Northern District of Illinois

CHICAGO — A former paralegal for a Chicago law firm has been sentenced to two years in federal prison for embezzling more than $600,000 from bankruptcy estate accounts.

BECKY LOUISE SUTTON fraudulently embezzled the funds from 2009 to 2018 while working on bankruptcy matters for the law firm.  Sutton embezzled money from more than 40 bankruptcy estate accounts and several liquidating trust accounts in Chapter 7 and Chapter 11 matters on which she worked.  Sutton orchestrated fraudulent transfers of bankruptcy funds from fiduciary bank accounts intended for creditors to accounts she controlled, including her personal bank account, credit card account, student loan account, and mortgage account.  In one instance, Sutton listed a company with a name similar to a true creditor to disguise her fraudulent diversion of the funds.  Sutton’s conduct victimized not only the creditors, but also her law firm, a partner at the firm for whom she worked, and the U.S. Trustee Program, among others.

Sutton, 68, of Manteno, Ill., pleaded guilty last year to a wire fraud charge.  In addition to the prison term, U.S. District Judge Mary M. Rowland on Tuesday ordered Sutton to pay $611,263 in restitution.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the U.S. Trustee Program.  The government was represented by Assistant U.S. Attorney Kartik K. Raman.

ROCKFORD — A Chicago man has been sentenced to 23 years in federal prison for drug conspiracy and distribution of cocaine.

JULIAN WYRE, 46, was convicted by a jury in December 2023 on one count of conspiracy to distribute cocaine base and seven counts of distribution of cocaine base.  Wyre distributed the cocaine in 2019 in Rock Falls, Ill.  U.S. District Judge Iain D. Johnston imposed the sentence on Monday after a hearing in federal court in Rockford.

In 2008, Wyre was sentenced to 17 years’ imprisonment for illegally possessing cocaine base with the intent to distribute. He was on federal court-supervised release at the time of the conspiracy and distribution charges for which he was sentenced this week.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The Illinois State Police, Illinois State Police Blackhawk Area Task Force, and Rockford Resident Agency of the FBI Chicago Field Office provided valuable assistance in the investigation. 

The government was represented by Assistant U.S. Attorneys Robert S. Ladd and Jonathan S. Kim.

CHICAGO — A federal grand jury has charged a Chicago attorney with corruptly attempting to influence the testimony of a witness in his federal tax fraud case.

MICHAEL ABRAMSON was originally indicted in 2018 on federal tax charges for allegedly filing false individual and corporate income tax returns.  The original charges alleged that Abramson provided more than $1 million for personal expenses to a woman with whom he was romantically involved and then falsely characterized the funds as commissions or loans in his corporations' books and on the tax returns.  Abramson was an attorney in Chicago who held ownership interests in two companies – Leasing Employment Services Co., Inc. and Eastern Advisors, Inc.

The superseding indictment returned this week in U.S. District Court in Chicago renews the prior tax charges and adds counts of witness tampering and contempt of court for Abramson’s alleged attempt to script the testimony of a witness to make it more favorable to Abramson.  Abramson allegedly gave the witness a copy of her previous court testimony, on which he had made handwritten notes changing, supplementing, or otherwise scripting her answers, and told her to review it before Abramson’s trial on the tax charges, which was scheduled for Feb. 5, 2024.  The witness for several years had provided bookkeeping and accounting services for Abramson’s companies.

As a result of the alleged witness tampering, Abramson’s trial was continued to July 1, 2024.  Abramson’s bond was also revoked and he was remanded into federal custody pending trial.

Abramson, 74, of Wilmette, Ill., will be arraigned on the superseding indictment on March 28, 2024, at 9:30 a.m., before U.S. District Judge Virginia M. Kendall.

The superseding indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Chicago Field Office.  The government is represented by Assistant U.S. Attorneys Richard M. Rothblatt and Misty N. Wright.

The public is reminded that charges are not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

Abramson superseding indictment

CHICAGO — A federal jury today convicted a man of intentionally damaging two reproductive health services facilities in Chicago.

MICHAEL BARRON, 42, of Chicago, used a sling shot and metal ball bearings to damage the two facilities on six occasions in May and June of 2021. 

Barron was convicted on all six counts of intentionally damaging the two facilities because they provided reproductive health services.  The jury returned the verdicts after a two-day trial in the courtroom of U.S. Magistrate Judge Young B. Kim in the Northern District of Illinois.

Each count of conviction is punishable by a maximum sentence of one year in federal prison.  Sentencing was set for July 9, 2024.

The verdicts were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and LaDon Reynolds, United States Marshal for the Northern District of Illinois.  The government is represented by Assistant U.S. Attorneys Sivashree Sundaram and Paige Nutini.

CHICAGO — A federal inmate has been charged with sending a threatening letter to a U.S. Probation officer in Chicago.

An indictment returned in U.S. District Court in Chicago charges GLENN BOWDEN, 62, most recently of Riverdale, Ill., with one count of mailing a threatening communication, one count of obstructing an official proceeding, and one count of willfully making false statements to the FBI.  Arraignment is set for April 4, 2024, at 11:00 a.m. before U.S. Magistrate Judge Beth W. Jantz.

According to the indictment, Bowden was incarcerated in a federal prison on May 19, 2023, when he mailed a letter threatening to injure the U.S. Probation officer.  The officer had conducted a presentence investigation of Bowden prior to Bowden’s sentencing on federal robbery charges in 2022.  Bowden in the robbery case was sentenced to more than nine years in prison.

In addition to the alleged threat, the obstruction count in the new indictment alleges that Bowden authored a letter purportedly from his prison chaplain and caused it to be filed with the Court last year in support of a motion for compassionate release.  The chaplain had no knowledge of the letter, which advocated for Bowden’s release from prison, the indictment states.

The false statements count pertains to alleged false statements provided by Bowden to the FBI during its investigation into the letters.  When interviewed by the FBI, Bowden falsely claimed that he did not type or send the letter to the Probation officer and that he knew nothing about the Chaplain’s letter or who wrote it, the indictment states.

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and LaDon A. Reynolds, United States Marshal for the Northern District of Illinois.  The government is represented by Assistant U.S. Attorney Corey B. Rubenstein.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

Bowden indictment

CHICAGO — A Texas man has been indicted in Chicago on federal fraud charges for allegedly orchestrating a digital currency scam that bilked investors out of more than $10 million.

ROBERT DUNLAP, 52, of Houston, Texas, is charged with four counts of mail fraud in an indictment returned in U.S. District Court for the Northern District of Illinois.  Dunlap was arrested last week in Virginia.  He appeared Monday in U.S. District Court for the Eastern District of Virginia and was ordered to be removed in custody to Chicago.

According to the indictment and a criminal complaint previously filed in the case, Dunlap from 2018 to 2023 worked with others to market and sell a purported digital asset called “Meta-1 Coin” through the “Meta-1 Coin Trust.”  Dunlap made numerous false and misleading statements to potential and actual investors, including claims that Meta-1 Coin was backed by as much as approximately $44 billion in gold and art, the indictment states.  The charges accuse Dunlap of falsely claiming that an accounting firm had audited the gold and certified its value.  The purported art collection was alleged to have included works by Pablo Picasso, Salvador Dali, Vincent Van Gogh, and other acclaimed artists.  Dunlap caused the market price and trading volume of Meta-1 Coin to be inflated on the “Meta Exchange” – a website created by Dunlap – by fraudulently using automated software programs, the indictment states.

Investors were allegedly falsely told by Dunlap that they could withdraw their investments at any time by exchanging Meta-1 Coin for other cryptocurrencies or conventional currencies, including U.S. dollars.  Dunlap created numerous legal, insurance, and other documents in an effort to conceal the fact that he did not possess the gold or art, the indictment states.

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Chicago Field Office.  Valuable assistance was provided by the U.S. Securities and Exchange Commission and the U.S. Attorney’s Office for the Eastern District of Virginia.  The government is represented by Assistant U.S. Attorney Corey B. Rubenstein.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each count of mail fraud is punishable by up to 20 years in federal prison.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

Dunlap indictment Dunlap complaint

CHICAGO — The U.S. Attorney’s Office for the Northern District of Illinois collected more than $60 million in criminal, civil, and asset forfeiture actions in Fiscal Year 2023, Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, announced today. 

The 2023 collections included approximately $22.3 million in criminal actions, $29.5 million in civil actions, and $8.9 million in asset forfeiture actions.  Additionally, the U.S. Attorney’s Office for the Northern District of Illinois worked with other U.S. Attorney’s Offices and Department of Justice components across the country to collect another $27.6 million in cases pursued jointly with those offices.

“Our attorneys and staff place a high priority on recovering funds for the federal treasury and victims of federal crimes,” said Acting U.S. Attorney Pasqual.  “Our office will continue to responsibly safeguard taxpayer resources while delivering a valuable return to the citizens of our district.”

U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims.  Federal law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department of Justice’s Crime Victims Fund, which then distributes the money to federal and state victim compensation and victim assistance programs.

CHICAGO — A man has been sentenced to 27 years in prison for shooting two federal agents and a task force officer who were conducting a covert investigation in Chicago.

EUGENE MCLAURIN, 31, of Chicago, pleaded guilty last year to three counts of assaulting a federal officer and two counts of using a firearm during a crime of violence.  U.S. District Judge Manish S. Shah imposed the sentence during a hearing Wednesday in federal court in Chicago.

The shootings occurred on the morning of July 7, 2021, when two agents from the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives and an ATF Task Force officer were driving in an unmarked law enforcement vehicle while conducting a covert investigation on the South Side of Chicago.  McLaurin admitted in a plea agreement that he mistakenly suspected the officers were members of an opposing gang.  After following the officers’ vehicle, McLaurin pulled alongside it as the vehicle reached an on-ramp to the I-57 Expressway and fired several shots at the officers.  The two agents and task force officer were wounded and suffered serious injuries.

Shortly after the shooting, McLaurin disposed of his handgun in a sewer drain and hid the key to his vehicle in the basement of his residence in order to conceal evidence of his involvement in the shootings.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Kristen de Tineo, Assistant Director of ATF, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of ATF, and Larry Snelling, Superintendent of the Chicago Police Department.  Valuable assistance was provided by the Illinois State Police.  The government was represented by Assistant U.S. Attorneys Jared Jodrey, Jasmina Vajzovic, and Elizabeth Pozolo.

“Through the violence of Eugene McLaurin, three dedicated law enforcement officers were seriously injured while serving their community,” said Acting U.S. Attorney Pasqual.  “The bravery and courage shown by the injured officers command our utmost respect.  Our office will continue to ensure that assaults on law enforcement will be met with serious punishment.”

“The men and women of ATF and its Task Forces have a noble mission to protect the public from violent crime,” ATF Assistant Director de Tineo said in her statement to the Court at sentencing.  “Etched just inside the entrance of ATF Headquarters is a quote that states, ‘Loyalty, protection, perseverance, and partnership in defense of justice.’  That quote epitomizes the Chicago Field Division.”

“On behalf of the men and women of ATF, we are relieved that this defendant will serve 27 years in federal prison, protecting the community from further violence,” said ATF Special Agent-in-Charge Amon.  “As noted in today’s sentencing hearing, the victims of this senseless crime, law enforcement agents and officers, dedicate their lives to protecting our community.  We will not tolerate firearm violence directed at our community or our colleagues and will continue to stand shoulder to shoulder with the Chicago Police Department to ensure a tragedy such as this one never happens again.”

CHICAGO — A suburban Chicago businessman has been sentenced to two years in federal prison for willfully evading more than $3.7 million in federal and state income taxes.

ABRAHAM KISWANI 54, of Burbank, Ill., pleaded guilty last year to a federal tax evasion charge.  In addition to the prison term, U.S. District Judge Manish S. Shah on Thursday fined Kiswani $10,000.

Kiswani served as the president of World Security Bureau, a Chicago-area security firm that did business as World Security Agency.  From 2010 through 2013, Kiswani concealed his wages, compensation, and income from being reported to the IRS.  Kiswani directed the individual in charge of payroll to stop issuing payroll checks to Kiswani and to instead pay him in the form of checks falsely categorized as “subcontracted services.”  Kiswani also caused the business to pay a wide range of personal expenses which Kiswani caused to be falsely identified as business expenses.

Kiswani failed to report approximately $10 million in income that he received, resulting in a tax loss to the U.S. and State of Illinois totaling approximately $3,708,065.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Substantial assistance was provided by the U.S. Department of Housing and Urban Development, and the Chicago Housing Authority’s Office of the Inspector General.  The government was represented by Assistant U.S. Attorney Patrick J. King, Jr.

CHICAGO — Through a court-authorized seizure warrant, the U.S. Attorney’s Office in Chicago has seized approximately $1.4 million of Tether (USDT), a cryptocurrency pegged to the U.S. dollar.  The funds, which are suspected fraud proceeds, will be returned to victims of the fraud scheme.  The seizure marks one of the first times the United States has recovered USDT from an unhosted virtual currency wallet.

The seizure was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the Justice Department’s Computer Crime and Intellectual Property Section, National Cryptocurrency Enforcement Team.  The government is represented by Assistant U.S. Attorney Steven J. Dollear.  The U.S. Attorney’s Office acknowledged Tether for its assistance in effectuating the transfer of these assets. 

The alleged fraud scheme, which remains under investigation, was initiated by a computer popup that indicated a victim’s computer had been compromised.  The popup directed the victim to contact Microsoft or Apple, depending on the victim’s operating system, at a certain telephone number.  Once on the phone, the perpetrators, posing as tech support employees, informed the victim that the victim’s bank account had also been compromised.  The perpetrator then transferred the call to others posing as employees of the fraud department of the victim’s bank.  The perpetrators convinced the victims to convert money from traditional bank accounts into cryptocurrency to keep it “safe” from hackers.  The funds were then transferred into unhosted virtual currency wallets controlled by the perpetrators.  The scheme has impacted victims, mostly elderly, throughout the United States. 

In its most recent Internet Crime Report, the FBI estimated that tech support scams caused losses in excess of $924 million in 2023.

Application and Affidavit for Seizure Warrant Funds on Deposit with Tether

CHICAGO — A man has been sentenced to more than ten years in federal prison for trafficking cocaine in the Chicago area and obstructing justice by perjuring himself at trial.

JORGE DIAZ conspired in 2016 with two individuals in Mexico to traffic multiple kilograms of cocaine.  Diaz gave money to couriers to purchase the drugs in California and deliver them to Diaz.  In a Dec. 15, 2016, transaction arranged by the Mexican traffickers, Diaz received from a courier what he thought was 15 kilograms of cocaine.  Unbeknownst to Diaz and the Mexican traffickers, the courier was cooperating with law enforcement agents, who had replaced the cocaine with sham narcotics.  Law enforcement arrested Diaz following the courier’s delivery to him of the sham narcotics.  A subsequent law enforcement search of Diaz’s residence turned up nearly $23,000 in cash, a money counter, a bag full of cell phones, suspected drug ledgers, and other items.

Diaz, 35, of Calumet City, Ill., was convicted last year of conspiracy and attempted possession of cocaine.

U.S. District Judge Sharon Johnson Coleman imposed a 124-month prison sentence on Feb. 29, 2024.  Judge Coleman found that Diaz obstructed justice at his trial last year by falsely testifying about the narcotics trafficking for which he was charged.  During his testimony, Diaz denied knowing that the courier was delivering drugs and claimed he only received the package as a favor to his brother.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the DEA.  The Cook County Sheriff’s Office provided valuable assistance.

The case was part of an Organized Crime Drug Enforcement Task Force operation.  OCDETF identifies, disrupts, and dismantles drug trafficking organizations and other criminal networks that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local enforcement agencies.

“The streets of Chicago are made immeasurably more dangerous because of the drug trade,” Assistant U.S. Attorney Misty N. Wright argued in the government’s sentencing memorandum.  “In further aggravation, defendant perjured himself at trial, jeopardizing the integrity of the justice system and demonstrating a willingness to commit further crimes – lying under oath.”

CHICAGO — A suburban Chicago man was among three people indicted on federal fraud charges for allegedly swindling investors, including a children’s charity, out of more than $3.9 million.

EDWARD L. WOOTEN, LEE S. ROSE, and JOHN L. KRCIL claimed to work for a Wyoming investment company called Black Lion Investment Partners Inc.  Beginning in 2019, the trio falsely suggested to investors that they could earn substantial returns by participating in so-called “private placement” trading programs involving “investment grade fixed income securities” of “top-rated” banks or financial institutions, according to an indictment unsealed Thursday in U.S. District Court in Chicago.  The defendants fraudulently claimed that their trading programs yielded multi-million-dollar investment returns within short periods of time, and that investor funds would be returned if the programs failed to perform within 60 days, the indictment states.  The charges allege that the defendants failed to use all investor funds to conduct trades, did not pay any trading profits to investors, and did not return all investor funds as promised.

The defendants instead converted investor funds to their own use and benefit, the indictment states.  As a result of the fraud scheme, six investors, including an Oklahoma children’s charity, suffered losses totaling approximately $3,905,000.

Wooten, 51, of Macon, Ga., Rose, 82, of Deerfield, Ill., and Krcil, 55, of Hanover, Minn., are charged with wire fraud and interstate transfer of money taken by fraud.  Wooten and Rose are also charged with money laundering and making false statements.  Wooten also faces a charge of making false statements to the FBI, while Rose is charged with making false statements to a federal judge, the FBI, and the U.S. Securities and Exchange Commission.

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The SEC provided valuable assistance.  The government is represented by Assistant U.S. Attorney Brian Havey.

The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

Wooten et al indictment

ROCKFORD — A Rockford man has been sentenced to nine years in federal prison for trafficking fentanyl and crack cocaine and illegally possessing a firearm.

DERRICK A. MAYES JR., 32, pleaded guilty last year to knowingly and intentionally possessing more than 260 grams of fentanyl and nearly 97 grams of crack cocaine, and unlawfully possessing the firearm.  U.S. District Judge Iain D. Johnston on Wednesday sentenced Mayes to 108 months in federal prison.

Mayes admitted in a plea agreement that he illegally possessed the drugs and firearm on April 29, 2021, in his apartment and vehicle.  The firearm was a loaded Smith & Wesson MP9 Shield handgun.  Mayes had previously been convicted of a felony and was prohibited from possessing the gun.  Mayes further admitted that in 2020 and 2021 he sold distribution quantities of fentanyl and crack cocaine to confidential informants.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration.  The Winnebago County Sheriff’s Office assisted in the investigation.  The government was represented by Assistant U.S. Attorney Robert S. Ladd.

Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy.  In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.

CHICAGO — A Rockford, Ill.-based skilled therapy provider and its current and former owners have agreed to pay $1.5 million to resolve civil allegations that the company violated the False Claims Act by falsely submitting claims to Medicare for purported physical and occupational therapy.

Settlements and consent judgments resolve allegations that BRYNWOOD MYOFASCIAL THERAPY LLC, its current owner, MALGORZATA ZASADNY, and its former owner, MARLA MONGE, fraudulently billed Medicare for (1) therapy services when the provider was actually out of the country, (2) physical therapy or occupational therapy when the services were performed by massage therapists rather than licensed physical or occupational therapists, (3) services performed by an occupational therapy assistant or physical therapy assistant when they were not properly supervised, (4) therapy services under improper codes to avoid caps on certain services, and (5) occupational and physical therapy when there were no licensed occupational therapist or physical therapist on site.

The settlements and consent judgments resolve a civil lawsuit filed in U.S. District Court in Chicago by a former employee of Brynwood Myofascial Therapy under the qui tam, or whistleblower, provisions of the False Claims Act.  The False Claims Act permits private citizens to bring lawsuits on behalf of the United States for false claims, and to share in any recovery.  The United States intervened in the lawsuit prior to the settlements and consent judgments.

As part of a settlement agreement and consent order entered by U.S. District Chief Judge Rebecca R. Pallmeyer, Brynwood Myofascial Therapy and Zasadny agreed to pay $953,959, while Monge agreed to pay $615,345.  The public is reminded that civil allegations are accusations only, and there was no determination of liability as part of the settlements and consent judgments.

The settlements and consent judgments were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Mario Pinto, Special Agent-in-Charge of the Chicago Division of the U.S. Department of Health and Human Services, Office of Inspector General, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government was represented by Assistant U.S. Attorney Valerie R. Raedy.

Brynwood Myofascial Therapy order on consent judgment

CHICAGO — A suburban Chicago man has been sentenced to ten years in federal prison for possessing more than 3,000 images and videos depicting children engaged in sexually explicit conduct.

In 2017 and 2018, MIGUEL ASCENCIOS, also known as “Allison Wou,” 55, of Burr Ridge, Ill., used social media and a file-sharing service to receive and share computer files depicting child pornography.  Among the thousands of files he possessed were videos depicting the sexual exploitation of toddlers.

Ascencios pleaded guilty last year to a federal charge of receipt of child pornography.  In addition to the prison term, U.S. District Judge Robert W. Gettleman on Feb. 20, 2024, ordered Ascencios to pay $7,000 in restitution to four of his victims.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Ruth M. Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.  Substantial assistance was provided by the U.S. Attorney’s Office for the Central District of California, the Los Angeles County Sheriff’s Department, the Los Angeles Division of the U.S. Postal Inspection Service, and the U.S. Marshals Service.

“Defendant was not a passive participant in a victimless crime; rather, he directly contributed to both the victimization of children and demand for further material,” Assistant U.S. Attorney Anne L. Yonover argued in the government’s sentencing memorandum.  “Defendant perpetuated the victims’ abuse and helped to preserve a permanent record of those images and videos.”

The government was represented by Ms. Yonover and former Special Assistant U.S. Attorney Malgorzata Kozaka.

If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678.  The service is available 24 hours a day, seven days a week.

CHICAGO — A former Chicago Police Officer has been sentenced to a year in prison on a federal civil rights charge for sexually assaulting an individual while on duty.

JAMES SAJDAK, 65, of Chicago, pleaded guilty last year to one count of deprivation of civil rights, a misdemeanor offense punishable by up to one year in federal prison.  U.S. District Judge John J. Tharp, Jr. imposed the sentence Friday during a hearing in federal court in Chicago.

Sajdak admitted in a plea agreement that he sexually assaulted the victim on March 5, 2019.  Sajdak, driving a marked squad car and wearing a police uniform while on duty, approached the victim on a street in Chicago’s West Garfield Park neighborhood.  Sajdak said words to the effect of, “You can get in the front seat or you can get in the back,” by which he meant that the victim should get in the car or else be arrested.  After the victim complied with his demand and got in the front seat of the squad car, Sajdak drove to an abandoned lot in a secluded area and forced the victim to engage in a sex act for Sajdak’s gratification, the plea agreement states.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.

“Defendant abused the power and responsibility with which he had been entrusted,” Assistant U.S. Attorneys Alexandra Morgan and Erika L. Csicsila argued in the government’s sentencing memorandum.  In addressing the need for a statutory maximum term of imprisonment, which the Court ultimately imposed, the government also argued, “Defendant’s misconduct diminishes the public’s trust in law enforcement and the criminal justice system as a whole.”

CHICAGO — A Chicago man has been convicted in federal court of carjacking a vehicle at gunpoint on the city’s West Side and firing a handgun while attempting to carjack another vehicle.

The jury in U.S. District Court in Chicago on Tuesday convicted KIAR EVANS, 24, on all four counts against him, including one count of carjacking, one count of attempted carjacking, one count of brandishing a firearm during a crime of violence, and one count of illegal possession of a firearm by a previously convicted felon.

The convictions are punishable by a mandatory minimum sentence of seven years in federal prison and a maximum of life.  U.S. District Judge Martha M. Pacold has not yet set a sentencing date.

The guilty verdicts were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Larry Snelling, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorneys Paige A. Nutini and Jimmy L. Arce.

According to evidence presented at the week-long trial, the carjacking and attempted carjacking occurred within minutes of each other on the afternoon of May 20, 2021.  In the attempted carjacking, Evans approached a Chevrolet Impala near the intersection of Independence Boulevard and Congress Parkway in Chicago and fired shots through a window while attempting to get inside.  The driver of the Impala was able to drive away from the scene.

Evans then approached the driver-side window of a Nissan Altima, pointed a firearm at the driver and demanded that the driver exit the vehicle.  The victim complied and Evans drove off in the Nissan.  A short time later, Evans was driving the stolen vehicle when he was involved in a multi-vehicle crash at the intersection of Harrison Street and Ogden Avenue in Chicago.  Chicago Police officers arrested Evans and discovered a loaded semi-automatic handgun in his possession.  As a previously convicted felon, Evans was not lawfully allowed to possess a firearm.

ROCKFORD — A DeKalb, Ill. man was sentenced today to 25 years in federal prison for sexually exploiting children.

MARQUESE CANNON was 22 years old in 2022 when he began communicating online with a 12-year-old girl.  The conversations began on Snapchat and continued through text messaging and phone calls.  During these communications, Cannon enticed the victim into sending him sexually explicit photos and videos of herself.  Cannon instructed the girl on what type of sexually explicit conduct should be portrayed in the photos and videos.

In addition to those videos and photos, Cannon also possessed on his phone a collection of hundreds of images of other children engaged in sexually explicit conduct.

Cannon pleaded guilty last year to a federal charge of production of child pornography.  U.S. District Court Judge Iain D. Johnston imposed the prison term and ordered that it be followed by a lifetime of court-supervised release.  Judge Johnston also ordered Cannon to pay $34,000 in restitution to six victims.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr. Special Agent-in-Charge of the Chicago Field Office of the FBI.  The DeKalb, Ill. Police Department provided valuable assistance in the investigation. The government was represented by Assistant U.S. Attorney Jessica S. Maveus.

If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to https://www.missingkids.org/ or calling 1-800-843-5678.  The service is available 24 hours a day, seven days a week.

CHICAGO — The owner of a suburban Chicago insurance agency has been sentenced to seven years in federal prison for swindling more than $1 million from clients by collecting annuity premiums for policies that he never purchased.

DANIEL M. ROSENBAUM owned and operated Alexander & Rosenbaum Financial Group LLC, an insurance agency in Kenilworth, Ill.  Beginning in 2016, Rosenbaum collected more than $1 million in annuity premiums from at least 18 clients, including friends and family members, for policies that he never purchased.  Rosenbaum instead used the money for his own benefit, including spousal and child support payments, credit card payments, vehicle and other loan payments, and purchases at a jewelry store.  Rosenbaum attempted to conceal the fraud by creating fake annuity documents and providing them to his clients.  Some of the phony documents contained the logos of legitimate insurance companies that Rosenbaum had cut and pasted into the documents.

In addition to the annuity fraud scheme, Rosenbaum also engaged in fraud related to the federal Paycheck Protection Program (PPP), which was created by the CARES Act to cover lost revenue due to economic disruptions from the Covid-19 pandemic.  Rosenbaum filed three fraudulent PPP loan applications in his name and, unbeknownst to them, the names of two close family members, for which he was paid a total of $53,537.  Rosenbaum also fraudulently obtained $65,826 from the State of Illinois by filing two fraudulent applications for unemployment insurance benefits in his name and, unbeknownst to her, the name of a close family member.

Rosenbaum, 56, of Brown Deer, Wisc., pleaded guilty last year to a federal wire fraud charge.  U.S. District Judge Manish S. Shah imposed the sentence Tuesday during a hearing in federal court in Chicago.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The South Chicago Heights, Ill. Police Department provided valuable assistance.

“Not only was Rosenbaum stealing his clients’ money, but he was also leaving them without the annuity coverage they expected to have,” Assistant U.S. Attorney Prashant Kolluri argued in the government’s sentencing memorandum.  “Without that coverage, a number of his clients suffered substantial financial hardship.”

CHICAGO — A former investigator for the Illinois Department of Agriculture has been sentenced to a year in federal prison for groping several women while on duty and then lying under oath about it during an official proceeding.

JOSE GUILLEN inappropriately touched and groped female operators of animal care facilities that he inspected for the State of Illinois.  In his official capacity as a state investigator, Guillen had the power to influence whether an animal care facility received a license to operate and whether it could continue in operation after receiving the license.

When one of the victims filed a civil lawsuit against Guillen, he repeatedly lied under oath during a deposition in the case.  In the deposition, Guillen stated that he touched the victim’s buttocks by accident.  In a plea agreement with the U.S. Attorney’s Office to resolve the federal criminal case, Guillen admitted that he “intentionally touched [the victim’s] buttocks for purposes of his own sexual gratification.”  Guillen also admitted in the plea agreement that he lied in his deposition when he denied having inappropriately touched four other animal care facility operators.

Guillen, 43, of Melrose Park, Ill., pleaded guilty last year to obstruction of justice.  U.S. District Judge Joan Humphrey Lefkow imposed the year-and-a-day sentence during a hearing Wednesday in federal court in Chicago.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. 

“None of these women consented to the defendant’s lecherous advances,” Assistant U.S. Attorneys Amarjeet S. Bhachu and Diane MacArthur argued in the government’s sentencing memorandum.  “It was only when confronted by a series of accusers who were brave enough to step forward to put a stop to his misconduct that the defendant capitulated and accepted responsibility for his serial wrongdoing by pleading guilty.”

CHICAGO — A Chicago consultant has been convicted on federal tax offenses for underreporting and failing to file federal income taxes.

The jury in U.S. District Court in Chicago on Monday convicted ANNAZETTE COLLINS, 61, of Chicago, on four tax counts, including two counts of willfully filing a false individual income tax return, one count of willfully failing to file a corporate income tax return, and one count of willfully failing to file an individual income tax return.  The jury acquitted Collins on two other tax counts.

U.S. District Judge Jorge L. Alonso set sentencing for June 21, 2024.  Each felony count of filing a false individual income tax return is punishable by up to three years in federal prison.  The misdemeanor counts of willfully failing to file individual or corporate income tax returns each carry a maximum sentence of one year in federal prison.

Evidence presented at trial revealed that Collins willfully filed a false individual tax return for the calendar years 2014 and 2015, and willfully failed to file an individual income tax return for the calendar year 2016.  Collins also willfully failed to file a corporate income tax return for the calendar year 2016 on behalf of her consulting and lobbying business, Chicago-based Kourtnie Nicole Corp.  Prior to operating her consulting business, Collins served in the Illinois General Assembly as a Representative and Senator.

The conduct for which Collins was convicted resulted in a federal tax loss of approximately $86,000.

The conviction was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorneys Michelle Parthum and Amarjeet S. Bhachu.

CHICAGO — A suburban Chicago accountant has pleaded guilty to a federal tax offense for willfully evading more than $3.4 million in federal and state income taxes.

IMRAN MAHMOOD, 56, of South Barrington, Ill., pleaded guilty Thursday to a tax evasion charge before U.S. District Judge Sara L. Ellis.  The conviction is punishable by a maximum sentence of five years in federal prison.  Judge Ellis set sentencing for June 11, 2024, at 10:30 a.m.

The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  Valuable assistance was provided by the FBI Chicago Field Office.  The government is represented by Assistant U.S. Attorney Patrick J. King, Jr.

Mahmood was a certified public accountant who provided accounting services for an Illinois not-for-profit organization and a related company.  From 2011 to 2014, Mahmood obtained from the two entities approximately $9,084,984 – the majority of which came from the not-for-profit organization’s payroll accounts – and directed that the money be deposited with an entity Mahmood controlled.  Mahmood then used the deposited funds to make personal expenditures.

Mahmood attempted to conceal the scheme by mischaracterizing payments in the books and records of the entities from which he obtained the money.  Although Mahmood hired a tax professional to assist in filing Mahmood’s income tax returns, he failed to disclose to the professional all of the funds that he received and his ownership of the entity into which he deposited those funds.  This conduct caused the filing of false tax returns for the years 2011 to 2014. 

Mahmood admitted in a plea agreement that his conduct resulted in a total federal and state tax loss of approximately $3,468,523.

Mahmood plea agreement

CHICAGO — The former Chief of Staff to the Speaker of the Illinois House of Representatives was sentenced today to two and a half years in federal prison for providing false material testimony under oath to a federal grand jury and attempting to obstruct its investigation into allegations of public corruption.

U.S. District Judge John F. Kness imposed the sentence on TIMOTHY MAPES, 69, of Springfield, Ill.  A jury in U.S. District Court in Chicago last year convicted Mapes of making false declarations before a grand jury and attempted obstruction of justice.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government was represented by Assistant U.S. Attorneys Julia Schwartz and Diane MacArthur.

Evidence presented at trial revealed that the grand jury was investigating possible violations of federal criminal law, including efforts by the Speaker of the House and a consultant acting on the Speaker’s behalf to obtain for others private jobs, contracts, and monetary payments, including from Commonwealth Edison (“ComEd”), the largest electric utility in Illinois, to influence and reward the Speaker in the Speaker’s official capacity.  Mapes was granted immunity prior to his testimony before the grand jury.  The immunity order provided that testimony or evidence provided by Mapes could not be used against him in a criminal case, except for perjury, giving a false statement, or otherwise failing to comply with the immunity order. 

When Mapes appeared before the grand jury on March 31, 2021, he knowingly made false material declarations in response to several questions about the consultant’s relationship with the Speaker from 2017 to 2019.  Mapes denied knowing that the consultant acted as an agent or performed work for the Speaker during those years, when, in fact, Mapes knew that the consultant carried out work and assignments on behalf of the Speaker and communicated messages on the Speaker’s behalf.

CHICAGO — A federal judge today sentenced a man to 20 years in prison for detonating a pipe bomb at a suburban Chicago train station.

On Sept. 1, 2006, THOMAS JAMES ZAJAC placed a pipe bomb in a trash can at the BNSF Railway station in Hinsdale, Ill.  The device exploded during the morning commute, injuring a station agent.

U.S. District Judge Matthew F. Kennelly imposed the sentence during a hearing in federal court in Chicago.  Judge Kennelly ordered that the sentence must be served after the completion of a federal sentence that Zajac is currently serving for bombing a public library in Salt Lake City, Utah, in 2006.

Today’s sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives.  Valuable assistance was provided by the Hinsdale Police Department, DuPage County, Ill., Sheriff’s Office, U.S. Secret Service, U.S. Postal Inspection Service, and the BNSF Police Department.  The government was represented by Assistant U.S. Attorneys G. David Rojas, Brian Kerwin, and Andréa L. Campbell.

Evidence at Zajac’s federal trial in Chicago last year revealed that Zajac felt disrespected when a family member was arrested by Hinsdale Police in the year before the bombing.  About a month after the bombing, Zajac sent an anonymous letter to the Hinsdale Police Department, stating that the police had “[expletive] with” the wrong person and that the writer had “fired a warning shot” last month.  The letter indicated that police actions would “likely eventually lead to the death” of at least one person in Hinsdale, and that the writer wanted to see whether the department was “bright enough or possess[ed] the character to stop this death.”

Zajac, 70, formerly of Oakbrook Terrace, Ill., was convicted on all three counts against him, including one count of attempting to damage property with an explosive, one count of possessing an unregistered destructive device, and one count of willfully making a threat through the mail to kill or injure a person with an explosive.

CHICAGO — A Chicago trader has been convicted of fraud for engaging in unauthorized speculative bond trading that cost his employer and others more than $30 million.

A jury in U.S. District Court in Chicago on Wednesday convicted KEITH WAKEFIELD, 50, of Chicago, on one count of securities fraud and three counts of wire fraud.  Each count is punishable by a maximum sentence of 20 years in federal prison.  U.S. District Judge Steven C. Seeger did not immediately set a sentencing date.

The conviction was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The U.S. Securities and Exchange Commission, which filed a civil enforcement action against Wakefield, provided valuable assistance.  Assistant U.S. Attorneys Sean Franzblau and Bradley A. Tucker are prosecuting the criminal case.

According to evidence presented at trial, Wakefield worked as the head of fixed income trading for IFS Securities, Inc., a broker-dealer in Chicago.  In 2019, Wakefield knowingly and fraudulently engaged in unauthorized speculative trading in U.S. Treasury bonds using his employer’s trading accounts, causing more than $30 million in losses to the employer and its counterparties.  Wakefield attempted to conceal the unauthorized trades and losses by entering fake off-setting trades into a clearing broker’s order system, creating the false impression that he had profitably traded through a different clearing broker.

In addition to the fraudulent trading scheme, Wakefield from 2017 to 2019 embezzled hundreds of thousands of dollars from IFS Securities by falsifying the company’s books and records to create fake commissions that Wakefield knew were not actually owed to him.

CHICAGO — A Chicago man has been sentenced to 24 years in federal prison for recruiting four children to engage in sex acts for money.

On multiple occasions in 2017, DARYL S. ARNOLD arranged for the four victims, all of whom were under 18 years old, to meet with individuals to engage in commercial sex acts in the Chicago area.  Arnold used websites such as Backpage to advertise the commercial sex acts and find customers.  Afterward, Arnold kept half of the proceeds.

Arnold, 48, pleaded guilty in 2022 to four counts of sex trafficking of a minor.  In addition to the prison sentence, U.S. District Judge Jorge L. Alonso on Friday ordered Arnold to pay $136,700 in restitution to the victims.  The prison term will be followed by ten years of court-supervised release.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The Chicago Police Department provided valuable assistance.

Arnold’s arrest was part of Operation Cross Country XI, a nationwide law enforcement effort to combat underage human trafficking.

“Defendant’s tactic of grooming minors is extremely dangerous because of the ease with which it can be implemented,” Assistant U.S. Attorney Charles W. Mulaney argued in the government’s sentencing memorandum.  “He ‘sold the dream’ with a false promise of independence and love.”

If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by calling 1-800-843-5678 or logging on to www.cybertipline.com.

CHICAGO — A federal superseding indictment charges three Chicago residents with conspiring to commit multiple carjackings in the city and suburbs.  The indictment also accuses them of committing a murder during an attempted carjacking and a second murder using a carjacked vehicle.

According to the indictment returned Thursday in U.S. District Court in Chicago, EDSON RESENDEZ, MAVERICK CELA, and PREZILA APREZA murdered Nabil Mahouar during an attempted carjacking in Chicago’s Dunning neighborhood on Sept. 21, 2020, and later that day used a car taken in another carjacking to fatally shoot Eduardo Triano in the city’s North Park neighborhood.

The superseding indictment renews firearm and carjacking charges filed in 2022 against Resendez and Cela for allegedly violently committing carjackings in Morton Grove, Ill., and Skokie, Ill.  The new indictment adds Apreza as a defendant and charges her, Resendez, and Cela with conspiracy and firearm offenses, as well as two other carjackings in Skokie, Ill. and Berwyn, Ill.

The superseding indictment contains a notice of special findings that would make the defendants eligible for the death penalty if convicted of the new charges.

Resendez, 22, Cela, 22, and Apreza, 23, all of Chicago, are in law enforcement custody.  Arraignments on the superseding charges have not yet been scheduled.

The superseding indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the Skokie, Ill. Police Department, Chicago Police Department, Morton Grove, Ill. Police Department, and Berwyn, Ill. Police Department.  The government is represented by Assistant U.S. Attorneys Cornelius A. Vandenberg and Simar Khera.

The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

Resendez et al superseding indictment

CHICAGO — A Chicago man has been sentenced to nearly 24 years in federal prison for recruiting two children to travel to Chicago from Indiana to engage in sex acts for money.

A jury in 2022 convicted KENNEDY SPENCER, 55, of Chicago, on sex trafficking and conspiracy charges.  U.S. District Judge John Robert Blakey imposed the sentence on Jan. 25, 2024, during a hearing in federal court in Chicago.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance in the investigation was provided by the Tinley Park, Ill. Police Department and the FBI Resident Agency in South Bend, Ind.  The government was represented by Assistant U.S. Attorneys Andrew C. Erskine and Erika L. Csicsila.

According to evidence presented at trial, the victims were under the age of 18 when Spencer induced them to travel to Chicago in the spring of 2018.  Once in the city, Spencer on multiple occasions arranged for the victims to meet with individuals to engage in commercial sex acts.    A co-conspirator – RONALD WILLIAMS, 65, of Lynwood, Ill. – drove the victims to some of the meetings. Afterward, Spencer and Williams kept the bulk of the proceeds.

Both victims testified at trial about having been sex trafficked by Spencer and Williams.

Williams was also convicted on trafficking and conspiracy charges.  He was sentenced in 2023 to 15 years in federal prison.

If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by calling 1-800-843-5678 or logging on to www.cybertipline.com.

CHICAGO — A former board member of the failed Washington Federal Bank for Savings in Chicago was sentenced today to 18 months in federal prison for conspiring to falsify bank records to deceive the Office of the Comptroller of the Currency and for filing false tax returns.

WILLIAM M. MAHON, 57, of Chicago, pleaded guilty last year to conspiracy and tax charges.  In addition to the prison term, U.S. District Judge Virginia M. Kendall ordered Mahon to pay a fine of $75,000.

Washington Federal, which was based in Chicago’s Bridgeport neighborhood, was shut down in 2017 after the Office of the Comptroller of the Currency determined that the bank was insolvent and had at least $66 million in nonperforming loans.  When the OCC was evaluating Washington Federal’s loan portfolio prior to its failure, Mahon and other board members made and caused to be made false entries in bank records and provided them to the OCC with the intent to deceive the agency and obstruct its examination.  They also falsified records to make it appear that Washington Federal was operating in compliance with banking rules and internal policies and controls.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Vincent R. Zehme, Special Agent-in-Charge of the Chicago Region of the FDIC’s Office of Inspector General; Machelle L. Jindra, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Andrea Peacock, Special Agent-in-Charge of the Department of the Treasury, Office of Inspector General; Deborah Witzburg, City of Chicago Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General.  Valuable assistance was provided by the U.S. Trustee Program.  The government is represented by Assistant U.S. Attorneys Michelle Petersen, Kristin Pinkston, and Jeffrey Snell, and Special Assistant U.S. Attorney Brian Netols.

The federal criminal investigation into the bank’s collapse led to criminal charges against 16 defendants, including the bank’s Chief Financial Officer, Treasurer, and other high-ranking employees, for conspiring to embezzle at least $31 million in bank funds.   Four defendants were convicted after jury trials, while ten defendants pleaded guilty and two entered into deferred prosecution agreements.

Much of the money was transferred to Chicago attorney ROBERT M. KOWALSKI and real estate developers MIROSLAW KREJZA and MAREK MATCZUK without all of the required documentation and often without any documentation whatsoever.  Juries last year convicted Robert Kowalski, Krejza, and Matczuk on embezzlement and fraud charges.  They are awaiting sentencing.  Robert Kowalski’s sister, JAN R. KOWALSKI, also an attorney, pleaded guilty and was sentenced in 2023 to more than three years in prison for fraudulently enabling her brother to conceal more than $357,000 from creditors and the trustee in his bankruptcy case.

Chicago attorney PATRICK D. THOMPSON was convicted by a jury in 2022 of making false statements to the Federal Deposit Insurance Corp. regarding the amount of money he received from Washington Federal via a purported loan and other unsecured payments.  He was also convicted of filing tax returns in which he falsely deducted interest that he had not actually paid to Washington Federal.  Daley was sentenced to four months in federal prison.

CHICAGO – The United States Attorney’s Office for the Northern District of Illinois today commemorated National Human Trafficking Prevention Month and renewed its commitment to prosecuting human traffickers, protecting victims, and empowering survivors.

Every year since 2010, the President of the United States has proclaimed January as “National Human Trafficking Prevention Month,” reaffirming our nation’s commitment to combatting human trafficking in all its forms.  The U.S. Attorney’s Office joins in this commitment and continues to prioritize combatting forced labor, domestic servitude, and sex trafficking of children and adults throughout northern Illinois.  As part of these efforts, the office works in partnership with the Cook County Human Trafficking Task Force and the Lake County Human Trafficking Task Force, taking a multidisciplinary approach to prevention and prosecution.

“Human trafficking is a brutal crime and its impact on victims is immeasurable. Our office will continue to work closely with federal, state, and local law enforcement, as well as the remarkable men and women who work with victims, to bring traffickers to justice. Those who exploit other human beings for personal gain must be held accountable.” 

-Morris Pasqual, Acting United States Attorney for the Northern District of Illinois.

“The Department of Justice launched our National Strategy to Combat Human Trafficking to bring the full force of the Department to the fight against human trafficking,” said Attorney General Merrick B. Garland.  “Since then, we’ve taken sustained steps forward to make our anti-trafficking efforts stronger than ever.  We have brought human traffickers to justice, dismantled trafficking enterprises, and empowered survivors to rebuild their lives.  I am proud of the progress the Department has made, but there is still much more work left to do.”

Human trafficking includes sex trafficking, labor trafficking, and indentured servitude.  As with many crimes of exploitation and abuse, human traffickers often prey upon members of marginalized communities and other vulnerable individuals.  Traffickers often manipulate the vulnerabilities of victims on multiple levels, first offering protection and opportunity, and then coercing victims to provide labor, services, or commercial sex through a combination of physical and sexual violence, threats of physical or psychological harm, financial or debt-related threats, threats of deportation or arrest, manipulation of substance use disorder, or withdrawal of housing security or other support.

Anyone with information about a potential human trafficking situation or a person who may be experiencing human trafficking should contact the National Human Trafficking Hotline by calling 1-888-373-7888 or texting 233733.  More information about the Justice Department’s work to combat human trafficking can be found here.

CHICAGO — A federal grand jury has indicted a man for allegedly assaulting and robbing two postal carriers in the Chicago suburb of Evanston, Ill.

EVERETT G. PULLETT, 33, of Evanston, Ill., assaulted and robbed a postal carrier on Sept. 26, 2022, and another on Sept. 27, 2022, according to an indictment unsealed Monday in U.S. District Court in Chicago.  In the second robbery, Pullett displayed a firearm while assaulting and injuring the postal carrier, the indictment states.  Law enforcement later recovered from Pullett a U.S. Postal Service key, the indictment states.

Pullett is currently detained in law enforcement custody.  He was arraigned Monday in federal court in Chicago and pleaded not guilty to charges of assaulting and robbing the postal carriers and illegally possessing the key.  The most serious offense – the second assault that injured and jeopardized the life of the postal carrier – carries a maximum sentence of 25 years in federal prison, while the first assault and the key possession are each punishable by up to ten years.

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Ruth Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.  Valuable assistance was provided by the Evanston Police Department.  The government is represented by Assistant U.S. Attorney Stephanie C. Stern.

“U.S. Postal Service employees delivering mail to the American people must be allowed to do so safely and securely,” said Acting U.S. Attorney Pasqual.  “Individuals who use violence against postal carriers to gain access to the public's mail must be held accountable.”

“This indictment is another example of the roles postal inspectors and our law enforcement partners play in protecting Postal Service employees and customers,” said Inspector-in-Charge Mendonça.  “As Postal Service employees continue to play an integral role in our communities, we are clear in our resolve to aggressively investigate anyone who brings harm to these invaluable public servants.”

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

Pullett indictment

CHICAGO — The owner of a suburban Chicago construction company has pleaded guilty to federal bribery charges for conspiring to bribe an employee of the Cook County Assessor’s Office in return for favorable property assessments.

ALEX NITCHOFF, 56, of Lemont, Ill., pleaded guilty Wednesday to one count of conspiring to corruptly give something of value to influence and reward a public official, and one count of using an interstate facility to facilitate bribery.  Each count is punishable by up to five years in federal prison.  U.S. District Judge John F. Kness set sentencing for May 8, 2024.

Nitchoff admitted in a plea agreement that from 2016 to 2019 he conspired with others to corruptly provide home improvement services and materials to Cook County Assessor’s Office employee LAVDIM MEMISOVSKI, who assessed property values and reviewed property tax appeals for Cook County commercial properties.  Nitchoff and others provided free home improvement services and materials at Memisovski’s personal residence, including a concrete pad, decking materials, dumpster usage, fascias and soffits, a fence, a gas line, heads for a sprinkler system, tile, and windows, the plea agreement states.  In return for the benefits, Memisovski took official action to reduce the property taxes owed for Nitchoff’s properties by at least $550,000, the plea agreement states.

One of Nitchoff’s employees, JOHN BODENDORFER, 56, of Chicago, has pleaded not guilty to participating in the bribery scheme and is awaiting trial.  Memisovski, 45, of Burbank, Ill., pleaded guilty last year to a conspiracy charge and is awaiting sentencing.

Nitchoff’s guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the IRS Criminal Investigation Division and the City of Chicago Inspector General’s Office.  The government is represented by Assistant U.S. Attorneys Vikas Didwania and Thomas Peabody.

Nitchoff, Bodendorfer, and Memisovski were among seven people charged in connection with the federal investigation.  Two other Cook County Assessor’s Office employees, BASILIO CLAUSEN, 51, of Crown Point, Ind., and LUMNI LIKOVSKI, 47, of Burbank, Ill., have pleaded not guilty to bribery charges and are awaiting trial in connection with a scheme in which they allegedly accepted bribes from the owner of a fence installation company in return for reducing property assessments.  The fence company owner, ROBERT MITZIGA, 65, of Dyer, Ind., also pleaded not guilty to bribery charges and is awaiting trial.  The seventh defendant, former City of Chicago building inspector JOSEPH E. GARCIA, was sentenced to probation for falsely claiming to have inspected home repair projects for low-income Chicago homeowners, allowing the city to pay a contractor for work that at the time had not been performed.

The public is reminded that the defendants who have pleaded not guilty are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A federal jury today convicted a woman and her two daughters on child labor trafficking charges for forcing two undocumented West African children to work in the Chicago suburbs.

NAWOMI AWOGA, 75, of Hazel Crest, Ill., and her two daughters, MARINA OKE, also known as Marina Fandohan, 38, of Country Club Hills, Ill., and ASSIBA LEA FANDOHAN, 35, of Hazel Crest, Ill., were each found guilty of one count of conspiracy to conceal, harbor, and shield from detection two children from the West African country of Benin, one count of concealment of an undocumented immigrant, and one count of forcing labor through threats of serious harm to a victim or another person. 

The jury returned its verdicts this afternoon after a two-week trial in U.S. District Court in Chicago.  U.S. District Judge John Robert Blakey did not immediately set sentencing dates.

According to evidence presented at trial, Awoga coached the victims, then age 14 and 12, in Benin to lie to U.S. immigration authorities about their family relationships in order to obtain tourist visas, and then accompanied them into the United States.  Once in the U.S., the defendants harbored the victims in residences in the Chicago suburbs of Country Club Hills and Hazel Crest while the victims were forced to provide labor and services for the defendants’ financial gain.  The defendants used violence against the victims to force them to work both inside the residences and at a hair salon.

The convictions were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Sean Fitzgerald, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations; Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago; and Mark Woods-Hawkins, Special Agent-in-Charge of the U.S. Department of State’s Diplomatic Security Service (DSS).  Substantial assistance in the investigation was provided by the Cook County Sheriff’s Office, Chicago Police Department, Department of Homeland Security’s Center for Countering Human Trafficking, and the Regional Security Office at the U.S. Embassy in Cotonou, Benin.  The government is represented by Assistant U.S. Attorneys Barry Jonas and Tiffany Ardam, and Special Assistant U.S. Attorney Kristin M. Linsley.

Anyone with information about a potential human trafficking situation or a person who may be experiencing human trafficking should contact the National Human Trafficking Hotline by calling 1-888-373-7888 or texting 233733.  More information about the Justice Department’s work to combat human trafficking can be found here.

CHICAGO — The former Chief Operating Officer of an Illinois hospital pleaded guilty today to a federal fraud charge for illegally pocketing more than $620,000 in hospital funds.

ROBERT SPADONI was an attorney who worked as a Vice President and COO of the hospital.  Spadoni admitted in a plea agreement that from 2013 to 2021, he orchestrated a scheme in which he approved the hospital’s payment of invoices to a vendor company that purportedly provided administrative support and compliance services.  In reality, the vendor company – Medical Education Solutions, Inc. – had been established by Spadoni for the purpose of executing the scheme.  Spadoni opened a bank account for the company in a relative's name and steered the hospital’s payments into it.  Spadoni concealed the fraud scheme by paying $1,500 a month in cash to another hospital employee to actually provide the administrative and compliance services.

As a result of the fraud scheme, Spadoni obtained approximately $622,500 in payments from the hospital, the plea agreement states.  Spadoni admitted in the plea agreement that he used the money for his own benefit, including restaurant meals and hotel stays, as well as transferring $225,805 into his 401(k) account.

Spadoni, 59, of Darien, Ill., pleaded guilty to a mail fraud charge.  The conviction is punishable by up to 20 years in federal prison.  U.S. District Judge Matthew F. Kennelly set sentencing for April 30, 2024.

The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Kwame Raoul, Illinois Attorney General.  The government is represented by Assistant U.S. Attorney Chester Choi.

Spadoni plea agreement

An Illinois woman was sentenced yesterday to 26 years in prison for her role in a conspiracy to murder her mother while they vacationed in Bali, Indonesia, in August 2014. 

According to court documents, Heather L. Mack, 28, originally from Chicago, admitted in a plea agreement that she and her boyfriend, Tommy Schaefer, conspired to kill Mack’s mother while Mack and her mother vacationed in Bali. Mack arranged for Schaefer to travel to Bali using her mother’s credit card. After Schaefer arrived, Mack and Schaefer exchanged a series of text messages about how and when to kill Mack’s mother, which included a discussion about suffocating or beating the victim. Shortly after these text messages were exchanged, on Aug. 12, 2014, Schaefer entered the victim’s hotel room and, while Mack was present, brutally beat and killed the victim. Mack and Schaefer then placed the victim’s body into a suitcase and tried to leave the hotel in a taxi. When the driver of the taxi refused to accept their fare, Mack and Schaefer fled the hotel and abandoned the suitcase containing the victim’s body in the taxicab. Mack and Schaefer were arrested by Indonesian police the day after the murder at another hotel in Bali.

“Heather Mack planned to violently murder her own mother while on vacation in Bali,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “In Bali, Mack stood by while her mother was savagely beaten to death and then callously and unsuccessfully tried to dispose of her mother’s body. This significant sentence holds the defendant to account for this heinous crime. The department will continue to pursue justice for Americans, both at home and abroad.”

“The successful prosecution of the defendant’s heinous crime was the result of exhaustive investigative work by law enforcement in the United States and Indonesia,” said Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois. “The sentence imposed sends a message that the U.S. justice system remains a powerful tool to hold accountable those who harm American citizens abroad.”

“The FBI works diligently with its international law enforcement partners to bring perpetrators of violent crime to justice and closure to victims’ families,” said Assistant Director Michael Nordwall of the FBI's Criminal Investigative Division. “The sentencing demonstrates the FBI’s commitment to investigating violent crime—no matter how long or how far it takes us.”

“This case is the result of the FBI’s unwavering commitment to seeking justice for all Americans throughout the world,” said Special Agent in Charge Robert W. “Wes” Wheeler Jr. of the FBI Chicago Field Office. “We will never stop working with our partners to hold violent offenders accountable, no matter where in the world they commit their crimes.”

In 2015, Mack and Schaefer were convicted in Indonesia of local criminal charges related to the murder. Mack was sentenced to 10 years in prison and released after serving seven years. Schaefer was sentenced to 18 years in prison and currently remains imprisoned in Indonesia. 

In November 2021, upon arrival in the United States, Mack was arrested on U.S. federal charges relating to the murder. Schaefer was also charged in the U.S. indictment, and those charges remain pending against him. Mack pleaded guilty on June 16, 2023, to one count of conspiracy to kill a U.S. national. 

The FBI Chicago Field Office investigated the case, with valuable assistance from the Justice Department’s Office of International Affairs and the FBI Legal Attaché Office in Jakarta, Indonesia.

Senior Trial Attorney Frank G. Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Ann Marie E. Ursini for the Northern District of Illinois prosecuted the case. 

CHICAGO — A federal jury in Chicago today convicted six members or associates of a violent street gang on racketeering offenses that included the murder of Carlton Weekly, a Chicago rapper also known as “FBG Duck.”

The jury found that the defendants – all members or associates of the O-Block street gang – participated in a criminal organization that engaged in violence to protect the gang’s perceived territories on the South Side of Chicago.  The O-Block gang publicly claimed responsibility for their violence and used social media and music to increase their criminal enterprise.  The jury found that the defendants conspired to murder Weekly in order to maintain and increase their positions in the gang.  Weekly was fatally shot on Aug. 4, 2020, while shopping in Chicago.

Convicted of committing murder in aid of racketeering are Chicago residents CHARLES LIGGINS, 32, KENNETH ROBERSON, 30, TACARLOS OFFERD, 32, CHRISTOPHER THOMAS, 24, MARCUS SMART, 25, and RALPH TURPIN, 34. 

The jury returned its verdicts after a three-month trial in U.S. District Court in Chicago.  The convictions carry mandatory sentences of life in federal prison.  U.S. District Judge Martha M. Pacold set sentencings for Aug. 6, 2024, for Liggins; Aug. 8, 2024, for Roberson; Aug. 13, 2024, for Smart; Aug. 15, 2024, for Turpin; Sept. 4, 2024, for Offerd; and Sept. 17, 2024, for Thomas.

The convictions were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Larry Snelling, Superintendent of the Chicago Police Department.  Substantial assistance in the investigation was provided by the Cook County State’s Attorney’s Office.  The government is represented by Assistant U.S. Attorneys Jason Julien, Ann Marie Ursini, Caitlin Walgamuth, and Sean Hennessy.

“People have the right to go about their lives and walk the streets in safety – free from violence,” said Acting U.S. Attorney Pasqual.  “The jury’s verdicts today hold the six defendants accountable for a brutal murder that took the life of Carlton Weekly.  Working with our law enforcement partners, our office will continue to prioritize combatting the unacceptable level of gang violence in Chicago.”

“All too often, our residents are held hostage to violence and other dangerous activity on our city streets," said FBI SAC Wheeler.  "These convictions show that there are very real consequences for murder in the city of Chicago today, tomorrow, and every day going forward.”

"The outcome of this case is a result of a shared commitment to public safety and longstanding partnerships at the federal, state, and local level," said CPD Supt. Snelling.  "We will continue working side-by-side with our law enforcement partners to combat violence in every neighborhood because the safety of our communities and residents depends on it."

CHICAGO — A Chicago financial advisor has been charged in federal court with swindling clients out of nearly $1.5 million by soliciting them to invest in purported movie productions.

HELEN GRACE CALDWELL, 58, of Chicago, is charged with wire fraud in a criminal information filed Thursday in U.S. District Court in Chicago.  Arraignment has not yet been scheduled.

According to the information, Caldwell worked for a bank as a senior financial advisor.  She also established an entity called Canal Productions LLC for the purported purpose of producing movies.  From 2014 to 2023, Caldwell solicited various bank clients, including elderly individuals, to invest in her alleged movie productions, knowing that those funds would actually be used for her own personal benefit, the information states.  Caldwell persuaded the victims to liquidate their other assets in order to fund her purported movie investments, the information states.

As a result of the scheme, Caldwell defrauded three clients out of approximately $1,480,500, the information states.

The charge was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorney Corey B. Rubenstein.

The public is reminded that an information is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Wire fraud is punishable by up to 20 years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

Caldwell information

CHICAGO — A fifth defendant will be arraigned today in Chicago on federal charges of conspiring with four others to rob automated teller machines in Illinois, Indiana, and Iowa.

The robbers often used chains connecting the ATMs to stolen pickup trucks to break into the machines and steal cash, according to an indictment returned in U.S. District Court in Chicago.  After the heists, the robbers abandoned the trucks and fled in another vehicle, the indictment states.  One of the pickup trucks was stolen from an auto dealership in Portage, Ind., and some of the chains and other materials used in the robberies were obtained from a hardware store in Burbank, Ill., according to the indictment.

The indictment identifies eight ATMs allegedly robbed as part of the conspiracy:

• March 12, 2022: First Source Bank ATM in Portage, Ind.
• March 23, 2022: Inland Bank ATM in Countryside, Ill.
• March 25, 2022: Parkway Bank ATM in Glen Ellyn, Ill.
• March 30, 2022: Grundy National Bank ATM in Conrad, Iowa.
• April 1, 2022: First State Bank ATM in Lynnville, Iowa.
• April 1, 2022: First Central State Bank ATM in LeClaire, Iowa.
• April 2, 2022: Solon State Bank ATM in Tiffin, Iowa.
• April 3, 2022: Resource Bank ATM in Hinckley, Iowa.

Charged with conspiracy to commit robbery are DANNY ROLAND, 27, of Missouri City, Texas, BRYCE JONES, 26, of Webster, Texas, CHANDLER WILLIAMS, 27, of Missouri City, Texas, DAQUAN BENS, 29, of Houston, Texas, and TRISTIAN MILLER, 27, of Stafford, Texas.

Miller was arrested last month in Houston, Texas.  He is scheduled to be arraigned today at 2:00 p.m. before U.S. Magistrate Judge Sunil R. Harjani in Chicago.  The four other defendants have pleaded not guilty and are awaiting trial.

The charges were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Douglas A. Williams, Jr., Special Agent-in-Charge of the Houston Field Office of the FBI.  Substantial assistance in this investigation has been provided by the Countryside, Ill. Police Department, DuPage County, Ill. Sheriff’s Office, DeKalb County, Ill. Sheriff’s Office, Portage, Ind. Police Department, LeClaire, Iowa Police Department, Bettendorf, Iowa Police Department, Johnson County, Iowa Sheriff’s Office, Grundy County, Iowa Sheriff’s Office, Jasper County, Iowa Sheriff’s Office, and the Houston, Texas Police Department.  The government is represented by Assistant U.S. Attorney Megan DeMarco.

The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

Roland et al indictment

CHICAGO — A federal judge has sentenced a Chicago man to five and a half years in prison for fraudulently obtaining more than $2.9 million in small business loans and grants under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

From April to November of 2020, QUAMDEEN AMUWO, 41, participated in a scheme to defraud the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program.  The EIDL program was intended to provide loan assistance and grants to cover working capital and other operating expenses for legitimate businesses suffering the economic effects of the Covid-19 pandemic.  As part of the scheme, Amuwo submitted to the SBA numerous applications for loans on behalf of businesses that he and others purportedly owned.  The applications contained false statements and misrepresentations concerning the purported entities’ owners, employees, revenues, costs, and dates of establishment.  In support of his applications, Amuwo provided false business registration forms and bogus personal identifying information of the purported owners.

Amuwo led and organized a sophisticated fraud scheme that caused the SBA to disburse at least $2.9 million in EIDL loans and grants into bank accounts that he and others controlled.  He used the money to make cash withdrawals, transfers, and purchases for his personal benefit.

A federal jury in June convicted Amuwo on all twelve wire fraud counts against him.  In addition to the prison sentence, U.S. District Judge Edmond E. Chang on Wednesday ordered Amuwo to pay more than $2.9 million in restitution.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Substantial assistance was provided by the SBA’s Office of Inspector General.  The government was represented by Assistant U.S. Attorneys Heidi Manschreck and Matthew Moyer.

Anyone with information about attempted fraud involving Covid-19 can report it to the Department of Justice by calling the National Center for Disaster Fraud at (866) 720-5721, or by filing a complaint online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

CHICAGO — A federal grand jury has indicted a man on sex trafficking charges for allegedly enticing a minor to engage in a commercial sex act in a Chicago suburb.

The two-count federal indictment charges KENNARD CAMERON, 38, of Chicago, with sex trafficking of a minor and conspiracy to engage in sex trafficking of a minor.  According to the indictment, Cameron recruited and enticed the minor to engage in a commercial sex act in Lansing, Ill., on March 17, 2023.

Cameron was arrested last week.  U.S. Magistrate Judge Beth W. Jantz on Wednesday ordered Cameron to remain detained pending trial.

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorney Jennifer Chang.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. 

Each charge in the indictment is punishable by a maximum sentence of life in federal prison.  The charge of sex trafficking of a minor also includes a mandatory minimum sentence of ten years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678.  The service is available 24 hours a day, seven days a week.

Cameron indictment

CHICAGO — A man has been sentenced to seven years in federal prison for trafficking heroin and cocaine in the Chicago area.

From 2015 to 2022, ALFONSO HIDALGO-GOMEZ obtained heroin and cocaine from Mexico and distributed the narcotics in the Chicago area.  During his trafficking activities in the Chicago area, Hidalgo-Gomez was accountable for distributing at least 13.4 kilograms of narcotics.  At least two other individuals worked for Hidalgo-Gomez, distributing drugs at his direction.

Hidalgo-Gomez, 37, of Chicago, pleaded guilty earlier this year to a drug conspiracy charge.  U.S. District Judge Jorge L. Alonso imposed the sentence on Dec. 13, 2023, after a hearing in federal court in Chicago.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the DEA, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the FBI Chicago Field Office, and Ruth M. Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.

The case was part of an Organized Crime Drug Enforcement Task Force operation.  OCDETF identifies, disrupts, and dismantles drug trafficking organizations and other criminal networks that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local enforcement agencies.

“The streets of Chicago are made immeasurably more dangerous because of the drug trade,” Assistant U.S. Attorney Misty N. Wright argued in the government’s sentencing memorandum.  “People like defendant perpetuate the drug trafficking crisis in Chicago and all that goes with it, including addiction, crime, and violence.  This type of activity endangers our communities.”

CHICAGO — An Illinois nurse removed liquid morphine prescribed to a patient and diluted it with another liquid, knowing the diluted substance would be dispensed to the patient, according to a federal indictment unsealed today in U.S. District Court in Chicago.

NICKOLE BUTLER was employed as a registered nurse at a skilled nursing facility.  The indictment alleges that Butler tampered with the liquid morphine on May 16, 2021, with reckless disregard and extreme indifference for the risk that the patient would be placed in danger of bodily injury.

Butler, 40, of Byron, Ill., is charged with one count of tampering with a consumer product.  She pleaded not guilty today during her arraignment in federal court in Chicago. 

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Ronne Malham, Special Agent-in-Charge of the Chicago Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations.  Substantial assistance was provided by the Illinois State Police and the U.S. Department of Health and Human Services, Office of Inspector General.  The government is represented by Assistant U.S. Attorney Misty N. Wright.

“Patients deserve to have confidence that they are receiving the legitimately prescribed medication and not a diluted substance,” said Acting U.S. Attorney Pasqual.  “Health care practitioners who illicitly tamper with prescription drugs will be prosecuted to the fullest extent of the law.”

“U.S. consumers rely on the FDA to oversee the prescription drug supply chain and ensure that their medicines are safe and effective,” said FDA SAC Malham.  “When that supply chain is breached, the public’s health is put at risk.  We will continue to pursue and bring to justice those who jeopardize consumers’ trust in their medications.”

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  The charge in the indictment carries a maximum sentence of ten years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

Butler indictment

CHICAGO — A federal jury today convicted former City of Chicago Alderman EDWARD M. BURKE on racketeering, bribery, and extortion charges for abusing his position while an alderman to solicit and extort private legal work and other benefits from companies and individuals with business before the city.

Burke, 79, of Chicago, was found guilty on 13 counts: racketeering; corruptly soliciting, demanding, accepting, or agreeing to accept things of value; using an interstate facility to promote unlawful activity; and attempted extortion.  A co-defendant, real estate developer CHARLES CUI, 52, of Lake Forest, Ill., was found guilty on five counts: corruptly offering or agreeing to give things of value; using an interstate facility to promote unlawful activity; and knowingly making a false statement to the FBI.  A third defendant, PETER J. ANDREWS, 74, of Chicago, an aide in Burke’s 14th Ward office, was acquitted of all charges against him.

U.S. District Judge Virginia M. Kendall set sentencing for June 17, 2024, for Cui, and June 19, 2024, for Burke.  The racketeering and extortion counts are punishable by up to 20 years in federal prison.  The counts for corruptly soliciting and accepting things of value are punishable by up to ten years, while the maximum for both using an interstate facility to promote unlawful activity and making a false statement to the FBI is five years.

The verdicts were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The City of Chicago Inspector General’s Office and the Amtrak Office of Inspector General provided valuable assistance.  The government is represented by Assistant U.S. Attorneys Sarah Streicker, Diane MacArthur, Timothy Chapman, and Sushma Raju, as well as Amarjeet Bhachu, Chief of the U.S. Attorney’s Office’s Public Corruption Section.

Evidence at the six-week trial in U.S. District Court in Chicago revealed that Burke corruptly solicited work for his private law firm from companies involved in redevelopment projects at the Old Main Post Office in downtown Chicago and a Burger King restaurant on the city’s Southwest Side.  Burke also corruptly attempted to assist Cui with a development on the city’s Northwest Side shortly after Cui told Burke that he would hire Burke’s private law firm, Klafter & Burke, for legal work.  Klafter & Burke specialized in seeking property tax reductions for corporate clients.

The evidence further revealed that Burke threatened to oppose an admission fee increase at the Field Museum in Chicago because the museum failed to respond to Burke’s inquiry about obtaining an internship at the museum for a child of Burke’s friend.

Cui was convicted of steering the private legal work to Burke in an effort to influence and reward him in connection with permitting and tax increment financing for Cui’s development.

The corruption schemes occurred in 2016, 2017, and 2018, while Burke was Alderman of the 14th Ward and Chairman of the Chicago City Council’s Finance Committee.  Burke served in the City Council from 1969 until earlier this year.

CHICAGO — Two suburban Chicago physicians have been sentenced to federal prison for prescribing opioids to individuals who lacked a legitimate medical need for the drugs.

STANLEY DAVID DEMOREST managed Demorest Consultants LLC, a medical practice in Melrose Park, Ill.  NICHOLAS RECCHIA was employed there as a physician.  From 2015 to 2020, Demorest and Recchia agreed to dispense hydrocodone, oxycodone, fentanyl, and other controlled substances to individuals who visited Demorest Consultants but whom Demorest and Recchia knew had no legitimate medical need for the drugs.  In some instances, Demorest, who voluntarily surrendered his DEA Registration Number in 2015 and lost his ability to lawfully prescribe controlled substances, used Recchia’s name and DEA Registration Number to issue prescriptions for controlled substances to patients.  Demorest and Recchia caused pharmacies to submit numerous claims to Medicare and Medicaid seeking payment for the improper prescriptions.

Demorest, 67, of Bloomingdale, Ill., pleaded guilty earlier this year to one count of health care fraud and one count of unlawfully using another person’s DEA registration number to dispense controlled substances.  Recchia, 64, of River Grove, Ill., pleaded guilty earlier this year to one count of health care fraud.  Both defendants admitted in plea agreements that they dispensed controlled substances outside the usual course of medical practice and without a legitimate medical purpose.  On Dec. 14, 2023, U.S. District Judge John F. Kness sentenced Demorest to two years in federal prison and Recchia to six months in prison.

The sentences were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sheila G. Lyons, Special Agent-in-Charge of the Chicago Division of the DEA, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, Mario Pinto, Special Agent-in-Charge of the Chicago Division of the U.S. Department of Health and Human Services, Office of Inspector General, and Irene Lindow, Special Agent-in-Charge of the Chicago Division of the U.S. Department of Labor, Office of Inspector General. 

“During a time of epidemic prescription opioid abuse, a trained physician is the last person that the public should expect to knowingly and intentionally issue unauthorized prescriptions for opioids,” Assistant U.S. Attorney Brian Hayes argued in the government’s sentencing memorandum.  “Knowing and intentional violations of controlled substances laws by medical professionals during this time must be met with serious sanctions.”

CHICAGO — The former Chief Operating Officer of a suburban Chicago company that sold Covid-19 testing kits has been indicted on federal fraud charges for allegedly embezzling at least $1.8 million in company funds.

DENNIS W. HAGGERTY, JR. issued fraudulent payments from the Willowbrook, Ill.-based company’s bank account for services and goods purportedly provided by himself or the company’s main vendor, a manufacturer from whom the company purchased Covid-19 testing kits, according to an indictment returned Dec. 14, 2023, in U.S. District Court in Chicago.  In reality, the services and goods had not been provided, the indictment states.  The money purportedly sent to the testing-kit supplier was wired to a bank account that Haggerty controlled, and he spent the funds for his personal benefit, the indictment states. 

In addition to the wire transfers, Haggerty allegedly issued checks drawn from the company’s bank account to himself, knowing that he would spend the money for his personal benefit and not the company’s benefit.  Haggerty concealed his fraud by making false and misleading statements on the checks and to the company’s president, the indictment states.

In 2021 and 2022, Haggerty embezzled and fraudulently misappropriated at least approximately $1.8 million from the company, the indictment alleges.

The indictment charges Haggerty, 47, of Burr Ridge, Ill., with five counts of wire fraud.  Arraignment in U.S. District Court in Chicago has not yet been scheduled.  The indictment states that Haggerty committed the embezzlement while free on court-ordered release while another federal fraud case against him was pending.  He was eventually convicted in that case and sentenced in December 2022 to a term of 57 months’ imprisonment.

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General.  The government is represented by Assistant U.S. Attorney L. Heidi Manschreck.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each count of wire fraud is punishable by up to 20 years in federal prison, to be followed by a consecutive term of up to ten years for each offense committed while under court-ordered release.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

Haggerty indictment

CHICAGO — A former paralegal for a Chicago law firm has pleaded guilty to a federal fraud charge for embezzling more than $600,000 from bankruptcy estate accounts.

BECKY LOUISE SUTTON fraudulently embezzled the funds from 2009 to 2018 while working on bankruptcy matters for the law firm.  Sutton admitted in a plea agreement that she embezzled money from more than 40 bankruptcy estate accounts and several liquidating trust accounts in Chapter 7 and Chapter 11 matters on which she worked.  Sutton orchestrated fraudulent transfers of bankruptcy funds from fiduciary bank accounts intended for creditors to accounts she controlled, including her personal bank account, credit card account, student loan account, and mortgage account.  In one instance, Sutton used a company with a name similar to a true creditor to disguise her fraudulent diversion of the funds.  Sutton admitted in the plea agreement that her conduct victimized not only the creditors, but also her law firm, a partner at the firm for whom she worked, and the U.S. Trustee Program, among others.

Sutton, 67, of Austin, Texas, and formerly of Park Forest, Ill., pleaded guilty on Dec. 14, 2023, to a charge of wire fraud.  The conviction is punishable by up to 20 years in federal prison.  U.S. District Judge Mary M. Rowland set sentencing for April 2, 2024, at 11:00 a.m.

The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the U.S. Trustee Program.  The government is represented by Assistant U.S. Attorney Kartik K. Raman.

Sutton plea agreement

CHICAGO — A federal jury has convicted a Chicago businessman of scheming to defraud multiple financial institutions out of $4 million.

DAVID IZSAK, 48, of Chicago, was a licensed real estate professional and the sole proprietor of Skokie, Ill.-based Premier Assets Inc. and Premier Properties Enterprises, Inc.  From 2005 to 2018, Izsak engaged in a scheme to defraud financial institutions by obtaining residential loans through false statements, concealing the existence of unpaid loans, and falsely obtaining credit.  As part of the scheme, Izsak submitted or caused to be submitted to the Cook County Recorder of Deeds fictitious lien releases.  In reality, the releases were not from the lender and the loans were not paid in full.  In one instance, after causing a lien to be released, Izsak sold the property to an unsuspecting buyer.  In another instance, he obtained six mortgages on a single property, obtaining a new loan after fictitiously releasing the prior loan without repaying it.  Izsak also obtained a loan to buy a 57-foot yacht known as the “Flying Lady” by submitting fraudulent tax returns and financial information to the lender.  The yacht was seized in 2019 by federal authorities.

After a week-long trial in U.S. District Court in Chicago, the jury on Friday convicted Izsak on ten counts of financial institution fraud, each of which is punishable by up to 30 years in federal prison.  U.S. District Judge Manish S. Shah set sentencing for July 9, 2024.  The government at sentencing will seek forfeiture from Izsak of approximately $4 million.

The verdict was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the FBI Chicago Field Office, and Ruth M. Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.    The government is represented by Assistant U.S. Attorneys Patrick J. King, Jr., and Elly M. Peirson.

CHICAGO — Two men have been indicted on a federal racketeering charge for allegedly murdering a man to maintain and increase their positions in a violent Chicago street gang.

DIONTAE HARPER, 24, and AMONTI MCCLURE, 21, both of Chicago, are charged with one count of murder in aid of racketeering, according to an indictment returned in U.S. District Court in Chicago.  It accuses the pair of murdering Paul Harris on May 13, 2020, for the purpose of maintaining and increasing their positions in the Faceworld street gang, a criminal organization based on the South Side of Chicago whose members engaged in violence and trafficked narcotics.  Harris was fatally shot while sitting in a vehicle in the 8600 block of South Halsted Street in Chicago’s Auburn Gresham neighborhood.

The defendants are in law enforcement custody.  Arraignment for Harper is scheduled for Tuesday at 1:00 p.m. before U.S. Magistrate Judge Heather K. McShain.  Arraignment for McClure is scheduled for Wednesday at 9:00 a.m. before Judge McShain.  The U.S. Attorney’s Office will be seeking to have the defendants remain detained pending trial.

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Larry Snelling, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorneys John Cooke, Brian Kerwin, and Julia Schwartz.

The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Murder in aid of racketeering is punishable by a mandatory sentence of life in federal prison, and the death penalty is also possible.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

Harper et al indictment

CHICAGO — A former employee of the Cook County Land Bank Authority (CCLBA) has been sentenced to a year in federal prison for using “straw buyers” to fraudulently purchase and resell properties from the agency on his behalf.

MUSTAFAA SALEH, 37, of Chicago, pleaded guilty earlier this year to a wire fraud charge.  U.S. District Judge Andrea R. Wood imposed the year-and-a-day prison sentence during a hearing Friday in federal court in Chicago.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Machelle L. Jindra, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the Office of Special Inspector General for Troubled Asset Relief Program, IRS Criminal Investigation Division, Cook County Office of Independent Inspector General, and the Federal Housing Finance Agency’s Office of Inspector General.  The government was represented by Assistant U.S. Attorneys Sean Franzblau and Kirsten Moran, and Special Assistant U.S. Attorney Brian Netols.

Saleh worked as an asset manager for the CCLBA, a governmental entity that promoted the redevelopment and reuse of vacant, foreclosed, abandoned, and tax delinquent real estate by acquiring and transferring the property to private ownership.  The CCLBA sold the real estate at below-market rates and prohibited the buyers from selling or renting a property until the CCLBA was satisfied that the buyer had adequately improved it.  CCLBA employees were prohibited from purchasing a property from the agency unless it would be used for the employee’s primary residence.

From 2016 to 2021, Saleh used nominee or “straw” buyers to fraudulently purchase six properties from the CCLBA on Saleh’s behalf and thereafter redeveloped, resold, and otherwise used the properties for Saleh’s financial benefit.  In some instances, Saleh’s duties at the CCLBA allowed him oversight over the same properties he owned and resold.  The properties were located in Chicago and the nearby suburbs of Oak Lawn and Midlothian.

In addition to the property fraud scheme, Saleh fraudulently obtained maintenance work from the CCLBA.  In 2016, Saleh formed a property maintenance company called Evergreen Property Services and directed another individual to pose as its owner.  Over the next three years, Saleh caused the CCLBA to contract with Evergreen and pay it more than $1 million for property maintenance services, even though CCLBA employees were prohibited from having a financial interest in property maintenance companies contracting with the agency.

CHICAGO — An Indiana man has been convicted on federal charges for kidnapping and assaulting two former girlfriends.

ROBERT SPEED, 40, of Gary, Ind., held the victims against their will and repeatedly assaulted them with various dangerous weapons in May and July of 2019.  During the assaults, which occurred at residences and hotels in Gary, Ind., Chicago, and the Chicago suburbs, Speed repeatedly punched, hit, and choked the victims.  The victims, who had previous romantic relationships with Speed, testified at trial about their ordeals with Speed and the serious injuries he caused them.

The jury on Tuesday convicted Speed on all nine counts against him, including two counts of kidnapping and seven counts of interstate domestic violence.  Each kidnapping count is punishable by a maximum sentence of life in federal prison, while each domestic violence count carries a maximum sentence of ten years.  U.S. District Judge Jorge L. Alonso set sentencing for March 26, 2024.

Robert Speed’s niece, SHIRLEY SPEED, 27, of Chicago, pleaded guilty prior to trial to an interstate domestic violence charge.  Shirley Speed admitted in a plea agreement that she and Robert Speed transported one of the victims from Gary, Ind., to Shirley Speed’s residence in Chicago, and then to a hotel room in South Holland, Ill.  Shirley Speed further admitted that her uncle held the victim against her will and assaulted her at both locations.  Shirley Speed was sentenced last month to two and a half years in federal prison.

The convictions were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The Chicago Police Department and Gary, Ind. Police Department provided valuable assistance.  The government is represented by Assistant U.S. Attorneys Sivashree Sundaram and Prashant Kolluri.