;
Jackson, Mississippi; and other locations. Overall, the organization was responsible for
the distribution of approximately 240 pounds of methamphetamine and 48 kilograms of cocaine in
the Southern District of Illinois and elsewhere. Parker personally distributed or assisted in the
acquisition of over 60 pounds of methamphetamine and over 5 kilograms of cocaine.As part of his sentence, Parker was ordered to serve a five-year term of supervised release and pay
a $700 fine. Some of Parker’s alleged co-conspirators were charged in the same case, and several are
still awaiting trial.This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF)
investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers,
money launderers, gangs, and transnational criminal organizations that threaten the United States
by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the
strengths of federal, state, and local law enforcement agencies against criminal networks.This case was investigated by the DEA, the IRS, the United States Postal Inspection Service, the
Illinois State Police, and other law enforcement agencies.
New FBI Undercover Operation Snares SixRead the Press Release
FAIRVIEW HEIGHTS, Ill. – Six more men from Missouri and Illinois are facing federal charges for
attempting to engage in sexual activity with minors.Eric E. Hamilton, II, 22, of Maryland Heights, Missouri, is charged with attempted enticement of a
minor and traveling across state lines with the intent to engage in illicit sexual conduct.Godfrey C. Hubbard, 52, of Sorento, Illinois, is charged with attempted enticement of a minor.
Justin Schneider, 33, of Edwardsville, Illinois, is charged with attempted enticement of a minor.
Christopher M. Simmons, 30, of St. Louis, Missouri, is charged with attempted
commercial sex trafficking of a child, attempted enticement of a minor, and traveling across state
lines with the intent to engage in illicit sexual conduct.Michael James Smith, 39, of Barnhart, Missouri, is charged with attempted enticement of a minor.
James Tiroch, 37, of Florissant, Missouri, is charged with attempted enticement of a minor.
The cases are the result of an FBI-led operation involving multiple federal and state law
enforcement agencies aimed at rooting out internet users attempting to meet children for sex. All
six men have been charged by federal complaint. The crimes allegedly occurred in the Southern
District of Illinois.
U.S. Attorney Steven D. Weinhoeft and FBI-Springfield Special Agent in Charge Sean M. Cox made the
announcement.“Children are vulnerable to sexual exploitation across the internet,” said U.S. Attorney Weinhoeft.
“That’s why we are continually updating our investigative techniques and casting a wide net over a
variety of online applications and other internet platforms where children are at risk. To anyone
who would prey on our kids, know this: law enforcement is watching, and you will be caught.”“The FBI works tirelessly in collaboration with our federal, state, and local law enforcement
partners to shut down child predators in hopes of preventing what could be a lifetime of trauma for
victims,” said SAC Cox. “Children tend to be trusting online and will befriend strangers of any age
or gender. Offenders take advantage of this naivety and target children who openly engage others
online or who have a strong social networking presence. Parents and guardians are the
first line of defense in preventing access to their children. Talk to your children, know what
they’re doing online, and if you
suspect suspicious activity, don’t hesitate to report it to the FBI.”All six defendants are accused of using the internet to entice someone under 17 years old to engage
in unlawful sexual activity and traveling to a specific location to engage in sexual acts with a
minor. Some of the defendants allegedly traveled across state lines and/or offered to pay for sex,
leading to additional charges. Several of them allegedly had items with them when they were
arrested, including alcohol, sex toys, condoms, and candy. No actual minors were harmed during the
two-day operation.If convicted, the defendants each face at least 10 years in prison and could receive as much as
life behind bars. Traveling across state lines to have sex with a minor is punishable by up to 30
years in prison. All of the offenses also carry a possible lifetime term of supervised release and
fines of up to
$250,000.Pending trial, all six defendants will be held without bond or released on electronic monitoring
and other strict conditions, as required by federal law for these offenses.A complaint is merely a charge against a defendant. Under the law, a defendant is presumed to be
innocent of the charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.These cases fall under the umbrella 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 led by FBI-Springfield, with assistance from FBI-St. Louis, U.S. Air Force
Office of Special Investigations, the Collinsville Police Department, the Edwardsville
Police Department, the Illinois State Police, the Southern Illinois
University-Edwardsville Police Department, the St. Clair County Sheriff’s Office, the Madison
County States Attorney’s Office, the Alton Police Department, the Monroe County Sheriff’s
Office, the Macoupin County Sheriff’s Office, the Marion County Sheriff’s Office, and the
Carlyle Police Department.The cases will be prosecuted by Assistant United States Attorneys Karelia Rajagopal and Ali Burns.
[An earlier version of this press release inadvertently omitted the Macoupin County Sheriff’s
Office.]
Ex-Mayor of Columbia SentencedRead the Press Release
Columbia, Ill. – The former mayor of Columbia, Illinois, Kevin Hutchinson, was sentenced on Monday to two years’ probation, a $500 fine, and 40 hours of community service for lying to federal investigators about referral commissions he received on city contracts.
Hutchinson, 56, had been charged with one count of making a false statement to the federal Southern Illinois Public Corruption Task Force, also referred to as the Metro-East Public Corruption Task Force. He resigned as mayor of the Monroe County town after his indictment by a federal grand jury in February. Hutchinson pled guilty to the charge in March.
The federal indictment described Hutchinson as a licensed insurance agent who owned a closely held Illinois corporation called BMC Associates, Inc. Unbeknownst to the city council or the city manager, Hutchinson and his corporation received referral commissions from certain insurance contracts the city of Columbia placed with two other companies.
Under the Illinois Public Officer Prohibited Activities law, Hutchinson was prohibited from having a personal financial interest (direct or indirect) in any contract, work, or business of the municipality. Hutchinson failed to disclose his referral commissions on an annual ethics form filed with the county clerk in 2018. The following year, when questioned by an FBI agent and a federal task force officer, he falsely reported that he had no personal financial interest in the city’s insurance contract with one of the two companies.
FBI-Springfield investigated the case.
Assistant U.S. Attorney Norman R. Smith prosecuted the caseEast St. Louis Woman Charged in $800,000 Unemployment Insurance ScamRead the Press Release
EAST ST. LOUIS, Ill. – A federal grand jury in East St. Louis, Illinois, has
returned a 7-count indictment charging Talfanita M. Cobb, 49, of East St. Louis, with
participating in a scheme that fraudulently obtained more than $800,000 in unemployment insurance
benefits from three states. The indictment charges Cobb with conspiracy, mail fraud, and
aggravated identity theft. Some of the money allegedly came from federal pandemic unemployment
compensation funds.
“The COVID-19 pandemic has caused tremendous pain and suffering in our country,” said
U.S. Attorney Steven D. Weinhoeft. “So many Americans have lost their lives, and many thousands
more face severe economic hardship after losing their jobs. For those most affected, the federal
government has approved special funds. It is reprehensible that unscrupulous individuals would take
advantage of these new programs to line their own pockets. These individuals should take note: we
will investigate and prosecute them to the fullest extent of the law.”According to the indictment, Cobb’s co-conspirators used stolen identities to apply for
unemployment insurance benefits in Arizona, Ohio, and Texas. Each application allegedly listed
Cobb’s address in East St. Louis as the address of the applicant. The applications were approved,
and unemployment benefits were issued to the individuals whose names and identities had been
stolen. Some of the funds were allegedly deposited directly into a bank account controlled by Cobb.
After a short time, however, the co-conspirators were able to acquire debit cards, which
the states issued in the names of the identity theft victims and allegedly mailed to Cobb in
East St. Louis.The indictment alleges that, after she received the unemployment debit cards in the mail, Cobb went
to various ATMs in the Metro East and withdrew funds from the cards. She is accused of transferring
some of the funds to a co-conspirator using Bitcoin and keeping a percentage of the money for
herself.Inspector in Charge William Hedrick of the United States Postal Inspection Service’s
Chicago Division stated, “Individuals who use the U.S. Mail to steal public benefit money
designated for citizens suffering unemployment as a result of a pandemic must be held
accountable. The Postal Inspection Service and its law enforcement partners are committed to
investigating and prosecuting those who wish to exploit relief funding for their own personal
benefit.”An indictment is merely a formal charge against a defendant. Under the law, the defendant is
presumed to be innocent of the charges until proven guilty beyond a reasonable doubt
to the
satisfaction of a jury.Behavioral Health Specialist Sentenced to 15 Years in Federal Prison for Enticing a Minor Hopsital Patient for Sex, and Attempting to Obstruct His ProsecutionRead the Press Release
EAST ST. LOUIS, Ill. – Ricardo D. Minor, 40, of Cahokia, Illinois, will be spending 15 years in
federal prison for enticing a minor to have sex with him. Minor was sentenced to 180 months’
imprisonment for enticement of a minor; traveling with intent to have sex with a minor; and
attempting to obstruct his prosecution. Minor will also serve ten years of supervised release after
release from prison.
According to court documents, the crimes occurred between June 14, 2017 and September 3, 2017,
while Minor was working as a Behavioral Health Specialist at a local hospital and the victim was a
patient. Minor admitted that he used his cell phone and internet to contact the victim to have
sex with him on several occasions in homes in Collinsville, Illinois, and Cahokia, Illinois. Minor
was also a driver for Uber and would take the victim with him on trips to have sex. The Court also
heard evidence regarding other allegations of criminal and inappropriate sexual contact by Minor,
including with patients receiving therapy at the same hospital.The obstruction charge was based upon Minor’s activity between August 2017 and November 27, 2017.
During this time, he attempted to obstruct his prosecution by contacting the victim
and witnesses to get them to lie regarding his criminal conduct. One witness was asked to call
the family of the victim to get the family not to pursue charges.The Court in sentencing Minor said that his conduct was “reprehensible” and noted that the 15-year
sentence of imprisonment was needed to deter further criminal conduct.After the sentencing U.S. Attorney Steven D. Weinhoeft said, “This case is so egregious because the
defendant preyed on a vulnerable victim who he knew was receiving behavioral health treatment.” He
cautioned parents that, “The case serves to highlight how important it is for parents to monitor
their children’s internet and cell phone usage because sexual predators rely on their cell phones
to gain access to victims.”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 andabuse. 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 Police Department, the St. Louis County
Police
Department and the FBI. Assistant United States Attorney Angela Scott prosecuted the case.East St. Louis Man Sentenced to 63 Months for Shooting Off Gun at Child's Birthday PartyRead the Press Release
EAST ST. LOUIS, Ill. – An East St. Louis man will spend 5 years in prison for shooting a gun into
the air at a child’s birthday party. Marco B. Orr, 32, has been sentenced to 63 months in federal
prison. Orr pled guilty in April to one count of unlawful firearm possession by a convicted felon.
According to court records and evidence presented at his sentencing hearing, the crime occurred on
May 2, 2020, when Orr was in possession of an AR-15 style rifle at a child’s birthday party in East
St. Louis. Orr was seen on surveillance camera discharging the rifle into the air numerous times.
East St. Louis police later recovered the rifle inside a vehicle. It was loaded with 17 rounds of
ammunition in a high capacity magazine. Orr was prohibited from possessing a gun due to a prior
felony conviction for aggravated battery involving the use of a firearm.As part of his sentence, Orr was also ordered to serve a 3-year term of supervised release.
The case was investigated by the East St. Louis Police Department and the United States Marshals
Service Great Lakes Regional Task Force, with support from ATF and the Illinois State Police.Assistant U.S. Attorney Alexandria Burns prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the
Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to
be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together
to identify the most pressing violent crime problems in the community and develop comprehensive
solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most
violent offenders and partners with locally based prevention and reentry programs for lasting
reductions in crime.
Behavioral Health Specialist Sentenced to 15 Years in Federal Prison for Enticing A Minor Hopsital Patient for Sex, and Attempting to Obstruct His ProsecutionRead the Press Release
EAST ST. LOUIS, Ill. – Ricardo D. Minor, 40, of Cahokia, Illinois, will be spending 15 years in federal prison for enticing a minor to have sex with him. Minor was sentenced to 180 months’ imprisonment for enticement of a minor; traveling with intent to have sex with a minor; and attempting to obstruct his prosecution. Minor will also serve ten years of supervised release after release from prison.
According to court documents, the crimes occurred between June 14, 2017 and September 3, 2017, while Minor was working as a Behavioral Health Specialist at a local hospital and the victim was a patient. Minor admitted that he used his cell phone and internet to contact the victim to have sex with him on several occasions in homes in Collinsville, Illinois, and Cahokia, Illinois. Minor was also a driver for Uber and would take the victim with him on trips to have sex. The Court also heard evidence regarding other allegations of criminal and inappropriate sexual contact by Minor, including with patients receiving therapy at the same hospital.The obstruction charge was based upon Minor’s activity between August 2017 and November 27, 2017. During this time, he attempted to obstruct his prosecution by contacting the victim and witnesses to get them to lie regarding his criminal conduct. One witness was asked to call the family of the victim to get the family not to pursue charges.
The Court in sentencing Minor said that his conduct was “reprehensible” and noted that the 15-year sentence of imprisonment was needed to deter further criminal conduct.
After the sentencing U.S. Attorney Steven D. Weinhoeft said, “This case is so egregious because the defendant preyed on a vulnerable victim who he knew was receiving behavioral health treatment.” He cautioned parents that, “The case serves to highlight how important it is for parents to monitor their children’s internet and cell phone usage because sexual predators rely on their cell phones to gain access to victims.”
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 investigated by the Collinsville Police Department, the St. Louis County Police Department and the FBI. Assistant United States Attorney Angela Scott prosecuted the case.
Metropolis Tax Preparer Sentenced to Prison for Preparing False ReturnsRead the Press Release
Metropolis, Ill. – Shawn Nowlin, 55, of Metropolis, Illinois, has been sentenced to one year in
prison
for assisting in the preparation of false federal tax returns.Court records show that Nowlin was an unauthorized tax preparer and operated under various names,
including Snowlin Tax and Prep, LLC. From 2014 to 2018, he prepared approximately 291 federal tax
returns and falsified wage and withholding amounts and other W-2 information, resulting in a loss
to the United States of nearly $2 million dollars.“Tax preparers who abuse the system for their own gain must be held to account,” said U.S. Attorney
Steven D. Weinhoeft. “Prosecutions like this one send an important message to
fraudulent tax preparers: if you break the rules, you will face the consequences.”IRS Criminal Investigations investigated the case.
Assistant U.S. Attorney Norman R. Smith prosecuted the case.Former Mascoutah Employee Sentenced for Accepting Illegal GratuitiesRead the Press Release
Mascoutah, Ill. – The former water treatment manager for the City of Mascoutah has been sentenced
for accepting illegal gratuities. Richard Lowell Jones, 60, of Troy, Illinois, was sentenced to 3
years’ probation, with the first 6 months on home confinement.According to court documents, Jones served as the city water treatment manager from 2016 to early
2020. During that time, he ordered chemicals and services on behalf of the city and
received a kickback from the vendor in the form of 10% of the total purchases, which he kept for
himself as a personal commission.Public officials are prohibited from using their positions to further their own financial
interests. When those positions are funded in part by federal dollars, the offense can be
prosecuted federally.As part of his sentence, Jones was ordered to complete 40 hours of community service
and pay restitution to the City of Mascoutah in the amount of $27,232.70.
FBI-Springfield and the Mascoutah Police Department investigated the case.Assistant U.S. Attorney Norman R. Smith prosecuted the case.
###Unlawful Gun Possession Leads to 10-Year Sentence for East St. Louis ManRead the Press Release
East St. Louis, Ill. – A convicted felon from the Metro East is headed to prison for possessing a
loaded rifle. Fernandez White, 28, of East St. Louis, Illinois, was sentenced on Thursday to the
statutory maximum term of 10 years in prison. White previously pled guilty to the offense in
February.
According to court documents, the case against White began on Oct. 31, 2020, when a woman notified
the East St. Louis Housing Authority that she had been stopped by a man asking for a ride. When the
woman refused, the man reportedly grew angry, brandished a rifle, and walked away.
Officers approached the man, later identified as White, and took him into custody without incident.
The rifle was recovered and determined to be stolen. It was loaded with 26 rounds of ammunition.At the sentencing hearing, the district court heard evidence that at the time of the offense White
was on probation for robbery and out on bond for three separate felony offenses. In
fact, White was wearing an electronic location monitor on his ankle when he was arrested.The case was investigated by the Public Safety Enforcement Group (PSEG), the East St. Louis Police
Department, the East St. Louis Housing Authority Police, and the ATF. PSEG is a newly formed
Illinois State Police unit embedded in and working in direct partnership with the East St. Louis
Police Department.Assistant U.S. Attorney Laura Reppert prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of
the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program
proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders
work together to identify the most pressing violent crime problems in the community and develop
comprehensive solutions to address them. As part of this strategy, PSN focuses
enforcement efforts on the most violent offenders a d partners with locally based
prevention and reentry programs for lasting
reductions in crime.String of Armed Robberies Leads to Decades in Prison for Nebraska PairRead the Press Release
Fairview Heights, Ill. – Two Nebraska men were sentenced this week to lengthy prison terms for
committing a series of armed robberies in Effingham, Illinois, and the Metro East in April 2017.
Allen McCray, 23, and Victor Linton, 27, of Omaha, Nebraska, appeared in federal district court in
the Southern District of Illinois this week and were sentenced to 26 years and 24 years,
respectively.According to court documents, McCray, Linton, and a third man – Brandon D. English, Jr., 21 – stole
a Hyundai Santa Fe out of a Nebraska driveway and went on a week-long, multi-state crime spree. The
first robbery took place on April 13, 2017, in Raytown, Missouri, where they held up
a convenience store. Receipts recovered later from the Santa Fe show they used the proceeds from
the robbery to make cash purchases at Dollar General, Rally House, Foot Locker, and TJ Maxx
locations in the Kansas City metropolitan area.Two nights later, the trio covered their hair and faces and entered a Moto Mart in O’Fallon,
Illinois, where English put a gun to the cashier’s head and demanded money. They also struck the
cashier with her own purse before taking money out of her cash register and leaving. Less than an
hour later, the men used similar methods to rob a Circle K in Troy, Illinois, and a Casey’s General
Store in Maryville.After purchasing ammunition and attempting to purchase another gun, the three robbers left the
Metro East, driving first to the Chicago area and from there to Indianapolis. They returned to
Illinois on April 19, 2017, where McCray and Linton stopped in a Prime Sole shoe store in
Effingham. When they tried to take merchandise without paying, a store employee confronted them.
McCray pulled out a gun and fired a shot at the clerk. The two men then fled the scene with the
stolen items.McCray and Linton eventually abandoned the Santa Fe in Booneville, Missouri, when they missed the
turn into the Break Time gas station just after midnight on April 21, 2017. The men spotted a truck
in the parking lot and fired six shots into the vehicle, striking the driver four times.
Eventually, they stole another vehicle and led law enforcement on a chase through Lafayette County,
Missouri. Spikes were used to stop the vehicle, and the pair were taken into custody.All three defendants entered guilty pleas to conspiracy, robbery (three counts), and brandishing a
firearm during a crime of violence. McCray and Linton also pled guilty to a fourth robbery count
and to discharging a firearm during a crime of violence.
English was sentenced in December 2018 to 20 years in prison.In addition to their terms of imprisonment, McCray and Linton will both serve 5 years of supervised
release and pay $793.51 in restitution.The FBI led the investigation, with assistance from state and local law enforcement
agencies, including the O’Fallon Police Department, the Maryville Police Department, the
Troy Police
Department, Illinois State Police, and the Missouri Highway Patrol.Failed Armed Robery Leads to 20-Year Sentence for Nebraska ManRead the Press Release
Fairview Heights, Ill. – An Omaha, Nebraska man pled guilty and was sentenced yesterday to 239
months in prison for attempting to rob a Walgreens in Swansea, Illinois.According to court documents, on Sept. 15, 2019, Christopher Easterling, 23, entered the Walgreens
located at 2532 N. Illinois Street, approached the cashier, brandished a firearm, and said “let’s
get this going, babe.” The cashier immediately ran away. After stepping behind the counter and
briefly surveying the scene, Easterling left the store without taking anything. He was apprehended
minutes later by the Swansea Police Department.Easterling pled guilty to a three-count indictment charging him with attempted armed robbery of the
Walgreens, brandishing a firearm during the crime, and unlawful gun possession by a convicted
felon.In handing down the nearly 20-year sentence, Chief U.S. District Judge Nancy J. Rosenstengel noted
as aggravating factors that Easterling had committed the offense while on parole for another
attempted robbery in Nebraska in 2016, and that he has another robbery conviction from Nebraska in
2014.Upon his release from prison, Easterling will serve 5 years on supervised release. The ATF and the
Swansea Police Department investigated the case.
Assistant U.S. Attorney Laura Reppert prosecuted the case.Belleville Man Indicted for Producing Child PornographyRead the Press Release
EAST ST. LOUIS, Ill. – A St. Clair County man is under federal indictment on multiple charges involving producing and distributing sexually explicit images of minors. Zachary Dennert, 19, of Belleville, Illinois, is accused of coercing two minors, including one under the age of 12 years old, to produce visual depictions of sexually explicit conduct. The offenses occurred between January and August 2020.
The four-count federal indictment further alleges that Dennert transported images of a third minor victim in August 2020 and distributed an image of child pornography over the internet in September 2020.On May 26, 2021, Dennert appeared before United States Magistrate Judge Mark A. Beatty and entered
a not guilty plea. He is being held in custody pending a detention hearing next week.Each count of producing child pornography is punishable by at least 15 years and up to 30 years in
prison. For the other charges, Dennert faces a possible penalty of 5-20 years’ imprisonment. All
four counts are also punishable by a fine of up to $250,000.An indictment is merely an allegation and all defendants are presumed innocent until proven guilty
beyond a reasonable doubt in a court of law.The case is being investigated by O’Fallon Police Department and United States Secret Service.
Assistant U.S. Attorney Alexandria Burns is prosecuting the case.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.”
St. Louis Man Sentenced for Attempting to Purchase CocaineRead the Press Release
East St. Louis, Ill. – A St. Louis man is heading to prison after arranging to purchase a kilogram
of cocaine. Ifiok J. Equere, 54, appeared in federal district court today and was sentenced to 70
months in prison for attempting to possess with the intent to distribute 500 grams or more of
cocaine. Equere pled guilty to the charge last November.
The offense occurred on March 15, 2019. According to court documents, Equere arranged to purchase
cocaine from a confidential source working at the direction of law enforcement. Equere was
operating as a middleman for a third-party distributor and agreed to meet the source at a
predetermined location in Madison County, Illinois. Equere agreed to pay $27,800 for a kilogram of
cocaine.While in route to make the purchase, Equere and the distributor were pulled over on I-270 in
Madison County. Officers searched the car and found $27,800 in the glove compartment. Equere was
set to receive $500 as payment for setting up the transaction.As part of his sentence, Equere was ordered to forfeit his interest in the $27,800 seized from his
car and pay a $200 fine. Upon his release from prison, Equere will serve a 4-year term of
supervised release.This cas was investigated by the DEA and is being prosecuted by Assistant U.S. Attorney Daniel T.
Kapsak.
Second Man Sentenced to Prison in Traveling Bank FraudRead the Press Release
BENTON, Ill. – Johnny J. Collado, 30, of Bronx, New York, was sentenced today to 28 months in
federal prison and 2 years of court supervision after his release. In January, Collado pled guilty
to conspiracy to commit bank fraud and aggravated identity theft. His co-defendant, Elvin
Lugo-Cales, was sentenced to 51 months in prison on May 6.On March 2, 2020, Collado and Lugo-Cales flew from New York to St. Louis for the sole purpose of
defrauding banks using stolen identities. They were paid members of a criminal organization based
in New York. Collado was the driver and coordinated the scheme through text messages with a
co-conspirator in New York. Lugo- Cales was known in the scheme as a “soldier” – a person willing
to travel to a new city, walk into banks, and conduct fraudulent transactions face-to-face with
bank tellers using fake IDs and counterfeit checks.On March 5, 2020, Collado drove Lugo-Cales in a rental car to a US Bank location in Edwardsville,
Illinois. Lugo-Cales went inside the bank while Collado waited in the car. Lugo-Cales walked up to
a bank teller and presented a counterfeit check in the amount of $3,650.00 made payable
to an identity theft victim from Colorado. The check had a forged endorsement and the victim’s
social security number written on the back. Lugo-Cales also presented a false U.S. passport card
bearing Lugo-Cales’ photograph and the name of the victim. He then asked the bank teller to cash
the check.The bank teller recalled an internal e-mail she had received warning branches about a man traveling
around the St. Louis area attempting to cash counterfeit checks. Seeing that Lugo-Cales fit the
description of the suspect, she notified her bank manager and stalled the transaction while the
bank manager called the police.Lugo-Cales grew nervous and demanded the bank teller return his check and passport card. When the
teller refused, he left the bank and drove away with Collado, leaving behind the counterfeit check
and passport card with his picture on it. The two men were pulled over and arrested nearby.Police found numerous items concealed under Collado’s clothing, including over $25,000 in cash,
multiple counterfeit IDs, counterfeit credit cards, and 19 blank counterfeit checks. A subsequent
search of Collado’s cell phone revealed that he had traveled to at least two other cities to
conduct the same scam with the names and banking information of at least 45 identity theft victims.During the sentencing hearing, United States District Judge Staci M. Yandle remarked that “identity
theft is a big problem that has severe and lasting consequences” for victims.The investigation was conducted by the Edwardsville Police Department and United States Secret
Service. The case is being prosecuted by Assistant United States Attorney Luke J. Weissler.Collinsville Man Pleads Guilty to Selling MethamphetamineRead the Press Release
East St. Louis, Ill. – A Collinsville man pled guilty today to a Federal Grand Jury Indictment
charging him with distributing methamphetamine in East St. Louis, Illinois.According to plea documents filed in United States District Court, Deonta J. Thomas, of
Collinsville, Illinois, sold 442 grams of methamphetamine during a Drug Enforcement Administration
undercover operation in East St. Louis, Illinois.Thomas is scheduled to be sentenced in United States District Court on August 18,
2021. At sentencing, Thomas faces a period of incarceration from 10 years to life imprisonment.
In addition, Thomas faces 5 years of supervised release following release from prison and could be
fined up to $10,000,000.The case was investigated by the Drug Enforcement Administration and is being
prosecuted by Assistant United States Attorney Daniel T. Kapsak.Troy Businessman Pleads Guilty to Payroll Tax FraudeRead the Press Release
TROY, Ill. – A Troy, Illinois businessman has entered a guilty plea on a charge that he willfully
failed to pay millions in federal payroll taxes. Gary Hunsche, 54, admitted in federal court today
that he committed the offense while serving as the owner-operator of a Troy-based staffing company
called Unique Personnel Consultants.
“Business owners have a responsibility to withhold federal income taxes for their employees and
then remit those taxes to the Internal Revenue Service,” said David Talcott, Acting Special Agent
in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. “Investigations
of employment tax fraud is one of the priorities for IRS CI special agents, and those
individuals who cheat their employees and other honest taxpayers will be investigated and
prosecuted to the fullest extent of the law.”According to court records, from 2014-2016, Hunsche properly withheld over $8 million in federal
taxes from the paychecks of roughly 3,000 to 5,000 employees, most of whom were hired out to
clients as temporary workers. But rather than paying the full amount to the IRS, Hunsche kept over
$4 million of it for himself. As part of his plea, Hunsche acknowledged using a portion of the
unpaid taxes on his own residence, including landscaping work, a barn with a full-size indoor
basketball court, and partial construction of a new home.Hunsche is scheduled to be sentenced on Aug. 17, 2021 and faces up to five years in prison. United
States District Judge Staci M. Yandle will determine the sentence after considering the U.S.
Sentencing Guidelines and other statutory factors.IRS Criminal Investigation agents conducted the investigation.
Assistant U.S. Attorneys Norman R. Smith and Luke Weissler are prosecuting the case.
If you suspect or know of an individual or company that is not complying with the tax laws, please
contact the local IRS Criminal Investigation Office at (618) 622-2160 or visit this website:
https://www.irs.gov/individuals/how-do-you-report-suspected-tax-fraud-activity.U.S. Attorney Weinhoeft Observes National Police WeekRead the Press Release
FAIRVIEW HEIGHTS, Ill. – U.S. Attorney Steven D. Weinhoeft joined today with federal officials
across the Department of Justice to recognize the service and sacrifice of all federal, state,
local, and Tribal law enforcement officers, in honor of National Police Week.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement
from around the country, recognizing their hard work, dedication, loyalty, and commitment to
keeping our communities safe. This year, the COVID-19 pandemic has highlighted the courage of our
law enforcement officers and the devotion to the communities they have sworn to serve.“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in
service to our nation,” said Attorney General Merrick Garland. “I am constantly inspired by the
extraordinary courage and dedication with which members of law enforcement act each day, putting
their lives on the line to make our communities safer. To members of law enforcement and your
families: we know that not a single day, nor a single week, is enough to recognize your service and
sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and
eternal gratitude.”“Protecting and serving our communities has never been more difficult, more demanding, or more
dangerous than it is today,” said U.S. Attorney Weinhoeft. “In the past year, we have seen so many
brave and selfless officers put themselves in harm’s way to ensure the safety of others. We know
most stories of police heroism go untold. This week is a great opportunity to say thank you to the
unsung heroes of our community.”In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and
National Police Week, to remember and honor law enforcement officers for their service and
sacrifices. This year, the week falls from Sunday, May 9, through Saturday, May 15, 2021. Peace
Officers Memorial Day is always observed on May 15 and specifically honors law enforcement officers
killed or disabled in the line of duty.In 2020, 295 law enforcement officers were killed in the line of duty. According to the FBI, 46
officers died as a result of felonious acts, and 47 died in accidents. These and other statistics
can be found on FBI’s Crime Data Explorer website. Based on data analyzed by the National Law
Enforcement Officer Memorial Fund (NLEOMF), 90 percent of the remaining 2020 deaths were
attributable to COVID-19.We are grateful that none of the reported fatalities occurred here in the Southern District of
Illinois. We still remember and honor the life of Illinois State Trooper Nicholas Hopkins, who was
shot and killed on Aug. 23, 2019, while attempting to execute a search warrant in East St. Louis.
He was just 33 years old.
In 2021, the names of 394 officers killed in the line of duty were added to the National Law
Enforcement Officers Memorial in Washington, DC. The list includes the 295 officers who were killed
during 2020, plus 99 officers who died in previous years but whose stories of sacrifice were only
recently discovered. The names of all 394 fallen officers will be read on Thursday, May 13, 2021,
during a virtual candlelight vigil, which will be livestreamed to the public at 8:00 p.m. EDT at
www.youtube.com/user/TheNLEOMF.A complete schedule of virtual Police Week events is listed on NLEOMF’s Police Week Flyer.
Due to ongoing COVID-19 concerns, all in-person Police Week events originally scheduled for May
have been rescheduled to Oct. 13-17, 2021. To learn more about National Police Week in-person
events scheduled for October, including an in-person candlelight vigil scheduled for Oct. 14, 2021,
please visit www.policeweek.org.
###St. Louis Drug Dealer Sentenced to PrisonRead the Press Release
EAST ST. LOUIS, Ill. – A St. Louis man pled guilty and was sentenced yesterday to 70 months in
prison for his role in a conspiracy to distribute heroin, fentanyl, and cocaine.According to court documents, Orlando Goss, 46, was a supplier of heroin, fentanyl, and cocaine for
distributors in the East St. Louis area. Goss was charged with knowingly participating in the
conspiracy and with distributing fentanyl disguised as heroin.Goss’s three co-defendants had already been sentenced. Ricardo Overton, 44, formerly of Cahokia,
Illinois, was sentenced in February 2020 to 100 months in prison. Jodi Prater, 38, of Mt. Vernon,
Illinois, was sentenced last July to 24 months in prison. The third co-defendant, Amy Ring, 36, of
Belleville, Illinois, was sentenced last October to a prison term of 41 months.When his prison term is finished, Goss will serve four years on supervised release.
The Drug Enforcement Administration and the Internal Revenue Service investigated this case. This
prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.
OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money
launderers, gangs, and transnational criminal organizations that threaten the United States by
using a prosecutor- led, intelligence-driven, multi-agency approach that leverages the strengths of
federal, state, and local law enforcement agencies against criminal networks.
The case was prosecuted by Assistant U.S. Attorney Amanda Fischer.Florida Man Sentenced to Prison After Traveling to Edwardsville to Cash Counterfeit Checks Using Stolen IdentitiesRead the Press Release
BENTON, Ill. – Elvin Lugo-Cales, 47, of Orlando, Florida, was sentenced today to 51 months in
federal prison and 3 years of court supervision after his release. In January, Lugo-Cales pled
guilty to conspiracy to commit bank fraud, use of a false passport, and aggravated identity theft.
On March 2, 2020, Lugo-Cales and his co-defendant, Johnny Collado, flew from New York to St. Louis
for the sole purpose of defrauding banks using stolen identities. They were paid members of a
criminal organization based in New York. Collado was the driver and coordinated the scheme through
text messages with a co-conspirator in New York. Lugo-Cales was known in the scheme as a “soldier”
– a person willing to travel to a new city, walk into banks, and conduct fraudulent transactions
face- to-face with bank tellers using fake IDs and counterfeit checks.On March 5, 2020, Collado drove Lugo-Cales in a rental car to a US Bank location in Edwardsville,
Illinois. Lugo-Cales went inside the bank while Collado waited in the car. Lugo-Cales walked up to
a bank teller and presented a counterfeit check in the amount of $3,650.00 made payable to an
identity theft victim from Colorado. The check had a forged endorsement and the victim’s social
security number written on the back. Lugo-Cales also presented a false U.S. passport card bearing
Lugo-Cales’ photograph and the name of the victim. He then asked the bank teller to cash the check.The bank teller recalled an internal e-mail she had received warning branches about a man traveling
around the St. Louis area attempting to cash counterfeit checks. Seeing that Lugo-Cales
fit the description of the suspect, she notified her bank manager and stalled the transaction
while the bank manager called the police.Lugo-Cales grew nervous and demanded the bank teller return his check and passport card. When the
teller refused, he left the bank and drove away with Collado, leaving behind the counterfeit check
and passport card with his picture on it. The two men were pulled over and arrested nearby.Lugo-Cales had over $1,500 cash in his pocket at the time of his arrest. Collado had numerous items
concealed near his crotch, including over $25,000 in cash, multiple counterfeit IDs, counterfeit
credit cards, and 19 blank counterfeit checks.During the sentencing hearing, United States District Judge Staci M. Yandle remarked that identity
theft is a “very serious offense” that “destroys people’s lives.Former Manager Pleads Guilty to Defrauding Mascoutah Trucking Company Out of More Than $600,000Read the Press Release
EAST ST. LOUIS, Ill. – This morning, Timothy P. Mayer, 41, of Waterloo, Illinois, appeared in
federal court in East St. Louis and pled guilty to defrauding his former employer, Jung Truck
Service (“Jung Truck”) of Mascoutah, Illinois, out of more than $600,000.
In addition to operating its own trucks and warehouse facilities, Jung Truck also provides
maintenance services for other trucking companies. Mayer was the manager of Jung Truck’s East St.
Louis location.Beginning in July 2019, Mayer started charging expensive tires to Jung Truck’s accounts at a local
tire supplier. Mayer then sold the tires on the side and pocketed the cash. The value of the tires
that Mayer fraudulently charged to Jung Truck exceeded $590,000. Mayer also stole tires and brakes
from Jung Truck’s inventory and sold those items on the side. Mayer’s scheme lasted until he was
caught in May 2020.Mayer will be sentenced on August 11, 2021, at 1:30 p.m. The mail fraud charge to which Mayer pled
guilty carries a maximum sentence of up to 20 years in prison, a fine of up to $250,000, and a
period of supervised release of up to 3 years. Mayer will also be ordered to pay full restitution
to Jung Truck.The case was investigated by agents from FBI-Springfield. The case is being prosecuted by Assistant
United States Attorney Scott A. Verseman.St. Clair County Man Indicted for Traveling to the Philippines for Sex with a MinorRead the Press Release
EAST ST. LOUIS, Ill. – A St. Clair County man is in federal custody today on a trio of crimes
involving sex with an underage girl in the Philippines. Joseph Albert Fuchs, III, 53, of Cahokia,
Illinois, is accused of knowingly traveling from his home in St. Clair County to the Philippines in
February 2018 for the purpose of engaging in a sexual act with a 14-year old girl.
The three-count indictment was returned by a federal grand jury earlier this month and charges that
Fuchs engaged in illicit sexual conduct with the victim in the Philippines while knowing that she
was under 16 years old. The indictment further alleges that Fuchs enticed the girl to have sex with
him through a series of Facebook chats from Nov. 2, 2017, to July 17, 2019, as well as by sending
her more than $1,000 in PayPal and Xoom payments during that time.On Thursday, Fuchs appeared before United States Magistrate Judge Gilbert C. Sison and entered a
not guilty plea. He is being held in custody pending a detention hearing on Monday at 10:00 a.m.
Trial is currently scheduled to begin on June 15.If convicted of the enticement charge, Fuchs faces at least 10 years and up to life in prison. The
other two charges carry maximum prison terms of 30 years each. All three charges are
also punishable by a fine of up to $250,000.An indictment is merely an allegation and all defendants are presumed innocent until proven guilty
beyond a reasonable doubt in a court of law.The case is being investigated by Homeland Security Investigations-Springfield. Assistant U.S.
Attorneys Alexandria Burns and Nathan D. Stump are prosecuting the case.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.”East St. Louis Man Sentenced to 13 Years for Armed Robbery of Marijuana DealerRead the Press Release
EAST ST. LOUIS, Ill. – An East St. Louis man will be spending over a decade behind bars for
stealing someone’s marijuana at gunpoint. Tyran Jordan, 21, has been sentenced to 157 months in
federal prison on one count of interfering with commerce by robbery and one count of discharging a
firearm during and in relation to a crime of violence. Jordan pled guilty to the charges back in
January.
According to court documents, the crimes occurred on Sept. 30, 2019, when Jordan arranged to sell a
gun to the victim in exchange for marijuana. The deal was supposed to occur in East St. Louis. When
the victim arrived at the designated meeting place, Jordan and two other men brandished their guns
and took the victim’s marijuana and cash by force. As the victim was fleeing the scene, Jordan and
the other men fired their weapons, striking the victim “numerous times.”The court record identifies Jordan’s accomplices as “two unknown individuals.”
In handing down the sentence, United States District Judge Staci M. Yandle noted that the defendant
had not demonstrated any remorse for what he did to the victim. She also explained that a
significant prison sentence was necessary to protect the public and deter Jordan from committing
further crimes.As part of his sentence, Jordan was also ordered to serve a three-year term of supervised release.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of
the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program
proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders
work together to identify the most pressing violent crime problems in the community and develop
comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts
on the most violent offenders and partners with locally based prevention and reentry
programs for lasting reductions in crime.The investigation was conducted by the East St. Louis Police Department and the Bureau of Alcohol,
Tobacco, Firearms & Explosives. The case was prosecuted by Assistant United States
Attorney
Alexandria Burns.Sparta Man Pleads Guilty to Receiving Child PornographyRead the Press Release
Sparta, Ill. – Kory R. Schulein (37), of Sparta, Illinois, pleaded guilty today to knowingly
receiving child pornography over the internet. A federal grand jury returned the single-count
indictment against Schulein last October.
Schulein first came to the attention of law enforcement in 2018 during an FBI investigation of
child pornography on the dark web. Agents were able to track his IP address and executed a federal
search warrant at his home on Oct. 1, 2019.The National Center for Missing and Exploited Children confirmed the identities of children
depicted in over 2,500 images and 100 videos found on Schulein’s laptop computer and two external
hard drives. According to court documents, Schulein downloaded the child pornography from 2016 to
2019.At the conclusion of today’s plea hearing, Schulein was remanded into federal custody pending his
sentencing hearing, which is set for Aug. 11, 2021, at 1:30 p.m. at the federal courthouse in East
St. Louis. He faces 5-20 years in prison on the charge. His sentence will be determined by United
States District Judge Stephen P. McGlynn after consideration of the federal sentencing guidelines
and other statutory factors.The investigation was conducted by FBI-Springfield, with assistance from the United States Marshals
Service.The case is being prosecuted by Assistant U.S. Attorney Nathan D. Stump and Trial Attorneys Jessica
Urban and Alicia Bove with the Justice Department’s Child Exploitation and Obscenity Section.O'Fallon Man Pleads Guilty to PPP Loan FraudRead the Press Release
O’Fallon, Ill. – Jason Spengler (45), of O’Fallon, Illinois, pleaded guilty today to one count of
making a false statement on a federal loan application. According to court documents, Spengler
committed the felony offense last year when he filed for assistance from the Paycheck
Protection Program (“PPP”) without disclosing that his business, Spengler Plumbing Company, was in
bankruptcy.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted in March 2020 to
provide emergency financial assistance to Americans who were suffering the economic effects caused
by the COVID-19 pandemic. One source of relief provided by the CARES Act was the federal PPP loan
program. Administered by the Small Business Administration (SBA), the program provided
loans to help qualifying businesses during the COVID-19 crisis.Debtors in bankruptcy were not eligible for PPP loans. The first question on the loan application
asked, “Is the Applicant ... presently involved in any bankruptcy?” Above this
question, the application explained that the loan would not be approved if the applicant answered
“Yes.”When Spengler applied for a PPP loan last year, Spengler Plumbing was in bankruptcy. But Spengler
checked “No” on the application, falsely certifying to the lender and the SBA that Spengler
Plumbing was not in bankruptcy. Because of this false statement, Spengler Plumbing was awarded a
$487,095 PPP loan in April 2020.As a debtor in bankruptcy, Spengler Plumbing was also required by law to obtain prior authorization
from the bankruptcy court before incurring any new unsecured debt. But Spengler applied for the
government loan without notifying the bankruptcy judge, thereby evading the safeguards put in place
by both the SBA and the bankruptcy court.“Together with U.S. Attorney Steve Weinhoeft and our law enforcement partners, we will continue to
pursue fraud and abuse in bankruptcy cases,” stated Nancy J. Gargula, U.S. Trustee for Region
10. The U.S. Trustee Program is the component of the Justice Department that protects the integrity
of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy
laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Indiana,
and Peoria, Illinois.Sentencing is set for August 18, 2021, at the federal courthouse in East. St. Louis. The charge
carries
a maximum sentence of five years in prison and a fine of up to $250,000.This case was referred to the U.S. Attorney’s Office for prosecution by the U.S. Trustee for Region
10, in collaboration with the Southern District of Illinois Bankruptcy Fraud Working Group.
The investigation was conducted by the Small Business Administration – Office of the Inspector
General. The case is being prosecuted by Assistant United States Attorney Peter T. Reed.Southern Illinois Professor Indicted for Grant FraudRead the Press Release
CARBONDALE, Ill. – A mathematics professor and researcher at Southern Illinois
University – Carbondale (SIUC) is under federal indictment for grant fraud. Mingqing Xiao, 59,
of Makanda, Illinois, is accused of fraudulently obtaining $151,099 in federal grant
money from the National Science Foundation (NSF) by concealing support he was receiving
from an arm of the Chinese government and a Chinese public university. Xiao is charged with
two counts of wire fraud and one count of making a false statement.
The prosecution is part of the Justice Department’s ongoing China Initiative. Led by the
Department’s National Security Division (NSD), the China Initiative is an effort to safeguard
American intellectual property and research programs and counter the multi-faceted threat posed by
the PRC government to U.S. national security.While the Chinese government maintains ambitious strategic goals to dominate certain
global economic sectors, its ability to achieve those goals is hampered by its lack of domestic
innovation. Comments made by Chinese Premier Li Keqiang at a Communist Party gathering in March
2019 underscore this dilemma: “Our capacity for innovation is not strong and our weakness in terms
of core technologies for key fields remains a salient problem.”¹ Given this identified weakness,
China resorts to various forms of economic aggression to achieve its strategic goals, including
hacking, theft, espionage, and recruiting “non-traditional collectors” in academia to acquire U.S.
technologies and intellectual property. The China Initiative works with academia and private
industry to combat the PRC government’s diverse counterintelligence threats.“Again, an American professor stands accused of enabling the Chinese government’s
efforts to corruptly benefit from U.S. research funding by lying about his obligations to, and
support from, an arm of the Chinese government and a Chinese public university,” said John C.
Demers, Assistant Attorney General for National Security. “Honesty and transparency about funding
sources lie at the heart of the scientific research enterprise. They enable U.S. agencies to
distribute scarce grants for scientific research fairly and equitably. And they allow other
researchers to evaluate potential conflicts of interest and conflicts of commitment. When
researchers fall short of fulfilling these core academic values in ways that violate the
law, the Department stands ready to investigate and prosecute.”
1
Source: http://www.china.org.cn/china/NPC_CPPCC_2019/2019-03/16/content_74578930.htm“We know that China exploits American universities to further the aims of the Chinese Communist
Party,” said U.S. Attorney Steven D. Weinhoeft. “That’s one reason why the National
Science Foundation requires applicants to disclose all sources of support, including foreign ties,
as a condition to receive federal grant funding. Prosecutions like this one play a critical role,
not just in protecting American investments in academic research from foreign exploitation,
but also in combating the growing threat that China poses to our national security.”
“The FBI takes seriously its commitment to work with our partners in academia to
protect U.S. research funded grants,” said Sean M. Cox, FBI-Springfield’s Special Agent
in Charge. “This investigation, like so many others, should serve as a reminder that failure to
be truthful and transparent on an application for U.S. funded grants is a violation of the law. In
this case the applicant allegedly failed to disclose his affiliation with China. Individuals who
fail to disclose their affiliation with any foreign nation will be held accountable.”According to the indictment, Xiao has worked in SIUC’s mathematics department since
2000, focusing his research on partial differential equations, control theory, optimization theory,
dynamical systems, and computational science. In that position, Xiao (who is an American citizen)
allegedly applied for and received NSF grant funds for a project set to run from 2019 to 2022
without informing NSF about another, overlapping grant he had already received from the Natural
Science Foundation of Guangdong Province, China. Xiao also allegedly failed to inform NSF that he
was on the payroll of Shenzhen University, a public university in Guangdong Province, and
that he had already committed to teaching and conducting research at Shenzhen University from
2018 to 2023.The indictment further alleges that in March 2019, while his NSF grant proposal was still pending,
Xiao submitted another grant proposal to the Natural Science Foundation of China. According to the
indictment, Xiao allegedly applied for the funds as an employee of Shenzhen University and did not
disclose the new Chinese proposal to NSF. Xiao is charged with falsely certifying to SIUC that his
NSF grant proposal was true, complete, and accurate.Before awarding the grant, NSF questioned Xiao about any current or pending funding
from “worldwide sources,” including specifically whether he held any position outside the United
States or had obtained funding from any non-US funding sources. The indictment accuses Xiao of
falsely reporting to NSF that he had nothing else to disclose.The defendant’s initial court appearance has not yet been scheduled. If convicted, Xiao
faces a maximum penalty of 20 years in prison on each count of wire fraud and 5 years in prison
for making a false statement. All three charges are also punishable by a fine of up to $250,000. A
federal district court judge will determine any sentence after considering the U.S. Sentencing
Guidelines and other statutory factors.FBI-Springfield, the IRS, and the Department of Homeland Security are investigating the
case. Assistant U.S. Attorney Peter T. Reed is prosecuting the case, with assistance
from NSD’s Counterintelligence & Export Section.An indictment is merely an allegation and all defendants are presumed innocent until proven guilty
beyond a reasonable doubt in a court of law.
xiao_indictment.pdf
East St. Louis Caretaker Sentenced to Prison for Stealing Identities of Elderly ClientsRead the Press Release
EAST ST. LOUIS, Ill. – A woman who abused her employment with an in-home health care company and
stole the identities of her elderly clients is heading to prison. Erica S. Rose, 31, of East Saint
Louis, Illinois, was sentenced today to one year and one day in federal prison and two years of
court supervision after her release. Rose pled guilty to conspiracy to commit bank fraud and wire
fraud and aggravated identity theft last November.
In 2018, Rose worked for a company called CareLink and gained access to the homes of her elderly
victims as their hired caretaker. While inside, she stole social security numbers and other
identifying information and passed the stolen information along to her co-defendant,
Ashley McKinney. McKinney allegedly used victims’ funds and identities to withdraw money
from ATMs, deposit fraudulent checks, and even purchase a car online for over $28,000.
There is an outstanding warrant for McKinney’s arrest in this case.As part of her sentence, Rose was ordered to pay $9,864.71 in restitution.
The investigation was conducted by detectives from the Edwardsville Police Department, Belleville
Police Department, Swansea Police Department, and St. Clair County Sheriff’s Office. The case is
being prosecuted by Assistant United States Attorney Luke J. Weissler.Mathematics Professor and University Researcher Indicted for Grant FraudRead the Press Release
Note: A full copy of the indictment can be viewed
here.WASHINGTON – Today, a federal grand jury in Carbondale, Ill. returned an indictment charging a mathematics professor and researcher at Southern Illinois University – Carbondale (SIUC) with two counts of wire fraud and one count of making a false statement.
According to court documents, Mingqing Xiao, 59, of Makanda, Illinois, fraudulently obtained $151,099 in federal grant money from the National Science Foundation (NSF) by concealing support he was receiving from the Chinese government and a Chinese university.
“Again, an American professor stands accused of enabling the Chinese government’s efforts to corruptly benefit from U.S. research funding by lying about his obligations to, and support from, an arm of the Chinese government and a Chinese public university,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division (NSD). “Honesty and transparency about funding sources lie at the heart of the scientific research enterprise. They enable U.S. agencies to distribute scarce grants for scientific research fairly and equitably. And they allow other researchers to evaluate potential conflicts of interest and conflicts of commitment. When researchers fall short of fulfilling these core academic values in ways that violate the law, the Department stand ready to investigate and prosecute.”
“Fraudulently obtaining U.S. taxpayer funding is a slap in the face to the vast majority of university researchers who do the right thing and abide by the rules,” said Alan E. Kohler, Jr., Assistant Director of the FBI’s Counterintelligence Division. “To those individuals who choose to conceal affiliations with foreign universities or foreign governments while applying for U.S. taxpayer-funded grants, the message should be clear: the FBI and its partners are aggressively investigating allegations of grant fraud.”
“The FBI takes seriously its commitment to work with our partners in academia to protect U.S. research funded grants,” said Special Agent in Charge Sean M. Cox of the FBI’s Springfield Field Office. “This investigation, like so many others, should serve as a reminder that failure to be truthful and transparent on an application for U.S. funded grants is a violation of the law. In this case the applicant allegedly failed to disclose his affiliation with China. Individuals who fail to disclose their affiliation with any foreign nation will be held accountable.”
“The charges in this case are very serious,” said U.S. Attorney Steven D. Weinhoeft for the Southern District of Illinois. “University grant fraud allows China to co-opt U.S. research and development at a fraction of the cost. Prosecutions like this one play an important role, not just in protecting American investments in academic research from foreign exploitation, but also in combating the growing threat that China poses to our national security. We will continue to work with our partners at NSD and the FBI on these important cases.”
According to the indictment, Xiao has worked in SIUC’s mathematics department since 2000, focusing his research on partial differential equations, control theory, optimization theory, dynamical systems, and computational science. In that position, Xiao allegedly applied for and received NSF grant funds for a project set to run from 2019 to 2022 without informing NSF about another, overlapping grant he had already received from the Natural Science Foundation of Guangdong Province, China. Xiao also allegedly failed to inform NSF that he was on the payroll of Shenzhen University, a public university in Guangdong Province, and that he had already committed to teaching and conducting research at Shenzhen University from 2018 to 2023.
The indictment further alleges that in March 2019, while his NSF grant proposal was still pending, Xiao submitted another grant proposal to the Natural Science Foundation of China. According to the indictment, Xiao allegedly applied for the funds as an employee of Shenzhen University and did not disclose the new Chinese proposal to NSF. Xiao is charged with falsely certifying to SIUC that his NSF grant proposal was true, complete, and accurate.
Before awarding the grant, NSF questioned Xiao about any current or pending funding from “worldwide sources,” including specifically whether he held any position outside of the United States or had obtained funding from non-U.S. funding sources. The indictment accuses Xiao of falsely reporting to NSF that he had nothing else to disclose.
If convicted, Xiao faces up to 20 years in prison on each count of wire fraud and up to five years in prison for making a false statement. All three charges are also punishable by a fine of up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The investigation was conducted by the FBI, the IRS, and the Department of Homeland Security. Assistant U.S. Attorney Peter T. Reed is prosecuting the case, with assistance from NSD’s Counterintelligence & Export Section.
The prosecution is part of the Justice Department’s ongoing China Initiative. Led by the Department’s National Security Division, the China Initiative is a broad, multi-faceted effort to counter Chinese national security threats and safeguard American intellectual property.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Cahokia Man Heads to Federal Prison for Identity Theft SchemeRead the Press Release
Cahokia, Ill. – Isaac Sanders, age 40, of Cahokia, Illinois, has been sentenced to serve 12 months
and a day in federal prison for conspiracy to commit mail fraud and aggravated identity theft.
Sanders previously pleaded guilty to the charges in December 2020.
Sanders and his co-conspirator, Tamecia Buckley, used the stolen identities and social
security numbers of real people to open utility accounts for electric and gas services at Sanders’
properties. The victims did not live there and did not consent to the scheme. The bills all came to
Sanders’ address, so the victims had no way of knowing the financial damage being wrought in their
names. After bills went unpaid, and services were shut down again, Sanders would simply pay Buckley
to open a new account using a different stolen identity.All told, Sanders stole, used, and discarded the identities of six different people from 2014 to
2017. On one occasion, Sanders called the utility company pretending to be the son of one victim
and falsely claimed the victim was in the hospital.In addition to his term of imprisonment, Sanders was ordered to pay a $1,000 fine and full
restitution in the amount of $5,213.83. His sentence also includes a three-year term of supervised
release. For her roles in this and other fraud-and-identity-theft schemes, Buckley was prosecuted
separately and received a 75-month prison sentence.The investigation was conducted by the United States Postal Inspection Service.
40th Annual National Crime Victims' Rights WeekRead the Press Release
Every April, the Department of Justice leads communities across the Nation in their annual
observance of National Crime Victims’ Rights Week. This year is the event’s 40th anniversary.
Throughout the week, we renew our commitment to serving all victims of crime, acknowledge
significant achievements in victim services and allied professions, and remember crime victims and
survivors. This year’s theme — Support Victims. Build Trust. Engage Communities. — emphasizes the
importance of leveraging community support to help victims of crime.The U.S. Attorney’s Office for the Southern District of Illinois prioritizes victim cases,
especially violent crimes, hate crimes, crimes against the elderly, and crimes against children.
Seeking justice for victims involves extensive coordination, not only with our outstanding
partners in law enforcement, but also with community organizations, care providers, social
services, and victim advocates.“This week we honor all who work tirelessly and compassionately to care for the needs of crime
victims,” said U.S. Attorney Steven D. Weinhoeft. “Their jobs have been especially vital during the
pandemic, as victims have struggled to connect with family, friends, and other support systems. We
also recognize the bravery and sacrifice of all those who serve honorably in law enforcement, who
put themselves at risk every day to prevent others from being victimized. The work they do has
never been more difficult, and we owe them a great debt of gratitude.”Organizations, programs, and individuals across the nation who have provided outstanding service in
support of crime victims will be honored at the 2021 National Crime Victim’s Service Awards
Ceremony, which will be held virtually on April 23, 2021, from 3:00 to 4:30 p.m. eastern time. To
register for the ceremony, please visit https://go.usa.gov/xssdb. Visitors to the website can also
access the 2021 National Crime Victims’ Rights Week Resource Guide, which provides free event
planning ideas, graphics, videos, and more information for participating organizations.St. Louis Man Sentenced to 12 Years in Prison for Enticing Illinois Minor, Traveling to Engage in Illicit Sexual ConductRead the Press Release
Belleville, Ill. – Earlier today, Joseph L. Hughes, a/k/a “Joe King,” 29, of St.
Louis, Missouri, was sentenced to 149 months in prison for enticing a 14-year old girl to engage in
sex and traveling across state lines to have sex with her. Hughes committed the offenses in late
2018 and pled guilty to the three-count federal indictment in October 2020.
According to court filings, Hughes and the minor victim used Facebook Messenger to
communicate. Hughes later traveled from St. Louis to the girl’s home in Belleville, Illinois, to
have sex with her on Nov. 24, 2018, and Dec. 8, 2018. As part of his guilty plea, Hughes admitted
that the victim told him her age right away, and that he knew what he did was against the law.Hughes’s sentence includes a five-year term of supervised release and a $300 fine.
The case was investigated by the FBI, the Belleville Police Department, the St. Clair
County Sheriff’s Department, and the St. Louis County Police Department, with assistance from the
St. Clair County States Attorney’s Office. Assistant United States Attorney Angela Scott
prosecuted the case.Two Southern Illinois Amtrack Stations Part of $2.25 Million Justice Department SettlementRead the Press Release
Patrons of two Amtrak stations in the Southern District of Illinois may be eligible
for compensation as part of a recent Justice Department settlement. On January 29, federal
authorities announced that a $2.25 million fund had been established to compensate travelers with a
mobility disability who were harmed physically or emotionally because of accessibility issues at 78
Amtrak stations nationwide between 2013 and 2020. Included in the settlement were Amtrak stations
in Centralia and Effingham, Illinois. According to Justice Department officials, those stations did
not meet the accessibility requirements of the Americans with Disabilities Act (ADA).
The stations in Centralia and Effingham were on a long list of stations where passenger platforms
were not readily accessible to individuals with disabilities. Although the specific issues were not
disclosed, examples include steep slopes, no detectable warnings at the platform edges, and ground
surfaces that were not stable, firm, and slip resistant. The Effingham station was also cited for
not having accessible bathrooms. Some of the violations at other stations covered in the settlement
include inaccessible parking, lack of directional signs, high ticket counters, and
deteriorated platforms.In total, nine Amtrak stations in Illinois were cited by the Justice Department as non-ADA
compliant, more than any other state. Aside from the stations in Centralia and Effingham, the
others were located in Gilman, Homewood, Mattoon, Plano, Princeton, Rantoul, and Summit.
Three Missouri stations were also included in the settlement: Kirkwood, La Plata, and Poplar Bluff.To be eligible for monetary compensation, travelers must have a mobility disability and must have
been harmed due to inaccessibility issues at one or more of the affected stations from July 23,
2013 to December 2, 2020. All claims must be submitted no later than May 29, 2021. Other
restrictions may apply. Questions about the claims process should be directed to the
settlement administrator by any of the following methods:• Visit AmtrakDisabilitySettlement.com
• Email your name, address, and phone number to [email protected]
• Call the Fund Administrator at (888) 334-6165 or TTY: (866) 411-6976.
Help is available for those who are unable to complete the claim form due to a disability.As part of the settlement agreement, Amtrak has committed to make its intercity rail
stations accessible, prioritizing stations with the most significant barriers to access. Over the
next 10 years, Amtrak will design at least 135 stations to be accessible, complete construction at
90 of those stations, and have at least 45 more under construction. Amtrak will also train staff on
ADA requirements and implement an agreed-upon process for accepting and handling ADA complaints. In
demonstrating its commitment, Amtrak has already established an Office of the Vice President of
Stations, Properties & Accessibility to coordinate its compliance with the ADA.
The settlement agreement with Amtrak was negotiated as part of a lawsuit filed by the Disability
Rights Section of the Justice Department’s Civil Rights Division. A copy of the
complaint can be found by visiting www.ada.gov/amtrak_comp.html. The settlement agreement is also
available online at AmtrakDisabilitySettlement.com. For more information on the Civil Rights
Division, visit www.justice.gov/crt. For more information on the ADA, please call the toll-free
ADA Information Line at 800-514-0301 (TTY 800-514-0383) or visit www.ada.gov.Three Metro East Men Facing Federal Bank Fraud ChargesRead the Press Release
East St. Louis, Ill. – Lagardo Wright, 20, and Aijeigh McShan, 19, of Fairview Heights, Illinois,
and a third man, Cedric Sheard, Jr., 20, of Belleville, Illinois, have been charged in a six- count
federal indictment with bank fraud and conspiracy to commit bank fraud. Wright and
McShan were arraigned earlier today following their arrest in California last month.
Sheard’s arraignment was previously held on February 25, 2021.
According to the indictment, Wright, McShan, and Sheard obtained bank account
information, including online usernames, passwords, and PIN numbers, by soliciting individuals on
social media and elsewhere to provide their personal banking information in exchange for the
promise of money. Wright allegedly accessed the individuals’ bank accounts to check their account
balances and withdrawal limits. The indictment alleges that Wright, McShan, and Sheard, would then
deposit counterfeit checks into the individuals’ accounts and quickly withdraw funds before the
banks could determine the checks were counterfeit.Wright and McShan are scheduled for trial on June 7, 2021, at 9:00 a.m. Sheard’s trial is set for
July 26, 2021, at 9:00 a.m. Both trials will be held at the federal courthouse in East St. Louis
before United States District Judge David W. Dugan. If convicted, each count of the indictment
carries a maximum sentence of 30 years in prison.An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to
be innocent of a charge until proven guilty beyond a reasonable doubt to the
satisfaction of a jury.The investigation was conducted by the United States Postal Inspection Service. The case
is being prosecuted by Assistant United States Attorney Luke J. Weissler.Southern Illinois Mail Thief Sentenced to PrisonRead the Press Release
A man who repeatedly stole mail from mailboxes in Southern Illinois is heading to prison. Seth W.
Sorensen, 45, was sentenced today to one year and one day in prison and two years of court
supervision after his release. Last December, Sorensen pled guilty in federal court to one count of
mail theft and two counts of possession of stolen mail.
The federal charges stemmed from three separate incidents that occurred over a four-day stretch in
February 2019. On Feb. 23, 2019, a person in Okawville, Illinois watched as Sorensen drove mailbox
to mailbox stealing mail from houses on M&M Lane and R&R Drive. The person immediately reported the
incident to the Okawville Police Department, who quickly identified Sorensen as the primary suspect
and discovered that he had an active warrant for burglary out of Troy, Illinois.On Feb. 24, 2019, Okawville police went to an apartment where Sorensen was staying and arrested him
on the warrant. During the arrest, officers found a trash bag in Sorensen’s possession that
contained stolen mail belonging to 26 different victims at 19 different residences in Southern
Illinois. Sorensen spent the remainder of February 24 and February 25 in the Madison County Jail.On Feb. 26, 2019, Sorensen was released from jail. He walked from the jail to an apartment complex
on South Morrison Avenue in Collinsville, Illinois, where a resident noticed him peeking into
mailboxes. The resident eventually confronted Sorensen and grabbed a pile of stolen mail from his
hands. The mail was addressed to multiple people in different units within the complex. At least
one of the letters was addressed to the resident herself. After the confrontation, Sorensen fled
the area on foot. The resident called the Collinsville Police Department.A short time later, Collinsville police stopped Sorensen as he was walking. Sorensen
identified himself by showing them the discharge paperwork he had received from the Madison County
Jail earlier that morning. Sorensen initially denied looking through any mailboxes at the apartment
complex or having any stolen mail in his possession, but the officers noticed mail
hanging out of his pocket addressed to individuals on South Chestnut Street – the
very street Sorensen was walking down when he was stopped. When asked about the mail in his
pocket, Sorensen said he found the mail in the street and intended to return it but did not know
where the individuals lived. Collinsville police reminded Sorensen that letters have
addresses on them.
Sorensen was arrested that evening after a short investigation.This case was investigated by the Okawville Police Department, the Collinsville Police Department,
and the United States Postal Inspection Service. The case was prosecuted by Assistant
United States Attorney Luke J. Weissler.Missouri Couple Charged with Bankruptcy Fraud and Evading Bank Reporting RequirementsRead the Press Release
A Camden County, Missouri couple are facing bankruptcy fraud and structuring charges arising out of
a scheme to defraud the federal bankruptcy court for the Southern District of Illinois. Kevin and
Catharine Kahrig are named in a four-count indictment that accuses the pair of
bankruptcy fraud and structuring. The indictment also charges Kevin Kahrig, age 47, with making a
long list of false statements and omissions to the bankruptcy court.
According to the indictment, from 2016-2018, the Kahrigs launched a scheme to conceal Kevin’s
assets from his creditors and fraudulently transfer at least $550,000 in assets to his wife,
Catharine, age 34. Kevin and Catharine allegedly deposited over $160,000 in cash and checks
belonging to Kevin into Catharine’s bank account. Catharine allegedly used the commingled funds in
her account to purchase property and selectively pay Kevin’s expenses, while Kevin emptied and
closed his own bank accounts, cashing over $200,000 in checks rather than depositing them with the
bank. The Kahrigs also allegedly structured over $100,000 in deposits in an attempt to evade bank
reporting requirements.The indictment further alleges that Kevin instructed his business customers to make out payments to
Catharine and other family members rather than to himself or his business. The couple is also
accused of selling Kevin’s boat and using the $395,000 check to pay off Catharine’s
mortgage rather than pay Kevin’s debts.Kevin Kahrig filed for bankruptcy in May 2018. The indictment charges him with making numerous
false statements and omissions in his bankruptcy filings and subsequent statements under
oath to conceal the scheme to defraud.“Abuse of the bankruptcy system by concealing assets for personal gain threatens the
integrity of the bankruptcy system,” stated Nancy J. Gargula, United States Trustee for Southern
Illinois, Central Illinois and Indiana (Region 10). “I am gratified by the actions taken by United
States Attorney Wei hoeft and our law enforcement partners to prosecute those who engage in
fraudulent conduct.”Each charge carries a maximum sentence of five years imprisonment and a fine of up to
$250,000. The Kahrigs’ initial appearances and arraignments were held earlier today, and both
defendants entered a plea of not guilty. Trial is set for May 19, 2021, before United States
District Judge Stephen P. McGlynn.An indictment is merely a formal charge against a defendant. Under the law, the
defendants are presumed to be innocent of the charges until proven guilty beyond a reasonable doubt
to the satisfaction of a jury.The investigation was conducted by the FBI, in collaboration with the Southern District of Illinois
Bankruptcy Fraud Working Group coordinated by the U.S. Trustee for Region 10, after referral by the
U.S. Trustee. The U.S. Trustee Program is the component of the Justice Department that protects the
integrity of the bankruptcy system by overseeing case administration and litigating to enforce the
bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in Peoria,
Illinois, and South Bend, Indiana. The case is being prosecuted by Assistant United
States Attorney Peter T. Reed.Former Williamson County Mail Carrier Sentenced for Stealing Rebate ChecksRead the Press Release
Brittany Freeman, 27, of Johnston City, Illinois (Williamson County), was sentenced this week to
three years’ probation and a $100 fine and was ordered to pay $704.10 in restitution to her
victims. Freeman had earlier pled guilty to theft of mail by a postal service employee.
In February and March, 2020, while working as a mail carrier, Freeman stole over $700 worth of
rebate checks sent by Menard’s to customers along her routes. Surveillance cameras at a nearby
Menard’s store captured Freeman using the rebate checks for herself soon after stealing them.
“Any tampering with the U.S. mail system is taken seriously, particularly when postal
service employees abuse their position of trust,” U.S. Attorney Steven D. Weinhoeft said.The case was investigated by the United States Postal Service, Office of the Inspector
General. The case was prosecuted by Assistant United States Attorney Peter T. Reed.East Alton Woman Charged with Stealing Disabled Daughter's Social Security FundsRead the Press Release
A federal grand jury in East St. Louis, Illinois, has returned a 21-count indictment charging
Melissa D. Wasylak, 48, of East Alton, with stealing Supplemental Security Income (“SSI”) funds
that were intended for her disabled daughter. The indictment also charges Wasylak with wire fraud
and making false statements on forms submitted to the Social Security Administration (“SSA”).
The SSA administers the SSI program, which provides a minimum level of income to aged, blind, and
disabled individuals with limited resources. For disabled children, SSI benefits are paid to a
representative payee, who is responsible for handling the funds and reporting to the SSA. Federal
law requires that all SSI funds must be used for the benefit of the disabled child.Wasylak applied for her disabled daughter to receive SSI benefits and was appointed as her
daughter’s representative payee. According to the indictment, in 2008, Wasylak’s daughter stopped
living with her and went to live with Wasylak’s ex-husband. Despite this fact, Wasylak continued to
receive her daughter’s SSI funds. The indictment charges that Wasylak did not use those funds for
her daughter’s expenses, but instead used the SSI money to pay her own personal expenses. This
allegedly continued until the situation was reported to the SSA in May of 2019.Wire fraud is punishable by up to 20 years in prison. The maximum punishment for theft of
government funds is 10 years’ imprisonment. Making a false statement on a Social Security form
carries a five-year statutory maximum term of imprisonment. Each of the charges comes with a
possible fine of up to $250,000, and Wasylak could also be ordered to pay restitution.An indictment is merely a formal charge against a defendant. Under the law, the
defendant is presumed to be innocent of the charges until proven guilty beyond a reasonable doubt
to the satisfaction of a jury.Wasylak is scheduled to be arraigned by United States Magistrate Judge Gilbert C. Sison on Monday,
April 5, 2021, at 10:00 a.m., at the federal courthouse in East St. Louis.The investigation was conducted by the SSA – Office of the Inspector General. The case
is being prosecuted by Assistant United States Attorney Scott A. Verseman.Former Scott AFB Airman Sentenced to Prison for Distributing Child PornographyRead the Press Release
East St. Louis, Ill. – Jace Faugno, 25, of Paducah, Kentucky, has been sentenced to 78 months in
prison for two counts of distributing child pornography. Chief United States District Judge Nancy
J. Rosenstengel handed down the sentence, which includes 5 years of supervised release.
Faugno first came to the attention of law enforcement in September 2018, when a joint undercover
investigation by the Air Force Office of Special Investigations (OSI) and the FBI
caught him sending child pornography over Kik, a popular cell phone messaging application. At the
time, Faugno was living in St. Louis, Missouri, and serving as an active duty Senior Airman at
Scott Air Force Base in St. Clair County, Illinois.During chat discussions with two different undercover agents, Faugno sent them each a video
depicting a prepubescent girl being raped by an adult male. Faugno also solicited the agents to
send him videos of child pornography and expressed an interest in meeting up with one agent to
engage in sex acts with the undercover agent’s fictitious prepubescent daughter. Faugno ended his
contact with the agents when they refused to provide him with videos of child pornography.Faugno pled guilty to the charges in 2019. At his sentencing hearing, Faugno argued that his chats
were merely a fantasy that he never intended to act upon. Judge Rosenstengel observed that while
only Faugno was aware of his true intentions, “fantasy can turn into reality.”The case was investigated by Air Force OSI and FBI Springfield and was prosecuted by
Assistant United States Attorney Christopher Hoell.Former Federal Prison Official and Factory manager at USP-Marion Sentenced to PrisonRead the Press Release
Benton, Ill. – Shawn E. Whitecotton, 50, of Herrin, Illinois, was sentenced to 16 months
confinement today, consisting of 8 months in federal prison and 8 months of home confinement after
his release. At his sentencing, United States District Court Judge Staci M. Yandle agreed with
federal prosecutors that Whitecotton knowingly obtained thousands of dollars by abusing
his management position at the federal penitentiary at Marion, Illinois (USP-Marion), lied about
it, and then obstructed justice while trying to cover up his scheme.“It is important for the community to have faith in our institutions, including our federal
prisons,” U.S. Attorney Steven D. Weinhoeft said. “We will always hold public officials
accountable if they abuse positions of public trust for their own financial benefit.”“Whitecotton failed to inform the government that, while he was a UNICOR factory
manager, he was also being paid directly by a contractor he oversaw; and he doubled down when he
thought he’d get caught. Today’s sentencing shows that there is no place for lying and deceit among
federal employees,” said William J. Hannah, Special Agent in Charge of the Department of Justice
Office of the Inspector General Chicago Field Office.Whitecotton was a career federal corrections officer and served as the factory manager of the
UNICOR manufacturing facility operating within USP-Marion. ¹ In 2014, USP-Marion’s UNICOR
facility contracted with a private company, PGB Hanger, Inc. (“PGB”), to manufacture wire clothing
hangers. As factory manager, Whitecotton was directly responsible for the PGB contract.
Shortly after the work began, Whitecotton approached PGB’s owner and offered to work for PGB as a
salesperson – in direct violation of government ethics rules. PGB agreed and they signed a
written contract setting Whitecotton’s compensation at $1,500.00 a month, plus a
commission for each hanger sold on new accounts and a monthly phone allowance. He
then accepted over $20,000.00 in payments from PGB during the following year.
¹ UNICOR is a wholly-owned government corporation administered by the Bureau of Prisons (BOP) that
operates manufacturing facilities in certain BOP facilities. The goal is to prepare federal inmates
for successful reentry into society by providing them with job training and work skills. UNICOR
hires BOP inmates to work in its factories,
at different locations. In some circumstances, UNICOR contracts with private vide product
manufacturing services.In 2015, while Whitecotton was continuing to work for PGB as a salesperson, he became aware that
federal investigators were interviewing staff and inmates working in his factory. Worried
that his prohibited job with PGB might be exposed, Whitecotton concocted a cover-up. He amended
documents to make it appear that his son had been working for PGB, as opposed to Whitecotton. He
also instructed PGB’s owner not to cooperate with investigators if anyone asked for an interview.
Whitecotton further told PGB’s owner that if he did agree to speak to investigators,
the owner should say that Whitecotton’s son, not Whitecotton, had been working with PGB as a
salesperson and receiving payments for the past year.
Whitecotton further attempted to conceal his prohibited job with PGB by making false statements on
certified government forms. As a supervisory employee in the executive branch of the United States,
Whitecotton was required to annually report his financial interests, any outside employment
activities, and any positions held outside his role at the prison. The purpose of this requirement
was to uncover any possible conflicts of interest a supervisory employee may have in the
performance of his or her duties. The forms specifically required Whitecotton to disclose any
sources of income over $200. At the time, Whitecotton had received over $20,000 in payments from
PGB, but he knowingly failed to disclose that information, to prevent federal investigators from
discovering the truth.In December 2020, Whitecotton pled guilty to two counts of making materially false
statements related to those government forms.Along with 8 months in prison and 8 months of home confinement, Judge Yandle ordered Whitecotton to
pay restitution in the amount of $23,475.25 – the total amount he earned from PGB. As part of his
sentence, Whitecotton was also ordered to serve 10 months on supervised release after his home
confinement ends.This case was investigated by the FBI and Department of Justice Office of the Inspector
General. The case was prosecuted by Assistant United States Attorney Luke J. Weissler.
O'Fallon Building Co. Settles Fraud ClaimsRead the Press Release
Fairview Heights, Ill. – R&W Builders, Inc. (R&W) of O’Fallon, Illinois, has agreed to pay the United States $400,000 to resolve allegations that it violated the False Claims Act by fraudulently obtaining construction contracts reserved for disadvantaged small businesses, U.S. Attorney Steven D. Weinhoeft announced today.
The Small Business Administration (SBA) 8(a) Business Development Program helps provide a level playing field for small businesses owned by socially and economically disadvantaged individuals by limiting competition for certain federal contracts to Program participants. To increase the opportunities available to these disadvantaged businesses, the SBA also permits Program participants to partner with another company on certain contracts through approved joint venture agreements. The SBA requires the joint venture agreements to include specific terms to ensure the relationship is fair and provides a benefit to the disadvantaged business, including provisions designating the disadvantaged business as the managing partner of the joint venture and requiring the disadvantaged business to perform a specified percentage of the work. It is important that 8(a) joint ventures comply with the SBA’s criteria because misuse of the Program deprives real disadvantaged businesses of valuable economic opportunities and undermines the Program’s integrity.
In 2014, after R&W was no longer eligible to participate in the 8(a) Program, it entered into a joint venture agreement with Global Environmental, Inc. (GEI), an 8(a) Program participant based in St. Louis, Missouri. R&W and GEI named the joint venture Patriot Commercial Construction, LLC (Patriot) and successfully secured an award set aside solely for Program participants on the Multiple Award Construction Contract (MACC) at Scott Air Force Base, Illinois.
The United States contends that R&W falsely represented it would abide by the Program requirements and the Patriot joint venture agreement to obtain the SBA’s approval. Immediately after Patriot received an 8(a) award on the MACC, R&W began managing the joint venture and using its own employees to complete nearly all of the work Patriot performed. Over the next two years, R&W caused Patriot to receive numerous MACC task orders set aside for 8(a) Program participants when Patriot was under R&W’s control, in violation of SBA requirements.
“The 8(a) Business Development Program is vital to helping disadvantaged businesses gain valuable experience and access to federal contracts,” U.S. Attorney Steven D. Weinhoeft said.
“When contractors abuse the Program and divert opportunities to themselves, it takes away critical assistance from those who truly need it. We will continue to fight this type of fraud to ensure that disadvantaged businesses in Southern Illinois have the chance to compete.”
“The Defense Criminal Investigative Service (DCIS) will investigate all allegations of abuse related to Government set aside programs designed to encourage and support veteran, woman and minority owned small businesses,” stated Gregory P. Shilling, Acting Special Agent in Charge of the DCIS Southwest Field Office. “Schemes like this one undermine not only the integrity of the programs, but the Government contracting process as a whole. This cannot be allowed.”
“The Department of the Air Force takes the protection of federal SBA set-aside funds seriously, especially when abuses impact the military’s warfighting capability,” said Nicholas J. Groesbeck, Special Agent in Charge of the Air Force Office of Special Investigations (OSI), Procurement Fraud Detachment 4. “OSI along with our joint partners are dedicated to protecting the integrity of government procurement practices from fraud, waste and abuse while ensuring those who violate the law are held accountable.”
The investigation was conducted by the SBA Office of Inspector General, Department of Defense Office of Inspector General, Air of Force OSI, and the Defense Contract Audit Agency.
The United States was represented in this matter by Assistant United States Attorney Laura Barke.