Northern District of Illinois

CHICAGO — A federal jury has convicted a Chicago woman on fraud and tax offenses for cashing her deceased grandmother’s pension checks and preparing false tax returns.

EUNICE SALLEY, also known as “Eunice Salley Dobyns,” “Oya Awanata-Bey,” and “Oya Awanata,” 37, was found guilty on all 29 counts against her, including pension fraud, embezzlement, mail fraud, and tax charges.  The jury returned the verdicts Friday after a four-day trial in U.S. District Court in Chicago.  U.S. District Judge Robert M. Dow, Jr., set sentencing for July 21, 2022.

The conviction 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; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; 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 Barry Jonas of the Northern District of Illinois, and Assistant Chief Andrew Kameros of the Justice Department’s Tax Division.

According to evidence presented at trial, Salley worked as a paid tax return preparer.  In 2016 and 2017, Salley prepared and filed with the IRS 22 false individual income tax returns on behalf of clients.  The returns, which sought more than $1 million in false refunds, contained fictitious wages and withholdings, as well as false medical, charitable, and employment-related expenses.  Salley demanded that many of her clients pay her up to 50% of the refund, in addition to her regular preparation fee.

Evidence regarding the pension fraud revealed that Salley’s grandmother died in 2009 after having worked for American Can Co.  After her death, the grandmother’s monthly pension checks continued to be delivered to the residence where Salley continued to reside.  From January 2013 to December 2017, 33 pension checks, totaling $14,131, were issued to the grandmother and deposited into one of six bank accounts opened and controlled by Salley.  On several occasions during that time Salley notarized and submitted to the pension plan administrator affidavits under her grandmother’s name, fraudulently affirming that the grandmother was alive.  Salley did not report approximately $5,000 in income she received in 2017 from the pension checks that she embezzled.

CHICAGO — An inmate in a state prison in Arizona has been charged with federal drug offenses for allegedly brokering the sale of fentanyl and methamphetamine in Illinois.

A criminal complaint filed today in U.S. District Court in Chicago charges MANUEL GARCIA, also known as “Chuy,” 42, with distribution of controlled substances. 

Garcia has been incarcerated since 2010 by the Arizona Department of Corrections, Rehabilitation, and Reentry.  In the summer of 2021, while residing at the Eyman Arizona State Prison Complex, Garcia allegedly coordinated with a buyer outside of the prison to purchase methamphetamine and fentanyl for delivery to Illinois.  Garcia negotiated the transaction, including sending photos of the methamphetamine via video chat, using a cell phone he had smuggled into the prison, the complaint states.  Garcia had approximately a pound of crystal methamphetamine and nearly 1,000 fentanyl pills sent to the buyer at an address in Joliet, Ill., the complaint states.  Unbeknownst to Garcia, the buyer was cooperating with law enforcement.  On July 8, 2021, law enforcement intercepted the package of narcotics upon arrival at a U.S. Postal facility in Forest Park, Ill.

In the days that followed, Garcia allegedly directed the buyer to meet a third party and pay him on Garcia’s behalf for the fentanyl and methamphetamine.  On July 14, 2021, with law enforcement covertly watching, the buyer met with Garcia’s representative in a parking lot at O’Hare International Airport in Chicago and provided $11,100 as payment to Garcia for the narcotics, the complaint states.

Garcia currently resides at the Florence Arizona State Prison Complex.  His initial appearance in federal court in Chicago has not yet been scheduled.

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

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

CHICAGO — A man has been sentenced to 22 years in federal prison for participating in a violent robbery crew that targeted cell phone stores in the suburbs of Chicago.

AARON CLARK was part of a crew that conspired to rob cell phone stores in Calumet City, Ill., and Peotone, Ill., in 2017.  The crew conducted takeover-style heists in which the robbers pointed guns at employees and bound their hands and feet with duct tape or rope.  The robbers then stole cash and electronic devices and fled the stores.  Clark brandished a gun during the heists and threatened to shoot store employees.  In the Peotone robbery, Clark violently kicked a store employee in the face and knocked another employee off of a stool to the ground. 

Clark, 44, of Chicago, pleaded guilty last year to federal conspiracy, robbery, and firearm charges.  U.S. District Judge Edmond E. Chang imposed the 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; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department.  Valuable assistance was provided by the Calumet City Police Department, Peotone Police Department, Cook County State’s Attorney’s Office, and Will County State’s Attorney’s Office.

“The offenses in this case were violent and dangerous,” Assistant U.S. Attorneys Richard M. Rothblatt and Aaron R. Bond argued in the government’s sentencing memorandum.  “No one should have to experience the physical pain and psychological terror defendant imposed upon the employees at these stores who were simply doing their jobs.”

One other member of the crew was convicted of armed robbery offenses in the Circuit Court of Cook County and sentenced to 14 years in state prison.

CHICAGO — An ongoing federal investigation into an alleged fraud scheme at a Chicago elementary school has resulted in charges against two new defendants.

An eleven-count superseding indictment unsealed today in U.S. District Court in Chicago alleges that SARAH JACKSON ABEDELAL carried out a fraud scheme while serving as Principal of Brennemann Elementary School on the North Side of Chicago.  The first aspect of the scheme involved overtime fraud, for which Abedelal was initially charged last year.  The superseding indictment adds a second aspect to the alleged scheme – procurement fraud – and charges two new defendants: former Brennemann Assistant Principal JENNIFER MCBRIDE, also known as “Jennifer Ellen,” and former Brennemann Business Manager WILLIAM JACKSON.  McBride allegedly participated in the overtime aspect of the fraud scheme, while Jackson allegedly participated in both the overtime and procurement aspects.

The superseding indictment charges Abedelal, 58, of Chicago, with one count of wire fraud.  McBride, 40, of Northbrook, Ill., is charged with four counts of wire fraud.  Jackson, 37, of Chicago, is charged with five counts of wire fraud and one count of mail fraud.  Arraignments in U.S. District Court in Chicago have not yet been scheduled.

The superseding 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.

According to the superseding indictment, the procurement aspect of the fraud scheme was carried out by Abedelal, Jackson, and a sales representative for a company that sold goods to Chicago Public Schools.  The trio allegedly submitted or caused to be submitted to CPS false purchase orders and invoices totaling more than $45,000, ostensibly for office and school supplies.  In reality, they knew that the false orders and invoices were actually meant to conceal the receipt of iPhones, iPads, and approximately $30,000 in gift cards intended for the personal use of Abedelal, the indictment alleges.

The overtime aspect of the fraud scheme was allegedly carried out by Abedelal and McBride, with assistance from Jackson, two other former employees at the school, and others. The charges allege that Abedelal authorized unearned overtime pay for certain employees and directed them to deliver the proceeds to Abedelal or McBride in the form of cash or gift cards.  Abedelal told the employees that the money would be used to fund legitimate school expenses, when, in fact, Abedelal intended to convert the money to her own personal use, the indictment alleges.  Abedelal, McBride, Jackson, and others prepared or caused to be prepared fraudulent overtime sheets to conceal the scheme, the indictment states.

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

CHICAGO — A federal grand jury has indicted four men on firearm offenses for allegedly trafficking guns from St. Louis to Chicago.

A superseding indictment returned Monday in U.S. District Court in Chicago charges JEROME BOYKIN, 31, of St. Louis, Mo., ROBERT NARUP, 71, of Washington, Mo., RODOLFO ORTEGA, 26, of Chicago, and ROGELIO MANCERA, 26, of Schaumburg, Ill., with willfully dealing firearms without a license.  The indictment charges Boykin and Mancera with possessing multiple firearms while trafficking marijuana in the Chicago area, and it charges Ortega with illegally possessing two firearms as a previously convicted felon.

Arraignments are set for Feb. 23, 2022, at 11:30 a.m., before U.S. District Judge Charles R. Norgle.

The superseding indictment 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.  Assistant U.S. Attorney Megan DeMarco represents the government. 

ATF investigated the case alongside CPD’s Gun Investigations Team.  Valuable assistance was provided by the U.S. Attorney’s Office in the Eastern District of Missouri, and the St. Louis Field Office of ATF’s Kansas City, Mo., Field Division.

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

“Firearms traffickers enable unlawful possession of guns and the violence that may follow,” said U.S. Attorney Lausch.  “We will continue to work with our law enforcement partners in Chicago and across the country to bring impactful cases that hold firearms traffickers accountable and reduce violent crime in Chicago.”

“This case is an excellent example of how partnership and coordination among the Chicago Police Department, the U.S. Attorney’s Office and ATF addresses the root causes of gun trafficking,” said ATF SAC de Tineo.  “We will continue to focus on these investigations that have an impact on the gun violence in our community.”

According to criminal complaints previously filed in the case, Narup purchased firearms at gun shows throughout the United States and illegally sold them to Boykin in St. Louis.  Boykin allegedly brought the guns to Chicago and sold them to Mancera in exchange for marijuana.  Mancera then allegedly re-sold the guns to Ortega, who in turn allegedly sold them to buyers on the streets of Chicago.

The charges allege that 23 guns were possessed by Boykin and four guns were possessed by Mancera while they trafficked the marijuana. 

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. 

Dealing firearms without a license is punishable by up to five years in federal prison.  Possessing a firearm while trafficking marijuana is punishable by a mandatory minimum sentence of five years and a maximum of life.  The illegal firearm possession charge against Ortega is punishable by up to ten years.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A Chicago man has pleaded guilty to a federal charge accusing him of inciting rioting involving multiple incidents of property damage and looting in the city in the summer of 2020.

JAMES MASSEY, 23, pleaded guilty Tuesday to one count of inciting a riot, and participating in and carrying on a riot.  The conviction is punishable by a maximum sentence of five years in federal prison.  U.S. District Judge Matthew F. Kennelly set sentencing for May 10, 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; 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 Sheri L. Wong.

“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 is 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 or Near North Side areas of Chicago.

CHICAGO — A federal jury today convicted a Chicago attorney on false statement and tax offenses in connection with funds he received from the failed Washington Federal Bank for Savings.

PATRICK D. THOMPSON, 52, of Chicago, was found guilty on all seven counts against him, including five counts of willfully filing a false income tax return and two counts of knowingly making a false statement to the Federal Deposit Insurance Corp.  Each false statement count is punishable by a maximum sentence of 30 years in federal prison, while each tax count is punishable by up to three years.  U.S. District Judge Franklin U. Valderrama set sentencing for July 6, 2022.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jay N. Lerner, Inspector General of the FDIC’s Office of Inspector General; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Sally Luttrell, Assistant Inspector for Investigations of the Department of the Treasury, Office of Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General.  Valuable assistance was provided by the City of Chicago Inspector General’s Office.  The government is represented by Assistant U.S. Attorneys Michelle Petersen, Brian Netols, and Jeremy Daniel.

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

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

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

TERRANCE WEATHERSBY illegally possessed the gun on the afternoon of Oct. 6, 2018, in the 5800 block of West Fulton Street in Chicago’s Austin neighborhood.  Shortly after 1:00 p.m., Chicago Police officers responding to the sound of gunfire approached the area and observed a man subsequently identified as Weathersby firing a gun multiple times at unidentified individuals down the street, in the presence of bystanders.  Weathersby ran from the police and tossed the gun into a backyard before fleeing in a vehicle.  Other officers pulled over the vehicle a few blocks away and apprehended Weathersby.  Police then searched the area where Weathersby ran and discovered the gun, which was equipped with a high-capacity magazine.

Weathersby, 32, of Chicago, pleaded guilty to a federal charge of illegal possession of a firearm.  He had previously been convicted of felonies in state court, including a firearm offense, and was prohibited by federal law from possessing the gun. 

U.S. District Judge Thomas M. Durkin imposed an 87-month prison sentence Thursday after a hearing in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and David Brown, Superintendent of the Chicago Police Department.

“A felon carrying a gun fitted with a large capacity magazine, walking down our residential streets and shooting, strikes fear into the hearts of ordinary people,” Assistant U.S. Attorney Sheri H. Mecklenburg argued in the government’s sentencing memorandum.  “Defendant’s offense conduct was brazen, dangerous, and adversely affected public safety.”

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

CHICAGO — A suburban Chicago man pleaded guilty in federal court today to charges of child pornography and traveling to engage in sexual conduct with a minor.

JEREMIAH HARRIS, 22, of Naperville, Ill., pleaded guilty to one count of receipt of child pornography and one count of traveling with the intent to engage in illicit sexual conduct.  The child pornography charge carries a mandatory minimum sentence of five years in federal prison and a maximum of 20 years, while the travel charge is punishable by up to 30 years.  U.S. District Judge Manish S. Shah set sentencing for June 28, 2022, at 10:30 a.m.

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 investigation was conducted by the FBI Chicago Child Exploitation and Human Trafficking Task Force, which includes the Cook County Sheriff’s Office, Cook County State’s Attorney’s Office, and Chicago Police Department.  The Crystal Lake, Ill., Police Department and FBI Resident Agency in Waco, Texas, provided valuable assistance.  The government is represented by Assistant U.S. Attorney Kelly L. Guzman.

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

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

CHICAGO — A man has been sentenced to seven years in federal prison for illegally possessing a loaded semiautomatic handgun at a block party on the South Side of Chicago.

ANTHONY CARR illegally possessed the gun on the night of July 8, 2020, in the 6100 block of South Normal Boulevard in Chicago’s Englewood neighborhood.  Shortly after 11:00 p.m., Chicago Police officers approached the block party crowd and observed Carr, who immediately attempted to run away while holding his waistband.  Ignoring police commands to stop, Carr tossed the gun into a large outdoor tent before officers were able to apprehend him.

Carr, 33, of Chicago, pleaded guilty last year to a federal charge of illegal possession of a firearm.  Carr had previously been convicted of felonies in state court, including multiple armed robberies, and was prohibited by federal law from possessing the gun. 

U.S. District Judge Charles R. Norgle imposed the federal prison sentence Monday after a hearing in U.S. District 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. 

“The illegal possession of guns by felons are very serious offenses that threaten the safety of the public,” Assistant U.S. Attorney Misty N. Wright argued in the government’s sentencing memorandum.  “Defendant and other felons who carry guns must understand that illegally possessing weapons on the streets of Chicago translates to real consequences and real punishment.”

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

CHICAGO — A man has been indicted on a federal arson charge for allegedly using a Molotov cocktail to set fire to a building in the Pilsen neighborhood of Chicago.

JUAN AGUILAR, 37, of Chicago, is charged with one count of maliciously damaging and destroying a building, and one count of unlawfully possessing an improvised incendiary bomb, according to an indictment returned in U.S. District Court in Chicago.  The indictment accuses Aguilar of setting fire to a building in the 1600 block of West Cullerton Street in Chicago on Sept. 24, 2019.

Aguilar was taken into federal custody on Monday.  He pleaded not guilty at his arraignment Monday afternoon in federal court in Chicago.  A detention hearing is set for today at 11:15 a.m. before U.S. Magistrate Judge Jeffrey T. Gilbert.

The indictment 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 U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives in Chicago; and David Brown, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorney Jason A. Julien.

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

CHICAGO — A federal jury has convicted a man on a firearm charge for illegally selling a “ghost gun” to a convicted felon in a Chicago suburb.

The jury in U.S. District Court in Chicago on Thursday convicted JOSEPH GHANDOUR of illegally selling an AR-15 rifle to the felon during a meeting in a grocery store parking lot in Deerfield, Ill., on July 28, 2017.  The rifle was considered a “ghost gun” because it contained no identifiable serial number and had been manufactured by another individual from parts collected from various sources.  Unbeknownst to Ghandour, the felon to whom he sold the rifle was cooperating with law enforcement.

Ghandour, 31, of Glenview, Ill., was convicted of selling or disposing of a firearm to a convicted felon who could not lawfully possess a firearm.  The charge is punishable by a maximum sentence of ten years in federal prison.  U.S. District Judge Sara L. Ellis scheduled sentencing for June 22, 2022, at 10:30 a.m.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorneys Albert Berry III and Chester Choi.

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

CHICAGO — A telecommunications company conspired with former employees of Chicago-based Motorola Solutions Inc. to steal digital mobile radio technology developed by Motorola, according to an indictment unsealed today in federal court in Chicago.

According to the indictment, Motorola Solutions developed the DMR technology through years of research and design.  Motorola Solutions marketed and sold the radios, which are sometimes referred to as “walkie-talkies,” in the United States and elsewhere.  The indictment alleges that China-based HYTERA COMMUNICATIONS CORP. LTD. recruited and hired Motorola Solutions employees and directed them to take proprietary and trade secret information from Motorola without authorization.  The charges allege that while still employed at Motorola, some of the employees allegedly accessed the trade secret information from Motorola’s internal database and sent multiple emails describing their intentions to use the technology at Hytera.

From 2007 to 2020, Hytera and the recruited employees used Motorola’s proprietary and trade secret information to accelerate the development of Hytera’s DMR products, train Hytera employees, and market and sell Hytera’s DMR products throughout the world, the indictment states.  According to the indictment, Hytera paid the recruited employees higher salaries and benefits than what they received at Motorola.

The 21-count indictment was partially unsealed today by court order in U.S. District Court in Chicago.  It charges Hytera with conspiracy to commit theft of trade secrets.  Hytera and others are also charged with individual counts of possession or attempted possession of stolen trade secrets.  The names of other defendants who have not appeared in U.S. District Court are redacted.

The indictment was announced by John C. Kocoras, First Assistant 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 Melody Wells, Steven Dollear, and Vikas Didwania.

Hytera’s arraignment in federal court in Chicago has not yet been scheduled.  If convicted, the company faces a potential criminal fine of three times the value of the stolen trade secret to the company, including expenses for research, design, and other costs that it allegedly avoided.

The public is reminded that an indictment is not evidence of guilt.  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.

A federal indictment was unsealed today in the Northern District of Illinois, charging a telecommunications company with conspiracy to commit theft of trade secrets. The indictment alleges that a telecommunications company conspired with former employees of Chicago-based Motorola Solutions Inc. to steal digital mobile radio (DMR) technology developed by Motorola.

According to court documents, Motorola Solutions developed the DMR technology through years of research and design. Motorola Solutions marketed and sold the radios, which are sometimes referred to as “walkie-talkies,” in the United States and elsewhere. The indictment alleges that PRC-based Hytera Communications Corp. LTD recruited and hired Motorola Solutions employees and directed them to take proprietary and trade secret information from Motorola without authorization. The charges allege that, while still employed at Motorola, some of the employees allegedly accessed the trade secret information from Motorola’s internal database and sent multiple emails describing their intentions to use the technology at Hytera.

As alleged, from 2007 to 2020, Hytera and the recruited employees used Motorola’s proprietary and trade secret information to accelerate the development of Hytera’s DMR products, train Hytera employees, and market and sell Hytera’s DMR products throughout the world, the indictment states. According to the indictment, Hytera paid the recruited employees higher salaries and benefits than what they received at Motorola.

The 21-count indictment was partially unsealed today in U.S. District Court in Chicago by court order. It charges Hytera with conspiracy to commit theft of trade secrets. Hytera and others are also charged with individual counts of possession or attempted possession of stolen trade secrets. The names of other defendants who have not appeared in U.S. District Court are redacted.

If convicted, Hytera faces a potential criminal fine of three times the value of the stolen trade secret to the company, including expenses for research, design, and other costs that it avoided. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, First U.S. Attorney John C. Kocoras for the Northern District of Illinois and Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office made the announcement.

Assistant U.S. Attorneys Melody Wells, Steven Dollear and Vikas Didwania for the Northern District of Illinois are prosecuting the case, with valuable assistance provided by Trial Attorney Nic Hunter of the National Security Division’s Counterintelligence and Export Controls Section.

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

CHICAGO — A Chicago man has been sentenced to more than four years in prison for cyberstalking his federal probation officer.

ISAAC MYLES partially exposed his genitals to an officer from the U.S. Probation Office during an official visit to Myles’s home in September 2018.  Myles at the time was on court-supervised release after recently completing a federal prison sentence.  After the incident in his home, Myles repeatedly called the officer, leaving sexually explicit voicemails on her phone and referring to the officer in obscene and degrading terms.

Myles, 52, pleaded guilty last year to a federal charge of cyberstalking.  U.S. District Judge Ronald A. Guzman on Wednesday sentenced Myles to four years and four months in federal prison, to be followed by three years of court-supervised release.

The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; David Gelement, Acting U.S. Marshal 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 Jared C. Jodrey.

CHICAGO — A suburban Chicago man has been charged in federal court with fraudulently obtaining unemployment benefits in the names of hundreds of individuals whose information was used without their knowledge.

DARRONTE REGGANS, 33, of Matteson, Ill., is charged with ten counts of wire fraud and two counts of aggravated identity theft.  Reggans pleaded not guilty during his arraignment Tuesday in U.S. District Court in Chicago.  A status hearing is scheduled for March 1, 2022, before U.S. District Judge Martha M. Pacold.

According to the indictment, Reggans obtained unemployment insurance benefits from the Illinois Department of Employment Security by falsely and fraudulently representing that the purported claimants had worked and been terminated without fault by various employers.  Reggans requested payment from IDES via debit card and directed the agency to mail the cards to various addresses he selected, the indictment states.  Reggans then allegedly used the cards to withdraw the fraudulently obtained benefits from automated teller machines.

The charges allege that Reggans filed and caused to be filed approximately 296 fraudulent claims in the names of other individuals, using their names, Social Security numbers, dates of birth, and other personal identifying information without their knowledge.  The fraudulent claims sought at least $3.6 million in benefits and caused IDES to issue benefits totaling approximately $174,000, the indictment states.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Irene Lindow, Special Agent-in-Charge of the Chicago Division of the U.S. Department of Labor, Office of Inspector General; and William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.  Substantial assistance was provided by the Matteson, Ill., Police Department, and the DuPage County State’s Attorney’s Office.  The government is represented by Assistant U.S. Attorney Matthew Schneider.

“Unemployment insurance benefits provide a lifeline to many Americans facing economic hardships and job losses,” said U.S. Attorney Lausch.  “We will continue to work with our federal and state partners to hold accountable those who seek to commit fraud in connection with this important program.”

“An important part of the mission of the Office of Inspector General is to investigate allegations involving unemployment insurance fraud,” said DOL-OIG SAC Lindow.  “We will continue to work with our law enforcement partners to investigate these types of allegations.”

“The U.S. Postal Inspection Service is dedicated to holding responsible those who attempt to compromise the integrity of the U.S. Mail in furtherance of criminal activity,” said USPIS Inspector-in-Charge Hedrick.  “Postal Inspectors will continue working with our law enforcement partners to pursue justice on behalf of Postal customers in our community.”

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

CHICAGO — A man has been indicted on federal firearm charges for allegedly straw purchasing 27 handguns from stores in the Chicago suburbs.

MATTHEW JAMAAL JOHNSON purchased the handguns in 2020 and 2021 from licensed firearms dealers in Oak Forest, Ill., Mokena, Ill., Hodgkins, Ill., and Lansing, Ill., and falsely certified on federal forms that he was the actual buyer, according to an indictment unsealed Tuesday in U.S. District Court in Chicago.  In reality, Johnson purchased the guns on behalf of another individual, the charges allege.

Johnson, 34, of Dolton, Ill., is charged with 12 counts of making a false and fictitious statement in connection with the acquisition of a firearm.  Johnson was arrested Tuesday.  He pleaded not guilty during his arraignment Tuesday afternoon in federal court in Chicago.  A detention hearing is scheduled for Feb. 8, 2022, before U.S. Magistrate Judge Maria Valdez.

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.  The Chicago Police Department provided valuable assistance.  The government is represented by Assistant U.S. Attorney Margaret Steindorf.

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

“Straw purchasers put guns in the wrong hands,” said U.S. Attorney Lausch.  “Our office will continue to use federal laws to prosecute straw purchasers and hold them accountable for trafficking illegally purchased firearms.”

“Straw purchasers play a grave role in enabling the unlawful possession of guns and the violence that follows,” said ATF SAC de Tineo.  “Our agents are committed to working with our law enforcement partners and prosecutors to stop the flow of guns to individuals who cannot legally purchase them.”

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

CHICAGO — A man has been arrested on a federal drug charge after law enforcement seized fentanyl and a “pill press” in his suburban Chicago residence.

A complaint filed in U.S. District Court in Chicago charges TROY CLARK, 51, of Calumet City, Ill., with possession of a controlled substance with intent to distribute.

Law enforcement this week conducted a court-authorized search of Clark’s residence in Calumet City and discovered distribution quantities of fentanyl, as well as equipment that can be used to manufacture counterfeit pills, including a pill press, funnel, metal press, and dye pieces, the complaint states.

Clark was arrested Tuesday.  A detention hearing in federal court is scheduled for Feb. 8, 2022, at 2:00 p.m. before U.S. Magistrate Judge Maria Valdez.

The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; and David Brown, Superintendent of the Chicago Police Department.  The Calumet City Police Department provided valuable assistance.  The government is represented by Assistant U.S. Attorney Beth E. Palmer. 

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

ROCKFORD — An Iowa man has been indicted by a federal grand jury in Rockford on federal drug and firearm charges.

BRADLEY S. GODDARD, 33, of Clinton, Iowa, is charged with possession of a controlled substance with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a previously convicted felon, according to an indictment returned Jan. 25, 2022, in U.S. District Court in Rockford.  The drug charge involves 50 grams or more of methamphetamine, the indictment states.  The charges allege that Goddard possessed the drugs and firearm on Sept. 8, 2021, in Fulton, Ill.

Goddard pleaded not guilty Wednesday during arraignment in federal court.

The indictment 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 Office of the U.S. Drug Enforcement Administration, and Nicholas Neblung, Chief of Police of the Fulton, Ill., Police Department.  The Whiteside County, Ill., Sheriff’s Office and the Morrison, Ill., Police Department assisted in the investigation.  The government is represented by Assistant U.S. Attorney Vincenza L. Tomlinson.

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.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.  

CHICAGO — A suburban Chicago dentist fraudulently obtained $1.2 million in medical care loans for purported dental work that was never performed, according to a federal fraud charge.

MICHAEL D. EGAN, 58, of Orland Park, Ill., is charged with one count of wire fraud in a criminal information filed Tuesday in U.S. District Court in Chicago.  The charge is punishable by up to 20 years in federal prison.  Arraignment is scheduled for Thursday at 1:30 p.m. before U.S. District Judge Edmond E. Chang.

The charge 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 Kartik K. Raman.

Egan owned and operated a dental practice in Tinley Park, Ill.  The fraud charge alleges that in 2015 and 2016, Egan submitted fraudulent applications to a lending company for medical care loans that would purportedly finance certain patients’ dental care.  In reality, Egan knew that he would not, and in fact did not, perform the dental work on those patients, the information states.  In some instances, after a loan was approved Egan caused the amount to be increased by falsely informing the lending company that additional dental work was needed, when, in fact, Egan knew that no additional treatment – or any treatment at all – would be performed, the information states.

The charge alleges that Egan fraudulently obtained approximately $1.2 million from the lending company.  After receiving the fraudulently obtained loan proceeds directly from the lending company, Egan allegedly paid a portion of the money to the purported dental patients as well as to recruiters who had identified the patients to apply for the loans. 

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

CHICAGO — A convicted felon pleaded guilty today to a federal firearm violation for illegally possessing a semi-automatic rifle at the Jesse Brown VA Medical Center in Chicago.

BERNARD HARVEY, JR., 43, of Indianapolis, Ind., pleaded guilty to one count of illegal possession of a firearm by a convicted felon.  The charge is punishable by up to ten years in federal prison.  U.S. District Judge Robert M. Dow, Jr., set sentencing for May 5, 2022, at 10:30 a.m.

Harvey illegally possessed the rifle on Aug. 12, 2019, at the medical center, 820 S. Damen Ave. in Chicago.  Harvey had previously been convicted in the Circuit Court of Cook County of multiple felonies, including gun offenses, and was not lawfully allowed to possess the rifle.

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 David Brown, Superintendent of the Chicago Police Department.  The Jesse Brown VA Police Department provided valuable assistance.  The government is represented by Assistant U.S. Attorney Corey B. Rubenstein.

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

CHICAGO — A federal grand jury has indicted a man for allegedly robbing cell phone stores in the Chicago suburbs.

OCIE BANKS, JR., brandished a firearm in three robberies and one attempted robbery in late 2020 and early 2021, according to an indictment unsealed Thursday in U.S. District Court in Chicago.  The heists and attempted heist occurred at Metro by T-Mobile stores in Cicero, Ill., and Berwyn, Ill.

The indictment charges Banks, 33, of Berwyn, Ill., with three counts of robbery, one count of attempted robbery, and four counts of using, carrying, and brandishing a firearm during a crime of violence.  Banks pleaded not guilty Thursday during his arraignment in federal court.

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

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each robbery and attempted robbery is punishable by a maximum sentence of 20 years in federal prison, while each firearm count carries a mandatory seven-year sentence.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

ROCKFORD — An Illinois attorney has been sentenced to two years in federal prison for committing bankruptcy fraud.

U.S. District Judge Iain D. Johnston imposed the sentence Wednesday on KEVIN O. JOHNSON, also known as “K.O. Johnson,” 55, of Sycamore, Ill. 

A jury in August convicted Johnson on bankruptcy fraud and other charges after a two-week trial in federal court in Rockford.  The charges related to Johnson’s Chapter 7 bankruptcy proceeding initiated on Dec. 31, 2011.

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. Trustee’s Madison, Wisc., and Chicago offices provided substantial assistance.  The government was represented by Assistant U.S. Attorneys Matthew Schneider, Michael Love, and Michael Beckman.

CHICAGO — An administrative assistant at a suburban Chicago medical practice has been sentenced to a year in federal prison for fraudulently writing opioid prescriptions to an acquaintance.

AMANDA BIESIADA worked as an administrative assistant at Hinsdale Orthopaedics, a medical practice in Westmont, Ill.  Biesiada was not a licensed physician and could not lawfully prescribe medications without the direction and approval of licensed doctors.

From 2017 to 2019, Biesiada fraudulently wrote 85 prescriptions to the acquaintance for hydrocodone, oxycodone, and other controlled substances.  Biesiada purported to write the prescriptions on behalf of six Hinsdale Orthopaedics health care providers.  In reality, the providers did not direct or approve the prescriptions.  Biesiada attempted to conceal the fraudulent prescriptions by marking them as having been “filed in error” in the Hinsdale Orthopaedics prescription system.

Biesiada, 39, of Alsip, Ill., pleaded guilty last year to one count of knowingly and intentionally dispensing controlled substances outside the usual course of professional practice and without a legitimate medical purpose.  U.S. District Judge John J. Tharp, Jr., on Thursday sentenced Biesiada to a year and a day in federal prison.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration.

“The opioid epidemic has devastated the lives of countless individuals through addiction and overdose,” Assistant U.S. Attorney G. David Rojas argued in the government’s sentencing memorandum.  “Defendant contributed to this national crisis by helping make opiates available to an individual who otherwise would not and should not have had access to them.”

CHICAGO — A suburban Chicago nurse removed morphine from bottles prescribed to two patients and replaced it with another liquid, knowing the diluted substance would be dispensed to the patients, according to a federal indictment returned in U.S. District Court in Chicago.

SARAH DIAMOND was employed as the Assistant Director of Nursing at a Chicago-area medical rehabilitation center.  The indictment alleges that Diamond tampered with the liquid morphine in August 2021 with reckless disregard and extreme indifference for the risk that the patients would be placed in danger of bodily injury.

Diamond, 29, of Woodstock, Ill., is charged with two counts of tampering with a consumer product.  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 Lynda M. Burdelik, Special Agent-in-Charge of the Chicago Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations.  Valuable assistance was provided by the Crystal Lake, Ill., Police Department.  The government is represented by Assistant U.S. Attorney Kelly Greening.

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

“Patients should know they are receiving proper treatment from those entrusted with their medical care,” said FDA SAC Burdelik.  “We must hold medical personnel accountable when they take advantage of their unique position and tamper with medications their patients need, potentially exposing them to contaminated medical products.”

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

CHICAGO — A Chicago attorney used insider information obtained from a friend to purchase shares of an education-technology company before it publicly announced strong quarterly earnings, according to an indictment returned in federal court.

The indictment accuses attorney DAVID SARGENT of obtaining material, non-public information from CHRISTOPHER KLUNDT, a management-level employee of the company and a friend since college.  The information pertained to the company’s 2020 first-quarter earnings, which Klundt knew would be strong based on internal meetings he had attended, the indictment alleges.  After receiving the information from Klundt, Sargent purchased numerous shares and call options of the company’s stock ahead of the earnings announcement and then sold them shortly thereafter, the indictment states.  In the interim, the company’s stock price increased.  Sargent made approximately $110,000 from the trades, the charges allege.

The indictment was returned Monday in U.S. District Court in Chicago.  It charges Sargent, 37, of Chicago, and Klundt, 38, of San Francisco, Calif., with conspiracy, insider trading, and securities fraud.  Arraignments in federal court in Chicago have not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Assistant U.S. Attorneys Matthew Getter and Vikas Didwania represent the government.

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.

CHICAGO — A man has been arrested for allegedly robbing two suburban Chicago banks in recent weeks.

ANTONIO E. COLLINS has been charged with robbing a Chase Bank branch in Bolingbrook, Ill., on Dec. 21, 2021, and a BMO Harris Bank branch in Homewood, Ill., on Jan. 3, 2022.  In each robbery, Collins handed the teller a handwritten note demanding money and stating that he would shoot people if the teller did not comply, according to a criminal complaint filed in U.S. District Court in Chicago.  Collins made off with approximately $2,868 from the Chase robbery, and approximately $21,836 from the BMO Harris heist, the complaint states.

Collins, 26, of North Riverside, Ill., was arrested on Jan. 6, 2022.  The complaint charges him with two counts of bank robbery.  A detention hearing in federal court in Chicago is scheduled for Tuesday at 3:00 p.m. before U.S. Magistrate Judge Sunil R. Harjani.

The arrest and charges 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 Field Office of the FBI.  Substantial investigative assistance was provided by the Cook County Sheriff’s Office, Illinois State Police, and Police Departments in Bolingbrook, Ill., Homewood, Ill., North Riverside, Ill., Evergreen Park, Ill., and Orland Park, Ill.  The government is represented by Assistant U.S. Attorney Andréa Campbell.

The public is reminded that a complaint is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each bank robbery charge 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 Chicago physician used insider information to purchase shares of a California-based biotechnology company before it publicly announced positive results from a clinical trial of an experimental cancer drug, according to a federal criminal charge filed by the U.S. Attorney’s Office in Chicago.

DANIEL V.T. CATENACCI, a gastrointestinal medical oncologist in Chicago, served as one of the lead physicians and primary field investigators on the biotechnology company’s clinical trial.  Dr. Catenacci through this position allegedly received confidential information about the company and its clinical trial results. 

In November 2020, Dr. Catenacci used material, non-public information about the trial results to make more than $134,000 in illegal profits from the purchase and sale of securities in the company, according to a criminal information filed Friday in U.S. District Court in Chicago.  Dr. Catenacci purchased more than 8,000 shares before the company announced positive results from the trial, and then sold those shares shortly after the announcement, the information states.  In the interim, the shares held by Dr. Catenacci tripled or quadrupled in value, the information states.

The information charges Dr. Catenacci, 45, of Chicago, with one count of securities fraud.  The charge is punishable by up to 20 years in federal prison.  Arraignment in federal court in Chicago has not yet been scheduled.

The charge was announced by 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 provided valuable assistance.  Assistant U.S. Attorney Brian Havey represents the government.

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

CHICAGO — A suburban Chicago man has been sentenced to 30 years in federal prison for violently sex trafficking multiple women over the course of a decade.

From 2007 to 2016, BENJAMIN BIANCOFIORI used false promises of assistance to entice women into performing commercial sex acts.  Biancofiori recruited multiple victims and arranged for them to travel to meet customers in the Chicago area and other locations in the United States.  He often beat and punched the women, and he kept almost all of the money they received.  On one occasion, Biancofiori arranged for a victim to be returned to him at gunpoint after she tried to leave him.

A jury in 2018 convicted Biancofiori, 41, of Naperville, Ill., on sex trafficking and obstruction charges.  U.S. District Judge Harry D. Leinenweber imposed the prison sentence Thursday after a hearing in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; 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.  Substantial assistance was provided by the U.S. Attorney’s Office for the District of Colorado, the Denver Field Office of the FBI, the Carol Stream, Ill., Police Department, and the Naperville Police Department.  The government is represented by Assistant U.S. Attorneys Erika Csicsila and Diane MacArthur.

Two co-defendants of Biancofiori pleaded guilty and admitted conspiring with Biancofiori to engage in sex trafficking.  MARCUS WILLIS, of Wheaton, Ill., and NATHAN PEREZ, of West Chicago, Ill., are awaiting sentencing.

ROCKFORD — A Rockford man has been sentenced to four years in federal prison for illegally possessing a loaded handgun with an obliterated serial number. 

DONTREL U. BROWN, 24, illegally possessed the gun on May 13, 2020, in Rockford.  Brown at the time was on probation for previous felony convictions and was prohibited by federal law from possessing the firearm.

U.S. District Judge Iain D. Johnston imposed the sentence Monday 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 Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, & Explosives.  The Rockford Police Department provided valuable assistance in the investigation.  The government was represented by Assistant U.S. Attorney Jessica S. Maveus.

CHICAGO — A Chicago consultant pleaded guilty today to a federal tax offense for willfully attempting to evade and defeat the assessment of income taxes.

EDWARD ACEVEDO, 58, of Chicago, pleaded guilty to a tax evasion charge before U.S. District Judge Matthew F. Kennelly.  The conviction is punishable by a maximum sentence of five years in federal prison.  Judge Kennelly set sentencing for March 9, 2022.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Diane MacArthur, Sarah E. Streicker, Timothy J. Chapman, Michelle Kramer, and Julia Schwartz.

Acevedo worked as a self-employed consultant.  He admitted in a plea agreement that he willfully failed to file an individual income tax return for the calendar years 2015 through 2018, causing a loss to the IRS of at least approximately $37,380.  Acevedo further admitted that he attempted to evade taxes by handling his affairs in a manner so as to avoid the creation and maintenance of customary business and accounting records.

After discovering that he was under investigation by the IRS, Acevedo provided incomplete information to his accountant concerning the sources of Acevedo’s income and expenses for 2017 and 2018, causing the accountant to prepare incomplete federal tax returns for those years, the plea agreement states.

CHICAGO — A Will County woman has been sentenced to more than five years in federal prison for engaging in sexual conduct with an underage boy and directing him to send her sexually explicit images of himself.

DAYNA CHIDESTER engaged in sexual conduct with the boy on numerous occasions in November and December 2018.  Chidester knew at the time that the boy was 14 years old.  Chidester also directed the boy to take photos of himself while he was engaged in sexually explicit conduct, and to send the photos to Chidester’s cell phone.

Chidester, 53, of Manhattan, Ill., pleaded guilty earlier this year to a charge of receiving child pornography.  U.S. District Judge Jorge L Alonso on Wednesday sentenced Chidester to five years and four months in federal prison.

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

“Defendant’s offense was not a one-time lapse in judgment, but an ongoing pattern of criminal activity,” Assistant U.S. Attorney Ashley A. Chung argued in the government’s sentencing memorandum.  “Knowing full well that what she was doing was both reprehensible and criminal, defendant repeatedly victimized a child who trusted defendant.”

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 man has been arrested on a federal firearm charge for allegedly illegally possessing a loaded machine gun in Chicago.

An indictment unsealed today in U.S. District Court in Chicago charges KEYZOE WILLIAMS, 21, of Chicago, with one count of illegal possession of a machine gun.  The indictment accuses Williams of possessing a handgun equipped with a conversion device, also known as an “auto sear” or “Glock switch.”  The device transformed the firearm into a machine gun capable of automatically shooting more than one shot with a single pull of the trigger, the indictment alleges.  Williams allegedly possessed the machine gun in Chicago from February to August of this year.

Williams was arrested this morning and made an initial appearance in federal court this afternoon.  U.S. Magistrate Judge Susan E. Cox scheduled a detention hearing for Dec. 14, 2021, at 3:30 p.m.

The indictment and arrest were 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.  Valuable assistance was provided by the Willowbrook, Ill., Police Department, Illinois State Police, Chicago Police Department, DuPage County State’s Attorney’s Office, and the DuPage Metropolitan Emergency Response and Investigations Team.  The government is represented by Special Assistant U.S. Attorney Peter Madriñan.

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

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

CHICAGO — An ongoing federal investigation into the failure of Washington Federal Bank for Savings in Chicago has resulted in criminal charges against three former members of the bank’s Board of Directors who allegedly conspired to obstruct regulators and falsify bank records.

Washington Federal was closed in December 2017 after the Office of the Comptroller of the Currency determined that the bank was insolvent and had at least $66 million in nonperforming loans.  Several former Washington Federal employees, including the bank’s Chief Financial Officer and Treasurer, were previously indicted for allegedly conspiring with an Illinois attorney – ROBERT M. KOWALSKI, of Chicago – and other individuals to embezzle money from the bank.   On Tuesday, a federal grand jury in Chicago returned a 37-count superseding indictment that added four new defendants, including the three former Board members, bringing the total number of charged defendants to fourteen.

The three former Board members charged in the superseding indictment are WILLIAM M. MAHON, 55, of Chicago, JANICE M. WESTON, 63, of Orland Park, Ill., and GEORGE F. KOZDEMBA, 71, of Fort Myers, Fla.  Mahon, Weston, and Kozdemba are charged with conspiracy to falsify bank records and to deceive and obstruct the OCC.  Mahon also faces tax charges for allegedly willfully filing false income tax returns. 

The fourth newly charged defendant is Robert Kowalski’s brother, real estate developer WILLIAM A. KOWALSKI, 56, of Chicago, who is charged with conspiracy to embezzle bank funds. 

Arraignments in U.S. District Court in Chicago have not yet been scheduled.

The superseding indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jay N. Lerner, Inspector General of the FDIC’s Office of Inspector General; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Michael Powell, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; Sally Luttrell, Assistant Inspector for Investigations of the Department of the Treasury, Office of Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General.  Valuable assistance was provided by the City of Chicago Inspector General’s Office and the U.S. Trustee Program.  The government is represented by Assistant U.S. Attorneys Brian Netols, Michelle Petersen, and Jeremy Daniel, and Special Assistant U.S. Attorney Jeffrey Snell.

The superseding indictment alleges that the bank’s former Vice President - JAMES R. CROTTY, of Tinley Park, Ill. – and two other employees made false entries and documents in Washington Federal’s records to support insider loans to Mahon and others.  The employees – former Corporate Secretary JANE V. IRIONDO, of Boise, Idaho, and former loan officer CATHY M. TORRES, of Chicago – allegedly altered and caused to be altered appraisals for two properties owned by Mahon that served as collateral for two mortgages at Washington Federal.  The false items on the altered appraisals include inflated appraisal values and inflated values for the listed comparable sales, the indictment states.  The superseding indictment also alleges that Mahon concealed a loan he received from Washington Federal’s president in applications for loans from Washington Federal.

The new charges allege that when the OCC was evaluating Washington Federal’s loan portfolio prior to its failure, Crotty, Mahon, Weston, and Kozdemba made and caused to be made false entries in bank records and provided them to the OCC with the intent to deceive the agency and obstruct its examination.  The defendants also falsified records to make it appear that Washington Federal was operating in compliance with banking rules and internal policies and controls, the indictment states.

In addition to the new defendants and charges, the superseding indictment renews the charges previously filed against the other defendants.  Those charges allege a conspiracy to embezzle at least $31 million in bank funds.  Crotty and other bank employees allegedly transferred bank funds to Robert Kowalski and other individuals outside the bank without all of the required documentation and often without any documentation whatsoever.  One of the individuals outside the bank – real estate developer BOGUSLAW KASPROWICZ, of Burbank, Calif. – allegedly embezzled $14.3 million, at least $1.6 million of which was used by Kasprowicz for the benefit of the bank’s former president, who has since died and is not charged in the indictment.  Kasprowicz allegedly paid credit card accounts in the name of the bank president or an entity associated with him, and also made payments to another bank for a loan on the purchase of a $450,000 Sea Ray powerboat called “Expelliarmus.”

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.

CHICAGO — A Chicago-area physician unlawfully used veterinary catheters to perform intrauterine inseminations on his patients, according to a federal criminal charge filed today.

A criminal information filed in U.S. District Court in Chicago accuses JOEL G. BRASCH of unlawfully using the veterinary catheter devices on his patients from 2016 to 2018.  The devices were considered adulterated in that they had not been approved by the U.S. Food and Drug Administration for use on human patients.

Dr. Brasch, 61, of Skokie, Ill., is charged with receipt in interstate commerce and delivery of an adulterated device.  The charge is punishable by a maximum sentence of a year in federal prison and a fine of up to $100,000.  Arraignment in federal court has not yet been scheduled.

The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Lynda M. Burdelik, Special Agent-in-Charge of the Chicago Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The U.S. Office of Personnel Management provided valuable assistance.  The government is represented by Assistant U.S. Attorneys Sarah E. Streicker and Corey B. Rubenstein.

“The use of a veterinary device in a medical procedure like IUI poses a danger to the health and safety of patients,” said U.S. Attorney Lausch.  “We will continue to work with our law enforcement partners to hold accountable those who endanger the public health through the use of adulterated medical devices.”

“In procedures such as IUI, every step should strictly follow protocols in order to protect the patient’s health and safety and ensure the efficacy of the procedure,” said FDA SAC Burdelik.  “Utilizing instruments designed for animal use in humans can put patients at risk.  We will continue to investigate and bring to justice those who use unapproved devices on their human patients.”

“Our citizens place an immense amount of trust in healthcare professionals and the public should feel confident in the knowledge that the FBI works tirelessly with our partners to ensure that that trust is not misplaced,” said FBI SAC Buie.

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

ROCKFORD — Two inmates at Thomson Penitentiary in Thompson, Ill., were indicted today by a federal grand jury on murder and hate crime charges relating to the beating death of a fellow inmate. 

BRANDON C. SIMONSON, 37, also known as “Whitey,” and KRISTOPHER S. MARTIN, 39, also known as “No Luck,” were each charged with conspiracy to commit murder, second-degree murder, hate crime, and assault resulting in serious bodily injury, according to an indictment returned in U.S. District Court in Rockford.  Arraignments have not yet been scheduled.

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

“Hatred and violence on the basis of religion have no place in our society,” said U.S. Attorney Lausch.  “We will continue to work with our federal, state, and local law enforcement partners to protect the civil rights of all Americans.”

“All Americans have the right to live their lives without fear of race or religion-based violence, and FBI Chicago takes very seriously its responsibility to uphold the civil rights of Illinoisans,” said FBI SAC Buie.

According to the indictment, Martin and Simonson were members of a white supremacist group called the Valhalla Bound Skinheads.  On March 2, 2020, Martin and Simonson conspired to assault fellow inmate Matthew Phillips because of Phillips’s actual and perceived race and religion, namely Jewish, the indictment states.  Martin and Simonson continuously struck Phillips in the upper body, face, and head even after Phillips became defenseless, the charges allege.

Conspiracy to commit murder, second-degree murder, and hate crime each carry a maximum sentence of life imprisonment, while the maximum sentence for the assault charge is ten years.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

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

ROCKFORD — A Loves Park woman has pleaded guilty to a federal charge accusing her of fraudulently obtaining more than $1 million from her employer.

TAMMY E. MOORE, 54, pleaded guilty Friday to wire fraud before U.S. District Judge Iain D. Johnston.  Sentencing is set for April 19, 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 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 is 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.     

Moore is required to pay restitution to the company in the amount of $1,115,629.  The wire fraud charge carries a maximum sentence of 20 years in federal prison. 

CHICAGO — The owner of a cannabis company has been charged in federal court in Chicago with swindling investors out of more than $950,000.

GEOFFREY THOMPSON, 53, of Naples, Fla., and formerly of Frankfort, Ill., is charged with one count of wire fraud.  Arraignment is set for Dec. 9, 2021, at 11:30 a.m., before U.S. District Judge John F. Kness.

The charge 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 Matthew Getter.

Thompson owned and operated a Canadian-based cannabis company that did business in Colorado.  According to a criminal information filed Thursday in U.S. District Court in Chicago, Thompson in 2018 and 2019 solicited and obtained money from investors by falsely representing that their funds would be used for expanding the company’s business and holding an initial public offering of securities. 

In reality, the information alleges that Thompson knowingly misrepresented the company’s financial condition and that he knew the company was not in a position for an IPO at that time.  Thompson instead misappropriated investor funds for his and his family’s personal use and to make Ponzi-type payments to lull earlier investors, the information alleges.

As a result of the scheme, Thompson caused the victim investors to suffer at least $952,000 in losses, the charge alleges.

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

CHICAGO — A suburban Chicago woman has been arrested after she allegedly arranged for a child to engage in commercial sex acts with customers at hotels.

JAMARI HODGE, also known as “Hypnotic” and “Miracle,” 26, of Calumet City, Ill., is charged with one count of producing child pornography.  Hodge was arrested Wednesday.  A detention hearing is scheduled for Dec. 6, 2021, at 12:30 p.m., before U.S. District Judge Beth W. Jantz.

The charge and arrest 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 Field Office of the FBI.  Valuable assistance was provided by the Lansing, Ill., Police Department, Calumet City, Ill., Police Department, and Richton Park, Ill., Police Department.  The government is represented by Assistant U.S. Attorney Shy Jackson.

According to a criminal complaint filed in U.S. District Court in Chicago, Hodge took sexually explicit photographs of the victim and posted them in online advertisements offering commercial sex, the complaint states.  Hodge then rented hotel rooms in Illinois that were used for encounters with individuals who responded to the advertisements, the complaint states.  Hodge allegedly set the prices and had the customers pay her in cash or electronic transfer after the encounters.

Production of child pornography is punishable by a statutory minimum sentence of 15 years in federal prison and a maximum sentence of 30 years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines. 

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

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

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

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

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

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

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

Enforcement Actions and Prosecution Activity

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

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

The U.S. Attorney’s Office’s Gun Crimes Prosecution Team continues to emphasize the prosecution of illegal firearm possession in the most violent police districts in Chicago.  Working collaboratively with federal and local law enforcement, the team focuses on charging Chicago’s most dangerous criminals quickly after arrest, endeavoring to disrupt the cycle of violence in the neighborhoods most in need.

“Our Gun Crimes Prosecution Team works tirelessly to investigate and prosecute firearms cases from the Chicago neighborhoods suffering from the most violent crimes,” said U.S. Attorney Lausch.  “Our partnerships with CPD and other state and local law enforcement continue to be very strong.”

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

Racketeering and Gang-Related Prosecutions

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

• A federal jury this month convicted LABAR SPANN, a leader of the Four Corner Hustlers street gang, on a racketeering conspiracy charge for participating in a criminal organization that committed murders and other acts of violence on the West and Southwest Sides of Chicago.  The jury found that Spann participated in four murders in a cold, calculated, and premeditated manner as part of the conspiracy.  Spann faces a mandatory term of life in prison when he is sentenced next year.  After Spann’s conviction, all nine defendants charged in the case have been convicted of racketeering conspiracy.  The investigation was conducted by FBI, ATF, CPD, DEA, IDOC, ISP, Illinois Secretary of State Police Department, Cook County Sheriff’s Office, and Cook County State’s Attorney’s Office, with the support of the Organized Crime Drug Enforcement Task Force (OCDETF) and the Chicago High Intensity Drug Trafficking Area Task Force (HIDTA).
• A racketeering conspiracy indictment unsealed this month charged 13 alleged leaders, members, and associates of the Wicked Town faction of the Traveling Vice Lords street gang with engaging in numerous acts of violence in Chicago, including at least 19 murders and 19 attempted murders.  The probe was conducted by ATF, CPD, IRS-CI, DEA, FBI, Cook County Sheriff’s Office, and Cook County State’s Attorney’s Office, with the support of OCDETF and HIDTA.
• WILLIAM HAYSLETTE, of Chicago, was sentenced last month to 30 years in prison for engaging in racketeering offenses as a “soldier” in the Latin Kings street gang.  In addition to committing numerous assaults on behalf of the gang, the sentencing judge also found that Hayslette participated in the murder of Sergio Hernandez in the South Chicago neighborhood of Chicago.  Hayslette was indicted in 2018 along with more than 30 other alleged members of the Latin Kings.  Nearly all of the charged defendants have pleaded guilty or been convicted at trial, including GERONIA FORD, of Chicago, who was sentenced in September to 29 years in prison for participating in Hernandez’s murder and committing acts of witness intimidation.  FBI and CPD led the investigation, with assistance from the Cook County Sheriff’s Office and the Hammond, Ind., Police Department, and the support of OCDETF.
• Five alleged members of the O-Block street gang were charged last month with committing murder in aid of racketeering for allegedly killing Carlton Weekly, a Chicago rapper also known as “FBG Duck,” on Aug. 4, 2020, in downtown Chicago.  The case was investigated by FBI and CPD, with assistance from the Cook County State’s Attorney’s Office.

Firearm Trafficking and Firearm Theft Prosecutions

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

• Chicago resident ISMAEL SENE was sentenced last month to a year in federal prison for straw purchasing handguns in the Chicago suburbs.  In one of the gun transactions, Sene falsely certified on federal forms that he was the actual buyer.  In reality, Sene purchased the gun on behalf of an individual whom Sene had reason to believe was a convicted felon who was prohibited by federal law from purchasing or possessing a firearm.  ATF led the probe, with assistance from CPD.
• Four men were charged last month with firearm offenses for allegedly trafficking guns from St. Louis to Chicago.  The charges accuse ROBERT NARUP, of Washington, Mo., of buying firearms at gun shows throughout the United States and illegally selling them to JEROME BOYKIN, of St. Louis, Mo.  Boykin then allegedly brought the guns to Chicago and sold them to ROGELIO MANCERA, of Schaumburg, Ill., in exchange for marijuana.  Mancera allegedly re-sold the guns to RODOLFO ORTEGA, of Chicago, who in turn would sell them on the streets of Chicago.  ATF and CPD’s recently created Gun Investigations Team led the probe, with assistance from ATF officials in Missouri and the U.S. Attorney’s Office for the Eastern District of Missouri.
• A suburban Chicago man was sentenced last month to eight and a half years in federal prison for trafficking dozens of guns from Kentucky to Chicago.  Many of the guns trafficked by JOHN PHILLIPS, of Lyons, Ill., were later discovered by law enforcement at crime scenes in Chicago.  The investigation was led by ATF’s Chicago office, with assistance from ATF agents in Louisville, Ky., and the support of HIDTA.
• Six individuals were charged in September in the Southern District of Indiana with straw purchasing 90 firearms, more than 20 of which were later discovered at crime scenes in Chicago.  ATF led the investigation, with assistance from law enforcement in Chicago.
• The U.S. Attorney’s Office in August successfully moved to revoke the bond that had been set for JAMES MASSEY, of Chicago.  Massey is awaiting trial on a charge of inciting rioting involving incidents of property damage and looting in Chicago in the summer of 2020.  The judge found that Massey violated the terms of his bond when he allegedly attempted to purchase a firearm in Indiana.  Massey is now in federal custody.  Trial on the rioting charge is set for Feb. 22, 2022.  FBI and CPD investigated the looting case, while ATF investigated the firearm matter.
• PARIS STEELE, of Chicago, was sentenced in August to more than six years in federal prison for unlawfully dealing shotguns and other firearms in Chicago.  While Steele was on bond and awaiting trial, he appeared in videos on social media holding a firearm and threatening violence against others.  ATF and CPD conducted the investigation.
• A Chicago man was charged in August with making materially false statements in the acquisition of more than 20 firearms.  STOVALL BUCHANAN acquired the guns from suburban Chicago firearms dealers and allegedly lied on federal forms about his home address and the actual buyer of the guns.  ATF investigated, with assistance from CPD.
• Chicago resident JUSTIN GARCIA was charged in August with straw purchasing handguns in a suburban Chicago store on behalf of another individual.  ATF investigated, with assistance from CPD.
• Two days after the fatal shooting of Chicago Police Officer Ella French, a Hammond, Ind., man was charged with conspiring to straw purchase the semi-automatic handgun used in the shooting.  JAMEL DANZY purchased the gun at a firearms dealer in Hammond and allegedly falsely certified on the required forms that he was the actual buyer.  The charges allege that Danzy was a straw purchaser who bought the gun at the request of a convicted felon who was found in possession of the gun after the shootings of Officer French and her partner.  ATF and CPD led the probe.
• JOSUE CANALES, of Chicago, was charged in June with trafficking a loaded submachine gun and dealing cocaine in the city.  FBI and the CPD led the investigation.
• Three Chicago men were charged this summer with unlawfully dealing or possessing firearms in the city.  JOHNATHAN BURGOS allegedly illegally dealt firearms in Chicago, while ALEJANDRO DAVIS and DAMIAN REYES were charged with illegally possessing firearms as previously convicted felons.  FBI and the CPD conducted the investigation.
• RONEAL NIGHTENGALE, Glendale Heights, Ill., and ERIC ROWE, of Bellwood, Ill., were charged in June with conspiring to steal a dozen handguns from a suburban Chicago firearms dealer.  ATF and the Naperville Police Department led the probe, with assistance from the DuPage County Sheriff’s Office.

Carjacking and Other Violent Crime Prosecutions

“The U.S. Attorney’s Office works closely with federal, state, and local law enforcement officers to prosecute violent crimes, such as carjacking, that violate federal law,” said U.S. Attorney Lausch.

• A Chicago man was indicted last month on charges he carjacked a rideshare vehicle and fatally shot the driver.  EDMOND HARRIS was also charged with an additional carjacking and attempted carjacking in connection with other incidents.  JOSHUA WALKER, of Chicago, was charged with participating with Harris in one of the carjackings.  The case was investigated by ATF, CPD, and the Oak Park Police Department.
• A Chicago man who carjacked a vehicle at gunpoint in the city’s Uptown neighborhood was sentenced in September to more than 12 years in prison on carjacking and firearm offenses.  During the carjacking, MICHAEL C. PEARSON fired a pistol in the direction of a passenger of the vehicle.  FBI and CPD investigated, with assistance from the Cook County State’s Attorney’s Office.
• A jury in September convicted JAMAR JARVIS, of Chicago, on carjacking and weapons offenses for carjacking a vehicle at gunpoint in the city’s Edgewater neighborhood.  Jarvis is set to be sentenced next month.  The probe was led by the FBI and CPD, with assistance from the Cook County State’s Attorney’s Office.
• KIAR EVANS, of Chicago, was arrested and charged this summer with firing a handgun while attempting to carjack a vehicle on the city’s West Side, and moments later carjacking another vehicle at gunpoint.  FBI and CPD investigated.
• A Chicago man was charged in July with forcibly assaulting two ATF agents and an ATF Task Force officer.  EUGENE MCLAURIN allegedly shot the officers as they were driving in an unmarked law enforcement vehicle while participating in a federal investigation on the South Side of Chicago.  ATF and CPD led the investigation into the shooting, with assistance from the Illinois State Police.

Illegal Possession of Firearms Prosecutions

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

• A federal jury this month convicted BRIAN STAFFORD, a felon from the Chicago suburb of Bellwood, on firearm and drug charges for illegally possessing two loaded handguns and dealing heroin and crack cocaine.  A separate jury in 2019 convicted Stafford of illegally possessing three assault rifles.  All of the handguns and rifles illegally possessed by Stafford were linked to thefts from a cargo train that passed through Chicago in September 2016.  Stafford is awaiting sentencing.  The case was investigated by FBI, with assistance from ATF, Cook County Sheriff’s Office, Evergreen Park, Ill., Police Department, and Bolingbrook, Ill., Police Department.
• DONTA BAKER, of Chicago, was sentenced this month to six years in federal prison for illegally possessing a loaded handgun on a street in the city’s West Englewood neighborhood.  Baker had previously been convicted of multiple firearm-related felonies in state court and was prohibited by federal law from possessing a firearm.  ATF and CPD conducted the investigation.
• TERRY LEE, of Chicago, was sentenced in August to six years in federal prison for illegally possessing a stolen semi-automatic handgun in Douglas Park on the city’s West Side.  ATF and CPD conducted the probe.
• Convicted felon EDDIE JONES, of Chicago, was sentenced in August to eight years in prison for illegally possessing a loaded handgun in the city’s Humboldt Park neighborhood.  The investigation revealed that three victims were wounded by gunfire moments before Chicago Police officers encountered and arrested Jones.  In imposing the sentence, the judge found that Jones used the gun in the attempted murders of the three wounded victims.  ATF and CPD investigated.
• In August, NICHOLAS WILLIAMS, of Chicago, was sentenced to five and a half years in prison for illegally possessing a loaded handgun on a sidewalk on the city’s Near North Side.  The firearm was equipped with an extended magazine and loaded with 22 rounds of ammunition.  Williams had previously been convicted of a firearm-related felony in state court.  FBI and CPD investigated the case, with assistance from the Cook County State’s Attorney’s Office.
• A federal jury in August convicted DARIUS MORALES of illegally possessing a semi-automatic handgun in north suburban Evanston after Morales tried to flee from police in a car and on foot.  He faces up to ten years in prison when he is sentenced later this month.  DEA led the investigation, with assistance from ATF, the Evanston Police Department, and the Cook County State’s Attorney’s Office.
• A convicted felon who illegally possessed a loaded handgun during looting in downtown Chicago in the summer of 2020 was sentenced in July to 18 months in prison.  During the investigation, law enforcement uncovered multiple social media postings by JAVONTE T. WILLIAMS, of Chicago, in which he boasted about looting stores in the city.  ATF and CPD led the probe, with assistance from the Cook County State’s Attorney’s Office.

Significant Drug Trafficking Prosecutions

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

Public safety is also being threatened by unprecedented levels of opioid misuse and overdose.  Opioids are a class of highly addictive drugs that includes heroin, fentanyl, and prescription painkillers such as oxycodone and hydrocodone.  U.S. Attorney Lausch in November 2019 created an Opioid Task Force for the purpose of combatting the growing number of unlawful distributions of controlled substances fueling the nation’s opioid crisis. 

This includes prosecuting the leaders of traditional drug trafficking organizations, as well as rogue healthcare providers, pharmacists, pharmacist technicians, and others who contribute to the misuse of opioids.  “We are actively attacking the opioid crisis from all investigative and prosecutorial angles,” said U.S. Attorney Lausch.

• The leader of a drug trafficking organization was sentenced this month to 20 years in federal prison for supplying heroin to an illegal open-air market on the West Side of Chicago.  LEVAUGHN COLLINS, of Chicago, obtained bulk quantities of heroin and provided it to numerous associates, who, at Collins’s direction, processed and packaged the drugs for street-level sales.  DEA and CPD led the probe, with support from HIDTA and assistance from IRS-CI and the Cook County State’s Attorney’s Office.
• Three individuals were arrested this month as part of a federal investigation that disrupted a suspected Mexico-to-Chicago drug pipeline and resulted in government seizures of a private plane and 100 kilograms of cocaine.  The cocaine had allegedly been transported to the Chicago area on the plane from Toluca, Mexico, via Houston, Texas.  DEA, HSI and IRS-CI are leading the probe, with assistance from CPD, U.S. Customs and Border Protection, and the U.S. Attorney's Office for the Southern District of Indiana.
• A joint federal and local investigation in the far north suburbs of Chicago resulted in drug or firearm charges in August against four individuals.  The alleged trafficking of cocaine and methamphetamines occurred in Waukegan and Beach Park.  ATF and the Lake County Sheriff’s Office investigated the case.
• A woman vacationing in Chicago from Mexico was arrested here in July for allegedly selling two kilograms of cocaine to a buyer who, unbeknownst to the woman, was cooperating with law enforcement.  According to the charges against MARINA RIVERA, law enforcement after the sale searched a home in the city’s Little Village neighborhood and discovered approximately eight kilograms of cocaine inside a suitcase in the bedroom where Rivera was staying.  DEA investigated.
• A federal indictment unsealed in June charged five defendants with conspiring to launder illicit drug proceeds in Chicago for more than a decade.  The defendants allegedly laundered drug trafficking proceeds generated by the husbands of two of the defendants after the husbands were incarcerated on separate federal charges in 2008.  The probe was led by DEA, IRS-CI and USPIS.

Community Partnerships

The PSN program continues to invest resources in violence-prevention initiatives.  Members of the U.S. Attorney’s Office have participated in offender notification meetings and youth outreach forums.  Even during the current COVID-19 pandemic, these meetings and forums are still being held, including in a virtual environment, to maintain the outreach to former offenders.

Offender notification meetings provide an opportunity for individuals who have been convicted of a state or federal offense to make an informed choice not to engage in further criminal activity.  Researchers at Arizona State University found that the forums in Chicago have a positive influence on the offenders’ perception of police and help create an understanding that criminal activity results in a higher risk to return to prison.  Researchers at Yale University found that ex-offenders who attend an offender notification meeting in Chicago are 30% less likely to commit a new offense than those who did not attend a meeting.

The quarterly youth forums assist teenagers to identify a path beyond criminal activity.  The youth forums are conducted in partnership with CPD, the Cook County Juvenile Temporary Detention Center, and local social service agencies.

CHICAGO — A suburban Chicago tax preparer has been sentenced to two years in federal prison for orchestrating a variety of schemes that defrauded the IRS, U.S. Department of Education, and U.S. Social Security Administration.

LISA LLOYD TAYLOR, owner of Ebiz Accounting Services in Country Club Hills, Ill., willfully filed false personal or corporate tax returns from 2010 to 2013 that substantially underreported her own income or the income earned by her business.  From 2011 to 2015 Taylor also willfully prepared thousands of tax returns for her clients that claimed false deductions for purported charitable contributions and child-care expenses.  Taylor’s tax schemes resulted in a total federal and state tax loss of more than $1.02 million.

In addition to the tax offenses, Taylor underreported her income to fraudulently obtain more than $53,000 in financial aid benefits for her children.  Taylor’s children otherwise would not have qualified for the Department of Education grants.

Taylor also defrauded the Social Security Administration by applying for and collecting more than $134,000 in disability benefits to which she was not entitled.  From 2011 to 2017, Taylor concealed from the SSA the extent to which she was working and the amount of income she received from Ebiz.

Taylor, 57, of Country Club Hills, pleaded guilty to federal tax and theft charges.  U.S. District Judge Andrea R. Wood imposed the sentence Friday after a hearing in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  Substantial assistance was provided by the Social Security Administration's Office of the Inspector General, and the U.S. Department of Education’s Office of Inspector General.  The government is represented by Assistant U.S. Attorney Nicholas J. Eichenseer.

CHICAGO — A Joliet financial advisor has been indicted on federal fraud charges for allegedly swindling several clients out of nearly $800,000.

RONALD T. MOLO, 61, of Shorewood, Ill., is charged in an indictment unsealed today in U.S. District Court in Chicago with six counts of wire fraud.  Arraignment 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 Joliet Police Department, Illinois Securities Department, and the U.S. Securities and Exchange Commission.  The government is represented by Assistant U.S. Attorney Brian Havey.

According to the indictment, Molo worked as a licensed financial advisor in the Joliet branch of a national financial services firm.  From 2018 to earlier this year, Molo falsely represented to clients that their investments with him would be income-producing and tax-free, and that they would receive regular, periodic interest payments, the charges allege.  In reality, Molo did not intend to invest client funds and instead misappropriated their money to pay for personal expenses, including Cadillac XT5 and GMC Yukon sport-utility vehicles, mortgage payments for himself and family members, home remodeling and construction costs, lottery tickets, travel and shopping expenses, and cash payments to family members, the indictment states.

As a result of the scheme, Molo caused at least three clients to suffer losses totaling $778,000, the indictment states.

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

CHICAGO — A federal judge in Chicago has sentenced a man to a year in prison for manufacturing and selling a purported weight-loss product containing the unapproved additive 2,4-Dinitrophenol, known as DNP.

JONATHAN E. MCGRAW, 33, of Newberg, Oregon, obtained DNP from sources in China and used it as the primary ingredient in capsules that he manufactured in a makeshift lab in his garage and marketed online as a weight-loss product.  McGraw sold the capsules to customers throughout the United States via his website – ScorpionDNP.com – and through postings on other sites, including reddit.com.  In an effort to deceive regulatory and law enforcement agencies, McGraw falsely labeled his product as pesticide. 

DNP is an organic compound that has not been approved by the U.S. Food and Drug Administration or any other regulatory agency for human consumption in the U.S.  McGraw acknowledged in a plea agreement that he knew that the use of DNP by his customers created a risk of death or serious bodily injury.

McGraw pleaded guilty earlier this year to a federal charge of introducing a new drug into interstate commerce without approval.  U.S. District Judge John Z. Lee on Friday sentenced McGraw to a year and a day in federal prison.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Lynda M. Burdelik, Special Agent-in-Charge of the Chicago Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations.

“Defendant engaged in a course of conduct over a prolonged period of time that exposed hundreds of individuals to a significant risk of harm or death,” Assistant U.S. Attorney Rick D. Young argued in the government’s sentencing memorandum.  “Defendant was willing to subject hundreds of people to a risk of death in order to make money for himself.”

CHICAGO — A Chicago businessman who claimed to earn substantial profits from buying and selling heavy industrial equipment has been indicted on federal fraud charges for allegedly swindling customers and investors out of at least $350,000.

BRIAN BLALOCK, 37, of Chicago, is charged in an indictment returned Thursday in U.S. District Court in Chicago with nine counts of wire fraud.  Arraignment has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.  Valuable assistance was provided by the Illinois Securities Department.  The government is represented by Assistant U.S. Attorneys Jacqueline Stern, Brian Havey, and Matthew Getter.

According to the indictment, Blalock operated three Chicago-based businesses – PWC Holdings LLC, Brian Blalock LLC, and Parkwood Companies LLC – through which he purported to buy and sell trucks, trailers, road construction machines, oil field equipment, and generators.  Blalock solicited and obtained money from individual victims by falsely representing that he could either directly sell equipment to them or use their funds to purchase and sell equipment to others and then share in the substantial profits, the charges allege.

In reality, Blalock did not intend to deliver any equipment to the victim buyers, nor did he intend to use their investment funds to purchase and sell equipment, the indictment states.  Blalock instead used a substantial portion of the victims’ funds for his own personal benefit, including his rent payments, utility bills, meals at restaurants, and retail purchases, the charges allege. 

As a result of the scheme, Blalock from 2018 to 2021 caused the victims to suffer at least $350,000 in losses, the indictment states.

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

ROCKFORD — A Loves Park woman was charged with fraudulently obtaining more than $1 million from her employer, according to a criminal information filed today by the U.S. Attorney’s Office in Rockford. 

The information charges TAMMY E. MOORE, 54, with one count of wire fraud.  Moore will be arraigned in U.S. District Court in Rockford on a date to be determined.

The charge 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 is represented by Assistant U.S. Attorney Scott R. Paccagnini.

According to the information, Moore was an office manager for a company in Loves Park that made custom components for a variety of industries.  Between 2012 and 2020, Moore fraudulently obtained more than $1 million from the company.  Specifically, 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.       

Wire fraud carries a maximum sentence of up to 20 years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.  

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

CHICAGO — A federal jury has convicted a suburban Chicago man on firearm and drug charges for illegally possessing two loaded handguns and dealing heroin and crack cocaine.

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

After a week-long trial in U.S. District Court in Chicago, the jury on Friday found Stafford guilty of one count of possessing heroin and crack cocaine with the intent to distribute, one count of illegal possession of firearms by a previously convicted felon, and one count of possessing firearms in furtherance of drug-trafficking activities.

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

The convictions are punishable by a mandatory minimum sentence of ten years in federal prison, and a maximum of life.  U.S. District Judge Robert W. Gettleman did not immediately set a sentencing date.

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 Field Office of the FBI.  Substantial assistance was provided by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; Cook County Sheriff’s Office; Evergreen Park, Ill., Police Department; and Bolingbrook, Ill., Police Department.  The government is represented by Assistant U.S. Attorneys Saurish Appleby-Bhattacharjee and Alejandro Ortega.

CHICAGO — The former mayor of Crestwood, Ill., pleaded guilty today to a federal corruption charge and admitted improperly soliciting and receiving benefits from an individual with a financial interest in a red-light camera company that provided services to the southwest suburb.

LOUIS PRESTA, 71, of Crestwood, pleaded guilty 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.  The bribery count is punishable by up to five years in federal prison, while the tax offense carries a maximum sentence of three years.   U.S. District Judge Thomas M. Durkin set sentencing for Feb. 23, 2022.

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 Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorneys Christopher J. Stetler and James P. Durkin.

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 Presta would ensure 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, telephone 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 employees of the U.S. Department of Veterans Affairs pocketed cash from vendors in exchange for steering them orders for medical equipment, according to indictments returned in federal court in Chicago. 

ANDREW LEE and KIMBERLY A. DYSON worked as Prosthetic Clerks in the Veterans Health Administration Prosthetics Service in Chicago.  As part of their duties, Lee and Dyson selected vendors from which to order medical equipment for VA patients, and then paid the vendors using government purchase cards.  In exchange for their efforts with certain vendors, Lee and Dyson allegedly received cash payments from individuals at the vendor companies.

Lee, 66, of Chicago, is charged with one count of wire fraud.  Dyson, 49, of Chicago, is charged with one count of conspiracy to commit bribery and four counts of bribery. 

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Gavin McClaren, Acting Special Agent-in-Charge of the Department of Veterans Affairs Office of Inspector General’s Central Field Office.  The government is represented by Assistant U.S. Attorney Heidi Manschreck.

“Schemes to fraudulently corrupt the procurement process cheat the government and deserving bidders,” said U.S. Attorney Lausch.  “We will work aggressively with our law enforcement partners to safeguard our nation’s taxpayers.”

“The corruption of VA employees cannot be tolerated,” said Acting SAC McClaren.  “These alleged fraudulent activities erode public trust and undermine the value of fair market competition.  The VA OIG appreciates the US Attorney’s Office for its commitment in helping hold these defendants accountable.”

Lee and Dyson were charged in separate indictments returned Tuesday in U.S. District Court in Chicago.

United States v. Lee, et al, 21 CR 703

The charges allege that Lee schemed with DARREN A. SMITH, who operated a medical distribution company in Bolingbrook, Ill., to place orders for medical equipment from Smith’s company in exchange for cash kickbacks to Lee.  Lee allegedly placed orders with Smith’s company for unnecessary and more costly monthly rentals of certain medical equipment – instead of purchasing the equipment as VA physicians had ordered – so that the VA would pay more money to Smith’s company.  The scheme fraudulently caused the VA to overpay Smith’s company by more than $1.38 million from 2016 to 2020.  In exchange, Lee pocketed kickbacks from Smith of at least $220,000, the indictment states.

In addition to the wire fraud count against Lee, the indictment charges Smith, 57, of Hazel Crest, Ill., with seven counts of wire fraud.

United States v. Dyson, et al, 21 CR 705

The charges accuse Dyson of conspiring with IRVIN R. LUCAS, IV, who owned a medical supply company in Romeoville, Ill., to place orders for medical equipment from Lucas’s company in exchange for cash payments to Dyson.  The indictment describes several instances in which Dyson placed orders with Lucas’s company and then sent text messages to Lucas asking for certain amounts of cash.  Lucas allegedly paid Dyson by transferring money into her checking account or providing her with a debit card to withdraw the funds.  From 2018 to 2020, Dyson accepted at least $39,850 from Lucas for steering the orders to his company, the indictment states.

In addition to the conspiracy and bribery counts against Dyson, the indictment charges Lucas, 40, of North Hollywood, Calif., with one count of bribery conspiracy.

Arraignments in federal court in Chicago have not yet been scheduled.

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 — The owners of several Chicago-area convenience stores have been charged in federal court with scheming to defraud a low-income food program for women and children.

A 16-count indictment returned in U.S. District Court in Chicago alleges that from 2010 to 2019 the store owners and several workers schemed to fraudulently redeem checks from the Women, Infants, and Children (“WIC”) program, a federally funded initiative designed to provide a nutritious diet to moderate and low-income infants, children up to five years of age, and pregnant, breastfeeding, and post-partum women.  The charges allege that the defendants knowingly allowed customers to provide their WIC checks as payment for ineligible items at the stores, often at inflated prices.  Most of the nine stores identified in the indictment redeemed millions of dollars in WIC checks.

Charged with fraud are HASSAN ABDELLATIF, also known as “Eric,” 33, of Chicago, owner of El Milagro Mini Market and Harding Grocery in Chicago; HAMDAN HAMDAN, also known as “Tony,” 32, of Chicago, owner of La Villita Food Market in Chicago; EHAB KHRAIWISH, 27, of Tinley Park, Ill., owner of Mercado La Estrella in Elgin, Ill.; WALEED KHRAWISH, also known as “Wally,” 34, of Melrose Park, Ill., who worked at a convenience store in Melrose Park; ALAA HAMDAN, 35, of Chicago, who worked at Supermercado El Grande in Addison, Ill.; ERSELY ARITA-MEJIA, 39, of Arlington Heights, Ill., who worked at Star Mini Market in Mt. Prospect, Ill.; FORTINO HERNANDEZ, 38, of Addison, Ill., who worked at Supermercado El Grande in Addison; JEHAD KHRAWISH, 24, of Chicago, who worked at a convenience store in Melrose Park, Ill.; and MARISOL ZAVALA, 29, of McHenry, Ill., who worked at a convenience store in Elgin, Ill.

The indictment also charges Abdellatif with two tax offenses for allegedly willfully failing to file two years of corporate tax returns for Harding Grocery.

Most of the defendants made their initial appearances Wednesday in federal court in Chicago.

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; Anthony Mohatt, Special Agent-in-Charge of the Midwest Regional Office of the U.S. Department of Agriculture, Office of Inspector General; and Justin Campbell, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorney Sheri L. Wong.

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 federal jury has convicted a leader of the Four Corner Hustlers street gang of participating in a criminal organization that committed murders and other acts of violence while brutally protecting a drug-dealing operation on the West and Southwest Sides of Chicago.

LABAR SPANN, 43, of Chicago, was found guilty Monday on all four counts against him, including racketeering conspiracy, two counts of murder in aid of racketeering, and extortion.  The jury found that Spann committed four murders in a cold, calculated, and premeditated manner as part of the racketeering conspiracy, including the murders of Maximillion McDaniel on July 25, 2000, George King on April 8, 2003, Willie Woods on April 17, 2003, and Rudy Rangel on June 4, 2003.

The conviction is punishable by a mandatory minimum sentence of life in prison.  U.S. District Judge Thomas M. Durkin set sentencing for March 9, 2022.

The verdict was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Kristen De Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and David Brown, Superintendent of the Chicago Police Department.  Substantial assistance was provided by the U.S. Drug Enforcement Administration, Illinois Secretary of State Police Department, Illinois Department of Corrections, Illinois State Police, Cook County Sheriff’s Office, and Cook County State’s Attorney’s Office.  The government is represented by Assistant U.S. Attorneys William Dunne, Timothy J. Storino, Kavitha J. Babu, and Megan DeMarco.

Authorities uncovered the racketeering activities of the Four Corner Hustlers through a lengthy investigation supported by the Organized Crime Drug Enforcement Task Force (OCDETF).  OCDETF identifies, disrupts, and dismantles criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies.   The Chicago FBI’s Safe Street Task Force, the High Intensity Drug Trafficking Area Task Force (HIDTA), and ATF’s Chicago Crime Gun Strike Force also supported the investigation.

The Four Corner Hustlers operated primarily in the Chicago neighborhoods of West Garfield Park and Humboldt Park on the West Side, and in the former LeClaire Courts public housing development on the Southwest Side.  According to evidence presented at the nearly eight-week trial in federal court in Chicago, the gang dealt drugs and robbed rival dealers, while using violence and intimidation to prevent victims and witnesses from cooperating with law enforcement.  The gang engaged in numerous acts of violence, including multiple murders and armed robberies. 

Spann was indicted in 2017 along with eight other members of the Four Corner Hustlers and two additional defendants.  The other defendants pleaded guilty, and several have been sentenced to federal prison terms.