Northern District of Illinois

CHICAGO — A former senior accountant for a Chicago construction company has been indicted on federal fraud charges for allegedly embezzling millions in company funds.

RICHARD A. MANDARINO entered false payment requests in the construction company’s accounting system, causing checks to be issued to vendor companies for goods and services that Mandarino knew were never provided, according to an indictment returned Thursday in U.S. District Court in Chicago.  Mandarino then converted those payments to his and others’ personal use, the indictment states.  Mandarino allegedly concealed the thefts by creating fictitious credits and offsets in the construction company’s accounting system.

Mandarino committed the alleged fraud from 2015 to 2017 while he resided in Canada and worked on the construction company’s Canadian business projects, the indictment states.  The charges allege that Mandarino fraudulently embezzled and obtained more than two million Canadian dollars.

The indictment charges Mandarino, 43, of Scarborough, Ontario, Canada, with three counts of wire fraud.  Arraignment in U.S. District Court in Chicago has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorney Patrick J. King, Jr.

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 – Three Chicago-area residents have been indicted on federal charges for allegedly fraudulently obtaining more than $2.75 million in small business loans under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.

SAMUEL W. JACKSON, DAVID L. SULLIVAN II, and ELIZABETH A. CHERVINKO engaged in fraud related to the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan Program (EIDL) – two sources of relief under the CARES Act, according to an indictment unsealed Tuesday in the Northern District of Illinois.  The indictment charges Jackson, 42, of Chicago, with five counts of wire fraud and three counts of money laundering, while Sullivan, 49, of Naperville, Ill., and Chervinko, 41, of Chicago, are each charged with one count of wire fraud. 

Jackson pleaded not guilty Tuesday during his arraignment before U.S. Magistrate Judge Sunil R. Harjani.  Arraignments for Sullivan and Chervinko are set for Aug. 17, 2022, at 1:30 p.m., before U.S. Magistrate Judge Jeffrey Cole.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Hannibal Ware, Inspector General of the U.S. Small Business Administration.  The government is represented by Assistant U.S. Attorneys Christopher K. Veatch and Megan Donohue.

Pursuant to the CARES Act, a PPP loan allows the interest and principal to be forgiven if businesses spend a certain amount of the proceeds on essential expenses, such as payroll, rent, and utilities, while the EIDL provides loan assistance or grants to cover working capital and other operating expenses.

According to the indictment, the defendants in the spring and summer of 2020 submitted fraudulent applications and supporting documents to lenders, loan service providers, and the SBA, in their own names and in the names of related corporate entities, including three Montana-based companies – Dream Builder LLC, Ordained Destination LLC, and Ordained Real Estate LLC – and two Illinois-based companies – Top Flight Real Estate LLC and Tips @ 170 Inc.  The applications and supporting documents contained materially false representations about the defendants’ companies, including the number of purported employees, revenue and payroll amounts, and other expenses, the indictment states.

The indictment alleges that the defendants defrauded lenders of approximately $2.49 million in PPP loans and defrauded the SBA of approximately $256,500 in EIDL funds.  Much of the money was allegedly used for the defendants’ personal benefit, including the purchase of real estate and the lease and purchase of luxury automobiles.

The public is reminded that an indictment contains only charges and is not evidence of guilt.  The defendants are presumed innocent until proven guilty beyond a reasonable doubt.  Each wire fraud charge is punishable by up to 20 years in federal prison, while the maximum penalty for each count of money laundering is ten years.  If convicted, the Court must impose reasonable sentences 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 jury has convicted two suburban Chicago men on drug conspiracy charges as part of a federal investigation that disrupted a Mexico-to-Chicago drug pipeline.

SHELDON MORALES and EDUARDO SANTANA conspired with a supplier in Mexico and two inmates in a prison in Texas to traffic methamphetamine, fentanyl, and cocaine from Mexico to Evanston, Ill., and Morton Grove, Ill., in 2019.  The drugs were sent in packages from California and Arizona and later sold on the streets in the Chicago area. 

Law enforcement uncovered the drug trafficking activities through the use of wiretapped cellular phones and extensive surveillance.  The case was part of an Organized Crime Drug Enforcement Task Forces investigation.  OCDETF identifies, disrupts, and dismantles drug traffickers and other 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 criminal networks.

After a week-long trial in U.S. District Court in Chicago, the jury on Aug. 5, 2022, convicted Morales, 40, of Morton Grove, Ill., and Santana, 45, of Skokie, Ill., on a drug conspiracy charge.  Morales was also convicted of an individual drug charge related to his possession of methamphetamine and fentanyl.  Morales faces a mandatory minimum sentence of 15 years in federal prison and a maximum of life, while Santana faces a mandatory minimum of ten years and a maximum of life.

U.S. District Judge Mary M. Rowland has not yet scheduled sentencings.

The convictions were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; and Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago.  Substantial assistance was provided by the Evanston Police Department.  Assistant U.S. Attorneys Charles W. Mulaney, Kirsten Moran, and Jeannice Appenteng represent the government.

CHICAGO — A former vice chancellor for City Colleges of Chicago has been sentenced to five and a half years in federal prison for devising and engaging in a procurement fraud scheme.

SHAROD GORDON was employed by City Colleges of Chicago in a variety of leadership roles, most recently as the Vice Chancellor of Legislative and Community Affairs.  From 2013 to 2017, Gordon obtained kickbacks from vendor-companies in exchange for steering them City Colleges contracts for community canvassing and flyer distribution services.  Some of the companies were formed by Gordon’s City Colleges colleagues and other friends for the sole purpose of applying for the contracts.  In some instances, the work was never performed – even though the companies submitted invoices that caused City Colleges to pay out nearly $350,000.  Upon receipt of the payments, Gordon directed representatives of the companies to give him a portion of the money.

Gordon, 47, of Oak Park, Ill., pleaded guilty last year to a federal wire fraud charge.  U.S. District Judge Robert M. Dow, Jr., on Wednesday imposed a 66-month prison sentence.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The Office of Inspector General for the City Colleges of Chicago provided substantial assistance in the investigation. 

“Sharod Gordon abused the public trust for personal profit,” Assistant U.S. Attorney Megan DeMarco argued in the government’s sentencing memorandum.  “Defendant used his government position to deprive underserved college students of honest services in order to line his own pocket.”

Seven other defendants were charged with participating in the fraud scheme.

CHICAGO — A man has been charged in federal court with carjacking a vehicle at gunpoint last week while two children were in the car.

The alleged carjacking occurred on the afternoon of July 27, 2022, at Thorntons gas station, 14840 S. Western Ave. in Posen, Ill.  The victim was entering the driver’s seat of her Kia Optima when KEWAN A. TILLMAN approached, pointed a loaded handgun at her, and demanded the key, according to a criminal complaint filed Monday in U.S. District Court in Chicago.  The victim got the two children out the vehicle before Tillman stole the car and drove off, the complaint states.  Tillman quickly lost control of the vehicle, got out, and ran back toward the gas station, the complaint states.  Tillman unsuccessfully attempted to force entry into a parked semi-trailer before placing the handgun in a sewer and then trying to force his way into another vehicle, the complaint states.  The driver of that vehicle pushed Tillman to the ground, and Posen Police officers arrested him, the complaint states. 

The officers then discovered the handgun in the sewer, the complaint states.  A “sear switch” was allegedly affixed to the gun, which could make it capable of firing more than one shot with a single pull of the trigger.

Tillman, 19, of Calumet City, Ill., is charged with one count of carjacking.  He is currently in law enforcement custody.  An initial appearance in federal court in Chicago has not yet been scheduled.

The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives.  Substantial assistance was provided by the Posen Police Department.  The government is represented by Assistant U.S. Attorney Caitlin Walgamuth.

The federal investigation into the carjacking remains ongoing.

The public is reminded that a complaint is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  The carjacking charge is punishable by up to 15 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 suburban Chicago man was sentenced today to three years in federal prison for laundering cash proceeds from a telemarketing scheme that defrauded elderly victims.

HIRENKUMAR P. CHAUDHARI used a phony Indian passport, false name, and false address to open multiple bank accounts in the United States to receive money from victims of the telemarketing scheme.  The scheme involved phone calls from people falsely claiming to be associated with, among other agencies, the Social Security Administration and U.S. Department of Justice, stating that a victim’s identity had been stolen and that it was necessary to transfer money to various bank accounts, including the accounts opened by Chaudhari. 

One of the victims was a retired nurse from Massachusetts who transferred a total of more than $900,000 from her bank and retirement accounts to accounts controlled by Chaudhari or others.  On April 19, 2018 – one day after Chaudhari opened an account and received a $7,000 transfer from the Massachusetts victim – Chaudhari entered a bank branch in Chicago and withdrew $6,500.  Chaudhari engaged in this financial transaction knowing that the money represented proceeds of unlawful activity.

Chaudhari, 29, of Des Plaines, Ill., pleaded guilty last year to a federal money laundering charge.  In addition to the three-year prison sentence, U.S. District Judge Sara L. Ellis ordered Chaudhari to pay $6,500 in restitution to the Massachusetts victim.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois.  The case was investigated by the U.S. Treasury Department Inspector General for Tax Administration, the U.S. Postal Inspection Service, the Social Security Administration Inspector General, and Homeland Security Investigations.  The government was represented by Assistant U.S. Attorneys Kartik K. Raman and Rick D. Young.

“The defendant played a pivotal role in a telemarketing scheme by laundering money received directly from elderly victims,” said U.S. Attorney Lausch.  “We will continue to investigate, prosecute, and hold accountable anyone who attempts to scam elderly victims out of a peaceful retirement.”

“Crimes against the elderly target some of the most vulnerable people in society,” said Inspector in Charge William Hedrick for the U.S. Postal Inspection Service.  “The Inspection Service has been at the forefront of protecting customers from fraud schemes for many years and will continue to investigate and stop those who exploit older Americans for their own illegal gains.”

“This sentence demonstrates our commitment to hold those accountable who participate in unlawful schemes in an effort to use the good name of the Social Security Administration to prey on elderly Americans,” said Gail S. Ennis, Inspector General for the Social Security Administration.  “This individual deliberately created bank accounts using various false identities to manage funds obtained by illegal means.  We will continue to work with our investigative partners to combat Social Security-related phone scams and pursue those who swindle our citizens out of their life savings.”

If you believe you or someone you know is a victim of elder fraud, complaints may be filed with the Federal Trade Commission online at www.ftccomplaintassistant.gov, or by calling 877-FTC-HELP.  More information about the Department of Justice’s efforts to help seniors is available at its Elder Justice Initiative webpage.

CHICAGO — A man has been indicted on federal firearm charges for allegedly illegally possessing machine guns in Chicago this year.

JUAN INFANTE, 28, of Chicago, is charged with illegal possession of machine guns and illegal possession of firearms as a convicted felon.  Infante had previously been convicted of a felony theft offense and was prohibited by federal law from possessing firearms.

The indictment accuses Infante of illegally possessing four handguns, two of which were equipped with conversion devices known as “Glock switches.”  The devices transformed the firearms into machine guns capable of automatically firing more than one shot with a single pull of the trigger.  Infante earlier this year sold two of the guns to an individual who was surreptitiously cooperating with law enforcement, according to a federal criminal complaint previously filed in the case.

The indictment was returned Wednesday in U.S. District Court in Chicago.  A date for arraignment has not yet been scheduled.  Infante is currently detained in federal custody without bond after the U.S. Attorney’s Office filed a motion for pretrial detention on the basis that Infante posed a danger to the community.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorney Beth E. Palmer.

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

Holding illegal firearm possessors accountable through federal prosecution is also a 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 offenses.

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 in the indictment is punishable by up to ten 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 suburban Chicago man has been arrested on federal firearm charges for allegedly trafficking more than 35 guns, including “ghost guns,” machine guns, and rifles.

ARSHAD ZAYED, 38, of Orland Hills, Ill., is charged with willfully dealing firearms without a license and illegally possessing and transferring a machine gun.  Zayed was arrested this morning and made an initial appearance this afternoon in federal court in Chicago.  A detention hearing is scheduled for Friday at 2:30 p.m. before U.S. Magistrate Judge Beth W. Jantz. 

The charges and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; David Brown, Superintendent of the Chicago Police Department; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The Illinois State Police provided valuable assistance.  The government is represented by Assistant U.S. Attorneys Jimmy L. Arce, Patrick Mott, and Tiffany Ardam.

According to a criminal complaint unsealed today in U.S. District Court in Chicago, Zayed sold approximately 36 firearms on seven occasions this year and last year.  Many of the transactions occurred in a car wash that Zayed managed in Matteson, Ill., the complaint states.  Several of the firearms were considered “ghost guns” because they contained no identifiable serial number and were manufactured from parts collected from various sources.  Some of the firearms, including some of the ghost guns, were machine guns capable of automatically firing more than one shot with a single pull of the trigger, the charges allege.  Unbeknownst to Zayed, the high-ranking Chicago gang member to whom he sold the guns was cooperating with law enforcement, the complaint states.

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

Holding firearm offenders accountable through federal prosecution is also a focus 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.

The public is reminded that a complaint contains only charges and is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  The unlawful possession and transfer charge is punishable by up to ten years in federal prison, while the unlawful dealing charge carries a maximum sentence of five years.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A DeKalb, Ill., man has been sentenced to nine years in federal prison for possessing and sharing child pornography online.

JACOB MATHLEY, 45, possessed more than 10,000 videos and photos of child pornography on his laptop in 2020.  The images included depictions of children engaged in sadistic and masochistic conduct.  Using the online username “Slamdime,” Mathley posted some of the images to various websites, including sites on the “dark net” or “dark web,” for the purposes of trading child pornography with others. 

Mathley pleaded guilty earlier this year to federal child pornography charges.  U.S. District Judge Jorge L. Alonso sentenced Mathley on July 22, 2022, 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; and R. Sean Fitzgerald, Acting Special Agent-in-Charge of the Chicago office of Homeland Security Investigations.  The Aurora, Ill., Police Department provided valuable assistance.

“Jacob Mathley was a prolific trader of child pornography on the dark net,” Assistant U.S. Attorney Charles W. Mulaney argued in the government’s sentencing memorandum.  “Defendant is a danger on the internet and a danger in his community.”

ROCKFORD — A man has been sentenced to five years in federal prison for setting fire to a store in Rockford during a period of civil unrest in 2020.

SEAN CARDENAS, 22, of Rockford, pleaded guilty earlier this year to an arson charge.  Cardenas admitted that on May 30, 2020, he used a hammer to break the glass front doors of Burlington Coat Factory, 6260 E. State St.  Wearing a hood and mask to conceal his identity, Cardenas entered the store and used a Molotov cocktail to ignite a fire inside it.

In addition to the prison sentence, U.S. District Judge Iain D. Johnston on Tuesday ordered Cardenas to pay restitution of $965,591.

The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives.  The government was represented by Assistant U.S. Attorney Jessica S Maveus.

CHICAGO — A suburban Chicago man has been sentenced to more than 13 years in federal prison for illegally possessing multiple firearms and dealing heroin and crack cocaine.

BRIAN STAFFORD, 42, illegally possessed two loaded handguns and drugs in his vehicle and residence in Bellwood, Ill., on Nov. 2, 2016.  A day earlier, Stafford sold 101 grams of heroin to an individual who, unbeknownst to Stafford, was cooperating with law enforcement.

A federal jury in November found Stafford guilty of one count of possessing heroin and crack cocaine with the intent to distribute, one count of illegal possession of firearms by a previously convicted felon, and one count of possessing firearms in furtherance of drug-trafficking activities.

A separate federal jury in 2019 convicted Stafford of illegally possessing three assault rifles.  All of the handguns and rifles illegally possessed by Stafford were linked to thefts from a cargo train that passed through Chicago in September 2016.

U.S. District Judge Robert W. Gettleman on Tuesday sentenced Stafford to 13 years and four months in federal prison.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Substantial assistance was provided by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, Cook County Sheriff’s Office, Evergreen Park, Ill., Police Department, and the Bolingbrook, Ill., Police Department.  The government was represented by Assistant U.S. Attorneys Saurish Appleby-Bhattacharjee and Alejandro Ortega.

CHICAGO — A man who was previously convicted of a 1993 kidnapping and murder in Chicago has been sentenced to nearly six years in federal prison for illegally possessing a loaded handgun.

DARNELL LUCKETT illegally possessed the firearm on March 15, 2017, in Maywood, Ill.  Illinois State Police stopped a vehicle Luckett was driving and discovered the gun under the driver’s seat.  During the stop police also found ammunition, heroin, bath salts, marijuana, a digital scale, and counterfeit cash.

Luckett, 51, of Berwyn, Ill., pleaded guilty earlier this year to a federal charge of illegal possession of a firearm.  Luckett had previously been convicted of multiple state felonies, including the 1993 kidnapping and murder of Darren Payton in Chicago, and was prohibited by federal law from possessing a firearm.

U.S. District Judge John J. Tharp, Jr., on Monday imposed a 71-month federal prison sentence.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  ISP provided valuable assistance.

“The city of Chicago is plagued by gun violence,” Assistant U.S. Attorney Andrew J. Dixon argued in the government’s sentencing memorandum.  “Federal gun laws exist to prevent individuals from being armed who have shown they cannot be trusted to responsibly possess a firearm.”

CHICAGO — A federal grand jury has indicted a man on carjacking and firearm charges for allegedly carjacking a rideshare driver’s vehicle at gunpoint in downtown Chicago.

NOAH RANSOM, 18, of Chicago, stole a Lexus RX350 from a Lyft driver on April 9, 2022, according to an indictment and search warrant unsealed Friday in U.S. District Court in Chicago.  The Lyft driver picked up Ransom and four other men at a downtown Chicago hotel around 4:00 a.m., and shortly thereafter Ransom pointed a gun at the driver and ordered him to stop the car and get out, the search warrant states.  The victim complied and Ransom allegedly drove off with the other men in the victim’s car.  About 90 minutes later, Illinois State Police identified the vehicle on the South Side of Chicago and ordered it to stop, but the car fled, the search warrant states.  After a 25-minute chase, ISP forced the vehicle to a stop in the city’s West Loop neighborhood, arrested Ransom and the others after a foot chase, and discovered a handgun, the search warrant states.

The indictment charges Ransom with carjacking and using, carrying, and brandishing a firearm during a crime of violence.  The carjacking count is punishable by up to 15 years in federal prison.  The firearm count carries a minimum prison term of seven years and a maximum of life, which must be served consecutively to the sentence imposed for the underlying carjacking offense. 

Ransom was arrested Friday.  A detention hearing is set for Tuesday at 3:00 p.m. before U.S. Magistrate Judge M. David Weisman.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by ISP and the Chicago Police Department.  The government is represented by Assistant U.S. Attorney Jared C. Jodrey.

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

CHICAGO — A man was sentenced today to more than 12 years in federal prison for stealing a vehicle at gunpoint in Chicago and striking a bicyclist while fleeing from police.

On the afternoon of May 27, 2020, ELIAS QUINONES-FIGUEROA forcibly took a Chevrolet Tahoe sport-utility vehicle from a victim who was cleaning the car in the Noble Square neighborhood of Chicago.  Quinones-Figueroa brandished a handgun and drove off in the vehicle after the victim complied with demands to give up the car.  Nearly three hours later, Quinones-Figueroa was driving the carjacked Tahoe when he noticed a Chicago Police vehicle and drove off in the opposite direction at a high rate of speed.  Quinones-Figueroa drove through multiple stop signs and a red light before striking the bicyclist and crashing into a parked car in the city’s West Town neighborhood.

Quinones-Figueroa, 21, of Chicago, pleaded guilty earlier this year to one count of carjacking and one count of brandishing a firearm during a crime of violence.  U.S. District Judge Virginia M. Kendall sentenced Quinones-Figueroa to seven years for the firearm offense, to be followed by five years and seven months for the carjacking, for a total prison sentence of 12 years and seven months.  Judge Kendall also ordered Quinones-Figueroa to pay $5,000 in compensation to the injured bicyclist and $1,000 in compensation to the victim of the carjacking.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department.  Valuable assistance was provided by the Cook County State’s Attorney’s Office.  The government was represented by Assistant U.S. Attorney Shawn D. McCarthy.

CHICAGO — A suburban Chicago physician prescribed opioids to patients without a medical examination or visit and then fraudulently billed Medicare for the nonexistent treatment, according to a criminal charge filed in federal court.

ELIZA DIACONESCU, 73, of Lake Forest, Ill., is charged with one count of health care fraud.  The charge is punishable by a maximum sentence of ten years in federal prison.  Arraignment is scheduled for July 18, 2022, at 11:00 a.m., before U.S. Magistrate Judge Maria Valdez.

The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert J. Bell, Special Agent-in-Charge of the Chicago Division of the DEA; Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General; Irene Lindow, Special Agent-in-Charge of the Chicago Division of the U.S. Department of Labor, Office of Inspector General; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorneys Jared Hasten, Charles W. Mulaney, and Ernest Y. Ling.

The charge was brought by the U.S. Attorney’s Office’s Opioid Task Force, which was formed in 2019 for the purpose of combatting the growing number of unlawful distributions of controlled substances fueling the nation’s opioid crisis.

A criminal information filed Thursday in federal court alleges that from 2016 to 2021, Diaconescu pre-signed blank prescriptions for hydrocodone, oxycodone, and fentanyl for patients of her pain clinic in Gurnee, Ill., so that the prescriptions could be provided to the patients when she was not at the clinic.  The patients picked up the pre-signed prescriptions for the opioids from other workers at the clinic without having a contemporaneous examination with Diaconescu, the information states.

Diaconescu then knowingly submitted false claims seeking reimbursement from Medicare for the purported visits, knowing that such visits did not occur.  Diaconescu and others at the clinic created false paperwork indicating that Diaconescu had face-to-face exams with patients when, in fact, the patients had come only to pick up the pre-signed prescriptions and had not visited with Diaconescu, the charge alleges.

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

The United States Attorney’s Office for the Northern District of Illinois today filed a federal civil lawsuit against the CHICAGO CUBS, alleging the team failed to ensure that recent additions and alterations at Wrigley Field were appropriately accessible to individuals with disabilities, including people who use wheelchairs, as required by the Americans with Disabilities Act.

The lawsuit alleges that the team’s renovation, rehabilitation, expansion, and reconstruction of Wrigley Field – a multi-year undertaking known as “the 1060 Project” – discriminated against individuals with disabilities.  To facilitate the changes made by the 1060 Project, the Cubs rebuilt a sizable portion of the preexisting Wrigley Field facility, including demolishing and reconstructing the bleachers and tearing down most of the lower grandstand and rebuilding it.  These extensive changes were subject to the ADA’s requirements for design, construction, and alterations, the lawsuit states.

The lawsuit alleges that throughout the 1060 Project, the Cubs failed to provide wheelchair users with adequate sightlines as compared to standing patrons or incorporate wheelchair seating into new premium clubs and group seating areas.  In the general admission areas, the Cubs designed and constructed the wheelchair seating so that it is largely clustered in the last row of seating sections – in violation of the requirements of the ADA Standards for Accessible Design – and failed to remove architectural barriers to access in unaltered portions of Wrigley Field where it was readily achievable to do so, the lawsuit states.

The lawsuit, filed in U.S. District Court in Chicago, names as defendants the Cubs and other corporate owners and operators of the Wrigley Field facility – CHICAGO BASEBALL HOLDINGS LLC, WRIGLEY FIELD HOLDINGS LLC, and WF MASTER TENANT LLC.  The suit seeks declaratory, injunctive, and monetary relief to remedy the alleged ADA violations.  Assistant U.S. Attorneys Abraham J. Souza and Patrick W. Johnson represent the government.

“The Cubs rebuilt much of Wrigley Field and had ample opportunity – and a significant ADA obligation – to incorporate wheelchair seating and other accessible elements into the updated facility,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois.  “The U.S. Attorney’s Office remains committed to ensuring equal accessibility for individuals with disabilities.”

“For 32 years, the ADA has set clear requirements to ensure that public venues such as sports facilities are accessible,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division.  “The Justice Department will vigorously enforce the law to ensure that fans with disabilities and their families are able to enjoy their ballpark experience.”

Title III of the ADA prohibits public accommodations, such as sports stadiums, from excluding people with disabilities from enjoying goods, services, privileges, facilities, and advantages provided.  To learn more about the obligations of public accommodations under federal disability rights statutes, call the Department of Justice’s toll-free ADA information line at 800-514-0301, 800-514-0383 (TTY).

For more information regarding the Department of Justice’s efforts to combat discrimination in public accommodations, please visit the official ADA government website.

CHICAGO — A former investigator for the Illinois Department of Agriculture has been charged with federal civil rights violations for allegedly grabbing and groping several operators of animal care facilities while on duty.

An indictment unsealed today in U.S. District Court in Chicago charges JOSE GUILLEN, 41, of Melrose Park, Ill., with four counts of deprivation of civil rights under color of law and one count of obstruction of justice.  Guillen pleaded not guilty to the charges at his arraignment this afternoon in federal court.  A status hearing was scheduled for Aug. 10, 2022, at 9:00 a.m., before U.S. District Judge Joan Humphrey Lefkow.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorneys Amarjeet Bhachu and Diane MacArthur.

Guillen worked for the Illinois Department of Agriculture as an animal and animal products investigator, conducting on-site inspections of animal care facilities in Cook County, Ill., to ensure compliance with state laws.  In his official capacity as an investigator, Guillen had the power to influence whether an animal care facility received a license to operate and could continue in operation after receiving the license.  The indictment accuses Guillen of grabbing and groping the victims in 2019, 2020, and 2021 while Guillen was on duty and acting under color of law as a state employee. 

The obstruction charge accuses Guillen of knowingly providing false testimony during a deposition last year in a federal civil lawsuit filed by one of the alleged victims.  The charge states that Guillen falsely testified under oath that he had accidentally touched the victim’s buttocks during the course of an on-site inspection at an animal care facility, and that he falsely denied touching other alleged victims.

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

If you have additional relevant information related to the charged offenses or the defendant, you are encouraged to contact the FBI Chicago Field Office at (312) 421-6700.

CHICAGO — A suburban Chicago doctor who specialized in removing moles to screen for cancer was charged today in federal court with submitting fraudulent claims for reimbursement to Medicare and a private insurer.

JOHN A. GREAGER II owned and operated Cancer Therapy Associates S.C., in Lombard, Ill.  From 2015 to 2021, Greager fraudulently obtained approximately $4.1 million from Medicare and Blue Cross Blue Shield of Illinois by submitting fraudulent claims that falsely represented that certain health care services, including mole removal procedures, had been provided to patients, according to a criminal information filed in U.S. District Court in Chicago.  Greager knew that those services were not provided as represented on the claims and, at times, were medically unnecessary, the information states.   The information also alleges that Greager removed more moles from patients than was medically necessary, and then dictated notes and provided paperwork to employees to submit fraudulent claims for reimbursement for those medical procedures.

The information charges Greager, 74, of Hinsdale, Ill., with one count of health care fraud.  Arraignment in federal court has not yet been scheduled.

The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago; and Amy K. Parker, Special Agent-in-Charge of the U.S. Office of Personnel Management Office of the Inspector General.  The government is represented by Assistant U.S. Attorneys Jared Hasten and Virginia Hancock.

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

Health care fraud is punishable by a maximum sentence of ten 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 member of a violent Chicago street gang has been sentenced to more than 35 years in federal prison for engaging in a pattern of racketeering activity that included multiple murders, armed robberies, drug trafficking, and extortion.

TREMAYNE THOMPSON, 38, of Chicago, pleaded guilty last year to a racketeering conspiracy charge.  Thompson admitted in a plea agreement that he conspired with leadership of the Four Corner Hustlers street gang to engage in a pattern of racketeering activity that included using violence and intimidation to protect the gang’s drug dealing activities, primarily on the West Side of Chicago.  Thompson admitted participating in the April 2003 murders of George King and Willie Woods.  Thompson stated in his plea agreement that he shot the victims after receiving instructions to do so from a leader of the Four Corner Hustlers.  In addition to the murders, Thompson sold heroin and crack cocaine and committed multiple armed robberies to further the gang’s interests.

U.S. District Judge Thomas M. Durkin imposed the 427-month prison sentence after a hearing on July 6, 2022, in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Kristen de Tineo, 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.  

The investigation was led by the Organized Crime Drug Enforcement Task Force (OCDETF).  OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, and other 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 criminal networks.  Substantial assistance was provided by the Chicago FBI’s Safe Street Task Force, the Chicago High Intensity Drug Trafficking Area Task Force (HIDTA), ATF’s Chicago Crime Gun Strike Force, and the Chicago Police Gang Investigations Division.  Additional assistance was provided by the Illinois Secretary of State Police Department, U.S. Bureau of Prisons, Illinois Department of Corrections, and Illinois State Police. 

“For nearly two decades, Tremayne Thompson terrorized the West Wide of Chicago as a member and enforcer for the Four Corner Hustlers street gang,” Assistant U.S. Attorneys Kavitha J. Babu and William Dunne argued in the government’s sentencing memorandum.  “The defendant, along with other members of the gang, peddled heroin and crack cocaine, robbed people at gunpoint, extorted others, and murdered men as they stood on city sidewalks.  Every year the defendant is incapacitated is a year that the people who live on the West Side of Chicago are safer.”

Thompson was indicted on the racketeering charge in 2017 along with eight other alleged members of the Four Corner Hustlers and two additional defendants.  Seven co-defendants pleaded guilty and one went to trial and was convicted.  Thompson is the fourth defendant to be sentenced.

CHICAGO — A suburban Chicago man has been sentenced to 12 years in federal prison on charges of child pornography and traveling to engage in sexual conduct with a minor.

JEREMIAH HARRIS, 22, of Naperville, Ill., pleaded guilty in February to one count of receipt of child pornography and one count of traveling with the intent to engage in illicit sexual conduct.  U.S. District Judge Manish S. Shah imposed the prison term Wednesday and ordered that it be followed by eight years of court-supervised release.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The investigation was conducted by the FBI Chicago Child Exploitation and Human Trafficking Task Force, which includes the Cook County Sheriff’s Office, Cook County State’s Attorney’s Office, and Chicago Police Department.  The Crystal Lake, Ill., Police Department and FBI Resident Agency in Waco, Texas, provided valuable assistance.  The government was represented by Assistant U.S. Attorney Kelly L. Guzman.

The child pornography conviction involved sexually explicit photographs and videos that Harris repeatedly requested from a 17-year-old boy in 2020.  Harris admitted in a plea agreement that the boy sent the photos and videos of himself to Harris in exchange for $2,000.  Harris also admitted in the plea agreement that he requested and received other images of child pornography from two other minor boys, and he attempted to entice one of them to engage in sexual activity.

The travel charge pertains to Harris traveling in 2019 from Dallas, Texas, to Orlando, Fla., to engage in sexually explicit conduct with a 15-year-old boy.  Harris admitted in the plea agreement that he directed the boy to meet him in a public bathroom, where Harris sexually assaulted him.

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

CHICAGO — A federal judge today sentenced a Chicago attorney to four months in prison for false statement and tax offenses in connection with funds he received from the failed Washington Federal Bank for Savings.

PATRICK D. THOMPSON, 52, of Chicago, was convicted in February on all seven counts against him, including five counts of willfully filing a false income tax return and two counts of knowingly making a false statement to the Federal Deposit Insurance Corp.  U.S. District Judge Franklin U. Valderrama imposed the sentence 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; Kathy Enstrom, Special Agent-in-Charge of the FDIC’s Office of Inspector General, Chicago Regional Office; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Sally Luttrell, Assistant Inspector for Investigations of the Department of the Treasury, Office of Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General.  Valuable assistance was provided by the City of Chicago Inspector General’s Office.  The government was represented by Assistant U.S. Attorneys Michelle Petersen, Brian Netols, and Jeremy Daniel.

According to evidence presented at trial, Thompson from 2011 to 2014 received $219,000 from Chicago-based Washington Federal via a purported loan and other unsecured payments.  He made one re-payment on the loan but then stopped making payments, and he failed to pay interest on the funds he received.  Washington Federal was shut down in 2017 after the Office of the Comptroller of the Currency determined it was insolvent and had at least $66 million in nonperforming loans.  When the FDIC, as successor in interest to Washington Federal, attempted to obtain repayment from Thompson in 2018, he falsely stated that he owed only $110,000 and that those funds were for home improvement.  In reality, Thompson knew he had actually received $219,000 in three separate installments – none of which went towards home improvements – and that $110,000 of it was paid by the bank directly to Thompson’s law firm as Thompson’s capital contribution to the firm.

The tax charges stemmed from Thompson falsely representing on five years of income taxes that he was entitled to a mortgage interest deduction for interest payments made on money he received from Washington Federal, even though he knew the loan was not a mortgage loan and he did not make interest payments as reported on those returns.

CHICAGO — The U.S. Attorney’s Office today announced federal charges against three individuals in connection with separate violent carjackings in Chicago.

United States v. Kimbrough, 22 CR 330

TRIMANE O. KIMBROUGH, 20, of Chicago, is charged with one count of carjacking and one count of using, carrying, and brandishing a firearm during a crime of violence, according to an indictment returned Tuesday in U.S. District Court in Chicago.  Kimbrough allegedly brandished a semiautomatic handgun and stole a 2010 Mazda 6 from a victim in Chicago on May 2, 2022. 

The carjacking count is punishable by up to 15 years in federal prison.  The firearm count carries a minimum prison sentence of seven years and a maximum of life, which must be served consecutively to the sentence imposed for the carjacking offense. 

Kimbrough is currently in law enforcement custody.  Arraignment in federal court in Chicago has not yet been scheduled. 

The investigation was conducted by the FBI-led Violent Crimes Task Force, which includes the Cook County Sheriff’s Office and Illinois State Police, and the Chicago Police Department.  Valuable assistance was provided by the Northwestern University Police Department.  The government is represented by Assistant U.S. Attorney Jasmina Vajzovic.

United States v. Clay and Cain, 22 CR 333

ALLEN CLAY, 20, and NARONN CAIN, 25, both of Chicago, are each charged with one count of carjacking and one count of using, carrying, and brandishing a firearm during a crime of violence, according to an indictment returned Wednesday in U.S. District Court in Chicago.  Clay brandished a semiautomatic handgun and Cain brandished a semiautomatic rifle when the pair stole a 2011 Kia Optima from a victim in Chicago on April 25, 2022, the indictment states. 

The carjacking count is punishable by up to 15 years in federal prison.  The firearm count carries a minimum prison sentence of seven years and a maximum of life, which must be served consecutively to the sentence imposed for the carjacking offense. 

Clay and Cain are currently in law enforcement custody.  Arraignments in federal court in Chicago have not yet been scheduled. 

The investigation was conducted by the FBI-led Violent Crimes Task Force, which includes the Cook County Sheriff’s Office and Illinois State Police, and the Chicago Police Department.  The government is represented by Assistant U.S. Attorney Albert Berry III.

~~~

“Our message to would-be carjackers is simple: Committing a senseless act of violence like carjacking will earn you a home in federal prison for a long time,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois.  “We are working closely with our law enforcement partners to pursue, prosecute, and detain violent carjackers and gun offenders in Chicago.”

“This indictment shows that the Violent Crimes Task Force is hard at work removing carjackers and illegal weapons from our streets,” said Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  “The FBI is committed to using every resource in our arsenal to stop carjackings and make our communities safer.”

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.

CHICAGO — A Chicago man has been arrested on a federal firearm charge for allegedly illegally possessing a handgun equipped with a device converting it into an automatic weapon.

An indictment unsealed today in U.S. District Court in Chicago charges PARIS SHEPHERD, 31, with one count of illegal possession of a firearm.  Shepherd had previously been convicted of a felony and was prohibited by federal law from possessing a firearm.

The indictment accuses Shepherd of illegally possessing the loaded semiautomatic handgun in the Auburn Gresham neighborhood of Chicago on June 14, 2022.  The gun was allegedly equipped with a conversion device, also known as a “Glock switch,” which transforms firearms into automatic weapons capable of shooting more than one shot with a single pull of the trigger.

Shepherd was arrested this morning.  He is scheduled to make an initial appearance in federal court this afternoon before U.S. Magistrate Judge Jeffrey T. Gilbert.

The indictment and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, 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.  The government is represented by Assistant U.S. Attorneys Margaret Steindorf and Paul Schied.

“The illegal possession of firearms equipped with conversion devices poses a grave threat to public safety,” said U.S. Attorney Lausch.  “Our office is using every available federal law enforcement tool to keep dangerous weapons out of the wrong hands.”

Holding illegal firearm possessors 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 offenses.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  The charge in the indictment is punishable by up to ten 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 who illegally possessed a loaded handgun on a Chicago sidewalk and tried to flee from police has been sentenced to nearly seven years in federal prison.

LAMONT HAGGARD illegally possessed the firearm on the evening of Jan. 4, 2019.  Chicago Police tactical officers observed Haggard reach for an object in his waistband while walking on a sidewalk in the West Garfield Park neighborhood on the city’s West Side.  Haggard ran from the officers and discarded the gun in a vacant lot before he was arrested in an outdoor stairwell in the rear of a nearby apartment building.

Haggard, 32, of Chicago, pleaded guilty earlier this year to a federal charge of illegal possession of a firearm.  Haggard had previously been convicted of multiple state felonies and was prohibited by federal law from possessing a firearm.

U.S. District Judge Charles R. Norgle on June 24, 2022, imposed an 80-month prison sentence.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, 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.  Valuable assistance was provided by the Cook County State’s Attorney’s Office.

“The possession of a firearm by a convicted felon is serious in nature,” Assistant U.S. Attorney Aaron R. Bond argued in the government’s sentencing memorandum.  “The presence of this loaded firearm in the hands of defendant, and his actions when he possessed it, were a recipe for potential disaster.”

ROCKFORD — An inmate at the United States Penitentiary in Thomson, Ill., was indicted today by a federal grand jury on charges of murder, assault, and possession of a weapon in connection with the death of a fellow inmate. 

HOUSTON A. CLYDE, 25, was charged with second-degree murder, assault resulting in serious bodily injury, and possession of a weapon, according to an indictment returned in U.S. District Court in Rockford.  Arraignment has not yet been scheduled.

The three-count indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorney Jessica S. Maveus.

According to the indictment, Clyde and the victim were cellmates at USP Thomson.  On Nov. 27, 2020, Clyde stabbed the victim numerous times with a weapon, resulting in fatal injuries.

Second-degree murder carries a maximum sentence of life imprisonment, while the maximum sentence for the assault charge is ten years imprisonment, and the maximum sentence for the possession of a weapon is five years imprisonment.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

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

CHICAGO — Two Indiana men have been charged with federal firearm violations for allegedly trafficking ten guns, including four semiautomatic rifles and two “ghost guns,” from Indianapolis to Chicago last week.

DEVANTE T. BROWN, 27, and COREY SARTIN, 19, both of Indianapolis, Ind., are charged with conspiracy and willfully dealing firearms without a license.  Brown is also charged with illegally possessing firearms as a previously convicted felon.  Brown and Sartin were arrested Friday.  They are scheduled to make initial appearances in U.S. District Court in Chicago today at 2:00 p.m. before U.S. Magistrate Judge Young B. Kim.

The charges and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, 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.  Valuable assistance was provided by the Dolton, Ill., Police Department.  The government is represented by Assistant U.S. Attorneys Jasmina Vajzovic and Paige Nutini.

According to a federal criminal complaint, Brown and Sartin on June 24, 2022, illegally sold ten firearms, including four semiautomatic handguns, four semiautomatic rifles, and two privately made “ghost guns.”  A firearm is considered a “ghost gun” when it contains no identifiable serial number and was manufactured from parts collected from various sources.  The transaction occurred in the Chicago suburb of Calumet City, Ill., the complaint states.  Unbeknownst to Brown and Sartin, the individuals to whom they allegedly sold the firearms were undercover law enforcement officers.  In a text message to one of the undercover officers prior to the deal, Brown allegedly stated, “Trust me we gone keep you with all the artillery.  I come across guns all day long.  We gone do good business together.”

In addition to the ten firearms allegedly trafficked from Indiana, the complaint also accuses Sartin and Brown of selling four other firearms to an undercover officer on May 31, 2022, in a retail store parking lot in the Pullman neighborhood of Chicago.  Sartin also allegedly sold a firearm to an undercover officer on April 9, 2022, in the Chicago suburb of Lynwood, Ill., the charges allege.

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

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

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.  The illegal possession charge is punishable by up to ten years in federal prison, while the unlawful dealing and conspiracy charges each carry a maximum sentence of five years.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A suburban Chicago man who allegedly possessed and transported sexually explicit images of children has been indicted on federal child pornography charges.

BRANDON J. BERGTHOLD, 35, of Frankfort, Ill., is charged with possession and transportation of child pornography, according to an indictment returned Thursday in U.S. District Court in Chicago.  The federal charges carry enhanced sentencing penalties, including a mandatory minimum sentence of 15 years in federal prison and a maximum of 40 years, due to a prior qualifying conviction involving a minor, for which Bergthold has had to register as a sex offender.

From July to September of last year, using the screenname “freakybrando86,” Bergthold communicated with and sent images of child pornography to an individual on the Kik online messaging platform, according to a criminal complaint previously filed in the case.  Unbeknownst to Bergthold, the individual with whom he was communicating was an undercover law enforcement officer, the complaint states.  The indictment alleges that on Aug. 7, 2021, Bergthold possessed on his cell phone an image of child pornography involving a prepubescent minor, and that on Oct. 17, 2021, he transported a file containing an image of child pornography.

Bergthold is currently detained without bond in federal custody.  Arraignment in U.S. District Court in Chicago has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The Cook County Sheriff’s Office provided valuable assistance.  The government is represented by Assistant U.S. Attorney Alejandro G. Ortega.

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

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

CHICAGO — The owner of a suburban Chicago manufacturing company has pleaded guilty to a federal tax offense for withholding millions of dollars in employee payroll taxes but failing to remit the money to the IRS.

As the president and sole owner of Lane Tool & Manufacturing Company Inc. in South Elgin, Ill., EDWARD T. ARNIERI was required to collect, truthfully account for, and pay over to the IRS payroll taxes on wages paid to Lane Tool employees.  Although Arnieri issued paychecks to employees reflecting that the company had withheld income and Social Security amounts from their wages, Arnieri willfully failed to pay the money to the IRS.  This conduct resulted in tax losses from 2010 to 2018 of more than $3.8 million.

Arnieri’s failure to pay over taxes for employees also resulted in the filing of inaccurate individual tax returns for himself, resulting in additional tax losses of nearly $450,000 from 2010 to 2017. 

In total, Arnieri’s tax crimes resulted in total tax losses of more than $4.3 million.

Arnieri, 71, of St. Charles, Ill., pleaded guilty Wednesday to a federal charge of willfully failing to pay over taxes.  The conviction is punishable by a maximum sentence of five years in federal prison, plus restitution to the U.S. Treasury and State of Illinois.  U.S. District Judge Jorge L. Alonso set sentencing for Sept. 28, 2022.

The guilty plea 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.

CHICAGO — A Chicago man has been sentenced to nearly three years in federal prison for setting fire to a Chicago Police Department vehicle during a period of civil unrest in downtown Chicago in 2020.

On May 30, 2020, TIMOTHY O’DONNELL ignited a piece of cloth with a lighter and placed the cloth into the fuel filler of the marked CPD vehicle while it was parked in the 200 block of North State Street in Chicago.  The fire spread throughout the vehicle and destroyed it.  O’Donnell set the fire while wearing a “Joker” mask that partially covered his face.  The vehicle was unoccupied, and no injuries were sustained.

At the time of the fire, Chicago Police officers were in the downtown Loop neighborhood of Chicago investigating reports of disorder and unrest.

O’Donnell, 33, pleaded guilty earlier this year to a federal charge of interfering with law enforcement during the commission of civil disorder.  U.S. District Judge Andrea R. Wood imposed the 34-month prison sentence after a hearing Wednesday in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  CPD provided valuable assistance.

“The defendant’s crime was extremely serious,” Assistant U.S. Attorney James P. Durkin argued in the government’s sentencing memorandum.  “He added to the chaos of an already chaotic night for no reason other than to live out his own fantasies.”

CHICAGO — A former Executive Director of the Grayslake Area Chamber of Commerce and Industry in Grayslake, Ill., was indicted today on federal fraud charges for allegedly misappropriating at least $300,000 from the organization.

KAREN CHRISTIAN-SMITH served as the Chamber’s Executive Director from 2006 to 2019.  From 2013 to 2019, Christian-Smith issued checks from the Chamber’s bank accounts to herself and deposited them into her personal accounts, according to the indictment returned in U.S. District in Chicago.  She then spent the money for her own personal use and benefit, the indictment states.

Christian-Smith attempted to cover up the fraud by submitting false and misleading financial reports to the Chamber’s Board of Directors and false payroll reports to the Chamber’s accounting firm, the charges allege.  She also filed with the IRS false and misleading tax returns that she knew substantially underreported the amount of money she had fraudulently paid herself from the Chamber’s bank accounts, the indictment states.  As a result of the scheme, Christian-Smith fraudulently misappropriated at least $300,000 in funds belonging to the Chamber, the indictment alleges.

The indictment charges Christian-Smith, 56, of Round Lake Beach, Ill., with six counts of wire fraud.  Arraignment in federal court in Chicago has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Phillip Perlini, Chief of the Grayslake Police Department.  The government is represented by Assistant U.S. Attorney Morris Pasqual.

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 who illegally possessed a stolen semi-automatic handgun in Chicago has been sentenced to six years in federal prison.

DEANDRE MORRISON illegally possessed the loaded firearm on Nov. 23, 2019.  Chicago Police pulled over the vehicle Morrison was driving after a suspected traffic violation in the 7800 block of South Essex Avenue in Chicago’s South Shore neighborhood.  Police discovered the gun wedged between the driver’s seat and the center console of the vehicle.  The gun had previously been reported stolen in Indiana.

Morrison, 29, of Chicago, pleaded guilty last year to a federal charge of illegal firearm possession.  Morrison had previously been convicted of multiple state felonies, including a robbery, and was prohibited by federal law from possessing a firearm.

U.S. District Judge Martha M. Pacold imposed the federal prison sentence June 16, 2022, 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; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department.  Substantial assistance was provided by the Cook County State’s Attorney’s Office.

“The illegal possession of firearms by felons is a very serious offense that threatens the safety of the public,” Assistant U.S. Attorney Jared Hasten argued in the government’s sentencing memorandum.  “Felons who carry loaded firearms will face real consequences — and real punishment — including meaningful time in prison.”

CHICAGO — Former Illinois State Sen. THOMAS E. CULLERTON was sentenced today to a year in federal prison for fraudulently receiving salary and benefits from a labor union.

Cullerton, 52, of Villa Park, Ill., pleaded guilty earlier this year to a federal embezzlement charge.  U.S. District Judge Robert W. Gettleman imposed the year-and-a-day sentence 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; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago.  The government was represented by Assistant U.S. Attorneys Amarjeet S. Bhachu and Erika L. Csicsila.

Cullerton was hired in 2013 by Teamsters Joint Council 25 as a purported union organizer and remained on the payroll until February 2016.  In addition to receiving a salary, monthly car and telephone allowances, and bonuses, Teamsters Joint Council 25 funded Cullerton’s participation in Teamsters Local Union 734’s health and pension funds, which enabled Cullerton to receive health and welfare benefits.

Cullerton admitted in a plea agreement that he did little to no work as an organizer during the time he was on the union payroll.  When his supervisors requested that he perform his job duties, Cullerton routinely ignored them.

Cullerton fraudulently obtained from Joint Council 25 and its members approximately $169,488 in salary, bonuses, and other benefits, approximately $57,662 in health and pension contributions, and approximately $21,678 in reimbursed medical claims.  Cullerton admitted that he used the embezzled money to pay personal expenses, such as his mortgage, utilities, and groceries.

CHICAGO — Federal charges filed today accuse a Chicago man of shooting a Senior Inspector United States Marshal and his K9 partner during the execution of an arrest warrant earlier this month.

TARRION C. JOHNSON, 19, is charged with one count of using a dangerous and deadly weapon to assault the Senior Inspector U.S. Marshal and one count of discharging a firearm during a crime of violence.  The firearm discharge count is punishable by a mandatory minimum sentence of ten years in federal prison and a maximum of life, while the assault charge is punishable by up to 20 years. 

Johnson is currently in law enforcement custody.  An initial appearance in federal court in Chicago has not yet been scheduled.

The federal charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department.  The U.S. Marshals Service provided valuable assistance.  The government is represented by Assistant U.S. Attorney Sivashree Sundaram.

According to a federal criminal complaint, officers with the Great Lakes Regional Fugitive Task Force gathered to arrest Johnson on the afternoon of June 2, 2022, at his residence in the Portage Park neighborhood on Chicago’s Northwest Side.  A state arrest warrant accused Johnson of attempted murder and attempted robbery. 

After Johnson refused to comply with law enforcement’s commands to surrender, some of the officers forced entry into his residence, the federal complaint states.  Johnson brandished a firearm at the officers, one of whom then fired a shot at Johnson, the federal complaint states.  Johnson ran into a bedroom and fired approximately three shots through a window at the Senior Inspector U.S. Marshal and his K9 partner, who were standing outside in a rear alley, the charges allege.  The Senior Inspector U.S. Marshal and his K9 partner were struck by bullets and suffered injuries.

Johnson then reemerged from the bedroom and shot at another officer in the residence, striking the officer’s ballistic shield, the complaint states.  Johnson fled the residence and was arrested by law enforcement.

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

CHICAGO — A Chicago man has been arrested on federal firearm charges for allegedly trafficking more than a dozen guns, including a “ghost gun” and a machine gun, in the city this year.

ANTHONY PEREZ-FLORES, 27, is charged with willfully dealing firearms without a license and illegally possessing firearms as a previously convicted felon.  Perez-Flores was arrested Thursday.  A detention hearing is set for June 22, 2022, at 1:30 p.m., before U.S. Magistrate Judge Young B. Kim.

The charges and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; David Brown, Superintendent of the Chicago Police Department; and Thomas J. Dart, Cook County Sheriff.  The government is represented by Assistant U.S. Attorney Jasmina Vajzovic.

According to a criminal complaint unsealed Thursday in U.S. District Court in Chicago, Perez-Flores sold 13 firearms on ten different occasions in Chicago this year.  The transactions allegedly occurred in an alley in the Dunning neighborhood on the city’s Northwest Side.  One of the firearms was considered a “ghost gun” because it contained no identifiable serial number and had been manufactured from parts collected from various sources.  Another of the firearms was equipped with a machine gun conversion device, commonly known as a “switch,” allowing for multiple rounds to be fired with a single pull of the trigger.  Unbeknownst to Perez-Flores, the individual to whom he sold the guns was an undercover law enforcement officer, the complaint states.

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

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

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

The public is reminded that a complaint contains only charges and is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  The illegal possession charge is punishable by up to ten years in federal prison, while the unlawful dealing charge carries a maximum sentence of five years.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A suburban Chicago man has been sentenced to 18 years in federal prison for persuading or attempting to persuade more than a dozen underage girls to send him sexually explicit images of themselves.

THOMAS VIVIRITO admitted in a plea agreement that in 2018 and 2019 he used Instagram, Snapchat, and text messaging services to persuade or attempt to persuade the minor girls, some of whom were as young as 12 years old, to send him sexually explicit photos and videos.  Vivirito admitted that in some instances he instructed the victims on what type of sexually explicit conduct should be portrayed in the visual depictions of themselves.

Vivirito, 27, of Oak Brook, Ill., pleaded guilty earlier this year to a federal child pornography charge.  U.S. District Judge Virginia M. Kendall imposed the sentence Friday 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; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the Naperville, Ill., Police Department, and the Will County State’s Attorney’s Office.

“Victim by victim, and message by message, defendant groomed and attempted to groom over a dozen young girls over social media,” Assistant U.S. Attorneys Ashley A. Chung and Christine M. O’Neill argued in the government’s sentencing memorandum.  “With each new victim, each sexual message, and each explicit image received or downloaded, defendant robbed young girls of their childhood and wreaked trauma in their lives.”

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

CHICAGO — A man who illegally possessed a semi-automatic handgun in Evanston, Ill., and tried to flee from police has been sentenced to nearly eight years in federal prison.

DARIUS MORALES illegally possessed the firearm on May 8, 2019.  Evanston Police responded to gun shots fired in an alley and saw a silver Jeep Commander pull out and speed away.  The Jeep led police on a high-speed chase through downtown Evanston until it crashed into a fence in the backyard of a residence.  Morales, who was a passenger in the Jeep, left the gun on the fence and tried to run off.  He was arrested a few blocks away.

A federal jury last year convicted Morales, 32, of Evanston, of illegally possessing the firearm.  Morales had previously been convicted of multiple felonies and was prohibited by federal law from possessing a firearm.

Judge Amy J. St. Eve of the U.S. Court of Appeals for the Seventh Circuit, sitting by designation in U.S. District Court in Chicago, on Friday imposed a 94-month prison sentence.  Judge St. Eve found that Morales was the individual who fired the gun in the alley.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Division of the U.S. Drug Enforcement Administration.  Substantial assistance was provided by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; Evanston Police Department; and Cook County State’s Attorney’s Office.  The government was represented by Assistant U.S. Attorneys Jeannice Appenteng and Charles W. Mulaney.

CHICAGO — A federal jury has convicted an excavation company employee of paying kickbacks to a suburban Chicago highway commissioner in exchange for approving hundreds of thousands of dollars in fraudulent invoices for purported road work.

MARIO GIANNINI worked at Bulldog Earth Movers Inc., an excavation company in Bloomingdale, Ill.  From 2012 to 2020, Giannini paid more than $280,000 in kickbacks to ROBERT CZERNEK, Commissioner of the Bloomingdale Township Road District, in exchange for Czernek using his official position to approve payment of stone delivery, dump leveling, and storm sewer invoices submitted to the township by Bulldog.  Czernek would leave handwritten notes for Giannini in predetermined places around the Bloomingdale Township Highway Department office and grounds identifying the information that Bulldog needed to include in the fraudulent invoices.  Czernek later approved the invoices knowing that much of the work and services were never performed.  The fraud scheme resulted in Bloomingdale Township issuing more than $800,000 in checks to Bulldog.

The jury in U.S. District Court in Chicago on Monday convicted Giannini, 60, of Bloomingdale, on all 14 wire fraud counts against him.  Each count is punishable by up to 20 years in federal prison.  U.S. District Judge Matthew F. Kennelly set sentencing for Sept. 7, 2022, at 1:30 p.m.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the IRS Criminal Investigation Division in Chicago, and the DuPage County State’s Attorney’s Office.  The government is represented by Assistant U.S. Attorneys Saurish Appleby-Bhattacharjee and Ashley A. Chung.

Czernek, of Bloomingdale, pleaded guilty earlier this year to one count of wire fraud and admitted accepting the kickbacks and approving the fraudulent invoices.  Czernek agreed to forfeit several items that were criminally derived from the fraud scheme, including a 2014 Lexus RX350, a 1966 Buick Wildcat, and a 1981 Corvette.  Czernek’s sentencing hearing has not yet been scheduled.

The court acquitted a third defendant, DEBRA FAZIO, of Bloomingdale, during trial.

CHICAGO — The former owner of a Chicago home health care company has been sentenced to a year in federal prison for fraudulently obtaining $1.2 million from Medicare through a phony billing scheme. 

HENRY SMILIE was the owner and Chief Executive Officer of Home Physician Services LLC, which arranged in-home health care services for patients who were purportedly elderly and homebound.  From 2012 to 2014, Smilie participated in a scheme to defraud Medicare by submitting approximately $1.97 million in false claims, causing the federally funded program to pay Smilie’s company at least $1.2 million.  The false claims pertained to “care plan oversight” services that were either not rendered or involved treatment that was far less intricate than portrayed in the claims submitted by Smilie’s company to Medicare.

Smilie, 61, of Lake Zurich, Ill., pleaded guilty to a federal health care fraud charge.  U.S. District Judge Jorge L. Alonso imposed the year-and-a-day sentence Tuesday and also ordered Smilie to pay $1.2 million in restitution to Medicare.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The U.S. Department of Health and Human Services Office of Inspector General participated in the investigation.

“Smilie’s crime is a significant one,” Assistant U.S. Attorney Kartik K. Raman argued in the government’s sentencing memorandum.  “In a world that has limited funds to pay for health care, and where budgets are ever-tightening, Medicare paid Smilie and his company for fraudulent claims that could have been used to pay for necessary medical services elsewhere.”

To report health care fraud related to Medicare, log on to https://www.medicare.gov/basics/reporting-medicare-fraud-and-abuse.

CHICAGO — A suburban Chicago diagnostics company that provides home sleep testing will pay $3.5 million to the United States to settle a civil lawsuit accusing the company of defrauding Medicare and four other federal health care programs through kickbacks and unnecessary home sleep testing.

The suit in U.S. District Court in Chicago alleged that SNAP DIAGNOSTICS LLC, a nationwide provider of home sleep testing diagnostic services based in Wheeling, Ill.; its founder, GIL RAVIV; and its vice president, STEPHEN BURTON, violated the False Claims Act and the Anti-Kickback Statute by fraudulently billing Medicare and four other federal health care programs for medically unnecessary services and for services that were occasioned by kickbacks.   The suit alleged that Raviv directed SNAP to submit claims for patients’ second and third nights of home sleep testing when, in fact, the company knew that only a single night of testing was needed to effectively diagnose obstructive sleep apnea and that it routinely tested and claimed only one night for patients with private health insurance.  As a result, the suit alleged that, in addition to defrauding five federal agencies, SNAP unlawfully multiplied the copays it received from senior citizens who were Medicare beneficiaries.  The suit also alleged that SNAP’s business model relied on several unlawful kickback schemes, which incentivized physicians and their staffs to refer all of their home sleep testing services to SNAP.

As part of a settlement agreement approved Friday by U.S. District Judge Mary M. Rowland, SNAP agreed to pay the United States $3.5 million, while Raviv will pay $300,000, and Burton $125,000, for a total settlement amount of $3.925 million.    These payments represent amounts the United States is willing to accept due solely to SNAP’s, Raviv’s, and Burton’s respective financial conditions, as shown by sworn financial disclosures.  SNAP and Raviv also entered into a corporate integrity agreement with the Office of Inspector General of the U.S. Department of Health and Human Services, requiring SNAP to, among other things, retain an independent review organization to perform annual reviews of claims and submit reports to the OIG-HHS.

The settlement was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Cynthia A. Bruce, Special Agent-in-Charge of the U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Southeast Field Office; Gregory Billingsley, Special Agent-in-Charge of the U.S. Department of Veterans Affairs Office of Inspector General’s Central Field Office; Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Martin J. Dickman, Inspector General of the U.S. Railroad Retirement Board Office of the Inspector General in Chicago; and Amy K. Parker, Special Agent-in-Charge of the U.S. Office of Personnel Management Office of the Inspector General.  The government was represented by Senior Litigation Counsel Sarah J. North and Assistant U.S. Attorney Kate Flannery.

“When health care providers violate their obligation to properly bill for federally funded treatment, government programs and American taxpayers pay the price,” said U.S. Attorney Lausch.  “Our office remains committed to protecting taxpayers and preserving the integrity of our federal health care system.”

“American taxpayers should never foot the bill for private companies seeking to profit by defrauding government programs,” said FBI Special Agent-in-Charge Buie.  “The FBI will continue working with law enforcement and prosecutorial partners to fight illegal kickback schemes and ensure that justice is done within the federal medical system.”

“We aggressively investigate cases of fraud, which take money from VA programs meant to benefit our nation’s veterans and their families,” said VA OIG Special Agent-in-Charge Billingsley.  “The VA OIG thanks the U.S. Attorney’s Office and our law enforcement partners for their efforts in this joint investigation.  We encourage anyone who becomes aware of fraud against the VA to contact the VA OIG Hotline.”

“We are proud to be part of this collaborative effort and would like to thank our law enforcement partners and the U.S. Attorney’s Office for their dedication and excellent work in this case,” said RRB-OIG Inspector General Dickman.  “Medicare fraud remains a top federal law enforcement priority and providers who exploit our healthcare system will not be tolerated.”

“The OPM OIG is committed to holding accountable those who seek to enrich themselves by inflating costs and overbilling the Federal Employees Health Benefits Program for medically unnecessary tests,” said OPM OIG Special Agent-in-Charge Parker.  “We applaud our investigative staff and law enforcement partners on today’s settlement, which is a direct result of their hard work investigating these types of health care fraud schemes.”

“Individuals involved in this scheme defrauded TRICARE and I am pleased that the U.S. Attorney’s Office is requiring justice,” said DCIS Special Agent-in-Charge Bruce.  “DCIS agents will continue to pursue individuals who improperly profit from our military health care system and all taxpayers.”

The settlement resolves two civil lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act.  The Act permits private citizens to bring lawsuits on behalf of the United States for false claims, and to share in any recovery.  The United States intervened in the two lawsuits and filed a complaint in intervention prior to the settlement.  The settlement agreement is neither an admission of liability by SNAP, Raviv, or Burton, nor a concession by the United States that its claims are not well founded.

CHICAGO — A man has been sentenced to seven and a half years in federal prison for illegally possessing a loaded semiautomatic handgun and crack cocaine on a Chicago sidewalk.

ANDRE WILLIAMS illegally possessed the gun and drugs on the afternoon of May 6, 2020, on a sidewalk in the West Englewood neighborhood on Chicago’s South Side.  Chicago Police officers responding to a call of suspected criminal activity in the area approached Williams and asked to speak to him.  Williams ran off and led the officers on a two-block foot chase before they apprehended him.  The officers seized the gun, which was loaded with nine rounds of ammunition, and multiple bags of crack cocaine from a pocket of Williams’s sweatshirt.

Williams, 43, of Chicago, pleaded guilty last year to a federal charge of illegal possession of a firearm.  Williams had previously been convicted of multiple state felonies, including a firearm offense, and was prohibited by federal law from possessing the gun.

U.S. District Judge Jorge L. Alonso imposed the 90-month sentence Friday 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; Kristen de Tineo, 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.

“Defendant and other felons who carry guns must understand that illegally possessing weapons on the streets of Chicago translates to real consequences and real punishment, including meaningful time in prison,” Assistant U.S. Attorney Misty N. Wright argued in the government’s sentencing memorandum.

Holding illegal firearm possessors 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 offenses.

CHICAGO — A federal grand jury in Chicago has charged 23 defendants with participating in a fraud scheme through which they allegedly swindled ten life insurance carriers out of at least $26 million in fraudulent benefits.

The defendants submitted fraudulent applications to obtain life insurance policies in the names of various individuals and then induced the carriers to pay death benefits by knowingly misrepresenting the identity of a different deceased person as the insured, according to an indictment unsealed today in U.S. District Court in Chicago.  The fraud scheme charged in the indictment began in 2013 and continued until last month.  Among the defendants are sets of spouses and, in some cases, their children, as well as an insurance agent who owned a side business that performed medical examinations on applicants for term life insurance policies.  The indictment seeks forfeiture from the defendants of at least $26 million in alleged ill-gotten gains, as well as nine luxury automobiles, eight Rolex watches, and properties in the Chicago suburbs of Orland Park, Bridgeview, and Burbank.

The indictment charges the 23 defendants with multiple counts of wire and mail fraud.  Most of the defendants were arrested Thursday in Illinois and Florida and will be making initial appearances in federal courts in Chicago, Orlando, Tampa, and Miami.

The indictment and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Nicholas A. Pecora, Jr., Chief of the Arlington Heights, Ill., Police Department.  Valuable assistance was provided by the Cook County State’s Attorney’s Office, U.S. Marshals Service, and United States Attorney’s Offices for the Middle and Southern Districts of Florida.  The government is represented by Assistant U.S. Attorneys Philip N. Fluhr and Andréa L. Campbell.

“The fraud scheme charged in the indictment involved an elaborate deception perpetrated against multiple insurance companies for the purpose of financial gain,” said U.S. Attorney Lausch.  “I commend the FBI Chicago Field Office and the Arlington Heights Police Department for their diligent work in uncovering this complex scheme and seeking to hold the defendants accountable for their personal and economic harms.”

“We will not allow deceitfulness to prevail for selfish financial gain,” said FBI SAC Buie.  “The FBI is proud to work with our local law enforcement and prosecutorial partners to fight these extravagant fraud schemes and ensure justice is served.”

“The Arlington Heights Police Department is proud of the results achieved by detectives and agents who investigated this multistate fraud scheme involving a structured plan designed to defraud numerous insurance companies,” said AHPD Chief Pecora.  “This investigation is a clear example of local and federal partners working in collaboration to defeat the criminal element and halt their unlawful activity.”

Charged in the indictment are JAMES MILLS, also known as “Jamie Montes,” 47, of Oak Lawn, Ill., JOSEPH BROWN, 50, of Chandler, Ariz., JULEY ELY, 47, of Oak Lawn, Ill., GINGER ELY, 26, of Oak Lawn, Ill., SYLVIA EVANS, 48, of Kissimmee, Fla., HOLLY STERGO, also known as “Holly Stego,” 29, of Missouri City, Texas, JESSICA VACA, 51, of Deerfield Beach, Fla., ANGELA BECHO, 30, of Fort Lauderdale, Fla., FRANK COSTELLO, 44, of Hoffman Estates, Ill., JOE ROUGA, 29, of Oak Lawn, Ill., MARY BACCO, 53, of Bridgeview, Ill., STEVE MONTEGA, also known as “Fonzie Cerano,” 44, of Orland Park, Ill., NIKO RISTICK, 23, of Orland Park, Ill., TONY RISTICK, also known as “Anthony Walker,” 52, of Orlando, Fla., RACHEL MONTEGA, also known as “Samantha Walker,” 48, of Orlando, Fla., ROBERT CRAIG, also known as “Jake,” 37, of Lakeland, Fla., STEVE VEGA, also known as “Cabby,” 45, of Fort Lauderdale, Fla., SOPHIE BECHO, 46, of Fort Lauderdale, Fla., MARK BLANCA, 30, of Burbank Ill., DIANA LUMAS, 30, of Burbank, Ill., RICKY BLANCA, also known as “Fonz Ristick,” 48, of Orland Park, Ill., DAVID JENSEN, also known as “Tony,” 52, of Lakeland, Fla., and JOE JOHN, 66, of Arlington Heights, Ill.

The charges allege that the defendants paid premiums on the fraudulently obtained policies for two years, at which time the period for contestability expired, making it more difficult for insurance companies to decline death benefit claims.  Fraudulent claims for death benefits would then be submitted, using records that falsely identified a different deceased person as the insured, the indictment states.  To support the fraudulent claims, the schemers obtained false death certificates in the names of the insureds and made false representations about the deceased person to law enforcement, first responders, medical personnel, funeral home staff, and cemetery employees, the charges allege.

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.  Each count in the indictment is punishable by up to 20 years in federal prison.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — With the summer months approaching, John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today provided an update on federal prosecutions and strategies to combat violent crime in Chicago and the surrounding area.

“Anyone thinking of engaging in gun violence or trafficking dangerous narcotics in Chicago this summer needs to know that a federal prosecution could await them,” said U.S. Attorney Lausch.  “A primary goal of our office is to reduce violent crime, and we will continue to use every available federal law enforcement tool to keep people safe this summer and beyond.”

The centerpiece of the Department of Justice’s violent crime reduction efforts continues to be Project Safe Neighborhoods (PSN).  Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems and develop comprehensive solutions to address them.  PSN is an evidence-based program that focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs to pursue lasting reductions in crime.

The U.S. Attorney’s Office in Chicago also participates in a Department of Justice cross-jurisdictional strike force, led locally by U.S. Attorney Lausch, to disrupt illegal firearms trafficking and reduce gun violence.   As part of the Chicago firearms trafficking strike force, the U.S. Attorney’s Office collaborates with the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and to identify patterns, leads, and potential suspects in violent gun crimes.  The Chicago strike force’s efforts have been substantially enhanced by the Chicago Police Department’s (CPD’s) Gun Investigations Team.

“Firearms traffickers and straw purchasers enable violence,” said U.S. Attorney Lausch.  “The cross-jurisdictional strike force has increased collaboration with our federal, state, and local law enforcement partners and enhanced our longstanding efforts to hold accountable individuals or groups who illegally traffic firearms into Chicago.”

In addition to a sustained focus on prosecutions of federal firearm offenses, the U.S. Attorney’s Office endeavors to disrupt violent crime by seeking pre-trial detention for defendants who pose a danger to the community and pursuing appropriate prison sentences to deter dangerous individuals from continuing to cause violence in their communities. 

Following up on activities most recently reported in November of last year, the U.S. Attorney’s Office remains active in fighting violent crime through enforcement actions, prosecutions, and community partnerships, as illustrated by the examples below from the past six months.

Enforcement Actions and Prosecution Activity

The U.S. Attorney’s Office works closely with U.S. law enforcement agencies, including ATF, Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), Postal Inspection Service (USPIS), Internal Revenue Service Criminal Investigation Division (IRS-CI), and U.S. Marshals Service (USMS), to investigate and prosecute a variety of violent crimes.  State and local partners in this effort include CPD, Illinois State Police (ISP), Illinois Department of Corrections (IDOC), Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, Rockford Police Department (RPD), and other police departments throughout northern Illinois.

The primary focus of these collaborative law enforcement efforts is to investigate and prosecute gangs and other groups of individuals who work in concert to commit violent crimes, including murders, attempted murders, robberies, carjackings, drug trafficking, and firearms trafficking.  In addition, these enforcement efforts also identify for potential federal prosecution individual offenders who drive violence.

Firearm and violent crime investigations in Chicago have also been bolstered by an important tool from ATF – the National Integrated Ballistic Information Network (NIBIN).  NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms.  NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles.  Federal, state, and local law enforcement in Chicago have used NIBIN extensively to help solve violent crimes and prosecute trigger-pullers and other gun offenders. 

Racketeering and Gang-Related Prosecutions

“Combating the unacceptable level of gang violence in Chicago has been and will continue to be a top priority in our office,” said U.S. Attorney Lausch.

• A member of a violent Chicago street gang was sentenced to 35 years in federal prison for engaging in a pattern of racketeering activity that included the murder of a rival gang member. LUIS CONTRERAS, of Chicago, admitted that the murder was committed to further the purposes of the Latin Saints, a criminal organization whose members engaged in drug dealing and violence on Chicago’s South Side.  ATF, HSI, and CPD led the investigation.

Firearm Trafficking and Firearm Theft Prosecutions

“We are using every available federal law enforcement tool to continue to bring impactful cases that hold firearms traffickers accountable and reduce violent crime in Chicago,” said U.S. Attorney Lausch.

• DEVON DOW, of Chicago, was charged with trafficking individually manufactured “ghost guns” in Chicago.  Dow allegedly sold seven “ghost guns” to an undercover law enforcement officer on the city’s South Side.  The firearms were considered “ghost guns” because they contained no identifiable serial number and had been manufactured from parts collected from various sources.  HSI and CPD led the probe.
• Five men were indicted for allegedly trafficking guns from St. Louis to Chicago.  The charges accuse ROBERT NARUP, of Washington, Mo., of buying firearms at gun shows throughout the United States and illegally selling them to JEROME BOYKIN, of St. Louis, Mo.  Boykin then allegedly brought the guns to Chicago and sold them to ROGELIO MANCERA, of Schaumburg, Ill., in exchange for marijuana.  The charges accuse Mancera, RODOLFO ORTEGA of Chicago, and HECTOR CHACON of Chicago, with selling the guns on the streets of Chicago.  ATF and CPD’s Gun Investigations Team led the probe, with assistance from the U.S. Attorney’s Office for the Eastern District of Missouri.
• A federal jury convicted JOSEPH GHANDOUR, of Glenview, Ill., of illegally selling a “ghost gun” to a convicted felon in a suburban Chicago grocery store parking lot.  Unbeknownst to Ghandour, the felon to whom he sold the rifle was cooperating with law enforcement.  FBI investigated.
• A man was indicted on firearm charges for allegedly straw purchasing 27 handguns from suburban Chicago stores.  MATTHEW JAMAAL JOHNSON, of Dolton, Ill., allegedly falsely certified on federal forms that he was the actual buyer, when, in reality, Johnson purchased the guns on behalf of another individual.  ATF and CPD led the probe.

Carjacking and Other Violent Crime Prosecutions

• A federal jury convicted a central Illinois man in the murder of McHenry County Sheriff’s Deputy Jacob Keltner and the attempted murder of three other federal law enforcement officers.  Keltner, who was serving as a Special Deputy U.S. Marshal, was fatally wounded on March 7, 2019, when law enforcement attempted to execute a warrant for FLOYD E. BROWN’s arrest at a Rockford hotel.  Brown fired multiple shots at a Deputy U.S. Marshal and two Special Deputy U.S. Marshals who were attempting to take Brown into custody.  Brown then jumped out of a hotel window and fired a shot that fatally struck Special Deputy Keltner.  FBI led the murder investigation, with assistance from ATF, U.S. Marshals Service, McHenry County Sheriff’s Office, Rockford Police Department, Winnebago County Sheriff’s Office, Bloomington Police Department, Loves Park Police Department, Lincoln Police Department, Logan County Sheriff’s Office, and ISP. 
• ANGELO STANTON, of Chicago, was sentenced to 28 years in federal prison for violently robbing more than a dozen Chicago stores.  Stanton carried out takeover-style heists in which he pointed a handgun at employees and demanded cash from the register or safe.  He fired shots in five heists, wounding two store employees.  The probe was led by FBI and CPD, with assistance from ISP and the Cook County Sheriff’s Office.
• A federal judge sentenced two men to federal prison for stealing expensive watches and jewelry at gunpoint from a jewelry store in Hinsdale, Ill.  TOBIAS DIGGS, of Chicago, and JOSHUA MCCLELLAN, of Oak Lawn, Ill., took more than $400,000 in merchandise, including watches by Frederique Constant, Patek Phillipe, and Tudor.  FBI investigated, with assistance from the Hinsdale Police Department, Oak Lawn Police Department, FBI’s Cellular Analysis Survey Team (CAST), and the Felony Investigation Assistance Team (FIAT), a multi-jurisdictional law enforcement task force in the western suburbs of Chicago.
• AARON CLARK, of Chicago, was sentenced to 22 years in prison for his role in robberies that targeted cell phone stores in the suburbs of Chicago.  Clark brandished a gun during the heists and threatened to shoot store employees.  ATF and CPD led the probe, with assistance from the Calumet City Police Department, Peotone Police Department, Cook County State’s Attorney’s Office, and Will County State’s Attorney’s Office.
• OCIE BANKS, JR., of Berwyn, Ill., was charged with robbing cell phone stores in the Chicago suburbs.  Banks allegedly brandished a firearm in three robberies and one attempted robbery.  FBI investigated.
• JAMAR JARVIS, of Chicago, was sentenced to ten years in prison for carjacking a vehicle at gunpoint in the city’s Edgewater neighborhood.  FBI and CPD investigated, with assistance from the Cook County State’s Attorney’s Office.

Illegal Possession of Firearms Prosecutions

“Any felon thinking about picking up a gun in Chicago this summer should expect to be prosecuted to the fullest extent of the law and face the possibility of going to federal prison for a long time,” said U.S. Attorney Lausch.

• Three convicted felons involved in an exchange of gunfire in a store parking lot in a Chicago suburb were indicted on federal firearm violations.  The trio had previously been convicted of felony offenses and were prohibited by federal law from possessing firearms.  ATF led the investigation, with assistance from the Calumet City Police Department, U.S. Marshals Service, South Suburban Major Crimes Task Force, South Suburban Emergency Response Team, Cook County Sheriff’s Office, and Illinois State Police.
• Convicted felon CIPRIANO RIVERA, of Villa Park, Ill., was sentenced to nine years in federal prison for illegally possessing a loaded handgun near an alley in Chicago’s West Town neighborhood.  ATF and CPD conducted the investigation.
• WILLIE WARE, of Riverdale, Ill., and KEVON REED, of Chicago, were arrested after being charged with illegally possessing firearms on a CTA train car.  FBI and CPD investigated, with assistance from ATF.
• LAVOYCE BAYS, of Markham, Ill., was sentenced to more than eight years in prison for illegally possessing a firearm and ammunition, and shooting a man at a gas station after a dispute.  ATF and the Markham Police Department investigated.
• TERRANCE WEATHERSBY, of Chicago, was sentenced to more than seven years in prison for illegally possessing a loaded handgun equipped with a high-capacity magazine on a street in Chicago’s Austin neighborhood.  ATF and CPD investigated.
• A felon was sentenced to seven years in prison for illegally possessing a loaded semiautomatic handgun at a block party on the South Side of Chicago.  ANTHONY CARR, of Chicago, tossed the gun into a large outdoor tent before Chicago Police officers apprehended him.  CPD and ATF investigated.
• BERNARD HARVEY, JR., of Indianapolis, Ind., pleaded guilty to a firearm charge, admitting to illegally possessing a semi-automatic rifle at a Veterans Affairs hospital in Chicago.  FBI and CPD investigated, with assistance from the VA Police Department.
• KEYZOE WILLIAMS, of Chicago, was arrested for allegedly illegally possessing a loaded machine gun in Chicago.  Williams possessed a handgun equipped with a conversion device, also known as an “auto sear” or “Glock switch,” which turned the firearm into a machine gun capable of automatically firing more than one shot with a single trigger pull.  ATF investigated, with assistance from ISP, CPD, Willowbrook Police Department, DuPage County State’s Attorney’s Office, and DuPage Metropolitan Emergency Response and Investigations Team.

Significant Drug Trafficking Prosecutions

The U.S. Attorney’s Office targets traffickers who bring illegal drugs into Illinois from other states or countries, with a focus on organizations or individuals who use guns, violence, and threats of violence to protect and promote their illegal businesses.  The U.S. Attorney’s Office works directly with state’s attorney’s offices in Cook County and throughout the district to ensure that individuals trafficking drugs are charged with appropriate offenses in either federal or state court.

Public safety is also being threatened by unprecedented levels of opioid misuse and overdose.  Opioids are a class of highly addictive drugs that includes heroin, fentanyl, and prescription painkillers such as oxycodone and hydrocodone.  U.S. Attorney Lausch in November 2019 created an Opioid Task Force for the purpose of combatting the growing number of unlawful distributions of controlled substances fueling the nation’s opioid crisis.  This effort includes prosecuting the leaders of traditional drug trafficking organizations, as well as rogue health care providers, pharmacists, and others who contribute to the misuse of opioids.  “We are actively attacking the opioid crisis from all investigative and prosecutorial angles,” said U.S. Attorney Lausch.

• ADÁN CASARRUBIAS SALGADO, of Guerrero, Mexico, was extradited from Mexico on a federal indictment charging him with distributing heroin in the Chicago area in 2014 and laundering hundreds of thousands of dollars in proceeds.  DEA investigated.
• Ten alleged members or associates of a Chicago street gang were charged with conspiring to distribute heroin and cocaine on the West Side of Chicago.  The investigation, led by HSI and CPD, used undercover and covert surveillance operations and resulted in the seizure of multiple kilograms of suspected heroin, some of which was laced with fentanyl, and cocaine, as well as four rifles, four handguns, a MAC-10 submachine gun, a shotgun, and more than 450 rounds of ammunition.  This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation.
• A central Illinois man was sentenced to 16 years in federal prison for attempting to traffic cocaine in Chicago.  TEKOA Q. TINCH, of Bloomington, Ill., attempted to buy a kilogram of cocaine from an undercover law enforcement officer in the city’s Little Village neighborhood.  DEA, ATF, and CPD led the investigation.
• A federal grand jury charged GILBERTO ALMANZA, of North Chicago, Ill., with distributing approximately 46 kilograms of cocaine to an individual who, unbeknownst to Almanza, was cooperating with law enforcement.  Police later conducted a court-authorized search of Almanza’s residence and discovered approximately two kilograms of cocaine and a loaded handgun, the charges allege.  DEA conducted the probe.
• A federal jury convicted a suburban Chicago man of laundering illegal narcotics proceeds on behalf of drug traffickers in Mexico.  HUAZHI HAN, of North Riverside, Ill., schemed with an individual in Mexico to facilitate the receipt of more than $1 million in narcotics proceeds in the United States.  DEA investigated, with assistance from IRS-CI, CPD, HSI, and the U.S. Department of Treasury, Financial Crimes Enforcement Network.
• A man was arrested after law enforcement seized fentanyl and a “pill press” from his suburban Chicago residence.  TROY CLARK, of Calumet City, Ill., also allegedly possessed other equipment that can be used to manufacture counterfeit pills, including a funnel, metal press, and dye pieces.  DEA, USPIS, and CPD led the probe, with assistance from the Calumet City Police Department.
• An inmate in a state prison in Arizona was charged with brokering the sale of fentanyl and methamphetamine in Illinois.  MANUEL GARCIA allegedly coordinated with a buyer outside of the prison to purchase methamphetamine and fentanyl for delivery to the Chicago area.  DEA investigated.

Community Partnerships

The PSN program continues to invest resources in violence-prevention initiatives.

The PSN Chicago Task Force, which includes members from the U.S. Attorney’s Office, CPD, ATF, IDOC, Cook County State’s Attorney’s Office, and academic researchers, is designed to address gun violence in certain neighborhoods in Chicago with the highest violent crime rates through aggressive prosecution of violent offenders, using all available federal statutes.  The task force, which in 2018 expanded to include the city of Rockford, establishes a working relationship between the U.S. Attorney’s Office, CPD, Cook County State’s Attorney’s Office, RPD, and Winnebago County State’s Attorney’s Office. 

The PSN Task Force dedicates federal grant funds to support crime prevention programs that are aligned with law enforcement’s strategy to address gun violence.  Currently, PSN grant funds support Camp Hope, a crime prevention program in Rockford for at-risk juveniles who have experienced or witnessed domestic violence; Choose to Change, a program created by Children’s Home & Aid and Youth Advocate Programs in Chicago to engage youth who are heavily impacted by violence and trauma by connecting them with intensive advocate and wraparound support services and trauma-informed therapy; and Readi Chicago’s Reentry Program, a pilot program in Chicago jointly developed by Heartland Alliance and IDOC to provide both pre-release and post-release services for those returning home from prison to reduce gun violence and recidivism among returning citizens.

Members of the U.S. Attorney’s Office have also participated in offender notification meetings and youth outreach forums.  Even during the current COVID-19 pandemic, these meetings and forums are still being held, including in a virtual environment, to maintain the outreach to former offenders.  Offender notification meetings provide an opportunity for individuals who have been convicted of a state or federal offense to make an informed choice not to engage in further criminal activity.  Researchers at Arizona State University found that the forums in Chicago have a positive influence on the offenders’ perception of police and help create an understanding that criminal activity results in a higher risk to return to prison.  Researchers at Yale University found that ex-offenders who attend an offender notification meeting in Chicago are 30% less likely to commit a new offense than those who did not attend a meeting.  The quarterly youth forums assist teenagers to identify a path beyond criminal activity.  The youth forums are conducted in partnership with CPD, the Cook County Juvenile Temporary Detention Center, and local social service agencies.

CHICAGO — An alleged drug trafficker charged with distributing heroin in the Chicago area was arraigned today in federal court in Chicago after his extradition from Mexico.

ADÁN CASARRUBIAS SALGADO, also known as “El Tomate,” “Tomatito,” “Star,” and “Silver,” was charged in an indictment unsealed today in the Northern District of Illinois with conspiracy, drug trafficking, and money laundering offenses.  The indictment alleges that Casarrubias Salgado distributed multiple kilograms of heroin in the Chicago area in 2014 and transferred hundreds of thousands of dollars in proceeds back to Mexico.

Casarrubias Salgado, 53, of Guerrero, Mexico, was extradited to the United States on Thursday and remains detained in federal custody.  He pleaded not guilty during his arraignment this afternoon before U.S. District Judge Matthew F. Kennelly in Chicago.  A status hearing was set for June 30, 2022, at 1:30 p.m.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration.  Valuable assistance was provided by the U.S. Marshals Service, the DEA Mexico Country Office, and the Department of Justice’s Office of International Affairs.  The government is represented by Assistant U.S. Attorney James P. Durkin.

This indictment is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, and other 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 criminal networks.

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

The United States Attorney’s Office for the Northern District of Illinois today announced that, as part of a continued effort to enforce the Americans with Disabilities Act (ADA), it has reached a settlement with Faux Ever Beauty in Countryside, Ill., to resolve claims that the salon discriminated against a potential client with HIV.

The U.S. Attorney’s Office found that Faux Ever Beauty discriminated against a person with HIV when the salon’s owner unlawfully refused to perform an eyebrow microblading procedure due to the person’s HIV status.  The investigation revealed that Faux Ever Beauty’s actions were not consistent with current medical knowledge.  Moreover, an individual’s HIV status is not a legitimate or lawful reason to refuse to treat a patient seeking services.

Under the terms of the settlement agreement and consistent with penalties available under the ADA, Faux Ever Beauty paid $4,500 to the victim of discrimination.  In addition, the owner of Faux Ever Beauty must attend training on the requirements of the ADA, implement an anti-discrimination policy, and report to the U.S. Attorney’s Office any time a person is not accepted as a patient due to a medical condition – with a written justification for the decision.  The U.S. Attorney’s Office waived the civil fine in recognition of Faux Ever Beauty’s cooperation during the investigation. 

“Salons and other businesses should understand that individuals seeking physical services should not be excluded based on HIV,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois.  “This settlement should send a clear message that individuals living with HIV are entitled to the same services as everyone else.”  

Title III of the ADA prohibits public accommodations, such as salons, medical offices, and tattoo parlors, from excluding people with disabilities, including people with HIV, from enjoying goods, services, privileges, facilities, and advantages provided.  For more information regarding the Department of Justice’s efforts to combat discrimination, please visit the official ADA government website.  To learn more about the obligations of public accommodations under federal disability rights statutes, call the Department of Justice’s toll-free ADA information line at 800-514-0301, 800-514-0383 (TTY).

Assistant U.S. Attorneys Patrick Johnson and Valerie R. Raedy represented the government during the Faux Ever Beauty investigation and settlement.

CHICAGO — Former Illinois State Rep. LUIS ARROYO has been sentenced to nearly five years in federal prison for participating in a bribery scheme involving a fellow state lawmaker and Arroyo’s private lobbying client, a sweepstakes gaming company.

Arroyo, 67, of Chicago, pleaded guilty last year to a federal wire fraud charge.  U.S. District Judge Steven C. Seeger imposed a 57-month prison sentence Wednesday 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; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division.  The government was represented by Assistant U.S. Attorney James P. Durkin.

Arroyo represented the 3rd District in the Illinois House of Representatives from 2006 to 2019.  He has also managed Spartacus 3 LLC, a private lobbying firm in Chicago.

In 2018 and 2019, Arroyo accepted thousands of dollars in bribes from the gaming company, Collage LLC, in the form of checks made payable to Spartacus.  In exchange for those bribes, Arroyo promoted legislation in the Illinois House of Representatives related to the sweepstakes industry and advised other state lawmakers to support the legislation. 

In August 2019 Arroyo offered to have payments made to an Illinois state senator in return for the senator’s support of sweepstakes-related legislation.  On Aug. 22, 2019, Arroyo met with the senator at a restaurant in Skokie, Ill., and provided him with a $2,500 check from Collage as an initial bribe payment, with the expectation that the senator would receive similar payments for 12 months.  Arroyo told the senator, “This is the jackpot,” and then wrote the name of the senator’s nominee on the company’s check.  The nominee’s name was used for the purpose of concealing the illicit payment.

CHICAGO — A man has been sentenced to a year in federal prison for throwing an incendiary device at police officers in Naperville, Ill., during a period of civil unrest in June 2020.

CHRISTIAN REA, 21, of Aurora, Ill., pleaded guilty earlier last year to a federal charge of obstructing law enforcement during the commission of civil disorder.  U.S. District Judge Thomas M. Durkin on Tuesday imposed the one-year prison sentence and ordered Rea to pay $13,585.66 in restitution to the city of Naperville.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the Naperville Police Department and Aurora Police Department. 

“By intentionally throwing the firework at police officers, the defendant demonstrated a lack of respect for the law,” Assistant U.S. Attorney Barry Jonas argued in the government’s sentencing memorandum.  “His actions could have sparked the crowd to engage in the very unlawful conduct the officers were there to prevent.”

The incident occurred in downtown Naperville on the evening of June 1, 2020.  The officers responded to civil disorder in the business district involving dozens of individuals causing damage to property. 

Rea admitted in a plea agreement that he threw a lit explosive or incendiary device in the proximity of a line of uniformed officers who were standing next to a police vehicle.  As a result of the explosion, multiple officers suffered injuries, including repeated headaches, ringing in the ears, and vision loss.

CHICAGO — An information technology specialist has been indicted on a federal criminal charge for allegedly hacking into the server of a suburban Chicago health care company where he formerly worked as a contractor.

AARON LOCKNER illegally accessed the server of the health care company, which operated a clinic in Oak Lawn, Ill., on April 16, 2018, according to an indictment returned Tuesday in U.S. District Court in Chicago.  The cyber intrusion impaired medical examinations, treatment, and care of multiple individuals, the indictment states.  Lockner had previously performed information security and technology work for the health care company and had access to its computer network, the indictment alleges.  Two months before the cyber attack, Lockner sought and was denied an employment position with the health care company, the indictment states.

The indictment charges Lockner, 35, of Downers Grove, Ill., with one count of intentionally causing damage to a protected computer.  Arraignment in federal court in Chicago has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr, Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorney A.J. Dixon.

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

The charge in the indictment is punishable by up to ten years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — The Chief of Police in the village of Summit, Ill., corruptly accepted money from a local businessman intending to be influenced and rewarded in connection with the transfer of a liquor license to another individual, according to a federal indictment.

The indictment returned Tuesday in U.S. District Court in Chicago alleges that Chief JOHN KOSMOWSKI conspired with a Summit building inspector to accept more than $5,000 from the businessman in 2017.  The pair accepted the money intending to be influenced and rewarded in connection with the transfer of a liquor license to another person, the indictment states.  Kosmowski allegedly received a cash payment from the businessman on March 23, 2017, and then gave the building inspector a portion of it.

The charges allege that Kosmowski met with the building inspector earlier this year and informed him of the federal investigation into the payment.  During the meeting, Kosmowski allegedly sought to corruptly persuade the building inspector to mischaracterize the purpose of the payment from Kosmowski to the inspector by falsely suggesting that it was a loan, the indictment states.

The indictment charges Kosmowski, 54, of Lockport, Ill., with one count of bribery conspiracy, one count of bribery, and one count of obstruction of justice.  The building inspector, WILLIAM MUNDY, 59, of Summit, Ill., is charged with one count of bribery conspiracy and one count of filing a false tax return.  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; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorneys Tiffany Ardam and Jimmy L. Arce.

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.

CHICAGO — A Chicago man has been charged in federal court with trafficking individually manufactured “ghost guns” in the city this year.

DEVON DOW, 22, is charged with willfully dealing firearms without a license.  He was arrested Tuesday afternoon.  A detention hearing is set for Friday at 1:00 p.m. before U.S. Magistrate Judge Heather K. McShain.

The charge and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations; and David Brown, Superintendent of the Chicago Police Department.  The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives provided valuable assistance.  The government is represented by Assistant U.S. Attorney Thomas P. Peabody.

According to a criminal complaint filed in U.S. District Court in Chicago, Dow sold seven “ghost guns” on five different occasions in Chicago this year.  The transactions allegedly occurred in a parking lot in the Grand Crossing neighborhood on the city’s South Side.  The firearms were considered “ghost guns” because they contained no identifiable serial number and had been manufactured from parts collected from various sources.  Unbeknownst to Dow, the individual to whom he sold the guns was an undercover law enforcement officer, the complaint states.

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

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

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

CHICAGO — A member of a violent Chicago street gang has been sentenced to 35 years in federal prison for engaging in a pattern of racketeering activity that included the murder of a rival gang member.

LUIS CONTRERAS, 42, of Chicago, pleaded guilty earlier this year to a federal charge of conspiracy to commit racketeering activity.  U.S. District Judge Matthew F. Kennelly imposed the prison sentence Thursday 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; Kristen De Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Angie Salazar, Special Agent-in-Charge of Homeland Security Investigations in Chicago; and David Brown, Superintendent of the Chicago Police Department.  The government was represented by Assistant U.S. Attorney Kavitha Babu.

Contreras admitted in a plea agreement that he was a member of the Latin Saints street gang, a criminal organization whose members and associates engaged in drug dealing and violence, including murder and assault, to acquire and preserve the gang’s territory in the Back of the Yards neighborhood on Chicago’s South Side.  Contreras further admitted that on Feb. 18, 2018, he and other members of the Latin Saints fired multiple shots at rival gang members who were sitting in a vehicle in the 7700 block of South Kilbourn Avenue in Chicago’s Scottsdale neighborhood.  The shots killed Andre Franzell, 23, and wounded another individual.  Contreras admitted that the murder of Franzell was committed to further the purposes of the Latin Saints.

When Contreras was arrested at his home by federal law enforcement in October 2018, he was found in possession of two rifles and a handgun.