Northern District of Illinois

ROCKFORD — A federal grand jury in Rockford has indicted a Loves Park man on drug and firearm offenses.

ORENTHO HURD, 27, is charged with possession with intent to distribute cocaine, possession of a firearm by a previously convicted felon, possession of a machine gun, and possession of a firearm in furtherance of a drug trafficking crime.  According to the indictment, Hurd illegally possessed the cocaine and machine gun in Loves Park on Aug. 26, 2021.  Arraignment in U.S. District Court in Rockford has not yet been scheduled. 

The indictment 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, and Explosives.  The Rockford Police Department provided valuable assistance in the investigation.  The government is represented by Assistant U.S. Attorneys Michael Beckman and Robert Ladd.

The cocaine charge carries a maximum sentence of 20 years in federal prison, while the machine gun and felon-related charges are each punishable by up to ten years.  Possession of a firearm in furtherance of a drug trafficking crime carries a mandatory minimum sentence of five years.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

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

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 —A Chicago technology executive has been sentenced to a year in federal prison for illegally exporting computer equipment from the United States to a nuclear research agency of the Pakistani government.

OBAIDULLAH SYED, 67, of Northbrook, Ill., pleaded guilty last year to conspiring to export goods from the U.S. without a license from the Department of Commerce and to submit false export information.  U.S. District Judge Mary M. Rowland on Tuesday sentenced Syed to a year and a day in federal prison.  Prior to sentencing, Syed forfeited $247,000 of criminally derived cash to the U.S. government.

The sentence was 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; Aaron Tambrini, Special Agent-in-Charge of the U.S. Department of Commerce, Bureau of Industry and Security-Office of Export Enforcement, Chicago Field Office; and Cynthia A. Bruce, Special Agent-in-Charge of the U.S. Department of Defense, Defense Criminal Investigative Service, Southeast Field Office.  The government was represented by Assistant U.S. Attorney Peter M. Flanagan.

Syed owned Pakistan-based BUSINESS SYSTEM INTERNATIONAL PVT. LTD., and Chicago-based BSI USA.  The companies provided high-performance computing platforms, servers, and software application solutions.  Syed admitted in a plea agreement that from 2006 to 2015 he conspired with his company’s employees in Pakistan to violate the International Emergency Economic Powers Act by exporting computer equipment from the U.S. to the Pakistan Atomic Energy Commission without obtaining the required authorization from the U.S. Department of Commerce.  The PAEC is a Pakistani government agency designated by the U.S. government as an entity which may pose an unusual or extraordinary threat to the national security, foreign policy, or economy of the United States.

Syed further admitted that he and the other conspirators falsely represented to U.S.-based computer manufacturers that the illegal shipments were intended for Pakistan-based universities or Syed’s businesses, when, in fact, the conspirators knew that the true end user of each shipment was either the PAEC or a research institute that trained the agency’s engineers and scientists.  In so doing, Syed and his company caused the U.S.-based computer manufacturers to submit to the U.S. government shipping documents that listed false end-users for the U.S.-origin goods, thereby undermining the U.S. government’s ability to stop the illegal shipments.

Business System International Pvt. Ltd. was charged in the conspiracy as a corporate defendant.  The company has yet to respond to the charges.

CHICAGO — A suburban Chicago man was sentenced today to more than three years in federal prison for sending a series of threatening phone calls to various members of the United States Congress and threatening to commit violence at the 2021 presidential inauguration in Washington, D.C.

U.S. District Judge Ronald A. Guzman sentenced LOUIS CAPRIOTTI, 47, of Chicago Heights, Ill., to 37 months in prison.  Capriotti pleaded guilty last fall to a federal charge of transmitting a threat in interstate commerce.  He has been in federal custody since his arrest on Jan. 12, 2021, and will receive credit for time already served.

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. Secret Service and U.S. Capitol Police participated in the investigation.  Assistant U.S. Attorneys James P. Durkin and William Dunne represented the government.

In a Dec. 29, 2020, voicemail for a U.S. House member, Capriotti stated that if certain individuals “think that Joe Biden is going to put his hand on the Bible and walk into that [expletive] White House on January 20th, they’re sadly [expletive] mistaken.”  Capriotti further stated in the voicemail, “We will surround the [expletive] White House and we will kill any [expletive] Democrat that steps on the [expletive] lawn.”

Capriotti in November and December 2020 left other threatening messages on the voicemail systems of other members of Congress, during which he falsely stated that he was an active U.S. Marine and referred to certain members of Congress as “terrorists.”

“Capriotti’s crime was a serious offense,” Assistant U.S. Attorney James P. Durkin argued in the government’s sentencing memorandum.  “Such threats must be taken seriously because they have real implications for the victims receiving them.”

CHICAGO — A federal judge has sentenced a Chicago man to 30 years in federal prison for forcing women and children to engage in commercial sex acts in the city and suburbs.

From 2012 to 2014, CHARLES FEARS and a co-defendant, SAMUEL NICHOLS, operated a sex trafficking business through which they used force, fraud, and coercion to cause multiple women and children to engage in commercial sex acts and turn over the proceeds to Fears and Nichols.  The men supplied the victims, some of whom were as young as 13 years old, with drugs and alcohol while coercing them to participate in the commercial sex acts.  Fears and Nichols often hit, slapped, and punched the victims who worked for them, including incidents in which Fears put a victim’s head into a toilet after she broke his rules.  The pair openly flaunted their roles as traffickers, flashing money in social media posts and using the trafficking proceeds to fund a Chicago-area rap group that posted music videos online.

Fears, 28, of Chicago, pleaded guilty in 2018 to federal conspiracy and sex trafficking charges.  U.S. District Judge Virginia M. Kendall on Friday imposed the 30-year prison term for Fears and ordered that it be followed by court supervision for life.  Judge Kendall also ordered Fears to pay more than $1.6 million in restitution to the victims.

Nichols, 37, of Chicago, was sentenced in 2019 by Judge Kendall to life in prison.

Fears’s 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 Carol Stream, Ill., Police Department, Downers Grove, Ill., Police Department, and DuPage County Sheriff's Office.

“Fears and Nichols controlled their victims physically and psychologically,” Assistant U.S. Attorneys Sarah Streicker, Michelle Petersen, and Elizabeth Pozolo argued in the government’s sentencing memorandum.  “It is nearly impossible to comprehend the trauma Fears inflicted on his victims.”

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/home or by calling 1-800-843-5678.  The service is available 24 hours a day, seven days a week.

CHICAGO — A joint federal and local drug trafficking investigation has resulted in federal charges against ten alleged members or associates of a Chicago street gang for conspiring to distribute heroin and cocaine.

During the multi-year probe, law enforcement shut down three open-air drug markets in the West Garfield Park neighborhood on the West Side of Chicago.  The investigation, led by Homeland Security Investigations and the Chicago Police Department, utilized extensive undercover and covert surveillance operations and resulted in the seizures 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.  A criminal complaint filed in U.S. District Court in Chicago alleges that the ten federal defendants are members or associates of the Four Corner Hustlers street gang. 

The ten federal defendants are in law enforcement custody and have made initial appearances in U.S. District Court in Chicago.  In addition to the federal defendants, more than 20 other individuals were charged with state drug offenses in the Circuit Court of Cook County.

The federal charges 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 HSI; and David Brown, Superintendent of CPD.  Valuable assistance was provided by the IRS Criminal Investigation Division in Chicago.  Assistant U.S. Attorneys Shawn McCarthy, David Green, and Kristin Pinkston represent the government.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation.  OCDETF identifies, disrupts, and dismantles criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.

“Fentanyl, heroin, and cocaine are extremely potent drugs that have wreaked havoc in too many of our communities,” said U.S. Attorney Lausch.  “We will continue to focus our efforts on individuals and groups who traffic dangerous drugs and prosecute those offenders in federal court.”

“Our goal is for law abiding residents to enjoy safety and peace in their communities, and holding these criminals accountable for their actions is a major step toward achieving that goal,” said HSI SAC Salazar.  “We will continue to put pressure on these dangerous gangs by investigating and prosecuting their members, just as we are doing in this case.”

Charged with federal drug conspiracy are NATHANIEL EVANS, 38, of Aurora, Ill., JARELLE JONES, 24, of Forest Park, Ill., MARQUIS JONES, 29, of Chicago, DEVONTAY LOGAN, 27, of Chicago, JOSEPH WILLIAMS, 31, of Chicago, DORNELL WILLIAMS, 34, of Chicago, TEREMIUS WEBB, 25, of Chicago, ANTONIO FLETCHER, 40, of Chicago, KYLE LINTON, 25, of Chicago, and MAURICE BELL, 40, of Chicago.

From February 2021 to April 2022, law enforcement officers made numerous undercover purchases of narcotics from various members of the organization.  The drugs at the open-air markets were typically packaged in small baggies and sold for $10 each – with discounts for higher quantity sales, the complaint states.

According to the federal charges, Evans directed the drug trafficking operation and supervised the three open-air markets, which were located in the 3900 block of West Jackson Boulevard, 3900 block of West Van Buren Street, and 4000 block of West Maypole Avenue.  Jarelle Jones, Marquis Jones, Joseph Williams, and Dornell Williams allegedly worked as “shift managers,” overseeing drug sales at the illegal markets at various times of the day.  The charges allege that Logan picked up narcotics from suppliers, delivered them to the Jackson Boulevard location, and collected illicit proceeds after the sales.  Webb, Fletcher, and Linton allegedly worked as street-level dealers, while the charges accuse Bell of obtaining narcotics for sales at the Maypole Avenue location. 

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 drug conspiracy charge is punishable by up to life in federal prison.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

Earlier this week, Deputy Attorney General (DAG) Lisa O. Monaco traveled to Chicago for a series of engagements that focused on the integrity of the Department of Justice as well as the department’s ongoing partnerships with law enforcement and community leaders to promote public safety. 

On Monday, DAG Monaco returned to her alma mater, the University of Chicago Law School where she met with a group of law students to talk about her career path and the role the Department of Justice serves in maintaining the rule of law. She also met separately with a group of students from the Institute of Politics (IOP) to highlight the importance of public service.

That evening, the DAG participated in the IOP’s Speaker Series, for a discussion on how the Department of Justice “enforces the rule of law in a highly polarized world” and how the department is working to defend our democracy, including with respect to the January 6th investigation. The DAG fielded a range of questions about how the department strikes a balance between transparency and promoting public confidence while simultaneously protecting the integrity of the department’s investigations, consistent with its norms and traditions. A full link of the DAG’s session is available here: Justice in the Spotlight: A talk with Lisa Monaco, Deputy Attorney General of the United States. 

On Tuesday morning, the DAG participated in a conversation with University of Chicago President Paul Alivisatos to launch the University’s new Community Safety Leadership Academies, which will help to train the next generation of police and community violence intervention leaders from across America. In her conversation, the DAG emphasized the need to prioritize investments in both policing best practices and community violence intervention in order to keep our communities safe.  A full link of the DAG’s session is available here: University of Chicago Community Safety Leadership Academies. 

Afterwards, the DAG visited the headquarters of the Chicago Police Department (CPD), where she toured the Crime Prevention & Information Center (CPIC), to see how CPD is using cutting-edge technology — in coordination with federal law enforcement partners — to fight crime in Chicago. The DAG also met with CPD Superintendent David O. Brown and his First Deputy Superintendent Eric Carter to discuss trends in violent crime as well as the coordinated efforts between state, local and federal law enforcement to protect Chicago communities.

From there, the DAG went to the U.S. Attorney’s Office for the Northern District of Illinois (NDIL), where she met with U.S. Attorney John Lausch and his leadership team, and where she received a series of case briefings from NDIL attorneys. The DAG also convened a roundtable with state, local and federal law enforcement leaders where they discussed a variety of public safety issues and how to best partner together to address them.

The DAG’s trip concluded with an all-hands meeting at the U.S. Attorney’s Office, where she had a chance to hear from and talk with the dedicated men and women of the U.S. Attorney’s Office for the Northern District of Illinois.

CHICAGO — The former controller of a Chicago-based insurance company has been sentenced to four years in federal prison for embezzling nearly $6 million in company funds.

From October 2018 to June 2020, KEVIN J. MIX authorized approximately 42 wire transfers totaling more than $5.8 million from Insureon to his personal bank accounts and the accounts of shell companies that he created.  At the time, Mix was Insureon’s controller and responsible for managing the company’s accounting operations.  Mix attempted to conceal the fraudulent transfers by making false entries in the company’s records, creating fake emails, and making false statements to company representatives and the company’s bank. 

Mix used the stolen money to purchase, among other things, several real estate parcels in the Chicago area and Ohio, Mercedes-Benz and Audi automobiles, multiple diamonds and gold bars, and membership for a private charter jet service. 

Mix, 43, of Chicago, pleaded guilty last year to a federal wire fraud charge.  In addition to the prison term, U.S. District Judge Joan Humphrey Lefkow on Tuesday ordered Mix to pay $5,845,427 in restitution.

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 government was represented by Assistant U.S. Attorney Matthew Schneider.

CHICAGO — A man was sentenced today to more than a year in federal prison for inciting rioting involving multiple incidents of property damage and looting in Chicago in the summer of 2020.

JAMES MASSEY, 23, of Chicago, pleaded guilty earlier this year to a federal charge of inciting and participating in a riot.  U.S. District Judge Matthew F. Kennelly imposed the 15-month prison sentence and ordered Massey to pay $185,148 in restitution.

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.  The government is represented by Assistant U.S. Attorney Aaron R. Bond.

“Anyone involved in destructive behavior in Chicago – such as rioting – should expect to be held accountable,” said U.S. Attorney Lausch.  “Our office will continue to work with the FBI, CPD, and our other law enforcement partners to prosecute rioters and others engaged in violent crime.”

“Inciting riots and other unlawful activity are both irresponsible and reckless, and the FBI will continue to work tirelessly with police and prosecutorial partners to ensure public safety is not compromised,” said FBI SAC Buie.

Massey admitted in a plea agreement that on Aug. 9, 2020, he posted multiple videos and messages on Facebook calling for people to travel to downtown Chicago to engage in property damage and looting.  In one of the videos, Massey stated, “Y’all ready? I sent everybody the location to link up at bro.  I trying to get something.  I need to hit a couple stores.”  In another video, Massey stated, “Fitting to go [expletive] them up.  I ain’t missing out.  I am ready to steal.”

Massey admitted in the plea agreement that he and at least three other individuals damaged four stores in the downtown and Near North Side areas of Chicago.

CHICAGO — Two siblings who operated a suburban Chicago manufacturing company have pleaded guilty in federal court to knowingly hiring undocumented workers.

KENNETH KUZELKA, 64, of Chicago, pleaded guilty Thursday to conspiracy to commit alien harboring for purposes of financial advantage, and his sister, KARI KUZELKA, 59, of Elgin, Ill., pleaded guilty to engaging in a pattern and practice of hiring unauthorized aliens.

The Kuzelkas admitted in plea agreements that in 2017 they schemed with the executive vice president of a Chicago staffing company to knowingly re-hire approximately 20 undocumented workers at KSO MetalFab Inc., a sheet metal fabrication company in Streamwood, Ill.  The undocumented workers were previously employed by the company but had been terminated after agents from Homeland Security Investigations (HSI) served the company with notice of suspected violations regarding the workers’ employment-verification documents.  The staffing agency facilitated the undocumented workers’ return to the company.

The conspiracy charge against Kenneth Kuzelka is punishable by up to ten years in federal prison, while Kari Kuzelka faces up to six months.  U.S. District Judge Sara L. Ellis set sentencings for Aug. 2, 2022.

The Kuzelkas’ plea agreements were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Angie Salazar, Special Agent-in-Charge of the HSI Chicago office.  The U.S. Department of Labor and U.S. Social Security Administration provided valuable assistance.  The government is represented by Assistant U.S. Attorney Ashley A. Chung.

The staffing agency executive vice president – SERGIO BADANI of St. Charles, Ill. – previously pleaded guilty to his role in the scheme and was sentenced to two years of probation and fined $15,000.  A fourth defendant – KEITH KUZELKA of Elgin – also pleaded guilty and was sentenced to a year of probation.

CHICAGO — A former college dean has been sentenced to a year in federal prison for embezzling more than $650,000 from a national student organization working to improve minority representation in the pharmacy industry.

While serving as the volunteer Executive Director of the student association, CARMITA COLEMAN withdrew cash and issued checks from the group’s bank accounts for her personal benefit.  Coleman used debit cards linked to the organization’s accounts to make various personal purchases, including for trips to the Caribbean.  She attempted to cover up the fraud by submitting false and misleading reports that concealed the withdrawals.  When a new individual was appointed to replace Coleman as Executive Director, Coleman knowingly delayed turning over access to the organization’s bank accounts so that she could continue spending the money for her personal benefit.

During the fraud scheme, which lasted from 2011 to 2016, Coleman separately worked as a dean and professor at various colleges of pharmacy.

Coleman, 50, of Frankfort, Ill., pleaded guilty earlier this year to a federal wire fraud charge.  In addition to the year-and-a-day prison sentence, U.S. District Judge Matthew F. Kennelly on Wednesday ordered Coleman to pay the remaining restitution of $490,528.

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. 

“Coleman’s offense is particularly egregious because she was supposed to be the adult in the room — the faculty member entrusted with overseeing the student organization’s accounts – but instead used the organization’s funds as her own piggy bank,” Assistant U.S. Attorney L. Heidi Manschreck argued in the government’s sentencing memorandum.  “As a result of her scheme, the organization was deprived of funds that were supposed to support its laudable mission, and not to line Coleman’s pockets.”

CHICAGO — The former mayor of Crestwood, Ill., was sentenced today to a year in federal prison for improperly soliciting and receiving benefits from an individual with a financial interest in a red-light camera company that provided services to the Chicago suburb.

LOUIS PRESTA, 71, of Crestwood, pleaded guilty last year to one count of using a facility in interstate commerce in aid of bribery and official misconduct, and one count of filing a false income tax return.  U.S. District Judge Thomas M. Durkin 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 Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.

“Public corruption is an extremely serious offense that erodes the public’s trust in all levels of government,” Assistant U.S. Attorney James P. Durkin argued in the government’s sentencing memorandum.  “It tarnishes by association the honest public servants who view their jobs through the lens of what is in the public interest, not their own self-interest.”

According to Presta’s plea agreement with the government, the red-light camera company provided camera services to Crestwood that enabled the municipality to issue tickets to motorists for certain traffic violations.  While the company was attempting to provide additional such services to Crestwood, then-Mayor Presta asked for and accepted benefits from the individual with a financial interest in the company.  Presta told the individual that the percentage of red-light traffic violations that Presta approved would remain high or increase – in exchange for a cash payment to Presta from the individual, the plea agreement states. 

The plea agreement describes a Feb. 27, 2018, phone call in which Presta updated the individual on the higher percentage of red-light traffic violations that Crestwood approved the previous week.  During the call, Presta stated, “We’re starting to get the numbers again… you got a new sheriff in town.”  Shortly after that call, Presta on March 7, 2018, received a $5,000 cash bribe from the individual.  When subsequently questioned by federal law enforcement about his receipt of the $5,000 bribe payment, Presta falsely stated that he neither asked for nor received the $5,000 bribe.

In addition to the bribery scheme, Presta admitted in the plea agreement that he willfully filed a false personal income tax return for the calendar year 2015.

CHICAGO — Two brothers from Michigan were among three men indicted on federal fraud charges for allegedly scheming to create and sell false works of art and memorabilia.

An indictment unsealed today in U.S. District Court in Chicago accuses DONALD HENKEL of altering and applying false autographs or signatures to paintings and memorabilia, including sports, Hollywood, and music collectibles, to make the items appear genuine or more valuable to potential buyers, including art galleries, auction houses, and individuals.  The indictment alleges that Donald Henkel falsely added signatures of artists such as Ralston Crawford and George Ault to paintings that he knew were not created by those artists, and then schemed with his brother, MARK HENKEL, and others to fraudulently present the works as genuine.  Donald Henkel and bogus “straw sellers” recruited by Mark Henkel allegedly provided a false provenance, or history, for numerous items, including a painting by Gertrude Abercrombie and baseballs or bats purportedly signed by Lou Gehrig, Babe Ruth, Honus Wagner, and Cy Young, as a means to falsely portray the items as genuine to potential buyers.  One of the alleged straw sellers – RAYMOND PAPARELLA – schemed to conceal the Henkels’ involvement with the items in an effort to pass them off as genuine, the indictment states.

The alleged fraud scheme began in 2005 and continued until 2020.  Many of the forged items were sold for more than $100,000 based on the false histories provided by the Henkels or the straw sellers, the indictment states.

The indictment charges mail fraud or wire fraud against Donald Henkel, 61, of Cedar, Mich., Mark Henkel, 66, of Ann Arbor, Mich., and Paparella, 59, of Boca Raton, Fla.  Mark Henkel faces an additional charge of witness tampering for allegedly corruptly persuading a co-schemer to make a false statement to law enforcement.

The three defendants pleaded not guilty today during arraignments in federal court in Chicago.

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 the U.S. Attorney’s Office for the Western District of Michigan, and FBI Field Offices in Detroit, Mich., and Miami, Fla.  The government is represented by Assistant U.S. Attorney Ashley A. Chung.

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 a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A former paralegal for a Chicago law firm has been indicted for allegedly embezzling more than $600,000 from bankruptcy estate accounts.

BECKY LOUISE SUTTON fraudulently embezzled the funds from 2009 to 2018 while working on bankruptcy matters at the law firm, according to an indictment returned Wednesday in U.S. District in Chicago.  Sutton orchestrated the fraudulent transfers of bankruptcy funds from fiduciary bank accounts intended for creditors to accounts Sutton controlled, including her personal bank account, credit card account, student loan account, and mortgage account, the indictment states.  In one instance, Sutton used a company with a name similar to a true creditor to disguise her fraudulent diversion of the funds, the indictment states. 

The indictment charges Sutton, 66, of Austin, Texas, and formerly of Park Forest, Ill., with three counts of wire fraud and three counts of embezzlement from the estate of a debtor.  The indictment seeks forfeiture from Sutton of $611,263 in alleged criminally derived proceeds.  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.  Valuable assistance was provided by the U.S. Trustee Program.  The government is represented by Assistant U.S. Attorney Kartik K. Raman.

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 wire fraud count is punishable by up to 20 years in federal prison, while each embezzlement count carries a maximum sentence of five years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — Three men involved in an exchange of gunfire in a store parking lot in a Chicago suburb have been indicted on federal firearm violations.

The indictment in U.S. District Court in Chicago accuses ANTHONY HAYES and JAMARI WILLIAMS of each firing multiple rounds at REGINALD DANIELS in the store parking lot in Calumet City, Ill., on Aug. 9, 2021.  Daniels and another individual with him were wounded.  Daniels drew a gun from his waistband and fired multiple rounds at Hayes and Williams as they ran away, the indictment states.  One of Daniels’s shots struck an individual who happened to be driving near the store and was not involved in the exchange of gunfire, the indictment states.

Three days after the shootings, law enforcement conducted a court-authorized search of Hayes’s residence and discovered eight firearms, including the handguns used by Hayes and Williams in the shooting of Daniels and the individual with him, the indictment states.

The indictment charges Hayes, 24, of Dolton, Ill., Williams, 23, of Chicago, and Daniels, 40, of Chicago, with illegal possession of a firearm as previously convicted felons.  Hayes also faces additional counts of illegal possession of machine guns.  All three defendants are in law enforcement custody.  Daniels is scheduled to appear for a detention hearing today at 3:00 p.m. before U.S. Magistrate Judge Gabriel A. Fuentes.  Federal court appearances for Hayes and Williams have not yet been scheduled.

The indictment 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 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.  The government is represented by Assistant U.S. Attorney Paul Mower.

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 central Illinois man has been sentenced to 16 years in federal prison for attempting to traffic cocaine in Chicago.

A jury last year convicted TEKOA Q. TINCH, 34, of Bloomington, Ill., of attempting to possess cocaine with the intent to distribute.  Tinch in May 2018 attempted to buy a kilogram of cocaine from an individual in a grocery store parking lot in the Little Village neighborhood of Chicago.  Unbeknownst to Tinch, the cocaine was fake and the seller was an undercover law enforcement officer.

U.S. District Judge Andrea R. Wood imposed the sentence Tuesday after a hearing in federal court in Chicago.  Judge Wood also found that Tinch directed an individual to purchase two firearms for Tinch in April 2018, and that those firearms were in the vehicle when Tinch drove to the meeting with the undercover officer.

The sentence 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 Field Division of the U.S. Drug Enforcement Administration; 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.

“For many years the City of Chicago and other areas in the Northern District of Illinois have been plagued by drug trafficking, along with the violent crime that often accompanies drug trafficking,” Assistant U.S. Attorney John D. Mitchell argued in the government’s sentencing memorandum.  “While drug trafficking is always a serious crime, the circumstances of defendant’s offense of conviction are particularly serious.”

ROCKFORD — An Ogle County man was sentenced today to nearly four years in federal prison for robbing a bank in Rochelle, Ill.

RODNEY BEESE, 64, of Rochelle, Ill., admitted in a plea agreement that on July 6, 2021, he entered Central Bank Illinois, 340 May Mart Dr., approached the teller counter, and presented a note demanding $20’s, $50’s, and $100’s from the drawer.  Beese received $100 in cash from the teller and then left the bank.

U.S. District Judge Iain D. Johnston imposed a 46-month prison sentence after a hearing in federal court in Rockford.

The sentencing 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 was represented by Assistant U.S. Attorney Robert S. Ladd.

ROCKFORD — A Loves Park woman was sentenced today to three years in federal prison for fraudulently obtaining more than $1 million from her employer.

In addition to the prison term, U.S. District Judge Iain D. Johnston also ordered TAMMY E. MOORE, 55, to pay more than $1 million in restitution.

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 Loves Park Police Department assisted in the investigation.  The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.

Moore was an office manager for a company in Loves Park that made custom components for a variety of industries.  Moore admitted in a plea agreement that from 2012 to 2020, she fraudulently obtained more than $1 million from the company.  Moore issued company checks to herself and her husband’s business from the company’s account, forged the signature of the company’s owner on checks, deposited the checks into her personal bank account and her husband’s business account for her personal benefit, and then initiated online transfers to move the money.  Moore concealed these transactions by making it appear as though the checks were for legitimate business purposes and by deleting the company’s records of the forged checks.

CHICAGO — On April 13, 2015, the U.S. Attorney’s Office for the Northern District of Illinois announced a joint federal and state investigation into the Oct. 20, 2014, fatal shooting of Laquan McDonald.  On Nov. 24, 2015, the Office announced that the investigation remained active and ongoing.  The Office conducted a thorough and independent investigation with the assistance of its federal, state, and local investigative partners, including the Cook County State’s Attorney’s Office, Federal Bureau of Investigation, and the Chicago Independent Police Review Authority and its successor, the Civilian Office of Police Accountability.

In November 2015, the Cook County State’s Attorney’s Office, in consultation with the U.S. Attorney’s Office, proceeded with murder charges against former Chicago Police Officer Jason Van Dyke in the Circuit Court of Cook County.  Experienced and independent prosecutors led the state prosecution, resulting in Mr. Van Dyke’s historic convictions of second-degree murder and sixteen counts of aggravated battery with a firearm.  On Jan. 18, 2019, Mr. Van Dyke was sentenced to 81-months’ imprisonment.

Today, John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, announced that the U.S. Attorney’s Office will not pursue a successive prosecution of Mr. Van Dyke on federal criminal charges.  The decision not to pursue a federal prosecution is consistent with Department of Justice policy and was made in consultation with Mr. McDonald’s family.  U.S. Attorney Lausch has spoken with a representative of Mr. McDonald’s family on multiple occasions over the past three years, including recently, to discuss the factors the Department of Justice considers when deciding to bring a second prosecution.  The family was in agreement not to pursue a second prosecution, and the Office respects their position. 

While much of the evidence presented at Mr. Van Dyke’s state trial was developed through a joint federal and state investigation, a federal trial would not be a retrial of the state case.  There is no general murder charge under federal law that would apply.  Federal prosecutors would need to prove to a jury beyond a reasonable doubt that Mr. Van Dyke willfully deprived Mr. McDonald of a constitutional right.  To do that, prosecutors would have to prove not only that Mr. Van Dyke acted with the deliberate and specific intent to do something the law forbids, but also that his actions were not the result of mistake, fear, negligence, or bad judgment.  It requires federal prosecutors to prove beyond a reasonable doubt what Mr. Van Dyke was thinking when he used deadly force, and that he knew such force was excessive.  The federal law presents a very high bar – more stringent than the state charges on which Mr. Van Dyke was convicted.

Even if a federal trial resulted in a conviction, the federal judge imposing sentence would be obligated to consider the 81-month state sentence previously imposed, as well as other relevant factors, including the same aggravating and mitigating factors presented at Mr. Van Dyke’s extensive state-court sentencing hearing; the fact that Mr. Van Dyke served his state prison sentence with conduct entitling him under state law to be released early; and the fact that Mr. Van Dyke no longer is and never again will be a police officer.  Given these factors, there is a significant prospect that a second prosecution would diminish the important results already achieved. 

In addition to the conviction and imprisonment of Mr. Van Dyke, the murder sparked an extensive Department of Justice investigation of the Chicago Police Department, the results of which were largely incorporated into a federal consent decree requiring the Chicago Police Department to implement hundreds of meaningful police reform measures.

The public should not draw conclusions regarding how the Office is likely in the future to analyze incidents of alleged crimes by law enforcement officers.  The Department of Justice remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources required to ensure that credible allegations of civil rights violations are thoroughly examined.

CHICAGO — With the arrival of Tax Day, the U.S. Attorney’s Office and IRS Criminal Investigation Division today reminded taxpayers to accurately file their returns and promptly pay any money owed.

Tax evaders face criminal charges, including potential incarceration, as well as civil penalties, and they remain responsible for all taxes and interest due, said 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.

“Taxes are how governments provide essential services,” said U.S. Attorney Lausch.  “Tax offenses are neither victimless nor without consequence.  Our office strives to preserve the integrity of the federal tax system through vigorous enforcement of the internal revenue laws.”

“2021’s Tax Day is here, and it is important for people to have confidence that when they pay their taxes, their neighbors and co-workers are doing the same,” said IRS-CI SAC Campbell.  “If you have someone else preparing your tax return, make sure they are a reputable return preparer.  Dishonest tax professionals use a variety of methods to cheat the government.  Remember, it is your responsibility to know what is on your income tax return.  You are ultimately responsible for what gets filed with the IRS.”

Several Chicago-area defendants have recently been charged in federal court for a variety of tax violations, exemplifying the serious nature of tax offenses:

HERBERT O. MCDOWELL III, 79, of Evanston, Ill., was indicted last week on tax evasion charges for allegedly failing to pay individual and corporate income taxes.  The indictment accuses McDowell of, among other things, shielding his individual income from 2015 to 2019 by causing money to be paid to his company – United Preferred Companies of Northfield, Ill. – but spending it for his personal benefit.  Despite receiving more than $2.9 million in gross income in those years, McDowell failed to file a tax return or pay taxes on the income that he earned.  McDowell’s arraignment is scheduled for Tuesday at 11:00 a.m. before U.S. Magistrate Judge Maria Valdez.  The government in McDowell’s case is represented by Assistant U.S. Attorney Patrick J. King, Jr.

Professional tax preparer ADAM R. OLIVA, 40, of Cape Coral, Fla., and formerly of Rolling Meadows, Ill., was charged last month in connection with an alleged scheme to defraud his clients by using FDIC-insured financial institutions as a conduit to funnel more than $1 million in client funds to himself instead of the IRS.  Oliva also allegedly directed the IRS to send some of his clients’ tax refunds to himself rather than to the clients.  Oliva has pleaded not guilty to the charges.  A status hearing in federal court in Chicago is scheduled for May 12, 2022.  The government in Oliva’s case is represented by Assistant U.S. Attorney Rick Young.

YOUSEF ABU ALHAWA, 47, of Lockport, Ill., was charged this month with three counts of filing a false income tax return.  Alhawa allegedly filed false returns from 2015 to 2017.  Alhawa, who owned a grocery store in the Chicago Lawn neighborhood of Chicago, was also charged with multiple counts of wire fraud for allegedly fraudulently redeeming or causing to be redeemed benefits under the Supplemental Nutrition Assistance Program (“SNAP”) and the Special Supplemental Nutrition Program for Women, Infants, and Children (“WIC”).  From 2011 to 2019, Alhawa redeemed more than $10.9 million in SNAP benefits and more than $3.6 million in WIC benefits through his grocery store, the indictment states.  Alhawa has pleaded not guilty to the charges.  A status hearing in federal court in Chicago is scheduled for May 18, 2022.  The government in Alhawa’s case is represented by Assistant U.S. Attorney Paul Mower.

According to the IRS, taxpayers should file or request an extension of time to file and pay any taxes they owe by today’s deadline to avoid penalties and interest.  For more information, the IRS encourages taxpayers to visit the official IRS website.

CHICAGO — A former U.S. Postal Service employee in Chicago has been indicted on federal charges for allegedly stealing government stimulus checks from the mail.

OLIVIA L. BRYANT, 33, of Chicago, is charged with three counts of theft from the U.S. mail.  Bryant pleaded not guilty to the charges during her arraignment Monday in federal court in Chicago.  A status hearing is set for May 13, 2022, at 1:00 p.m., before U.S. District Judge John Robert Blakey.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Andre Martin, Special Agent-in-Charge of the Central Area Field Office of the U.S. Postal Service Office of Inspector General; and J. Russell George, Inspector General of the Treasury Department Inspector General for Tax Administration (TIGTA).

The indictment accuses Bryant of stealing three pieces of mail from her route in Chicago in March of last year.  Special Assistant U.S. Attorney Malgorzata Tracz Kozaka advised the Court during arraignment that the stolen mail contained government stimulus checks.

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 a maximum sentence of five years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A federal grand jury has indicted a suburban Chicago man for allegedly trafficking cocaine and illegally possessing a loaded handgun.

An indictment returned in U.S. District Court in Chicago charges GILBERTO ALMANZA, 44, of North Chicago, Ill., with two counts of distribution of a controlled substance, one count of possession of a controlled substance with the intent to deliver, and one count of possessing a firearm in furtherance of drug-trafficking activities. 

The charges in the indictment carry a mandatory minimum sentence of 15 years in federal prison and a maximum of life.  Almanza is currently detained in federal custody.  Arraignment is set for Friday at 1:30 p.m. before U.S. District Judge Matthew F. Kennelly.

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 DEA.  The government is represented by Assistant U.S. Attorneys Megan DeMarco and A.J. Dixon.

According to the indictment and a criminal complaint previously filed in the case, Almanza distributed approximately 46 kilograms of cocaine on Sept. 2, 2021.  The delivery occurred in a restaurant parking lot in Bolingbrook, Ill., the charges allege.  Unbeknownst to Almanza, the individual to whom Almanza delivered the cocaine was cooperating with law enforcement, the charges allege.

A second drug deal allegedly occurred last month at Almanza’s residence.  Another individual surreptitiously cooperating with law enforcement bought approximately half a kilogram of cocaine from Almanza, the charges allege.  Law enforcement conducted a court-authorized search of Almanza’s residence on March 17, 2022, and discovered approximately two kilograms of cocaine and the loaded handgun, the charges allege.

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.

ROCKFORD — A federal jury in Rockford today convicted an Illinois man in connection with the killing of Special Deputy U.S. Marshal Jacob Keltner.

The jury found FLOYD E. BROWN, 42, of Springfield, Ill., guilty of second-degree murder of a federal officer, attempting to kill additional federal officers, assault of federal officers, and multiple firearm offenses.  The convictions carry a maximum sentence of life in prison.  U.S. District Judge Matthew F. Kennelly set sentencing for July 19, 2022, at 1:00 p.m.

The convictions were 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 office of the FBI.  Valuable assistance was provided by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, 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 Illinois State Police.  The government is represented by Assistant U.S. Attorneys Talia Bucci, Scott Paccagnini, and Ronald DeWald.

Evidence presented at the two-week trial revealed that Special Deputy Keltner was fatally wounded on March 7, 2019, when members of the U.S. Marshals Service Great Lakes Regional Fugitive Task Force and other law enforcement officers attempted to execute a warrant for Brown’s arrest at a Rockford hotel.  Brown was wanted on a residential burglary charge.  Special Deputy Keltner served as a McHenry County Sheriff’s deputy and was a sworn member of the task force. 

When the officers attempted to gain access to Brown’s third-floor hotel room, he fired ten shots through the door and nearby walls, narrowly missing a Deputy U.S. Marshal and two Special Deputy U.S. Marshals.  Brown then jumped out of a window and fired a shot that fatally struck Special Deputy Keltner, who was covering the exterior of the hotel.  Brown was arrested several hours later near Lincoln, Ill., after a high-speed pursuit.

ROCKFORD — A federal grand jury in Rockford has returned an indictment charging two defendants - TONY CLAPP, 58, and GREGORY BOLLMAN, 48 - with conspiracy to possess 50 grams or more of methamphetamine with the intent to distribute.

Clapp was also charged with attempted possession of 50 grams or more of methamphetamine with the intent to distribute.  He is currently on supervised release stemming from federal distribution of cocaine charges.  

The indictment was returned on Tuesday.  Arraignments in U.S. District Court in Rockford have not yet been scheduled. 

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the DEA.  Substantial assistance was provided by the Illinois State Police, Illinois State Police Blackhawk Area Task Force, the Whiteside County Sheriff’s Office, and the Nebraska State Police.  The government is represented by Assistant U.S. Attorney Robert Ladd.

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

Clapp faces a mandatory minimum sentence of 15 years in prison and a maximum  of life, while Bollman faces a mandatory minimum sentence of 10 years and a maximum of life.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines. 

CHICAGO — A man has been sentenced to nine years in federal prison for illegally possessing a loaded handgun on a Chicago street.

CIPRIANO RIVERA illegally possessed the gun on Sept. 28, 2019, near an alley in Chicago’s West Town neighborhood.  Rivera was driving his sport-utility vehicle when he fired several shots at an individual who was walking through the alley.  Neither the individual nor anyone else was wounded.  While speeding away from the area, Rivera tossed the gun out of the car window.  Chicago Police officers a short time later pulled over the SUV and arrested Rivera.  Bystanders near the scene of the shooting found the gun and alerted police.

Rivera, 36, of Villa Park, Ill., pleaded guilty last year to a federal charge of illegal possession of a firearm.  Rivera had previously been convicted of multiple felony firearm offenses in state court and was prohibited by federal law from possessing the gun. 

U.S. District Judge Ronald A. Guzman imposed the prison sentence Tuesday after a hearing in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; 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 fired his gun to kill the man walking in the alley,” Assistant U.S. Attorney Jason Yonan argued in the government’s sentencing memorandum.  “These actions were egregious and placed numerous members of the public at grave risk, including the person defendant shot at and the people living nearby.”

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.

A 21-count superseding indictment unsealed Wednesday charges 12 individuals with conspiring to violate federal firearms statutes, including engaging in the business of dealing in firearms without a license; transporting and receiving firearms into another state; making false statements to a federally licensed firearm dealer; conspiring to possess firearms in furtherance of drug trafficking crimes and to use and carry firearms in relation to crimes of violence; and conspiring to commit money laundering, as well as other related substantive offenses. 

“The Justice Department recognizes that fighting violent crime requires approaches tailored to the needs of individual communities,” said Attorney General Merrick B. Garland. “But gun violence can be a problem that is too big for any one community, any one city, or any one agency to solve. That is why our approach to disrupting gun violence and keeping guns out of the hands of criminals rests on the kind of coordination you see here today.”

Wednesday morning, agents from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), IRS-Criminal Investigation (CI) and officers from the Chicago Police Department and the Davenport, Iowa, Police Department began arresting those charged in the indictment. As of this morning, six of those charged are in custody and the remaining defendants are currently being sought by law enforcement. 

The U.S. Attorney’s Office for the Northern District of Illinois will handle the initial appearances by all defendants before they are transferred to the Middle District of Tennessee for further proceedings. 

In July 2021, Demarcus Adams, 21; Jarius Brunson, 22; and Brandon Miller, 22, were enlisted members of the U.S. Army and stationed at the Fort Campbell military installation in Clarksville, Tennessee, and were charged by indictment with crimes stemming from the purchase and transfer of dozens of firearms to the streets of Chicago. In addition to these defendants, this superseding indictment charges the following nine individuals in the conspiracies and other substantive offenses: Blaise Smith, 29; Rahaeem Johnson, aka Rah, 24; Bryant Larkin, 33; Corey Curtis, 26; Elijah Tillman, 24; Lazarus Greenwood, aka Zarro, 23; Dwight Lowry, aka Ike, 41; Dreshion Parks, 25, all of Chicago; and Terrell Mitchell, 27, of Davenport, Iowa.

The indictment alleges that the new defendants are members of the Gangster Disciples street gang in the Pocket Town neighborhood of Chicago. Between December 2020 and April 2021, the defendants conspired to purchase and deliver over 90 illegally obtained firearms to the Chicago area to facilitate the ongoing violent disputes between the Pocket Town Gangster Disciples and their rival gangs. 

The indictment further alleges the methods used by co-conspirators to purchase firearms from federally licensed firearms dealers in the Clarksville, Tennessee and Oak Grove, Kentucky areas, which included communicating via text messages to coordinate the purchase and delivery of firearms to the Chicago area; providing false information on firearms purchase application forms; and using online apps to facilitate payment for the illegal transfer of firearms. On one occasion, the indictment alleges that in addition to several firearms available for sale, Brandon Miller had 1,000 rounds of 9mm ammunition available for purchase. 

If convicted, the defendants face up to 20 years in prison on one or more of the charged counts.

The announcement was made by Attorney General Merrick B. Garland; U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee; U.S. Attorney John Lausch for the Northern District of Illinois; Special Agent in Charge Mickey French of the ATF Nashville Field Division; Special Agent in Charge Kristen de Tineo of the ATF Chicago Field Division; Karen Wingerd, Assistant Special Agent in Charge of IRS-CI, Charlotte Field Office; and Assistant Director Guy Surian for Investigations and Operations, U.S. Army - Criminal Investigation Division (CID).

This case is being investigated by the ATF-Nashville, Chicago, and Des Moines Divisions; the U.S. Army-CID; the IRS-CI - Charlotte and Chicago Field Offices; the Clarksville, Tenn. Police Department; the Chicago Police Department and the Chicago Crime Gun Intelligence Center; and the Davenport, Iowa Police Department. Assistant U.S. Attorneys Josh Kurtzman and Kathryn Risinger are prosecuting the case. 

An indictment is merely an accusation. All defendants are presumed innocent until proven guilty in a court of law. 

CHICAGO — A Southern California businessman has been sentenced to a year in federal prison for illegally brokering the sales of embargoed defense articles from the People’s Republic of China and filing a false corporate tax return.

TUQIANG XIE, also known as “Tony Xie,” 60, of Irvine, Calif., pleaded guilty in 2019 to one count of violating the Arms Export Control Act and one count of filing a false tax return.  U.S. District Judge Charles R. Norgle imposed the year-and-a-day 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; Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division; and Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations.  Substantial assistance was provided by the Central Field Office of the Defense Criminal Investigative Service of the U.S. Department of Defense’s Office of Inspector General, and the IRS Criminal Investigation Division in Chicago.  The government was represented by Assistant U.S. Attorney Diane MacArthur of the Northern District of Illinois and Trial Attorney Matthew R. Hoffman of the Tax Division.

Xie admitted in a plea agreement that through his company, Bio-Medical Optics LLC of Irvine, Calif., he served as a broker for the shipment of defense articles on the U.S. Munitions List and the U.S. Munitions Import List.  The items on these lists are regulated components and systems used in U.S. military equipment.  Federal law requires that individuals involved in the business of manufacturing or exporting defense articles must obtain a license and register with the Directorate of Defense Trade Controls at the U.S. Department of State.  Xie never obtained a license or registered with the DDTC.  Moreover, the U.S. since 1989 has imposed an arms embargo on the PRC, restricting imports or exports of arms between the two countries.

Despite the arms embargo and the lack of a license or registration, Xie admitted in his plea agreement that in 2014 and 2015 he located a manufacturer in the PRC to produce defense articles for one of his clients.  Over time, Xie earned hundreds of thousands of dollars in commissions or fees based on his role in shipments to and from the PRC.

The tax charge pertained to Xie’s filing a false corporate tax return for Bio-Medical Optics for 2013.  Xie also admitted in the plea agreement that he filed false corporate tax returns for Bio-Medical Optics for 2009 through 2012, causing a total tax loss to the IRS of more than $100,000.

CHICAGO — A federal judge today sentenced a suburban Chicago woman to a year in prison for using insider information obtained from her husband to purchase shares of a company ahead of its acquisition by the husband’s employer.

DENISE GREVAS, 60, of Evanston, Ill., pleaded guilty last year to a securities fraud charge.  In addition to the year-and-a-day prison sentence, U.S. District Judge Harry D. Leinenweber fined Grevas $100,000.

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. Securities and Exchange Commission, which filed a civil enforcement action against Grevas, provided valuable assistance.  Assistant U.S. Attorneys Jared Hasten and Jason Yonan represented the government in the criminal case.

Grevas admitted in a plea agreement that she made $286,960 in illegal profits from the purchase and sale of securities in a Washington state-based pharmaceutical company, which was a target for acquisition and later acquired by a foreign pharmaceutical company that employed Grevas’s husband.  Grevas used material, non-public information about the expected acquisition to purchase shares in the Washington company ahead of a public announcement of the acquisition on Sept. 16, 2019.  After the announcement, the Washington company’s stock price increased and Grevas sold the shares for the profit.

ROCKFORD — A Rockford man has been sentenced to six years in federal prison for illegally possessing loaded handguns.

JAMES PETERSON, 41, last year illegally possessed a .380-caliber semi-automatic handgun and a .45-caliber handgun.  As a previously convicted felon, Peterson was not lawfully allowed to possess a firearm.

U.S. District Judge Iain D. Johnston imposed the prison sentence Friday after a hearing in federal court in Rockford.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations. Substantial assistance was provided by the Illinois State Police’s State Line Area Narcotics Team (SLANT), the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Drug Enforcement Administration.

The government was represented by Assistant U.S. Attorney Robert S. Ladd.

CHICAGO — A federal jury has convicted a suburban Chicago man of laundering illegal narcotics proceeds on behalf of drug traffickers in Mexico.

In the summer and fall of 2017, HUAZHI HAN schemed with an individual in Mexico to facilitate the receipt of more than $1 million in narcotics proceeds in the United States.  Han picked up the drug money from others in the Chicago area and used the cash to purchase and then re-sell electronic devices.  Han and another individual then caused the laundered money to be sent back to the traffickers in Mexico.

In November 2017, Han attempted to receive approximately $100,000 in narcotics money from a drug dealer.  At the time, Han was in possession of approximately $200,000 in cash, a firearm, and two loaded magazines.  Law enforcement then searched Han’s residence and discovered a money counter, multiple firearms, more than $1.1 million in cash concealed in cookie tins inside of a drop ceiling in the basement, and approximately $200,000 in cash in vacuum-sealed packaging in the basement closet.  In June 2018, law enforcement arrested Han after he received approximately $192,000 in money that was represented to Han to be drug money.  At that time, Han was again in possession of a loaded firearm.

After a two-week trial in U.S. District Court in Chicago, the jury on Thursday convicted Han, 43, of North Riverside, Ill., on all four charges against him, including one count of conspiracy to commit money laundering, one count of attempted concealment money laundering, one count of conducting a financial transaction with funds represented to be drug proceeds, and one count of operating an unlicensed money transmitting business.  In addition to the guilty verdicts, the jury returned a special verdict as to the forfeiture of criminally derived property, finding that Han should forfeit approximately $1.5 million in cash, four handguns, a 2016 Mercedes-Benz automobile, a 2015 Dodge Grand Caravan, and an iPhone.

Each money laundering count is punishable by up to 20 years in federal prison, while the operation of an unlicensed money transmitting business count is punishable by up to five years.  U.S. District Judge Andrea R. Wood has not yet set a sentencing date.

The conviction 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.  Substantial assistance was provided by the IRS Criminal Investigation Division in Chicago, Chicago Police Department, Homeland Security Investigations, and the U.S. Department of Treasury, Financial Crimes Enforcement Network.  The government is represented by Assistant U.S. Attorneys Richard M. Rothblatt and Alexandra Morgan.

CHICAGO — Two brothers from Chicago have been arrested on a labor trafficking charge for allegedly forcing undocumented Mexican immigrants to work in the construction trade.

AGUSTIN ARIAS LOPEZ, 30, and JUAN ARIAS LOPEZ, 32, conspired to illegally bring two individuals from Mexico to the United States on the condition that they work for the brothers’ construction business and repay the purported costs of their transport into the U.S., according to a criminal complaint filed Thursday in U.S. District Court in Chicago.  After they arrived in Chicago, the undocumented immigrants worked 12-15 hours per day, seven days per week, in exchange for weekly payments from the Arias Lopez brothers of $800 to $1,000, the complaint states.  From that sum, the immigrants were required to pay the Arias Lopez brothers $500 per week, which the brothers claimed went towards not only the costs of the transport but also rent, as the immigrants resided in Agustin Arias Lopez’s unfinished basement in the Englewood neighborhood of Chicago, the complaint states.

The complaint alleges that the Arias Lopez brothers threatened the immigrants with violence if they did not pay the money.  On one occasion in November 2021, Agustin Arias Lopez allegedly pointed a handgun at one of the immigrants.

The complaint charges the Arias Lopez brothers with conspiracy to knowingly bring, transport, harbor, and induce aliens to come to, enter, remain in, and reside in the U.S.   The brothers were arrested Thursday.  A detention hearing in federal court in Chicago is set for March 28, 2022, at 2:00 p.m.

The complaint 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; Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago; and Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations.  The government is represented by Assistant U.S. Attorney Charles W. Mulaney.

The public is reminded that a complaint 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 charge in the complaint 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.

ROCKFORD — A Loves Park, Ill., investment advisor has been sentenced to four years and four months in federal prison for financial fraud.

NASEEM SALAMAH, 41, fraudulently obtained a total of more than $968,000 from the accounts of three customers.  Salamah told the customers that he needed to move the money to diversify their assets, when, in fact, Salamah deposited the money into a bank account that he controlled.  Salamah then used the money for his own benefit and without the customers’ knowledge or consent. 

In addition to the prison sentence, U.S. District Judge Iain D. Johnston on Wednesday ordered Salamah to pay restitution to the victims in the amount of $968,582.12.

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. Securities and Exchange Commission, which filed a civil enforcement action against Salamah, provided valuable assistance.  The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.

CHICAGO — A man has been sentenced to 25 years in federal prison for violently sex trafficking two children in the Chicago area and Wisconsin.

In late 2019 and early 2020, DAVID L. SMITH took sexually explicit photographs of the children, who at the time were 16 and 17 years old, and posted them in commercial sex advertisements on the websites SkipTheGames and MegaPersonals.  He then arranged for the children to meet customers in hotel rooms, with Smith keeping all of the money that the children received.  On at least one occasion, Smith hit the 17-year-old victim in the face after she mistakenly accepted fake money from a customer.  On another occasion, Smith hit the 16-year-old victim in the face after he learned that the girl had contacted her mother.

Smith, 28, of Milwaukee, Wis., pleaded guilty last year to a federal sex trafficking charge.  In addition to the prison sentence, U.S. District Judge John J. Tharp, Jr., on Friday ordered Smith to pay $50,000 in restitution to each of his victims.

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 Oak Lawn (Ill.) Police Department, FBI Milwaukee Field Office, FBI Kansas City Field Office, FBI St. Louis Field Office, Wauwatosa (Wis.) Police Department, and the Missouri State Highway Patrol.  The government was represented by Assistant U.S. Attorneys Ann Marie E. Ursini and Caitlin S. Walgamuth.

“Defendant caused his minor victims irreparable harm and trauma by causing them to engage in commercial sex on numerous occasions,” Assistant U.S. Attorney Ann Marie E. Ursini argued in the government’s sentencing memorandum.  “These victims will carry the emotional scars of the defendant’s actions for the rest of their lives.”

CHICAGO — A man involved in a shooting incident in a Chicago suburb has been sentenced to more than eight years in federal prison for illegally possessing ammunition.

LAVOYCE BAYS was charged with illegally possessing four cartridges of .40-caliber ammunition on June 15, 2019, in Markham, Ill.  Bays was involved in a dispute with a man and others at a party and later saw the man at a gas station in the south suburb.  As the man attempted to drive away from the gas station, Bays fired multiple shots and wounded him.  The victim survived the shooting.  Law enforcement recovered ammunition casings from the crime scene, which led to the federal charges.

Bays, 32, of Markham, pleaded guilty last year to a federal charge of illegal possession of ammunition by a convicted felon.  He had previously been convicted in state court of a felony criminal offense and was not legally allowed to possess ammunition or a firearm. 

U.S. District Judge Sharon Johnson Coleman on Friday imposed a 102-month federal prison sentence.  Judge Coleman found that, in addition to illegally possessing the ammunition, the government met its burden in proving Bays possessed a firearm and committed the shooting at the gas station, conduct which supported an enhanced sentence.

The sentence 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.  The Markham Police Department provided valuable assistance.  The government was represented by Assistant U.S. Attorney Albert Berry III.

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.

ROCKFORD — A South Beloit, Ill., man has pleaded guilty to a federal charge of transportation of child pornography.

DAVID WITTWER, 51, entered the guilty plea Wednesday before U.S. District Judge John Z. Lee in Rockford.  Wittwer admitted in a plea agreement that on Feb. 24, 2016, he used his computer to post images of child pornography to a website.  Wittwer further admitted that he possessed a tablet device and cellphone that contained more than 600 images and videos of child pornography. 

The conviction carries a mandatory minimum sentence of five years in federal prison, and a maximum of 20 years.  Judge Lee set sentencing for July 27, 2022, at 1:30 p.m.  

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations.  Valuable assistance was provided by the South Beloit Police Department and the Winnebago County Sheriff’s Office.  The government is represented by Assistant U.S. Attorney Michael D. Love.

CHICAGO — Former City of Chicago Alderman RICARDO MUNOZ was sentenced today to 13 months in federal prison for using money from a political fund to pay personal expenses.

While serving as Alderman of the 22nd Ward in Chicago, Munoz used money from a political action committee formed by the Chicago Progressive Reform Caucus (CPRC) to pay a relative’s college tuition and other personal expenses, including jewelry, clothing, cell phones, vacations, sports tickets, and airline travel.  Public officials were prohibited by law from misappropriating funds from the CPRC for personal expenditures.  Munoz attempted to conceal the fraud scheme by making materially false representations to the Illinois State Board of Elections and staff members and contractors of the CPRC. 

Munoz, 57, of Chicago, pleaded guilty last year to federal wire fraud and money laundering charges.  U.S. District Judge John F. Kness imposed the prison 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; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government was represented by Assistant U.S. Attorneys Morris Pasqual and Jared Hasten.

CHICAGO — A police officer in Harvey, Ill., threatened to interfere with local towing companies’ ability to compete for city work unless they paid him cash and other benefits, according to a federal indictment.

From 2011 to 2019, DERRICK MUHAMMAD served as a Harvey Police Officer and oversaw the Harvey Police Department’s Traffic Division.  The role provided Muhammad with the authority to assign City of Harvey towing work to private towing companies.  An indictment returned Wednesday in U.S. District Court in Chicago alleges that Muhammad conspired with a relative to obtain cash, cars, and other benefits from the towing companies on the understanding that, absent such payment, Muhammad would interfere with the ability of the companies to compete for City of Harvey towing work.

The indictment charges Muhammad, also known as “Rick,” 73, of South Holland, Ill., with conspiracy, extortion, and bribery.  The indictment seeks forfeiture from Muhammad of approximately $100,000.  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 Brandon Gardner, Acting Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago.  The government is represented by Assistant U.S. Attorney Sean J.B. Franzblau.

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 conspiracy and extortion charges are each punishable by a maximum sentence of 20 years in federal prison, while the bribery charge is punishable by up to ten years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

ROCKFORD — A federal inmate at Thomson Penitentiary in Thompson, Ill., was convicted Tuesday for the assault of a federal correctional officer. 

JOSEPH VAN SACH, 49, was found guilty following a seven-day jury trial in federal court in Rockford. According to evidence at trial, Van Sach on April 2, 2019, forcibly assaulted the officer while he was engaged in the performance of his official duties.  Van Sach made physical contact and inflicted bodily injury to the officer.

Van Sach faces a maximum sentence of 20 years in federal prison, a maximum fine of up to $250,000, and restitution to the victim.  U.S. District Judge John Robert Blakey did not immediately set a sentencing date.

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.  The government is represented by Assistant U.S. Attorneys Jessica S. Maveus and Vincenza L. Tomlinson.

CHICAGO — An ongoing federal investigation into an alleged procurement fraud scheme at a Chicago elementary school has resulted in charges against a sales representative for a Chicago Public Schools vendor.

An indictment returned Monday in U.S. District Court in Chicago alleges that DEBRA M. BANNACK schemed with the Principal and Business Manager of Brennemann Elementary School on the North Side of Chicago to submit false purchase orders to CPS for school materials that Bannack’s company would purportedly supply.  In reality, Bannack’s company provided iPhones, iPads, and pre-paid gift cards to the Principal, Business Manager, and others at the school, for their personal use, the indictment alleges.  As a result of the scheme, Bannack and the CPS employees fraudulently misappropriated approximately $75,000 in CPS funds to which they were not entitled, the indictment states.

Bannack, 62, of Schaumburg, Ill., is charged with three counts of wire fraud and one count of mail fraud.  Each of the counts is punishable by up to 20 years in federal prison.  Arraignment in federal court in Chicago has not yet been scheduled.

The Principal – SARAH JACKSON ABEDELAL, of Chicago – and the Business Manager – WILLIAM JACKSON, of Chicago – were previously charged with participating in the fraud scheme.  Abedelal and Jackson have pleaded not guilty and are awaiting trial.

The Bannack 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 Will Fletcher, Inspector General of the Chicago Board of Education, Office of Inspector General.  The government is represented by Assistant U.S. Attorneys Terry M. Kinney and Patrick Mott.

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 reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A man has been sentenced to 28 years in federal prison for violently robbing more than a dozen Chicago liquor and convenience stores.

In the summer and fall of 2016, ANGELO STANTON robbed 15 stores and attempted to rob two others.  Stanton carried out takeover-style heists in which he pointed a handgun at employees and demanded cash from the register or safe.  Stanton fired shots in five of the incidents, wounding two store employees. 

The robberies and attempted robberies occurred in various Chicago neighborhoods:

• Aug. 23, 2016: Castillo’s Super Market, 2732 W. 59th St.
• Aug. 26, 2016: Danny’s Liquors, 2222 N. Western Ave.
• Aug. 30, 2016: One Stop Western Market, 3456 S. Western Ave.
• Sept. 3, 2016: Granados Liquors, 1859 W. 47th St.
• Sept. 8, 2016: Buchanas Food & Liquor, 1834 W. 47th St.
• Sept. 13, 2016: El Yunque Liquor Store, 1900 N. California Ave.
• Sept. 20, 2016: West Town Wine and Spirits, 2501 W. North Ave.
• Sept. 21, 2016: Park Dollar and Food Store, 1101 N. California Ave.
• Sept. 22, 2016: Albany Food & Liquors, 3048 W. Fullerton Ave.
• Sept. 23, 2016: Value Most Liquors, 3236 N. Pulaski Rd.
• Sept. 25, 2016: Manha grocery store, 3751 W. Armitage Ave.
• Sept. 28, 2016: Evelyn Food Market, 2926 W. Pulaski Rd.
• Sept. 30, 2016: Don’s Grill, 1837 S. Western Ave.
• Oct. 2, 2016: One Stop Market, 3456 S. Western Ave.
• Oct. 4, 2016: Humboldt Haus, 2958 W. North Ave.
• Oct. 9, 2016: Bucktown Food & Liquors, 2422 W. Fullerton Ave.
• Oct. 11, 2016: Lucky One Food, 1854 N. Pulaski Rd.

Stanton, 32, of Chicago, pleaded guilty last year to robbery and firearm charges.  U.S. District Judge Robert M. Dow, Jr., imposed the prison sentence Monday.  A hearing to determine the amount of restitution that Stanton must pay to the victims is scheduled for May 3, 2022.

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 Illinois State Police and Cook County Sheriff’s Office.  Assistant U.S. Attorney Ashley A. Chung represented the government.

CHICAGO — A suburban Chicago man has pleaded guilty to a federal child pornography charge for taking dozens of sexually explicit photographs of a three-year-old child.

MARCOS GERMAN MENDEZ, 34, of Rosemont, Ill., pleaded guilty Wednesday to one count of production of child pornography.  The conviction is punishable by a minimum sentence of 15 years in federal prison and a maximum of 30 years.  U.S. District Judge Mary M. Rowland set sentencing for June 21, 2022.

Mendez admitted in a plea agreement that on two occasions in 2015 he took a total of more than 60 sexually explicit photographs of the child while she was sleeping.  Mendez saved the images on his iPhone and iCloud account, and in 2016 he fled to Mexico.  He was later arrested and extradited to the United States.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations.  Valuable assistance was provided by HSI’s Mexico City office; FBI Chicago Field Office; U.S. Customs and Border Protection; U.S. Postal Service; Cook County, Ill., Sheriff’s Office; and U.S. Marshals Service.  The government is represented by Assistant U.S. Attorneys Misty N. Wright and Ashley A. Chung.

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

CHICAGO — A suburban Chicago man was sentenced today to a year and a half in federal prison for conducting an illegal sports gambling business and laundering the proceeds.

VINCENT DELGIUDICE, also known as “Uncle Mick,” 58, of Orland Park, Ill., directed an illegal bookmaking business in the Chicago area from 2016 to 2019.  Delgiudice retained a company in Costa Rica to operate a website, Unclemicksports.com, that gamblers used to place wagers on professional and collegiate sporting events.  Delgiudice worked with more than 20 agents and sub-agents who recruited gamblers and shared in the profits from the gamblers’ losses.  The agents and sub-agents managed more than 1,000 gamblers, meeting them as necessary to settle up and collect losses from them.  Delgiudice laundered the profits in a variety of ways, including making cash investments in businesses and having gamblers directly pay his personal expenses.

Delgiudice pleaded guilty last year to conspiracy and gambling charges.  In addition to the 18-month prison sentence, U.S. District Judge Virginia M. Kendall ordered Delgiudice to forfeit $3.6 million in criminally derived proceeds.

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 office of the FBI; and Justin Campbell, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The FBI’s Integrity in Sport and Gaming Initiative (ISG) is designed to tackle illegal sports gambling and combat threats of influence from criminal enterprises.

“While cloaked with a professional veneer and flashy website, this was a sordid operation,” Assistant U.S. Attorney Terry M. Kinney argued in the government’s sentencing memorandum.  “He preyed upon individuals’ addictions to line his pockets.”

In a consent decree entered Monday, a federal court ordered a Waukegan, Illinois, company to stop distributing nutritional supplements that violate the Federal Food, Drug and Cosmetic Act (FDCA), the Department of Justice and the U.S. Attorney’s Office for the Northern District of Illinois announced.

The United States alleged in a complaint filed in the Northern District of Illinois on March 3 that Salud Natural Entrepreneur, Inc. (Salud), its owner, Hector Pablo Oliva, production manager Michel Monfort, and quality control manager Carolina L. Giral violated the FDCA by distributing adulterated and misbranded dietary supplements and unapproved new drugs that the company claimed would cure, mitigate, treat or prevent diseases such as cancer, diabetes, high blood pressure and heart disease. The United States also alleged that Salud did not comply with good manufacturing practice regulations designed to help ensure the safety of nutritional supplements, and that on one occasion Salud used ingredients that had tested positive for salmonella in manufacturing a product.

“Nutritional supplement makers must comply with laws and regulations meant to protect public health,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to working with its agency partners to take action against manufacturers who risk the safety of consumers by failing to adhere to the FDCA.”

“Nutritional supplements must be manufactured, labeled, and distributed in compliance with federal law,” said U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois. “The U.S. Attorney’s Office is committed to working with our colleagues at the Department of Justice’s Consumer Protection Branch to ensure that the public is not misled by unsubstantiated claims.”

“Current good manufacturing regulations are in place to protect consumers, and it is imperative that dietary supplement manufacturers comply to ensure this protection,” said Associate Commissioner Judy McMeekin, Pharm.D. for FDA Regulatory Affairs. “We also hold manufacturers responsible when their product is inappropriately labeled with claims to cure or prevent disease to protect consumers who are unknowingly scammed by false or misleading claims.”

The defendants agreed to settle the suit and be bound by a consent decree of permanent injunction filed along with the complaint. The order entered by the court permanently enjoins the defendants from violating the FDCA, and requires, among other things, that the defendants stop manufacturing, processing, labeling, holding or distributing any product that they claim can treat or cure disease, until they comply with federal law. The defendants also must bring their operations into compliance with current good manufacturing regulations. 

The government was represented in this matter by Special Assistant U.S. Attorney and Senior Litigation Counsel Don Lorenzen of the Justice Department’s Consumer Protection Branch, with the assistance of Leslie Cohen of the FDA’s Office of Chief Counsel.

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.

WASHINGTON – In a consent decree entered Monday, a federal court ordered a Waukegan, Ill. company to stop distributing nutritional supplements that violate the Federal Food, Drug, and Cosmetic Act (FDCA), the Department of Justice and the U.S. Attorney’s Office for the Northern District of Illinois announced today.

The United States alleged in a complaint filed in the Northern District of Illinois on March 3, 2022, that Salud Natural Entrepreneur Inc., its owner, Hector Pablo Oliva, production manager Michel Monfort, and quality control manager Carolina L. Giral violated the FDCA by distributing adulterated and misbranded dietary supplements and unapproved new drugs that the company claimed would cure, mitigate, treat or prevent diseases such as cancer, diabetes, high blood pressure, and heart disease. The United States also alleged that Salud did not comply with good manufacturing practice regulations designed to help ensure the safety of nutritional supplements, and that on one occasion Salud used ingredients that had tested positive for salmonella in manufacturing a product.

“Nutritional supplement makers must comply with laws and regulations meant to protect public health,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to working with its agency partners to take action against manufacturers who risk the safety of consumers by failing to adhere to the FDCA.”

“Nutritional supplements must be manufactured, labeled, and distributed in compliance with federal law,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “The U.S. Attorney’s Office is committed to working with our colleagues at the Department of Justice’s Consumer Protection Branch to ensure that the public is not misled by unsubstantiated claims.”

"Current good manufacturing regulations are in place to protect consumers, and it is imperative that dietary supplement manufacturers comply to ensure this protection,” said Associate Commissioner Judy McMeekin, Pharm.D. for FDA Regulatory Affairs. “We also hold manufacturers responsible when their product is inappropriately labeled with claims to cure or prevent disease to protect consumers who are unknowingly scammed by false or misleading claims.”

The defendants agreed to settle the suit and be bound by a consent decree of permanent injunction filed along with the complaint. The order entered by the court permanently enjoins the defendants from violating the FDCA, and requires, among other things, that the defendants stop manufacturing, processing, labeling, holding or distributing any product that they claim can treat or cure disease, until they comply with federal law. The defendants also must bring their operations into compliance with current good manufacturing regulations. 

The government was represented in this matter by Special Assistant U.S. Attorney and Senior Litigation Counsel Don Lorenzen of the Justice Department’s Consumer Protection Branch, with the assistance of Leslie Cohen of the FDA’s Office of Chief Counsel.

Additional information about the Consumer Protection Branch and its enforcement efforts may be found here.

CHICAGO — Former Illinois State Sen. THOMAS E. CULLERTON pleaded guilty today to a federal embezzlement charge and admitted fraudulently receiving salary and benefits from a labor union for which he did little to no work.

The guilty plea 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 is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu and Erika Csicsila.

Cullerton, 52, of Villa Park, Ill., 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 also 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 for the three years he was on the union payroll.  When his supervisors requested that he perform his job duties, Cullerton routinely ignored them, the plea agreement states.  For the last year he remained on the payroll, Cullerton admitted that he performed no work at all of value for Teamsters Joint Council 25.  From March 2013 to February 2016, 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 money to pay personal expenses, such as his mortgage, utilities, and groceries.

The embezzlement charge is punishable by up to five years in federal prison.  U.S. District Judge Robert W. Gettleman set sentencing for June 21, 2022, at 10:30 a.m.

ROCKFORD — A Rockford man has been sentenced to nine and a half years in federal prison for bank robbery and attempted bank robbery.

LIONEL RUSSELL, 35, pleaded guilty last year to the attempted robbery of BMO Harris Bank, 228 S. Main St. in Rockford, and the robbery of Illinois Bank and Trust, 308 W. State St. in Rockford, both of which occurred on Jan. 27, 2020.

Russell admitted in a plea agreement that in the BMO Harris heist he presented a note to the teller demanding $20,000.  While the teller was complying with the note, Russell took the note back and left the bank without any money.  In the Illinois Bank and Trust robbery, Russell presented a note to the teller that stated, “I have a gun, I need everything out of the register.”  Russell received $14,625 from the teller and left the bank.

Russell was arrested by the Warren County (Ind.) Sheriff’s Office on Feb. 3, 2020, after a traffic stop.  At the time, Russell possessed in his car several bundles of cash that Russell admitted was stolen during the robbery of Illinois Bank and Trust.

U.S. District Judge Iain D. Johnston imposed the prison sentence Friday after a hearing in federal court in Rockford.  Russell was also ordered ordered to pay restitution totaling $14,625.

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 Rockford Police Department and the Warren County (Ind.) Sheriff’s Department.  The government was represented by Assistant U.S. Attorney Robert S. Ladd.

CHICAGO — A man has been sentenced to five years in federal prison for using an explosive device to damage a suburban Chicago restaurant.

On June 1, 2020, DIEGO VARGAS, 27, of Aurora, Ill., threw a lit explosive device through the window of Egg Harbor Cafe in Naperville, Ill., resulting in two explosions.  The restaurant was closed, and no injuries were reported.

In addition to the restaurant incident, Vargas on the previous night tried to steal cash from an ATM in Aurora.  Vargas struck the ATM with a baseball bat and a metal pole from a street sign in an unsuccessful attempt to pry it open.

U.S. District Judge Elaine E. Bucklo imposed the five-year 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; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The Naperville Police Department and Aurora Police Department provided valuable assistance.  The government was represented by Assistant U.S. Attorneys Barry Jonas and Kate McClelland.

CHICAGO — A federal judge today sentenced two men to federal prison for stealing expensive watches and jewelry at gunpoint from a suburban Chicago store.

TOBIAS DIGGS, 28, of Chicago, and JOSHUA MCCLELLAN, 32, of Oak Lawn, Ill., robbed Razny Jewelers in Hinsdale, Ill., on the morning of March 17, 2017.  More than $400,000 in merchandise was stolen during the heist, including watches by luxury brands Frederique Constant, Patek Phillipe, and Tudor.  The defendants later sold, attempted to sell, or disposed of some of the stolen items in the Chicago area and Atlanta, Ga.

A federal jury in 2020 convicted Diggs and McClellan on robbery and firearm charges.  U.S. District Judge Gary S. Feinerman today sentenced Diggs to eleven years in federal prison, and McClellan to eight years. 

The sentences were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations.  Valuable assistance was provided by the Hinsdale Police Department, Oak Lawn Police Department, and the FBI Chicago Field Office’s Cellular Analysis Survey Team (CAST).  Additional support was provided by the Felony Investigation Assistance Team (FIAT), a multi-jurisdictional law enforcement task force in the western suburbs of Chicago.  The government was represented by Assistant U.S. Attorney Albert Berry III.

Two other individuals allegedly participated in the robbery.  MARVON HAMBERLIN, of Chicago, was indicted and is a fugitive.  A warrant has been issued for his arrest.  The fourth individual has not been identified.

According to evidence presented at trial, the robbers planned in advance to rob Razny Jewelers.  On the day of the heist, McClellan drove the getaway car – a Lexus sport-utility vehicle – while Diggs and the other robbers entered the store and pointed a gun at a female employee.  After the unidentified robber tackled a store security guard, Diggs hit the female employee with the gun and dragged her by her hair to a back room, while he and the others gained accessed to the store’s safe and stole the jewelry.

CHICAGO — A federal grand jury in Chicago today indicted former Speaker of the Illinois House of Representatives MICHAEL J. MADIGAN on racketeering and bribery charges for allegedly using his official position to corruptly solicit and receive personal financial rewards for himself and his associates.

The 22-count indictment accuses Madigan of leading for nearly a decade a criminal enterprise whose purpose was to enhance Madigan’s political power and financial well-being while also generating income for his political allies and associates.  The charges allege that Madigan, who served as Speaker and occupied a number of other roles, including Representative of Illinois’s 22nd District, Committeeman for Chicago’s 13th Ward, Chairman of both the Illinois Democratic Party and the 13th Ward Democratic Organization, and partner at the Chicago law firm of Madigan & Getzendanner, used these positions to further the goals of the criminal enterprise.  The indictment alleges that Madigan directed the activities of his close friend – co-defendant MICHAEL F. MCCLAIN – and that McClain carried out illegal activities at Madigan’s behest.  Madigan and McClain allegedly caused various businesses, including the utility company Commonwealth Edison, to make monetary payments to Madigan’s associates as a reward for their loyalty to Madigan, at times in return for performing little or no legitimate work for the businesses. 

Madigan, McClain, and other members of the enterprise allegedly unlawfully solicited benefits from businesses and other private parties.  The indictment accuses Madigan of engaging in multiple schemes to reap the benefits of private legal work unlawfully steered to his law firm, including legal work from those with business before the State of Illinois and City of Chicago.

Madigan, 79, of Chicago, is charged with racketeering conspiracy and individual counts of using interstate facilities in aid of bribery, wire fraud, and attempted extortion.  McClain, 74, of Quincy, Ill., is charged with racketeering conspiracy and individual counts of using interstate facilities in aid of bribery and wire fraud.

Arraignments in U.S. District 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 Amarjeet S. Bhachu, Diane MacArthur, Timothy J. Chapman, Sarah E. Streicker, Michelle Kramer, and Julia Schwartz.

“Corruption by an elected official and his associates undermines the public’s confidence in our government,” said U.S. Attorney Lausch.  “The indictment alleges a long-term, multifaceted scheme to use public positions for unlawful private gain.  Rooting out and prosecuting the kind of corruption alleged in the indictment will always be a top priority for this office.”

“Our elected officials swear an oath to carry out the duties of their office,” said FBI SAC Buie.  “When they dishonor that oath, it erodes the trust we have in our officials to do the right thing for our communities, and the FBI and its partners stand ready to stamp out corruption at any level of government.”

“IRS Criminal Investigation provides financial investigative expertise in our work with our law enforcement partners,” said IRS-CI SAC Campbell.  “Our hallmark expertise in following the money trail in this type of case shows our agency is committed to rooting out public corruption.  Today’s indictment underscores our commitment to this work in a collaborative effort to promote honest and ethical government at all levels, and to prosecute those who allegedly violate the public’s trust.”

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 sentencing statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — Two executives of a Chicago-area non-profit organization have been indicted on federal fraud charges for allegedly misappropriating more than $1.8 million in funds intended to support the charity’s work with underprivileged youth.

TONY BELL served as executive director of the Center for Community Academic Success Partnerships, and BARBARA HARRIS was a CCASP project manager.  The non-profit organization received government grants and other funds to provide after-school programs to elementary and secondary schools in the Chicago area.  The government grants included funds from the 21st Century Community Learning Centers Program, a federal program offering financial support to community centers that provide academic enrichment opportunities.  The 21st Century program issued grants to its local administrator, the Illinois State Board of Education, which in turn disbursed the funds to CCASP.

An indictment returned Monday in U.S. District Court in Chicago alleges that Bell, Harris, and others from 2012 to 2017 fraudulently obtained and misappropriated at least $1.8 million in the federal funds.  Bell, Harris, and their associates allegedly transferred approximately $1.3 million of the fraud proceeds to bank accounts they controlled, and they used approximately $436,536 to pay down Bell’s credit card balances.  The pair and their associates also used approximately $130,372 of the fraud proceeds to write numerous checks made payable to Community Partners, an unincorporated entity which the defendants fraudulently claimed was a subcontractor to CCASP, the indictment states.  Bell and Harris subsequently negotiated the Community Partners checks for cash or used them to purchase money orders at a currency exchange in Dolton, Ill., according to the indictment.

The indictment charges Bell, 61, of Matteson, Ill., and Harris, 52, of South Holland, Ill., with conspiracy, money laundering, and wire fraud.  Arraignments in U.S. District 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; John F. Woolley, Special Agent-in-Charge of the U.S. Department of Education Office of Inspector General’s Midwestern Regional Office; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago.  The Illinois Office of Executive Inspector General provided valuable assistance.  The government is represented by Assistant U.S. Attorney Philip Fluhr.

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

CHICAGO — A suburban Chicago businessman pleaded guilty today to a federal fraud charge for swindling $2.5 million from a hospital that paid him for scarce personal protective equipment in the early weeks of the COVID-19 pandemic.

DENNIS W. HAGGERTY, JR., 45, of Burr Ridge, Ill., pleaded guilty to one count of wire fraud, which is punishable by up to 20 years in federal prison, and one count of money laundering, which is punishable by up to ten years.  U.S. District Judge John F. Kness set sentencing for May 25, 2022.

The guilty plea 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 L. Heidi Manschreck.

Haggerty and two business partners in March 2020 formed a company called At Diagnostics Inc. to sell personal protective equipment.  The company reached an agreement with a hospital in Iowa to sell 500,000 N95 respirator masks for $2.495 million.  Haggerty created an invoice to reflect the agreement and to instruct the hospital on where to wire the payment.  Based on the invoice, the hospital on March 31, 2020, wired the money to a bank account that Haggerty falsely claimed was an At Diagnostics account but which was actually the account of a different business solely controlled by Haggerty. 

Haggerty admitted in a plea agreement that he spent part of the money for his own personal benefit, including purchasing two Maserati automobiles and a Land Rover sport-utility vehicle, paying nearly $189,000 to credit card companies, withdrawing more than $147,000 in cash, and paying $20,000 to a personal friend.  Haggerty further admitted that At Diagnostics never delivered the masks, and when questioned about it by the hospital he falsely claimed that the bank had no record of the hospital’s payment being received.  When his business partners also questioned Haggerty about the whereabouts of the money, Haggerty altered a bank statement to make it appear as if the hospital’s funds had not been received.

Haggerty admitted in the plea agreement that he engaged in similar conduct with a hospital based in Illinois.  After reaching an agreement with that hospital to sell one million N95 masks for nearly $4.5 million, the hospital requested that an initial payment be sent to an escrow account instead of the account Haggerty provided.  When At Diagnostics failed to fulfill the hospital’s order, the money in escrow was returned.  The Illinois hospital, however, later inadvertently wired more than $933,000 to Haggerty’s account in connection with a second order for 500,000 N95 masks that were never delivered.  Haggerty admitted in the plea agreement that he spent some of this money for his own personal use and did not return any of it.