Northern District of Illinois

WASHINGTON - The Justice Department today announced charges unsealed in the Southern District of New York, Northern District of Illinois, and District of Columbia, against several leaders of the Sinaloa Cartel, a transnational drug trafficking organization based in Sinaloa, Mexico, and its facilitators across the globe. 

“Today, the Justice Department is announcing significant enforcement actions against the largest, most violent, and most prolific fentanyl trafficking operation in the world – run by the Sinaloa Cartel, and fueled by Chinese precursor chemical and pharmaceutical companies,” said Attorney General Merrick B. Garland. “Families and communities across our country are being devastated by the fentanyl epidemic. Today’s actions demonstrate the comprehensive approach the Justice Department is taking to disrupt fentanyl trafficking and save American lives.”

“The fentanyl crisis in America – fueled in large part by the Sinaloa cartel – threatens our public health, our public safety, and our national security,” said Deputy Attorney General Lisa O. Monaco. “Today’s indictments target every element of the Sinaloa Cartel's trafficking network and reflect the Justice Department's commitment to attacking every aspect of this threat: from the chemical companies in China that spawn fentanyl precursors, to the illicit labs that produce the poison, to the networks and money launderers and murderers that facilitate its distribution. Just as we have gone on offense against terrorists and cyber criminals around the globe, the Department is now waging a relentless campaign to disrupt the production and trafficking of fentanyl – before it can reach its victims.”

“Today’s indictments send a clear message to the Chapitos, the Sinaloa Cartel, and criminal drug networks around the world that the DEA will stop at nothing to protect the national security of the United States and the safety and health of the American people,” said DEA Administrator Anne Milgram. “The Chapitos pioneered the manufacture and trafficking of fentanyl – the deadliest drug threat our country has ever faced – flooded it into the United States for the past eight years and killed hundreds of thousands of Americans. Over the last year and a half, the DEA proactively infiltrated the Sinaloa Cartel and the Chapitos network, obtained unprecedented access to the organization’s highest levels, and followed them across the world. I am grateful to the men and women of the DEA for their exceptional work on this case, which is the beginning of our work as ‘One DEA’ to dismantle every part of the criminal cartels that are killing Americans at record rates.”

“Far too many Americans have become victims in the national fentanyl crisis. These cartels have shown us they will stop at nothing to manufacture, traffic, and push these dangerous drugs to every corner of our country,” said FBI Director Christopher Wray. “Today’s indictments show that the FBI and our law enforcement partners will never tire in our pursuit not only to shut down their criminal enterprises, but also to go after individuals in their network. I want to thank the FBI team continuing to work on these cases everyday as we join with our law enforcement partners to tackle this national epidemic.”

“This indictment is another example of how this administration is taking on the cartels and their transnational criminal networks, and sending a clear message that we are going to hold them accountable,” said Secretary of Homeland Security Alejandro N. Mayorkas. “I commend our workforce at Homeland Security Investigations and our federal partners who are relentless in their efforts to stop the scourge of fentanyl. Today’s announcement exemplifies a whole-of-government approach to protecting our homeland that is yielding results.”

The Sinaloa Cartel is one of the most powerful drug cartels in the world and is largely responsible for the manufacturing and importing of fentanyl for distribution in the United States. Fentanyl is a dangerous synthetic opioid that is more than 50 times more potent than heroin. Fentanyl is now the leading cause of death for Americans ages 18 to 49, and it has fueled the opioid epidemic that has been ravaging families and communities across the United States for approximately the past eight years. Between 2019 and 2021, fatal overdoses increased by approximately 94%, with an estimated 196 Americans dying each day from fentanyl.

The Sinaloa Cartel operated as an affiliation of drug traffickers and money launderers who obtain precursor chemicals – largely from China – for the manufacture of synthetic drugs, manufacture drugs in Mexico, move those drugs into the United States, and collect, launder, and transfer the proceeds of drug trafficking. Once led by Joaquin Guzman Loera, aka El Chapo, and Ismael Zambada Garcia, aka El Mayo, the Sinaloa Cartel’s members and associates – allegedly including the sons of Guzman Loera, collectively known as the Chapitos – smuggled significant quantities of drugs through Mexico and into the United States. The Chapitos are Ivan Guzman Salazar, 40, Alfredo Guzman Salazar, 37, Joaquin Guzman Lopez, 36, and Ovidio Guzman Lopez, 33.

Following Guzman Loera’s arrest in January 2016 and extradition to the United States in January 2017, the Chapitos allegedly assumed their father’s former role as leaders of the Sinaloa Cartel, along with Zambada Garcia and Damaso Lopez Nunez, aka Licenciado. The Chapitos subsequently amassed greater control over the Sinaloa Cartel by allegedly threatening and causing violence against Lopez Nunez, his family, and his associates and, as a result, became principal leaders and drug traffickers within the Sinaloa Cartel.

The indictments being unsealed today demonstrate that the Sinaloa Cartel has been engaged in drug trafficking activities into the United States, and violence, spanning over a decade and a half.  The Chapitos are alleged to have repeatedly and consistently transported lethal amounts of cocaine, heroin, methamphetamine, and fentanyl. 

The Chapitos allegedly used cargo aircraft, private aircraft, submarines and other submersible and semi-submersible vessels, container ships, supply vessels, go-fast boats, fishing vessels, buses, rail cars, tractor trailers, automobiles, and private and commercial interstate and foreign carriers to transport their drugs and precursor chemicals. They allegedly maintained a network of couriers, tunnels, and stash houses throughout Mexico and the United States to further their drug-trafficking activities. The Chapitos allegedly used these networks to import the drugs into the United States. 

Southern District of New York

Fentanyl trafficking, weapons, and money laundering charges were unsealed today in the Southern District of New York against 28 defendants, including three of the Chapitos; top lieutenants and leadership of the Sinaloa Cartel; alleged manufacturers and distributors of the Sinaloa Cartel’s fentanyl; the managers of the violent armed security apparatus that protects the Sinaloa Cartel’s drug trafficking operations; the sophisticated money launderers who repatriate the Sinaloa Cartel’s drug proceeds back to Mexico; and multiple chemical precursor suppliers in China that fuel the Sinaloa Cartel’s fentanyl distribution operation. 

According to court documents, Ivan Guzman Salazar, Alfredo Guzman Salazar, Ovidio Guzman Lopez, and their co-conspirators allegedly controlled extensive, multi-faceted, and international operations covering the fentanyl trade. Through these efforts, the Chapitos and the Sinaloa Cartel allegedly reaped hundreds of millions of dollars in profits by flooding the United States with fentanyl. 

Seven defendants are in custody pending extradition proceedings.

Ovidio Guzman Lopez is charged in a separate indictment alleging the same offenses.

The DEA investigated the case with assistance from the Department of Treasury’s Office of Foreign Assets Control and the Department of State’s Rewards for Justice Program.

Assistant U.S. Attorneys Kyle A. Wirshba, Nicholas S. Bradley, Sarah L. Kushner, David J. Robles, and Alexander Li for the Southern District of New York are prosecuting the case. The Justice Department’s Office of International Affairs (OIA) provided substantial assistance.

Northern District of Illinois

Narcotics, money laundering, and firearms charges were unsealed today in the Northern District of Illinois against four of the Chapitos: Ivan Guzman Salazar, Alfredo Guzman Salazar, Joaquin Guzman Lopez, and Ovidio Guzman Lopez.

According to court documents, the charges stem from a decades-long, collaborative, multi-district effort between the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS), the Northern District of Illinois, the Southern District of California, and their law enforcement partners. The indictment alleges that between May 2008 and April 5, 2023, the Chapitos operated a drug trafficking Continuing Criminal Enterprise (CCE), along with additional drug, money laundering, and firearms charges.

Ovidio Guzman Lopez is charged in a separate indictment alleging the same offenses, dating from May 2008 until October 2021, when Mexican authorities arrested him on Jan. 5 in Culiacan, Sinaloa, Mexico. Ovidio Guzman Lopez remains detained in Mexico pending extradition proceedings. 

The FBI Washington Field Office and San Diego Field Office, Homeland Security Investigations Nogales Office, DEA’s Chicago Division and San Diego Division, and IRS Criminal Investigations Chicago Office are investigating the case.

Acting Deputy Chief Katharine Wagner and Trial Attorney Kirk Handrich of NDDS, Assistant U.S. Attorneys Andrew Erskine and Erika Csicsila for the Northern District of Illinois, and Assistant U.S. Attorney Matthew Sutton for the Southern District of California are prosecuting the case. OIA provided substantial assistance.

This case is supported by the Organized Crime Drug Enforcement Task Forces (OCDETF).

District of Columbia

Narcotics, firearms, and witness retaliation charges were unsealed today in the District of Columbia against Nestor Isidro Perez Salas, aka Nini, 31, allegedly one of the Chapitos’ lead sicarios, or assassins.

According to court documents, Perez Salas is allegedly a leader and commander of the “Ninis,” a violent group charged with providing security for the Chapitos. From at least 2012 until February 2021, Perez Salas allegedly conspired to distribute and manufacture cocaine and methamphetamine for unlawful importation into the United States, used a firearm in furtherance of the alleged drug-trafficking offense, and killed, attempted to kill, threatened, and caused bodily injury to another to intimidate a government witness and informant.   

The FBI Washington Field Office is investigating the case.

Trial Attorneys Kirk Handrich and Kate Naseef of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.

This case is supported by the OCDETF.

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The U.S. Department of State, through its Narcotics Rewards Program, is offering rewards of up to $10 million for information leading to the arrest and/or conviction of Ivan Guzman Salazar, Alfredo Guzman Salazar, and Ovidio Guzman Lopez, and up to $5 million for information leading to the arrest and/or conviction of Joaquin Guzman Lopez.

Attorney General Merrick B. Garland, Deputy Attorney General Lisa O. Monaco, FBI Director Christopher A. Wray, DEA Administrator Anne Milgram, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Damian Williams for the Southern District of New York, U.S. Attorney Randy Grossman of the Southern District for California, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois, and HSI made the announcement.

Photos of the fugitives can be obtained at www.dea.gov/fugitives.

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

CHICAGO — A high-level member of the Four Corner Hustlers street gang has been sentenced to 120 months, plus eight years of supervised release, for conspiracy to distribute wholesale quantities of heroin on the West Side of Chicago.

RAYMOND BETTS, 56, of Riverdale, a so-called “prince” of a nationwide violent street gang, was charged with conspiracy to possess a controlled substance with the intent to distribute in May of 2019.  On eight occasions from December 2018 to March 2019, Betts or a co-conspirator acting on his behalf distributed 136.4 grams of heroin to a law enforcement confidential source.  Seven of the distributions occurred in the Austin neighborhood of Chicago, while one deal was allegedly conducted in south suburban Riverdale.  Throughout his interactions with the confidential source, Betts discussed his plans to expand his drug trafficking enterprise, specifically into Northern Indiana.  Betts pleaded guilty to one count of conspiracy to distribute heroin in January of 2023.

Betts’ fellow gang members and co-conspirators ANGELA BELL, 52, of Chicago, and MAURICE WILLIAMS, aka “Big Fella”, “Big Ride” and, “Naz”, 54, of Riverdale both pleaded guilty to one count of conspiracy to distribute heroin.  Williams’ sentencing date is set for July 14, 2023.  Bell’s sentencing date is set for May 26, 2023.

The sentence is 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; Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Thomas J. Dart, Cook County Sheriff; and Eric Carter, Acting Superintendent of the Chicago Police Department.  Assistant U.S. Attorney Megan DeMarco represented the government.

The multi-year investigation that led to Betts’ arrest was conducted with the Organized Crime Drug Enforcement Task Force (OCDETF) and the High Intensity Drug Trafficking Area Task Force (HIDTA).  The mission of the task forces, which are comprised of agents and officers from numerous federal, state and local law enforcement agencies, is to identify, disrupt, and dismantle the most serious drug trafficking organizations.

CHICAGO — The former payroll manager for a Chicago museum pleaded guilty today in federal court to misappropriating more than $2 million in museum funds.

According to the written plea agreement, from 2007 to 2020, MICHAEL MAURELLO, 56, of Beach Park, siphoned money from the museum’s payroll account to his personal bank accounts by falsely designating the payments as legitimate compensation to other employees.  In his plea agreement, Maurello admitted that he kept spreadsheets and notes to track the misappropriated money so that he could later make reversals within the payroll system to hide his fraudulent scheme.  When the museum’s assistant controller asked Maurello in January 2020 about one of the payments, Maurello falsely stated that the transaction had been a test of the payroll system.  Maurello then edited and altered a report from the payroll system to conceal information about the misappropriated funds.

Sentencing has been set for September 14, 2023.  Maurello faces a maximum sentence of 20 years in prison followed by up to 3 years on supervised release.  Maurello may also be sentenced to pay a fine of up to $250,000, or twice the gross gain or loss from his offense, whichever is greater, and he must be sentenced to pay restitution to the museum of $2,308,772.

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

CHICAGO — A suburban Chicago nurse has pleaded guilty in federal court to one count of tampering with a consumer product.  

SARAH DIAMOND, 30, of Woodstock was employed as the Assistant Director of Nursing at a Chicago-area medical rehabilitation center where she was responsible for dispensing medications to patients.  In July and August 2021, Diamond removed morphine from bottles prescribed to patients and replaced it with another liquid, knowing the diluted substance would be dispensed to the patients.   Diamond removed the morphine with reckless disregard and extreme indifference for the risk that the patients would be placed in danger of bodily injury.

Diamond diluted a bottle of morphine intended for one of the patients, so that it contained only approximately 26% of the declared amount of morphine; and diluted a bottle of morphine intended for another patient so that it contained only approximately 53% of the declared amount of morphine.  Diamond then administered liquid morphine to these patients using the diluted bottles, withholding the remainder of the pain medication intended for them for her own personal use.  In total, Diamond removed liquid morphine intended for use by at least five patients at the rehabilitation center, each of whom had been prescribed liquid morphine to manage their pain.

A sentencing date has not yet been scheduled.  Diamond faces up to a maximum of ten years in federal prison.

The plea is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; and Ronne G. Malham, Special Agent-in-Charge of the Chicago Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations.  Valuable assistance was provided by the Crystal Lake Police Department.  The government is represented by Assistant U.S. Attorney Heidi Manschreck.

A federal jury convicted three former executives of Outcome Health, a Chicago-based health technology start-up company, for their roles in a fraud scheme that targeted the company’s clients, lenders, and investors and involved approximately $1 billion in fraudulently obtained funds.

The individuals convicted by jury verdict today were:

• Rishi Shah, 37, the co-founder and former CEO of Outcome Health (Outcome), which was founded in 2006 and known as Context Media prior to January 2017;
• Shradha Agarwal, 37, the former president of Outcome, who was described as a co-founder; and
• Brad Purdy, 33, the former chief operating officer and chief financial officer.

Outcome installed television screens and tablets in doctors’ offices around the United States and then sold advertising space on those devices to clients, most of whom were pharmaceutical companies. According to evidence presented at trial, Shah, Agarwal, and Purdy sold advertising inventory the company did not have to Outcome’s clients, then under-delivered on its advertising campaigns. Despite these under-deliveries, the company still invoiced its clients as if it had delivered in full. Shah, Agarwal, and Purdy lied or caused others to lie to conceal the under-deliveries from clients and make it appear as if the company was delivering advertising content to the number of screens in the clients’ contracts. Purdy and others at Outcome also inflated metrics that purported to show how frequently patients engaged with Outcome’s tablets installed in doctors’ offices. According to the trial evidence, the scheme targeting Outcome’s clients began in 2011, lasted until 2017, and resulted in at least $45 million of overbilled advertising services.

Shah, Agarwal, and Purdy were also convicted of defrauding Outcome’s lenders and investors. The under-delivery to Outcome’s advertising clients resulted in a material overstatement of Outcome’s revenue for the years 2015 and 2016. The company’s outside auditor signed off on the 2015 and 2016 revenue numbers because Purdy caused others to fabricate data to conceal the under-deliveries from the auditor. Shah, Agarwal, and Purdy then used the inflated revenue figures in Outcome’s 2015 and 2016 audited financial statements to raise $110 million in debt financing in April 2016, $375 million in debt financing in December 2016, and $487.5 million in equity financing in early 2017.

Shah, Agarwal, and Purdy lied to investors and lenders to conceal their ongoing under-delivery of advertising campaigns for clients. Shah and Purdy also misrepresented to investors the efficacy of Outcome’s advertising campaigns by concealing the fact that it had failed to meet return-on-investment commitments to clients.  

The $110 million debt financing resulted in a $30.2 million dividend to Shah and a $7.5 million dividend to Agarwal; the $487.5 million in equity financing resulted in a $225 million dividend to Shah and Agarwal.

Three other former employees of Outcome pleaded guilty prior to trial. Ashik Desai, the former chief growth officer pleaded guilty to one count of wire fraud; and Kathryn Choi, a former senior analyst, and Oliver Han, a former analyst, both pleaded guilty to conspiracy to commit wire fraud. Desai, Choi, and Han will be sentenced at a date to be determined.

Shah was convicted of five counts of mail fraud, 10 counts of wire fraud, two counts of bank fraud, and two counts of money laundering. Agarwal was convicted of five counts of mail fraud, eight counts of wire fraud, and two counts of bank fraud. Purdy was convicted on five counts of mail fraud, five counts of wire fraud, two counts of bank fraud, and one count of false statements to a financial institution. The defendants face a maximum penalty of 30 years in prison for each count of bank fraud and 20 years in prison for each count of wire fraud and mail fraud. Purdy faces a maximum penalty of 30 years in prison for the count of false statements to a financial institution. Shah faces a maximum penalty of 10 years in prison for each count of money laundering. A sentencing hearing will be scheduled at a date to be determined. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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, Assistant Inspector General for Investigations Shimon Richmond of the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG), and Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the Federal Bureau of Investigation.

Assistant Chiefs William E. Johnston and Kyle C. Hankey of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Matthew F. Madden and Saurish Appleby-Bhattacharjee for the Northern District of Illinois are prosecuting the case.

“The defendants’ vast scheme damaged the clients, investors, and lenders who supported their business. Although they sought to hide the fraud by silencing whistleblowers and duping auditors, the jury today rightly held the defendants accountable for the losses they caused, which total hundreds of millions of dollars,” said Acting U.S. Attorney Pasqual. “Today’s verdicts demonstrate that this Office and its law enforcement partners will work tirelessly and dedicate the resources necessary to deliver justice for the victims of complex fraud schemes.”

“The scope of this fraud scheme is staggering, with almost $1 billion in victim losses. Today’s conviction is a fitting reminder that deceptive and illegal business practices have very real consequences" said Special Agent-in-Charge Wheeler.

"Today's conviction holds these defendants accountable for deceiving Outcome Health's clients, and fraudulently obtaining approximately $1 billion from its lenders and investors," said Assistant Inspector General Richmond. "The FDIC-OIG remains committed to working with our law enforcement partners to investigate and bring to justice those who harm lenders, investors, and clients by committing such fraudulent acts."  

A federal jury convicted three former executives of Outcome Health, a Chicago-based health technology start-up company, for their roles in a fraud scheme that targeted the company’s clients, lenders, and investors and involved approximately $1 billion in fraudulently obtained funds.

The individuals convicted by jury verdict today were:

• Rishi Shah, 37, the co-founder and former CEO of Outcome Health (Outcome), which was founded in 2006 and known as Context Media prior to January 2017;
• Shradha Agarwal, 37, the former president of Outcome, who was described as a co-founder; and
• Brad Purdy, 33, the former chief operating officer and chief financial officer.

Outcome installed television screens and tablets in doctors’ offices around the United States and then sold advertising space on those devices to clients, most of whom were pharmaceutical companies. According to evidence presented at trial, Shah, Agarwal, and Purdy sold advertising inventory the company did not have to Outcome’s clients, then under-delivered on its advertising campaigns. Despite these under-deliveries, the company still invoiced its clients as if it had delivered in full. Shah, Agarwal, and Purdy lied or caused others to lie to conceal the under-deliveries from clients and make it appear as if the company was delivering advertising content to the number of screens in the clients’ contracts. Purdy and others at Outcome also inflated metrics that purported to show how frequently patients engaged with Outcome’s tablets installed in doctors’ offices. According to the trial evidence, the scheme targeting Outcome’s clients began in 2011, lasted until 2017, and resulted in at least $45 million of overbilled advertising services.

Shah, Agarwal, and Purdy were also convicted of defrauding Outcome’s lenders and investors. The under-delivery to Outcome’s advertising clients resulted in a material overstatement of Outcome’s revenue for the years 2015 and 2016. The company’s outside auditor signed off on the 2015 and 2016 revenue numbers because Purdy caused others to fabricate data to conceal the under-deliveries from the auditor. Shah, Agarwal, and Purdy then used the inflated revenue figures in Outcome’s 2015 and 2016 audited financial statements to raise $110 million in debt financing in April 2016, $375 million in debt financing in December 2016, and $487.5 million in equity financing in early 2017.

Shah, Agarwal, and Purdy lied to investors and lenders to conceal their ongoing under-delivery of advertising campaigns for clients. Shah and Purdy also misrepresented to investors the efficacy of Outcome’s advertising campaigns by concealing the fact that it had failed to meet return-on-investment commitments to clients.  

The $110 million debt financing resulted in a $30.2 million dividend to Shah and a $7.5 million dividend to Agarwal; the $487.5 million in equity financing resulted in a $225 million dividend to Shah and Agarwal.

Three other former employees of Outcome pleaded guilty prior to trial. Ashik Desai, the former chief growth officer pleaded guilty to one count of wire fraud; and Kathryn Choi, a former senior analyst, and Oliver Han, a former analyst, both pleaded guilty to conspiracy to commit wire fraud. Desai, Choi, and Han will be sentenced at a date to be determined.

Shah was convicted of five counts of mail fraud, 10 counts of wire fraud, two counts of bank fraud, and two counts of money laundering. Agarwal was convicted of five counts of mail fraud, eight counts of wire fraud, and two counts of bank fraud. Purdy was convicted on five counts of mail fraud, five counts of wire fraud, two counts of bank fraud, and one count of false statements to a financial institution. The defendants face a maximum penalty of 30 years in prison for each count of bank fraud and 20 years in prison for each count of wire fraud and mail fraud. Purdy faces a maximum penalty of 30 years in prison for the count of false statements to a financial institution. Shah faces a maximum penalty of 10 years in prison for each count of money laundering. A sentencing hearing will be scheduled at a date to be determined. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Morris Pasqual for the Northern District of Illinois, and Assistant Inspector General for Investigations Shimon Richmond of the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG) made the announcement.

The FBI and FDIC-OIG investigated the case.

Assistant Chiefs William E. Johnston and Kyle C. Hankey of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Matthew F. Madden and Saurish Appleby-Bhattacharjee for the Northern District of Illinois are prosecuting the case.

CHICAGO — A federal superseding indictment unsealed today charges a sixth alleged member or associate of the O-Block street gang with participating in a criminal organization that murdered a Chicago rapper and violently protected the gang and its territories on the South Side of Chicago.

The original indictment alleges that the O-Block gang publicly claimed responsibility for acts of violence in Chicago and used social media and music to increase their criminal enterprise.  The O-Block gang allegedly engaged in numerous acts of violence, including the murder of Carlton Weekly, a Chicago rapper also known as “FBG Duck,” on Aug. 4, 2020.

RALPH TURPIN, also known as “Tall” and “Teezy”, 33, of Chicago has been added to the case, charged with one count of committing murder in aid of racketeering and one count of conspiracy to commit murder in aid of racketeering.  Turpin’s initial appearance occurred today before Magistrate Judge Sunil R. Harjani.  Turpin is currently in federal custody and a detention hearing has been set for April 12, 2023.

Charged in the original indictment in October of 2021, for committing murder in aid of racketeering and conspiracy to commit murder in aid of racketeering, are Chicago residents CHARLES LIGGINS, also known as “C Murda,” 30; KENNETH ROBERSON, also known as “Kenny” and “Kenny Mac,” 28; TACARLOS OFFERD, also known as “Los,” 30; CHRISTOPHER THOMAS, also known as “C Thang,” 22; and MARCUS SMART, also known as “Muwop,” 22.  The indictment also charges the original defendants with federal firearm violations and assaults in aid of racketeering.

The indictment was announced by Morris Pasqual, Acting United States Attorney for] the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the Federal Bureau of Investigation; and Eric Carter, Interim Superintendent of the Chicago Police Department.  Substantial assistance in the investigation was provided by the Cook County State’s Attorney’s Office. The government is represented by Assistant U.S. Attorneys Jason A. Julien, Albert Berry III, and Ann Marie Ursini.

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 count in the indictment carries a mandatory minimum sentence of life in federal prison and a maximum potential sentence of the death penalty.  One of the firearm counts is also punishable by a maximum potential sentence of the death penalty, while the other firearm count is punishable by a mandatory minimum of ten years and a maximum of life.  The assault counts are each punishable by a maximum of twenty years.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

ROCKFORD — A DeKalb man was sentenced on Thursday for the robbery of a Jimmy John’s in DeKalb and Heartland Bank and Trust in Sycamore.  

U.S. District Judge Iain D. Johnston sentenced KEVIN HAGEMEIER, 26, to almost eight and a half years in prison.  Hagemeier pleaded guilty in December of 2022 to two counts of Hobbs Act Robbery.   

According to the guilty plea, Hagemeier entered the Jimmy John’s and presented a note to the employee that stated “This Is A Robbery I have a gun in my waist Don’t make me use it and You’ll be able to go home.  Give me all the money in the drawer or else some bad thing may happen.” After receiving the money in the register, Hagemeier entered a car driven by an accomplice and left the scene of the robbery.  A couple days later, Hagemeier entered Heartland Bank with a similar note stating “I have a weapon. Get $1,400 out of your drawer and give it to me. If I think you told someone or pushed a button, people will get hurt.”  Hagemeier received the money and left with the same accomplice from the Jimmy John’s robbery. 

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; and Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The DeKalb Police Department assisted in the investigation.  The government was represented by Assistant U.S. Attorney Robert S. Ladd.

CHICAGO — Two federal judges have sentenced DESHAWN DANZELR, 28, of Chicago to a combined eight years in federal prison for possessing a handgun with an extended magazine and a “switch” that converted the firearm into a fully automatic machinegun.

Less than six months after his discharge from prison on supervised release for a federal contempt conviction, Chicago Police Officers stopped Danzler while driving in the Auburn-Gresham neighborhood of Chicago.   Danzler, who had a handgun hidden in his crotch, attempted to flee and struggled with the officers for over two minutes before the officers recovered the firearm.  Danzler pled guilty to one count of unlawful possession of a firearm by a felon in October 2022.

At the time of his sentencing, Danzler had four previous felonies, including the contempt of court conviction.  In 2015, a rival gang member shot Danzler in the head, wrist, and thigh, and killed Danzler’s neighbor.  Danzler could identify the shooter but did not cooperate in the police investigation.  Four years later, Danzler refused to testify about the shooting in a federal grand jury investigation and was convicted of criminal contempt of court in proceedings before U.S. District Court Judge Ronald A. Guzman. 

A sentence of 62-months was imposed by U.S. District Court Thomas M. Durkin on February 24, 2023 for the firearms charge.  On April 6, 2023 Danzler was back in court before Judge Guzman for sentencing on his supervised release violation. Judge Guzman sentenced Danzler to 37-months to run consecutive to the sentence given by Judge Durkin, for a total of eight years and three months of imprisonment.

The sentences are announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Christopher Amon, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Eric Carter, Acting Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorney Charles Mulaney and Albert Berry III.

“Although he was a victim in the 2015 shooting, that is no longer a basis for lenience” argued Assistant U.S. Attorney Charles Mulaney in the government’s sentencing memo.  “Rather than find other ways to protect himself, defendant squandered the ‘last chance’ that Judge Guzman gave to him. By carrying a machinegun on supervised release, and resisting the officers’ efforts to recover it safely, defendant demonstrated that he is a danger to the community.”

CHICAGO — A federal judge in Chicago has sentenced the ringleader of a mail and identity theft conspiracy to nine years in federal prison for stealing U.S. Postal Service (USPS) customer’s credit cards out of the mail and using their personal identifying information to make unauthorized purchases with the stolen cards.

DAVEY HINES, 30, of Naperville was indicted by a federal grand jury on 1 count of conspiracy to defraud the United States, 1 count of theft or receipt of stolen mail, 4 counts of unauthorized access device fraud, and 4 counts of aggravated identity theft in February 2021 for events which occurred between June 2018 and December 2019.  Hines was indicted alongside 10 other individuals involved in the scheme as the result of a multi-agency investigation dubbed “Operation Cash on Delivery.”  The investigation identified USPS employees who stole credit cards and other financial instruments and provided them to Hines and others in exchange for cash or other items of value.  Hines, who also recruited most of the USPS employees, then worked with his co-defendants to unlawfully obtain the USPS customers’ personal identifying information, including dates of birth and Social Security numbers, and fraudulently activate the stolen cards.  Over the course of the 19-month conspiracy, Hines and his co-conspirators stole more than 657 credit cards and made more than $462,719 in fraudulent purchases.

Hines plead guilty to 4 counts charging conspiracy, receipt of stolen mail, access device fraud, and aggravated identity theft on July 8, 2022.  On April 3, 2023, U.S. District Court Judge Edmond E. Chang sentenced Hines to 108 months in federal prison, to be followed by 3 years of supervised release, and ordered Hines pay restitution to the victim financial institutions that issued the stolen credit cards.  Hines committed the offenses while on court-supervised release following a prior federal conviction for bank fraud in 2015. 

The sentence is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Ruth M. Mendonça, Inspector-in-Charge of the Chicago Office of the U.S. Postal Inspection Service; Scott Pierce, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Central Area Field Office; and Sean Fitzgerald, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations. The government was represented by Special Assistant U.S. Attorney Peter Madriñan and Assistant U.S. Attorneys Paige Nutini and Kirsten Moran.

A federal judge in Chicago held the City of Chicago liable for violating the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act by failing to provide accessible pedestrian signals at signalized intersections throughout the city to those who are blind or have low vision.

In April of 2021, the Justice Department moved to intervene in a disability discrimination lawsuit that people with visual disabilities brought against the City under the ADA and the Rehabilitation Act. The United States’ complaint in intervention alleged that the city fails to provide people who are blind, have low vision or are deaf-blind with equal access to pedestrian signal information at intersections. Pedestrian signal information, such as a flashing “Walk/Don’t Walk” signal, indicates when it is safe to cross the street for sighted pedestrians.

Accessible pedestrian signals (APSs) are devices that provide pedestrians with safe-crossing information in a non-visual format, such as through audible tones, speech messages and vibrotactile surfaces. Since at least 2006, Chicago has recognized the need to install APSs for pedestrians with visual disabilities, specifically identifying the need for such installation in multiple city documents. Yet, while Chicago currently provides sighted pedestrians visual crossing signals at nearly 2,800 intersections, the United States’ suit alleged that — at the time it intervened — fewer than one percent of those were equipped with APSs for people who are blind or have low vision.

On March 31, U.S. District Judge Elaine E. Bucklo sided with the United States and the private plaintiffs in a decision on both sides’ motions for summary judgment, holding the city in violation of the ADA and Section 504 of the Rehabilitation Act. The court found that the city had provided APS at only a “miniscule portion of the whole,” and thus had failed “to provide ‘meaningful access’ to its network of existing facilities and to ensure that newly constructed signals are designed and constructed in such a manner as to be ‘readily accessible’ by blind individuals.” The case is being handled for the U.S. Attorney’s Office by Assistant U.S. Attorneys Patrick Johnson and Sarah J. North as well as by the Civil Rights Division.

“Federal law offers people with visual disabilities the promise of full participation in community life, and safely navigating city streets is a critical part of that,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue pushing for a remedy that fully addresses the discrimination faced by blind people in Chicago.”

“As previously stated, the U.S. Attorney’s Office took action in this case in order to ensure that Chicagoans with disabilities are provided equal access to city services, particularly services where the primary focus is on public safety,” said Acting U.S. Attorney Pasqual for the Northern District of Illinois. “Our office remains committed to standing up for the rights of all those who reside in and visit the City of Chicago and all other communities across the Northern District of Illinois. We look forward to working with the City of Chicago to identify an appropriate remedy for the future.”

For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report.

CHICAGO — An Orland Park resident and owner of a sandwich shop in Plainfield has been charged with three counts of filing a false tax return.  

Per the information, HEYAM P. MALICK, 64, of Orland Park knowingly filed false tax returns with the Internal Revenue Service between the years 2016 to 2020.  Malick was the owner and sole employee of Smiley’s Gyros and Beef, located in Plainfield.  As charged in the information, Malick is accused of under reporting her income from the business by more than $725,000 over three years.

The charge is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois and Justin Campbell, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation in Chicago.  The government is represented by Assistant U.S. Attorney Thomas P. Peabody.

The public is reminded that an information contains only a charge and 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 charge of tax fraud carries a possible sentence of up to three years in federal prison on each count.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A California man has been charged with wire fraud in federal court in Chicago for defrauding multiple investors out of more than $23 million dollars as part of a fake investment scheme.

Per the information, from February 2021 through December 2022, SEAN GRUSD, 31, of California, is alleged to have devised and carried out a scheme to defraud investors in Dylan Ventures LLC, November Acquisitions SPV LLC, and December Acquisitions SPV LLC (collectively, "the Grusd Entities") out of more than $23 million dollars.  Grusd falsely represented that the victims’ money would be used to make investments in privately owned businesses.  Instead of making those investments, Grusd misappropriated the victims’ funds, using the money to pay personal expenses and purchase luxury items, including expensive cars, vacations, and real estate.

As part of his scheme, Grusd provided victims with false and forged documents, including fraudulent stock certificates that showed November Acquisitions had paid $50 million for shares in Company A; and that December Acquisitions had paid $100 million for shares in Company B; when, in fact, neither of those Grusd Entities purchased shares in either of those companies.  Additionally, Grusd provided one victim with a fabricated bank statement for December Acquisitions that he knew falsely reflected a balance of $133 million, when, in fact, the balance in that account was zero.

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

The public is reminded that an information contains only a charge and 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 charge of wire fraud carries a possible sentence of 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.

ROCKFORD — A South Beloit woman was convicted on Friday for her participation in a bail jumping conspiracy following a five-day jury trial in federal court in Rockford.  

According to the indictment and evidence at trial, PATRICIA WERSCHIN, aka PATRICIA FRISELLA, 56, conspired with others in June of 2016 to help her son, Adrian Peters, flee to Canada to avoid federal prosecution.  In July 2015, Peters was charged with sexual exploitation of minors, a crime that carried a 15-year mandatory minimum prison sentence. While the case was pending, Peters was on home confinement with a $15,000 cash bond and with Werschin acting as his third-party custodian. 

Werschin played a critical part in the conspiracy to help her son try to evade his federal charges by fleeing the country.  Instead of ensuring that her son abided by the conditions of pre-trial release, Werschin created fake identification documents for her son to use in Canada, worked with co-conspirators to recruit and pay others to drive her son to the border, and then arranged for court approval for her son to leave the house on June 28, 2016, under the pretext of a doctor’s appointment.  Werschin dropped her son off at Rock Cut State Park where he was then picked up and driven to the Canadian border by a co-conspirator.  Peters crossed into Canada on foot, but the coconspirator was stopped by border patrol as he pulled away from the crossing.  The coconspirator confessed what he knew of the plan and Peters was apprehended in Canada the next day.

Once Werschin learned that border patrol had stopped the co-conspirator, she immediately fled from her home in South Beloit.  Werschin traveled through multiple states, eventually crossing into Mexico.

Werschin faces a maximum potential penalty of up to 5 years imprisonment and a fine of $250,000.  The court must impose a reasonable sentence guided by the advisory United States Sentencing Guidelines.  Sentencing for Werschin is scheduled for June 16, 2023.  Sentencing for Werschin’s son, Adrian Peters, who was also charged in the conspiracy and previously pled guilty, is scheduled for June 30, 2016.  Peters previously pled guilty and was sentenced to 26 years’ imprisonment for the original criminal charge. 

The conviction was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; and Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The South Beloit Police Department, the United States Department of Homeland Security, the Canadian Border Patrol Services Agency, Illinois Secretary of State, and United States Marshal Service assisted in the investigation.

The government is represented by Assistant U.S. Attorneys Jessica S. Maveus, Talia M. Bucci, and Lisa Munch.  AUSA Mike Love and former AUSA Scott Paccagnini provided significant assistance during the investigation.

CHICAGO — A former owner of a home visiting physician company in suburban Chicago, who was previously convicted of theft from the Medicare program, has been ordered by a federal judge to pay more than $25 million in damages and penalties as the result of more than 4,000 violations of the False Claims Act.

AJIBOLA AYENI, 63, of Flossmoor, formerly operated DOCS AT THE DOOR, P.C., a home visiting physician company in Matteson, Illinois.  In 2017, the government intervened in a sealed whistleblower lawsuit that had been brought against him and other defendants in 2013.  The United States filed its own complaint-in-intervention against Ayeni and his wife, JOY H. TURNER-AYENI, 61, of Flossmoor, and their companies, including Docs at the Door, alleging that they had violated the federal False Claims Act by knowingly submitting claims for Medicare payments for services not rendered, services that were not medically necessary, and services that were “upcoded” to a higher level reimbursement than was appropriate or provided.  The allegations included that Ayeni and Docs at the Door had submitted thousands of claims for a Medicare service called care plan oversight, which they knew had not been provided.  Care plan oversight is a covered Medicare service, where a physician who has certified a plan of care for a home health patient spends an additional 30 minutes in a calendar month performing certain oversight functions that are not related to the certification itself or a face-to-face visit with the patient, which are separately billed.     

Also in 2017, Ayeni was charged in a related criminal case alleging care plan oversight fraud.  That case resolved in a guilty plea on August 22, 2019, when Ayeni pleaded guilty to one count of theft or embezzlement in connection with a health care benefit program.  In his plea, Ayeni specifically admitted that the Medicare program paid Docs at the Door approximately $523,600 from 2011 through June 2015 as the result of 4,367 false claims for the care plan oversight service that he, as the owner and authorized official of the business, knowingly caused to be submitted although he knew that care plan oversight service had not been rendered.  He also admitted that he instructed others to create false documentation to support those false claims for care plan oversight. 

On March 24, 2023, Chief U.S. District Judge Rebecca R. Pallmeyer granted summary judgment to the United States regarding the care plan oversight false claims in its civil case, holding that Ayeni and Docs at the Door are liable under the False Claims Act for those false care plan oversight claims to Medicare based upon Ayeni’s earlier guilty plea and his admissions within the plea agreement.  On March 28, 2023, the court entered judgment against Ayeni and Docs at the Door in the amount of $25,589,300, made up of $1,570,800 in treble damages and $24,018,500 in civil penalties.

The ruling is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Mario Pinto, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General.  The government is represented in its civil fraud case by Assistant U.S. Attorney Sarah North.  The government was represented in the criminal case against Ayeni by Assistant U.S. Attorneys Jeremy Daniel and Sarah North.

To combat fraud, the False Claims Act permits private individuals to sue for false claims on behalf of the government and to share in any recovery.  The Act also allows the government to intervene or take over the lawsuit, as it has done in this case, and to recover three times damages plus civil penalties, that ranged from $5,500 to $11,000 for each false claim submitted by the defendants during the fraud scheme in this case.

 

CHICAGO — The owner of a Chicago area construction company has been charged with one count of conspiracy to bribe a public official, and two counts of using a facility in interstate commerce (a cell phone) in order to facilitate the acts of bribery.

As noted within the information, from approximately 2016 to June 2019, ALEX NITCHOFF, 56, of Lemont, is alleged to have conspired with other individuals both known and unknown to bribe Lavdim Memisovski, an employee of the Cook County Assessor’s Office who performed the function of Commercial Group Leader.  As a commercial group leader, Memisovski assessed property values for Cook County commercial properties and reviewed property tax appeals for commercial properties.  Nitchoff, along with other individuals, provided Memisovski with home improvement materials, home improvement services, contracts for electrical work, jewelry, meals, sporting events tickets, and other items of value, intending to influence Memisovski in connection with his work as a Commercial Group Leader.  Memisovski, in return, ensured that appeals of property assessments related to Nitchoff and his business associates were routed to himself so that he could extend deadlines for the filing of appeals and reduce assessed property values.

The information is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois and Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The government is represented by Assistant U.S. Attorneys Vikas Didwania and Thomas P. Peabody.

The public is reminded that an information contains only a charge and 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 charge of bribery carries a possible sentence of up to five years in federal prison, and each charge of using a facility of interstate commerce carries a possible sentence of up to five years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A federal jury has found a suburban Chicago man guilty of three counts of bank robbery, three counts of using a firearm during a crime of violence, conspiracy to commit bank robbery, possessing a firearm as a convicted felon, and conspiracy to transfer a firearm to a felon.

As revealed at trial, between May 11 and May 31, 2018, JAMES D. WILLIAMS, 46, of Bartlett, along with a co-conspirator, robbed three banks: Second National Bank located at 323 East Norris Drive, Ottawa on May 11, Norstates Bank located at 5384 Grand Avenue, Gurnee on May 21, and Aurora Bank and Trust located at 2287 West Galena Boulevard, Aurora, on May 31.  Prior to the first robbery, Williams obtained an AK-47-style firearm, which he used in each of the three robberies.  A day after the second robbery, Williams’ wife, Jessica Sweeney Williams, purchased a handgun.  Williams used that handgun, as well as the rifle, in the third robbery.  During the third robbery, Williams discharged one of the firearms but did not cause any injuries.  Williams and his co-conspirator used disguises during each robbery and traveled in vehicles that were either rented or borrowed.

Sentencing has not yet been set before U.S. District Court Judge John Robert Blakey.  Williams faces a sentence of at least 24 years, up to life, in federal prison.  Williams’ co-conspirator, Alexis T. Handelman, 25, of Bartlett pled guilty to committing the bank robberies and is awaiting sentencing.  Williams’ wife, Jessica Sweeney Williams, pled guilty to providing a firearm to Williams and was sentenced to 24 months in prison by Judge Blakey.

The verdict is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois and Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the Federal Bureau of Investigation.  Valuable assistance was provided by Ottawa Police Department, Gurnee Police Department, Aurora Police Department, and Palatine Police Department.  The government was represented by Assistant U.S. Attorneys Scott Edenfield and Jasmina Vajzovic.

CHICAGO — A federal judge has sentenced a former Chicago Public Schools employee to 18 months of probation after he pleaded guilty to one count of making false statements to the Federal Bureau of Investigation.

PEDRO SOTO, 48, of Chicago admitted in a plea agreement that he intentionally misled the FBI while the agency was conducting a criminal investigation into Soto’s interactions with a lobbyist and the lobbyist’s colleague regarding the awarding of a custodial services contract valued at approximately $1 billion.  Soto was a member of a CPS evaluation committee tasked in 2016 with recommending to the Chicago Board of Education which company or companies CPS should hire to perform the services, and the lobbyist and the lobbyist’s colleague were assisting one of the companies bidding for the contract.  Soto admitted in the plea agreement that he repeatedly provided non-public information to the lobbyist’s colleague concerning the award of the contract, and that he had done so, in part, because the lobbyist’s colleague had promised to extend various benefits to Soto.  Soto further admitted that in 2019 he intentionally made false statements to the FBI when he denied having provided the lobbyist’s colleague with inside information about the awarding of the contract.

U.S. District Court Judge Sharon Johnson Coleman sentenced Soto 18 months of probation, along with a $3,000 fine and 100 hours of community service on March 16, 2023.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois and Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.  The Chicago Board of Education Inspector General’s Office provided valuable assistance.  The government is represented by Assistant U.S. Attorneys Amarjeet Bhachu and Michelle Kramer.

ROCKFORD — A federal judge has sentenced a Rockford man to a total of 10 years in federal prison for robbing banks in Rockford and Belvidere in 2021, and for violating his terms of supervised release.  U.S. District Judge Iain D. Johnston imposed the sentence on Thursday after a hearing in federal court in Rockford.

DEMONTRION DESHAN PHILLIPS, 29, was convicted after a jury trial in November 2022 of stealing $5,930 in a robbery of Midland States Bank, 1700 N. Alpine Rd. in Rockford, on Apr. 7, 2021, and $4,408 in a robbery of Midland States Bank, 600 S. State St. in Belvidere, on May 3, 2021.  Phillips committed the robberies while on court-supervised release following a prior federal conviction for robbing two banks in Rockford in 2017.

Phillips received an additional 24-month sentence for committing the robberies while on court-supervised release for his prior bank robbery conviction.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.; Carla Redd, Chief of the Rockford Police Department; and Shane Woody, Chief of the Belvidere Police Department.  The government is represented by Assistant U.S. Attorneys Talia Bucci and Vincenza L. Tomlinson.

CHICAGO — A federal grand jury has indicted an Indianapolis man on one count of bank robbery and one count of using a firearm in furtherance of a crime of violence after robbing a suburban Illinois bank in February.  

As noted within the indictment and the now unsealed criminal complaint, on February 16, 2023, ANTONIO MOORE, 25, of Indianapolis, IN robbed by force, violence, and intimidation a BMO Harris Bank located at 1050 Maple Avenue in Lisle, Illinois.  Moore is alleged to have brandished a firearm, pointing it at a bank employee and demanding the employee and another remove money from the bank’s vault.  Law enforcement tracked Moore’s location to a Chicago warehouse where he was arrested.  Moore has been in custody since.

The indictment is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois and Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.  Valuable assistance was provided by the Lisle Police Department, the Chicago Police Department, and the Villa Park Police Department.  The government is represented by Assistant U.S. Attorneys Sushma Raju.

The public is reminded that an indictment contains only a charge and 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 bank robbery charge carries a possible sentence of up to 20 years in federal prison, the firearms charge carries a possible sentence of up to life in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A federal judge has sentenced a former U.S. Postal Service employee to nine months in federal prison for stealing mail that he was entrusted with.

DIAMANTE WILLIAMS, 25, of Chicago was indicted by a federal grand jury on three counts of mail theft by a U.S. Postal employee in March 2022 for events which occurred in March and April 2018.  In September, 2022 Williams plead guilty to one count of mail theft.  As stated in William’s plea agreement, on or about March 28, he stole mail and contents of mail from individuals residing on his route in Morgan Park, including financial instruments.  Williams admitted to stealing a check intended for Company A in the amount of $1,274.

U.S. District Court Judge Martha M. Pacold sentenced Williams to nine months in federal prison on March 9, 2023.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Scott Pierce, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Central Area Field Office; and Ruth M. Mendonça, Inspector-in-Charge of the Chicago Office of the U.S. Postal Inspection Service.  The government is represented by Assistant U.S. Attorney Malgorzata Tracz Kozaka.

CHICAGO — A federal grand jury has indicted five Chicago area residents and one California resident with a drug trafficking conspiracy for both shipping methamphetamine through the mail and distributing methamphetamine in and around Chicago.

Charged in the indictment under count one are STEPHEN R. JENKINS, 44, of Chicago, KEITH R. MCCORMICK, also known as “Keith Lopez”, 51, of Sacramento, CA, DANIEL HEISE, 40, of Chicago, DONALD W. GRENIER, JR., 61, of Chicago, JOSE HERNANDEZ, 45, of Chicago, and WILLIAM F. KOCH, 36, of Chicago.  Jenkins, Heise, Koch, and Greiner, Jr. are also charged with additional drug trafficking counts, which occur on different dates, within the indictment.  Heise is also charged with possession of a firearm in furtherance of a drug trafficking offense.

As alleged in the indictment and the criminal complaint filed in February 2023, from February 2022 to February 2023, Jenkins and Heise directed McCormick to ship parcels containing methamphetamine via U.S. Mail from Sacramento, California to Chicago.  During their investigation, law enforcement identified more than 200 parcels suspected of containing methamphetamine, and recovered methamphetamine from at least ten parcels, including parcels addressed to Grenier, McCormick, Koch, Hernandez, and Heise.  Jenkins and Heise, along with other members of the drug trafficking organization, are alleged to have shipped narcotics proceeds back to McCormick via private shipping companies, including FedEx and UPS.

The indictment is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Ruth M. Mendonça, Inspector-in-Charge of the U.S. Postal Inspection Service (USPIS) in Chicago; Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; David Brown, Superintendent of the Chicago Police Department.  Valuable assistance was provided by the United States Attorney’s Office for the Eastern District of California, the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Forces located in Chicago and Sacramento, the USPIS’s High Intensity Drug Trafficking Area Task Force (HIDTA) Parcel Interdiction Regional Enforcement Team located in Chicago, USPIS’s Narcotics and Economic Crimes Investigations Task Force located in Sacramento, Homeland Security Investigations in Sacramento, and North Riverside Police Department, Illinois.  The government is represented by Assistant U.S. Attorney Elly Peirson. 

The public is reminded that an indictment contains only a charge and 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 drug trafficking counts carry penalties driven by the amount of methamphetamine each defendant is responsible for trafficking; they range from no less than 5 years up to life in federal prison.  For the firearms charge, Heise faces an additional penalty of five years in federal prison consecutive to the drug charges.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

This case is part of an OCDETF investigation.  OCDETF identifies, disrupts, and dismantles drug traffickers and other alleged criminal offenders 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 physician has been indicted by a federal grand jury in Chicago on thirteen counts of health care fraud for submitting fraudulent requests for reimbursement.

As alleged in the indictment, from February 2018 to April 2022, MONA GHOSH, 50, of Inverness, a licensed physician who owned and operated Progressive Women’s Healthcare, S.C. (Progressive) in Hoffman Estates, participated in a scheme to defraud the government programs of TRICARE and Medicaid, along with several private insurance companies.  The indictment alleges that Ghosh knowingly submitted fraudulent claims for reimbursement for services that were not provided and for services that were not medically necessary.  These included claims for purported telemedicine visits when Ghosh did not speak to the patient, claims for office visits and procedures when Ghosh did not see the patient, claims for procedures predicated on false diagnosis, and claims for medically unnecessary procedures and tests, including endometrial ablations and laboratory testing.  Ghosh fraudulently obtained, and caused Progressive to obtain, approximately $796,000 in fraudulent payments from multiple health care benefit programs for services that were not provided as billed.

The indictment is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Darrin K. Jones, Special Agent in Charge of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office; Mario Pinto, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General; and the Illinois Medicaid Fraud Control Unit.  The government is represented by Assistant U.S. Attorney Misty Wright and Kavitha Babu.

“Targeting government and private healthcare programs relied on by the public to maintain their well-being is a serious crime,” said Acting U.S. Attorney Pasqual. “In addition to submitting false claims, the allegation that defendant performed medically unnecessary procedures to enrich herself is particularly disturbing. This office will continue to work closely with our law enforcement partners to prosecute those who steal from healthcare programs and who needlessly put patients at risk.”

“When healthcare providers illegally manipulate our healthcare system, it diminishes the trust Americans have in vital programs. The FBI is proud to stand with our law enforcement partners and ensure justice is served” said Special Agent in Charge Wheeler.

“Health care providers who submit fraudulent claims for unnecessary and non-rendered services not only waste valuable taxpayer dollars, but also undermine the trust and confidence of their patients,” said Special Agent in Charge Pinto. “We will continue to work together with our law enforcement partners to ensure that individuals who commit fraud against our federal health care programs are held accountable.”

“Those who place profit before patient care, impacting the welfare of our service members and their families, must be held accountable,” said Special Agent in Charge Jones.  “DCIS proudly stands together with our law enforcement partners and the Department of Justice to root out fraud, waste, and abuse in the healthcare industry.”

The public is reminded that an indictment contains only a charge and 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.  Each count of health care fraud is punishable by up to 10 years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

If you or someone you know is a victim of Dr. Mona Ghosh or if you have any information, please contact the FBI at mg@fbi.gov.

CHICAGO — A suburban Chicago man has been indicted by a federal grand jury on ten counts of wire fraud and one count of theft of government funds for purportedly submitting fraudulent claims for reimbursement on tests which were never performed, were performed improperly, or were already paid for by the client. 

ZISHAN ALVI, 44, of Inverness co-owned and operated Laboratory A, a laboratory located in Chicago, Illinois.  Laboratory A purported to perform testing to detect for SARS-CoV-2 and offered two types of COVID-19 testing: PCR tests and antigen tests that delivered results within approximately 15 minutes (“rapid tests”).  Laboratory A also offered a service where individuals and companies could pay a fee to receive COVID-19 PCR test results in an expedited fashion.  

The Health Resources and Services Administration (“HRSA”) was an agency of the U.S. Department of Health and Human Services that oversaw and administered the funds appropriated through federal legislation to cover the costs of COVID-19 testing for individuals without health insurance coverage (“the HRSA Uninsured Program”).  As indicated in the indictment, Laboratory A enrolled in the HRSA Uninsured Program in or around December 2020.

From approximately February 2021 through February 2022, Alvi along with others, are alleged to have knowingly devised, intended to devise, and participated in a scheme to defraud the government by causing Laboratory A to submit fraudulent claims and delivering inaccurate and unreliable test results to the public.  The fraudulent claims sought reimbursement for purported tests when Alvi knew that (a) Laboratory A had not performed a test for COVID-19; (b) Laboratory A had modified a test for COVID-19 such that the results were unreliable; and (c) Laboratory A already had collected payment from the individuals who purportedly had been tested.

The indictment further alleges that Alvi caused Laboratory A to provide negative test results to be released to individuals who had provided a specimen for testing, but for whom a COVID-19 test had not been performed.  It is alleged that Alvi directed Laboratory A employees to falsely indicate in Laboratory A’s records that COVID-19 tests had been performed for these individuals, when Alvi knew that the test specimens had been discarded at his own direction and had not been tested.  It is further part of the scheme that, in order to conceal the fact that tests were not performed, Laboratory A did not release positive COVID-19 results on specimens where tests were eventually performed, because a purported negative result had already been released. 

It was further part of the scheme that, to reduce costs and increase Laboratory A’s profits, Alvi directed Laboratory A employees to alter Laboratory A’s PCR testing method by using less of the materials necessary to process the PCR test, including the reagents, knowing that this made the test results unreliable.

During its operation, Laboratory A obtained over $83 million from the HRSA Uninsured Program as payment for COVID-19 tests purportedly performed by Laboratory A.  Alvi is alleged to have transferred some of the fraudulently obtained HRSA funds from Laboratory A’s accounts to a personal account, and to have used the funds for personal expenditures, including for vehicle purchases and investments in stocks and cryptocurrency.  The indictment seeks forfeiture from the defendant of at least $6.8 million in alleged ill-gotten gains, in addition to five luxury vehicles and funds from other trade and investment accounts.

The indictment is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Mario Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; and Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. Substantial assistance was provided by the Illinois Attorney General’s Office.  The government is represented by Assistant U.S. Attorneys Jared Hasten, Misty Wright, and Trial Attorney Claire Sobczak from the Department of Justice’s Health Care Fraud Unit.

“The charges in this case allege that the defendant disregarded public health concerns in favor of personal financial gain. Doing so by compromising taxpayer-funded programs intended to fight the spread of coronavirus was particularly reprehensible” said Acting U.S. Attorney Pasqual.  “I commend the work of our law enforcement partners who investigated this complex fraud scheme. Our office will relentlessly continue to bring to justice those who defrauded the government’s pandemic relief initiatives.”

"The defendant defrauded the American people at a time when we were most vulnerable, in the midst of a global pandemic. This indictment shows that the FBI along with our law enforcement partners is continually working to keep Americans safe and uphold the Constitution as our mission demands of us," said Special Agent in Charge Wheeler.

“The defendant’s alleged conduct resulted in money unjustly obtained from Federal programs established during the COVID-19 pandemic to keep Americans safe, and also placed patients at risk through his role in the release of false COVID-19 test results,” said Special Agent-in-Charge Pinto.  “Our agency is committed to working with our law enforcement partners to ensure that those who defraud our federal health care programs and place patients at risk of harm are held accountable.”

“It is absolutely reprehensible that the defendant would use a public health crisis to allegedly defraud taxpayers and further put public health at risk by providing fraudulent COVID-19 test results,” Attorney General Kwame Raoul said. “I want to thank the United States Attorney for the Northern District of Illinois, the Chicago Office of the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of the Inspector General, and all of the law enforcement partners working to hold those who perpetrated this scheme accountable.”

The public is reminded that an indictment contains only a charge and 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.  Each count of wire fraud is punishable by up to 20 years in federal prison, and the count of theft of government funds is punishable by up to 10 years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A federal jury has found a former Illinois attorney and real estate developer guilty on two counts of embezzlement, six counts of bankruptcy fraud, and eight counts of tax fraud following a nearly four week-long trial in Chicago.

Evidence at trial revealed that ROBERT KOWALSKI, 61, of Chicago was a close associate of John Gembara, the former President of Washington Federal Bank for Savings (“WFBS”), a small bank in Chicago’s Bridgeport neighborhood which was closed in December 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.  Kowalski served a key role in the embezzlement scheme, specifically diverting from the bank more than $8 million, plus property which was rightly the collateral of the bank for other loans.  The embezzled funds that Kowalski received from WFBS were concealed by entering them on the bank’s records as loan disbursements.  However, WFBS never required Kowalski to repay these fraudulent loans.  Along with his co-conspirators, Kowalski was involved in the falsification of bank records and the recording of false financial transactions to shift real estate interests into his own name for financial benefit.  After the collapse of WFBS, the Federal Deposit Insurance Corporation attempted to collect on the money and properties that Kowalski obtained as part of the embezzlement scheme.  To avoid losing the assets, Kowalski filed a fraudulent bankruptcy case, in which he attempted to concealed numerous assets.  To substantiate the financial claims made within his bankruptcy filings, and avoid paying taxes, Kowalski filed false corporate returns in 2014 and 2015, and false personal returns in 2015, 2016, and 2017.  Kowalski failed to file returns in 2013 and 2014.

Sentencing has been set for June 2, 2023 before U.S. District Court Judge Virginia M. Kendall.  Kowalski could face a sentence of up to 82 years in federal prison.

The verdict was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Kathy A. Enstrom, 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. Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Andrea Peacock, Special Agent in Charge of the of the Department of the Treasury, Office of Inspector General; Deborah Witzburg, City of Chicago Inspector General; and Kathryn Richards, Chicago Housing Authority Inspector General.  Valuable assistance was provided by the U.S. Trustee Program.  The government was represented by Assistant U.S. Attorneys Jeremy Daniel, Kristin Pinkston, and Brian Netols, along with Special Assistant U.S. Attorney Jeffrey Snell.

CHICAGO — A federal grand jury has indicted a Chicago man on three counts of kidnapping, two counts of carjacking, and one firearms charge for offenses he committed while on pre-trial release for a previously charged federal gun offense.  Those convicted of committing a criminal offense while on pretrial release are subject to an enhanced criminal penalty.

The superseding indictment alleges that on February 27, March 8, and March 10, 2021 ANDREW ANANIA, 28, of Chicago, kidnapped the drivers of three vehicles, one on each date.  On two of the occasions, Anania also stole the victims’ motor vehicle with intent to cause death and serious bodily harm.  In October 2021, Anania was previously indicted on a kidnapping charge for the incident that occurred on March 8 during which he also sexually abused his victim.  Anania was arrested for this offense on March 13, 2021 and has been in custody since that time.

Prior to the conduct described in the superseding indictment, on February 15, 2019, while driving in the neighborhood of Little Village, Anania was stopped by Chicago Police Officers.  When officers attempted to approach Anania, he fled on foot through a residential neighborhood.  During the pursuit, officers observed Anania throw a firearm into a residential yard.  Officers arrested Anania and recovered the firearm a short time later.  Anania was indicted by a federal grand jury for being a felon in possession of a firearm on June 26, 2019, and a court later granted his request for pre-trial release. On October 14, 2021, Anania pleaded guilty to this firearms offense, and he was sentenced to 40 months’ imprisonment for that offense on February 14, 2022.

The indictment is announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and David Brown, Superintendent of the Chicago Police Department.  Substantial assistance was provided by the Darien Police Department, Cicero Police Department, Summit Police Department, and Stickney Police Department.  The government is represented by Assistant U.S. Attorney Cornelius Vandenberg.

The public is reminded that an indictment contains only a charge and 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.  Each count of kidnapping is punishable by up to life imprisonment, and each count of carjacking is punishable by up to 25 years in federal prison.  The charge of using, carrying, and brandishing a firearm during and relation to a crime of violence carries a maximum sentence of life imprisonment, as well as a mandatory sentence of at least 7 years’ imprisonment if the government proves that the firearm was brandished, which sentence must be served consecutive to any other sentence imposed. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A federal drug trafficking investigation has resulted in charges against 11 individuals for allegedly conspiring to distribute crack cocaine for the La Familia Stones street gang in the Chicago area, primarily in the Albany Park neighborhood on Chicago’s North Side. As part of the investigation, law enforcement shut down a telephone drug hotline, according to a criminal complaint recently unsealed in U.S. District Court in Chicago.

Charged in the criminal complaint, which was unsealed on March 2, 2023, is EDUART HOXHA, 35, of Chicago, also known as “Finn” and “White Boy,” ALEXIS DEL TORO, 24, of Elmwood Park, also known as “Tony,” FREDDY DEL TORO, 27, of Elmwood Park, also known as “Fredo” and “Ricky,” BRYAN DEL TORO, 22, of Elmwood Park, ALEX HERNANDEZ, 24, of Chicago, also known as “Joey” and “Biggie,” HADER GARCIA, 19, of Chicago, also known as “Luis,” RUBEN VALENCIA, 22, of Chicago, KARINA JIMENEZ, 35, of Chicago, also known as “Kay Kay” and “Rina,” KEVIN RAMIREZ, 27, of Evanston,  JONAS CASTILLO, 26, of Chicago, also known as “Guero,” and JESENIA CALLE, 20, of Chicago, also known as “J-Dog.”  As described in the complaint, two of the defendants have also been charged with murder in the Circuit Court of Cook County and are currently being held in state custody. 

The defendants charged in the complaint are alleged to have conspired to distribute crack cocaine between December 2021 and November 2022, primarily using a telephone hotline that customers used to order crack cocaine, which was then delivered by one of the defendants.  During the investigation, law enforcement officials seized hundreds of grams of crack cocaine and numerous firearms from various defendants.  All but one of the defendants were arrested by federal agents last week or are in State custody and have begun making initial appearances in U.S. District Court in Chicago.  One defendant remains at large, and a warrant has been issued for his arrest.

The arrests are announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Christopher C. Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department.  Substantial assistance was provided by the Chicago Police Department’s Narcotics Division, which began a narcotics investigation to assist Chicago Police Department’s Detectives Bureau, and later worked with the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  Additional assistance was provided by the Internal Revenue Service Criminal Investigation Division, U.S. Marshals Service, U.S. Customs and Border Protection, Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, Chicago High Intensity Drug Trafficking Area (HIDTA) Investigative Support Center, Illinois National Guard, Skokie Police Department, and Elmwood Park Police Department.  The government is represented by Assistant U.S. Attorneys Ramon Villalpando, Ann Marie Ursini, and Adam Rosenbloom.

The public is reminded that a complaint 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. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

This case is part of an Organized Crime Drug Enforcement Task Forces investigation.  OCDETF identifies, disrupts, and dismantles drug traffickers and other alleged criminal offenders 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 federal judge has sentenced a Chicago man to life in prison for committing murder to maintain and increase his position in a violent Chicago street gang.

PIERRE ROBINSON, 29, of Chicago, was found guilty of committing murder in aid of racketeering by a federal jury in August, 2022.  The jury returned its verdict after a four-day trial in U.S. District Court in Chicago.  On March 6, 2023, U.S. District Judge John J. Tharp, Jr., sentenced Robinson to life in prison.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Christopher C. Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and David Brown, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorneys Albert Berry III and Margaret Steindorf.

Evidence at trial revealed that Robinson murdered Glenn Houston, Jr., on Dec. 23, 2014, for the purpose of maintaining and increasing Robinson’s position in the Evans Mob street gang.  Robinson shot Houston, 23, multiple times inside a store in the 400 block of East 79th Street in the Chatham neighborhood on Chicago’s South Side.  The Evans Mob, also known as “GuttaGang” and “Hitz Squad,” is a criminal organization whose members and associates engaged in narcotics trafficking and committed acts of violence, including murder, attempted murder, and assault, to acquire and preserve the gang’s territory on the South Side of Chicago.  Members of the Evans Mob used social media to publicly claim responsibility for their acts of violence, taunt rival gang members, and took steps to prevent law enforcement’s detection of its criminal activities.

During the sentencing hearing, U.S. District Judge Tharp determined that Robinson was also involved in the murder and attempted murder of two other individuals, Hammood Dawoudi and DeShawn Danzler, on June 18, 2015.

CHICAGO — A federal grand jury has indicted two Chicago residents on a total of five counts of robbery affecting interstate commerce.  

EQUISHA BUTLER, 29, of Chicago has been charged with five counts of robbery and KISHAWN BROWNLEE, 26, of Chicago has been charged alongside Butler on two of those counts.  The indictment, which was unsealed on March 6, alleges that between April 13 and July 29, 2022, Butler robbed five 7-11 convenience stores and that Brownlee participated in two of those robberies. The five robberies occurred at 7-11 stores located at:

• 661 South Blvd, Oak Park
• 3800 N Kedzie Ave, Chicago
• 2366 N Damen, Chicago
• 4771 N Elston, Chicago
• 4346 N Kimball, Chicago

Both Butler and Brownlee were arraigned before U.S. Magistrate Judge Jeffrey Cole on March 1, 2023.  

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and David Brown, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Irene Hickey Sullivan.

The public is reminded that an indictment contains only a charge and 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.  Each count of robbery 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.

CHICAGO —A sales agent for a Chicago-area red-light camera company, Company A, has been sentenced to more than five years in federal prison for conspiring to pay bribes to a public official and for filing a false tax return.

In July 2022, PATRICK J. DOHERTY, 67, of Palos Heights, pleaded guilty to one count of corruptly offering something of value to influence and reward a public official (Count Five), and one count of filing a false tax return (Count Eight).  Earlier this week, U.S. District Judge Ronald A. Guzman sentenced Doherty to 64 months’ imprisonment on the bribery charge, and 34 months on the false tax return charge, which sentences are to run concurrently.

According to his plea agreement, Doherty offered and agreed to give things of value, namely money, with the intent to influence State Senator A, an agent of the State of Illinois.  As Chairman of the Senate Transportation Committee, State Senator A was in a position to assist Company A by opposing legislation adverse to the interests of the red-light-camera industry and obtaining Illinois Department of Transportation (“IDOT”) approvals for Company A’s red-light cameras. Doherty also admitted other acts of bribery in the plea agreement, including acts that involved abusing his position as Chief of Staff for Public Official A, a Cook County Commissioner, in efforts to benefit individuals who paid money to Doherty and his associates.  In total, Doherty participated in corrupt activities that involved offering and obtaining bribes totaling approximately $148,000.

In addition, in 2016, Doherty caused an accountant to file his tax return with the Internal Revenue Service, knowing that this tax return contained false information. The false return caused losses to the IRS of at least $14,732 and losses to the Illinois Department of Revenue of at least $1,268.  Doherty also acknowledged that his tax returns for tax years 2012 through 2015 and 2017 through 2018 underreported his income, and thereby caused additional losses to (1) the IRS of at least $58,430; and (2) the Illinois Department of Revenue of at least $6,512.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr, Special Agent-in-Charge of the Chicago office of the FBI; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government was represented by Assistant U.S. Attorney Tiffany A. Ardam.

CHICAGO — A federal grand jury in Chicago, Illinois, returned an indictment in February, which was unsealed on March 1, charging two suburban Chicago residents with a total of 15 counts of wire fraud for allegedly fraudulently obtaining at least $742,000 in small business loans and grants under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

According to the indictment, beginning around March 2020, and continuing until around March 2021, TE DORA BROWN, 43, of Palos Park, Illinois, and CHRISTOPHER SCOTT, 43, of Hazel Crest, Illinois, participated in a scheme to defraud the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP).  Brown is charged with 13 counts of wire fraud, and Scott is charged with 9 counts.

As part of the scheme, the indictment alleges the defendants submitted to the SBA numerous applications for loans on behalf of businesses and entities purportedly owned by the defendants. The applications are alleged to have contained materially false statements and misrepresentations concerning, among other things, the purported entities’ number of employees, gross revenues, payroll, operating expenses, type of business, and existence as companies with ongoing operations.  The indictment alleges that Brown and Scott knew at the time that the fictitious entities through which they applied had no employees or payroll, and that they intended to use the loan funds for their personal use and benefit.

Brown and Scott were arraigned in federal court in Chicago on March 1, 2023, before Magistrate Judge Jeffrey Cole.

The indictment is announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Douglas Zloto, Special Agent-in-Charge of the Chicago Field Office of the United States Secret Service.  Substantial assistance was provided by the SBA-Office of Inspector General.  The government is represented by Assistant U.S. Attorney Alejandro G. Ortega.

The public is reminded that an indictment contains only a charge and 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.  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 fraud involving COVID-19 is encouraged to report it to the Department of Justice by calling the National Center for Disaster Fraud Hotline at 866-720-5721 or filing an online complaint at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

CHICAGO — A Chicago-area physical therapist, health care professional, and a personal trainer have pleaded guilty to one count of healthcare fraud each for scheming to defraud private insurers for payment of physical therapy and other services that were never rendered.

INESSA KATSNELSON, 55, of Glenview, also known as “Inessa Blinov,” “Inessa Danuchevsky” and “Inna,” a personal trainer and singer who worked out of a gym in Northbrook, participated in a scheme to defraud private health and auto insurers through multiple entities from 2006 to October 2018.  Katsnelson provided names and insurance information for purported patients to those entities, knowing the entities would submit fraudulent claims to insurance companies for services never provided.  In exchange for the use of their information, Katsnelson provided to some of the individuals she referred certain benefits, including free personal training sessions, massages, and the exhaustion of their annual health insurance deductibles, at no cost to them, through the fraudulent billing practices.

MAYA YAKUBOVICH, 56, of Arlington Heights, who worked as a medical claims biller for various health care facilities in Buffalo Grove, Northfield, Prospect Heights, Wheeling, Des Plaines, and Glenview, participated in the scheme with Katsnelson and others.  From approximately 2006 to October 2018, Yakubovich knowingly prepared and submitted fraudulent claims, and at times created false medical records to support the claims.  Yakubovich also provided names and insurance information for purported patients to one of the entities, and then submitted fraudulent claims to insurance companies for services never provided to the purported patients.

BEATTA KABBANI, 55, of Glenview, who was a licensed physical therapist, president, and secretary of a medical group located in Northfield and Glenview, pleaded guilty in a separate case based on her involvement in a related scheme.  Between September 2011 and November 2016, Kabbani fraudulently submitted, and caused to be submitted, fraudulent claims to insurance companies.  The claims falsely represented that certain healthcare services were provided to patients, when Kabbani knew that those services were not actually provided.  The fraudulent claims identified Kabbani, a medical doctor, and another therapist as the service providers on dates when these three providers were not present at the healthcare facility.  To substantiate the fraudulent claims Kabbani created, and caused the creation of, false medical records.

Katsnelson, Yakubovich, and Kabbani, along with their co-schemers, received a portion of the fraudulently obtained funds.  In total, the indictment against Katsnelson, Yakubovich, and others alleges that nine insurance companies were defrauded out of approximately $6.5 million.  Co-schemers whose charges are still pending are TETYANA VORONKINA, a medical claims biller, also known as “Tanya Voronkina,” 60, of Mundelein, and massage therapist VIKTOR DANCHUK, 62, of Roselle.

Sentencing for Katsnelson is scheduled for May 26, 2023 before U.S. District Judge Sharon Johnson Coleman.  Yakubovich’s sentencing is scheduled for May 24, 2023 before U.S. District Judge Sharon Johnson Coleman.  Kabbani’s sentencing has not yet been scheduled.

The plea agreements are announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Ruth M. Mendonça, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Irene Lindow, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor, Office of Inspector General; and Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The government is represented by Assistant U.S. Attorneys Heidi Manschreck and Chester Choi.

ROCKFORD — A federal judge has sentenced a Rockford man to five years and four months in federal prison for illegally possessing a firearm in Rockford, to be followed by three years of supervised release.

U.S. District Judge Iain D. Johnston sentenced JAVIN MASON, 32, to more than five years in prison today. Mason pleaded guilty in November 2022 to a charge of illegal firearms possession. As a previously convicted felon, Mason was prohibited by federal law from possessing firearms. Mason admitted in a plea agreement to possessing firearms that he knew were stolen, and selling them to another individual.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Christopher C. Amon, Acting 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. The government was represented by Assistant U.S. Attorney Jessica Maveus.

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, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.

CHICAGO — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois since 2017, today announced his resignation, which will become effective on March 11, 2023.  First Assistant U.S. Attorney Morris “Sonny” Pasqual will assume the position of United States Attorney on an acting basis. 

Mr. Lausch was sworn in as United States Attorney on November 22, 2017, following his appointment by President Donald J. Trump.  Under Mr. Lausch’s leadership, the U.S. Attorney’s Office achieved significant convictions in the areas of violent crime, public corruption, national security, financial fraud, drug trafficking, and many other areas of importance.  Mr. Lausch also oversaw substantial achievements in civil cases, including procuring millions of dollars in settlements and judgments against individuals and companies for civil rights violations, health care fraud, and environmental harms.

“It has been the privilege of a lifetime to lead the U.S. Attorney’s Office in Chicago,” said Mr. Lausch.  “I want to thank all of my talented colleagues in the office, as well as our federal, state, and local law enforcement partners, for their hard work and dedicated public service during my tenure.  It was my honor each and every day to help carry out the office’s mission to uphold the rule of law, keep our country safe, and protect our civil rights.”

“John Lausch has served the citizens of the Northern District of Illinois and the United States with magnificent distinction,” said Mr. Pasqual.  “I want to thank John for his tremendous stewardship of the office, and I wish him well in his future endeavors.” 

During Mr. Lausch’s tenure, the office focused on battling the stubborn violent crime problem in Chicago and throughout the Northern District, overseeing multiple racketeering prosecutions of members of organized criminal street gangs and gang factions, as well as the prosecutions of illegal gun offenders in Chicago and throughout northern Illinois.  Among other strategies, the office launched a Gun Crimes Prosecution Team to disrupt the cycle of violence in the Chicago neighborhoods most in need, as well as a Gun Trafficking Strike Force to address the illegal transfer of firearms to felons and other prohibited persons.  Mr. Lausch in 2020 oversaw federal law enforcement’s collaboration with state and local law enforcement partners to respond to civil unrest and rising rates of violent crime in the Chicago area.

Mr. Lausch led the U.S. Attorney’s Office’s response to the Covid-19 pandemic.  The office remained open during the pandemic, and Mr. Lausch oversaw criminal charges against numerous individuals for allegedly using the crisis to commit fraud during a vulnerable time in our nation’s history.  In addition, the office maintained its strong tradition of prosecuting individuals for public corruption offenses during Mr. Lausch’s tenure.

From 2018 to 2020, Mr. Lausch served on the Attorney General’s Advisory Committee (AGAC), which consists of a select number of U.S. Attorneys who advise the Attorney General on policy, management, and operational issues impacting federal prosecutors’ offices across the country.  Mr. Lausch also served on several AGAC subcommittees, including as Chair of the Violent and Organized Crime Subcommittee, and as a member of the White Collar Fraud, Controlled Substances, and Child Exploitation and Human Trafficking subcommittees.  Mr. Lausch was also tasked by three Attorneys General to perform significant assignments related to sensitive matters of national importance.

Mr. Lausch earned his law degree in 1996 from Northwestern University School of Law, and his bachelor’s degree in 1992 from Harvard University.  He previously served in the U.S. Attorney’s Office as an Assistant U.S. Attorney from 1999 to 2010. 

Before taking over as First Assistant U.S. Attorney in 2022, Mr. Pasqual spent nearly 33 years in the office as an Assistant U.S. Attorney, including in several supervisory roles.  Mr. Pasqual will assume the role of U.S. Attorney on an acting basis until a presidentially appointed candidate is confirmed by the U.S. Senate.

CHICAGO — A federal jury in Chicago has found a former building inspector for the City of Harvey guilty on five counts of using a facility of interstate commerce (a cell phone) to facilitate violations of the Illinois state bribery statute.

Evidence at trial revealed that between February to April of 2018, Lester Crowder, 73, of Ohio met nine times with an individual who said he was looking to open a nightclub in Harvey.  In those meetings, Crowder communicated that the individual would need to pay up to $50,000 in cash bribes in order to obtain the nightclub property and obtain the necessary permits.  Crowder collected approximately $13,000 in bribe payments from the individual, who was cooperating with the FBI and recording their conversations.  During the same time, Crowder was captured on court-authorized recordings communicating with another individual confirming their intent to take bribes.

Sentencing has not yet been scheduled before the Honorable Martha Pacold.  Each count could carry a sentence of up to five years in federal prison. 

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Machelle L. Jindra, Special Agent in Charge of the Housing and Urban Development Office of the Inspector General. The government is represented by Assistant U.S. Attorneys Sean Franzblau and Megan DeMarco.

CHICAGO — A suburban Chicago businessman has been sentenced to four years in federal prison for re-offending while still serving a federal sentence stemming from an earlier financial fraud conviction.

Shortly after being released from prison and while on home confinement near the end of his 60-month sentence for theft of government funds and aggravated identity theft, CARLOS SMITH, 58, of Park Forest began submitting fraudulent applications for government-backed loans intended to support businesses suffering economic effects from the Covid-19 pandemic.  Smith first submitted a fraudulent application for the Economic Injury Disaster Loan (“EIDL”) Program, run by the Small Business Administration (SBA), in April 2020, while he was on home confinement.  Shortly after obtaining the EIDL funds, and while serving the supervised release portion of this prior sentence, he fraudulently sought and obtained a second loan, this time through the Paycheck Protection Program (“PPP”).  In both applications, Smith lied about the condition and performance of his purported business, CLS Financial Services, Inc., which did not operate during the year prior to the pandemic, when defendant was incarcerated.  In the PPP application, Smith also lied about his criminal history and submitted fake tax documents.  Between the two loans, Smith received approximately $421,900.  Smith pleaded guilty to one count of wire fraud and one count of money laundering on June 22, 2022.

The sentence was imposed by U.S. District Court Judge Manish S. Shah on February 23, 2023. 

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Hannibal Ware, Inspector General of the U.S. Small Business Administration.  The government is represented by Assistant U.S. Attorney Heidi Manschreck.

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

CHICAGO — The former chief financial officer of a suburban IT consulting firm has been sentenced to three years in federal prison after embezzling over $1.3 million from his former company, of which he was a partner, CFO, and Managing Member.

ANTHONY FREMAREK, 49, of Plainfield fraudulently caused funds from two of the Schaumburg-based company’s bank accounts to be used to pay his personal credit cards, from 2013 to 2019.  Fremarek attempted to conceal the embezzlement by falsifying entries in the company’s accounting system to disguise the payments as seemingly legitimate business expenses and submitting falsified financial information to the company’s banks.  Fremarek pleaded guilty to one count of wire fraud in November 2022.

The sentence was imposed by U.S. District Court Judge Robert Gettleman on February 23, 2023. 

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Douglas Zloto, Special Agent-in-Charge of the U.S. Secret Service Chicago Field Office.  The government is represented by Assistant U.S. Attorney Ashley A. Chung.

“[A]s soon as [defendant] had access to the company’s accounts and financial records, he began abusing his position out of pure greed,” Assistant U.S. Attorney Ashley A. Chung argued in the government’s sentencing memorandum. “Defendant . . . unrepentantly betray[ed] the trust of his former partners and employees and stopped only when he was caught and terminated.”

CHICAGO — Recording artist ROBERT SYLVESTER KELLY, also known as “R. Kelly,” was sentenced earlier today by United States District Judge Harry D. Leinenweber to 20 years in federal prison, with one year to run consecutive to the 30-year sentence previously imposed in the Eastern District of New York.

On September 14, 2022 after a four-week trial a federal jury in Chicago convicted Kelly on three counts of producing child pornography and three counts of enticing a minor to engage in sexual activity.  The trial revealed that Kelly enticed multiple underage girls to engage in sexual activity, and that he continued to abuse his victims for years, at times recording some of the abuse on videotape.  Kelly met the victims in the late 1990s and engaged in sex acts with them beginning when they were as young as 14, 15, and 16 years old. 

On multiple occasions over several years Kelly took steps to cover up his abuse and silence his victims.     

The sentence is announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; R. Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  Substantial assistance was provided by the Cook County State’s Attorney’s Office and the Chicago Police Department.  Assistant U.S. Attorneys Jeannice W. Appenteng, Elizabeth R. Pozolo, Jason A. Julien, and Brian F. Williamson represented the government.

“With today’s sentence, a sexual predator is being held accountable for the years of abuse he inflicted on minor victims,” said U.S. Attorney John R. Lausch. “Kelly used his celebrity and wealth to attract and victimize young girls, and to obstruct prior criminal proceedings intended to end his despicable conduct. We commend the courage and the strength of the victims who came forward in this case to expose Kelly’s crimes. Our office will never cease seeking justice for victims of child sexual abuse, and the public can take comfort knowing that Kelly will never again be in a position to exploit young girls.”

“Robert Kelly used his power and fame for evil when he exploited children for his own gratification,” said Sean Fitzgerald, special agent in charge of HSI Chicago. “We are confident that Kelly’s sentence will empower victims who are facing similar circumstances to come forward knowing they will be supported. HSI, alongside its partners from the U.S. Attorney’s Office, the Chicago Police Department, and IRS Criminal Investigation, will do everything in our power to ensure perpetrators like Kelly face justice.”

If you believe you are a victim of sexual exploitation, you are encouraged to contact HSI’s confidential tip line by calling 1-866-DHS-2-ICE (1-866-347-2423) or by logging on to https://www.ice.gov/webform/hsi-tip-form.  The service is available 24 hours a day, seven days a week.

CHICAGO — The owner of a suburban Chicago manufacturing company has been sentenced to 9 months in federal prison and ordered to pay $3,329,701 in restitution to the U.S. Treasury and the Illinois Department of Revenue following his conviction for payroll tax fraud.

In June 2022, EDWARD T. ARNIERI, 71, of St. Charles pleaded guilty to a federal tax offense for withholding approximately $3.9 million dollars in employee payroll taxes and failing to remit the money to the Internal Revenue Service.  Arnieri was the president and sole owner of Lane Tool & Manufacturing Company Inc., located in South Elgin.   Payroll taxes are made up of both contributions by the employer and employee for Social Security and Medicare that are collected and remitted on a quarterly basis; as well as Federal Unemployment Taxes (FUTA) that are paid by the employer annually.  Additionally, as an employer, Arnieri was required to withhold federal income tax from employees’ wages and send those amounts to the U.S. Treasury on a quarterly basis.   For approximately eight years, Arnieri caused his company to issue Forms W-2 and paychecks to its employees which falsely reflected that the company had withheld income and payroll taxes from their wages.  Arnieri’s conduct also resulted in the filing of inaccurate individual tax returns for himself, resulting in additional tax loss of approximately $450,000. 

The sentence was imposed by U.S. District Court Judge Jorge L. Alonso on September 15, 2023.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorney Patrick J. King, Jr.

ROCKFORD — A Byron, Ill. man was sentenced today to fourteen years in federal prison for transportation of child pornography.

OSCAR FLORES-VAZQUEZ, 51, pleaded guilty earlier this year to one count of knowingly transporting child pornography.   U.S. District Judge John Robert Blakey imposed the sentence. Flores-Vazquez was also ordered to pay $8,750.00 in restitution to certain victims.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government was represented by Assistant U.S. Attorney Jessica S. Maveus.

Flores-Vazquez admitted in a plea agreement that he used a peer-to-peer application on his computer to knowingly allow others, including an undercover law enforcement agent, to access files on his computer that Flores-Vazquez knew contained child pornography. In June 2018, Flores-Vazquez knowingly transported child pornography, including a file depicting a minor engaged in sexually explicit conduct. Flores-Vazquez further admitted in the plea agreement that he possessed a laptop that contained more than 600 images of child pornography.

CHICAGO — A federal grand jury in Chicago, Illinois, returned an indictment on February 15, charging the former Vice President and Chief Operating Officer of a Chicago area hospital with three counts of mail fraud and three counts of money laundering.

According to the indictment, beginning in or around December 2013 and continuing until in or around July 2021, ROBERT SPADONI, 58, of Darien defrauded the Chicago area hospital out of approximately $622,500.  Despite being required to comply with the hospital’s conflict of interest policy, which prohibited, among other things, employees and their family members from having a financial interest in an organization doing and seeking to do business with the hospital, Spadoni caused the hospital to enter into a professional services agreement with Medical Education Solutions (MES), a company established by Spadoni.  The contract between the hospital system and MES was for MES to provide administrative support and compliance services to the hospital’s podiatry residency program.

The indictment alleges that, under the terms of the MES agreement, the hospital agreed to pay $6,500 per month for the purported services Spadoni knew would not be provided by MES.  Spadoni concealed, and attempted to conceal, his and a family member’s financial interest in MES, providing a direct report with a $1,500 monthly cash payment in order to perform the administrative support and compliance services that were covered by the MES agreement.  Spadoni and the family member are alleged to have used the remaining funds obtained from the hospital for their own personal benefit and the personal benefit of others.

Arraignment in federal court has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr, Special Agent-in-Charge of the Chicago Field Office of the FBI; and Kwame Raoul, Illinois Attorney General.  The government is represented by Assistant U.S. Attorney Chester Choi.

The public is reminded that an indictment contains only a charge and 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.  Each count of mail fraud is punishable by up to 20 years in federal prison and each count of money laundering is punishable by up to 10 years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

ROCKFORD — A former inmate of the United States Penitentiary in Thomson, Ill. was sentenced today to more than seven years in federal prison for assaulting a federal correctional officer.

JOSEPH VAN SACH, 50, was found guilty of the offense on March 15, 2022, following a seven-day jury trial in federal court in Rockford.  

According to evidence at trial, on April 2, 2019, while in custody at USP Thomson, Van Sach forcibly assaulted a correctional officer who was engaged in the performance of his official duties.  Van Sach made physical contact and inflicted bodily injury to the officer.  

U.S. District Judge John Robert Blakey imposed the sentence after a hearing in federal court in Rockford.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government was represented by Assistant U.S. Attorneys Jessica Maveus and Vincenza L. Tomlinson.

CHICAGO — A Chicago resident has been sentenced to eight years in federal prison for setting fire to the Boost Mobile Store located at 809 E. 79th Street in 2019.

In the early morning hours of September 10, 2019, OTHO HARRIS, 63, of Chicago broke the front door of the store, poured gasoline into the building, and set it on fire because he was upset with the store’s response to his broken cellphone.  The day before, on September 9, Harris got into a confrontation with a store employee about the broken cellphone and slammed the phone down onto the ground and exited the store after the employee said the phone could not be repaired.  Harris, who plead guilty to one count of arson in September of 2022, has a lengthy criminal history involving multiple prison sentences for other violent crimes.

On February 9, 2023, U.S. District Judge John J. Tharp, Jr., imposed the 96-month prison sentence.  The court also ordered Harris to pay $195,701 in restitution for the extensive damage the fire caused to the Boost Mobile store.

The sentence is announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffery L. Matthews, Acting Special Agent-in-Charge of the Chicago office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department.  Assistant U.S. Attorney Prashant Kolluri represented the government.

ROCKFORD — A Morrison, Ill. man pleaded guilty in federal court before U.S. District Judge Iain D. Johnston to embezzling from a labor organization. 

BRENT TOPPERT, 42, was the elected Financial Secretary-Treasurer of Local 238 of the Security, Police, and Fire Professionals of America (SPFPA).  The SPFPA represented members engaged in providing security at a nuclear plant in Cordova, Ill.  Toppert admitted in a plea agreement that in 2018 he made an unauthorized withdrawal of $500 from a bank account owned by the SPFPA, and that the withdrawal was not for any business purpose.  Toppert admitted that he converted this money to his personal use.

The government alleged in the plea agreement that Toppert converted a total of $63,713.14 of the SPFPA’s assets to his personal use.

Toppert faces a maximum sentence of five years’ imprisonment.  The actual sentence will be determined by the U.S. District Court, guided by the Sentencing Guidelines.  Sentencing is set for June 6, 2023 at 1:30 p.m. 

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Thomas Murray, District Director of the U.S. Department of Labor – Office of Labor Management Standards.  The government is represented by Assistant U.S. Attorney Michael D. Love.

CHICAGO — A man who helped lead a multi-year fraud scheme carried out by individuals in the United States and Nigeria has been sentenced to more than seven years in federal prison. 

OLANIYI NASIRU OJIKUTU, a 39-year-old legal permanent resident of the U.S., who was born in Nigeria and was residing in Chicago at the time of the crimes, was one of ten individuals indicted as the result of “Operation Gold Phish,” a Chicago-based investigation which identified a variety of cyber-enabled scams primarily targeting elderly victims.  The schemers built trust with victims through a purported online romance before convincing the victims to send money.  The victims were contacted via websites such as Match.com, Facebook, and Instagram.

After being notified of the charges against him in May of 2019, Ojikutu fled via bus to Canada but was apprehended seven months later.  He was turned over to United States authorities in January 2020 and pled guilty to one count of wire fraud in July 2022.

Over the course of approximately three years, Ojikutu opened approximately 25 bank accounts in his own name, a fake name, and a shell company name through which approximately $3.4 million in fraudulently obtained proceeds were transferred.  Ojikutu used the fraudulently obtained funds for his own personal benefit, including to purchase vehicles in the United States and ship them to Nigeria for resale.  As the result of Ojikutu’s actions, some victims lost hundreds of thousands of dollars.

On February 8, 2023, U.S. District Judge John Robert Blakey imposed an 88-month prison sentence for Ojikutu.  All but one of the nine defendants in U.S. custody have pled guilty in this case.  The alleged leader, DANIEL SAMUEL ETA, also known as “Captain” and “Etaoko,” 35, of Skokie has plead not guilty and his case is still pending.

The sentence is announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Kai Pickens, Acting Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.  Valuable assistance was provided by the Nigerian Economic and Financial Crimes Commission.  Assistant U.S. Attorney Charles W. Mulaney represented the government.

The FBI estimates that approximately 24,000 people lost more than $956 million in romance scams in 2021 alone. For tips on how to protect yourselves and your loved ones, visit the Federal Trade Commission’s romance scam webpage. To report a suspected romance fraud, file a report via the FBI’s Internet Crime Complaint Center at www.ic3.gov.

CHICAGO — A Chicago investment advisor has been indicted on federal fraud charges for allegedly swindling three clients out of approximately $683,000.

DAVID SHELDON WELLS, 32, of Chicago, was charged with three counts of wire fraud in an indictment returned Wednesday in U.S. District Court in Chicago.  Arraignment is set for today at 2:00 p.m. before U.S. Magistrate Judge Heather K. McShain.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Douglas Zloto, Special Agent-in-Charge of the U.S. Secret Service Chicago Field Office.  Valuable assistance was provided by the U.S. Securities and Exchange Commission.  The government is represented by Assistant U.S. Attorney Brian Havey.

According to the indictment, Wells worked as an investment advisor in the Chicago branch of a subsidiary of a Midwestern bank.  In 2020 and 2021, Wells falsely represented to three clients, including two elderly men suffering from dementia, that he would invest their money in publicly traded companies.  Based on the false representations, the clients sent him checks made payable to “Wayne and Stark,” which Wells claimed was a publicly traded company.  In reality, Wayne and Stark was a shell company set up and solely controlled by Wells, the indictment states. 

Wells used the clients’ funds for his personal use, including rent and unauthorized trading in high-risk options contracts, the indictment states.  Wells lost or otherwise spent all of the clients’ funds, the indictment states.

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

CHICAGO — A man has been sentenced to eight years in federal prison for illegally possessing a loaded semiautomatic handgun, cocaine, and heroin in a Chicago suburb.

QUINCY J. ARNOLD illegally possessed the gun and drugs on Oct. 17, 2020, in Bellwood, Ill.  Bellwood Police officers pulled over Arnold’s vehicle for a traffic infraction near a mall parking lot.  The officers discovered the loaded gun concealed under the floor mat of the driver’s seat, within reaching distance of Arnold.  Officers further discovered in Arnold’s possession the cocaine and heroin, which were packaged for sale in more than 360 individual baggies.  Arnold admitted in a plea agreement that he intended to distribute the narcotics to others. 

Arnold had previously been convicted of multiple felonies in state court and was not legally allowed to possess a firearm.

Arnold, 49, of Bellwood, Ill., pleaded guilty last year to federal firearm and drug charges.  U.S. District Judge Jorge L. Alonso imposed the sentence Tuesday after a hearing in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., 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 Jiminez Allen, Chief of the Bellwood Police Department.  Assistant U.S. Attorney Charles W. Mulaney represented the government.

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

The Justice Department announced today that the village of Hinsdale, Ill., has agreed to pay $800,000 to settle a lawsuit alleging that the village violated the Fair Housing Act when it refused to allow the operation of a sober living home for persons in recovery from drug and alcohol addiction in a residential neighborhood.

The settlement, which still must be approved by the U.S. District Court for the Northern District of Illinois, resolves a lawsuit that the Department filed in November 2020. This settlement also resolves a related suit brought by the sober living home’s owner and operator, Trinity Sober Living LLC. 

“Individuals with disabilities, including those recovering from drug and alcohol addiction, should not be excluded from living in residential neighborhoods,” said John R. Lausch Jr., United States Attorney for the Northern District of Illinois. “Such discrimination by local governments is forbidden under the Fair Housing Act.”

“Local governments do not have the right to use zoning laws and restrictions as a vehicle to discriminate against people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Department of Justice is committed to vigorous enforcement of federal law to ensure that individuals in recovery have access to the housing and support they need to maintain their sobriety and lead productive lives.”

The Department’s lawsuit alleged that the village of Hinsdale violated the Fair Housing Act after it denied a reasonable accommodation request by Trinity Sober Living LLC to operate a sober living home with ten residents and a house manager in a residential neighborhood. The complaint alleged that, one day after Trinity requested an accommodation, the village sued Trinity in state court for violations of the zoning code, including that the home was a “commercial use” and would have more than three unrelated adults.

Under the settlement, the village will amend its zoning ordinance to comply with federal anti-discrimination laws, including permitting homes for persons with disabilities in residential districts, with the same size limitations applied to families of similar size, and implementing a reasonable accommodation policy. The village will also pay $790,000 in monetary damages to Trinity as well as a civil penalty of $10,000 to the United States. The village also agreed to take a number of other actions to guard against housing discrimination, including training village officials and employees about their obligations under federal law, designating a fair housing compliance officer and reporting periodically to the Justice Department.

The government is represented by Assistant U.S. Attorneys Kathleen Flannery and Patrick Johnson of the Northern District of Illinois, as well as attorneys from the Department of Justice’s Civil Rights Division. 

The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-833-591-0291 or submit a report online at civilrights.justice.gov. Individuals may also contact HUD at 1-800-669-9777 or  https://www.hud.gov/program_offices/fair_housing_equal_opp. Individuals may also report housing discrimination, and other forms of discrimination against persons with disabilities, to the U.S. Attorney’s Office in Chicago at (312) 353-5300.

CHICAGO — Two California attorneys were indicted today on federal fraud charges for allegedly misappropriating more than $3 million in settlement funds intended for relatives of victims killed in the crash of Lion Air Flight 610.

An indictment returned in U.S. District Court in Chicago charges attorneys THOMAS V. GIRARDI, 83, of Pasadena, Calif., and DAVID R. LIRA, 62, of Pasadena, Calif., both of whom worked for the California law firm Girardi Keese, with eight counts of wire fraud and four counts of criminal contempt of court.  The indictment also charges a third defendant, CHRISTOPHER K. KAMON, 49, of Palos Verdes, Calif., and Encino, Calif., who worked as Girardi Keese’s head of accounting and finance, with the same offenses.  Arraignments in federal court in Chicago have not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorneys Corey B. Rubenstein and Emily Vermylen.

“The substantial misappropriation alleged in this indictment compounded the grief and anguish of the clients who lost loved ones in the Lion Air crash,” said U.S. Attorney Lausch.  “Attorneys who violate the trust of their clients and breach a fiduciary duty that is paramount to the practice of law must be held accountable.” 

“The victims of this crime placed their faith in their attorneys during a time of great vulnerability,” said FBI SAC Wheeler.  “Taking advantage of victims of tragedy is a despicable act, and we will continue to seek justice for anyone who takes advantage of innocent Americans in their hour of need.”

According to the indictment, Girardi and Lira, through Girardi Keese, represented five clients who were relatives of passengers killed in the 2018 crash in the Java Sea.  Girardi Keese filed lawsuits in federal court in Chicago against the plane’s manufacturer, Boeing Co., and settled the suits in 2020.  Boeing’s counsel wired the settlement funds to Girardi Keese’s trust account, with most of the money intended for the clients.  The charges allege that Girardi, Lira, and Kamon misappropriated more than $3 million of the settlement funds by diverting the money for improper purposes, including paying the firm’s payroll and operating expenses, and funding settlements to other Girardi Keese clients, whose own settlement funds had been misappropriated by the firm.

Girardi, Lira, and Kamon fraudulently attempted to conceal their misappropriation from the clients, the indictment states.  At one point they falsely told the clients that the Covid‑19 pandemic prevented the firm from distributing the settlement funds, while at other times they falsely claimed that “serious issues” had arisen with Boeing that delayed the distributions, the indictment states.  The defendants made the false claims knowing Girardi Keese had already received the settlement funds from Boeing, the indictment states.

The indictment seeks forfeiture from the defendants in the amount of $3,069,500.

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.  Each count of wire fraud is punishable by up to 20 years in federal prison, while the maximum penalty for each contempt count is determined by the Court.

WASHINGTON – Today, the Justice Department and U.S. Environmental Protection Agency (EPA) announced a settlement with Logan Square Aluminum Supply Inc., resolving alleged violations of the federal Lead Renovation, Repair and Painting regulations, known as the RRP rule, at renovation projects Logan Square and its contractors performed in Chicago and Chicago suburbs.

Under the court settlement, Logan Square will implement a comprehensive program to ensure that its contractors are certified and trained to use lead-safe work practices to avoid creating lead dust during home renovation activities. Under a parallel administrative settlement agreement, Logan Square will also pay a $400,000 penalty, and perform $2 million of lead-based paint abatement work in lower-income properties located in Chicago and Chicago suburbs in communities with a higher incidence of childhood lead poisoning.

“Companies that renovate homes built before 1978 must ensure that they hire EPA-certified contractors and follow other EPA rules requiring lead safe work practices,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will take aggressive action against companies that do not take these important steps.”

“Lead exposure from lead-based paint continues to be a hazard for American families living in older homes, and children in those homes are particularly vulnerable,” said Larry Starfield, EPA Acting Assistant Administrator for the Office of Enforcement and Compliance Assurance. “This settlement requires Logan Square Aluminum Supply, Inc. to take necessary steps to ensure that it meets appropriate safety requirements in future renovation projects that may disturb lead-based paint.”

Renovation is any activity that disturbs painted surfaces and includes most repair, remodeling, and maintenance activities, such as electrical work, plumbing, carpentry and window replacement. Both Logan Square and its contractors are responsible for compliance with the RRP rule to protect the health and safety of families, especially children under the age of six who are most susceptible to lead hazards. For these projects, Logan Square must contract with only EPA-certified firms and renovators, ensure they maintain certification, use lead-safe work practices, and document their work with checklists during renovations.

Logan Square will add a link on its website to EPA’s content on lead-safe work practices. In addition, Logan Square will take action to respond to situations where a contractor is not operating in compliance with the RRP rule; investigate all reports of potential noncompliance; and ensure that any violations are corrected and reported to EPA.

EPA first discovered the alleged violations through customer complaints about a project performed in Evanston, Illinois. EPA learned that Logan Square frequently subcontracted work to uncertified firms and did not use lead-safe work practices, perform required post-renovation cleaning, provide the EPA-required lead-based paint pamphlets to occupants, or establish records of compliance. Logan Square also conducts business under other names, including Climate Guard Thermal Products Co. and Studio 41.

The consent decree was lodged in the U.S. District Court for the Northern District of Illinois. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. View the consent decree here. 

Further information is available from the National Lead Information Center (800-424-LEAD) and online at www.epa.gov/lead. Available resources include additional information about the RRP program; information for contractors and property managers about program requirements; and downloadable lead-safety education materials.

To report a possible violation of the RRP Rule requirements, please visit EPA’s website.