Northern District of Illinois

CHICAGO — A man has been convicted in federal court of obtaining money by threat from a strip club in a Chicago suburb.

ROMMELL KELLOGG, 71, of Harvey, Ill., was convicted Monday on all five counts against him, including conspiracy to commit theft and intimidation and causing the use of facilities in interstate commerce to promote theft and intimidation.  The jury returned its verdicts after a week-long trial in U.S. District Court in Chicago. 

Each count of conviction is punishable by up to five years in federal prison.  U.S. District Judge Sharon Johnson Coleman did not immediately set a sentencing date.

Evidence presented at trial revealed that Kellogg and a co-conspirator, COREY JOHNSON, 68, of Dolton, Ill., are cousins whose relatives served in high-ranking positions in Harvey government.  From 2003 to 2018, Kellogg and Johnson conspired to regularly demand and collect payments from a Harvey strip club based on threats that the city of Harvey would potentially interfere with the club’s operations if the payments were not made.  In exchange for the payments, the business was allowed to continue to operate, even though the conspirators and others knew that acts of prostitution were occurring onsite.

Johnson served as a bagman in the conspiracy, receiving bi-weekly $3,000 payments from the business and delivering the money to Kellogg.  Johnson pleaded guilty to a theft charge prior to trial.  He is awaiting sentencing.

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; 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 Thomas J. Dart, Cook County Sheriff.  The government is represented by Assistant U.S. Attorneys Sean Franzblau and Megan DeMarco.

ROCKFORD — A Chicago man has been convicted by a federal jury in Rockford of one count of conspiracy to distribute cocaine base and seven counts of distribution of cocaine base.

The jury returned its verdicts against JULIAN WYRE, 46, on Thursday in U.S. District Court in Rockford.  A sentencing date has not yet been scheduled.   

According to evidence presented at trial, Wyre and two other individuals were involved in the conspiracy and distribution of cocaine base in Rock Falls, Ill. between June 2019 and November 1, 2019.  During this time period, Wyre sold cocaine base seven times to a confidential informant and two other individuals who were used as “runners.” 

In 2008, Wyre was sentenced to 17 years’ imprisonment for illegally possessing with intent to distribute cocaine base.  He was on federal supervised release at the time of the 2019 conspiracy and distribution charges for which he was convicted Thursday.

The conviction was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois.  The investigation was conducted by the Illinois State Police, Illinois State Police Blackhawk Area Task Force, and the Rockford Resident Agency of the FBI Chicago Field Office.

The case was prosecuted by Assistant U.S. Attorneys Robert S. Ladd and Jonathan S. Kim.

CHICAGO — A man has been sentenced to eleven years in federal prison for illegally possessing a loaded handgun while trafficking fentanyl and cocaine in Chicago.

THOMAS L. GATES illegally possessed the gun and drugs on the evening of Nov. 16, 2021, in the Old Town neighborhood on Chicago’s North Side.  Chicago Police officers detained Gates in the 1500 block of North Sedgwick Avenue after observing him display the firearm to another individual.  The officers then discovered approximately 45 small, packaged baggies of fentanyl and cocaine in Gates’s jacket pocket.

Gates had previously been convicted of multiple felonies and was not lawfully allowed to possess a firearm.

Gates, 43, of Chicago, pleaded guilty earlier this year to federal drug and firearm charges.  U.S. District Judge Edmond E. Chang imposed the sentence Tuesday 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, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and Larry Snelling, Superintendent of the Chicago Police Department.  Valuable assistance was provided by the FBI, DEA, and Illinois State Police.

“Possession with the intent to distribute controlled substances and possession of a firearm in furtherance of drug trafficking are extremely serious offenses,” Assistant U.S. Attorney Beth E. Palmer argued in the government’s sentencing memorandum.  “Defendant posed a severe threat to the community, which is already plagued by gun violence, when he carried a loaded semi-automatic weapon on a public street to protect his drug distributions.”

CHICAGO — A federal judge has sentenced a Joliet man to more than two years in prison for illegally possessing a loaded handgun while on court-supervised release for a drug conviction.

GARY MCDONALD, 50, illegally possessed the gun on Oct. 8, 2023, in a vehicle parked in the 1000 block of Sherman Street in Joliet.  McDonald had been released from federal prison in 2020 after serving time for a drug conspiracy conviction.  He was to remain on court-supervised release until 2025, during which time he was not allowed to, among other things, possess a firearm or commit another federal or state crime.

After a hearing in federal court on Nov. 30, 2023, U.S. District Judge John Robert Blakey found that McDonald violated the conditions of supervised release.  Judge Blakey revoked McDonald’s release and sentenced him to an additional two years and three months in federal prison.

The government was represented at the hearing by Assistant U.S. Attorney Misty N. Wright.  Valuable assistance with the supervised release prosecution was provided by the Joliet Police Department and the FBI.

“Violating supervised release by possessing a loaded firearm is a serious offense that carries with it serious consequences,” said Morris Pasqual, Acting United States Attorney for the Northern District of Illinois.  “We will continue to work with our law enforcement partners to prosecute serious violations of supervised release as appropriate.”

CHICAGO — Two men have been indicted in federal court in connection with the robbery and murder of a man in Chicago last year.

JAYLAN WILLIAMS and BRANDON CUNNINGHAM conspired to rob Anthony Oliver in Chicago’s North Lawndale neighborhood on Sept. 13, 2022, according to a superseding indictment returned Tuesday in U.S. District Court in Chicago.  During the robbery, Williams and Cunningham murdered Oliver, the indictment states.

The superseding indictment charges Williams, 23, and Cunningham, 21, both of Chicago, with robbery conspiracy, robbery, and firearm counts.  Williams and Cunningham have been ordered detained in law enforcement custody pending trial.

The superseding indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and Larry Snelling, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorney Elly M. Peirson.

The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  The charges against Williams and Cunningham carry a maximum penalty of death.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory United States Sentencing Guidelines.

Williams and Cunningham indictment

A suburban Chicago man admitted in federal court today that he trafficked fentanyl and other drugs and attempted to provide material support to the Islamic State of Iraq and al-Sham, aka ISIS.

According to court documents, Jason Brown, 41, of Lombard, Illinois, pleaded guilty to one count of attempting to provide material support to ISIS, one count of distributing fentanyl and one count of possessing a firearm in furtherance of a drug trafficking crime.

Brown admitted in a plea agreement that on three occasions in 2019 he provided $500 in cash to an individual with the understanding that the money would be wired to an ISIS soldier engaged in terrorist activity in Syria. Unbeknownst to Brown, the individual to whom he provided the money was confidentially working with law enforcement, and the purported ISIS fighter was actually an undercover law enforcement officer.

Brown further admitted that in 2019 he trafficked fentanyl from California to the Chicago suburbs and illegally possessed several loaded handguns in furtherance of his drug trafficking activities.

Brown faces a mandatory minimum penalty of five years in prison and a maximum penalty of life in prison for the firearms charge; a mandatory minimum penalty of five years in prison and a maximum penalty of 40 years in prison for the drug charge; and a maximum penalty of 20 years in prison for the terrorism charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Brown has been in law enforcement custody since his arrest in 2019. U.S. District Judge Mary M. Rowland set sentencing for May 28, 2024.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois and Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. Special Agent in Charge Robert W. “Wes” Wheeler Jr. of the FBI Chicago Field Office, Special Agent in Charge Justin Campbell of the IRS Criminal Investigation in Chicago and Superintendent Larry Snelling of the Chicago Police Department made the announcement. 

Substantial assistance was provided by the Illinois State Police, U.S. Postal Inspection Service, U.S. Customs and Border Protection, Homeland Security Investigations, Lombard (Illinois) Police Department and Addison (Illinois) Police Department. 

Assistant U.S. Attorney Shawn McCarthy for the Northern District of Illinois and Trial Attorney S. Elisa Poteat of the National Security Division’s Counterterrorism Section are prosecuting the case.

CHICAGO — A suburban Chicago man admitted in federal court today that he trafficked fentanyl and other drugs and attempted to provide material support to the Islamic State of Iraq and al-Sham, also known as ISIS.

JASON BROWN, 41, of Lombard, Ill., pleaded guilty to one count of attempting to provide material support to ISIS, one count of distributing fentanyl, and one count of possessing a firearm in furtherance of a drug trafficking crime.  The firearm charge is punishable by a mandatory minimum sentence of five years in federal prison and a maximum of life.  The drug charge is punishable by a mandatory minimum sentence of five years and a maximum of 40 years, and the terrorism charge is punishable by a maximum of 20 years.  Brown has been in law enforcement custody since his arrest in 2019.  U.S. District Judge Mary M. Rowland set sentencing for May 28, 2024, at 11:00 a.m.

Brown admitted in a plea agreement that on three occasions in 2019 he provided $500 in cash to an individual with the understanding that the money would be wired to an ISIS soldier engaged in terrorist activity in Syria.  Unbeknownst to Brown, the individual to whom he provided the money was confidentially working with law enforcement, and the purported ISIS fighter was actually an undercover law enforcement officer.

Brown further admitted that in 2019 he trafficked fentanyl from California to the Chicago suburbs and illegally possessed several loaded handguns in furtherance of his drug trafficking activities.

The plea agreement was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Matthew G. Olsen, Assistant Attorney General for National Security at the U.S. Department of Justice; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Larry Snelling, Superintendent of the Chicago Police Department.  Substantial assistance was provided by the Illinois State Police, U.S. Postal Inspection Service, U.S. Customs and Border Protection, Homeland Security Investigations, Lombard (Ill.) Police Department, Addison (Ill.) Police Department, and FBI Field Offices in Atlanta, Los Angeles, and San Diego.  The government is represented by Assistant U.S. Attorney Shawn McCarthy of the Northern District of Illinois and S. Elisa Poteat, Trial Attorney from the National Security Division, Counterterrorism Section.

Brown plea agreement

CHICAGO — A man has pleaded guilty in federal court to shooting two federal agents and a task force officer who were conducting a covert investigation in Chicago.

EUGENE MCLAURIN, 31, of Chicago, pleaded guilty Tuesday to three counts of assaulting a federal officer and two counts of using a firearm during a crime of violence.  Each firearm count is punishable by a mandatory minimum sentence of ten years in federal prison and a maximum of life.  Each assault count is punishable by up to 20 years.  McLaurin has been detained in federal custody since his arrest in 2021.  U.S. District Judge Manish S. Shah set sentencing for March 13, 2024, at 1:30 p.m.

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 federal investigation on the South Side of Chicago.  McLaurin admitted in a plea agreement that he had 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 guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, 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 is represented by Assistant U.S. Attorneys Jared Jodrey, Jasmina Vajzovic, and Elizabeth Pozolo.

CHICAGO — A man was charged in federal court today with conspiring to rob armored trucks and ATMs in Chicago suburbs this year.

BRIAN SNYDER, 24, of Chicago, is charged with conspiracy to commit robbery in a criminal complaint filed today in U.S. District Court in Chicago.  Snyder is currently detained in law enforcement custody.

According to the complaint, Snyder conspired with others to rob two armored trucks in the Chicago suburbs of Country Club Hills and Chicago Heights, and three ATMs in the Chicago suburbs of Lansing, Blue Island, and Homewood.  The conspirators also later attempted to rob a second armored truck in Country Club Hills but did not obtain any money.

In the armored truck robberies, two to five robbers armed with handguns took cash from the truck drivers as they were servicing ATMs or stores, the complaint states.  The conspirators often drove stolen vehicles to the robbery locations and abandoned the vehicles afterward, the complaint states.

The complaint 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, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and Larry Snelling, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorneys Elie Zenner, Simar Khera, and Kirsten Moran.

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

Snyder complaint

CHICAGO — Two men have been indicted in federal court in an alleged murder-for-hire conspiracy that resulted in a fatal shooting in Chicago’s Roseland neighborhood.

ANTHONY MONTGOMERY-WILSON, 24, and PRESTON POWELL, 23, both of Chicago, are charged with conspiracy to use an interstate facility in the commission of a murder for hire, according to an indictment unsealed Wednesday in U.S. District Court in Chicago.  The pair is also charged with an individual murder-for-hire count, while Montgomery-Wilson also faces a firearm charge. 

According to the indictment and a search warrant filed in the case, Montgomery-Wilson and Powell conspired with each other and others to murder Stephon Mack in exchange for money.  On the afternoon of Jan. 27, 2022, Mack, 24, was fatally wounded when two gunmen emerged from a vehicle and fired several shots as Mack exited the Youth Peace Center of Roseland in the 400 block of West 111th Street.  A security guard from the Center was also wounded in the shooting but survived.

Montgomery-Wilson is in law enforcement custody.  He pleaded not guilty Wednesday during his arraignment before Chief U.S. Magistrate Judge Young B. Kim in Chicago.  A status hearing for Montgomery-Wilson was scheduled for Jan. 16, 2024.

Powell is considered a fugitive and a warrant has been issued for his arrest.

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 FBI Chicago Field Office, and Larry Snelling, Superintendent of the Chicago Police Department.  Valuable assistance was provided by the Illinois Department of Corrections Northern Region Intelligence Unit.  The government is represented by Assistant U.S. Attorneys Jared C. Jodrey, Jason A. Julien, and Brian F. Williamson.

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.  The murder-for-hire charges each carry a mandatory sentence of life in federal prison, while a sentence of death is also possible.  The firearm charge against Montgomery-Wilson is punishable by up to ten years.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

Montgomery-Wilson et al indictment

CHICAGO — An associate of the Sinaloa drug cartel has been sentenced to more than eleven years in federal prison for conspiring to traffic at least 40 kilograms of cocaine in the Chicago area.

ROBERTO VELAZQUEZ MARTINEZ, 39, of Santiago Papasquiaro, Mexico, conspired with several individuals to import and distribute the cocaine into the United States on behalf of drug traffickers in Mexico.  Velazquez traveled to Chicago in the fall of 2018 to arrange a multi-kilogram cocaine shipment with co-conspirators and two other individuals posing as Columbian drug traffickers who were actually working confidentially with U.S. law enforcement.  Velazquez fled the U.S. after a failed cocaine deal in Stickney, Ill., on Dec. 4, 2018.   He was arrested in 2019 in Peru and extradited to the U.S. in 2020.   

Velazquez pleaded guilty earlier this year to a drug conspiracy charge.  U.S. District Judge Joan Humphrey Lefkow imposed the 136-month prison sentence Tuesday 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; and Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration.  Valuable assistance was provided by the Justice Department’s Office of International Affairs, U.S. Customs and Border Protection, U.S. Marshals Service, and INTERPOL.  The government was represented by Assistant U.S. Attorney Aaron R. Bond.

The investigation was conducted with the support of the Chicago HIDTA and OCDETF Task Forces, which are comprised of federal, state, and local law enforcement agencies working together to identify, disrupt, and dismantle the most serious drug trafficking organizations.

Velazquez was originally charged with four alleged co-conspirators.  Three of the alleged co-conspirators are considered fugitives and warrants have been issued for their arrests, while the fourth, LOUIS REYES VELEZ, of Stickney, Ill., has pleaded not guilty to the charges and is awaiting trial.

CHICAGO — A Chicago man has been convicted in federal court of threatening to commit violence at a women’s reproductive health clinic.

A jury in U.S. District in Chicago on Wednesday convicted FARHAN SHEIKH, 23, of transmitting a threat in interstate commerce.  The conviction is punishable by a maximum sentence of five years in federal prison.  U.S. District Judge Mary M. Rowland 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.  Valuable assistance was provided by the U.S. Marshals Service and the Chicago Police Department.  The government is represented by Assistant U.S. Attorneys Aaron R. Bond and Melody Wells.

Evidence at trial revealed that Sheikh posted the threatening communications on Aug. 13, 2019, on the social media platform iFunny.  In one of his posts, Sheikh stated, “I am done with my state and thier (sic) [expletive] abortion laws and allowing innocrnt (sic) kids to be slaughtered for the so called ‘womans right’ [expletive].”  Sheikh later wrote that he would visit a clinic in Chicago and “proceed to slaughter and murder any doctor, patient, or visitor I see in the area and I will not back down.”

In posts that immediately followed the threats, Sheikh described his anger at law enforcement and his frustration over the arrest of another individual for making threats online.  Sheikh referred to the other arrest as “surpressing [sic] our freedoms,” and he vowed to “do the same” to “whores.”

CHICAGO — A former clerk for the Retirement Plan for Chicago Transit Authority Employees has been sentenced to a year in federal prison for fraudulently obtaining more than $356,000 in Plan funds.

AYANNA NESBITT created and obtained approval for approximately 43 fraudulent requests for the Plan to issue various benefits to CTA employees or their beneficiaries, including pension and death benefit payments, and refunds of pension contributions.  The fraudulent requests contained false representations about the purported recipients’ identities and entitlement to the payments.  Nesbitt had the payments sent to financial accounts she controlled or else had the money paid to others and then transferred to Nesbitt.  From 2019 to 2021, Nesbitt defrauded the Plan of approximately $356,934.

Nesbitt, 51, of Chicago, pleaded guilty earlier this year to a wire fraud charge.  U.S. District Judge Matthew F. Kennelly imposed the year-and-a-day sentence Tuesday 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, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The Retirement Plan for CTA Employees provided valuable assistance.

“Defendant was a public employee who abused her position to benefit herself and those close to her,” Assistant U.S. Attorney Christopher K. Veatch argued in the government’s sentencing memorandum.

CHICAGO — A federal grand jury has returned a superseding indictment against two men for allegedly robbing several banks and a credit union in the Chicago suburbs.

CHARLES LAWLER and TARANDLE LEE committed the robberies in 2021 and 2022, according to a superseding indictment returned in U.S. District Court in Chicago.  The charges allege that the pair together robbed four financial institutions and that Lawler robbed another bank by himself.  The indictment seeks forfeiture of $29,944 from the defendants.

The indictment identifies the robberies as follows:

• Sept. 22, 2021: Lawler robbed BMO Harris Bank in Naperville, Ill.
• Sept. 28, 2021: Lawler and Lee robbed Old Second Bank in Lisle, Ill.
• Oct. 6, 2021: Lawler and Lee robbed Bank Financial in Westmont, Ill.
• Jan. 3, 2022: Lawler and Lee robbed BMO Harris Bank in Woodridge, Ill.
• April 14, 2022: Lawler and Lee robbed DuPage Credit Union in Downers Grove, Ill.

Lawler, 53, of Villa Park, Ill., and Lee, 44, of Bolingbrook, Ill., are currently detained in law enforcement custody.  Arraignments are set for Tuesday at 9:30 a.m. before U.S. District Judge Robert W. Gettleman.

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.  Substantial assistance was provided by the Naperville, Ill. Police Department, Lisle, Ill. Police Department, Westmont, Ill. Police Department, Woodridge, Ill. Police Department, Downers Grove, Ill. Police Department, Skokie, Ill. Police Department, and Evanston, Ill. Police Department.  The government is represented by Assistant U.S. Attorney Alejandro G. Ortega.

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.

Lawler and Lee superseding indictment

CHICAGO — Three 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.

CAMERON CALLISON, 24, JUAN ALCARAZ, 23, and VICTOR RAMIREZ, 24, all of Chicago, are charged with one count of murder in aid of racketeering.  Callison, a previously convicted felon, is also charged with illegally possessing a handgun.

The indictment was unsealed today in U.S. District Court in Chicago.  It accuses the trio of murdering Victor Ochoa on June 17, 2019, for the purpose of maintaining and increasing their positions in the Ambrose street gang, a criminal organization based on the South Side of Chicago whose members engaged in violence and trafficked narcotics.  Ochoa was fatally shot while riding in a vehicle in the 2900 block of North Broadway in Chicago’s Lakeview neighborhood.

The defendants were arrested this morning and will make initial appearances in federal court in Chicago this afternoon.  The U.S. Attorney’s Office will be seeking to have the defendants detained pending trial.

The indictment and arrests 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 FBI Chicago Field Office, and Larry Snelling, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorneys Paige Nutini and Maureen McCurry.

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.  The firearm charge against Callison is punishable by up to ten years.   If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

Callison et al indictment

CHICAGO — A federal grand jury in Chicago has indicted the mayor of Riverdale, Ill. for allegedly lying under oath in a civil deposition and corruptly obstructing a lawsuit that claimed the mayor retaliated against a former city vendor.

LAWRENCE JACKSON, 49, of Riverdale, Ill, is charged with one count of perjury and one count of obstruction of justice, according to the indictment returned Wednesday in U.S. District Court in Chicago.  Arraignment has not yet been scheduled.

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, Machelle L. Jindra, Special Agent-in-Charge of the Chicago office of the U.S. Department of Housing and Urban Development’s Office of Inspector General, Ruth M. Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service, and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  Substantial assistance was provided by the Illinois State Police.  The government is represented by Assistant U.S. Attorneys Sean Franzblau and Kirsten Moran, and Special Assistant U.S. Attorney Brian Netols. 

According to the indictment, Tri-State Disposal Inc., a waste management company in Riverdale, filed a civil lawsuit against Riverdale and Jackson in 2018, alleging that Jackson retaliated against Tri-State by refusing to renew its garbage collection contract with the city.  The owners of Tri-State had spoken out publicly against the city’s issuance of a zoning permit that allowed a recycling and waste transfer business to operate in Riverdale.  The recycling business was owned by an individual aligned with Jackson who had allegedly assisted the mayor in replacing Tri-State with a different garbage collection company.

Tri-State’s lawsuit alleged that Jackson caused the city to give preferential treatment to the recycling business at the expense of Tri-State.  Jackson participated in a deposition in the suit on Feb. 25, 2021, and answered questions under oath by an attorney for Tri-State.  Jackson’s answers were intended to conceal his relationship with the recycling company’s owner, including the owner’s extensive involvement in the operations of Centennial Holdings, a trucking company that Jackson and his wife owned on paper, but which was effectively operated by the recycling company’s owner for Jackson and his wife’s benefit, the indictment states.  In the deposition, Jackson falsely testified that a Riverdale village administrator introduced him to the other garbage collection company and recommended that it replace Tri-State, even though he knew that the recycling company’s owner made the introduction and recommendation, the indictment states.  During the deposition, Jackson exchanged text messages with the recycling company’s owner regarding the topics being discussed, the indictment states. 

The public is reminded that an indictment contains only charges and 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 obstruction charge is punishable by up to 20 years in federal prison, while the perjury charge carries a maximum sentence of five years.

Jackson indictment

CHICAGO — A former special agent with Homeland Security Investigations (HSI) has been sentenced to more than six years in federal prison for tax, structuring, and concealment offenses.

A jury in May convicted ANTHONY SABAINI, 41, of Naperville, Ill., of illegally structuring financial transactions, concealing material facts from the U.S. Department of Homeland Security, and filing false federal tax returns.  In addition to the 74-month prison sentence, U.S. District Judge Andrea R. Wood on Thursday ordered Sabaini to pay $93,422 in restitution to the IRS.

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, Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago, Joseph V. Cuffari, Inspector General for DHS, and Michael K. Finerty, Resident Agent-in-Charge of the Office of Professional Responsibility at DHS.  Valuable assistance was provided by the DEA.

“Corrupt law enforcement strikes at the heart of our system of government,” Assistant U.S. Attorneys Jared Hasten and Jonathan Shih argued in the prosecution’s sentencing memorandum.  “When individuals in law enforcement break the law, it makes the job of legitimate law enforcement that much harder because it erodes public trust.”

Sabaini was assigned to the Oakbrook Terrace, Ill. field office of HSI, a criminal investigative unit within DHS.  Evidence at trial revealed that Sabaini maintained a corrupt relationship with an HSI confidential informant and tipped off the informant to sensitive investigations conducted by other law enforcement agencies, including the FBI and DEA.  In exchange for Sabaini’s protection, the informant paid Sabaini at least $50,000.  Sabaini also stole cash from drug dealers and pocketed money from HSI that had been earmarked for investigative activity.

Sabaini deposited more than $250,000 into a bank account for which he was the sole signatory.  He made the deposits in more than 160 transactions, with the amount of each deposit being less than $10,000.  The deposits were structured in an effort to evade federal reporting rules, which require financial institutions to notify the U.S. Department of the Treasury about transactions of more than $10,000.

The evidence also showed that Sabaini lied on official HSI memoranda in 2017 and 2018 to protect his corrupt relationship with the informant.  In the memoranda, Sabaini knowingly concealed material facts, including that the informant was a target of ongoing criminal investigations conducted by other law enforcement agencies, and that the informant had recently engaged in unauthorized criminal conduct that Sabaini knew would have affected his suitability as a paid HSI informant.

Sabaini also underreported income in federal tax returns from 2014 to 2018.

A separate federal jury in 2021 convicted Sabaini’s partner, FERNANDO ZAMBRANO, of lying to investigators during the Sabaini probe.  Zambrano was a Palos Heights Police Officer assigned to an HSI task force.  Zambrano was sentenced to three months in federal prison.

CHICAGO — A Chicago attorney has been indicted on federal fraud charges for allegedly providing false and fraudulent information to U.S. authorities to obtain immigration benefits for his foreign national clients.

MOHAMMAD REZA BANIASSADI owned and operated The Law Offices of Reza Baniassadi, which had offices in Chicago.  From 2013 to 2020, Baniassadi conspired with two employees of his firm and others to knowingly provide false and fraudulent information to U.S. Citizenship and Immigration Services on behalf of his foreign national clients who were seeking U.S. immigration benefits, according to an indictment unsealed Thursday in U.S. District Court in Chicago.  Baniassadi advised clients to enter into sham marriages with U.S. citizens or lawful permanent U.S. residents in order to obtain benefits, the indictment states.  Among other schemes charged in the indictment, Baniassadi allegedly helped clients cheat on oral civics exams, falsified claims of spousal abuse purportedly suffered by clients, and fabricated job offers from U.S. companies that would purportedly sponsor clients for residency.

The indictment charges Baniassadi, 65, of Chicago, with one count of conspiracy to commit immigration fraud and five individual counts of falsifying applications for immigration benefits.  Baniassadi is considered a fugitive.  A warrant for his arrest has been issued.

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Joseph V. Cuffari, Inspector General for the Department of Homeland Security.  The government is represented by Assistant U.S. Attorney Corey B. Rubenstein. 

The public is reminded that an indictment contains only charges and 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 visa fraud is punishable by up to ten years in federal prison, while the conspiracy count carries a maximum sentence of five years.

Baniassadi indictment

CHICAGO — A federal grand jury has indicted the president of an environmental services company for allegedly obstructing an investigation into the grant funding of a hotel demolition project in the Chicago suburb of Harvey, Ill.

CARL FIORAVANTI, 55, of Lansing, Ill., is charged with one count of obstruction of justice, according to an indictment returned Wednesday in U.S. District Court in Chicago.  The charge is punishable by up to 20 years in federal prison.  Arraignment in federal court has not yet been scheduled.

According to the indictment, Fioravanti was the president of Alliance Environmental Control, Inc., a Lansing, Ill.-based company that performed asbestos testing and removal services.  In 2017, Alliance was hired by the Cook County Land Bank Authority to conduct an asbestos survey in advance of the demolition of the Chicago Park Hotel, commonly known as the “Harvey Hotel,” in Harvey, Ill.  The Land Bank Authority had acquired the hotel and intended to use a Community Development Block Grant from the U.S. Department of Housing and Urban Development to demolish and repurpose the property.

Fioravanti submitted the asbestos survey to the Land Bank Authority in the fall of 2017, stating that asbestos was present on the Harvey Hotel site, the indictment states.  Alliance was later hired as a subcontractor on the project by a Chicago-area demolition company that was chosen by the Land Bank Authority to demolish the hotel. 

In September 2018, a federal investigation led by HUD’s Office of Inspector General, the Environmental Protection Agency’s Criminal Investigation Division, and the FBI, probed whether Alliance accurately described the amount of asbestos on the property in its survey to the Land Bank Authority and the amount of asbestos removed from the property in an asbestos waste manifest that Alliance provided to a landfill operator, as well as whether Alliance and the demolition company had received Community Development Block Grant funds to which they were not entitled in connection with the hotel demolition.  The indictment alleges that Fioravanti intended to impede, obstruct, and influence the investigation when he responded to a subpoena from HUD-OIG by providing asbestos waste manifests that had been altered to reflect that a different quantity of asbestos was removed from the hotel site and delivered to the landfill.

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Machelle L. Jindra, Special Agent-in-Charge of HUD-OIG in Chicago, Robert W. “Wes” Wheeler, Jr., Special Agent in Charge of the Chicago Field Office of the FBI, Lisa Matovic, Acting Special Agent-in-Charge of EPA-CID, Nic Evans, Special Agent-in Charge of EPA’s Office of Inspector General, Justin Campbell, Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division, 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 Sean Franzblau, Kirsten Moran, and Brian Netols.

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.

Fioravanti indictment

CHICAGO — A suburban Chicago man used insider information obtained from his spouse to purchase options in a biotech company’s stock before it was acquired by a large pharmaceutical company, according to a federal criminal charge filed by the U.S. Attorney’s Office in Chicago.

In the spring of 2019, BRIAN RUBIN made $90,450 in illegal profits from the purchase and sale of stock options in the Colorado-based biotech company that employed Rubin’s spouse, according to the criminal information filed Tuesday in U.S. District Court in Chicago.  Unbeknownst to his spouse, Rubin used material, non-public information obtained from her about the biotech company’s successful development of certain products and its expected acquisition by the New York-based pharmaceutical company to purchase the options ahead of a public announcement of the acquisition in June 2019, the charge alleges.  After the announcement, the biotech company’s stock price increased and Rubin exercised the options for the profit, the charge alleges.  Rubin’s spouse had learned the information through her position as an account director for the biotech company’s Midwest operations, the charge alleges.

Rubin, 51, of Deerfield, Ill., is charged with one count of securities fraud.  The charge is punishable by up to 20 years in federal prison.  Arraignment in federal court in Chicago has not yet been scheduled.

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 U.S. Securities and Exchange Commission, which filed a civil enforcement action against Rubin, provided valuable assistance.  Assistant U.S. Attorneys Jared Hasten and Adam Rosenbloom represent the government in the criminal case.

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.

Rubin information

CHICAGO — A federal judge in Chicago has sentenced the manager of a sweepstakes gaming company to five and a half years in prison for participating in a bribery scheme with an Illinois state lawmaker.

In 2018 and 2019, JAMES T. WEISS paid thousands of dollars in bribes to then-Illinois State Representative Luis Arroyo.  The bribes were paid from Weiss’s gaming company, Collage LLC, in the form of checks made payable to Spartacus 3 LLC, Arroyo’s private lobbying firm in Chicago.  In exchange for those bribes, Arroyo promoted legislation in the Illinois General Assembly related to the sweepstakes industry and advised other state lawmakers to support the legislation. 

In August 2019, Arroyo offered to have bribe payments made to an Illinois State Senator in return for the Senator’s support of sweepstakes-related legislation.  As part of the scheme, Weiss agreed to conceal the bribe payments by making them appear as if they were for legitimate consulting work.  Thereafter, in furtherance of this effort to conceal the bribes intended for the Senator, Weiss caused two checks totaling $5,000 to be delivered to the Senator.  Each check was made payable to a fictitious third party and labeled as a consulting payment.  Weiss later falsely told law enforcement that he had personally spoken to the fictitious third party.

Arroyo, who represented the 3rd District in the Illinois House of Representatives from 2006 to 2019, pleaded guilty to his role in the bribery scheme and was sentenced in 2022 to nearly five years in federal prison.

A federal jury in June convicted Weiss, 44, of River Grove, Ill., on fraud and false statement charges.  U.S. District Judge Steven C. Seeger imposed the sentence Wednesday 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; 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 Chicago office of the IRS Criminal Investigation Division.  The government was represented by Assistant U.S. Attorneys Christine M. O’Neill and Sean Franzblau.

CHICAGO — A federal jury in Chicago has convicted an Ohio man of enticing a 16-year-old Illinois girl into sending him sexually explicit images of herself.

ANDREW BOLTZ, 25, of Kenton, Ohio, was convicted Tuesday on all five counts against him, including four counts of sexual exploitation of a child and one count of receipt of child pornography.  Each exploitation conviction is punishable by a mandatory minimum sentence of 15 years in federal prison and a maximum of 30 years.  The child pornography conviction is punishable by a mandatory minimum sentence of five years in federal prison and a maximum of 20 years.  U.S. District Judge John Robert Blakey did not immediately set a sentencing date. 

Boltz began communicating with the then-16-year-old girl in January 2020 on the social media application Omegle.  Boltz continued communicating with her via text messaging and the social media application Snapchat.  During these communications, Boltz enticed the victim into sending him sexually explicit images of herself.  Boltz instructed the girl on what type of sexually explicit conduct should be portrayed in the images. 

Boltz was convicted after a six-day trial in U.S. District Court in Chicago.  The victim bravely testified at trial about being manipulated and degraded by Boltz.

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.  Valuable assistance was provided by the Peru, Ill. Police Department, the LaSalle County, Ill. State’s Attorney’s Office, the Wilmington, Ill. Police Department, the Will County, Ill. State’s Attorney’s Office, the Will County, Ill. Children's Advocacy Center, the Norwalk, Ohio Police Department, and the Cleveland, Ohio Field Office of the FBI.  Assistant U.S. Attorneys Elly M. Peirson, Edward A. Liva, Jr., and Kavitha Babu represent the government.

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.

ROCKFORD — A federal judge has sentenced a Rockford man to more than six years in federal prison for illegally possessing a firearm in Rockford.

U.S. District Judge Philip G. Reinhard on Tuesday sentenced WILLIE EVANS, 35, to eighty months in prison.  Evans pleaded guilty earlier this year to a charge of illegal firearm possession.  As a previously convicted felon, Evans was prohibited by federal law from possessing a firearm. 

Evans admitted in a plea agreement that while in Rockford on Feb. 23, 2022, he possessed a handgun that had been loaded with 13 rounds of ammunition, including one in the chamber.  Evans also admitted that he possessed several small baggies containing cocaine and ecstasy that he intended to sell to others.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, and Carla Redd, Chief of the Rockford Police Department. 

“Defendant’s offense endangered the community because he was not only illegally in possession of a firearm but was engaged in drug trafficking,” Assistant U.S. Attorney Theodora Anderson argued in the government’s sentencing memorandum.  “Drug trafficking and gun violence go hand-in-hand and pose a real threat to the community.”

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.

ROCKFORD — A Cook County man has been sentenced to more than five years in federal prison after pleading guilty to mail fraud and aggravated identity theft. 

ROBERT CARTER, 29, of Homewood, Ill., was sentenced Wednesday by U.S. District Judge Philip G. Reinhard to 64 months in prison and ordered to pay more than $1 million in restitution. 

According to his plea agreement, from June 2020 through March 2021, Carter and others schemed to submit fraudulent unemployment insurance claims to the California Employment Development Department, the Maryland Division of Unemployment Insurance, and the Virginia Employment Commission. Carter used Social Security numbers and dates of birth of others without their knowledge or consent to submit unemployment claims.  Carter opted to have the unemployment benefits paid via debit cards mailed to residences connected to Carter and others involved in the scheme, then withdrew funds from the debit cards at financial institutions and ATMs in Illinois.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Irene Lindow, Special Agent-in-Charge of the Chicago Region of the Department of Labor – Office of Inspector General, and Ruth M. Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.  The government was represented by Assistant U.S. Attorney Robert S. Ladd.

“Robert Carter engaged in a scheme to fraudulently obtain more than $1 million in unemployment insurance funds by applying for benefits in the names of identity theft victims,” said SAC Lindow.  “Carter stole benefits set aside by the federal government to assist American workers struggling during the COVID-19 pandemic.  We are grateful to the U.S. Attorney’s Office and the U.S. Postal Inspection Service for their strong partnership and collaboration on these types of investigations.”

CHICAGO — A leader of a drug trafficking organization that sold heroin, fentanyl-laced heroin, and fentanyl-analogue laced heroin on the Northwest Side of Chicago has been sentenced to twelve and a half years in federal prison.

KELVIN FRANKLIN conspired with more than 15 others to traffic narcotics in Chicago’s Humboldt Park neighborhood in 2019.  A lengthy investigation, led by the U.S. Drug Enforcement Administration and Chicago Police Department, shut down an open-air drug market utilized by the conspirators in the 1000 block of North Monticello Avenue in Chicago.  During the probe, agents and officers made approximately eighty undercover purchases of heroin, fentanyl-laced heroin, and fentanyl-analogue laced heroin from various members of the crew.  The dealers occasionally held “pass outs” of free drugs to entice customers to buy additional drugs from them.

Franklin supervised other traffickers and also personally sold some of the drugs.  He and other managers coordinated with street-level dealers to ensure that they had sufficient quantities of narcotics to distribute to customers.  In addition to the drug sales, Franklin also attempted to procure a loaded handgun for a member of the crew at the open-air market.  Law enforcement intervened and the gun was seized.

Franklin, 32, of Chicago, pleaded guilty earlier this year to a federal drug conspiracy charge.  U.S. District Judge John J. Tharp, Jr. imposed the sentence Monday after a hearing in federal court in Chicago.

Franklin’s 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, and Larry Snelling, Superintendent of CPD.  Substantial assistance was provided by the Cook County State’s Attorney’s Office and the IRS Criminal Investigation Division in Chicago.  Assistant U.S. Attorneys Richard M. Rothblatt and Jason A. Julien represented the government.

The investigation was conducted with the support of the Chicago High Intensity Drug Trafficking Task Force (HIDTA).  The task force is comprised of federal, state, and local law enforcement agencies who work together to identify, disrupt, and dismantle the most serious drug trafficking organizations. 

Franklin was one of 18 individuals charged in federal court in 2020 as part of the investigation.  To date, 16 federal defendants have pleaded guilty.

CHICAGO — A suburban Chicago man has been sentenced to ten years in federal prison for carjacking a vehicle at gunpoint while a woman and her two children were inside.

The carjacking occurred on the afternoon of July 27, 2022, at Thorntons gas station in Posen, Ill.  The woman was entering the driver’s seat of her Kia Optima when KEWAN TILLMAN approached, pointed a loaded handgun at her, and demanded the key.  The victim was able to get the two children out of the vehicle before Tillman stole the car and drove off.  Tillman quickly lost control of the vehicle, got out, and ran back toward the gas station, where he unsuccessfully attempted to force entry into an occupied semi-truck.  Tillman then placed the handgun in a sewer and tried to force his way into another vehicle that was parked at a gas pump.  After a physical altercation with the driver of that vehicle, Posen Police officers arrested Tillman. 

The officers discovered the handgun in the sewer.  The gun was equipped with a “Glock switch,” also known as an “auto sear,” and at the time was only capable of firing in fully automatic mode.

Tillman had arrived at the gas station in a Kia Soul that had been reported stolen in Chicago.

Tillman, 20, of Calumet City, Ill., pleaded guilty earlier this year to federal carjacking and firearm charges.  U.S. District Judge Elaine E. Bucklo imposed the sentence Friday 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, and Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives.  Substantial assistance was provided by the Posen Police Department.  The government was represented by Assistant U.S. Attorney Caitlin Walgamuth.

CHICAGO — A federal jury in Chicago has convicted two real estate developers of participating in a conspiracy that embezzled millions of dollars from the failed Washington Federal Bank for Savings in Chicago.

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.  For more than a decade, developers MIROSLAW KREJZA and MAREK MATCZUK were part of a conspiracy that embezzled millions of dollars in bank funds.  The embezzled funds were disguised as purported real estate development loan disbursements to Krejza, Matczuk, and others.  The conspirators were not required to repay these purported loans, and they never did.

Krejza, 65, of Chicago, and Matczuk, 60, of Park Ridge, Ill., were convicted Friday of conspiring to commit embezzlement and falsify bank records, as well as aiding and abetting embezzlement by bank employees.  The jury returned the verdicts after a three-week trial in federal court in Chicago.  U.S. District Judge Virginia M. Kendall did not immediately set sentencing dates.

The convictions were 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 and U.S. Customs and Border Protection.  The government is represented by Assistant U.S. Attorneys Michelle Petersen, Kristin Pinkston, and Brian Netols, and Special Assistant U.S. Attorney Jeffrey Snell.

The federal investigation into the collapse of Washington Federal 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.   Krejza, Matczuk, and two others were convicted after jury trials, while ten defendants pleaded guilty and two entered into deferred prosecution agreements. 

Much of the embezzled money was transferred to Chicago attorney ROBERT M. KOWALSKI and other individuals outside the bank without all of the required documentation and often without any documentation whatsoever.  A jury earlier this year convicted Robert Kowalski on bankruptcy fraud, bank embezzlement, and false statement charges.  His sentencing is set for Jan. 23, 2024.   Robert Kowalski’s sister, JAN R. KOWALSKI, also an attorney, pleaded guilty and was sentenced in June 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.

Last month, three former members of Washington Federal’s Board of Directors pleaded guilty to conspiring to falsify bank records to deceive the OCC.  WILLIAM M. MAHON, GEORGE F. KOZDEMBA, and JANICE M. WESTON will be sentenced in December.

Last year, Chicago attorney PATRICK D. THOMPSON was convicted 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.  Thompson was also convicted of filing tax returns in which he falsely deducted interest that he had not actually paid to Washington Federal.

CHICAGO – A former railroad engineer has been sentenced to two and a half years in federal prison for fraudulently obtaining disability benefits.

SCOTT CARLBERG operated and managed a tanning salon in Wisconsin for six years while simultaneously receiving occupational disability benefits from the U.S. Railroad Retirement Board.  In his application for benefits, Carlberg asserted that he could no longer perform any type of work due to numerous daily limitations, including short-term-memory loss, poor concentration, irritability, frequent loss of temper, and information-processing difficulties.  After the benefits were approved, Carlberg misrepresented the nature of his work at the salon and lied about the income he received from it.

A federal jury in Chicago earlier this year convicted Carlberg, 53, of Menomonie, Wisc., on four counts of wire fraud.  In addition to the prison term, U.S. District Judge Edmond E. Chang on Tuesday ordered Carlberg to immediately pay more than $279,000 in restitution to the Railroad Retirement Board.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas Williams, Deputy Assistant Inspector General for Investigations at the RRB, 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 was represented by Assistant U.S. Attorneys Richard M. Rothblatt and Michelle Parthum.

Carlberg was one of six defendants charged in Chicago as part of an investigation into fraud perpetrated against benefit programs administered by the RRB to rail workers and their families.  The five other defendants pleaded guilty and admitted fraudulently receiving benefits while simultaneously performing various types of work, including construction, landscaping, managing a donut shop, and captaining a charter fishing boat.

If you believe someone you know is receiving fraudulent disability benefits from the U.S. Railroad Retirement Board, you can contact the RRB OIG anonymously by calling 1-800-772-4528 or by sending an email to hotline@oig.rrb.gov.

CHICAGO — A man has been sentenced to six and a half years in federal prison for carjacking a rideshare driver’s vehicle at gunpoint in downtown Chicago.

NOAH RANSOM forcibly stole a Lexus RX350 from a Lyft driver on April 9, 2022.  The Lyft driver picked up Ransom and four other men at a downtown Chicago hotel around 4:00 a.m., and shortly thereafter Ransom pointed a gun at the driver and ordered him to stop the car and get out.  The victim complied and Ransom drove off with the other men in the victim’s car. 

About 90 minutes later, Illinois State Police identified the vehicle on the South Side of Chicago and ordered it to stop, but Ransom continued driving.  After a high-speed chase on multiple expressways for nearly 30 minutes, ISP forced the vehicle to a stop in Chicago’s West Loop neighborhood.  Ransom was arrested and the handgun was seized.

Ransom, 19, of Chicago, pleaded guilty earlier this year to federal carjacking and firearm charges.  U.S. District Judge Matthew F. Kennelly imposed the sentence Tuesday 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; and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by ISP and the Chicago Police Department.  The government was represented by Assistant U.S. Attorneys Jared C. Jodrey and Bradley A. Tucker.

“Committing a senseless act of violence like carjacking is a serious crime that will earn you a substantial federal prison sentence,” said Acting U.S. Attorney Pasqual.  “We are working tirelessly with our federal, state, and local law enforcement partners to pursue, prosecute, and detain violent carjackers.”

CHICAGO – Two Illinois businessmen have been indicted on federal charges for allegedly fraudulently obtaining more than $7.8 million in small business loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

SHARHABEEL SHREITEH, an accountant in Palos Hills, Ill., and TRACY MITCHELL, the owner of a business in Joliet, Ill., allegedly 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.  A PPP loan allowed the interest and principal to be forgiven if businesses spent a certain amount of the loan proceeds on essential expenses, such as payroll and rent.

An indictment unsealed Tuesday in the Northern District of Illinois alleges that Shreiteh and Mitchell recruited purported sole proprietors, self-employed individuals, and businesses to provide personal identifying information, bank statements, and other documents, and then submitted fraudulent PPP loan applications on their behalf.  The applications contained numerous misrepresentations and false statements that inflated the applicants’ payroll, income, and other expenses, the indictment states.  In exchange for preparing and submitting the fraudulent applications, Shreiteh and Mitchell received at least $1,000 to $4,000 per successful loan, the indictment states.

The indictment charges 13 counts of wire fraud against Shreiteh, 43, of Crete, Ill., and ten counts against Mitchell, 49, of Plainfield, Ill.  Mitchell pleaded not guilty during his arraignment Tuesday in federal court in Chicago.  Shreiteh’s arraignment has not yet been scheduled.

The indictment 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 FBI Chicago Field Office.  The government is represented by Assistant U.S. Attorney Elie Zenner.

The public is reminded that an indictment contains only charges and 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.  Each count of 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.

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

Shreiteh et al indictment

CHICAGO — A federal jury in Chicago has convicted a man of 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, causing damage inside the station and injuring a station agent.  About a month later, 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.”  Evidence at trial revealed that Zajac felt disrespected when a family member was arrested by Hinsdale Police the prior year.

Zajac, 70, formerly of Oakbrook Terrace, Ill., was convicted Monday of all three counts against him, including one count of attempting to destroy property with an explosive device, 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 device.

The property destruction count carries a mandatory minimum sentence of five years in federal prison and a maximum of 20 years.  Each of the other two counts are punishable by a maximum sentence of ten years.  U.S. District Judge Matthew F. Kennelly set sentencing for Dec. 13, 2023.

The verdicts were 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, and the U.S. Secret Service.  The government is represented by Assistant U.S. Attorneys Brian Kerwin, G. David Rojas, and Andréa L. Campbell.

CHICAGO — A former U.S. Postal Service employee in Chicago has pleaded guilty in federal court to stealing government stimulus checks from the mail.

OLIVIA L. BRYANT admitted in a plea agreement that in 2020 and 2021 she stole hundreds of pieces of mail from her route in Chicago’s Logan Square neighborhood.  Some of the stolen mail contained government stimulus checks that were issued by the U.S. Treasury during the Covid-19 pandemic, the plea agreement states.  Bryant admitted that five of the stimulus-check thefts occurred on St. Patrick’s Day 2021 when she removed the checks from her postal satchel and transferred them to her purse. 

Bryant, 35, of Chicago, pleaded guilty Thursday to a charge of theft from the U.S. mail.  The conviction is punishable by a maximum sentence of five years in federal prison.  U.S. District Judge John Robert Blakey set sentencing for Dec. 7, 2023.

The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Scott Pierce, Special Agent-in-Charge of the Chicago Great Lakes Area Field Office of the U.S. Postal Service Office of Inspector General; and J. Russell George, Inspector General of the Treasury Department Inspector General for Tax Administration (TIGTA).  The government is represented by Special Assistant U.S. Attorney Malgorzata Tracz Kozaka.

Bryant plea agreement

CHICAGO – OVIDIO GUZMAN LOPEZ, 33, of Culiacan, Mexico, was arraigned in federal court in Chicago today after his extradition last week from Mexico to the United States. Guzman Lopez was arrested in Mexico earlier this year pursuant to a U.S. request for his provisional arrest with a view toward extradition.

Guzman Lopez, also known as "El Raton" and "Raton Nuevo," is charged in the Northern District of Illinois with five-counts in a nine-count superseding indictment alleging that from 2008 to 2021, he engaged in a drug trafficking Continuing Criminal Enterprise (CCE), along with additional drug, money laundering, and firearm offenses. Guzman Lopez is charged with conspiring to distribute narcotics from Mexico and elsewhere for importation into the U.S.  He pleaded not guilty to the charges during his arraignment today before U.S. District Judge Sharon Johnson Coleman in Chicago. He waived his right to a detention hearing and was ordered to remain detained without bond.

The charges stem from a decades-long collaboration between the Justice Department's Narcotic and Dangerous Drug Section and prosecutors from the Northern District of Illinois and Southern District of California, as well as their law enforcement partners. Guzman Lopez is one of the sons of Joaquin Guzman Loera, also known as "El Chapo," who was convicted by a jury in the Eastern District of New York for his role as the leader of the Sinaloa Cartel. Following Guzman Loera’s arrest in January 2016 and his subsequent extradition to the United States, Guzman Lopez and his three brothers and co-defendants - IVAN ARCHIVALDO GUZMAN SALAZAR, JESUS ALFREDO GUZMAN SALAZAR, and JOAQUIN GUZMAN LOPEZ, collectively known as “the Chapitos” - allegedly assumed their father’s role as leaders of the Sinaloa Cartel. The Chapitos subsequently amassed greater control over the Sinaloa Cartel by allegedly threatening and causing violence, the indictment alleges.

Under the terms of the U.S.-Mexico extradition treaty, the United States had up to 60 days to present a fully supported request, one in compliance with the terms of the treaty. The United States submitted that request in February 2023. A Mexican court reviewed the U.S. request and last month favorably recommended his extradition. The Foreign Ministry reviewed the decision and similarly concluded that Guzman Lopez should be extradited to the United States. The three co-defendants remain at large.

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Nicole M. Argentieri, Acting Assistant Attorney General of the Justice Department’s Criminal Division, Luis Quesada, Assistant Director of the FBI’s Criminal Investigative Division, Katrina W. Berger, Executive Associate Director of Homeland Security Investigations, and Anne Milgram, Administrator of the U.S. Drug Enforcement Administration. Substantial assistance in the investigation was provided by IRS Criminal Investigation, the Justice Department’s Office of International Affairs and Office of Enforcement Operations, and the U.S. Marshals Service. The government is represented by Assistant U.S. Attorneys Andrew Erskine and Erika Csicsila of the Northern District of Illinois, Assistant U.S. Attorney Matthew Sutton of the Southern District of California, and Trial Attorney Kirk Handrich of NDDS.

The case is 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 Justice Department thanks the Government of Mexico, including the Mexican Foreign Ministry and the Mexican Attorney General’s Office, for the extradition of Ovidio Guzman Lopez. Earlier today, U.S. Attorney General Merrick B. Garland spoke by phone with Mexico’s Attorney General, Alejandro Gertz Manero, to personally express his gratitude. 

The public is reminded that an indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Guzman Lopez et al indictment

CHICAGO — A suburban Chicago man has been sentenced to six and a half years in federal prison for dealing crack cocaine and illegally possessing a loaded handgun.

In 2020 and 2021, LARRY DENNIS conducted a drug-dealing operation from his residence in Markham, Ill.  When a customer arrived outside of the home, Dennis would typically approach the customer or their vehicle to deliver baggies of narcotics in exchange for cash.  In December 2020, Dennis pointed a gun at a man during a drug-debt dispute in the driveway of Dennis’s home.

Law enforcement in January 2021 conducted a court-authorized search of Dennis’s residence and discovered cocaine, marijuana, drug packaging materials, and a loaded handgun.  Dennis had previously been convicted of multiple state felonies, including firearm offenses, and was not lawfully allowed to possess the gun.

Dennis, 39, pleaded guilty earlier this year to a federal drug charge.  U.S. District Judge Sharon Johnson Coleman imposed the sentence Monday 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; Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Daniel Delaney, Chief of the Midlothian, Ill., Police Department.  Valuable assistance in the investigation was provided by the Markham Police Department, Dolton, Ill., Police Department, and Orland Park, Ill., Police Department.  The government was represented by Assistant U.S. Attorney Saurish Appleby-Bhattacharjee. 

CHICAGO — A member of a Chicago street gang has been sentenced to six years in federal prison for retaliating against two witnesses who were cooperating with the government in a criminal investigation into the gang’s activities.

JAVION BUSH, 23, pleaded guilty earlier this year to an obstruction of justice charge.  Bush admitted in a plea agreement that in 2021 he posted an image on Facebook that named the two cooperating individuals and contained a note stating, “All rats must di (sic).”  Bush tagged the Facebook accounts of the cooperators in his posting.  Bush also threatened one of the cooperators in a direct communication to him on Facebook Messenger, stating, “All rats must die.”

The two cooperators had previously testified before a federal grand jury that was investigating a Chicago street gang faction known as the Goonie Boss/Goonie Gang, of which Bush was a member.  Bush learned the identities of the cooperators after viewing a law enforcement report that had been provided to another Goonie member who was being prosecuted by the State of Illinois for murder.

The federal investigation of the Goonie gang spanned several years and resulted in the convictions of numerous members and associates, including three Goonie leaders who were convicted this summer of racketeering conspiracy.  The jury in that trial found that members of the gang were liable for six murders while terrorizing the Englewood neighborhood on Chicago’s South Side.

U.S. District Judge John Robert Blakey sentenced Bush on Aug. 30, 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, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Fred Waller, Interim Superintendent of the Chicago Police Department.

“Without witnesses, the truth about an incident will never be found,” Assistant U.S. Attorney Albert Berry III argued in the government’s sentencing memorandum.  “Witnesses should be protected at all costs and threatening them should be sanctioned swiftly and severely.”

CHICAGO — A suburban Chicago chiropractor has been indicted on federal fraud charges for allegedly billing a private insurer for nonexistent services.

SEUNG HAN LIM owned and operated Movement Health and Rehab, also known as Motu Chiropractic and Motu Chiromassage, in Libertyville, Ill.  From 2016 to 2019, Lim submitted fraudulent claims to Blue Cross Blue Shield of Illinois for purported health care services that Lim knew were not actually provided, according to an indictment unsealed today in U.S. District Court in Chicago.  Some of the fraudulent claims were for services purportedly provided on dates when either Lim or the patient were not in Illinois, the indictment states.  Other claims submitted by Lim were for services purportedly rendered by another chiropractor to Lim and Lim’s family members, even though Lim knew that those services were not actually provided by the other chiropractor and that BCBS would have denied the claims had Lim been identified as the rendering provider because the insurer prohibited claims from providers for services rendered to the provider or their immediate family members, the indictment states.

When BCBS attempted to audit Lim’s claims, he prepared false patient medical records and other documents and submitted them to BCBS, the indictment states.

As a result of the scheme, Lim and his clinic fraudulently obtained at least $430,000 from BCBS, the indictment states.

The indictment charges Lim, 40, of Lincolnshire, Ill., with 14 counts of health care fraud.  Each count is punishable by up to ten years in federal prison.  Lim was scheduled to make an initial court appearance this afternoon before U.S. Magistrate Judge Gabriel A. Fuentes.

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 Irene Lindow, Special Agent-in-Charge of the Great Lakes Region of the U.S. Department of Labor, Office of the Inspector General.  The government is represented by Assistant U.S. Attorneys Paige Nutini and Jasmina Vajzovic.

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.

Lim indictment

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

A jury in U.S. District Court in Chicago found TIMOTHY MAPES, 68, of Springfield, Ill., guilty of one count of making false declarations before a grand jury and one count of attempted obstruction of justice.  U.S. District Judge John F. Kness set sentencing for Jan. 10, 2024.  The obstruction of justice conviction is punishable by up to 20 years in federal prison, while the false declaration conviction carries a maximum sentence of five years.

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 Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorneys Julia Schwartz and Diane MacArthur.

“Perjury and obstruction of justice are serious offenses that strike at the heart of the truth-seeking mission of the grand jury,” said Acting U.S. Attorney Pasqual.  “This conviction should stand as a clear message to witnesses who choose to violate their oath to tell the truth before a grand jury that they will be held accountable.”

"There is no justice without truth,” said FBI SAC Wheeler.  “Attempts to undermine the prosecutorial process chip away at trust in our institutions, and this conviction shows that we continue to work with our partners to ensure the integrity of our judicial system."

“Citizens should expect that former public officials will maintain their integrity and be truthful even when it is inconvenient,” said IRS-CI SAC Campbell.  “The investigation that resulted in this conviction is a testament to IRS-CI’s and our law enforcement partners’ commitment to ensuring that individuals who do not testify truthfully in the grand jury will be brought to justice.”

Evidence presented at the nearly three-week 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 drug trafficking investigation has resulted in charges against ten individuals for allegedly trafficking fentanyl-laced heroin and other drugs on the South Side of Chicago.

The multi-year investigation, led by the DEA Chicago Field Division and the Chicago High Intensity Drug Trafficking Area program, utilized undercover and controlled narcotics purchases, covert surveillance operations, and wiretapped communications to shut down a drug trafficking operation.  Criminal complaints filed in federal court in Chicago allege that the defendants were affiliated with the Gangsters Disciples, a Chicago street gang.  The traffickers allegedly used a designated cellular telephone to receive and service narcotics orders, with various defendants taking shifts working the phone to distribute narcotics.

Most of the defendants were arrested Tuesday and have begun making initial appearances in U.S. District Court in Chicago.  Law enforcement on Tuesday also executed court-authorized searches of multiple locations in Chicago. 

The charges and arrests 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 Field Division of the DEA, Nicholas J. Roti, Executive Director of Chicago HIDTA, and Fred Waller, Interim Superintendent of the Chicago Police Department.  Valuable assistance was provided by the U.S. Marshals Service.  The government is represented by Assistant U.S. Attorneys Alejandro G. Ortega and Edward Liva.

The case is 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.

Three complaints charge ten individuals with federal narcotics violations:

U.S. v. Ware, et al, 23 CR 409

Charged in this federal drug conspiracy are KEVIN WARE, 49, of Chicago, CHRISTOPHER WARE, 45, of Chicago, BRANDAN ALLEN, 31, of Chicago, RICKY WILLIAMS, 37, of Chicago, DARREL BROOKS, 51, of Chicago, LEROY PRESLEY, 49, of Riverdale, Ill., and ERNEST ROWLETTE, 49, of Chicago.

The charges allege that Kevin Ware led a trafficking organization and oversaw its operation, including managing the potency and supply of the narcotics it sold.  He allegedly held discussions with dealers regarding best practices for interacting with customers and what types of deals to offer them.  Kevin Ware also allegedly obtained information from his dealers about their interactions with law enforcement.  Soon after two law enforcement seizures of suspected narcotics last year, Williams and other dealers reported the incidents to Kevin Ware, the complaint states.

The conspirators allegedly utilized a residence in Chicago’s West Pullman neighborhood as a “stash house” to store narcotics and cash.  In 2021 and 2022, undercover law enforcement officers and cooperating sources made approximately 44 controlled purchases of narcotics from members of Kevin Ware’s organization, the charges allege.

U.S. v. Pearson, et al, 23 CR 422

Kevin Ware is also charged in a second federal drug case, along with MICHAEL PEARSON, 49, and JAMIE PEARSON, 46, both of Chicago. 

According to the charges, the defendants distributed fentanyl and fentanyl-laced heroin.  Michael Pearson allegedly conducted several drug deals in Chicago’s Pullman and West Roseland neighborhoods.  One of the alleged deals occurred in May 2021 in a delicatessen in the 10700 block of South Michigan Avenue, where Michael Pearson arranged for the sale of heroin mixed with fentanyl and methamphetamine, the complaint states.  Unbeknownst to Michael Pearson, the buyer was cooperating with law enforcement, the complaint states.

U.S. v. Allen, 23 CR 408

Charged with distributing fentanyl and fentanyl-laced heroin is REGINALD ALLEN, 22, of Chicago.  Reginald Allen allegedly sold the drugs on the South Side of Chicago on several occasions in 2021 and 2022.

~~~

The public is reminded that complaints contain only charges and are 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.

Allen complaint Pearson et al complaint Ware et al complaint

CHICAGO — A former Illinois Department of Children and Family Services social worker and 14 others have been indicted on federal charges for allegedly participating in a scheme to fraudulently obtain $3.2 million in state funds intended for childcare services.

A 41-count indictment unsealed Wednesday in U.S. District Court in Chicago alleges that SHAUNTELE Y. PRIDGEON orchestrated the fraud scheme from 2016 to 2022 while serving as a Community Social Service Planner for DCFS in Chicago.  Pridgeon fraudulently entered the information of several of her co-defendants into the DCFS computer system and approved them to be paid as providers caring for foster children, the indictment states.  Pridgeon directed at least $3.2 million in State of Illinois funds to the co-defendants and others, each of whom agreed to receive the money even though they knew that no foster children were actually in their care, the indictment states.  The co-defendants and others then paid bribes and kickbacks to Pridgeon totaling approximately $1.6 million, the indictment states.  Pridgeon allegedly used the bribe money to pay personal expenses, including gambling losses at a casino in Hammond, Ind.

The indictment accuses each of Pridgeon’s co-defendants of accepting various amounts of state money for the nonexistent childcare services.  For example, LATASHA THOMAS received more than $1.6 million and TRACEY JERVIER received more than $695,000, the indictment states.  RONNIE WEBB received more than $228,000, which was paid via checks made payable to “Webb Feet Child Care Inc.,” a bogus company that listed its address as Webb’s residence, the indictment states.

Charged with honest services wire fraud are Pridgeon, 54, of Chicago; Thomas, 48, of Chicago; Jervier, 60, of Chicago; Webb, 57, of South Holland, Ill.; TAHNDREA N. HARPER, 50, of Chicago; JOI SANDERSON, 49, of Frankfort, Ill.; KELLI PAYNE, 49, of Hammond, Ind.; NIKKI GIOVANNI HOUSTON, 53, of Chicago; SHENITA MCGARY, 37, of Chicago; SHERRI BAINES, 45, of Chicago; KEICHA L. LACEY, 50, of Country Club Hills, Ill.; CHRISTINA A. DAVIS, 54, of Chicago; MARISSA TERRY, 36, of Frankfort, Ill.; ARAMIS COLLIER, 39, of Chicago; and AUNSHEREE NELSON, 44, of Chicago.

Most of the defendants were arrested Wednesday and have begun making initial appearances in federal court in Chicago.   

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; Brendan F. Kelly, Director of the Illinois State Police; and Ann McIntyre, Inspector General of DCFS.  The government is represented by Assistant U.S. Attorneys John D. Mitchell, Bradley A. Tucker, and Christine M. O’Neill.

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.

Pridgeon et al indictment

CHICAGO — A federal judge in Chicago has sentenced a man to eight years in prison for laundering illegal drug proceeds in the United States on behalf of traffickers in Mexico.

MIGUEL SALINAS SALCEDO served as a Mexico-based “peso broker” who arranged with drug traffickers to trade pesos that he controlled in Mexico for the cash proceeds in the U.S.  Salinas Salcedo and others worked to pick up the cash in the U.S., deposit it into various bank accounts, and make corresponding quantities of pesos available to the traffickers in Mexico.  Some of the cash pickups occurred in Chicago, Lansing, Ill., and Countryside, Ill.

Unbeknownst to Salinas Salcedo, two individuals to whom he subcontracted the work of picking up the cash were actually undercover law enforcement officers.  From 2019 to 2021, the undercover officers accepted approximately 24 cash-pickup assignments set up by Salinas Salcedo for a total of approximately $2.9 million.  Beyond the assignments the officers accepted, Salinas Salcedo offered them 103 other assignments that would have totaled approximately $17.9 million.  Evidence in the case showed that Salinas Salcedo worked with other partners and did not rely exclusively on the undercover officers to pick up the cash.

Salinas Salcedo, 42, of Sinaloa, Mexico, pleaded guilty earlier this year to a money laundering conspiracy charge.  U.S. District Judge Sharon Johnson Coleman imposed the sentence Monday 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, Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago, and Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago.

The case is 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.

“These weren’t just one-off transactions that defendant conducted; he was in the business of laundering funds,” Assistant U.S. Attorney Andrew C. Erskine argued in the government’s sentencing memorandum.  “The drugs that were sold to generate the funds at issue undoubtedly caused harm to individuals within the United States both directly and indirectly.”

CHICAGO — Three former board members of the failed Washington Federal Bank for Savings in Chicago have pleaded guilty in federal court to conspiring to falsify bank records to deceive the Office of the Comptroller of the Currency.

WILLIAM M. MAHON, 56, of Chicago, and GEORGE F. KOZDEMBA, 73, of Fort Myers, Fla., pleaded guilty to the conspiracy charge during a hearing Monday before U.S. District Judge Virginia M. Kendall.  Mahon’s guilty plea also included a tax offense for willfully filing false income tax returns.  Last week, JANICE M. WESTON, 65, of Orland Park, Ill., pleaded guilty to the conspiracy charge.  Judge Kendall set sentencings for Oct. 20, 2023, for Weston; Dec. 11, 2023, for Mahon; and Dec. 12, 2023, for Kozdemba.  The conspiracy charge is punishable by up to five years in federal prison.  The additional tax offense against Mahon is punishable by up to three years.

Mahon, Kozdemba, and Weston were members of Washington Federal’s Board of Directors.  Weston also served as the bank’s Senior Vice President and Compliance Officer.  Washington Federal was closed in 2017 after the OCC determined that the bank was insolvent and had at least $66 million in nonperforming loans.  A federal investigation led to criminal charges against 16 defendants, including charges against the bank’s Chief Financial Officer, Treasurer, and other high-ranking employees, for conspiring to embezzle at least $31 million in bank funds.  Eight defendants have pleaded guilty or entered into agreements to cooperate with the government.

Much of the money was transferred to Chicago attorney ROBERT M. KOWALSKI and other individuals outside the bank without all of the required documentation and often without any documentation whatsoever.  A jury earlier this year convicted Robert Kowalski on embezzlement and fraud charges.  He is awaiting sentencing.

Robert Kowalski’s sister, JAN R. KOWALSKI, also an attorney, pleaded guilty and was sentenced in June to more than three years in federal prison for fraudulently enabling her brother to conceal more than $357,000 from creditors and the trustee in his bankruptcy case.

Last year, Chicago attorney PATRICK D. THOMPSON was convicted by a jury 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.  Thompson was sentenced to four months in federal prison.    

When the OCC was evaluating Washington Federal’s loan portfolio prior to its failure, Mahon, Weston, Kozdemba, and others 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 guilty pleas were 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 Brian Netols, and Special Assistant U.S. Attorney Jeffrey Snell.

CHICAGO — A suburban Chicago man has been indicted on federal firearm charges for allegedly trafficking 25 “Glock switches” that convert handguns into fully automatic machine guns.

The indictment charges ANTHONY PRISCO, 20, of Oak Forest, Ill., with illegally possessing and transferring machine guns and illegally possessing a firearm as a previously convicted felon.  Prisco has been ordered detained in federal custody without bond.  Arraignment is set for Aug. 7, 2023, at 12:00 p.m., before U.S. Magistrate Judge Heather K. McShain.

The charges were 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.  The Joliet Metropolitan Area Narcotics Squad provided valuable assistance.  The government is represented by Assistant U.S. Attorney Simar Khera.

According to the indictment and a criminal complaint filed in U.S. District Court in Chicago, Prisco in June of this year sold 25 machine gun conversion devices, a firearm with an obliterated serial number, and a 3D printer.  Unbeknownst to Prisco, the buyer was an undercover law enforcement officer.  The printer that Prisco sold to the officer had been used to print the machine gun conversion devices, the charges allege.  A machine gun conversion device, commonly known as a “Glock switch” or “auto sear,” equips firearms to fire multiple rounds with a single pull of the trigger.

Prisco was on probation for a state firearm conviction when he allegedly sold the guns to the undercover officer.  As a previously convicted felon, Prisco was prohibited by federal law from possessing a firearm.

Disrupting illegal firearms trafficking is a centerpiece of the Department of Justice’s cross-jurisdictional strike force aimed at reducing gun violence.  As part of the Chicago firearms trafficking strike force, the U.S. Attorney’s Office collaborates with ATF and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.

Holding illegal firearm possessors accountable through federal prosecution is also a focus of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy.  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.

The public is reminded that an indictment contains only charges and 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 against Prisco is punishable by up to 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.

Prisco indictment

CHICAGO — A physician assistant who formerly worked at a Chicago medical practice has been charged in federal court with fraudulently writing opioid prescriptions.

HARRY PRZEKOP allegedly used a deceased doctor’s name and prescription forms to write prescriptions for himself and a relative.  An indictment returned in U.S. District Court in Chicago states that Przekop fraudulently obtained prescriptions of hydrocodone and codeine in 2021 and 2022 in Batavia, Ill., and North Aurora, Ill.  Przekop was not a licensed physician and could not lawfully prescribe medications without the direction and approval of licensed doctors. 

The indictment charges Przekop, 69, of Batavia, Ill., with five counts of fraudulently obtaining controlled substances.  Each count is punishable by up to four years in federal prison.  Przekop pleaded not guilty during his arraignment Wednesday in federal court.  U.S. District Judge Andrea R. Wood scheduled a status hearing for Sept. 22, 2023.

The indictment 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 government is represented by Special Assistant U.S. Attorney Benjamin J. Christenson.

Przekop indictment

CHICAGO — A federal drug trafficking investigation has resulted in charges against a dozen individuals for allegedly trafficking fentanyl-laced heroin, cocaine, or other drugs on the South Side of Chicago.

The multi-year investigation, led by the FBI Chicago Field Office, utilized numerous controlled narcotics purchases, covert surveillance operations, and wiretapped communications to shut down two separate drug trafficking operations.  Some of the defendants allegedly supplied or sought to supply drugs to customers in other states, including Wisconsin, Minnesota, and Ohio.  One of the defendants allegedly possessed a loaded semiautomatic handgun while engaged in his drug trafficking activities. 

During the investigation, law enforcement seized nearly $400,000 in suspected illicit cash proceeds, distribution quantities of cocaine, heroin, and marijuana, Bentley and Mercedes-Benz automobiles, and a custom-built motorcycle.

Most of the defendants were arrested Friday or early this week and have begun making initial appearances in U.S. District Court in Chicago.  Law enforcement also recently executed court-authorized searches of multiple locations in Chicago. 

The charges and arrests were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Kenneth A. Polite, Jr., Assistant Attorney General for the Justice Department’s Criminal Division, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Fred Waller, Interim Superintendent of the Chicago Police Department.  Valuable assistance was provided by the Cook County State's Attorney's Office, Rock County (Wisc.) Sheriff's Office, and the Indiana State Police.  The government is represented by Assistant U.S. Attorneys Saurish Appleby-Bhattacharjee and Thomas P. Peabody of the Northern District of Illinois, and Trial Attorney Gerald A.A. Collins of the Justice Department’s Organized Crime and Gang Section.

The case is 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.

Criminal complaints unsealed in federal court in Chicago charge two separate drug trafficking organizations, as well as an individual who allegedly distributed cocaine.

U.S. v. Johnson, et al, 23 CR 412

Charged in this federal drug conspiracy are RONALD JOHNSON, 57, of Darien, Ill., SULSTINE BROWN ROBINSON, 69, of Chicago, CHARLES LAWRENCE, 48, of Chicago, and DARRELL JONES, 58, of Chicago.  Lawrence is also charged with possessing a firearm in furtherance of drug trafficking activities.

TROY BONAPARTE, 58, of Chicago, is charged with possessing cocaine and marijuana with the intent to distribute.

The charges allege that Johnson is a large-scale supplier of multiple narcotics, including cocaine and marijuana.  Law enforcement observed Johnson making several cocaine sales in the summer and fall of 2022, the complaint states.  The conspirators allegedly utilized an apartment in Chicago’s Oakland neighborhood as a “stash house” to store narcotics and cash.  During a meeting outside the stash house in December 2022, Johnson allegedly provided a woman with approximately $300,500 in suspected drug proceeds.  The cash was stuffed into a duffel bag that law enforcement later seized from the woman, the complaint states.

In January 2023, law enforcement in Rock County, Wisc., stopped a vehicle Robinson was driving and discovered that she had transported approximately seven kilograms of suspected cocaine from Chicago.  Law enforcement seized the drugs, which were packaged in six individual bricks and wrapped in green cellophane, the complaint states.

U.S. v. Donley, et al, 23 CR 413

Charged in this federal drug conspiracy are DEREK DONLEY, 29, KENDALL BANKS, 31, NIGER GRAY, 25, JAMARI MC NEAL, 29, and APRIL THOMAS, 60, all of Chicago. 

BYRON MURPHY, 39, of Chicago, is charged with distributing fentanyl-laced heroin.

According to the charges, the conspirators distributed and intended to distribute fentanyl-laced heroin, cocaine, and marijuana on the South Side of Chicago.  Donley allegedly conducted several drug deals in the 7700 block of South Yates Boulevard in Chicago’s South Shore neighborhood.  One of the alleged deals occurred in April 2022 and involved the distribution by Donley to Mc Neal of approximately 100 grams of substances that later tested positive for fentanyl, the complaint states.

U.S. v. Toney, 23 CR 424

Charged with distributing cocaine is CHANTELL TONEY, 37, of Chicago.  Toney allegedly sold crack cocaine on the South Side of Chicago on several occasions in 2022 and 2023.  One of the deals occurred last month in an apartment in Chicago’s South Shore neighborhood, the complaint states.

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The public is reminded that complaints contain only charges and are 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.

Johnson et al complaint Donley et al complaint Toney complaint

Twelve defendants were arrested on complaints in a multi-year, multi-state investigation for trafficking fentanyl-laced heroin, cocaine, and other drugs in Chicago, Illinois, and surrounding states.

Most of the defendants were arrested on July 28 and have begun making initial appearances in Chicago. 

The FBI Chicago Field Office led the investigation, which utilized numerous controlled narcotics purchases, covert surveillance operations, and wiretapped communications to shut down two separate drug trafficking operations. Some of the defendants allegedly supplied or sought to supply drugs to customers in other states, including Wisconsin, Minnesota, and Ohio. One of the defendants allegedly possessed a loaded semiautomatic handgun while engaged in his drug trafficking activities. During the investigation, law enforcement seized nearly $400,000 in suspected illicit cash proceeds, cocaine, heroin, and marijuana, Bentley and Mercedes-Benz automobiles, and a custom-built motorcycle.

The criminal complaints charge two separate drug trafficking organizations, as well as an individual who allegedly distributed cocaine:

United States v. Johnson, et al.

The first complaint charges Ronald Johnson, 57, of Darien, Illinois; Sulstine Brown Robinson, 69, of Chicago; Charles Lawrence, 48, of Chicago; and Darrell Jones, 58, of Chicago, with federal drug conspiracy. Lawrence is also charged with possessing a firearm in furtherance of drug trafficking activities. Troy Bonaparte, 58, of Chicago, is charged with possessing cocaine and marijuana with the intent to distribute.

According to court documents, Johnson is allegedly a large-scale supplier of multiple narcotics, including cocaine and marijuana. His co-conspirators allegedly utilized an apartment in Chicago’s Oakland neighborhood as a “stash house” to store narcotics and cash. In December 2022, during a meeting outside the stash house, Johnson allegedly supplied a woman with a duffel bag that contained approximately $300,500 in suspected drug proceeds. Law enforcement later seized the cash and duffel bag from the woman.

In January 2023, law enforcement in Rock County, Wisconsin, stopped a vehicle Robinson was driving and discovered that she had transported approximately seven kilograms of cocaine from Chicago. Law enforcement seized the drugs, which were packaged in six individual bricks and wrapped in green cellophane.

United States v. Donley, et al.

The second complaint charges Derek Donley, 29; Kendall Banks, 31; Niger Gray, 25; Jamari Mc Neal, 29; and April Thomas, 60, all of Chicago, with federal drug conspiracy. The complaint also charges Byron Murphy, 39, also of Chicago, with distributing fentanyl-laced heroin.

According to court documents, the defendants distributed and intended to distribute fentanyl-laced heroin, cocaine, and marijuana in the South Side of Chicago. Donley allegedly conducted several drug deals in Chicago’s South Shore neighborhood. One of the alleged deals occurred in April 2022 and involved Donley’s distribution of approximately 100 grams of substances containing fentanyl to Mc Neal.

United States v. Toney

A third complaint charges Chantell Toney, 37, of Chicago, with distribution of cocaine on April 6. According to court documents, Toney allegedly sold crack cocaine on the South Side of Chicago on several occasions in 2022 and 2023. One of the deals allegedly occurred as recently as July in an apartment in Chicago’s South Shore neighborhood.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois, Special Agent in Charge Robert W. “Wes” Wheeler Jr. of the FBI Chicago Field Office, and Interim Superintendent Fred Waller of the Chicago Police Department made the announcement.

The FBI Chicago Field Office and Chicago Police Department are investigating the case, with valuable assistance provided by the Cook County State’s Attorney’s Office, Rock County (Wisconsin) Sheriff’s Office, and the Indiana State Police. 

Trial Attorney Gerald A.A. Collins of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Saurish Appleby-Bhattacharjee and Thomas P. Peabody for the Northern District of Illinois are prosecuting the case.

The case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) 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.

A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

ROCKFORD — A Roscoe, Ill. man has been sentenced to nearly nine years in federal prison for trafficking cocaine and fentanyl and possessing a firearm in furtherance of his drug trafficking activities.

XZAVIOR SMITH, 24, pleaded guilty earlier this year to knowingly and intentionally possessing the cocaine and fentanyl with the intent to distribute, and possessing a Glock 19 pistol in furtherance of a drug trafficking crime.  U.S. District Judge Iain D. Johnston in Rockford sentenced Smith to eight years and ten months in federal prison.

On June 14, 2021, Freeport Police Department officers attempted to execute a traffic stop on Smith’s vehicle.  Smith refused to pull over, then accelerated and ignored traffic signs while fleeing towards Durand, Ill.  Shortly thereafter, the Stephenson County Sheriff’s Department attempted to stop Smith on Route 75.  Smith did not stop and again accelerated, reaching speeds of up to 113 miles per hour.  Eventually, Smith pulled into a private driveway and fled on foot, discarding bags containing cocaine and fentanyl and a loaded Glock pistol with an extended magazine loaded with 29 rounds of ammunition.  Smith was located by pursuing members of law enforcement.

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 Stephenson County Sheriff’s Office, the Freeport Police Department, the Roscoe Police Department, and the Beloit, Wisc., Police Department’s Crime Interdiction Team.  The government was represented by Assistant U.S. Attorney Robert S. Ladd.

CHICAGO — A member of a violent Chicago street gang has been sentenced to 50 years in federal prison for participating in a criminal organization that murdered rivals and violently protected a drug-dealing operation on the West Side of Chicago.

As a member of the Wicked Town faction of the Traveling Vice Lords street gang, DAVID ARRINGTON murdered two people, shot and wounded two others, and served as the driver when fellow gang members murdered a man and attempted to murder another.  Arrington, 33, of Chicago, pleaded guilty last year to a federal racketeering conspiracy charge.  U.S. District Judge Thomas M. Durkin sentenced Arrington after a hearing Wednesday in federal court in Chicago.

Arrington was among 13 defendants convicted as part of a multi-year investigation into the gang’s criminal activities.  The investigation resulted in the seizures of more than 45 firearms, approximately 1,000 rounds of ammunition, approximately 17 kilograms of cocaine, approximately seven kilograms of heroin, and approximately 100 grams of crack cocaine.  The federal probe revealed that Wicked Town gang members engaged in numerous acts of violence, including Arrington’s two murders and at least 17 others, as well as numerous attempted murders, armed robberies, and assaults.  Wicked Town members regularly promoted their violent enterprise on social media, where they taunted rivals and boasted about murders and other acts of violence.

The gang operated primarily in Chicago’s Austin neighborhood, where members maintained “trap houses” to store firearms and illegal narcotics, including cocaine and heroin.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Fred Waller, Interim Superintendent of the Chicago Police Department.  Substantial assistance was provided by the FBI, IRS Criminal Investigation Division, Illinois State Police, U.S. Drug Enforcement Administration, Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, and the Chicago High Intensity Drug Trafficking Area program (HIDTA).  The government is represented by Assistant U.S. Attorneys John D. Mitchell, Jimmy L. Arce, Meghan C. Morrissey, and Beth E. Palmer.

This case is part of an Organized Crime Drug Enforcement Task Force operation.  OCDETF identifies, disrupts, and dismantles criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against alleged criminal networks.

CHICAGO — A suburban Chicago doctor and his surgical center will pay more than $750,000 to the United States to settle a civil lawsuit accusing them of submitting fraudulent claims to Medicare and a federal employee health program.

The suit in U.S. District Court in Chicago alleged that JOHN A. GREAGER, II and CANCER THERAPY ASSOCIATES, S.C. violated the False Claims Act by performing multiple mole removal procedures on patients on a single date but submitting or causing the submission of claims to Medicare and the Federal Employees Health Benefits Program (FEHBP) that made it appear as though the procedures had been performed on multiple dates.  Through this practice, known as “unbundling,” Greager and CTA caused Medicare and the FEHBP to pay more than they would have paid if the procedures had been billed as having occurred at the same visit.

As part of a settlement agreement approved this week by U.S. District Chief Judge Rebecca R. Pallmeyer, Greager and CTA agreed to pay $757,879.90 to the United States.  The settlement resolves a civil lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act.  The 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 settlement.

The settlement 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; Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago; and Conrad J. Quarles, Deputy Assistant Inspector General for Investigations of the U.S. Office of Personnel Management Office of the Inspector General.  The government was represented by Assistant U.S. Attorney Virginia Hancock.

A separate criminal prosecution of Greager resulted in a 6-month prison sentence and a fine of $1 million.

U.S. v. Greager et al settlement agreement

CHICAGO — A suburban Chicago man has been sentenced to four years in federal prison for assisting in the illegal sales of two firearms.

JEFFREY GREER, 57, of North Aurora, Ill., assisted a relative in selling a shotgun and a revolver to an individual in the fall of 2019.  Unbeknownst to Greer, the buyer was cooperating with law enforcement.  Greer helped negotiate the terms of the deal during a meeting in his relative’s home in North Aurora, Ill., and then transported the guns to the cooperating individual’s truck.

Greer pleaded guilty earlier this year to a federal charge of dealing firearms without a license.  U.S. District Judge Sara L. Ellis imposed the sentence after a hearing July 13, 2023, 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 U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives and the Addison, Ill., Police Department provided valuable assistance.  The government was represented by Assistant U.S. Attorney Patrick Mott.

Disrupting illegal firearms trafficking is a centerpiece of the Chicago Firearms Trafficking Strike Force, the Department of Justice’s cross-jurisdictional strike force aimed at reducing gun violence.  As part of the Chicago Strike Force, the U.S. Attorney’s Office collaborates with FBI, ATF, and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.

Holding illegal firearm dealers accountable through federal prosecution is also a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy.  In the Northern District of Illinois, the U.S. Attorney’s Office has deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.

CHICAGO — A suburban Chicago physician has been sentenced to a federal prison term for prescribing opioids to patients without a medical examination and then billing Medicare for the purported treatment.

ELIZA DIACONESCU, 74, of Lake Forest, Ill., pleaded guilty earlier this year to a federal health care fraud charge.  U.S. District Judge Steven C. Seeger on Wednesday sentenced Diaconescu to six months in federal prison and ordered her to pay $84,031 in restitution to Medicare.

Diaconescu admitted in a plea agreement that from 2016 to 2021, she pre-signed prescriptions for hydrocodone, oxycodone, and fentanyl for patients of her pain clinic in Gurnee, Ill., so that the prescriptions could be provided to patients when Diaconescu was not at the clinic.  Diaconescu and others at the clinic created false paperwork indicating that Diaconescu had face-to-face exams with the patients, when, in fact, the patients had only come to pick up the pre-signed prescriptions and had not visited with Diaconescu.  Diaconescu then knowingly submitted false claims seeking reimbursement from Medicare for the purported exams, knowing that such exams did not occur. 

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, Sheila G. Lyons, Special Agent-in-Charge of the Chicago Division of the DEA, Mario Pinto, Special Agent-in-Charge 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.

The case was brought by the U.S. Attorney’s Office’s Opioid Task Force, which was formed in 2019 for the purpose of combatting the unlawful distributions of controlled substances. 

“The defendant’s fraudulent conduct was a gross abuse of the trust that Medicare places on medical providers to accurately bill for the work they have done,” Assistant U.S. Attorney Jared Hasten argued in the government’s sentencing memorandum.  “All of the money paid by Medicare should have gone towards providing medical services to beneficiaries.”